LOGO

  JULY 31, 2023

 

  

2023 Annual Report

 

 

iShares Trust

 

·  

iShares Global Equity Factor ETF | GLOF | NYSE Arca

·  

iShares International Equity Factor ETF | INTF | NYSE Arca

·  

iShares International Small-Cap Equity Factor ETF | ISCF | NYSE Arca

·  

iShares MSCI EAFE Min Vol Factor ETF | EFAV | Cboe BZX

 

 

 


The Markets in Review

Dear Shareholder,

Despite an uncertain economic landscape during the 12-month reporting period ended July 31, 2023, the resilience of the U.S. economy in the face of ever tighter financial conditions provided an encouraging backdrop for investors. While inflation was near multi-decade highs at the beginning of the period, it declined precipitously as commodity prices dropped. Labor shortages also moderated, although wages continued to grow and unemployment rates reached the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy.

Equity returns were solid, as the durability of consumer sentiment eased investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. Most major classes of equities advanced, including large- and small-capitalization U.S. stocks and equities from developed and emerging markets.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market also faced inflationary headwinds, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation has been more persistent than expected, raised interest rates seven times during the 12-month period ended July 31, 2023. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at its June 2023 meeting, the first time it paused its tightening in the current cycle, before again raising rates in July 2023.

Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for a pause, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.

While we favor an overweight position to developed market equities in the long term, we prefer an underweight stance in the near-term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on emerging market stocks in the near-term as growth trends for emerging markets appear brighter. We also believe that stocks with an A.I. tilt should benefit from an investment cycle that is set to support revenues and margins. We are neutral on credit overall amid tightening credit and financial conditions; however, there are selective opportunities in the near term. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, U.S. mortgage-backed securities, and hard-currency emerging market bonds.

Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of July 31, 2023

 

    

 

 6-Month

 

 

 

12-Month

 

 

U.S. large cap equities

(S&P 500® Index)

 

  13.52%   13.02%

 

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

 

  4.51   7.91

 

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

 

  6.65   16.79

 

Emerging market equities
(MSCI Emerging Markets Index)

 

  3.26   8.35

 

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

 

  2.34   3.96

 

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

 

  (2.08)   (7.56)

 

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

 

  (1.02)   (3.37)

 

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

 

  0.20   0.93

 

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

 

  2.92   4.42

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

 

 

 

2  

T H I S  P A G EI SN O T  P A R TO F  Y O U R  F U N D  R E P O R T


Table of Contents

 

     

Page

 

 

The Markets in Review

     2  

Annual Report:

  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     13  

Disclosure of Expenses

     13  

Schedules of Investments

     14  

Financial Statements:

  

Statements of Assets and Liabilities

     45  

Statements of Operations

     46  

Statements of Changes in Net Assets

     47  

Financial Highlights

     49  

Notes to Financial Statements

     53  

Report of Independent Registered Public Accounting Firm

     63  

Important Tax Information

     64  

Board Review and Approval of Investment Advisory Contract

     65  

Supplemental Information

     69  

Trustee and Officer Information

     70  

General Information

     73  

Glossary of Terms Used in this Report

     74  

 

 

  3


Market Overview   

 

iShares Trust

Global Market Overview

Global equity markets advanced during the 12 months ended July 31, 2023 (“reporting period”), supported by continued economic growth and moderating inflation. The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 12.91% in U.S. dollar terms for the reporting period. Despite concerns about the impact of higher interest rates and rising prices, the global economy continued to grow, albeit at a slower pace than during the initial post-pandemic recovery. Inflation began to subside in most regions of the world, and lower energy prices reduced pressure on consumers, leading consumer and business sentiment to improve. While the Russian invasion of Ukraine continued to disrupt trade in Europe and elsewhere, market adaptation lessened the economic impact of the ongoing war. The prices of oil, natural gas, and wheat all declined during the reporting period, easing pressure on the world’s economies.

The U.S. Federal Reserve (“Fed”) tightened monetary policy rapidly, raising short-term interest rates seven times during the reporting period. The pace of tightening decelerated as the Fed twice lowered the increment of increase before pausing entirely in June 2023, the first time it declined to take action since the tightening cycle began. However, the Fed then raised interest rates again at its July 2023 meeting and stated that it would continue to monitor economic data. The Fed also continued to decrease the size of its balance sheet by reducing the store of U.S. Treasuries it had accumulated to stabilize markets in the early phases of the coronavirus pandemic.

Despite the tightening financial conditions, the U.S. economy demonstrated continued strength, and U.S. equities advanced. The economy returned to growth in the third quarter of 2022 and showed robust, if slightly slower, growth thereafter. Consumers powered the economy and increased their spending in both nominal and inflation-adjusted terms. Spending was helped by a strong labor market, as unemployment remained very low in historic terms, and the total number of employed persons reached an all-time high. Tightness in the labor market drove higher wages, although wage growth slowed as the reporting period continued.

European stocks outpaced their counterparts in most other regions of the globe, advancing strongly for the reporting period despite modest economic growth. European stocks benefited from a solid recovery following the early phases of the war in Ukraine. While the conflict disrupted critical natural gas supplies, new sources were secured and prices declined, while a warm winter helped moderate consumption. The European Central Bank (“ECB”) responded to the highest inflation since the introduction of the euro by raising interest rates eight times and beginning to reduce the size of its debt holdings.

Stocks in the Asia-Pacific region gained, albeit at a slower pace than other regions of the world. Japan returned to growth in the fourth quarter of 2022 and first quarter of 2023, as strong business investment and exports helped boost the economy and support Japanese equities. However, Chinese stocks were negatively impacted by slowing economic growth. While investors were initially optimistic following China’s lifting of several pandemic-related lockdowns in December 2022, subsequent performance disappointed, and tensions with the U.S. increased. Emerging market stocks advanced, as the improving global economic environment reassured investors. The declining value of the U.S. dollar relative to many other currencies and the slowing pace of the Fed’s interest rate increases also supported emerging market stocks.

 

 

4  

2 0 2 3  I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Fund Summary as of July 31, 2023     iShares® Global Equity Factor ETF

 

Investment Objective

The iShares Global Equity Factor ETF (the “Fund”) (formerly the iShares MSCI Global Multifactor ETF) seeks to track the investment results of an index composed of large- and mid-capitalization developed and emerging market stocks that have favorable exposure to target style factors subject to constraints, as represented by the STOXX Global Equity Factor Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

         Average Annual Total Returns            Cumulative Total Returns         
       1 Year     5 Years    

Since

Inception

   

    1 Year     5 Years    

Since

Inception

   

 
 

Fund NAV

    13.34     6.06     6.76       13.34     34.18     71.65  
 

Fund Market

    13.07       5.86       6.72         13.07       32.95       71.13    
 

Index(a)

    13.41       6.19       6.94         13.41       35.04       74.04    
 

MSCI ACWI Diversified Multiple-Factor Index

    9.59       5.47       6.50         9.59       30.48       68.17    
 

STOXX Global Equity Factor Index(b)

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

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

 

LOGO

The inception date of the Fund was April 28, 2015. The first day of secondary market trading was April 30, 2015.

 

  (a) 

Index performance through February 28, 2023 reflects the performance of the MSCI ACWI Diversified Multiple-Factor Index. Index performance beginning on March 1, 2023 reflects the performance of the STOXX Global Equity Factor Index, which, effective as of March 1, 2023, replaced the MSCI ACWI Diversified Multiple-Factor Index as the underlying index of the fund.

 

  (b) 

The inception date of the STOXX Global Equity Factor Index was December 2, 2022. The cumulative total return for this index for the period March 1, 2023 through July 31, 2023 was 13.12%.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 


 

Actual

          Hypothetical 5% Return             
                                                                  
 

Beginning

Account Value

(02/01/23)

      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
 
 

$  1,000.00

       $  1,091.80          $  1.04               $  1,000.00          $  1,023.80          $  1.00          0.20  

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

F U N D  S U M M A R Y

  5


Fund Summary as of July 31, 2023 (continued)    iShares® Global Equity Factor ETF

 

Portfolio Management Commentary

Global stocks with favorable exposure to five target style factors—value, quality, momentum, low volatility, and small size—advanced strongly for the reporting period, as the world economy showed resilience despite the challenges of inflation and higher interest rates. Stocks from the U.S., which represented approximately 59% of the Index on average for the reporting period, contributed the most to the Index’s return.

Among U.S. stocks, the information technology sector was the largest source of strength. While rising interest rates negatively impacted companies in the sector, the size and pace of interest rate increases lessened in 2023, and investor optimism surrounding artificial intelligence (“AI”) applications boosted information technology stocks. The U.S. software and services industry contributed significantly, driven by strength among systems software companies. An investment by a large systems software company in a leading AI company enabled the incorporation of AI into a search engine and drove optimism about future applications. Sales of cloud software grew robustly, including for a new product that utilizes AI tools on a cloud-based platform.

The technology hardware, storage, and peripherals industry also gained amid growing revenues from services and an increasing installed base of users. While sales of smartphones declined globally, high-end devices continued to sell well, enabling higher dividends and additional stock buybacks to return cash to shareholders. The semiconductors and semiconductor equipment industry also advanced, as generative AI is computationally intensive, and the strong interest in the area benefited manufacturers of specialty chips that can be used for these applications.

The U.S. consumer discretionary sector also contributed to the Index’s performance, helped by the resilience of U.S. consumers. Consumer spending continued to rise during the reporting period and consumer sentiment rebounded as inflation decelerated. The broadline retail industry drove gains in the sector amid rising sales and cost savings from more efficient fulfillment operations. Growing sales of online cloud services also benefited the industry and a significant investment in AI drove optimism among investors about new offerings utilizing AI technology.

Japanese stocks also advanced, particularly the industrials sector, which benefited from government reforms that aimed to improve the corporate environment for investors. The low value of the Japanese yen relative to the U.S. dollar helped exporters in the capital goods industry and drove strong earnings guidance. The French industrials sector posted gains, driven by strong North American and Asian sales of building products.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 

 
Sector   Percent of  
Total Investments(a)
 

 

 

Information Technology

    24.5%  

Financials

    16.3    

Consumer Discretionary

    12.5    

Health Care

    11.7    

Industrials

    8.1    

Communication Services

    7.2    

Consumer Staples

    7.1    

Materials

    4.3    

Energy

    4.1    

Utilities

    2.9    

Real Estate

    1.3    

 

  (a)

Excludes money market funds.

GEOGRAPHIC ALLOCATION

 

 

 

 
Country/Geographic Region          Percent of  
Total Investments(a)
 

 

 

United States

       58.7%  

Japan

       6.8    

China

       3.3    

France

       3.2    

Canada

       3.0    

United Kingdom

       2.8    

Australia

       2.1    

Taiwan

       2.0    

South Korea

       1.8    

Switzerland

             1.6    

 

 

6  

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Fund Summary as of July 31, 2023     iShares® International Equity Factor ETF

 

Investment Objective

The iShares International Equity Factor ETF (the “Fund”) seeks to track the investment results of an index composed of global developed market large- and mid-capitalization stocks, excluding the U.S., that have favorable exposure to target style factors subject to constraints, as represented by the STOXX International Equity Factor Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns           Cumulative Total Returns  
                     
     1 Year     5 Years     Since
Inception
           1 Year     5 Years     Since
Inception
 

Fund NAV

    15.37     3.02     4.30       15.37     16.05     41.56

Fund Market

    15.34       2.98       4.29         15.34       15.79       41.51  

Index

    15.83       3.08       4.39               15.83       16.38       42.54  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

 

LOGO

The inception date of the Fund was April 28, 2015. The first day of secondary market trading was April 30, 2015.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual

          Hypothetical 5% Return           
                                                          

Beginning

Account Value

(02/01/23)

      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 

$  1,000.00

       $  1,059.80          $  0.82               $  1,000.00          $  1,024.00          $  0.80          0.16

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D  S U M M A R Y

  7


Fund Summary as of July 31, 2023 (continued)    iShares® International Equity Factor ETF

 

Portfolio Management Commentary

Global developed market stocks with favorable exposure to five target style factors—value, quality, momentum, low volatility, and small size—advanced significantly for the reporting period, as the world economy showed resilience despite the challenges of inflation and higher interest rates. Stocks in Japan were the largest contributors to the Index’s performance, helped by Japan’s improving economy. After contracting in the third quarter and a flat fourth quarter in 2022, the Japanese economy rebounded with moderate growth in the first half of 2023. In October 2022, Japan lifted strict pandemic-related border controls, driving a significant increase in tourism and stimulating consumer spending. A series of corporate reforms benefited Japanese stocks, boosting investor confidence and reorienting focus on corporate profits. Japan’s industrials sector advanced notably, as higher net fees and trading profits boosted earnings in the capital goods industry. The low value of the Japanese yen relative to the U.S. dollar benefited exporters in the industry and drove strong earnings guidance. Elevated energy prices early in the reporting period also bolstered capital goods companies that were involved in liquified natural gas projects.

European stocks, particularly from France and Germany, also gained for the reporting period. While economic growth in the Eurozone was tepid, inflation came down significantly and unemployment declined to a historic low. In France, the consumer discretionary sector was a source of strength, driven primarily by the textiles and apparel industry. Sales of luxury goods supported revenues in the industry, and European sales were particularly strong, helped by an increase in tourism from North America. In Germany, the consumer discretionary sector was powered by strength in the automobiles industry. Improving supply chains allowed companies in the industry to increase deliveries and substantially grow revenue and operating income. The financials sector advanced in both France and Germany, as the ECB’s interest rate increases bolstered profitability among French banks and the German insurance industry.

U.K. stocks also contributed to the Index’s performance, despite slow economic growth during the reporting period. The energy sector was the leading source of strength, as companies in the oil, gas, and consumable fuels industry increased dividend payments to shareholders. Financials stocks posted an advance in Switzerland, where a deal brokered by the government for a failed bank to be taken over by a rival stabilized the capital markets industry.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 

 
Sector   Percent of  
Total Investments(a)
 

 

 

Financials

    20.4%  

Industrials

    14.1    

Consumer Discretionary

    13.0    

Health Care

    10.2    

Consumer Staples

    8.6    

Information Technology

    8.1    

Materials

    7.8    

Communication Services

    5.5    

Energy

    5.4    

Utilities

    3.7    

Real Estate

    3.2    

GEOGRAPHIC ALLOCATION

 

 

 

 
Country/Geographic Region   Percent of  
Total Investments(a)
 

 

 

Japan

    23.4%  

United Kingdom

    12.8    

France

    10.5    

Switzerland

    8.4    

Australia

    7.2    

Canada

    6.6    

Germany

    6.2    

Netherlands

    5.4    

Denmark

    3.3    

Sweden

    2.5    

 

  (a) 

Excludes money market funds.

 

 

8  

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Fund Summary as of July 31, 2023     iShares® International Small-Cap Equity Factor ETF

 

Investment Objective

The iShares International Small-Cap Equity ETF (the “Fund”) (formerly the iShares MSCI International Small-Cap Multifactor ETF) seeks to track the investment results of an index composed of global developed market small-capitalization stocks, excluding the U.S., that have favorable exposure to target style factors subject to constraints, as represented by the STOXX International Small-Cap Equity Factor Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns           Cumulative Total Returns  
                     
     1 Year      5 Years      Since
Inception
           1 Year      5 Years      Since
Inception
 

Fund NAV

    6.73      3.24      5.86       6.73      17.27      60.08

Fund Market

    6.92        3.09        5.86         6.92        16.45        60.11  

Index(a)

    7.55        3.46        6.13         7.55        18.57        63.45  

MSCI World ex USA Small Cap Diversified Multiple-Factor Index

    6.87        3.33        6.05         6.87        17.82        62.42  

STOXX International Small-Cap Equity Factor Index(b)

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

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

 

LOGO

The inception date of the Fund was April 28, 2015. The first day of secondary market trading was April 30, 2015.

 

  (a) 

Index performance through February 28, 2023 reflects the performance of the MSCI World ex USA Small Cap Diversified Multiple-Factor Index. Index performance beginning on March 1, 2023 reflects the performance of the STOXX International Small-Cap Equity Factor Index, which, effective as of March 1, 2023, replaced the MSCI World ex USA Small Cap Diversified Multiple-Factor Index as the underlying index of the fund.

 
  (b) 

The inception date of the STOXX International Small-Cap Equity Factor Index was December 2, 2022. The cumulative total return for this index for the period March 1, 2023 through July 31, 2023 was 10.05% .

 

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual

          Hypothetical 5% Return           
                                                          

Beginning

Account Value

(02/01/23)

      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 

$  1,000.00

       $  1,020.20          $  1.15               $  1,000.00          $  1,023.70          $  1.15          0.23

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D  S U M M A R Y

  9


Fund Summary as of July 31, 2023 (continued)    iShares® International Small-Cap Equity Factor ETF

 

Portfolio Management Commentary

International small-capitalization stocks with favorable exposure to five target style factors—value, quality, momentum, low volatility and small size—posted an advance for the reporting period, as the world economy showed resilience despite the challenges of inflation and higher interest rates. Stocks in Japan were the largest contributors to the Index’s performance, helped by Japan’s improving economy. After contracting in the third quarter and a flat fourth quarter in 2022, the Japanese economy rebounded with moderate growth in the first half of 2023. In October 2022, Japan lifted strict pandemic-related border controls, driving a significant increase in tourism and stimulating consumer spending. A series of corporate reforms benefited Japanese stocks, boosting investor confidence and reorienting focus on corporate profits.

Among Japanese stocks, the industrials sector contributed the most to the Index’s return. The machinery industry was a leading source of strength, as the relatively low value of the Japanese yen relative to the U.S. dollar helped exporters. The electronic equipment, instruments, and components industry in the information technology sector also benefited from the Japanese yen’s weakness and posted strong sales of watches in Europe despite higher prices. Consumer discretionary stocks advanced amid strength in the automobile components industry, as the easing of a global semiconductor shortage drove a rebound in Japanese cars sales.

Swiss stocks gained in an environment of robust exports and near-record low unemployment. The industrials sector contributed the most to the Index’s return, driven by strength in the machinery industry. Strong global demand for semiconductors drove sales of high-vacuum valves and other equipment used in semiconductor manufacturing. Expansion of vacuum processes into areas such as sustainable energy and biomedical research supported sales and profitability in the industry. The information technology sector also benefited from robust demand from chip manufacturers, which bolstered sales of related products in the electronic equipment, instruments, and components industry.

Stocks in the U.K. also contributed to the Index’s performance, as the hotels, restaurants, and leisure industry in the consumer discretionary sector was supported by a surge in domestic travel and vacationing. Stocks in the financials sector also gained, amid increasing revenues and higher profit margins.

The French information technology sector advanced, bolstered by greater consulting revenues. On the downside, Swedish stocks in the healthcare sector detracted slightly from the Index’s return, as the Central Bank of Sweden raised interest rates substantially.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 

 
Sector   Percent of  
Total Investments(a)
 

 

 

Industrials

    18.1%  

Consumer Discretionary

    14.2    

Financials

    13.7    

Information Technology

    12.6    

Materials

    10.5    

Real Estate

    9.0    

Health Care

    5.2    

Energy

    4.7    

Consumer Staples

    4.5    

Communication Services

    4.3    

Utilities

    3.2    

GEOGRAPHIC ALLOCATION

 

 

 

 
Country/Geographic Region   Percent of  
Total Investments(a)
 

 

 

Japan

    23.0%  

United Kingdom

    14.2    

Canada

    11.2    

Australia

    7.5    

Switzerland

    6.7    

Germany

    6.0    

France

    5.5    

Sweden

    3.2    

Netherlands

    3.1    

Italy

    2.8    

 

  (a)

Excludes money market funds.

 

 

10  

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Fund Summary as of July 31, 2023    iShares® MSCI EAFE Min Vol Factor ETF

 

Investment Objective

The iShares MSCI EAFE MinVol Factor ETF (the “Fund”) seeks to track the investment results of an index composed of developed market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed equity markets, excluding the U.S. and Canada, as represented by the MSCI EAFE Minimum Volatility (USD) Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    7.62     1.61     4.65       7.62     8.33     57.61

Fund Market

    7.85       1.61       4.61         7.85       8.32       56.95  

Index

    7.93       1.59       4.67               7.93       8.23       57.90  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning

Account Value

(02/01/23)

 

 

 

      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
      

Annualized
Expense
Ratio
 
 
 
  $   1,000.00        $ 1,050.30        $ 1.02             $ 1,000.00        $ 1,023.80        $ 1.00          0.20

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D  S U M M A R Y

  11


Fund Summary as of July 31, 2023 (continued)    iShares® MSCI EAFE Min Vol Factor ETF

 

Portfolio Management Commentary

Lower volatility stocks in developed markets outside the U.S. and Canada advanced for the reporting period, as the world economy showed resilience despite the challenges of inflation and higher interest rates. Stocks in Japan were the largest contributors to the Index’s performance, helped by Japan’s improving economy. After contracting in the third quarter and a flat fourth quarter in 2022, the Japanese economy rebounded with moderate growth in the first half of 2023. In October 2022, Japan lifted strict pandemic-related border controls, driving a significant increase in tourism and stimulating consumer spending. A series of corporate reforms benefited Japanese stocks, which helped boost investor confidence and reoriented focus on corporate profits. Japan’s financials sector advanced notably, as the Bank of Japan eased its policy toward 10-year bond yields, allowing banks to keep portions of their capital in higher-yielding investments. The industrials sector also gained, as higher net fees and trading profits amid volatile energy markets boosted earnings in the trading companies and distributors industry.

French stocks also advanced, driven primarily by the consumer staples sector. Recovering demand for premium spirits in China benefited the beverages industry, while the food products industry gained amid broad-based sales growth in all regions globally. The chemicals industry in the materials sector also advanced, bolstered by price increases and cost savings.

Swiss stocks gained amid strength in the industrials sector and currency appreciation of the Swiss franc relative to the U.S. dollar. Improved supply chains helped companies in the machinery industry that manufacture equipment such as elevators, leading to improved earnings. Industrials stocks in the U.K. also contributed to the Index’s performance, primarily in the aerospace and defense industry, as geopolitical tensions propelled significantly higher orders for defense equipment. On the downside, stocks in Hong Kong detracted slightly from the Index’s performance amid disappointing economic data from China.

In terms of relative performance, the Index significantly underperformed the broader market, as measured by the MSCI EAFE Index. The Index seeks exposure to stocks that experience lower volatility, and as the global economy stabilized and equity markets expanded, investor appetite for risk increased, disadvantaging lower-volatility equities. Overweight positions in the communication services and consumer staples sectors were the primary sources of negative relative performance. Stock selection in the financials, industrials, and utilities sectors also detracted from the Index’s relative return.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector  

Percent of  

Total Investments(a)

 

 

 

Health Care

    18.5%  

Industrials

    16.4    

Financials

    15.5    

Consumer Staples

    15.0    

Communication Services

    8.9    

Utilities

    8.2    

Consumer Discretionary

    7.3    

Information Technology

    4.0    

Materials

    3.3    

Energy

    1.5    

Real Estate

    1.4    
GEOGRAPHIC ALLOCATION

 

 

 
Country/Geographic Region  

Percent of  

Total Investments(a)

 

 

 

Japan

    27.2%  

Switzerland

    14.2    

United Kingdom

    9.8    

Hong Kong

    7.3    

France

    7.3    

Singapore

    4.6    

Netherlands

    4.5    

Australia

    4.5    

Spain

    3.2    

Denmark

    3.1    

 

  (a)

Excludes money market funds.

 

 

12  

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About Fund Performance

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

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

Disclosure of Expenses

Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.

The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

 

 

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

  13


Schedule of Investments

July 31, 2023

  

iShares® Global Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks  
Australia — 2.0%            

AGL Energy Ltd.

    23,722     $ 194,414  

ALS Ltd.

    8,566       67,751  

Aurizon Holdings Ltd.

    66,915       171,491  

Bendigo & Adelaide Bank Ltd.

    14,970       94,270  

BHP Group Ltd.

    12,301       382,830  

BlueScope Steel Ltd.

    1,669       24,613  

Fortescue Metals Group Ltd.

    25,469       374,413  

Goodman Group

    3,244       44,855  

JB Hi-Fi Ltd.

    4,167       128,159  

Macquarie Group Ltd.

    1,120       132,082  

Mineral Resources Ltd.

    1,841       88,951  

Mirvac Group

    10,710       16,882  

Rio Tinto Ltd.

    4,470       353,956  

South32 Ltd.

    17,823       46,932  

Stockland

    63,966       181,793  

Whitehaven Coal Ltd.

    32,232       150,604  

Woolworths Group Ltd.

    1,363       35,396  

Yancoal Australia Ltd., NVS

    18,699       64,210  
   

 

 

 
       2,553,602  
Austria — 0.4%            

OMV AG

    5,280       237,886  

Raiffeisen Bank International AG(a)

    5,307       85,811  

Telekom Austria AG

    2,243       17,066  

Verbund AG

    453       37,534  

Wienerberger AG

    4,127       135,534  
   

 

 

 
      513,831  
Belgium — 0.3%            

Ageas SA/NV

    5,100       215,900  

D’ieteren Group

    612       106,883  
   

 

 

 
      322,783  
Brazil — 0.6%            

B3 SA - Brasil, Bolsa, Balcao

    98,124       309,183  

Cia. Siderurgica Nacional SA

    16,728       48,959  

CPFL Energia SA

    6,988       52,874  

CSN Mineracao SA

    22,232       20,921  

JBS SA

    29,716       118,016  

Petroleo Brasileiro SA

    4,031       29,674  

Suzano SA

    7,888       80,185  

Telefonica Brasil SA

    1,360       12,111  

Tim SA

    29,240       88,671  
   

 

 

 
      760,594  
Canada — 3.0%            

ARC Resources Ltd.

    12,376       186,956  

Bank of Montreal

    2,000       185,857  

Canadian Tire Corp. Ltd., Class A, NVS

    1,797       246,809  

Element Fleet Management Corp.

    5,780       93,232  

Empire Co. Ltd., Class A, NVS

    5,987       162,586  

George Weston Ltd.

    194       22,340  

Gildan Activewear Inc.

    1,771       55,078  

Hydro One Ltd.(b)

    2,786       78,595  

Loblaw Companies Ltd.

    4,828       428,374  

Magna International Inc.

    2,777       178,605  

Manulife Financial Corp.

    12,611       252,096  

Nutrien Ltd.

    3,471       239,191  

Power Corp. of Canada

    884       25,046  

Royal Bank of Canada

    4,624       458,420  

Thomson Reuters Corp.

    3,222       434,927  

Toronto-Dominion Bank (The)

    5,270       347,537  
Security   Shares     Value  
Canada (continued)            

West Fraser Timber Co. Ltd.

    3,604     $ 303,647  
   

 

 

 
      3,699,296  
Chile — 0.0%            

Cencosud SA

    25,908       55,680  
   

 

 

 
China — 3.3%            

Agricultural Bank of China Ltd., Class A

    210,800       106,809  

Bank of China Ltd., Class A

    231,200       126,550  

Bank of Communications Co. Ltd., Class H

    68,000       41,081  

Bosideng International Holdings Ltd.

    136,000       62,348  

China Coal Energy Co. Ltd., Class H

    136,000       98,566  

China Construction Bank Corp., Class H

    476,000       277,441  

China Galaxy Securities Co. Ltd., Class H

    170,000       99,461  

China Hongqiao Group Ltd.

    102,000       98,418  

China International Capital Corp. Ltd., Class H(b)

    54,400       120,395  

China Medical System Holdings Ltd.

    68,000       114,509  

China Petroleum & Chemical Corp., Class A

    129,200       112,250  

China Petroleum & Chemical Corp., Class H

    544,000       304,660  

China Resources Pharmaceutical Group Ltd.(b)

    68,000       52,926  

China Shenhua Energy Co. Ltd., Class A

    27,200       108,188  

China United Network Communications Ltd., Class A

    93,600       67,722  

China Yongda Automobiles Services Holdings Ltd.

    68,000       31,158  

Chongqing Changan Automobile Co. Ltd., Class A

    20,400       45,881  

CNPC Capital Co. Ltd., NVS

    6,800       7,041  

COSCO SHIPPING Holdings Co. Ltd., Class A

    75,000       106,344  

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

    1,768       69,076  

Greentown China Holdings Ltd.

    34,000       39,085  

Hopson Development Holdings Ltd.(a)

    36,240       30,412  

Industrial & Commercial Bank of China Ltd., Class A

    258,400       172,545  

Kingboard Holdings Ltd.

    21,000       58,436  

Kingboard Laminates Holdings Ltd.

    68,000       69,769  

Kunlun Energy Co. Ltd.

    136,000       111,288  

Meituan, Class B(a)(b)

    6,800       129,813  

Nongfu Spring Co. Ltd., Class H(b)

    40,800       237,882  

Orient Overseas International Ltd.

    1,000       16,710  

PetroChina Co. Ltd., Class A

    81,600       90,620  

PetroChina Co. Ltd., Class H

    272,000       199,440  

Pinduoduo Inc., ADR(a)

    2,584       232,095  

Postal Savings Bank of China Co. Ltd., Class H(b)

    204,000       125,765  

Qifu Technology Inc.

    4,624       92,295  

Shaanxi Coal Industry Co. Ltd., Class A

    20,400       46,419  

Sinotruk Hong Kong Ltd.

    34,000       71,439  

TAL Education Group, ADR(a)(c)

    5,017       41,039  

Tingyi Cayman Islands Holding Corp.

    72,000       111,189  

Yadea Group Holdings Ltd.(b)

    44,000       100,129  

Yankuang Energy Group Co. Ltd., Class H

    48,000       72,269  
   

 

 

 
       4,099,463  
Czech Republic — 0.2%            

CEZ AS

    5,780       255,785  
   

 

 

 
Denmark — 1.0%            

Carlsberg AS, Class B

    952       142,783  

Coloplast A/S, Class B

    100       12,431  

Danske Bank A/S

    2,992       71,045  

Novo Nordisk A/S, Class B

    4,556       734,665  

Pandora A/S

    2,856       285,691  
   

 

 

 
      1,246,615  
Finland — 0.4%            

Kesko OYJ, Class B

    3,672       73,472  

Kone OYJ, Class B

    1,564       80,222  

 

 

14  

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Schedule of Investments (continued)

July 31, 2023

  

iShares® Global Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Finland (continued)            

Nordea Bank Abp, New

    11,520     $ 130,425  

Orion OYJ, Class B

    3,808       146,346  

Stora Enso OYJ, Class R

    1,292       15,839  
   

 

 

 
       446,304  
France — 3.2%            

BNP Paribas SA

    5,848       385,663  

Bollore SE

    17,748       112,216  

Bouygues SA

    2,584       92,563  

Carrefour SA

    9,996       199,831  

Christian Dior SE, NVS

    136       119,774  

Credit Agricole SA

    37,536       466,024  

Eiffage SA

    2,108       219,311  

Engie SA

    6,664       109,325  

Kering SA

    68       39,043  

L’Oreal SA

    476       221,392  

LVMH Moet Hennessy Louis Vuitton SE

    408       378,937  

Orange SA

    9,724       109,919  

Publicis Groupe SA

    6,795       547,849  

Sanofi

    1,700       181,364  

Schneider Electric SE

    476       84,905  

Societe Generale SA

    4,148       112,812  

TotalEnergies SE

    4,931       299,590  

Unibail-Rodamco-Westfield, New(a)

    3,740       211,919  

Vivendi SE

    11,108       99,176  
   

 

 

 
       3,991,613  
Germany — 1.1%            

adidas AG

    340       68,641  

Bayerische Motoren Werke AG

    1,700       207,315  

BioNTech SE, ADR(a)

    994       108,217  

Commerzbank AG

    11,220       134,208  

Deutsche Post AG, Registered

    2,040       104,903  

Deutsche Telekom AG, Registered

    3,792       82,670  

E.ON SE

    8,636       109,248  

Knorr-Bremse AG

    1,292       90,877  

Mercedes-Benz Group AG

    4,284       342,133  

Telefonica Deutschland Holding AG

    33,728       90,876  

Volkswagen AG

    612       97,807  
   

 

 

 
      1,436,895  
Greece — 0.1%            

FF Group(a)(d)

    165        

Hellenic Telecommunications Organization SA

    6,600       104,161  
   

 

 

 
      104,161  
Hong Kong — 0.4%            

AIA Group Ltd.

    13,600       136,065  

China Renewable Energy Investment Ltd.(d)

    659        

Giant Biogene Holding Co. Ltd.(a)(b)

    13,600       61,530  

HK Electric Investments & HK Electric Investments Ltd., Class SS

    136,000       84,705  

Hong Kong Exchanges & Clearing Ltd.

    1,000       42,162  

Link REIT

    6,800       38,224  

SITC International Holdings Co. Ltd.

    20,000       43,823  

Swire Properties Ltd.

    40,800       102,380  
   

 

 

 
      508,889  
Hungary — 0.1%            

MOL Hungarian Oil & Gas PLC

    11,030       87,078  
   

 

 

 
India — 1.5%            

ABB India Ltd.

    680       37,689  

Bharat Electronics Ltd.

    43,792       69,679  
Security   Shares     Value  
India (continued)            

Coal India Ltd.

    45,492     $ 126,970  

Gujarat Fluorochemicals Ltd.

    1,632       54,048  

Hindustan Aeronautics Ltd.

    2,584       124,670  

Indian Oil Corp. Ltd.

    102,340       116,727  

Infosys Ltd.

    7,208       119,300  

Life Insurance Corp. of India

    9,217       71,771  

Mphasis Ltd.

    2,448       68,406  

NHPC Ltd., NVS

    133,416       83,643  

Oil & Natural Gas Corp. Ltd.

    22,168       47,808  

Power Finance Corp. Ltd.

    39,168       124,662  

Power Grid Corp. of India Ltd.

    75,276       243,724  

REC Ltd.

    51,816       127,950  

Tata Consultancy Services Ltd.

    2,516       104,814  

Tube Investments of India Ltd.

    4,284       160,626  

Wipro Ltd.

    17,680       87,200  

WNS Holdings Ltd.(a)

    884       61,093  
   

 

 

 
       1,830,780  
Indonesia — 0.2%            

Adaro Energy Indonesia Tbk PT

    510,000       81,585  

Bukit Asam Tbk PT

    136,000       25,008  

Hanjaya Mandala Sampoerna Tbk PT

    476,000       28,724  

Sumber Alfaria Trijaya Tbk PT

    516,800       92,537  

United Tractors Tbk PT

    47,600       86,960  
   

 

 

 
      314,814  
Ireland — 0.0%            

Smurfit Kappa Group PLC

    1,632       64,580  
   

 

 

 
Israel — 0.4%            

Bank Leumi Le-Israel BM

    23,953       191,208  

Bezeq The Israeli Telecommunication Corp. Ltd.

    93,432       123,615  

Harel Insurance Investments & Financial Services Ltd.

    4,556       35,933  

Israel Corp Ltd.

    136       42,406  

Phoenix Holdings Ltd. (The)

    6,480       66,489  
   

 

 

 
      459,651  
Italy — 0.6%            

Enel SpA

    21,499       148,240  

Poste Italiane SpA(b)

    11,220       128,172  

Snam SpA

    44,404       233,421  

Telecom Italia SpA/Milano(a)

    127,092       36,637  

Terna - Rete Elettrica Nazionale

    15,216       128,560  

UniCredit SpA

    2,788       70,593  
   

 

 

 
      745,623  
Japan — 6.8%            

Advantest Corp.

    1,800       248,958  

Amada Co. Ltd.

    6,800       66,922  

Asics Corp.

    6,800       214,507  

Bandai Namco Holdings Inc.

    4,400       99,548  

BayCurrent Consulting Inc.

    6,800       219,604  

Capcom Co. Ltd.

    6,800       305,775  

Chubu Electric Power Co. Inc.

    6,800       85,189  

Dai Nippon Printing Co. Ltd.

    6,800       193,297  

Dai-ichi Life Holdings Inc.

    6,800       138,936  

Daiichi Sankyo Co. Ltd.

    6,800       209,437  

Ebara Corp.

    3,100       146,500  

Fuji Electric Co. Ltd.

    1,500       67,814  

Fujitsu Ltd.

    800       103,592  

Horiba Ltd.

    1,500       88,490  

Hoya Corp.

    2,600       302,794  

Internet Initiative Japan Inc.

    6,800       126,612  

ITOCHU Corp.

    12,100       489,388  

 

 

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

  15


Schedule of Investments (continued)

July 31, 2023

  

iShares® Global Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)            

Japan Post Insurance Co. Ltd.

    6,800     $ 109,889  

Japan Real Estate Investment Corp.

    41       164,906  

Mitsubishi Corp.

    6,800       347,932  

Mitsubishi UFJ Financial Group Inc.

    27,200       219,021  

Nintendo Co. Ltd.

    5,700       257,838  

Nippon Building Fund Inc.

    68       285,043  

Nippon Express Holdings Inc.

    3,600       211,072  

Nippon Telegraph & Telephone Corp.

    340,000       389,884  

Nomura Real Estate Holdings Inc.

    6,800       168,660  

Nomura Research Institute Ltd.

    6,800       193,221  

Olympus Corp.

    13,600       221,910  

ORIX Corp.

    13,600       261,617  

Osaka Gas Co. Ltd.

    6,800       106,997  

Persol Holdings Co. Ltd.

    6,800       134,508  

Recruit Holdings Co. Ltd.

    3,000       103,907  

Sanwa Holdings Corp.

    6,800       92,481  

SBI Holdings Inc.

    6,800       143,598  

SCSK Corp.

    6,800       113,050  

Sekisui House Reit Inc.

    136       80,726  

Sony Group Corp.

    1,700       159,233  

T&D Holdings Inc.

    13,600       221,120  

TIS Inc.

    6,800       172,474  

Tokyo Electric Power Co. Holdings Inc.(a)

    20,400       81,009  

Tokyo Electron Ltd.

    2,400       360,209  

Tokyo Tatemono Co. Ltd.

    6,800       90,872  

Toppan Inc.

    6,800       160,062  

Toyota Motor Corp.

    13,600       228,667  

Zensho Holdings Co. Ltd.

    6,000       319,718  
   

 

 

 
       8,506,987  
Malaysia — 0.1%            

Petronas Gas Bhd

    6,800       25,758  

Sime Darby Bhd

    102,000       49,362  
   

 

 

 
      75,120  
Mexico — 0.4%            

Banco del Bajio SA(b)

    47,600       145,117  

Coca-Cola Femsa SAB de CV

    13,600       114,810  

Grupo Aeroportuario del Pacifico SAB de CV, Class B

    6,800       129,563  

Grupo Comercial Chedraui SA de CV

    13,680       80,111  
   

 

 

 
      469,601  
Netherlands — 1.4%            

Adyen NV(a)(b)

    272       504,836  

ASM International NV

    408       193,833  

ASML Holding NV

    340       243,531  

Koninklijke Ahold Delhaize NV

    14,348       494,556  

NN Group NV

    5,168       198,115  

Randstad NV

    1,496       87,644  
   

 

 

 
      1,722,515  
New Zealand — 0.2%            

Fisher & Paykel Healthcare Corp. Ltd.

    3,672       56,061  

Fletcher Building Ltd.

    25,228       87,470  

Meridian Energy Ltd.

    17,544       61,577  
   

 

 

 
      205,108  
Norway — 0.4%            

DNB Bank ASA

    6,460       133,124  

Kongsberg Gruppen ASA

    2,108       91,469  

Orkla ASA

    24,140       190,484  

Telenor ASA

    8,568       91,720  

Var Energi ASA

    17,816       54,520  
   

 

 

 
      561,317  
Security   Shares     Value  
Philippines — 0.1%            

DMCI Holdings Inc.

    136,000     $ 23,789  

Manila Electric Co.

    7,480       48,516  

PLDT Inc.

    2,040       48,680  

Semirara Mining & Power Corp.

    68,000       35,731  
   

 

 

 
      156,716  
Poland — 0.2%            

LPP SA

    42       144,477  

Orange Polska SA

    27,200       50,069  

PGE Polska Grupa Energetyczna SA(a)

    33,116       70,437  
   

 

 

 
       264,983  
Qatar — 0.3%            

Industries Qatar QSC

    35,224       128,920  

Mesaieed Petrochemical Holding Co.

    214,676       115,039  

Ooredoo QPSC

    28,444       89,260  
   

 

 

 
      333,219  
Russia — 0.0%            

Alrosa PJSC(a)(d)

    59,760       6  

PhosAgro PJSC(d)

    1,025        

PhosAgro PJSC, GDR(a)(d)(e)

    1        

PhosAgro PJSC, New(d)

    20        

United Co. RUSAL International PJSC(a)(d)

    70,560       8  
   

 

 

 
      14  
Saudi Arabia — 0.6%            

Dr Sulaiman Al Habib Medical Services Group Co.

    426       32,818  

Elm Co.

    952       172,563  

Nahdi Medical Co.

    1,768       81,926  

SABIC Agri-Nutrients Co.

    5,372       206,469  

Sahara International Petrochemical Co.

    9,724       98,123  

Saudi Electricity Co.

    18,060       108,040  
   

 

 

 
      699,939  
Singapore — 0.5%            

Sea Ltd., ADR(a)

    2,040       135,701  

Sembcorp Industries Ltd.

    34,000       139,379  

STMicroelectronics NV , New

    2,856       152,825  

Yangzijiang Shipbuilding Holdings Ltd.

    136,000       157,551  
   

 

 

 
      585,456  
South Africa — 0.3%            

African Rainbow Minerals Ltd.

    2,856       32,236  

Anglo American Platinum Ltd.

    1,972       98,559  

Exxaro Resources Ltd.

    8,976       81,319  

MTN Group Ltd.

    12,852       100,646  

Thungela Resources Ltd.

    11,016       82,554  
   

 

 

 
      395,314  
South Korea — 1.8%            

DB HiTek Co. Ltd.

    1,631       75,572  

DB Insurance Co. Ltd.

    1,836       108,563  

Doosan Bobcat Inc.

    2,312       106,055  

F&F Co. Ltd./New

    340       27,604  

Hana Financial Group Inc.

    8,432       259,836  

Hanwha Aerospace Co. Ltd.

    1,224       117,430  

Hyundai Marine & Fire Insurance Co. Ltd.

    2,040       45,802  

KB Financial Group Inc.

    5,440       217,880  

Kia Corp.

    1,768       114,742  

Kumho Petrochemical Co. Ltd.

    816       76,842  

LG Innotek Co. Ltd.

    544       112,801  

LG Uplus Corp.

    6,120       48,035  

Meritz Financial Group Inc.

    3,273       126,372  

POSCO Holdings Inc.

    136       68,528  

 

 

16  

2 0 2 3  I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (continued)

July 31, 2023

  

iShares® Global Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
South Korea (continued)            

Samsung Electronics Co. Ltd.

    4,148     $ 227,114  

Samsung Engineering Co. Ltd.(a)

    3,740       108,486  

Samsung Fire & Marine Insurance Co. Ltd.

    408       77,988  

SD Biosensor Inc.

    1,750       17,782  

Seegene Inc.

    4,368       79,851  

Shinhan Financial Group Co. Ltd.

    3,944       108,552  

Woori Financial Group Inc.

    17,680       161,580  
   

 

 

 
      2,287,415  
Spain — 0.5%            

Acciona SA

    927       138,956  

Corp. ACCIONA Energias Renovables SA

    2,108       66,351  

Endesa SA

    6,527       139,892  

Iberdrola SA

    3,407       42,520  

Repsol SA

    15,300       233,592  

Telefonica SA

    8,030       34,214  
   

 

 

 
      655,525  
Sweden — 0.9%            

Axfood AB

    4,012       102,221  

Billerud AB

    8,092       69,006  

Epiroc AB, Class B

    5,712       97,042  

EQT AB

    9,452       225,781  

H & M Hennes & Mauritz AB, Class B

    5,984       100,649  

Husqvarna AB, Class B

    3,944       38,685  

Kindred Group PLC

    8,228       98,970  

Kinnevik AB, Class B(a)

    9,996       136,432  

Skandinaviska Enskilda Banken AB, Class A

    2,820       34,185  

SSAB AB, Class A

    8,765       55,618  

Swedbank AB, Class A

    4,964       91,048  

Telefonaktiebolaget LM Ericsson, Class B

    18,632       93,728  

Volvo AB, Class A

    536       12,154  
   

 

 

 
       1,155,519  
Switzerland — 1.6%            

Alcon Inc.

    1,088       92,580  

Cie. Financiere Richemont SA, Class A, Registered

    476       76,652  

Coca-Cola HBC AG, Class DI

    7,788       229,146  

Kuehne + Nagel International AG, Registered

    272       85,108  

Nestle SA, Registered

    2,380       291,595  

Novartis AG, Registered

    3,400       355,970  

Roche Holding AG, NVS

    1,224       379,503  

Swiss Life Holding AG, Registered

    136       86,476  

UBS Group AG, Registered

    17,272       383,246  
   

 

 

 
      1,980,276  
Taiwan — 2.0%            

AUO Corp.

    136,000       89,717  

CTBC Financial Holding Co. Ltd.

    68,000       56,887  

Fubon Financial Holding Co. Ltd.

    68,000       141,931  

Gigabyte Technology Co. Ltd.

    18,000       180,432  

Global Unichip Corp.

    3,000       156,914  

Lite-On Technology Corp.

    33,000       158,674  

Novatek Microelectronics Corp.

    10,000       135,235  

President Chain Store Corp.

    12,000       106,609  

Realtek Semiconductor Corp.

    20,000       274,682  

Ruentex Industries Ltd.

    68,000       134,322  

Shanghai Commercial & Savings Bank Ltd. (The)

    5,278       7,398  

SinoPac Financial Holdings Co. Ltd.

    204,000       121,144  

Taiwan Semiconductor Manufacturing Co. Ltd.

    33,000       595,901  

Uni-President Enterprises Corp.

    56,000       134,348  

United Microelectronics Corp.

    68,000       102,183  
Security   Shares     Value  
Taiwan (continued)            

Yuanta Financial Holding Co. Ltd.

    136,000     $ 105,757  
   

 

 

 
       2,502,134  
Thailand — 0.1%            

PTT Exploration & Production PCL, NVDR

    20,400       95,263  
   

 

 

 
Turkey — 0.5%            

Anadolu Efes Biracilik Ve Malt Sanayii AS

    8,976       29,999  

BIM Birlesik Magazalar AS

    12,175       97,768  

Ford Otomotiv Sanayi AS

    2,856       100,660  

KOC Holding AS

    40,256       201,791  

Tofas Turk Otomobil Fabrikasi AS

    5,440       60,979  

Turkcell Iletisim Hizmetleri AS

    42,228       81,011  

Yapi ve Kredi Bankasi AS

    99,144       52,401  
   

 

 

 
      624,609  
United Arab Emirates — 0.2%            

Abu Dhabi Islamic Bank PJSC

    42,432       129,853  

Abu Dhabi National Oil Co. for Distribution PJSC

    24,888       26,427  

Dubai Electricity & Water Authority PJSC

    101,601       74,135  

Fertiglobe PLC

    42,978       41,878  
   

 

 

 
      272,293  
United Kingdom — 2.8%            

3i Group PLC

    5,450       138,273  

Anglo American PLC

    4,748       146,009  

AstraZeneca PLC

    2,008       288,502  

BAE Systems PLC

    11,281       134,910  

Barratt Developments PLC

    8,386       49,088  

BP PLC

    67,620       419,545  

British American Tobacco PLC

    1,512       50,846  

Burberry Group PLC

    11,968       341,629  

GSK PLC

    7,343       130,714  

HSBC Holdings PLC

    21,445       178,131  

Imperial Brands PLC

    1,797       42,455  

JD Sports Fashion PLC

    89,653       181,604  

Kingfisher PLC

    14,211       44,812  

Legal & General Group PLC

    38,301       114,783  

Next PLC

    750       67,831  

Pearson PLC

    8,007       88,570  

Persimmon PLC

    2,069       30,760  

Rio Tinto PLC

    4,148       274,173  

Shell PLC

    12,047       370,576  

United Utilities Group PLC

    4,382       56,193  

Vodafone Group PLC

    315,490       300,113  

WPP PLC

    5,188       56,646  
   

 

 

 
      3,506,163  
United States — 58.5%            

Abbott Laboratories

    3,280       365,162  

AbbVie Inc.

    6,338       948,038  

Accenture PLC, Class A

    1,583       500,782  

Adobe Inc.(a)

    560       305,855  

Advanced Micro Devices Inc.(a)

    524       59,946  

Aflac Inc.

    2,300       166,382  

Agilent Technologies Inc.

    2,477       301,624  

Airbnb Inc., Class A(a)(c)

    1,428       217,327  

Allstate Corp. (The)

    1,295       145,921  

Ally Financial Inc.

    10,096       308,332  

Alphabet Inc., Class C, NVS(a)

    22,102       2,941,997  

Amazon.com Inc.(a)

    15,028       2,008,943  

Amcor PLC

    4,415       45,298  

American Express Co.

    981       165,671  

American Financial Group Inc./OH

    1,298       157,850  

 

 

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

  17


Schedule of Investments (continued)

July 31, 2023

  

iShares® Global Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United States (continued)            

Ameriprise Financial Inc.

    1,428     $ 497,587  

Amgen Inc.

    1,177       275,595  

Apple Inc.

    29,240        5,744,198  

Applied Materials Inc.

    3,317       502,824  

Arista Networks Inc.(a)

    914       141,752  

AT&T Inc.

    12,988       188,586  

Atlassian Corp., NVS(a)

    3,253       591,851  

AutoZone Inc.(a)

    204       506,271  

Avery Dennison Corp.

    438       80,596  

Bank of America Corp.

    6,936       221,952  

Berkshire Hathaway Inc., Class B(a)

    272       95,733  

Best Buy Co. Inc.

    6,484       538,496  

Biogen Inc.(a)

    549       148,334  

BlackRock Inc.(f)

    162       119,694  

Blackstone Inc., NVS

    2,638       276,436  

Booking Holdings Inc.(a)

    91       270,343  

Booz Allen Hamilton Holding Corp., Class A

    463       56,060  

Bristol-Myers Squibb Co.

    6,666       414,559  

Broadcom Inc.

    748       672,190  

Cadence Design Systems Inc.(a)

    3,333       779,955  

Capital One Financial Corp.

    2,883       337,369  

Caterpillar Inc.

    167       44,283  

CBRE Group Inc., Class A(a)

    500       41,655  

CDW Corp./DE

    1,204       225,232  

Celanese Corp., Class A

    513       64,325  

CF Industries Holdings Inc.

    964       79,125  

Chevron Corp.

    493       80,684  

Cintas Corp.

    851       427,236  

Cisco Systems Inc.

    6,085       316,663  

Citigroup Inc.

    1,658       79,020  

Coca-Cola Co. (The)

    3,793       234,900  

Concentrix Corp.

    340       28,302  

ConocoPhillips

    2,269       267,107  

Constellation Energy Corp.

    1,180       114,047  

Costco Wholesale Corp.

    826       463,113  

Crowdstrike Holdings Inc., Class A(a)

    1,873       302,789  

CSX Corp.

    423       14,094  

CVS Health Corp.

    2,811       209,954  

Danaher Corp.

    155       39,534  

Datadog Inc., Class A(a)(c)

    340       39,685  

DaVita Inc.(a)

    1,906       194,393  

Deere & Co.

    400       171,840  

Dell Technologies Inc., Class C

    3,876       205,118  

Devon Energy Corp.

    5,395       291,330  

Discover Financial Services

    2,154       227,355  

DocuSign Inc., Class A(a)

    5,452       293,427  

Dollar General Corp.

    355       59,945  

Domino’s Pizza Inc.

    385       152,745  

Dow Inc.

    2,862       161,617  

DTE Energy Co.

    724       82,753  

Dynatrace Inc.(a)

    3,196       174,789  

eBay Inc.

    5,209       231,853  

Electronic Arts Inc.

    340       46,359  

Elevance Health Inc.

    1,156       545,204  

Eli Lilly & Co.

    1,870       850,009  

Emerson Electric Co.

    2,244       204,989  

Enphase Energy Inc.(a)

    382       57,999  

Equitable Holdings Inc.

    1,325       38,014  

Estee Lauder Companies Inc. (The), Class A

    2,060       370,800  

Etsy Inc.(a)

    3,172       322,434  
Security   Shares     Value  
United States (continued)            

Everest Group Ltd.

    243     $ 87,604  

Exxon Mobil Corp.

    2,162       231,853  

Ferguson PLC

    2,767       447,203  

Fidelity National Financial Inc.

    6,467       253,312  

Ford Motor Co.

    6,509       85,984  

Fortinet Inc.(a)

    9,949       773,236  

Fox Corp., Class A, NVS

    6,937       232,043  

Gartner Inc.(a)

    563       199,071  

GE Healthcare Inc., NVS(a)

    2,274       177,372  

General Dynamics Corp.

    166       37,114  

General Motors Co.

    3,122       119,791  

Gilead Sciences Inc.

    1,031       78,500  

GoDaddy Inc., Class A(a)

    218       16,806  

Goldman Sachs Group Inc. (The)

    316       112,455  

Hartford Financial Services Group Inc. (The)

    268       19,264  

Hershey Co. (The)

    1,176       272,021  

Hewlett Packard Enterprise Co.

    23,000       399,740  

Hologic Inc.(a)

    4,760       378,039  

Home Depot Inc. (The)

    2,437       813,568  

Honeywell International Inc.

    523       101,530  

Howmet Aerospace Inc.

    279       14,268  

HP Inc.

    13,055       428,596  

HubSpot Inc.(a)

    400       232,220  

Humana Inc.

    735       335,770  

IDEXX Laboratories Inc.(a)

    366       203,031  

Illinois Tool Works Inc.

    158       41,605  

International Business Machines Corp.

    951       137,115  

Interpublic Group of Companies Inc. (The)

    5,379       184,123  

Intuit Inc.

    1,173       600,224  

Johnson & Johnson

    5,892       987,087  

JPMorgan Chase & Co.

    5,851       924,224  

Keysight Technologies Inc.(a)

    370       59,600  

KLA Corp.

    732       376,211  

Kroger Co. (The)

    9,587       466,312  

Lam Research Corp.

    564       405,228  

Lennox International Inc.

    926       340,249  

Liberty Global PLC, Class A(a)

    888       16,490  

Liberty Global PLC, Class C, NVS(a)

    10,113       199,833  

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

    478       30,726  

Lockheed Martin Corp.

    655       292,372  

Lowe’s Companies Inc.

    2,585       605,588  

LPL Financial Holdings Inc.

    658       150,919  

Lululemon Athletica Inc.(a)

    204       77,220  

LyondellBasell Industries NV, Class A

    3,198       316,154  

M&T Bank Corp.

    921       128,811  

Marathon Oil Corp.

    6,664       175,063  

Masco Corp.

    3,404       206,555  

Mastercard Inc., Class A

    1,519       598,911  

Match Group Inc.(a)

    3,979       185,063  

McDonald’s Corp.

    2,819       826,531  

McKesson Corp.

    1,088       437,811  

Medtronic PLC

    174       15,270  

MercadoLibre Inc.(a)

    109       134,947  

Merck & Co. Inc.

    6,588       702,610  

Meta Platforms Inc, Class A(a)

    2,676       852,574  

MetLife Inc.

    4,080       256,918  

Mettler-Toledo International Inc.(a)

    272       342,032  

Microsoft Corp.

    14,824        4,979,678  

Moderna Inc.(a)

    2,489       292,856  

Molina Healthcare Inc.(a)

    1,357       413,193  

 

 

18  

2 0 2 3  I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (continued)

July 31, 2023

  

iShares® Global Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United States (continued)            

Mondelez International Inc., Class A

    1,158     $ 85,843  

Moody’s Corp.

    88       31,042  

Morgan Stanley

    3,384       309,839  

Mosaic Co. (The)

    791       32,241  

Motorola Solutions Inc.

    1,932       553,769  

MSCI Inc., Class A

    786       430,791  

NetApp Inc.

    1,820       141,978  

News Corp., Class B

    4,726       95,040  

Nike Inc., Class B

    2,169       239,436  

Northern Trust Corp.

    127       10,175  

Northrop Grumman Corp.

    340       151,300  

NRG Energy Inc.

    6,102       231,815  

Nucor Corp.

    1,496       257,447  

Nvidia Corp.

    4,210        1,967,291  

NVR Inc.(a)

    25       157,661  

Omnicom Group Inc.

    190       16,078  

Oracle Corp.

    4,900       574,427  

O’Reilly Automotive Inc.(a)

    278       257,370  

Otis Worldwide Corp.

    4,422       402,225  

PACCAR Inc.

    185       15,934  

Palo Alto Networks Inc.(a)(c)

    1,283       320,699  

Parker-Hannifin Corp.

    101       41,411  

Pentair PLC

    1,085       75,408  

PepsiCo Inc.

    2,074       388,792  

Pfizer Inc.

    12,650       456,159  

Philip Morris International Inc.

    3,062       305,343  

Principal Financial Group Inc.

    1,727       137,935  

Procter & Gamble Co. (The)

    7,236       1,130,987  

Prologis Inc.

    534       66,617  

Prudential Financial Inc.

    1,533       147,919  

PulteGroup Inc.

    3,126       263,803  

Qorvo Inc.(a)

    2,554       280,991  

Qualcomm Inc.

    4,124       545,069  

Raymond James Financial Inc.

    3,589       395,041  

Regions Financial Corp.

    3,630       73,943  

Rockwell Automation Inc.

    408       137,206  

S&P Global Inc.

    1,272       501,817  

Seagate Technology Holdings PLC

    2,385       151,448  

ServiceNow Inc.(a)

    524       305,492  

Sherwin-Williams Co. (The)

    476       131,614  

Simon Property Group Inc.

    799       99,555  

Sirius XM Holdings Inc.(c)

    37,348       190,475  

Starbucks Corp.

    1,838       186,686  

State Street Corp.

    2,799       202,760  

Steel Dynamics Inc.

    2,788       297,145  

Synchrony Financial

    13,813       477,101  

Synopsys Inc.(a)

    625       282,375  

Target Corp.

    3,566       486,652  

Teradyne Inc.(c)

    1,700       191,998  

Tesla Inc.(a)

    3,175       849,090  

Texas Instruments Inc.

    2,815       506,700  

Texas Pacific Land Corp.

    68       102,428  

Thermo Fisher Scientific Inc.

    937       514,094  

TJX Companies Inc. (The)

    1,022       88,434  

Tractor Supply Co.

    222       49,726  

Trane Technologies PLC

    2,753       549,058  

Travelers Companies Inc. (The)

    859       148,272  

Ubiquiti Inc.

    235       41,748  

Union Pacific Corp.

    673       156,149  

United Parcel Service Inc., Class B

    94       17,590  
Security   Shares     Value  
United States (continued)            

United Rentals Inc.

    204     $ 94,795  

UnitedHealth Group Inc.

    2,228       1,128,192  

Veeva Systems Inc., Class A(a)

    136       27,774  

VeriSign Inc.(a)

    502       105,897  

Verizon Communications Inc.

    3,672       125,142  

Vertex Pharmaceuticals Inc.(a)

    492       173,351  

Visa Inc., Class A

    3,694       878,175  

Vistra Corp.

    2,771       77,754  

Voya Financial Inc.

    1,428       106,043  

Walmart Inc.

    3,346       534,892  

Waters Corp.(a)

    137       37,841  

Wells Fargo & Co.

    3,437       158,652  

Weyerhaeuser Co.

    887       30,211  

Whirlpool Corp.

    1,227       177,007  

WW Grainger Inc.

    304       224,501  

Yum! Brands Inc.

    680       93,616  

Zebra Technologies Corp., Class A(a)

    136       41,883  

Zscaler Inc.(a)

    518       83,077  
   

 

 

 
      73,020,959  
   

 

 

 

Total Common Stocks — 99.0%
(Cost: $107,885,614)

      123,574,482  
   

 

 

 
Preferred Stocks            
Brazil — 0.2%            

Cia. Energetica de Minas Gerais, Preference Shares, NVS

    17,753       47,567  

Gerdau SA, Preference Shares, NVS

    30,736       190,119  
   

 

 

 
      237,686  
Germany — 0.4%            

Dr Ing hc F Porsche AG, Preference Shares, NVS(b)

    4,216       515,543  
   

 

 

 
Russia — 0.0%            

Surgutneftegas PJSC, Preference Shares, NVS(d)

    145,100       16  
   

 

 

 

Total Preferred Stocks — 0.6%
(Cost: $801,476)

 

    753,245  
   

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $108,687,090)

 

    124,327,727  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 1.0%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.42%(f)(g)(h)

    1,228,488       1,228,857  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.22%(f)(g)

    100,000       100,000  
   

 

 

 

Total Short-Term Securities — 1.0%
(Cost: $1,328,990)

 

    1,328,857  
   

 

 

 

Total Investments — 100.6%
(Cost: $110,016,080)

 

    125,656,584  

Liabilities in Excess of Other Assets — (0.6)%

 

    (808,292
   

 

 

 

Net Assets — 100.0%

    $ 124,848,292  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

All or a portion of this security is on loan.

 

 

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

  19


Schedule of Investments (continued)

July 31, 2023

  

iShares® Global Equity Factor ETF

 

(d) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(e) 

This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

(f) 

Affiliate of the Fund.

(g) 

Annualized 7-day yield as of period end.

(h) 

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

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended July 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
07/31/22
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
07/31/23
    Shares
Held at
07/31/23
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 534,925     $ 694,145 (a)    $     $ (52   $ (161   $ 1,228,857       1,228,488     $ 13,962 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    190,000             (90,000 )(a)                  100,000       100,000       6,926        

BlackRock Inc.

          117,205       (5,273        (243     8,005       119,694       162       1,660        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (295   $   7,844     $ 1,448,551       $ 22,548     $    —  
                     

 

   

 

   

 

         

 

   

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

Long Contracts

           

MSCI EAFE Index

     2        09/15/23      $ 220      $ 186  

MSCI Emerging Markets Index

     1        09/15/23        53        3,051  

S&P 500 E-Mini Index

     1        09/15/23        231        13,606  
           

 

 

 
            $ 16,843  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

               
     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 16,843      $      $      $      $ 16,843  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

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

 

 

 

20  

2 0 2 3I S H A R E S   A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (continued)

July 31, 2023

  

iShares® Global Equity Factor ETF

 

For the period ended July 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
     Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
    Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from

                  

Futures contracts

  $    —      $      $ 12,835     $    —      $    —      $    —      $ 12,835  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                  

Futures contracts

  $      $      $ (21,329   $      $      $      $ (21,329
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

 

Average notional value of contracts — long

  $ 389,328  

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
    Level 1            Level 2             Level 3             Total  

 

 

Assets

                  

Investments

                  

Long-Term Investments

                  

Common Stocks

  $ 79,842,080        $ 43,732,388         $ 14         $ 123,574,482  

Preferred Stocks

    237,686          515,543           16           753,245  

Short-Term Securities

                  

Money Market Funds

    1,328,857                              1,328,857  
 

 

 

      

 

 

       

 

 

       

 

 

 
  $ 81,408,623        $ 44,247,931         $ 30         $ 125,656,584  
 

 

 

      

 

 

       

 

 

       

 

 

 

Derivative Financial Instruments(a)

                  

Assets

                  

Equity Contracts

  $ 16,843        $         $         $ 16,843  
 

 

 

      

 

 

       

 

 

       

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  21


Schedule of Investments

July 31, 2023

  

iShares® International Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks  
Australia — 7.1%            

AGL Energy Ltd.

    251,889     $ 2,064,364  

ALS Ltd.

    94,507       747,485  

Aristocrat Leisure Ltd.

    38,189       1,011,444  

ASX Ltd.

    23,725       991,198  

Aurizon Holdings Ltd.

    1,507,850       3,864,338  

Australia & New Zealand Banking Group Ltd.

    66,916       1,160,937  

BHP Group Ltd.

    268,884       8,368,172  

BlueScope Steel Ltd.

    103,705       1,529,342  

Brambles Ltd.

    159,731       1,511,178  

Commonwealth Bank of Australia

    39,800       2,831,721  

CSL Ltd.

    11,018       1,984,520  

Fortescue Metals Group Ltd.

    235,236       3,458,140  

JB Hi-Fi Ltd.

    108,061       3,323,499  

Lottery Corp. Ltd. (The)

    556,334       1,935,983  

Macquarie Group Ltd.

    32,375       3,817,981  

Metcash Ltd.

    766,754       1,856,723  

Mineral Resources Ltd.

    26,398       1,275,466  

New Hope Corp. Ltd.

    544,227       1,949,017  

Orora Ltd.

    568,431       1,373,050  

Pro Medicus Ltd.(a)

    15,348       710,814  

Rio Tinto Ltd.

    70,299       5,566,612  

Sims Ltd.

    157,568       1,607,308  

Sonic Healthcare Ltd.

    4,303       101,670  

South32 Ltd.

    754,509       1,986,770  

Stockland

    773,155       2,197,330  

Telstra Corp. Ltd.

    511,933       1,465,260  

Wesfarmers Ltd.

    49,691       1,660,282  

Whitehaven Coal Ltd.

    808,121       3,775,950  

Woodside Energy Group Ltd.

    5,192       133,825  

Woolworths Group Ltd.

    102,664       2,666,064  

Yancoal Australia Ltd., NVS

    497,871       1,709,637  
   

 

 

 
       68,636,080  
Austria — 0.8%            

ANDRITZ AG

    14,714       776,869  

BAWAG Group AG(b)

    15,170       739,043  

OMV AG

    56,039       2,524,786  

Verbund AG

    4,315       357,528  

Wienerberger AG

    103,402       3,395,809  
   

 

 

 
      7,794,035  
Belgium — 0.6%            

Ageas SA/NV

    69,828       2,956,046  

D’ieteren Group

    6,909       1,206,630  

KBC Group NV

    12,572       946,229  

Solvay SA

    2,032       244,040  
   

 

 

 
      5,352,945  
Canada — 6.6%            

Bank of Montreal

    64,071       5,954,014  

BCE Inc.

    15,303       661,024  

Brookfield Asset Management Ltd.

    22,004       742,227  

Canadian Imperial Bank of Commerce

    4,952       218,111  

Canadian National Railway Co.

    3,065       371,524  

Canadian Natural Resources Ltd.

    55,821       3,394,597  

CGI Inc.(c)

    30,468       3,096,130  

Constellation Software Inc./Canada

    1,793       3,788,137  

Dollarama Inc.

    12,980       854,998  

Fairfax Financial Holdings Ltd.

    812       647,826  

Loblaw Companies Ltd.

    61,669       5,471,712  

Magna International Inc.

    14,545       935,473  
Security   Shares     Value  
Canada (continued)            

Manulife Financial Corp.

    114,145     $ 2,281,775  

National Bank of Canada

    1,678       131,425  

Nutrien Ltd.

    50,306       3,466,656  

Power Corp. of Canada

    50,284       1,424,647  

Royal Bank of Canada

    105,935       10,502,319  

Sun Life Financial Inc.

    4,552       239,570  

Suncor Energy Inc.

    54,343       1,700,369  

Teck Resources Ltd., Class B

    65,914       2,928,178  

Thomson Reuters Corp.

    52,319       7,062,361  

Toronto-Dominion Bank (The)

    114,134       7,526,707  
   

 

 

 
      63,399,780  
China — 0.3%            

Yadea Group Holdings Ltd.(b)

    1,132,000       2,576,045  
   

 

 

 
Denmark — 3.3%            

AP Moller - Maersk A/S, Class B, NVS

    452       928,501  

Carlsberg AS, Class B

    22,304       3,345,201  

Coloplast A/S, Class B

    6,686       831,113  

Demant A/S(c)

    5,488       218,394  

Genmab A/S(c)

    1,731       713,517  

ISS A/S

    76,665       1,549,110  

Jyske Bank A/S, Registered(c)

    4,239       320,658  

Novo Nordisk A/S, Class B

    107,190       17,284,622  

Pandora A/S

    31,148       3,115,794  

Ringkjoebing Landbobank A/S

    4,084       581,229  

Sydbank AS

    52,649       2,524,954  
   

 

 

 
       31,413,093  
Finland — 1.0%            

Kesko OYJ, Class B

    68,886       1,378,319  

Kone OYJ, Class B

    14,982       768,469  

Nokia OYJ

    78,772       309,648  

Nordea Bank Abp, New

    381,159       4,315,348  

Orion OYJ, Class B

    53,920       2,072,205  

Valmet OYJ

    32,338       857,789  
   

 

 

 
      9,701,778  
France — 10.4%            

Air Liquide SA

    1,129       202,987  

Airbus SE

    2,593       381,949  

ArcelorMittal SA

    33,938       981,547  

AXA SA

    3,933       120,896  

BNP Paribas SA

    103,984       6,857,516  

Bollore SE

    100,297       634,150  

Bouygues SA

    80,015       2,866,261  

Capgemini SE

    7,151       1,295,894  

Carrefour SA

    125,454       2,507,967  

Christian Dior SE, NVS

    4,441       3,911,144  

Cie. de Saint-Gobain

    49,342       3,337,066  

Credit Agricole SA

    327,498       4,066,011  

Danone SA

    1,792       109,432  

Dassault Systemes SE

    43,037       1,839,343  

Edenred

    4,694       304,877  

Eiffage SA

    20,240       2,105,720  

Engie SA

    135,802       2,227,876  

EssilorLuxottica SA

    1,670       335,963  

Euronext NV(b)

    1,080       82,203  

Gaztransport Et Technigaz SA

    1,390       169,529  

Hermes International

    73       161,568  

Kering SA

    6,300       3,617,241  

Klepierre SA

    11,218       297,767  

La Francaise des Jeux SAEM(b)

    92,247       3,521,747  

 

 

22  

2 0 2 3  I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (continued)

July 31, 2023

  

iShares® International Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
France (continued)            

Legrand SA

    9,603     $ 962,746  

L’Oreal SA

    16,755       7,792,908  

LVMH Moet Hennessy Louis Vuitton SE

    13,649       12,676,748  

Orange SA

    180,975       2,045,712  

Pernod Ricard SA

    5,240       1,155,271  

Publicis Groupe SA

    48,929       3,944,919  

Rexel SA

    22,226       536,141  

Sanofi

    62,358       6,652,633  

Schneider Electric SE

    21,286       3,796,827  

SES SA, Class A

    18,801       121,802  

Societe Generale SA

    73,654       2,003,148  

Sodexo SA

    1,542       158,174  

TotalEnergies SE

    134,794       8,189,613  

Unibail-Rodamco-Westfield, New(c)

    100,287       5,682,548  

Vinci SA

    15,839       1,860,249  

Vivendi SE

    134,487       1,200,747  
   

 

 

 
       100,716,840  
Germany — 5.2%            

adidas AG

    2,231       450,406  

AIXTRON SE

    58,056       2,303,237  

Allianz SE, Registered

    20,565       4,915,022  

Aurubis AG

    3,772       355,067  

BASF SE

    18,939       1,015,339  

Bayer AG, Registered

    26,650       1,558,583  

Bayerische Motoren Werke AG

    26,822       3,270,942  

Commerzbank AG

    126,278       1,510,471  

Deutsche Bank AG, Registered

    27,665       306,670  

Deutsche Boerse AG

    10,228       1,959,700  

Deutsche Post AG, Registered

    67,201       3,455,691  

Deutsche Telekom AG, Registered

    140,121       3,054,811  

E.ON SE

    82,797       1,047,409  

Evonik Industries AG

    11,517       238,552  

GEA Group AG

    36,675       1,556,553  

Hannover Rueck SE

    496       105,834  

HelloFresh SE(c)

    37,197       1,060,676  

Hugo Boss AG

    21,864       1,765,486  

Mercedes-Benz Group AG

    66,852       5,338,996  

Merck KGaA

    3,754       659,671  

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered

    7,033       2,647,544  

RWE AG

    6,319       271,961  

SAP SE

    43,370       5,916,169  

Siemens AG, Registered

    19,896       3,391,117  

Telefonica Deutschland Holding AG

    435,840       1,174,318  

Wacker Chemie AG

    7,644       1,187,784  
   

 

 

 
      50,518,009  
Hong Kong — 1.8%            

AIA Group Ltd.

    533,400       5,336,526  

CK Asset Holdings Ltd.

    208,500       1,207,438  

CK Hutchison Holdings Ltd.

    304,500       1,877,951  

HKT Trust & HKT Ltd., Class SS

    71,000       83,865  

Hong Kong Exchanges & Clearing Ltd.

    63,500       2,677,287  

Link REIT

    103,280       580,553  

Pacific Basin Shipping Ltd.

    445,000       144,879  

PCCW Ltd.

    709,000       362,511  

SITC International Holdings Co. Ltd.

    505,000       1,106,534  

Swire Properties Ltd.

    749,400       1,880,487  

WH Group Ltd.(b)

    2,743,000       1,497,102  

Wharf Real Estate Investment Co. Ltd.

    186,000       998,163  
   

 

 

 
      17,753,296  
Security   Shares     Value  
Ireland — 0.8%            

AIB Group PLC

    876,989     $ 4,125,060  

Bank of Ireland Group PLC

    133,505       1,408,585  

CRH PLC

    41,875       2,494,533  
   

 

 

 
      8,028,178  
Italy — 2.4%            

A2A SpA

    1,512,095       2,885,015  

BPER Banca

    577,631       1,998,778  

Brunello Cucinelli SpA

    1,397       118,117  

Enel SpA

    403,373       2,781,336  

Eni SpA

    257,409       3,929,829  

Hera SpA

    249,976       776,185  

Intesa Sanpaolo SpA

    253,185       732,127  

Italgas SpA

    251,769       1,483,383  

Mediobanca Banca di Credito Finanziario SpA

    47,881       638,091  

Poste Italiane SpA(b)

    81,813       934,590  

Recordati Industria Chimica e Farmaceutica SpA

    2,957       152,700  

Snam SpA

    382,843       2,012,515  

Stellantis NV

    41,395       849,338  

Terna - Rete Elettrica Nazionale

    116,489       984,216  

UniCredit SpA

    110,200       2,790,291  
   

 

 

 
       23,066,511  
Japan — 23.2%            

ADEKA Corp.

    27,900       565,667  

Advance Residence Investment Corp.

    198       482,452  

Advantest Corp.

    14,700       2,033,155  

Ajinomoto Co. Inc.

    31,200       1,215,705  

Amada Co. Ltd.

    18,800       185,021  

Asics Corp.

    50,700       1,599,341  

Astellas Pharma Inc.

    173,400       2,535,515  

Bandai Namco Holdings Inc.

    33,200       751,135  

BayCurrent Consulting Inc.

    42,000       1,356,379  

BIPROGY Inc.

    59,200       1,453,009  

Canon Inc.

    25,200       651,304  

Capcom Co. Ltd.

    79,700       3,583,869  

Chubu Electric Power Co. Inc.

    94,400       1,182,624  

Chugai Pharmaceutical Co. Ltd.

    50,600       1,505,919  

Cosmo Energy Holdings Co. Ltd.

    70,100       2,173,460  

Dai Nippon Printing Co. Ltd.

    80,900       2,299,661  

Daicel Corp.

    72,000       667,192  

Dai-ichi Life Holdings Inc.

    102,100       2,086,078  

Daiichi Sankyo Co. Ltd.

    117,700       3,625,114  

Daikin Industries Ltd.

    2,100       424,617  

Daiwa Securities Group Inc.

    19,000       102,997  

Disco Corp.

    7,200       1,353,426  

Ebara Corp.

    37,700       1,781,627  

Eisai Co. Ltd.

    14,200       895,929  

Fast Retailing Co. Ltd.

    10,900       2,730,589  

Frontier Real Estate Investment Corp.

    508       1,687,893  

Fuji Electric Co. Ltd.

    12,100       547,036  

FUJIFILM Holdings Corp.

    23,500       1,364,542  

Fujikura Ltd.

    275,200       2,300,997  

Fujitsu Ltd.

    18,000       2,330,816  

Hachijuni Bank Ltd. (The)

    253,900       1,308,129  

Hirose Electric Co. Ltd.

    2,100       265,981  

Hitachi Ltd.

    49,900       3,266,678  

Honda Motor Co. Ltd.

    96,200       3,066,989  

Hoya Corp.

    31,600       3,680,114  

Ibiden Co. Ltd.

    4,600       279,585  

IHI Corp.

    13,700       336,847  

Inpex Corp.