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.

    10,800       139,452  

 

 

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

  23


Schedule of Investments (continued)

July 31, 2023

  

iShares® International Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)            

Internet Initiative Japan Inc.

    140,000     $  2,606,724  

Isetan Mitsukoshi Holdings Ltd.

    83,100       901,541  

ITOCHU Corp.

    109,200       4,416,626  

Japan Post Bank Co. Ltd.

    145,600       1,211,325  

Japan Post Holdings Co. Ltd.

    259,800       1,897,212  

Japan Post Insurance Co. Ltd.

    188,800       3,051,040  

Japan Real Estate Investment Corp.

    786       3,161,368  

Japan Tobacco Inc.

    5,700       126,481  

Kagome Co. Ltd.

    84,000       1,872,703  

Kamigumi Co. Ltd.

    9,900       229,643  

KDDI Corp.

    56,600       1,665,834  

Keyence Corp.

    6,900       3,096,319  

Kikkoman Corp.

    5,600       322,733  

Kirin Holdings Co. Ltd.

    12,600       186,107  

Koei Tecmo Holdings Co. Ltd.

    57,600       985,601  

Konami Group Corp.

    21,900       1,228,516  

LaSalle Logiport REIT

    1,278       1,367,219  

Marubeni Corp.

    62,700       1,110,103  

Maruichi Steel Tube Ltd.

    73,600       1,744,404  

Mitsubishi Corp.

    100,700       5,152,462  

Mitsubishi Estate Co. Ltd.

    80,000       980,455  

Mitsubishi Gas Chemical Co. Inc.

    87,100       1,306,372  

Mitsubishi Heavy Industries Ltd.

    38,300       1,817,106  

Mitsubishi Logistics Corp.

    21,200       532,524  

Mitsubishi UFJ Financial Group Inc.

    556,700       4,482,686  

Mitsui & Co. Ltd.

    59,600       2,326,193  

Mitsui Chemicals Inc.

    10,500       301,917  

MS&AD Insurance Group Holdings Inc.

    92,400       3,436,662  

Nihon Kohden Corp.

    10,000       263,595  

Nintendo Co. Ltd.

    111,400       5,039,150  

Nippon Accommodations Fund Inc.

    320       1,516,799  

Nippon Express Holdings Inc.

    52,900       3,101,591  

Nippon Gas Co. Ltd.

    114,700       1,687,877  

Nippon Telegraph & Telephone Corp.

    6,111,500       7,008,167  

Nissan Chemical Corp.

    41,400       1,860,337  

Nissan Motor Co. Ltd.

    144,000       634,341  

Nissin Foods Holdings Co. Ltd.

    10,700       902,176  

Nitto Denko Corp.

    18,100       1,287,109  

NOF Corp.

    10,100       435,852  

Nomura Holdings Inc.

    736,300       3,046,052  

Nomura Real Estate Holdings Inc.

    116,600       2,892,032  

Nomura Research Institute Ltd.

    117,700       3,344,436  

Obic Co. Ltd.

    1,500       245,460  

Olympus Corp.

    149,900       2,445,907  

Omron Corp.

    2,800       150,294  

ORIX Corp.

    142,800       2,746,975  

Osaka Gas Co. Ltd.

    60,900       958,252  

Panasonic Holdings Corp.

    63,200       780,102  

Persol Holdings Co. Ltd.

    57,800       1,143,320  

Recruit Holdings Co. Ltd.

    76,300       2,642,700  

Rohto Pharmaceutical Co. Ltd.

    22,400       477,447  

Sanken Electric Co. Ltd.

    2,800       286,072  

Sanrio Co. Ltd.

    50,000       2,328,158  

Sanwa Holdings Corp.

    123,200       1,675,536  

SBI Holdings Inc.

    118,900       2,510,846  

SCREEN Holdings Co. Ltd.

    2,600       280,928  

SCSK Corp.

    138,500       2,302,569  

Sega Sammy Holdings Inc.

    59,200       1,294,386  

Seiko Epson Corp.

    25,400       417,111  

Sekisui House Ltd.

    22,600       461,078  
Security   Shares     Value  
Japan (continued)            

Seven & i Holdings Co. Ltd.

    4,700     $ 194,980  

Shimadzu Corp.

    18,800       570,971  

Shimamura Co. Ltd.

    10,800       1,069,586  

Shin-Etsu Chemical Co. Ltd.

    50,500       1,663,715  

Shionogi & Co. Ltd.

    9,600       402,317  

SHO-BOND Holdings Co. Ltd.

    46,500       1,888,597  

SMC Corp.

    600       313,538  

Socionext Inc.

    20,700       2,449,335  

SoftBank Corp.

    109,800       1,219,274  

Sohgo Security Services Co. Ltd.

    401,000       2,451,694  

Sompo Holdings Inc.

    29,500       1,304,217  

Sony Group Corp.

    63,300       5,929,072  

Sumitomo Heavy Industries Ltd.

    8,500       209,217  

Sumitomo Mitsui Financial Group Inc.

    64,800       3,035,987  

Sumitomo Mitsui Trust Holdings Inc.

    6,200       241,191  

Sumitomo Realty & Development Co. Ltd.

    10,700       286,754  

T&D Holdings Inc.

    151,100       2,456,706  

TIS Inc.

    81,800       2,074,758  

Tokio Marine Holdings Inc.

    131,500       3,023,840  

Tokyo Electron Ltd.

    27,900       4,187,425  

Tokyo Gas Co. Ltd.

    16,100       365,085  

Tokyo Ohka Kogyo Co. Ltd.

    23,100       1,459,032  

Tokyo Tatemono Co. Ltd.

    169,800       2,269,120  

Toppan Inc.

    46,300       1,089,833  

Toyota Motor Corp.

    549,500       9,239,155  

Trend Micro Inc./Japan

    18,000       850,423  

Ulvac Inc.

    48,100       2,065,462  

USS Co. Ltd.

    15,500       268,771  

Yakult Honsha Co. Ltd.

    18,300       1,015,391  

Yamada Holdings Co. Ltd.

    101,000       305,135  

Yamato Holdings Co. Ltd.

    5,400       101,131  

Yamato Kogyo Co. Ltd.

    47,400       2,266,632  

Zensho Holdings Co. Ltd.

    46,700       2,488,469  
   

 

 

 
       224,258,188  
Netherlands — 5.3%            

ABN AMRO Bank NV, CVA(b)

    69,647       1,184,222  

Adyen NV(b)(c)

    2,799       5,194,985  

Akzo Nobel NV

    22,754       1,946,560  

ASM International NV

    5,898       2,802,024  

ASML Holding NV

    19,869       14,231,544  

ASR Nederland NV

    49,830       2,258,764  

BE Semiconductor Industries NV

    12,483       1,490,453  

ING Groep NV

    177,930       2,597,184  

Koninklijke Ahold Delhaize NV

    197,811       6,818,272  

Koninklijke KPN NV

    304,508       1,101,788  

Koninklijke Philips NV(c)

    38,218       793,927  

NN Group NV

    68,941       2,642,848  

OCI NV

    127,505       3,633,863  

QIAGEN NV(a)(c)

    11,968       561,557  

Randstad NV

    32,031       1,876,552  

Signify NV(b)

    50,970       1,602,572  

Universal Music Group NV

    33,641       862,888  
   

 

 

 
      51,600,003  
New Zealand — 0.6%            

Fisher & Paykel Healthcare Corp. Ltd.

    55,543       847,978  

Fletcher Building Ltd.

    773,630       2,682,322  

Mainfreight Ltd.

    12,924       545,068  

Meridian Energy Ltd.

    184,500       647,572  

 

 

24  

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  
New Zealand (continued)            

Spark New Zealand Ltd.

    215,852     $ 694,945  
   

 

 

 
       5,417,885  
Norway — 1.1%            

DNB Bank ASA

    95,416       1,966,283  

Equinor ASA

    31,165       953,290  

Gjensidige Forsikring ASA

    5,053       79,769  

Kongsberg Gruppen ASA

    65,092       2,824,415  

Orkla ASA

    262,376       2,070,363  

Telenor ASA

    114,733       1,228,210  

Yara International ASA

    34,502       1,409,130  
   

 

 

 
      10,531,460  
Poland — 0.2%            

LPP SA

    598       2,057,085  
   

 

 

 
Portugal — 0.2%            

Galp Energia SGPS SA

    73,794       980,694  

Jeronimo Martins SGPS SA

    26,776       728,997  
   

 

 

 
      1,709,691  
Singapore — 1.8%            

DBS Group Holdings Ltd.

    37,500       967,389  

Jardine Cycle & Carriage Ltd.

    44,700       1,153,699  

NetLink NBN Trust

    2,827,600       1,829,014  

Oversea-Chinese Banking Corp. Ltd.

    179,300       1,794,390  

Sembcorp Industries Ltd.

    889,900       3,648,037  

Singapore Technologies Engineering Ltd.

    438,100       1,229,967  

STMicroelectronics NV , New(a)

    34,499       1,846,048  

United Overseas Bank Ltd.

    126,100       2,860,387  

Wilmar International Ltd.

    269,600       783,386  

Yangzijiang Shipbuilding Holdings Ltd.

    1,333,800       1,545,158  
   

 

 

 
      17,657,475  
Spain — 2.1%            

Acciona SA

    12,126       1,817,672  

Banco Bilbao Vizcaya Argentaria SA

    307,362       2,436,266  

Banco de Sabadell SA

    1,954,442       2,408,601  

Banco Santander SA

    113,940       461,717  

Bankinter SA

    30,233       195,609  

CaixaBank SA

    109,040       441,089  

Corp. ACCIONA Energias Renovables SA

    44,054       1,386,633  

Endesa SA

    85,158       1,825,178  

Iberdrola SA

    207,345       2,587,989  

Naturgy Energy Group SA

    8,457       257,860  

Redeia Corp. SA

    6,608       110,523  

Repsol SA

    293,776       4,485,202  

Telefonica SA

    402,900       1,716,661  
   

 

 

 
      20,131,000  
Sweden — 2.5%            

Axfood AB

    106,507       2,713,670  

EQT AB

    58,436       1,395,866  

Getinge AB, Class B

    28,574       532,420  

H & M Hennes & Mauritz AB, Class B

    155,168       2,609,889  

Husqvarna AB, Class B

    91,177       894,315  

Kindred Group PLC

    177,549       2,135,647  

Kinnevik AB, Class B(c)

    202,236       2,760,259  

Millicom International Cellular SA, SDR(c)

    7,110       110,398  

Sandvik AB

    23,589       479,152  

Skandinaviska Enskilda Banken AB, Class A

    140,658       1,705,089  

SSAB AB, Class B

    479,321       2,932,464  

Svenska Handelsbanken AB, Class A

    46,683       409,875  

Swedbank AB, Class A

    50,433       925,026  
Security   Shares     Value  
Sweden (continued)            

Telefonaktiebolaget LM Ericsson, Class B

    398,494     $ 2,004,614  

Telia Co. AB

    75,102       161,393  

Thule Group AB(b)

    12,740       397,824  

Volvo AB, Class B

    89,256       1,968,864  
   

 

 

 
      24,136,765  
Switzerland — 8.3%            

ABB Ltd., Registered

    47,270       1,896,828  

Adecco Group AG, Registered

    55,341       2,255,385  

Alcon Inc.

    31,827       2,708,211  

Bucher Industries AG, Registered

    6,477       2,886,235  

Cie. Financiere Richemont SA, Class A, Registered

    26,054       4,195,549  

Coca-Cola HBC AG, Class DI

    114,049       3,355,656  

Galenica AG(b)

    6,373       512,900  

Julius Baer Group Ltd.

    17,311       1,226,095  

Kuehne + Nagel International AG, Registered

    11,462       3,586,413  

Logitech International SA, Registered

    13,950       986,250  

Nestle SA, Registered

    143,620       17,596,197  

Novartis AG, Registered

    125,977       13,189,431  

PSP Swiss Property AG, Registered

    14,882       1,753,695  

Roche Holding AG, NVS

    34,089       10,569,340  

SGS SA

    14,260       1,384,575  

Sonova Holding AG, Registered

    3,974       1,107,733  

Straumann Holding AG

    11,005       1,821,029  

Swiss Life Holding AG, Registered

    1,734       1,102,571  

Swiss Re AG

    11,982       1,250,193  

Swisscom AG, Registered

    235       151,118  

UBS Group AG, Registered

    274,435       6,089,403  

VAT Group AG(b)

    1,287       547,035  

Zurich Insurance Group AG

    276       133,446  
   

 

 

 
       80,305,288  
United Kingdom — 12.8%            

3i Group PLC

    93,914       2,382,707  

Anglo American PLC

    92,849       2,855,271  

AstraZeneca PLC

    64,081       9,206,914  

B&M European Value Retail SA

    132,237       939,268  

BAE Systems PLC

    180,288       2,156,072  

Balfour Beatty PLC

    576,934       2,586,985  

Barclays PLC

    521,163       1,034,149  

Barratt Developments PLC

    84,813       496,462  

BP PLC

    1,000,736       6,209,014  

British American Tobacco PLC

    38,976       1,310,689  

Bunzl PLC

    9,500       352,145  

Burberry Group PLC

    106,681       3,045,234  

Centrica PLC

    176,653       313,056  

CNH Industrial NV

    101,534       1,466,453  

Computacenter PLC

    34,384       970,037  

Diageo PLC

    110,611       4,827,314  

Drax Group PLC

    154,711       1,200,820  

Glencore PLC

    484,615       2,947,154  

Grafton Group PLC

    142,867       1,605,948  

Greggs PLC

    61,002       2,163,358  

GSK PLC

    228,228       4,062,721  

Haleon PLC

    44,425       191,757  

Howden Joinery Group PLC

    210,348       1,991,775  

HSBC Holdings PLC

    687,251       5,708,590  

IG Group Holdings PLC

    31,966       290,462  

IMI PLC

    91,062       1,903,871  

Imperial Brands PLC

    102,120       2,412,630  

Inchcape PLC

    304,436       3,201,756  

Indivior PLC, NVS(c)

    134,639       3,028,989  

 

 

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

  25


Schedule of Investments (continued)

July 31, 2023

  

iShares® International Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United Kingdom (continued)            

Intermediate Capital Group PLC

    112,387     $ 2,028,364  

International Distributions Services PLC(c)

    704,438       2,406,199  

Investec PLC

    426,184       2,677,833  

JD Sports Fashion PLC

    892,905       1,808,697  

Kingfisher PLC

    614,418       1,937,487  

Land Securities Group PLC

    29,678       246,470  

Legal & General Group PLC

    429,806       1,288,070  

Lloyds Banking Group PLC

    1,081,756       624,982  

M&G PLC

    143,766       370,327  

Man Group PLC/Jersey

    722,694       2,215,484  

Marks & Spencer Group PLC(c)

    137,161       363,326  

Next PLC

    31,524       2,851,055  

OSB Group PLC

    65,071       307,539  

Pearson PLC

    81,451       900,974  

Persimmon PLC

    21,754       323,415  

QinetiQ Group PLC

    269,244       1,114,830  

Reckitt Benckiser Group PLC

    20,433       1,530,678  

Rentokil Initial PLC

    160,653       1,309,990  

Rightmove PLC

    196,535       1,440,010  

Rio Tinto PLC

    61,914       4,092,374  

RS GROUP PLC

    42,699       430,106  

Safestore Holdings PLC

    139,356       1,584,178  

Sage Group PLC (The)

    146,820       1,766,036  

Serco Group PLC

    123,451       246,043  

Shell PLC

    296,399       9,117,492  

Softcat PLC

    30,846       594,328  

Tesco PLC

    84,957       281,384  

Unilever PLC

    53,799       2,890,776  

United Utilities Group PLC

    34,062       436,796  

Vodafone Group PLC

    3,144,482       2,991,219  

WPP PLC

    197,174       2,152,890  
   

 

 

 
       123,190,953  
   

 

 

 

Total Common Stocks — 98.4%
(Cost: $879,051,000)

 

    949,952,383  
   

 

 

 
Security   Shares     Value  
Preferred Stocks            
Germany — 1.0%            

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

    67,056     $ 8,199,786  

Volkswagen AG, Preference Shares, NVS

    9,018       1,194,665  
   

 

 

 
      9,394,451  
   

 

 

 

Total Preferred Stocks — 1.0%
(Cost: $8,144,628)

 

    9,394,451  
   

 

 

 

Total Long-Term Investments — 99.4%
(Cost: $887,195,628)

 

    959,346,834  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.1%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.42%(d)(e)(f)

    847,125       847,379  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.22%(d)(e)

    120,000       120,000  
   

 

 

 

Total Short-Term Securities — 0.1%
(Cost: $966,990)

 

    967,379  
   

 

 

 

Total Investments — 99.5%
(Cost: $888,162,618)

 

    960,314,213  

Other Assets Less Liabilities — 0.5%

 

    4,446,985  
   

 

 

 

Net Assets — 100.0%

    $ 964,761,198  
   

 

 

 

 

(a) 

All or a portion of this security is on loan.

(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)

Non-income producing security.

(d) 

Affiliate of the Fund.

(e)

Annualized 7-day yield as of period end.

(f) 

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

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the 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

  $ 5,549,608     $   —     $ (4,701,383 )(a)    $   (1,105   $    259     $ 847,379       847,125     $ 144,347 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    180,000             (60,000 )(a)                   120,000       120,000       20,677        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $   (1,105   $    259     $ 967,379       $ 165,024     $    —  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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.

 

 

 

26  

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® International Equity Factor ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

Long Contracts

           

TOPIX Index

     8        09/07/23      $ 1,311        $   51,590  

Euro STOXX 50 Index

     40        09/15/23        1,976        70,016  

FTSE 100 Index

     12        09/15/23        1,184        11,589  

SPI 200 Index

     6        09/21/23        744        30,165  
           

 

 

 
              $  163,360  
           

 

 

 

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)

  $   —      $   —      $ 163,360      $   —      $   —      $   —      $ 163,360  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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).

 

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

  $   —      $   —      $ 898,431     $   —      $   —      $   —      $ 898,431  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                  

Futures contracts

  $   —      $   —      $ (17,183   $   —      $   —      $   —      $ (17,183
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 6,210,679  

 

 

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

  $ 85,488,246        $ 864,464,137           $   —         $ 949,952,383  

Preferred Stocks

             9,394,451                     9,394,451  

Short-Term Securities

                  

Money Market Funds

    967,379                              967,379  
 

 

 

      

 

 

       

 

 

       

 

 

 
  $  86,455,625        $ 873,858,588           $   —         $ 960,314,213  
 

 

 

      

 

 

       

 

 

       

 

 

 

 

 

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

  27


Schedule of Investments (continued)

July 31, 2023

  

iShares® International Equity Factor ETF

 

Fair Value Hierarchy as of Period End (continued)

 

 

 
    Level 1            Level 2             Level 3             Total  

 

 

Derivative Financial Instruments(a)

                  

Assets

                  

Equity Contracts

  $   —        $ 163,360         $   —         $  163,360  
 

 

 

      

 

 

       

 

 

       

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

28  

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

July 31, 2023

  

iShares® International Small-Cap  Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Australia — 7.4%  

29Metals Ltd.(a)

    773,737     $ 376,376  

Abacus Property Group

    185,666       332,339  

Accent Group Ltd.

    69,094       82,175  

Adairs Ltd.(a)

    423,635       485,221  

Alkane Resources Ltd.(b)

    167,331       79,809  

Altium Ltd.

    43,232        1,112,464  

AMP Ltd.

    148,996       113,378  

APM Human Services International Ltd.

    618,951       830,076  

Ardent Leisure Group Ltd.

    2,056,801       713,353  

ARN Media Ltd., NVS

    668,166       466,759  

BWP Trust

    129,889       320,759  

Cettire Ltd.(b)

    554,875       1,112,160  

Champion Iron Ltd.

    66,778       270,551  

Clinuvel Pharmaceuticals Ltd.

    24,318       300,146  

Codan Ltd./Australia

    100,939       510,247  

Collins Foods Ltd.

    59,830       403,836  

CSR Ltd.

    586,913       2,263,969  

Data#3 Ltd.

    57,900       292,613  

Deterra Royalties Ltd.

    468,990       1,486,294  

Domain Holdings Australia Ltd.

    296,641       812,260  

Domino’s Pizza Enterprises Ltd.

    2,895       95,782  

Downer EDI Ltd.

    158,453       468,437  

Elders Ltd.

    72,631       356,097  

FleetPartners Group Ltd., NVS(b)

    472,657       816,722  

GrainCorp Ltd., Class A

    204,773       1,114,637  

GUD Holdings Ltd.

    36,678       246,348  

GWA Group Ltd.

    588,264       776,444  

Healius Ltd.

    533,259       1,030,324  

Helia Group Ltd.

    520,714       1,359,544  

HomeCo Daily Needs REIT

    740,056       595,230  

Iluka Resources Ltd.

    174,086       1,202,406  

Inghams Group Ltd.

    360,910       680,267  

Judo Capital Holdings Ltd.(b)

    311,309       286,000  

Jumbo Interactive Ltd.

    12,545       129,574  

Karoon Energy Ltd.(b)

    351,260       529,276  

Kogan.com Ltd.(a)(b)

    74,884       306,381  

Link Administration Holdings Ltd.

    119,274       122,855  

Liontown Resources Ltd.(a)(b)

    259,585       471,376  

Lovisa Holdings Ltd.

    11,387       164,618  

McMillan Shakespeare Ltd.

    37,056       493,445  

Metcash Ltd.

    238,741       578,120  

Myer Holdings Ltd.

    1,675,433       715,845  

Neometals Ltd.(a)(b)

    645,971       213,404  

Neuren Pharmaceuticals Ltd., NVS(b)

    18,721       163,742  

New Hope Corp. Ltd.

    348,172       1,246,893  

nib holdings Ltd.

    28,757       160,145  

Nick Scali Ltd.

    161,541       1,163,035  

Nine Entertainment Co. Holdings Ltd.

    540,593       779,601  

NRW Holdings Ltd.

    541,751       1,004,289  

OFX Group Ltd.(b)

    109,431       154,650  

Orora Ltd.

    250,900       606,051  

Paladin Energy Ltd.(b)

    518,012       257,752  

Perenti Global Ltd.(b)

    295,869       238,152  

Perseus Mining Ltd.

    115,414       135,702  

PEXA Group Ltd.(b)

    120,818       1,077,841  

PolyNovo Ltd.(b)

    124,871       136,049  

Region RE Ltd.

    283,324       461,544  

Regis Resources Ltd.(b)

    102,869       116,995  

Reliance Worldwide Corp. Ltd.

    64,462       183,132  
Security   Shares     Value  
Australia (continued)            

RPMGlobal Holdings Ltd.(b)

    266,726     $ 292,602  

Sandfire Resources Ltd.(b)

    352,418       1,610,981  

Service Stream Ltd.

    164,243       100,393  

Sigma Healthcare Ltd.

    1,500,189       791,839  

Silex Systems Ltd.(b)

    58,093       141,344  

Sims Ltd.

    165,208       1,685,241  

Southern Cross Media Group Ltd.

    816,969       516,770  

Stanmore Resources Ltd.(b)

    552,945       1,046,127  

Star Entertainment Grp Ltd. (The)(b)

    483,079       341,624  

Steadfast Group Ltd.

    140,504       551,232  

Super Retail Group Ltd.

    161,927       1,343,940  

Tabcorp Holdings Ltd.

    2,591,025       1,838,031  

Telix Pharmaceuticals Ltd.(b)

    88,780       675,254  

Temple & Webster Group Ltd.(a)(b)

    56,935       252,794  

Terracom Ltd.(a)

    3,144,549       869,271  

Ventia Services Group Pty Ltd.

    382,912       746,565  

Weebit Nano Ltd.(a)(b)

    60,216       251,822  
   

 

 

 
       46,059,320  
Austria — 0.5%            

Addiko Bank AG

    16,212       219,249  

Agrana Beteiligungs AG

    9,843       175,322  

ams-OSRAM AG(a)(b)

    46,706       413,420  

IMMOFINANZ AG(b)

    16,212       325,309  

Oesterreichische Post AG

    9,843       359,065  

Porr AG

    39,565       551,602  

S IMMO AG(a)

    11,773       159,703  

Semperit AG Holding

    12,159       271,538  

Zumtobel Group AG(a)

    66,778       583,708  
   

 

 

 
      3,058,916  
Belgium — 1.2%            

AGFA-Gevaert NV(b)

    110,975       285,456  

Barco NV

    21,037       489,575  

Bekaert SA

    15,826       755,387  

bpost SA

    134,135       645,966  

Deceuninck NV

    25,669       65,127  

Deme Group NV

    4,246       562,296  

Gimv NV

    41,688       1,925,107  

Ion Beam Applications

    57,707       931,429  

Orange Belgium SA(b)

    34,161       519,831  

Proximus SADP

    81,832       627,388  

Van de Velde NV

    11,387       425,816  
   

 

 

 
      7,233,378  
Canada — 11.1%            

ADENTRA Inc.

    5,018       132,542  

Advantage Energy Ltd.(b)

    43,039       303,540  

Aecon Group Inc.

    34,547       287,400  

Alamos Gold Inc., Class A

    14,861       183,586  

Andlauer Healthcare Group Inc.

    23,546       786,027  

Aritzia Inc.(b)

    6,562       124,855  

Artis REIT

    18,142       95,618  

ATS Corp.(b)

    18,914       857,739  

Baytex Energy Corp.(b)

    217,318       876,754  

BlackBerry Ltd.(b)

    108,273       550,951  

Boardwalk REIT

    3,667       182,175  

BRP Inc.

    19,300       1,775,515  

Canaccord Genuity Group Inc.

    99,781       628,053  

Canfor Corp.(b)

    63,497       1,002,065  

Capital Power Corp.

    11,777       367,426  

Capstone Mining Corp.(b)

    68,322       356,985  

 

 

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

  29


Schedule of Investments (continued)

July 31, 2023

  

iShares® International Small-Cap  Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Canada (continued)            

Cardinal Energy Ltd.

    24,511     $ 133,461  

Cascades Inc.

    101,132       921,857  

Celestica Inc.(b)

    106,536        2,341,344  

Centerra Gold Inc.

    111,168       713,215  

Choice Properties REIT

    74,884       789,926  

CI Financial Corp.

    182,578       2,309,484  

Cogeco Communications Inc.

    10,036       508,478  

Cogeco Inc.

    17,370       687,344  

Colliers International Group Inc.

    9,071       918,416  

Corus Entertainment Inc., Class B, NVS

    587,685       646,224  

Crescent Point Energy Corp.

    259,392       2,102,833  

CT REIT

    319,801       3,693,603  

Definity Financial Corp.

    49,987       1,258,157  

Docebo Inc.(b)

    28,178       1,084,254  

Dream Office REIT(a)

    40,530       419,546  

Dundee Precious Metals Inc.

    93,026       646,910  

ECN Capital Corp.

    634,391       1,260,459  

Eldorado Gold Corp.(b)

    38,214       374,707  

Enerflex Ltd.

    27,599       223,948  

Enerplus Corp.(a)

    86,360       1,443,939  

Ensign Energy Services Inc.(b)

    217,897       413,106  

EQB Inc.

    5,983       353,041  

ERO Copper Corp.(b)

    43,232       1,039,286  

Filo Corp., NVS(a)(b)

    34,740       657,047  

Finning International Inc.

    80,095       2,758,818  

First Capital Real Estate Investment Trust

    9,071       101,328  

Frontera Energy Corp.(b)

    102,290       830,794  

Gibson Energy Inc.

    44,776       729,034  

H&R Real Estate Investment Trust

    53,075       414,167  

Headwater Exploration Inc.

    16,405       92,435  

Hudbay Minerals Inc.

    20,458       121,943  

IAMGOLD Corp.(b)

    64,655       176,512  

Interfor Corp.(b)

    75,849       1,357,477  

Jamieson Wellness Inc.(c)

    5,018       115,608  

Kinaxis Inc.(b)

    7,720       1,048,243  

Labrador Iron Ore Royalty Corp.

    37,442       898,960  

Lassonde Industries Inc., Class A

    2,123       199,203  

Leon’s Furniture Ltd.

    64,269       1,082,482  

Linamar Corp.

    7,913       459,184  

Major Drilling Group International Inc.(b)

    148,610       1,071,764  

Maple Leaf Foods Inc.

    8,106       169,171  

Martinrea International Inc.

    56,356       631,235  

MEG Energy Corp.(b)

    69,287       1,235,307  

Methanex Corp.

    15,826       713,259  

Morguard Corp.

    772       60,102  

New Gold Inc.(b)

    209,598       246,371  

North West Co. Inc. (The)

    9,843       239,609  

Novagold Resources Inc.(b)

    75,656       340,801  

Nuvei Corp.(b)(c)

    24,511       835,900  

Pan American Silver Corp.(a)

    3,474       58,641  

Parex Resources Inc.

    12,159       269,339  

Parkland Corp.

    20,072       548,131  

Pason Systems Inc.

    116,958       1,167,230  

Peyto Exploration & Development Corp.

    12,159       104,933  

PHX Energy Services Corp.

    31,073       166,128  

PrairieSky Royalty Ltd.

    44,583       886,149  

Precision Drilling Corp.(b)

    14,668       974,085  

Primo Water Corp.

    16,598       235,194  

Prinmaris REIT

    26,827       271,393  

Real Matters Inc.(a)(b)

    198,983       1,048,748  
Security   Shares     Value  
Canada (continued)            

Russel Metals Inc.

    37,635     $ 1,107,659  

Sandstorm Gold Ltd.

    12,738       71,000  

ShawCor Ltd.(b)

    29,143       444,223  

Silvercorp Metals Inc.

    23,739       74,350  

SNC-Lavalin Group Inc.

    9,457       274,749  

Spin Master Corp.(c)

    32,231       859,396  

Sprott Inc.

    2,316       77,191  

SSR Mining Inc.

    14,861       216,376  

Stelco Holdings Inc.

    40,144       1,463,712  

Superior Plus Corp.

    35,705       267,520  

Surge Energy Inc.

    29,529       185,417  

Taseko Mines Ltd.(b)

    44,197       67,369  

Torex Gold Resources Inc.(b)

    40,916       574,031  

TransAlta Corp.

    122,169       1,246,103  

TransAlta Renewables Inc.

    109,624       1,115,652  

Transcontinental Inc., Class A(a)

    62,339       618,828  

Trican Well Service Ltd.

    420,161       1,319,127  

Uni-Select Inc.(b)

    18,142       659,009  

Vermilion Energy Inc.

    50,566       704,814  

Well Health Technologies Corp.(b)

    14,282       51,121  

Western Forest Products Inc.

    219,248       171,255  

Westshore Terminals Investment Corp.

    44,776       1,037,014  

Whitecap Resources Inc.

    162,892       1,300,764  
   

 

 

 
       69,018,174  
China — 0.4%            

China Renaissance Holdings Ltd.(c)(d)

    203,500       166,091  

Huayi Tencent Entertainment Co. Ltd.(a)(b)

    19,300,000       319,752  

Mobvista Inc.(b)(c)

    386,000       192,738  

NetDragon Websoft Holdings Ltd.

    482,500       958,111  

Skyworth Group Ltd.

    1,544,000       705,601  

XD Inc.(b)

    38,600       93,671  
   

 

 

 
      2,435,964  
Denmark — 2.1%            

Ascendis Pharma A/S, ADR(a)(b)

    1,544       139,192  

Bavarian Nordic A/S(b)

    9,457       202,900  

Chemometec A/S(b)

    4,246       284,929  

D/S Norden A/S

    8,106       406,062  

GN Store Nord A/S(b)

    43,811       1,168,211  

ISS A/S

    66,585       1,345,431  

Jyske Bank A/S, Registered(b)

    5,404       408,784  

NKT A/S(b)

    965       55,137  

Per Aarsleff Holding A/S

    29,143       1,383,289  

Ringkjoebing Landbobank A/S

    3,860       549,349  

Rockwool A/S, Class B

    1,351       363,364  

Royal Unibrew A/S

    20,651       1,784,925  

Scandinavian Tobacco Group A/S, Class A(c)

    95,728       1,665,151  

SimCorp A/S

    10,422       1,117,515  

Solar A/S, Class B

    9,843       735,798  

Sydbank AS

    24,897       1,194,016  

Topdanmark AS

    8,685       393,690  

Trifork Holding AG

    2,702       53,184  
   

 

 

 
      13,250,927  
Finland — 1.6%            

Afarak Group SE(b)

    324,819       169,105  

Anora Group OYJ

    10,808       56,101  

Cargotec OYJ, Class B

    3,088       147,484  

F-Secure OYJ

    210,563       518,761  

Harvia OYJ(a)

    7,527       196,873  

Kemira OYJ

    59,251       929,390  

 

 

30  

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 Small-Cap  Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Finland (continued)            

Konecranes OYJ

    7,334     $ 266,566  

Marimekko OYJ

    90,131       891,892  

Nokian Renkaat OYJ

    54,233       504,430  

Oma Saastopankki OYJ

    48,636       1,169,378  

Outokumpu OYJ

    94,377       488,274  

QT Group OYJ(a)(b)

    7,141       592,299  

Rovio Entertainment OYJ(c)

    150,444       1,523,456  

Sanoma OYJ

    92,447       731,418  

Stockmann OYJ Abp, Class B(b)

    29,529       70,441  

TietoEVRY OYJ

    12,159       310,208  

Uponor OYJ

    26,248       830,592  

WithSecure OYJ(b)

    182,771       201,560  

YIT OYJ

    93,605       225,853  
   

 

 

 
       9,824,081  
France — 5.4%            

ALD SA(c)

    27,792       295,276  

Alten SA

    1,544       222,388  

Atos SE(b)

    24,511       254,606  

Beneteau SA

    39,951       652,267  

Casino Guichard Perrachon SA(a)(b)

    23,932       62,384  

CGG SA(a)(b)

    76,621       53,908  

Cie. Plastic Omnium SA

    21,809       424,725  

Coface SA

    98,816       1,447,545  

Criteo SA, SP ADR, SP ADR(b)

    2,702       89,977  

Derichebourg SA

    175,437       1,081,648  

Elis SA

    4,632       95,698  

Eramet SA

    6,562       552,496  

Eurazeo SE

    13,896       848,486  

Euronext NV(c)

    13,703       1,042,986  

Eutelsat Communications SA(a)

    121,783       820,351  

Faurecia SE(b)

    32,617       819,628  

Gaztransport Et Technigaz SA

    13,124       1,600,646  

ICADE

    6,369       259,476  

Interparfums SA

    13,797       995,845  

IPSOS

    21,616       1,080,583  

Kaufman & Broad SA

    16,984       467,561  

Klepierre SA

    76,621       2,033,802  

Korian SA(a)

    7,527       58,611  

La Francaise des Jeux SAEM(c)

    57,128       2,180,996  

Lagardere SA(a)

    4,632       106,247  

Maisons du Monde SA(c)

    10,808       113,481  

Mercialys SA

    84,534       731,759  

Metropole Television SA(a)

    5,983       84,514  

Nexans SA

    3,474       308,423  

Nexity SA

    12,352       209,148  

Quadient SA

    71,410       1,592,039  

Renault SA

    43,232       1,898,820  

Rexel SA

    60,795       1,466,513  

Rothschild & Co.

    39,758       1,689,544  

SCOR SE

    30,301       905,559  

Societe pour l’Informatique Industrielle, NVS

    5,790       338,677  

SOITEC(b)

    3,088       606,882  

Solutions 30 SE(a)(b)

    18,142       59,597  

Sopra Steria Group SACA

    386       83,930  

SPIE SA

    15,440       463,477  

Television Francaise 1

    172,735       1,412,591  

Trigano SA

    5,790       847,836  

Ubisoft Entertainment SA(b)

    19,107       642,601  

Valeo

    47,671       1,077,564  

Verallia SA(c)

    11,194       496,178  
Security   Shares     Value  
France (continued)            

Virbac SA

    965     $ 297,231  

Wavestone

    9,457       561,437  

Wendel SE

    1,930       190,519  
   

 

 

 
       33,626,456  
Germany — 5.3%            

AIXTRON SE

    22,967       911,162  

Amadeus Fire AG

    5,211       618,846  

Atoss Software AG

    4,053       984,126  

Aurubis AG

    18,914       1,780,417  

Bechtle AG

    10,036       441,721  

Ceconomy AG(b)

    208,247       624,002  

CompuGroup Medical SE & Co. KgaA

    2,123       107,818  

Covestro AG(a)(b)(c)

    5,211       279,929  

CTS Eventim AG & Co. KGaA

    3,088       210,744  

Dermapharm Holding SE

    6,948       339,396  

Deutsche Pfandbriefbank AG(a)(c)

    149,961       1,248,111  

Deutz AG

    61,567       338,761  

DIC Asset AG(a)

    92,640       456,318  

Duerr AG

    14,475       451,627  

DWS Group GmbH & Co. KGaA(c)

    2,123       74,532  

Eckert & Ziegler Strahlen- und Medizintechnik AG

    9,650       381,917  

Elmos Semiconductor SE

    2,509       223,472  

flatexDEGIRO AG(b)

    72,761       717,259  

Freenet AG

    47,478       1,175,231  

GEA Group AG

    28,178       1,195,925  

Gerresheimer AG

    5,018       594,351  

GFT Technologies SE

    1,930       56,009  

Hamburger Hafen und Logistik AG

    9,650       126,839  

Heidelberger Druckmaschinen AG(b)

    105,571       168,231  

HelloFresh SE(b)

    59,830       1,706,058  

Hensoldt AG

    2,702       91,868  

Hugo Boss AG

    14,282       1,153,251  

K+S AG, Registered

    23,739       453,258  

Kloeckner & Co. SE

    72,182       674,777  

Krones AG

    4,632       558,167  

LANXESS AG

    10,808       364,513  

Majorel Group Luxembourg SA(a)

    13,703       438,434  

METRO AG(b)

    21,809       189,633  

MLP SE

    19,300       115,800  

Nemetschek SE

    15,440       1,123,553  

New Work SE

    1,158       136,363  

Norma Group SE

    4,246       74,914  

PATRIZIA SE

    44,390       454,183  

ProSiebenSat.1 Media SE(a)

    33,968       337,685  

PVA TePla AG(b)

    16,019       377,321  

Rheinmetall AG

    8,685       2,459,992  

SAF-Holland SE

    16,212       231,663  

Salzgitter AG

    23,546       815,999  

Scout24 SE(c)

    17,370       1,148,255  

SGL Carbon SE(a)(b)

    6,176       51,673  

Sixt SE

    4,825       581,806  

SMA Solar Technology AG(b)

    2,316       220,804  

Stratec SE

    1,930       108,327  

Suedzucker AG

    20,458       354,174  

Synlab AG

    58,286       577,254  

TAG Immobilien AG(b)

    14,475       162,707  

Takkt AG

    26,827       385,222  

TeamViewer AG(b)(c)

    33,775       574,129  

thyssenkrupp AG

    61,374       487,946  

Varta AG(a)

    3,667       83,217  

 

 

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

  31


Schedule of Investments (continued)

July 31, 2023

  

iShares® International Small-Cap  Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Germany (continued)            

Vitesco Technologies Group AG(b)

    5,597     $ 478,677  

Wacker Chemie AG

    4,246       659,777  

Zalando SE(b)(c)

    41,109       1,419,276  
   

 

 

 
       32,557,420  
Hong Kong — 1.9%            

ASMPT Ltd.

    19,300       188,254  

Champion REIT

    1,158,000       426,642  

Chinese Estates Holdings Ltd.(b)

    965,000       274,459  

CK Life Sciences International Holdings Inc.

    5,018,000       497,268  

Emperor Capital Group Ltd.(b)

    9,264,000       68,896  

Esprit Holdings Ltd.(b)

    2,895,000       212,217  

First Pacific Co. Ltd.

    5,018,000       1,819,340  

Fullwealth International Group Holdings Ltd.(b)

    1,544,000       42,763  

Futu Holdings Ltd., ADR(a)(b)

    14,861       894,632  

Giordano International Ltd.

    1,930,000       686,706  

Great Eagle Holdings Ltd.

    74,000       138,194  

Haitong International Securities Group Ltd.(a)(b)

    1,158,000       108,653  

Hong Kong Technology Venture Co. Ltd.

    579,000       344,037  

Hutchison Telecommunications Hong Kong Holdings Ltd.

    1,158,000       176,658  

IGG Inc.(b)

    1,158,000       590,155  

Johnson Electric Holdings Ltd.

    193,000       266,069  

Kerry Logistics Network Ltd.

    96,500       119,150  

Melco Resorts & Entertainment Ltd., ADR(b)

    11,194       152,462  

MOG Digitech Holdings Ltd., NVS

    18,000       226,070  

Orbusneich Medical Group Holdings Ltd., NVS(a)

    96,500       107,155  

PAX Global Technology Ltd.

    386,000       313,394  

PC Partner Group Ltd.

    772,000       384,789  

Prosperity REIT

    3,088,000       670,482  

Shun Tak Holdings Ltd.(b)

    1,158,000       194,071  

Solomon Systech International Ltd.

    1,544,000       88,686  

Sun Hung Kai & Co. Ltd.

    579,000       215,609  

Sunlight REIT

    772,000       287,508  

Tam Jai International Co. Ltd.

    965,000       214,597  

Texwinca Holdings Ltd.

    3,088,000       491,865  

Tiande Chemical Holdings Ltd.

    772,000       150,901  

United Energy Group Ltd.

    3,088,000       390,101  

United Laboratories International Holdings Ltd. (The)

    386,000       309,606  

VTech Holdings Ltd.

    154,400       962,894  
   

 

 

 
      12,014,283  
Ireland — 1.0%            

AIB Group PLC

    481,149       2,263,162  

Bank of Ireland Group PLC

    333,311       3,516,700  

Glanbia PLC

    26,102       404,945  

Greencore Group PLC(b)

    107,115       120,558  
   

 

 

 
      6,305,365  
Israel — 1.3%            

Africa Israel Residences Ltd.

    3,088       151,181  

Altshuler Shaham Penn Ltd.

    68,129       129,054  

AudioCodes Ltd.(a)

    22,774       232,611  

Camtek Ltd./Israel(b)

    7,527       347,901  

Delek Automotive Systems Ltd.

    81,639       591,254  

Elco Ltd.

    2,702       98,260  

Electra Consumer Products 1970 Ltd.

    5,790       144,619  

Equital Ltd.(b)

    2       49  

G City Ltd.

    184,122       638,363  

Ilex Medical Ltd.

    7,527       155,693  

Mehadrin Ltd.(b)

          14  

Meitav Investment House Ltd.(a)(b)

    106,343       389,668  

Migdal Insurance & Financial Holdings Ltd.

    264,410       326,983  
Security   Shares     Value  
Israel (continued)            

Naphtha Israel Petroleum Corp. Ltd.

    109,431     $ 541,106  

Neto ME Holdings Ltd.(b)

    1,351       28,636  

Oil Refineries Ltd.

    918,873       293,730  

Partner Communications Co. Ltd.(b)

    65,620       279,986  

Paz Oil Co. Ltd.(b)

    5,211       566,567  

Property & Building Corp. Ltd.(b)

    9,843       400,871  

Retailors Ltd.(a)

    53,075       1,147,927  

Scope Metals Group Ltd.(b)

    19,107       670,913  

Tamar Petroleum Ltd.(c)

    7,720       33,071  

Tel Aviv Stock Exchange Ltd.(b)

    76,814       409,083  

Telsys Ltd.

    4,053       273,937  
   

 

 

 
      7,851,477  
Italy — 2.8%            

A2A SpA

    292,202       557,509  

ACEA SpA

    88,587       1,085,355  

Ascopiave SpA

    199,755       501,683  

Banca Generali SpA

    12,545       469,943  

Banca Monte dei Paschi di Siena SpA(a)(b)

    196,281       566,840  

Banco BPM SpA

    345,084       1,726,817  

BasicNet SpA

    39,951       211,724  

BPER Banca

    211,721       732,619  

Cembre SpA

    10,808       385,022  

Credito Emiliano SpA

    14,668       125,398  

d’Amico International Shipping SA, NVS

    102,653       425,370  

De’ Longhi SpA

    12,931       328,118  

El.En. SpA

    57,707       685,571  

Enav SpA(c)

    214,809       923,660  

Esprinet SpA

    13,124       77,187  

Gruppo MutuiOnline SpA

    12,352       442,062  

Hera SpA

    59,637       185,175  

Immobiliare Grande Distribuzione SIIQ SpA

    39,758       109,825  

Iren SpA

    223,880       453,692  

Italgas SpA

    106,922       629,968  

Leonardo SpA

    61,567       833,578  

OVS SpA(c)

    184,122       505,952  

Piaggio & C SpA

    393,913       1,548,919  

RAI Way SpA(c)

    53,268       303,383  

Reply SpA

    4,632       501,818  

Safilo Group SpA(b)

    125,836       160,464  

Sanlorenzo SpA/Ameglia

    12,931       502,252  

Sesa SpA

    1,544       180,904  

SOL SpA

    23,932       674,935  

Technogym SpA(c)

    31,073       286,648  

Unieuro SpA(a)(c)

    50,373       537,536  

Unipol Gruppo SpA

    142,241       791,954  
   

 

 

 
       17,451,881  
Japan — 22.9%            

77 Bank Ltd. (The)

    57,900       1,233,769  

Adastria Co. Ltd.

    19,300       393,374  

ADEKA Corp.

    38,600       782,608  

Aichi Steel Corp.

    9,000       236,491  

Aiful Corp.

    19,300       48,499  

Alpen Co. Ltd.

    19,300       267,971  

Amano Corp.

    38,600       877,148  

Arata Corp.

    7,800       269,884  

ARE Holdings Inc.

    19,300       259,090  

ASAHI YUKIZAI Corp.

    12,200       378,447  

ASKUL Corp.

    38,600       538,566  

Base Co. Ltd.

    31,900       1,223,378  

BML Inc.

    10,300       217,691  

 

 

32  

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 Small-Cap  Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)            

Celsys Inc.

    19,300     $ 93,257  

Chugoku Marine Paints Ltd.

    77,200       669,201  

Citizen Watch Co. Ltd.

    38,600       252,281  

CKD Corp.

    19,300       293,528  

Colowide Co. Ltd.(a)

    19,300       286,586  

Comture Corp.

    7,600       108,055  

Cosmo Energy Holdings Co. Ltd.

    38,600       1,196,798  

Create Restaurants Holdings Inc.

    96,500       738,230  

Credit Saison Co. Ltd.

    19,300       308,616  

Cybozu Inc.

    9,100       142,545  

Dai-Dan Co. Ltd.

    19,300       403,984  

Daido Steel Co. Ltd.

    4,200       180,065  

Daishinku Corp.

    77,200       344,105  

Daiwa Industries Ltd.

    57,900       590,247  

Daiwa Securities Living Investments Corp.

    579       463,769  

Daiwabo Holdings Co. Ltd.

    57,900       1,122,090  

DeNA Co. Ltd.

    19,300       236,603  

Dexerials Corp.

    19,300       438,144  

Digital Arts Inc.

    7,300       288,884  

DMG Mori Co. Ltd.

    38,600       656,814  

DTS Corp.

    57,900        1,368,737  

Enigmo Inc.

    57,900       159,704  

Enplas Corp.

    6,900       295,494  

Fields Corp.

    38,600       828,239  

Financial Products Group Co. Ltd.

    96,500       931,522  

Frontier Real Estate Investment Corp.

    105       348,876  

Fuji Soft Inc.

    12,200       406,485  

Fujikura Ltd.

    115,800       968,225  

Fujimi Inc.

    77,800       1,886,622  

Fujimori Kogyo Co. Ltd.

    7,000       176,008  

Fukui Computer Holdings Inc.

    19,300       356,250  

Fullcast Holdings Co. Ltd.

    19,300       312,415  

Furuno Electric Co. Ltd.

    135,100       1,226,757  

Future Corp.

    38,600       421,094  

Fuyo General Lease Co. Ltd.

    16,000       1,320,309  

G-7 Holdings Inc.

    57,900       509,494  

Geo Holdings Corp.

    57,900       803,187  

Global One Real Estate Investment Corp.

    193       159,452  

GMO Financial Holdings Inc.

    135,100       693,206  

GMO GlobalSign Holdings KK

    19,300       413,276  

GMO internet group Inc.

    38,600       766,532  

Gree Inc.

    19,300       85,308  

GungHo Online Entertainment Inc.

    9,000       176,649  

Hachijuni Bank Ltd. (The)

    19,300       99,436  

Hanwa Co. Ltd.

    7,200       246,288  

Hazama Ando Corp.

    57,900       463,248  

Heiwa Real Estate Co. Ltd.

    38,600       1,078,544  

Hioki E.E. Corp.

    19,300       1,103,219  

Hitachi Zosen Corp.

    77,200       508,685  

Hokkaido Electric Power Co. Inc.(b)

    19,300       90,010  

Hoshino Resorts REIT Inc.

    79       346,111  

Hosiden Corp.

    19,300       249,561  

Idec Corp./Japan

    10,500       223,414  

Inabata & Co. Ltd.

    38,600       899,801  

Inageya Co. Ltd.

    19,300       203,654  

Ines Corp.

    19,300       195,848  

Infocom Corp.

    38,600       654,943  

Information Services International-Dentsu Ltd.

    44,000       1,560,395  

Insource Co. Ltd.

    77,200       682,347  
Security   Shares     Value  
Japan (continued)            

Integrated Design & Engineering Holdings Co. Ltd., NVS

    18,900     $ 454,170  

Inui Global Logistics Co. Ltd.(a)

    38,600       356,150  

IR Japan Holdings Ltd.

    19,300       224,320  

Ishihara Sangyo Kaisha Ltd.

    38,600       372,804  

Iyogin Holdings Inc., NVS

    77,200       545,298  

Jaccs Co. Ltd.

    9,600       352,207  

JAFCO Group Co. Ltd.

    57,900       757,013  

Japan Aviation Electronics Industry Ltd.

    19,800       402,153  

Japan Communications Inc.(b)

    212,300       363,017  

Japan Logistics Fund Inc.

    193       407,898  

Japan Petroleum Exploration Co. Ltd.

    29,500        1,013,926  

Japan Pulp & Paper Co. Ltd.

    26,400       858,667  

Japan Securities Finance Co. Ltd.

    77,200       655,655  

Japan Wool Textile Co. Ltd. (The)

    57,900       491,543  

JCR Pharmaceuticals Co. Ltd.

    38,600       366,804  

JCU Corp.

    19,300       459,830  

Justsystems Corp.

    6,700       190,688  

JVCKenwood Corp.

    57,900       191,111  

Kagome Co. Ltd.

    19,300       430,276  

Kamei Corp.

    96,500       1,012,163  

Kandenko Co. Ltd.

    57,900       507,882  

Kappa Create Co. Ltd.(b)

    38,600       418,956  

KeePer Technical Laboratory Co. Ltd.

    6,200       273,902  

Keihanshin Building Co. Ltd.

    96,500       858,210  

Kenedix Residential Next Investment Corp.

    50       78,231  

Kenedix Retail REIT Corp.

    193       377,713  

Ki-Star Real Estate Co. Ltd.

    7,100       258,876  

Kitz Corp.

    173,700       1,292,698  

Kokuyo Co. Ltd.

    38,600       619,236  

Komori Corp.

    38,600       301,031  

Konica Minolta Inc.

    19,300       71,538  

Konishi Co. Ltd.

    19,300       309,642  

Koshidaka Holdings Co. Ltd.

    38,600       321,267  

Kotobuki Spirits Co. Ltd.

    15,600       1,187,386  

KPP Group Holdings Co. Ltd.

    193,000       860,967  

K’s Holdings Corp.

    38,600       354,282  

Kurabo Industries Ltd.

    38,600       637,435  

Kyorin Pharmaceutical Co. Ltd.

    19,300       240,651  

Kyudenko Corp.

    7,500       216,288  

Kyushu Financial Group Inc.

    96,500       469,756  

LaSalle Logiport REIT

    1,544       1,651,789  

Life Corp.

    57,900       1,452,416  

Mani Inc.

    19,300       248,189  

Marudai Food Co. Ltd.

    38,600       417,814  

Maruichi Steel Tube Ltd.

    19,300       457,432  

Maruwa Co. Ltd./Aichi(a)

    7,300       1,212,358  

Maruzen Showa Unyu Co. Ltd.

    57,900       1,685,082  

Matsuda Sangyo Co. Ltd.

    19,300       316,350  

Medical Data Vision Co. Ltd.

    19,300       94,614  

Meitec Corp.

    38,600       703,690  

Menicon Co. Ltd.

    19,300       346,171  

Milbon Co. Ltd.

    5,300       190,699  

Mitsubishi Logistics Corp.

    6,300       158,250  

Mitsui High-Tec Inc.

    5,700       398,721  

Mitsui Matsushima Holdings Co. Ltd.(a)

    19,300       361,327  

Mitsui Mining & Smelting Co. Ltd.

    19,300       456,190  

Mitsuuroko Group Holdings Co. Ltd.

    18,000       170,412  

Mizuho Leasing Co. Ltd.

    3,900       133,935  

Mizuno Corp.

    5,800       152,049  

 

 

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

  33


Schedule of Investments (continued)

July 31, 2023

  

iShares® International Small-Cap  Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)            

Mochida Pharmaceutical Co. Ltd.

    19,300     $ 448,792  

Monex Group Inc.

    154,400       601,771  

Monogatari Corp. (The)

    19,300       472,547  

Mori Hills REIT Investment Corp.

    193       196,414  

Mori Trust Reit Inc.

    3,474       1,790,534  

Morinaga & Co. Ltd./Japan

    19,300       626,517  

MOS Food Services Inc.

    19,300       443,856  

m-up Holdings Inc.(a)

    115,800       915,100  

Nagase & Co. Ltd.

    57,900       995,526  

NEC Networks & System Integration Corp.

    19,300       254,492  

NET One Systems Co. Ltd.

    38,600       848,116  

Nichias Corp.

    19,300       396,778  

Nichiha Corp.

    9,100       209,346  

Nihon Parkerizing Co. Ltd.

    57,900       452,872  

Nippon Gas Co. Ltd.

    77,200        1,136,043  

Nippon Light Metal Holdings Co. Ltd.

    19,300       206,075  

Nippon Paper Industries Co. Ltd.(b)

    38,600       375,137  

Nippon Pillar Packing Co. Ltd.

    7,000       219,373  

NIPPON REIT Investment Corp.

    965       2,297,607  

Nippon Suisan Kaisha Ltd.

    193,000       919,124  

Nishimatsu Construction Co. Ltd.

    19,300       502,771  

Nishi-Nippon Financial Holdings Inc.

    115,800       1,233,545  

Nisshin Oillio Group Ltd. (The)

    7,000       187,895  

Nisshinbo Holdings Inc.

    19,300       165,867  

Nittetsu Mining Co. Ltd.

    31,500       1,127,148  

Nitto Kogyo Corp.

    19,300       493,826  

Nomura Co. Ltd.

    115,800       736,835  

Nomura Micro Science Co. Ltd.

    30,800       1,365,080  

North Pacific Bank Ltd.

    96,500       210,785  

NSD Co. Ltd.

    115,800       2,268,144  

NTT UD REIT Investment Corp.

    193       183,057  

Obara Group Inc.

    9,200       268,759  

Ohsho Food Service Corp.

    3,900       185,689  

Okamoto Machine Tool Works Ltd.

    19,300       779,158  

Okasan Securities Group Inc.

    135,100       538,294  

Okinawa Electric Power Co. Inc. (The)(b)

    19,336       156,867  

Okumura Corp.

    27,300       816,497  

Okuwa Co. Ltd.

    19,300       118,165  

Onward Holdings Co. Ltd.

    38,600       155,764  

Organo Corp.

    28,500       826,030  

Osaka Organic Chemical Industry Ltd.

    8,700       161,407  

Oyo Corp.

    19,300       357,240  

PAL GROUP Holdings Co. Ltd.

    19,300       566,401  

Pasona Group Inc.

    19,300       228,727  

Penta-Ocean Construction Co. Ltd.

    38,600       209,518  

Pharma Foods International Co. Ltd.

    115,800       1,367,078  

PHC Holdings Corp.

    19,300       204,679  

Press Kogyo Co. Ltd.

    154,400       691,680  

Raito Kogyo Co. Ltd.

    38,600       559,169  

Raksul Inc.(b)

    19,300       190,732  

Relo Group Inc.

    19,300       266,518  

Rengo Co. Ltd.

    38,600       245,850  

Riken Keiki Co. Ltd.

    11,400       431,296  

Riken Technos Corp.

    270,200       1,301,643  

Riken Vitamin Co. Ltd.

    38,600       563,843  

Riso Kagaku Corp.

    38,600       633,584  

Roland DG Corp.

    26,600       667,259  

Rorze Corp.

    4,200       328,503  

Round One Corp.(a)

    57,900       231,768  

Royal Holdings Co. Ltd.

    19,300       360,273  
Security   Shares     Value  
Japan (continued)            

Ryobi Ltd.

    19,300     $ 401,657  

Ryosan Co. Ltd.

    10,900       345,042  

Saibu Gas Holdings Co. Ltd.

    57,900       849,602  

Saizeriya Co. Ltd.

    30,400       966,648  

Sanki Engineering Co. Ltd.

    135,100       1,468,058  

Sanoh Industrial Co. Ltd.

    19,300       117,185  

Sanyo Denki Co. Ltd.

    4,300       218,106  

Senshu Electric Co. Ltd.

    57,900       1,633,368  

Shibaura Electronics Co. Ltd.

    10,400       524,360  

Shibaura Machine Co. Ltd.

    8,000       255,760  

Shibaura Mechatronics Corp.

    7,900        1,322,401  

Shiga Bank Ltd. (The)

    9,500       203,521  

Shin Nippon Biomedical Laboratories Ltd.

    57,900       854,294  

Shinmaywa Industries Ltd.

    19,300       194,877  

Shizuoka Gas Co. Ltd.

    38,600       298,390  

SHO-BOND Holdings Co. Ltd.

    10,800       438,642  

Shoei Co. Ltd.

    19,300       350,886  

SIGMAXYZ Holdings Inc.

    19,300       180,549  

Simplex Holdings Inc.

    4,900       98,933  

Skylark Holdings Co. Ltd.(b)

    19,300       249,732  

Star Micronics Co. Ltd.

    38,600       480,854  

Sumitomo Bakelite Co. Ltd.

    5,000       217,609  

Systena Corp.

    347,400       665,430  

Syuppin Co. Ltd.

    57,900       443,994  

Taihei Dengyo Kaisha Ltd.

    19,300       603,761  

Taiko Pharmaceutical Co. Ltd.(b)

    19,300       47,793  

Takara Holdings Inc.

    57,900       509,545  

Takara Standard Co. Ltd.

    38,600       505,719  

Tama Home Co. Ltd.

    63,900       1,576,129  

Tekken Corp.

    19,300       277,301  

Toagosei Co. Ltd.

    38,600       366,102  

TOC Co. Ltd.

    193,000       831,692  

Tocalo Co. Ltd.

    38,600       392,301  

Toda Corp.

    77,200       429,978  

Toho Titanium Co. Ltd.(a)

    38,600       551,326  

Tokai Carbon Co. Ltd.

    38,600       343,407  

TOKAI Holdings Corp.

    115,800       737,735  

Tokai Tokyo Financial Holdings Inc.

    57,900       178,499  

Tokyo Kiraboshi Financial Group Inc.

    8,300       219,643  

Tokyo Ohka Kogyo Co. Ltd.

    12,300       776,887  

Tokyu Construction Co. Ltd.

    38,600       208,877  

Tokyu REIT Inc.

    2,509       3,318,917  

Tomoku Co. Ltd.

    77,200       1,206,412  

Tomy Co. Ltd.

    57,900       783,311  

Topcon Corp.

    38,600       469,741  

Torii Pharmaceutical Co. Ltd.

    38,600       980,302  

Towa Pharmaceutical Co. Ltd.

    19,300       244,183  

Toyo Ink SC Holdings Co. Ltd.

    19,300       297,538  

Toyo Tanso Co. Ltd.

    6,600       264,603  

TSI Holdings Co. Ltd.

    154,400       783,483  

Tsugami Corp.

    38,600       338,781  

Uchida Yoko Co. Ltd.

    19,300       749,634  

Ulvac Inc.

    32,600       1,399,876  

United Super Markets Holdings Inc.

    96,500       759,511  

Usen-Next Holdings Co. Ltd.(a)

    19,300       446,414  

Ushio Inc.

    19,300       267,385  

ValueCommerce Co. Ltd.

    19,300       184,630  

Vital KSK Holdings Inc.

    38,600       269,486  

Wacom Co. Ltd.

    77,200       328,898  

Wakita & Co. Ltd.

    19,300       174,371  

 

 

34  

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 Small-Cap  Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)            

West Holdings Corp.

    6,000     $ 117,448  

YA-MAN Ltd.(a)

    38,600       276,562  

Yamazen Corp.

    19,300       164,216  

Yodogawa Steel Works Ltd.

    19,300       462,849  

Yonex Co. Ltd.

    57,900       565,922  

Yoshinoya Holdings Co. Ltd.

    19,300       381,778  

ZERIA Pharmaceutical Co. Ltd.

    19,300       316,108  
   

 

 

 
       141,511,507  
Netherlands — 3.0%            

Aalberts NV

    11,001       496,415  

ABN AMRO Bank NV, CVA(c)

    114,449       1,946,000  

Alfen Beheer BV(a)(b)(c)

    1,930       133,929  

Allfunds Group PLC

    27,213       177,427  

Arcadis NV

    5,790       253,845  

Ariston Holding NV

    23,932       222,742  

ASR Nederland NV

    52,496       2,379,613  

BE Semiconductor Industries NV

    29,143       3,479,633  

Corbion NV(a)

    22,388       526,123  

Eurocommercial Properties NV

    9,264       234,153  

Flow Trades Ltd., NVS

    12,352       268,769  

IMCD NV

    6,176       935,846  

InPost SA(a)(b)

    77,393       924,832  

Iveco Group NV(b)

    29,722       281,900  

Koninklijke BAM Groep NV

    181,227       421,688  

MFE-MediaForEurope NV, Class B

    437,338       337,396  

NSI NV

    20,651       434,134  

OCI NV

    29,915       852,571  

PostNL NV

    385,421       782,663  

Signify NV(c)

    76,235       2,396,940  

Technip Energies NV

    16,019       365,105  

TKH Group NV

    6,562       342,381  

TomTom NV(b)

    72,568       633,960  
   

 

 

 
      18,828,065  
New Zealand — 0.8%            

Argosy Property Ltd.

    458,568       347,476  

Chorus Ltd.

    268,849       1,436,323  

Genesis Energy Ltd.

    205,545       346,185  

Goodman Property Trust

    45,355       63,664  

Kiwi Property Group Ltd.

    706,766       417,371  

Manawa Energy Ltd.

    13,510       40,277  

Precinct Properties New Zealand Ltd.

    164,436       137,366  

Property for Industry Ltd.

    633,426       975,684  

Skellerup Holdings Ltd.

    355,120       984,306  

SKY Network Television Ltd.

    57,321       88,980  

SKYCITY Entertainment Group Ltd.

    165,015       231,629  
   

 

 

 
      5,069,261  
Norway — 1.5%            

2020 Bulkers Ltd.

    69,094       711,874  

ArcticZymes Technologies ASA(b)

    35,126       129,621  

Atea ASA

    35,705       484,754  

Bouvet ASA

    60,023       369,254  

BW LPG Ltd.(c)

    46,899       501,921  

BW Offshore Ltd.

    159,804       437,666  

Crayon Group Holding ASA(b)(c)

    41,109       437,713  

DNO ASA

    674,342       731,490  

Elmera Group ASA(c)

    92,640       185,877  

Europris ASA(c)

    9,264       56,201  

Hoegh Autoliners ASA

    41,688       241,242  

Kid ASA(c)

    68,322       548,730  
Security   Shares     Value  
Norway (continued)            

Norske Skog ASA(b)(c)

    48,250     $ 216,324  

PGS ASA(b)

    183,543       129,067  

Rana Gruber ASA(a)

    118,695       679,296  

Selvaag Bolig ASA

    179,490       568,485  

Solstad Offshore ASA(b)

    105,571       250,488  

SpareBank 1 SMN

    162,313       2,274,564  

Veidekke ASA

    12,352       139,424  

XXL ASA(a)(c)

    676,851       103,514  
   

 

 

 
      9,197,505  
Portugal — 0.4%            

Altri SGPS SA(a)

    57,900       272,255  

CTT-Correios de Portugal SA

    161,348       636,886  

Greenvolt Energias Renovaveis SA(a)(b)

    13,510       94,388  

REN - Redes Energeticas Nacionais SGPS SA

    320,573       875,368  

Semapa-Sociedade de Investimento e Gestao

    36,284       526,604  
   

 

 

 
      2,405,501  
Singapore — 1.8%            

AEM Holdings Ltd.

    38,600       109,498  

Asian Pay Television Trust

    2,200,200       168,769  

Best World International Ltd.(b)

    752,700       918,155  

CDL Hospitality Trusts

    559,700       500,962  

Delfi Ltd.

    849,200       772,945  

Digital Core REIT Management Pte Ltd.

    882,000       441,394  

Golden Agri-Resources Ltd.

    7,662,100       1,442,843  

Golden Energy & Resources Ltd.(b)

    1,451,400       196,505  

Hour Glass Ltd. (The)

    57,900       90,538  

Keppel Infrastructure Trust

    2,393,200       917,007  

Manulife US Real Estate Investment Trust

    1,210,800       127,086  

NetLink NBN Trust

    1,852,800       1,198,471  

PARAGON REIT

    617,600       443,753  

Parkway Life REIT

    675,500       1,971,453  

Riverstone Holdings Ltd./Singapore(a)

    579,000       272,519  

Samudera Shipping Line Ltd.(a)

    810,600       509,687  

Sasseur Real Estate Investment Trust

    733,400       394,793  

Sheng Siong Group Ltd.

    212,300       261,874  

Silverlake Axis Ltd.

    347,400       75,798  

TDCX Inc., ADR(b)

    35,705       256,005  

Yangzijiang Financial Holding Ltd.(a)

    270,200       67,078  

Yanlord Land Group Ltd.(b)

    521,100       317,691  
   

 

 

 
       11,454,824  
Spain — 2.1%            

Acerinox SA

    214,616       2,259,350  

Applus Services SA

    50,180       538,307  

Atresmedia Corp. de Medios de Comunicacion SA

    103,448       428,816  

Banco de Sabadell SA

    2,049,081       2,525,232  

Bankinter SA

    148,803       962,762  

Cia. de Distribucion Integral Logista Holdings SA

    11,194       311,474  

eDreams ODIGEO SA(b)

    27,213       199,761  

Ence Energia y Celulosa SA

    62,339       189,848  

Fluidra SA

    11,387       251,826  

Gestamp Automocion SA(c)

    105,571       512,547  

Indra Sistemas SA

    29,915       435,072  

Inmobiliaria Colonial SOCIMI SA

    24,704       159,471  

Lar Espana Real Estate SOCIMI SA

    136,258       882,415  

Merlin Properties SOCIMI SA

    32,038       298,561  

Metrovacesa SA(c)

    28,757       231,446  

Neinor Homes SA(c)

    20,072       198,623  

Pharma Mar SA

    13,124       493,429  

Prosegur Cia. de Seguridad SA

    92,254       169,667  

 

 

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

  35


Schedule of Investments (continued)

July 31, 2023

  

iShares® International Small-Cap  Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Spain (continued)            

Sacyr SA

    151,845     $ 519,114  

Solaria Energia y Medio Ambiente SA(b)

    9,071       141,882  

Tubacex SA(a)

    95,342       305,659  

Unicaja Banco SA(a)(c)

    811,565       947,234  

Viscofan SA

    2,316       150,357  
   

 

 

 
       13,112,853  
Sweden — 3.2%            

AcadeMedia AB(c)

    13,896       66,996  

Alleima AB, NVS

    59,251       257,380  

Arise AB

    77,393       310,144  

Arjo AB, Class B

    139,539       597,018  

Betsson AB

    96,500       1,167,643  

Bilia AB, Class A

    136,592       1,435,487  

BioArctic AB, Class B(b)(c)

    9,071       259,915  

BioGaia AB, Class B

    43,039       426,857  

Biotage AB

    38,986       481,230  

Bonava AB, Class B(a)

    151,505       285,059  

BoneSupport Holding AB(b)(c)

    26,055       364,718  

Bravida Holding AB(c)

    21,423       172,179  

Byggmax Group AB(b)

    20,844       68,355  

Clas Ohlson AB, Class B

    92,061       749,842  

Concentric AB

    42,653       760,316  

Electrolux Professional AB, Class B

    55,391       312,061  

Engcon AB

    31,652       233,613  

Fasadgruppen Group AB

    18,914       148,237  

Hemnet Group AB

    25,669       454,787  

HMS Networks AB

    3,667       148,077  

Intrum AB(a)

    13,896       108,267  

Investment AB Oresund

    41,688       414,121  

Inwido AB

    50,952       562,252  

Irlab Therapeutics AB(b)

    173,121       130,913  

JM AB

    15,826       248,657  

Lindab International AB

    22,002       341,112  

Loomis AB, Class B

    3,860       112,606  

MIPS AB

    12,352       559,235  

Mycronic AB

    46,706       1,005,101  

Net Insight AB(a)(b)

    814,267       349,351  

New Wave Group AB, Class B

    158,646       1,438,745  

Nobia AB(b)

    550,436       595,058  

Nordic Waterproofing Holding AB

    4,439       61,484  

Norva24 Group AB(b)

    24,704       62,763  

Nyfosa AB

    96,500       612,182  

Orron Energy AB(b)

    838,778       969,645  

OX2 AB, Class B(b)

    36,091       225,788  

Peab AB, Class B

    19,300       85,376  

Ratos AB, Class B

    19,686       65,444  

Scandic Hotels Group AB(b)(c)

    159,804       630,183  

SkiStar AB

    9,264       100,588  

Swedish Logistic Property AB(b)

    46,706       125,790  

SynAct Pharma AB(b)

    20,844       180,591  

Thule Group AB(c)

    9,843       307,362  

Truecaller AB(a)(b)

    145,715       577,219  

Volati AB

    24,897       234,406  

Wihlborgs Fastigheter AB

    96,886       757,633  
   

 

 

 
      19,561,786  
Switzerland — 6.7%            

Accelleron Industries AG, NVS

    52,882       1,393,198  

Adecco Group AG, Registered

    28,371       1,156,241  

Ascom Holding AG, Registered(a)

    21,809       298,606  

Bachem Holding AG, Class A

    2,702       249,587  
Security   Shares     Value  
Switzerland (continued)            

Banque Cantonale Vaudoise, Registered

    17,177     $ 1,927,970  

Belimo Holding AG, Registered

    965       520,086  

BKW AG

    9,650       1,726,812  

Bucher Industries AG, Registered

    2,702       1,204,046  

Burckhardt Compression Holding AG

    193       113,743  

Cembra Money Bank AG

    5,597       424,825  

Clariant AG, Registered

    65,620       1,075,261  

Comet Holding AG, Registered

    772       203,093  

dormakaba Holding AG

    579       282,310  

Dottikon Es Holding AG(b)

    1,351       371,062  

Dufry AG, Registered(b)

    1,351       69,804  

Emmi AG, Registered

    193       188,880  

Flughafen Zurich AG, Registered

    965       204,288  

Forbo Holding AG, Registered

    386       555,289  

Galenica AG(c)

    37,442       3,013,335  

Georg Fischer Ltd.

    8,878       606,334  

Helvetia Holding AG, Registered

    12,545       1,856,447  

Idorsia Ltd.(a)(b)

    25,862       205,122  

Implenia AG, Registered

    5,597       272,618  

Inficon Holding AG, Registered

    1,351       1,732,026  

Interroll Holding AG, Registered

    244       780,486  

Landis+Gyr Group AG

    7,141       620,048  

LEM Holding SA, Registered

    193       464,767  

Logitech International SA, Registered

    52,689       3,725,056  

Medmix AG(c)

    16,984       474,038  

Mobilezone Holding AG, Registered

    4,053       67,547  

Mobimo Holding AG, Registered

    632       186,893  

Molecular Partners AG(b)

    8,878       55,385  

PSP Swiss Property AG, Registered

    11,966       1,410,073  

Schweiter Technologies AG, NVS(a)

    193       148,562  

SFS Group AG

    2,316       275,321  

Siegfried Holding AG, Registered

    386       341,042  

SIG Group AG

    53,075       1,418,889  

SKAN Group AG

    2,509       229,968  

Swiss Prime Site AG, Registered

    9,264       896,842  

Swissquote Group Holding SA, Registered

    12,545       2,841,347  

Tecan Group AG, Registered

    4,053       1,612,815  

Temenos AG, Registered

    14,282       1,228,291  

VAT Group AG(c)

    8,299       3,527,465  

Vontobel Holding AG, Registered(a)

    11,001       741,111  

Zehnder Group AG, Registered

    8,299       607,829  
   

 

 

 
       41,304,758  
United Kingdom — 14.1%            

4imprint Group PLC

    1,737       98,864  

888 Holdings PLC(b)

    454,708       630,711  

Abcam PLC, SP ADR(a)(b)

    34,740       814,306  

abrdn PLC

    645,778       1,921,815  

AG Barr PLC

    7,527       45,546  

Airtel Africa PLC(c)

    395,457       591,756  

AJ Bell PLC

    228,898       962,933  

Ashmore Group PLC

    92,833       246,180  

B&M European Value Retail SA

    167,910       1,192,650  

Babcock International Group PLC(b)

    21,037       101,275  

Beazley PLC

    165,787       1,168,078  

Bellway PLC

    36,091       1,026,302  

Big Yellow Group PLC

    5,018       69,059  

Bodycote PLC

    9,264       82,272  

Bridgepoint Group PLC(c)

    189,333       458,990  

British Land Co. PLC (The)

    540,786       2,346,578  

Britvic PLC

    122,169       1,356,059  

 

 

36  

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 Small-Cap  Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United Kingdom (continued)            

Bytes Technology Group PLC

    134,135     $ 888,253  

Capital & Counties Properties PLC

    789,177        1,213,322  

Capricorn Energy PLC

    92,833       211,111  

Centamin PLC

    185,087       228,537  

Centrica PLC

    1,570,634       2,783,399  

Chemring Group PLC

    178,139       648,122  

Close Brothers Group PLC

    4,825       57,095  

Coats Group PLC

    85,885       77,154  

Computacenter PLC

    58,672       1,655,247  

ConvaTec Group PLC(c)

    431,162       1,155,144  

Currys PLC

    463,393       317,270  

Darktrace PLC(b)

    258,813       1,227,435  

Dechra Pharmaceuticals PLC

    1,351       64,405  

Deliveroo PLC, Class A(b)(c)

    446,602       753,114  

Derwent London PLC

    9,457       256,989  

Diploma PLC

    30,880       1,284,369  

Domino’s Pizza Group PLC

    397,387       1,771,693  

Dr. Martens PLC

    75,077       146,865  

Drax Group PLC

    148,031       1,148,972  

Dunelm Group PLC

    58,286       860,215  

EnQuest PLC(b)

    315,191       72,046  

FDM Group Holdings PLC

    45,355       317,806  

Ferrexpo PLC

    584,790       688,950  

Firstgroup PLC

    837,427       1,568,400  

Frasers Group PLC(b)

    76,042       792,566  

Games Workshop Group PLC

    8,106       1,211,897  

Genuit Group PLC

    43,618       175,208  

Genus PLC

    10,422       329,666  

Grafton Group PLC

    56,549       635,659  

Grainger PLC

    52,303       169,016  

Great Portland Estates PLC

    86,657       475,539  

Greggs PLC

    55,391       1,964,371  

Halfords Group PLC

    414,178       1,175,756  

Hammerson PLC

    1,432,253       488,930  

Harbour Energy PLC

    54,426       186,325  

Hargreaves Lansdown PLC

    31,845       348,422  

Helical PLC

    63,304       218,539  

Hill & Smith PLC

    38,021       770,361  

Hiscox Ltd.

    38,793       536,952  

Hochschild Mining PLC

    161,155       159,685  

Howden Joinery Group PLC

    97,851       926,547  

IG Group Holdings PLC

    84,799       770,533  

IMI PLC

    7,720       161,405  

Immunocore Holdings PLC(a)(b)

    4,053       267,417  

Inchcape PLC

    233,144       2,451,978  

Indivior PLC, NVS(b)

    85,113       1,914,797  

Intermediate Capital Group PLC

    99,781       1,800,850  

International Distributions Services PLC(b)

    632,847       2,161,661  

Investec PLC

    276,183       1,735,335  

IWG PLC(b)

    73,726       144,668  

Johnson Matthey PLC

    20,458       473,139  

Just Group PLC

    72,761       76,850  

Kainos Group PLC

    69,094       1,162,643  

Keller Group PLC

    51,338       563,972  

Man Group PLC/Jersey

    818,320       2,508,634  

Marks & Spencer Group PLC(b)

    391,404       1,036,792  

Marshalls PLC

    172,349       593,700  

Moneysupermarket.com Group PLC

    430,004       1,514,264  

Moonpig Group PLC(b)

    96,307       221,854  

Morgan Advanced Materials PLC

    121,976       427,941  
Security   Shares     Value  
United Kingdom (continued)            

Morgan Sindall Group PLC

    23,932     $ 586,993  

Ninety One PLC

    244,724       541,450  

OSB Group PLC

    154,207       728,815  

Oxford Instruments PLC

    23,932       737,115  

Pagegroup PLC

    75,849       434,326  

Paragon Banking Group PLC

    173,507       1,175,698  

Patisserie Holdings PLC, NVS(d)

    3,062        

Pets at Home Group PLC

    261,515       1,314,164  

Picton Property Income Ltd.

    308,607       279,791  

Playtech PLC(b)

    67,357       484,943  

Plus500 Ltd.

    30,687       593,095  

PureTech Health PLC(b)

    110,975       318,308  

QinetiQ Group PLC

    123,713       512,245  

Quilter PLC(c)

    183,026       183,717  

Reach PLC

    77,586       84,585  

Redrow PLC

    28,950       192,456  

Renewi PLC(b)

    8,106       54,164  

Renishaw PLC

    4,246       212,515  

RS GROUP PLC

    165,401       1,666,080  

Safestore Holdings PLC

    152,856       1,737,644  

Savills PLC

    59,444       743,040  

Serco Group PLC

    44,776       89,240  

Softcat PLC

    100,939       1,944,851  

Spectris PLC

    21,809       984,186  

Spire Healthcare Group PLC(c)

    137,802       381,108  

Spirent Communications PLC

    451,620       981,533  

SSP Group PLC(b)

    125,450       405,066  

SThree PLC

    95,921       434,303  

Synthomer PLC(b)

    82,797       88,672  

TBC Bank Group PLC

    5,983       191,189  

Telecom Plus PLC

    48,829       1,042,740  

TI Fluid Systems PLC(c)

    186,824       321,279  

Trainline PLC(b)(c)

    41,688       140,920  

TUI AG(a)(b)

    6,948       56,282  

Tullow Oil PLC(a)(b)

    325,784       144,159  

UNITE Group PLC (The)

    8,878       110,847  

Vesuvius PLC

    35,898       203,260  

Virgin Money U.K. PLC

    104,413       236,851  

Vistry Group PLC

    70,252       712,549  

Watches of Switzerland Group PLC(b)(c)

    15,826       153,038  

Weir Group PLC (The)

    44,583       1,050,006  

WH Smith PLC

    15,826       303,397  

Wickes Group PLC

    559,893       981,523  

Workspace Group PLC

    79,323       505,534  
   

 

 

 
       87,106,836  
United States — 0.1%            

AMTD Digital Inc., NVS(a)(b)

    25,283       167,373  

Gran Tierra Energy Inc., NVS

    10,229       72,685  

Lions Gate Entertainment Corp., Class A(a)(b)

    13,317       102,275  
   

 

 

 
      342,333  
   

 

 

 

Total Common Stocks — 98.6%
(Cost: $574,301,085)

      610,582,871  
   

 

 

 
Preferred Stocks            
Germany — 0.8%            

Draegerwerk AG & Co. KGaA, Preference Shares, NVS

    9,457       475,018  

Fuchs Petrolub SE, Preference Shares, NVS

    20,844       862,811  

Jungheinrich AG, Preference Shares, NVS

    18,528       693,201  

 

 

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

  37


Schedule of Investments (continued)

July 31, 2023

  

iShares® International Small-Cap  Equity Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Germany (continued)            

Schaeffler AG, Preference Shares, NVS

    167,910     $ 1,070,756  

STO SE & Co. KGaA, Preference Shares, NVS

    9,650       1,592,831  
   

 

 

 
      4,694,617  
   

 

 

 

Total Preferred Stocks — 0.8%
(Cost: $4,726,075)

 

    4,694,617  
   

 

 

 

Total Long-Term Investments — 99.4%
(Cost: $579,027,160)

 

    615,277,488  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 2.9%            

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

    18,074,965       18,080,388  

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

    110,000       110,000  
   

 

 

 

Total Short-Term Securities — 2.9%
(Cost: $18,188,385)

 

    18,190,388  
   

 

 

 

Total Investments — 102.3%
(Cost: $597,215,545)

 

    633,467,876  

Liabilities in Excess of Other Assets — (2.3)%

 

    (14,482,656
   

 

 

 

Net Assets — 100.0%

    $  618,985,220  
   

 

 

 
(a) 

All or a portion of this security is on loan.

(b) 

Non-income producing security.

(c) 

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

(d) 

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

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

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

 

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

  $ 3,998,368     $ 14,080,446 (a)    $     $ 22     $ 1,552     $ 18,080,388       18,074,965     $ 237,946 (b)    $     
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    100,000       10,000 (a)                         110,000       110,000       13,687           
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

    
          $ 22     $ 1,552     $ 18,190,388       $ 251,633     $     
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

    

 

  (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

           

TOPIX Index

     7        09/07/23      $ 1,147      $ 41,922  

FTSE 250 Index

     68        09/15/23        3,354        75,856  
           

 

 

 
            $ 117,778  
           

 

 

 

 

 

38  

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 Small-Cap  Equity Factor ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

               
     

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)

   $      $      $ 117,778      $      $      $      $ 117,778  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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).

 

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

   $      $      $ 504,955      $      $      $      $ 504,955  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 56,034      $      $      $      $ 56,034  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments 

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 3,510,176  

 

 

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

  $ 133,046,505        $ 477,370,275       $ 166,091       $ 610,582,871  

Preferred Stocks

             4,694,617                 4,694,617  

Short-Term Securities

              

Money Market Funds

    18,190,388                          18,190,388  
 

 

 

      

 

 

     

 

 

     

 

 

 
  $ 151,236,893               $ 482,064,892              $ 166,091              $ 633,467,876  
 

 

 

      

 

 

     

 

 

     

 

 

 

Derivative Financial Instruments(a)

              

Assets

              

Equity Contracts

  $        $ 117,778       $       $ 117,778  
 

 

 

      

 

 

     

 

 

     

 

 

 

 

  (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

  39


Schedule of Investments

July 31, 2023

  

iShares® MSCI EAFE Min Vol Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Australia — 4.5%  

Brambles Ltd.

    2,473,574     $ 23,401,913  

Cochlear Ltd.

    33,409       5,374,583  

Coles Group Ltd.

    1,559,718       19,073,160  

Commonwealth Bank of Australia

    325,737       23,175,784  

CSL Ltd.

    201,745       36,337,531  

Insurance Australia Group Ltd.

    3,029,851       12,095,198  

Medibank Pvt Ltd.

    14,391,324       33,976,559  

Sonic Healthcare Ltd.

    611,366       14,445,230  

Telstra Corp. Ltd.

    8,347,967       23,893,642  

Transurban Group

    2,459,407       23,745,682  

Washington H Soul Pattinson & Co. Ltd.

    227,125       5,039,364  

Wesfarmers Ltd.

    2,324,246       77,658,015  

Woolworths Group Ltd.

    1,819,976       47,262,655  
   

 

 

 
       345,479,316  
Belgium — 2.5%            

Anheuser-Busch InBev SA/NV

    253,597       14,507,180  

Argenx SE(a)

    98,468       49,592,366  

Groupe Bruxelles Lambert NV

    785,503       63,556,871  

UCB SA

    702,395       62,195,156  
   

 

 

 
      189,851,573  
Denmark — 3.0%            

Carlsberg AS, Class B

    155,633       23,342,167  

Chr Hansen Holding A/S

    403,841       30,515,691  

Genmab A/S(a)

    84,731       34,926,082  

Novo Nordisk A/S, Class B

    683,409       110,201,200  

Novozymes A/S, Class B

    203,781       10,220,287  

Tryg A/S

    1,328,646       26,232,520  
   

 

 

 
      235,437,947  
Finland — 2.5%            

Elisa OYJ

    1,204,901       62,854,155  

Kone OYJ, Class B

    940,392       48,235,339  

Nokia OYJ

    2,071,071       8,141,254  

Orion OYJ, Class B

    824,093       31,670,803  

Sampo OYJ, Class A

    924,086       40,721,354  
   

 

 

 
      191,622,905  
France — 7.3%            

Air Liquide SA

    351,298       63,161,272  

BioMerieux

    77,025       8,268,581  

Carrefour SA

    2,222,328       44,426,851  

Danone SA

    601,965       36,760,037  

Dassault Aviation SA

    126,890       24,649,819  

Edenred

    92,725       6,022,522  

Getlink SE

    667,692       11,736,265  

Hermes International

    1,231       2,724,529  

Ipsen SA

    186,511       23,505,386  

La Francaise des Jeux SAEM(b)

    433,104       16,534,769  

L’Oreal SA

    20,380       9,478,930  

Orange SA

    7,811,573       88,300,731  

Pernod Ricard SA

    164,870       36,349,145  

Sanofi

    1,044,936       111,478,496  

Thales SA

    274,910       41,123,727  

TotalEnergies SE

    595,344       36,171,022  
   

 

 

 
      560,692,082  
Germany — 3.0%            

Beiersdorf AG

    382,136       49,488,654  

Deutsche Boerse AG

    148,221       28,399,369  

Deutsche Telekom AG, Registered

    2,570,031       56,029,846  
Security   Shares     Value  
Germany (continued)            

Hannover Rueck SE

    18,621     $ 3,973,239  

Henkel AG & Co. KGaA

    273,950       19,144,238  

Merck KGaA

    180,876       31,784,423  

Symrise AG, Class A

    343,065       37,473,588  

Telefonica Deutschland Holding AG

    1,636,994       4,410,683  
   

 

 

 
      230,704,040  
Hong Kong — 7.3%            

BOC Hong Kong Holdings Ltd.

    16,342,000       49,876,476  

CK Hutchison Holdings Ltd.

    5,171,000       31,891,246  

CK Infrastructure Holdings Ltd.

    5,290,000       28,033,517  

CLP Holdings Ltd.

    9,613,500       78,360,900  

Hang Seng Bank Ltd.

    6,935,400       106,011,450  

HKT Trust & HKT Ltd., Class SS

    34,276,349       40,487,203  

Hong Kong & China Gas Co. Ltd.

    19,511,799       16,738,338  

Jardine Matheson Holdings Ltd.

    683,700       33,771,639  

Link REIT

    3,137,820       17,638,174  

MTR Corp. Ltd.

    15,474,248       71,309,955  

Power Assets Holdings Ltd.

    13,712,000       71,867,634  

Sun Hung Kai Properties Ltd.

    1,301,500       16,342,439  
   

 

 

 
       562,328,971  
Ireland — 0.5%            

Kerry Group PLC, Class A

    385,733       38,322,903  
   

 

 

 
Israel — 1.9%            

Bank Hapoalim BM

    3,917,250       34,796,294  

Bank Leumi Le-Israel BM

    2,474,639       19,754,099  

Check Point Software Technologies Ltd.(a)(c)

    257,271       34,013,799  

Elbit Systems Ltd.

    106,389       22,622,128  

ICL Group Ltd.

    2,002,669       13,334,750  

Isracard Ltd.

    1       4  

Mizrahi Tefahot Bank Ltd.

    339,882       12,271,412  

Tower Semiconductor Ltd.(a)(c)

    337,847       12,529,816  
   

 

 

 
      149,322,302  
Italy — 2.4%            

Eni SpA

    923,963       14,106,021  

Ferrari NV

    191,535       61,403,564  

Infrastrutture Wireless Italiane SpA(b)

    1,434,224       17,986,307  

Recordati Industria Chimica e Farmaceutica SpA

    694,862       35,882,726  

Snam SpA

    7,236,877       38,042,555  

Terna - Rete Elettrica Nazionale

    1,929,519       16,302,512  
   

 

 

 
      183,723,685  
Japan — 27.0%            

Astellas Pharma Inc.

    1,390,200       20,327,987  

Bandai Namco Holdings Inc.

    381,500       8,631,269  

Bridgestone Corp.

    486,600       20,191,659  

Canon Inc.

    2,438,100       63,013,628  

Central Japan Railway Co.

    477,400       60,836,621  

Chiba Bank Ltd. (The)

    3,325,200       23,380,642  

Chubu Electric Power Co. Inc.

    3,307,400       41,434,423  

Chugai Pharmaceutical Co. Ltd.

    1,029,900       30,651,101  

Concordia Financial Group Ltd.

    3,750,200       17,153,491  

Daiichi Sankyo Co. Ltd.

    102,800       3,166,200  

East Japan Railway Co.

    764,000       43,253,189  

ENEOS Holdings Inc.

    7,705,600       27,956,984  

Fast Retailing Co. Ltd.

    25,900       6,488,279  

FUJIFILM Holdings Corp.

    324,200       18,824,876  

Hankyu Hanshin Holdings Inc.

    331,200       11,003,417  

Hikari Tsushin Inc.

    45,000       6,677,418  

Hirose Electric Co. Ltd.

    296,000       37,490,655  

Idemitsu Kosan Co. Ltd.

    1,334,800       28,186,737  

 

 

40  

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® MSCI EAFE Min Vol Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)            

ITOCHU Corp.

    1,757,600     $ 71,086,655  

Itochu Techno-Solutions Corp.

    380,300       9,638,376  

Japan Post Bank Co. Ltd.

    4,094,000       34,060,206  

Japan Post Holdings Co. Ltd.

    4,908,500       35,844,741  

Japan Tobacco Inc.

    1,773,900       39,362,120  

Kao Corp.

    189,400       7,195,608  

KDDI Corp.

    1,323,300       38,946,966  

Keio Corp.

    425,400       14,140,552  

Keisei Electric Railway Co. Ltd.

    247,100       10,255,946  

Kintetsu Group Holdings Co. Ltd.

    1,004,000       33,680,791  

Kirin Holdings Co. Ltd.

    386,900       5,714,682  

Kobayashi Pharmaceutical Co. Ltd.

    66,700       3,666,587  

Kyowa Kirin Co. Ltd.

    1,251,700       23,902,058  

McDonald’s Holdings Co. Japan Ltd.(c)

    854,200       33,624,011  

MEIJI Holdings Co. Ltd.

    1,477,700       34,140,624  

Mitsubishi Corp.

    448,400       22,943,039  

Mitsubishi UFJ Financial Group Inc.

    2,822,100       22,724,249  

Mizuho Financial Group Inc.

    5,247,920       89,032,874  

MS&AD Insurance Group Holdings Inc.

    212,500       7,903,579  

NEC Corp.

    524,700       26,547,408  

Nippon Express Holdings Inc.

    68,800       4,033,827  

Nippon Shinyaku Co. Ltd.

    183,800       7,432,802  

Nippon Telegraph & Telephone Corp.

    62,718,500       71,920,432  

Nissin Foods Holdings Co. Ltd.

    517,800       43,658,593  

Nitori Holdings Co. Ltd.

    241,800       29,609,037  

Nomura Research Institute Ltd.

    249,000       7,075,314  

Obayashi Corp.

    1,863,300       17,227,760  

Obic Co. Ltd.

    203,500       33,300,765  

Odakyu Electric Railway Co. Ltd.

    777,400       11,358,141  

Ono Pharmaceutical Co. Ltd.

    2,037,700       37,341,504  

Oracle Corp. Japan

    160,600       11,257,836  

Oriental Land Co. Ltd./Japan

    734,500       28,170,671  

Osaka Gas Co. Ltd.

    1,995,600       31,400,446  

Otsuka Corp.

    366,500       15,262,286  

Otsuka Holdings Co. Ltd.

    2,651,200       97,477,476  

Pan Pacific International Holdings Corp.

    1,378,900       27,263,055  

Secom Co. Ltd.

    687,700       46,148,000  

Sekisui Chemical Co. Ltd.

    790,300       12,004,263  

Sekisui House Ltd.

    1,673,400       34,140,194  

SG Holdings Co. Ltd.

    1,224,200       17,865,370  

Shimizu Corp.

    757,400       5,218,134  

Shionogi & Co. Ltd.

    213,300       8,938,982  

Shizuoka Financial Group Inc., NVS

    4,317,700       36,061,881  

SoftBank Corp.

    7,448,200       82,708,530  

Sumitomo Mitsui Financial Group Inc.

    309,800       14,514,640  

Suntory Beverage & Food Ltd.

    1,036,800       36,906,980  

Takeda Pharmaceutical Co. Ltd.

    2,233,400       68,285,850  

Tobu Railway Co. Ltd.

    1,371,600       36,295,295  

Tokio Marine Holdings Inc.

    772,100       17,754,425  

Tokyo Gas Co. Ltd.

    1,214,900       27,549,143  

Tokyu Corp.

    1,659,100       21,050,126  

Trend Micro Inc./Japan

    200,300       9,463,320  

USS Co. Ltd.

    2,020,700       35,039,102  

Welcia Holdings Co. Ltd.

    940,300       17,699,977  

West Japan Railway Co.

    407,700       16,750,086  

Yakult Honsha Co. Ltd.

    408,500       22,665,962  

Yamato Holdings Co. Ltd.

    608,400       11,394,097  
   

 

 

 
       2,085,323,950  
Netherlands — 4.5%            

Davide Campari-Milano NV

    521,729       7,016,671  

Security   Shares     Value  
Netherlands (continued)            

Heineken Holding NV

    152,559     $ 12,506,044  

Heineken NV

    262,829       25,726,087  

JDE Peet’s NV

    818,086       24,681,892  

Koninklijke Ahold Delhaize NV

    3,450,032       118,917,835  

Koninklijke KPN NV

    11,720,692       42,408,460  

OCI NV

    196,603       5,603,141  

QIAGEN NV(a)

    1,357,406       63,691,588  

Wolters Kluwer NV

    387,288       48,634,079  
   

 

 

 
      349,185,797  
New Zealand — 0.6%            

Auckland International Airport Ltd.(a)

    3,798,088       19,826,965  

Fisher & Paykel Healthcare Corp. Ltd.

    521,638       7,963,872  

Spark New Zealand Ltd.

    6,262,956       20,163,873  
   

 

 

 
      47,954,710  
Norway — 0.1%            

Telenor ASA

    437,310       4,681,378  
   

 

 

 
Portugal — 0.7%            

Jeronimo Martins SGPS SA

    1,993,806       54,282,924  
   

 

 

 
Singapore — 4.5%            

DBS Group Holdings Ltd.

    2,977,000       76,797,784  

Genting Singapore Ltd.

    33,886,400       23,968,713  

Oversea-Chinese Banking Corp. Ltd.(c)

    5,961,999       59,666,202  

Singapore Exchange Ltd.

    7,587,700       55,464,503  

Singapore Technologies Engineering Ltd.

    14,592,300       40,967,936  

Singapore Telecommunications Ltd.

    5,689,500       11,413,507  

United Overseas Bank Ltd.

    3,157,700       71,627,631  

Venture Corp. Ltd.(c)

    917,200       10,340,435  
   

 

 

 
      350,246,711  
Spain — 3.2%            

Aena SME SA(b)

    114,486       18,282,515  

Enagas SA

    342,777       6,083,100  

Endesa SA

    1,151,636       24,682,839  

Iberdrola SA

    2,764,058       34,499,677  

Industria de Diseno Textil SA

    2,535,329       97,046,863  

Naturgy Energy Group SA

    552,503       16,846,212  

Redeia Corp. SA

    2,348,586       39,281,652  

Repsol SA

    836,613       12,772,922  
   

 

 

 
       249,495,780  
Sweden — 0.1%            

Swedish Orphan Biovitrum AB(a)(c)

    264,958       5,186,042  
   

 

 

 
Switzerland — 14.1%            

Alcon Inc.

    71,208       6,059,204  

Baloise Holding AG, Registered

    152,627       23,624,954  

Banque Cantonale Vaudoise, Registered

    298,068       33,455,565  

Barry Callebaut AG, Registered

    19,143       35,893,120  

BKW AG

    192,276       34,406,684  

Chocoladefabriken Lindt & Spruengli AG, Participation Certificates, NVS

    938       11,471,956  

EMS-Chemie Holding AG, Registered

    69,532       58,034,872  

Geberit AG, Registered

    30,855       17,510,272  

Givaudan SA, Registered

    9,265       31,273,733  

Helvetia Holding AG, Registered

    29,193       4,320,068  

Holcim Ltd.

    63,955       4,457,466  

Kuehne + Nagel International AG, Registered

    153,068       47,894,355  

Lonza Group AG, Registered

    6,071       3,527,469  

Nestle SA, Registered

    890,571       109,111,982  

Novartis AG, Registered

    1,139,959       119,350,439  

 

 

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

  41


Schedule of Investments (continued)

July 31, 2023

  

iShares® MSCI EAFE Min Vol Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Switzerland (continued)            

Roche Holding AG, Bearer

    216,840     $ 71,897,864  

Roche Holding AG, NVS

    323,077       100,170,457  

Schindler Holding AG, Registered

    199,822       46,331,052  

SGS SA

    565,324       54,890,139  

Swatch Group AG (The), Registered

    149,157       8,957,285  

Swiss Prime Site AG, Registered

    786,903       76,179,591  

Swisscom AG, Registered

    177,050       113,852,984  

Zurich Insurance Group AG

    156,335       75,587,738  
   

 

 

 
      1,088,259,249  
United Kingdom — 9.7%            

AstraZeneca PLC

    577,508       82,974,154  

BAE Systems PLC

    7,052,290       84,338,650  

British American Tobacco PLC

    279,813       9,409,580  

Bunzl PLC

    667,364       24,737,790  

Compass Group PLC

    1,065,160       27,712,937  

DCC PLC

    114,881       6,651,463  

Diageo PLC

    164,358       7,172,954  

GSK PLC

    4,790,940       85,284,248  

Hikma Pharmaceuticals PLC

    662,579       17,793,461  

HSBC Holdings PLC

    3,029,658       25,165,589  

National Grid PLC

    6,980,350       92,523,233  

Pearson PLC

    1,232,231       13,630,387  

Reckitt Benckiser Group PLC

    798,541       59,820,343  

RELX PLC

    1,605,587       54,038,771  

Sage Group PLC (The)

    762,501       9,171,801  

Severn Trent PLC

    543,209       17,803,056  

Tesco PLC

    10,081,761       33,391,506  

Unilever PLC

    1,686,044       90,596,026  

United Utilities Group PLC

    860,064       11,029,069  
   

 

 

 
      753,245,018  
   

 

 

 

Total Long-Term Investments — 99.4%
(Cost: $7,299,779,562)

 

     7,675,347,283  
   

 

 

 
Security   Shares     Value  

Short-Term Securities

   
Money Market Funds — 0.2%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.42%(d)(e)(f)

    11,816,678     $ 11,820,223  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.22%(d)(e)

    1,290,000       1,290,000  
   

 

 

 

Total Short-Term Securities — 0.2%
(Cost: $13,109,003)

 

    13,110,223  
   

 

 

 

Total Investments — 99.6%
(Cost: $7,312,888,565)

 

    7,688,457,506  

Other Assets Less Liabilities — 0.4%

      34,438,310  
   

 

 

 

Net Assets — 100.0%

    $  7,722,895,816  
   

 

 

 

 

(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.

(d) 

Affiliate of the Fund.

(e) Annualized 7-day yield as of period end.

(f) 

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

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the 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

  $ 2,760,113     $ 9,067,698 (a)    $   —     $ (8,145     $ 557     $ 11,820,223       11,816,678     $ 588,635 (b)    $   —     
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    980,000       310,000 (a)                       —       1,290,000       1,290,000       159,701       1     
         

 

 

     

 

 

   

 

 

     

 

 

   

 

 

    
          $ (8,145     $ 557     $ 13,110,223       $ 748,336     $ 1     
         

 

 

     

 

 

   

 

 

     

 

 

   

 

 

    

 

  (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.

 

 

 

42  

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® MSCI EAFE Min Vol Factor ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

Long Contracts

           

TOPIX Index

     78        09/07/23      $ 12,779      $ 486,928  

Euro STOXX 50 Index

     161        09/15/23        7,954        272,573  

FTSE 100 Index

     69        09/15/23        6,811        92,866  

SPI 200 Index

     71        09/21/23        8,804        332,424  

2-Year U.S. Treasury Note

     41        09/29/23        8,326        (86,694
           

 

 

 
            $ 1,098,097  
           

 

 

 

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)

   $   —      $   —      $ 1,184,791      $   —      $      $   —      $ 1,184,791  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $      $      $  86,694      $      $ 86,694  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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).

 

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

   $      $      $ 6,850,492      $      $ (392,346    $      $ 6,458,146  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 298,788      $      $ (69,876    $      $ 228,912  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 51,627,042   

 

 

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

 

 

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

  43


Schedule of Investments (continued)

July 31, 2023

  

iShares® MSCI EAFE Min Vol Factor ETF

 

Fair Value Hierarchy as of Period End

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

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

 

 

 
    Level 1     Level 2     Level 3     Total  

 

 

Assets

       

Investments

       

Long-Term Investments

       

Common Stocks

  $ 130,642,605     $ 7,544,704,678     $     $ 7,675,347,283  

Short-Term Securities

       

Money Market Funds

    13,110,223                   13,110,223  
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 143,752,828     $ 7,544,704,678     $    —     $ 7,688,457,506  
 

 

 

   

 

 

   

 

 

   

 

 

 

Derivative Financial Instruments(a)

       

Assets

       

Equity Contracts

  $     $ 1,184,791     $     $ 1,184,791  

Liabilities

       

Interest Rate Contracts

    (86,694                 (86,694
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ (86,694   $ 1,184,791     $       1,098,097  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

44  

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


Statements of Assets and Liabilities

July 31, 2023

 

    iShares
Global Equity
Factor ETF
     iShares
International Equity
Factor ETF
    iShares
International
Small-Cap
Equity Factor
ETF
     iShares
MSCI EAFE Min
Vol Factor ETF
 

 

 

ASSETS

         

Investments, at value — unaffiliated(a)(b)

  $ 124,208,033      $ 959,346,834     $ 615,277,488      $ 7,675,347,283  

Investments, at value — affiliated(c)

    1,448,551        967,379       18,190,388        13,110,223  

Cash

    6,923        8,746       823,865        13,393  

Cash pledged for futures contracts

    20,000                     48,000  

Foreign currency collateral pledged for futures contracts(d)

           319,343       250,035        2,150,887  

Foreign currency, at value(e)

    170,128        1,618,547       1,592,501        14,342,998  

Receivables:

         

Securities lending income — affiliated

    5,391        1,384       44,583        3,949  

Dividends — unaffiliated

    257,419        1,077,906       1,801,100        11,158,355  

Dividends — affiliated

    638        521       566        4,312  

Tax reclaims

    38,680        2,393,397       405,286        20,385,750  

Variation margin on futures contracts

    189        25,813       34,436        150,078  
 

 

 

    

 

 

   

 

 

    

 

 

 

Total assets

    126,155,952        965,759,870       638,420,248        7,736,715,228  
 

 

 

    

 

 

   

 

 

    

 

 

 

LIABILITIES

         

Cash received for futures contracts

           6,585               

Collateral on securities loaned, at value

    1,229,320        848,972       18,079,905        11,782,984  

Payables:

         

Investments purchased

                 1,237,198         

Deferred foreign capital gain tax

    57,604                      

Investment advisory fees

    20,736        120,472       117,925        1,278,755  

Professional fees

           22,643              757,673  
 

 

 

    

 

 

   

 

 

    

 

 

 

Total liabilities

    1,307,660        998,672       19,435,028        13,819,412  
 

 

 

    

 

 

   

 

 

    

 

 

 

Commitments and contingent liabilities

         

NET ASSETS

  $ 124,848,292      $ 964,761,198     $ 618,985,220      $ 7,722,895,816  
 

 

 

    

 

 

   

 

 

    

 

 

 

NET ASSETS CONSIST OF

         

Paid-in capital

  $ 118,056,693      $ 1,054,843,809     $ 592,850,295      $ 8,274,158,971  

Accumulated earnings (loss)

    6,791,599        (90,082,611     26,134,925        (551,263,155
 

 

 

    

 

 

   

 

 

    

 

 

 

NET ASSETS

  $ 124,848,292      $ 964,761,198     $ 618,985,220      $ 7,722,895,816  
 

 

 

    

 

 

   

 

 

    

 

 

 

NET ASSET VALUE

         

Shares outstanding

    3,400,000        34,900,000       19,300,000        112,200,000  
 

 

 

    

 

 

   

 

 

    

 

 

 

Net asset value

  $ 36.72      $ 27.64     $ 32.07      $ 68.83  
 

 

 

    

 

 

   

 

 

    

 

 

 

Shares authorized

    Unlimited        Unlimited       Unlimited        Unlimited  
 

 

 

    

 

 

   

 

 

    

 

 

 

Par value

    None        None       None        None  
 

 

 

    

 

 

   

 

 

    

 

 

 

(a) Investments, at cost — unaffiliated

  $ 108,575,401      $ 887,195,628     $ 579,027,160      $ 7,299,779,562  

(b) Securities loaned, at value

  $ 1,205,954      $ 808,344     $ 16,982,624      $ 11,381,780  

(c)  Investments, at cost — affiliated

  $ 1,440,679      $ 966,990     $ 18,188,385      $ 13,109,003  

(d) Foreign currency collateral pledged, at cost

  $      $ 326,239     $ 253,179      $ 2,258,540  

(e) Foreign currency, at cost

  $ 177,069      $ 1,603,690     $ 1,596,071      $ 14,213,933  

See notes to financial statements.

 

 

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

  45


Statements of Operations

Year Ended July 31, 2023

 

    iShares
Global Equity
Factor ETF
    iShares
International
Equity Factor
ETF
    iShares
International
Small-Cap
Equity Factor
ETF
   

iShares

MSCI EAFE

Min Vol

Factor ETF

 

 

 

INVESTMENT INCOME

       

Dividends — unaffiliated

  $ 3,427,367     $ 35,794,446     $ 22,340,564     $ 241,812,458  

Dividends — affiliated

    8,586       20,677       13,687       159,701  

Interest — unaffiliated

    601       7,033       4,635       65,206  

Securities lending income — affiliated — net

    13,962       144,347       237,946       588,635  

Other income — unaffiliated

          268       21       1,150,435  

Foreign taxes withheld

    (223,290     (3,200,302     (1,930,166     (20,474,364

Foreign withholding tax claims

          305,176       6,541       10,687,961  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    3,227,226       33,071,645       20,673,228       233,990,032  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory

    299,214       1,332,663       1,432,676       22,128,650  

Interest expense

    2,335                    

Commitment costs

    874                    

Professional

          30,550       656       1,183,886  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    302,423       1,363,213       1,433,332       23,312,536  

Less:

       

Investment advisory fees waived

                      (9,029,991
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

    302,423       1,363,213       1,433,332       14,282,545  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    2,924,803       31,708,432       19,239,896       219,707,487  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated(a)

    (2,847,942     (14,276,151     (9,378,080     (152,494,832

Investments — affiliated

    (52     (1,105     22       (8,145

Capital gain distributions from underlying funds — affiliated

                      1  

Foreign currency transactions

    (25,087     (7,191     133,571       (609,965

Futures contracts

    12,835       898,431       504,955       6,458,146  

In-kind redemptions — unaffiliated(b)

    664,764       4,467,383             130,463,047  

In-kind redemptions — affiliated(b)

    (243                  
 

 

 

   

 

 

   

 

 

   

 

 

 
    (2,195,725     (8,918,633     (8,739,532     (16,191,748
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — unaffiliated(c)

    14,272,136       104,916,166       39,264,435       613,792,485  

Investments — affiliated

    7,844       259       1,552       557  

Foreign currency translations

    (2,950     131,637       24,419       1,811,376  

Futures contracts

    (21,329     (17,183     56,034       228,912  
 

 

 

   

 

 

   

 

 

   

 

 

 
    14,255,701       105,030,879       39,346,440       615,833,330  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

    12,059,976       96,112,246       30,606,908       599,641,582  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 14,984,779     $ 127,820,678     $ 49,846,804     $ 819,349,069  
 

 

 

   

 

 

   

 

 

   

 

 

 

(a) Net of foreign capital gain tax and capital gain tax refund, if applicable

  $ (8,726   $     $     $  

(b) See Note 2 of the Notes to Financial Statements.

       

(c)  Net of increase in deferred foreign capital gain tax of

  $ (9,008   $     $     $  

See notes to financial statements.

 

 

46  

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


Statements of Changes in Net Assets

 

    iShares
Global Equity Factor ETF
          iShares
International Equity Factor ETF
 
    Year Ended
07/31/23
    Year Ended
07/31/22
          Year Ended
07/31/23
    Year Ended
07/31/22
 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

       

OPERATIONS

         

Net investment income

  $ 2,924,803     $ 2,956,494       $ 31,708,432     $ 31,172,824  

Net realized gain (loss)

    (2,195,725     4,508,549         (8,918,633     15,530,912  

Net change in unrealized appreciation (depreciation)

    14,255,701       (22,521,757       105,030,879       (176,859,143
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    14,984,779       (15,056,714       127,820,678       (130,155,407
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

         

Decrease in net assets resulting from distributions to shareholders

    (2,972,728     (2,712,880       (24,688,142     (44,913,686
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

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

    (6,755,470     3,898,080         36,882,133       102,005,132  
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS

         

Total increase (decrease) in net assets

    5,256,581       (13,871,514       140,014,669       (73,063,961

Beginning of year

    119,591,711       133,463,225         824,746,529       897,810,490  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of year

  $ 124,848,292     $ 119,591,711       $ 964,761,198     $ 824,746,529  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a)

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

 

See notes to financial statements. 

 

 

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

  47


Statements of Changes in Net Assets (continued)

 

    iShares
International Small-Cap Equity Factor ETF
          iShares
MSCI EAFE Min Vol Factor ETF
 
    Year Ended
07/31/23
    Year Ended
07/31/22
          Year Ended
07/31/23
    Year Ended
07/31/22
 

 

 

INCREASE (DECREASE) IN NET ASSETS

 

       

OPERATIONS

         

Net investment income

  $ 19,239,896     $ 6,504,932       $ 219,707,487     $ 176,070,182  

Net realized gain (loss)

    (8,739,532     8,839,097         (16,191,748     50,742,279  

Net change in unrealized appreciation (depreciation)

    39,346,440       (44,172,773       615,833,330       (1,227,024,162
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    49,846,804       (28,828,744       819,349,069       (1,000,211,701
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

         

Decrease in net assets resulting from distributions to shareholders

    (15,328,281     (9,265,089       (204,048,443     (170,963,661
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

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

    358,878,061       68,863,364         1,173,620,233       (1,526,195,378
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS

         

Total increase (decrease) in net assets

    393,396,584       30,769,531         1,788,920,859       (2,697,370,740

Beginning of year

    225,588,636       194,819,105         5,933,974,957       8,631,345,697  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of year

  $ 618,985,220     $ 225,588,636       $ 7,722,895,816     $ 5,933,974,957  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a)

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

 

See notes to financial statements. 

 

 

48  

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Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Global Equity Factor ETF  
 

 

 

 
    Year Ended
07/31/23
     Year Ended
07/31/22
    Year Ended
07/31/21
     Year Ended
07/31/20
     Year Ended
07/31/19
 

 

 

Net asset value, beginning of year

  $ 33.22      $ 38.13     $ 29.39      $ 29.23      $ 30.57  
 

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.83        0.81       0.66        0.57        0.66  

Net realized and unrealized gain (loss)(b)

    3.52        (4.99     8.73        0.28        (1.36
 

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    4.35        (4.18     9.39        0.85        (0.70
 

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Distributions from net investment income(c)

    (0.85      (0.73     (0.65      (0.69      (0.64
 

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 36.72      $ 33.22     $ 38.13      $ 29.39      $ 29.23  
 

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total Return(d)

            

Based on net asset value

    13.34      (11.08 )%      32.16      2.90      (2.10 )% 
 

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets(e)

            

Total expenses

    0.26      0.35     0.35      0.35      0.35
 

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total expenses after fees waived

    0.26      0.35     0.35      0.35      0.35
 

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net investment income

    2.50      2.24     1.92      2.00      2.30
 

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Supplemental Data

            

Net assets, end of year (000)

  $ 124,848      $ 119,592     $ 133,463      $ 114,623      $ 112,537  
 

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(f)

    112      51     48      43      43
 

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

  49


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares International Equity Factor ETF  
 

 

 

 
    Year Ended
07/31/23
    Year Ended
07/31/22
     Year Ended
07/31/21
     Year Ended
07/31/20
     Year Ended
07/31/19
 

 

 

Net asset value, beginning of year

  $ 24.62     $ 30.13      $ 23.89      $ 25.68      $ 28.29  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.90 (b)       0.98        0.79        0.60        0.86  

Net realized and unrealized gain (loss)(c)

    2.83       (5.09      6.35        (1.61      (2.66
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    3.73       (4.11      7.14        (1.01      (1.80
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Distributions from net investment income(d)

    (0.71     (1.40      (0.90      (0.78      (0.81
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 27.64     $ 24.62      $ 30.13      $ 23.89      $ 25.68  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total Return(e)

            

Based on net asset value

    15.37 %(b)      (13.97 )%       29.97      (4.03 )%       (6.26 )% 
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets(f)

            

Total expenses

    0.15     0.25      0.30      0.30      0.30
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

    0.15     0.25      N/A        N/A        0.30
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    3.57 %(b)       3.54      2.89      2.44      3.31
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

            

Net assets, end of year (000)

  $ 964,761     $ 824,747      $ 897,810      $ 910,213      $ 1,271,005  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(g)

    23     113      45      40      44
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended July 31, 2023:

   

Net investment income per share by $0.01.

   

Total return by 0.03%.

   

Ratio of net investment income to average net assets by 0.03%.

(c) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

50  

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares International Small-Cap Equity Factor ETF  
 

 

 

 
    Year Ended
07/31/23
     Year Ended
07/31/22
     Year Ended
07/31/21
     Year Ended
07/31/20
     Year Ended
07/31/19
 

 

 

Net asset value, beginning of year

  $ 30.90      $ 37.47      $ 28.44      $ 28.88      $ 31.73  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    1.15        1.08        0.78        0.68        0.77  

Net realized and unrealized gain (loss)(b)

    0.87        (6.15      9.15        (0.32      (2.97
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    2.02        (5.07      9.93        0.36        (2.20
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions from net investment income(c)

    (0.85      (1.50      (0.90      (0.80      (0.65
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 32.07      $ 30.90      $ 37.47      $ 28.44      $ 28.88  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return(d)

             

Based on net asset value

    6.73      (13.81 )%       35.22      1.16      (6.80 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets(e)

             

Total expenses

    0.28      0.40      0.40      0.40      0.40
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

    0.28      N/A        N/A        N/A        N/A  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    3.79      3.16      2.31      2.44      2.67
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

             

Net assets, end of year (000)

  $ 618,985      $ 225,589      $ 194,819      $ 122,273      $ 77,964  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(f)

    120      52      47      47      45
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

  51


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI EAFE Min Vol Factor ETF  
 

 

 

 
    Year Ended
07/31/23
    Year Ended
07/31/22
    Year Ended
07/31/21
     Year Ended
07/31/20
     Year Ended
07/31/19
 

 

 

Net asset value, beginning of year

  $ 65.71     $ 77.27     $ 66.79      $ 71.90      $ 72.92  
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Net investment income(a)

    2.00 (b)       1.72 (b)       1.79        1.86        2.15  

Net realized and unrealized gain (loss)(c)

    2.93       (11.54     9.96        (4.26      (1.01
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    4.93       (9.82     11.75        (2.40      1.14  
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Distributions from net investment income(d)

    (1.81     (1.74     (1.27      (2.71      (2.16
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 68.83     $ 65.71     $ 77.27      $ 66.79      $ 71.90  
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total Return(e)

           

Based on net asset value

    7.62 %(b)       (12.76 )%(b)      17.61      (3.51 )%       1.68
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets(f)

           

Total expenses

    0.33     0.32     0.32      0.32      0.32
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total expenses after fees waived

    0.20     0.20     0.20      0.20      0.20
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

    0.31     0.32     0.32      N/A        0.32
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Net investment income

    3.08 %(b)       2.36 %(b)       2.48      2.65      3.04
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Supplemental Data

           

Net assets, end of year (000)

  $ 7,722,896     $ 5,933,975     $ 8,631,346      $ 10,559,196      $ 11,295,536  
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(g)

    25     23     25      23      22
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended July 31, 2023 and July 31, 2022 respectively:

   

Net investment income per share by $0.09 and $0.01.

   

Total return by 0.13% and 0.02%.

   

Ratio of net investment income to average net assets by 0.13% and 0.01%.

(c) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

52  

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Notes to Financial Statements

 

1.

ORGANIZATION

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.

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

 

   
iShares ETF   Diversification
Classification
 

Global Equity Factor(a)

    Diversified  

International Equity Factor

    Diversified  

International Small-Cap Equity Factor(b)

    Diversified  

MSCI EAFE Min Vol Factor

    Diversified  

 

  (a) 

Formerly the iShares MSCI Global Multifactor ETF.

  (b) 

Formerly the iShares MSCI International Small-Cap Multifactor ETF.

 

2.

SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

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

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of July 31, 2023, if any, are disclosed in the Statements of Assets and Liabilities.

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

Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.

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

 

 

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

  53


Notes to Financial Statements(continued)

 

Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

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

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

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

 

   

Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

   

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

 

   

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

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

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

Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

   

Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

 

   

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

 

   

Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

 

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Notes to Financial Statements(continued)

 

4.

SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

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

 

         
iShares ETF and Counterparty   Securities Loaned
at Value
     Cash Collateral 
Received(a)
    Non-Cash Collateral 
Received, at Fair Value(a)
     Net Amount  

Global Equity Factor

         

Barclays Bank PLC

  $ 574,243      $ (574,243   $      $  

BofA Securities, Inc.

    299,952        (299,952             

Citigroup Global Markets, Inc.

    14,495        (14,495             

J.P. Morgan Securities LLC

    40,622        (40,622             

UBS Securities LLC

    35,016        (34,333            683 (b)  

Wells Fargo Bank N.A

    213,066        (213,066             

Wells Fargo Securities LLC

    28,560        (28,560             
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 1,205,954      $ (1,205,271   $      $ 683  
 

 

 

    

 

 

   

 

 

    

 

 

 

International Equity Factor

         

BofA Securities, Inc.

  $ 8,024      $ (8,024   $      $  

Credit Suisse Securities (USA) LLC

    96,639        (96,639             

Goldman Sachs & Co. LLC

    703,681        (703,681             
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 808,344      $ (808,344   $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

International Small-Cap Equity Factor

         

Barclays Bank PLC

  $ 975,752      $ (974,716   $      $ 1,036 (b) 

BNP Paribas SA

    237,011        (237,011             

BofA Securities, Inc.

    1,630,613        (1,630,613             

Citigroup Global Markets, Inc.

    1,432,521        (1,432,521             

Credit Suisse Securities (USA) LLC

    8,471        (8,471             

Goldman Sachs & Co. LLC

    4,502,865        (4,502,865             

HSBC Bank PLC

    3,225,447        (3,225,447             

J.P. Morgan Securities LLC

    2,608,700        (2,608,700             

Jefferies LLC

    137,560        (137,560             

Macquarie Bank Ltd.

    17,880        (17,880             

Scotia Capital (USA), Inc.

    1,702        (1,702             

SG Americas Securities LLC

    354,260        (354,260             

State Street Bank & Trust Co.

    1,047,300        (1,047,300             

UBS AG

    770,470        (770,470             

Wells Fargo Bank N.A

    32,072        (30,873            1,199 (b) 
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 16,982,624      $ (16,980,389   $      $ 2,235  
 

 

 

    

 

 

   

 

 

    

 

 

 

 

 

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

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Notes to Financial Statements(continued)

 

         
iShares ETF and Counterparty   Securities Loaned
at Value
     Cash Collateral 
Received(a)
    Non-Cash Collateral 
Received, at Fair Value(a)
     Net Amount  

MSCI EAFE Min Vol Factor

         

Barclays Capital, Inc.

  $ 5,050,166      $ (5,050,166   $      $  

Goldman Sachs & Co. LLC

    700,773        (700,773             

J.P. Morgan Securities LLC

    77,840        (77,840             

Morgan Stanley

    526,492        (526,492             

Scotia Capital (USA), Inc.

    4,410,790        (4,410,790             

State Street Bank & Trust Co.

    615,719        (615,719             
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 11,381,780      $ (11,381,780   $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

 

  (a) 

Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s Statements of Assets and Liabilities.

 
  (b) 

The market value of the loaned securities is determined as of July 31, 2023. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty.

 

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

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

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

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

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

For its investment advisory services to each of the following Funds, BFAis entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:

 

   
iShares ETF   Investment Advisory Fees  

Global Equity Factor

    0.20

International Equity Factor

    0.15  

International Small-Cap Equity Factor

    0.23  

MSCI EAFE Min Vol Factor

    0.20  

Effective December 16, 2022, for its investment advisory services to the iShares Global Equity Factor ETF, BFA is entitled to an annual investment advisory fee of 0.20%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. Prior to December 16, 2022, BFA was entitled to an annual investment advisory fee of 0.35%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.

 

 

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Notes to Financial Statements(continued)

 

Effective December 16, 2022, for its investment advisory services to the iShares International Small-Cap Equity Factor ETF, BFA is entitled to an annual investment advisory fee of 0.23%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. Prior to December 16, 2022, BFA was entitled to an annual investment advisory fee of 0.40%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.

Effective June 30, 2023, for its investment advisory services to the iShares MSCI EAFE Min Vol Factor ETF, BFA is entitled to an annual investment advisory fee of 0.20%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.

Prior to June 30, 2023, for its investment advisory services to the iShares MSCI EAFE Min Vol Factor ETF, BFA was entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

   
Aggregate Average Daily Net Assets   Investment Advisory Fees  

First $30 billion

    0.350

Over $30 billion, up to and including $60 billion

    0.320  

Over $60 billion, up to and including $90 billion

    0.280  

Over $90 billion, up to and including $120 billion

    0.252  

Over $120 billion, up to and including $150 billion

    0.227  

Over $150 billion

    0.204  

Expense Waivers: The total of the investment advisory fee and any other fund expenses is a fund’s total annual operating expenses. For the iShares MSCI EAFE Min Vol Factor ETF, BFA had contractually agreed to waive a portion of its investment advisory fee for the Fund through November 30, 2026 in order to limit the Fund’s total annual operating expenses after fee waiver to 0.20% of average daily net assets. The contractual waiver was terminated as of June 30, 2023.

A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses, if any, is a fund’s total annual operating expenses. Total expenses as shown in the Statement of Operations does not include acquired fund fees and expenses. For the iShares Global Equity Factor ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through November 30, 2025 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other iShares funds.

These amounts are included in investment advisory fees waived in the Statements of Operations. For the year ended July 31, 2023, the amounts waived in investment advisory fees pursuant to these arrangements were as follows:

 

   
iShares ETF   Amounts Waived  

MSCI EAFE Min Vol Factor

  $ 9,029,991  

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

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

 

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

  57


Notes to Financial Statements (continued)

 

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the year ended July 31, 2023, the Funds paid BTC the following amounts for securities lending agent services:

 

   
iShares ETF   Amounts  

Global Equity Factor

  $ 3,322  

International Equity Factor

    32,074  

International Small-Cap Equity Factor

    54,892  

MSCI EAFE Min Vol Factor

     136,225  

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

Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the year ended July 31, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

       
iShares ETF   Purchases      Sales      Net Realized
Gain (Loss)
 

Global Equity Factor

  $ 52,231,555      $ 43,759,166      $ (3,460,775

International Equity Factor

    46,495,543        55,622,237         (3,041,262

International Small-Cap Equity Factor

    24,091,815        18,894,875        518,219  

MSCI EAFE Min Vol Factor

     266,718,153         339,992,042        (9,416,701

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the Statements of Operations.

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

 

7.

PURCHASES AND SALES

For the year ended July 31, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:

 

     
iShares ETF   Purchases      Sales  

Global Equity Factor

  $ 130,947,055      $ 131,763,761  

International Equity Factor

    215,266,990        203,167,458  

International Small-Cap Equity Factor

    610,881,356        591,413,130  

MSCI EAFE Min Vol Factor

     1,848,555,857         1,767,433,974  

For the year ended July 31, 2023, in-kind transactions were as follows:

 

     
iShares ETF   In-kind
Purchases
     In-kind
Sales
 

Global Equity Factor

  $      $ 5,809,068  

International Equity Factor

    138,685,511         106,645,426  

International Small-Cap Equity Factor

    343,007,511         

MSCI EAFE Min Vol Factor

     1,830,449,854        721,776,249  

 

8.

INCOME TAX INFORMATION

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

Management has analyzed tax laws and regulations and their application to the Funds as of July 31, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

 

 

58  

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Notes to Financial Statements (continued)

 

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of July 31, 2023, permanent differences attributable to realized gains (losses) from in-kind redemptions were reclassified to the following accounts:

 

     
iShares ETF   Paid-in Capital      Accumulated
Earnings (Loss)
 

Global Equity Factor

  $ 640,550      $ (640,550

International Equity Factor

    3,999,555        (3,999,555

International Small-Cap Equity Factor

    215        (215

MSCI EAFE Min Vol Factor

     125,947,835         (125,947,835

The tax character of distributions paid was as follows:

 

     
iShares ETF   Year Ended
07/31/23
     Year Ended
07/31/22
 

Global Equity Factor
Ordinary income

  $ 2,972,728      $ 2,712,880  
 

 

 

    

 

 

 

International Equity Factor
Ordinary income

  $ 24,688,142      $ 44,913,686  
 

 

 

    

 

 

 

International Small-Cap Equity Factor
Ordinary income

  $ 15,328,281      $ 9,265,089  
 

 

 

    

 

 

 

MSCI EAFE Min Vol Factor
Ordinary income

  $  204,048,443      $  170,963,661  
 

 

 

    

 

 

 

As of July 31, 2023, the tax components of accumulated net earnings (losses) were as follows:

 

         
iShares ETF   Undistributed
Ordinary Income
     Non-expiring 
Capital Loss 
Carryforwards(a)
    Net Unrealized 
Gains (Losses)(b)
     Total  

Global Equity Factor

  $ 1,002,111      $ (9,276,181)     $ 15,065,669      $ 6,791,599  

International Equity Factor

    7,743,744        (162,907,834     65,081,479        (90,082,611

International Small-Cap Equity Factor

    8,135,040        (11,482,387     29,482,272        26,134,925  

MSCI EAFE Min Vol Factor

    19,523,762         (907,199,877      336,412,960         (551,263,155

 

  (a) 

Amounts available to offset future realized capital gains.

 

 

  (b) 

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

 

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of July 31, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

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

Global Equity Factor

  $ 110,528,595      $ 18,377,732      $ (3,249,743   $ 15,127,989  

International Equity Factor

    895,355,338        104,814,562        (39,773,932     65,040,630  

International Small-Cap Equity Factor

    604,049,775        60,121,215        (30,661,192     29,460,023  

MSCI EAFE Min Vol Factor

     7,353,621,315        859,524,361        (523,868,818      335,655,543  

 

9.

LINE OF CREDIT

The iShares Global Equity Factor ETF, along with certain other iShares funds (“Participating Funds”), is a party to a $800 million credit agreement (“Syndicated Credit Agreement”) with a group of lenders, which expires on August 11, 2023. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Syndicated Credit Agreement. The Syndicated Credit Agreement has the following terms: a commitment fee of 0.15% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) Daily Simple Secured Overnight Financing Rate (“SOFR”) plus 0.10% and 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund

 

 

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

  59


Notes to Financial Statements (continued)

 

based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Syndicated Credit Agreement.

For the year ended July 31, 2023, the maximum amount borrowed, the average daily borrowing and the weighted average interest rate, if any, under the Syndicated Credit Agreement were as follows:

 

       
iShares ETF   Maximum
Amount
Borrowed
     Average
Borrowing
     Weighted
Average
Interest Rates
 

Global Equity Factor

  $ 1,400,000      $ 46,948        4.59

 

10.

PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

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

Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.

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

The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs.

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

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

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

 

 

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Notes to Financial Statements (continued)

 

Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.

Certain Funds invest a significant portion of their assets in issuers located in a single country or a limited number of countries. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Unanticipated or sudden political or social developments may cause uncertainty in the markets and as a result adversely affect the Fund’s investments. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be more volatile and less liquid than U.S. securities and may be less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the Schedule of Investments.

The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the the Funds invest.

Certain Funds invest a significant portion of their assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries as well as acts of war in the region. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Funds’ investments.

Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. The United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. These events and actions have adversely affected, and may in the future adversely affect, the value and exchange rate of the Euro and may continue to significantly affect the economies of every country in Europe, including countries that do not use the Euro and non-European Union member states. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching. In addition, Russia launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting future market disruptions in the region are impossible to predict, but have been, and may continue to be significant and have a severe adverse effect on the region, including significant negative impacts on the economy and the markets for certain securities and commodities, such as oil and natural gas, as well as other sectors.

Certain Funds invest a significant portion of their assets in securities of issuers located in Asia or with significant exposure to Asian issuers or countries. The Asian financial markets have recently experienced volatility and adverse trends due to concerns in several Asian countries regarding monetary policy, government intervention in the markets, rising government debt levels or economic downturns. These events may spread to other countries in Asia and may affect the value and liquidity of certain of the Funds’ investments.

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

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

 

11.

CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.

 

 

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

  61


Notes to Financial Statements (continued)

 

Transactions in capital shares were as follows:

 

 

 
    Year Ended
07/31/23
    Year Ended
07/31/22
 
iShares ETF   Shares     Amount     Shares     Amount  

 

 

Global Equity Factor

       

Shares sold

        $       800,000     $ 30,535,806  

Shares redeemed

    (200,000     (6,755,470     (700,000     (26,637,726
 

 

 

   

 

 

   

 

 

   

 

 

 
    (200,000   $ (6,755,470     100,000     $ 3,898,080  
 

 

 

   

 

 

   

 

 

   

 

 

 

International Equity Factor

       

Shares sold

    5,900,000     $ 144,097,934       4,600,000     $ 125,984,771  

Shares redeemed

    (4,500,000     (107,215,801     (900,000     (23,979,639
 

 

 

   

 

 

   

 

 

   

 

 

 
    1,400,000     $ 36,882,133       3,700,000     $ 102,005,132  
 

 

 

   

 

 

   

 

 

   

 

 

 

International Small-Cap Equity Factor

       

Shares sold

    12,000,000     $ 358,878,061       2,600,000     $ 85,244,456  

Shares redeemed

                (500,000     (16,381,092
 

 

 

   

 

 

   

 

 

   

 

 

 
    12,000,000     $ 358,878,061       2,100,000     $ 68,863,364  
 

 

 

   

 

 

   

 

 

   

 

 

 

MSCI EAFE Min Vol Factor

       

Shares sold

    33,000,000     $ 1,899,904,596       500,000     $ 34,875,532  

Shares redeemed

    (11,100,000     (726,284,363     (21,900,000     (1,561,070,910
 

 

 

   

 

 

   

 

 

   

 

 

 
    21,900,000     $ 1,173,620,233       (21,400,000   $ (1,526,195,378
 

 

 

   

 

 

   

 

 

   

 

 

 

The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.

 

12.

FOREIGN WITHHOLDING TAX CLAIMS

The Internal Revenue Service has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior calendar years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid which the iShares International Equity Factor ETF, iShares International Small-Cap Equity Factor ETF and iShares MSCI EAFE Min Vol Factor ETF are able to pass through to its shareholders as a foreign tax credit in the current year, the Funds will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Funds.

 

13.

SUBSEQUENT EVENTS

Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were available to be issued and the following items were noted:

Effective August 11, 2023, the Syndicated Credit Agreement to which the Participating Funds are party was extended until August 2024 under the same terms.

 

 

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Report of Independent Registered Public Accounting Firm

 

To the Board of Trustees of

iShares Trust and Shareholders of each of the four funds listed in the table below

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds listed in the table below (four of the funds constituting iShares Trust, hereafter collectively referred to as the “Funds”) as of July 31, 2023, the related statements of operations for the year ended July 31, 2023, the statements of changes in net assets for each of the two years in the period ended July 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended July 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of July 31, 2023, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended July 31, 2023 and each of the financial highlights for each of the five years in the period ended July 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

 

 

 iShares Global Equity Factor ETF

 iShares International Equity Factor ETF

 iShares International Small-Cap Equity Factor ETF

 iShares MSCI EAFE Min Vol Factor ETF

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

September 22, 2023

We have served as the auditor of one or more BlackRock investment companies since 2000.

 

 

R E P O R TO F  I N D E P E N D E N T  R E G I S T E R E D  P U B L I C  A C C O U N T I N G  F I R M

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Important Tax Information (unaudited)

 

The following amounts, or maximum amounts allowable by law, are hereby designated as qualified dividend income for individuals for the fiscal year ended July 31, 2023:

 

   
iShares ETF   Qualified Dividend
Income
 

Global Equity Factor

  $ 2,829,372  

International Equity Factor

    32,334,269  

International Small-Cap Equity Factor

    16,987,351  

MSCI EAFE Min Vol Factor

    193,728,583  

The following amounts, or maximum amounts allowable by law, are hereby designated as qualified business income for individuals for the fiscal year ended July 31, 2023:

 

   
iShares ETF   Qualified Business
Income
 

Global Equity Factor

  $ 17,122  

The Funds intend to pass through to their shareholders the following amounts, or maximum amounts allowable by law, of foreign source income earned and foreign taxes paid for the fiscal year ended July 31, 2023:

 

     
iShares ETF   Foreign Source
Income Earned
     Foreign
Taxes Paid
 

International Equity Factor

  $ 35,794,447      $  2,795,837  

International Small-Cap Equity Factor

    22,340,565        1,797,309  

MSCI EAFE Min Vol Factor

    241,812,460        7,250,761  

The following percentage, or maximum percentage allowable by law, of ordinary income distributions paid during the fiscal year ended July 31, 2023 qualified for the dividends-received deduction for corporate shareholders:

 

   
iShares ETF   Dividends-Received
Deduction
 

Global Equity Factor

    33.70

 

 

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Board Review and Approval of Investment Advisory Contract

 

iShares Global Equity Factor ETF, iShares International Equity Factor ETF, iShares International Small-Cap Equity Factor ETF (each the “Fund”)

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

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

Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

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

Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.

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

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

 

 

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Board Review and Approval of Investment Advisory Contract (continued)

 

including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).

Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

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

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

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.

iShares MSCI EAFE Min Vol Factor ETF (the “Fund”)

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed

 

 

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Board Review and Approval of Investment Advisory Contract (continued)

 

information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide.At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

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

Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

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

Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.

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

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

Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of

 

 

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Board Review and Approval of Investment Advisory Contract (continued)

 

fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board also noted that during the June 7-8, 2023 meeting, it approved a permanent reduction to the advisory fee rate charged to the Fund at each breakpoint tier. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.

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

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.

 

 

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Supplemental Information (unaudited)

 

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

July 31, 2023

 

     Total Cumulative Distributions
for the Fiscal Year
           % Breakdown of the Total Cumulative
Distributions for the Fiscal Year
 
iShares ETF   Net
Investment
Income
   

Net Realized

Capital Gains

    Return of
Capital
    Total Per
Share
           Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
 

MSCI EAFE Min Vol Factor(a)

  $  1.806034     $     $ 0.002170     $ 1.808204               100         0 %(b)      100

 

  (a)

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

 
  (b)

Rounds to less than 1%.

 

Tailored Shareholder Reports for Open-End Mutual Funds and ETFs

Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.

Premium/Discount Information

Information on the Fund’s net asset value, market price, premiums and discounts, and bid-ask spreads can be found at iShares.com.

 

 

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  69


Trustee and Officer Information (unaudited)

 

The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).

The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of open-end equity, multi-asset, index and money market funds and ETFs (the “BlackRock Multi-Asset Complex”), one complex of closed-end funds and open-end non-index fixed-income funds (including ETFs) (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 387 funds as of July 31, 2023. With the exception of Robert S. Kapito, Salim Ramji and Aaron Wasserman, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji and Mr. Wasserman is c/o BlackRock, Inc., 50 Hudson Yards, New York, NY 10001. The Board has designated John E. Kerrigan as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).

 

Interested Trustees
       

Name

(Year of

Birth)

   Position(s)   

Principal Occupation(s)

During Past 5 Years

   Other Directorships Held by Trustee

Robert S.

Kapito(a)

(1957)

  

Trustee (since

2009).

   President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002).    Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).

Salim Ramji(b)

(1970)

   Trustee (since 2019).    Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014).    Director of iShares, Inc. (since 2019); Trustee of iShares U.S. ETF Trust (since 2019).

 

(a)

Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

(b)

Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

 

Independent Trustees
       

Name

(Year of

Birth)

   Position(s)   

Principal Occupation(s)

During Past 5 Years

   Other Directorships Held by Trustee

John E.

Kerrigan

(1955)

   Trustee (since 2005); Independent Board Chair (since 2022).    Chief Investment Officer, Santa Clara University (since 2002).   

Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011);

Independent Board Chair of iShares, Inc. and iShares U.S. ETF Trust (since 2022).

Jane D. Carlin

(1956)

   Trustee (since 2015); Risk Committee Chair (since 2016).    Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).    Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Member of the Audit Committee (since 2016), Chair of the Audit Committee (since 2020) and Director of The Hanover Insurance Group, Inc. (since 2016).

Richard L.

Fagnani

(1954)

   Trustee (since 2017); Audit Committee Chair (since 2019).    Partner, KPMG LLP (2002-2016); Director of One Generation Away (since 2021).    Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

 

 

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Trustee and Officer Information (unaudited) (continued)

 

Independent Trustees (continued)
       

Name

(Year of

Birth)

   Position(s)   

Principal Occupation(s)

During Past 5 Years

   Other Directorships Held by Trustee

Cecilia H.

Herbert

(1949)

   Trustee (since 2005); Nominating and Governance and Equity Plus Committee Chairs (since 2022).    Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Audit and Quality Committees of Stanford Health Care (since 2016); Trustee of WNET, New York’s public media company (since 2011) and Member of the Audit Committee (since 2018), Investment Committee (since 2011) and Personnel Committee (since 2022); Member of the Wyoming State Investment Funds Committee (since 2022); Director of the Jackson Hole Center for the Arts (since 2021); Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015-2018).    Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

Drew E.

Lawton

(1959)

   Trustee (since 2017); 15(c) Committee Chair (since 2017).    Senior Managing Director of New York Life Insurance Company (2010-2015).    Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017); Director of Jackson Financial Inc. (since 2021).

John E.

Martinez

(1961)

   Trustee (since 2003); Securities Lending Committee Chair (since 2019).    Director of Real Estate Equity Exchange, Inc. (since 2005); Director of Cloudera Foundation (2017-2020); and Director of Reading Partners (2012-2016).    Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).

Madhav V.

Rajan

(1964)

   Trustee (since 2011); Fixed-Income Plus Committee Chair (since 2019).    Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Advisory Board Member (since 2016) and Director (since 2020) of C.M. Capital Corporation; Chair of the Board for the Center for Research in Security Prices, LLC (since 2020); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).    Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).
Officers
     

Name

(Year of

Birth)

   Position(s)   

Principal Occupation(s)

During Past 5 Years

Dominik Rohé

(1973)

   President (since 2023).    Managing Director, BlackRock, Inc. (since 2005); Head of Americas ETF and Index Investments (since 2023); Head of Latin America (2019-2023).

Trent Walker

(1974)

   Treasurer and Chief Financial Officer (since 2020).   

Managing Director, BlackRock, Inc. (since September 2019); Chief Financial Officer of iShares Delaware Trust Sponsor LLC, BlackRock Funds, BlackRock Funds II, BlackRock Funds IV, BlackRock Funds V and BlackRock Funds VI (since 2021); Executive Vice President of PIMCO (2016-2019); Senior Vice President of PIMCO (2008-2015); Treasurer (2013-2019) and Assistant Treasurer (2007-2017) of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds.

Aaron

Wasserman

(1974)

   Chief Compliance Officer (iShares, Inc. and iShares Trust, since 2023; iShares U.S. ETF Trust, since 2023).    Managing Director of BlackRock, Inc. (since 2018); Chief Compliance Officer of the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex and the Exchange-Traded Fund Complex (since 2023); Deputy Chief Compliance Officer for the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex and the Exchange-Traded Fund Complex (2014-2023).

Marisa

Rolland

(1980)

   Secretary (since 2022).    Managing Director, BlackRock, Inc. (since 2023); Director, BlackRock, Inc. (2018-2022); Vice President, BlackRock, Inc. (2010-2017).

Rachel

Aguirre

(1982)

   Executive Vice President (since 2022).    Managing Director, BlackRock, Inc. (since 2018); Director, BlackRock, Inc. (2009-2018); Head of U.S. iShares Product (since 2022); Head of EII U.S. Product Engineering (since 2021); Co-Head of EII’s Americas Portfolio Engineering (2020-2021); Head of Developed Markets Portfolio Engineering (2016-2019).

 

 

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  71


Trustee and Officer Information (unaudited) (continued)

 

Officers (continued)
     

Name

(Year of

Birth)

   Position(s)   

Principal Occupation(s)

During Past 5 Years

Jennifer Hsui

(1976)

   Executive Vice President (since 2022).    Managing Director, BlackRock, Inc. (since 2009); Co-Head of Index Equity (since 2022).

James Mauro

(1970)

   Executive Vice President (since 2022).    Managing Director, BlackRock, Inc. (since 2010); Head of Fixed Income Index Investments in the Americas and Head of San Francisco Core Portfolio Management (since 2020).

 

 
 Effective March 30, 2023, Dominik Rohé replaced Armando Senra as President.
 
 Effective July 1, 2023, Aaron Wasserman replaced Charles Park as Chief Compliance Officer.

 

 

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General Information

 

Electronic Delivery

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

To enroll in electronic delivery:

 

   

Go to icsdelivery.com.

   

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

Householding

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

Availability of Quarterly Schedule of Investments

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

Availability of Proxy Voting Policies and Proxy Voting Records

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

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

 

 

G E N E R A L  I N F O R M A T I O N

  73


Glossary of Terms Used in this Report

 

Portfolio Abbreviation

 

ADR    American Depositary Receipt
GDR    Global Depositary Receipt
NVDR    Non-Voting Depositary Receipt
NVS    Non-Voting Shares
PJSC    Public Joint Stock Company
REIT    Real Estate Investment Trust
SDR    Swedish Depositary Receipt

 

 

74  

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


 

 

 

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Want to know more?

iShares.com | 1-800-474-2737

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

Investing involves risk, including possible loss of principal.

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

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc. and STOXX Ltd., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

©2023 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-AR-709-0723

 

 

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