LOGO

      JULY 31, 2023

 

  

2023 Annual Report

 

 

iShares Trust

·  iShares Currency Hedged MSCI ACWI ex U.S. ETF | HAWX | NYSE Arca

·  iShares Currency Hedged MSCI EAFE ETF | HEFA | Cboe BZX

·  iShares Currency Hedged MSCI EAFE Small-Cap ETF | HSCZ | NYSE Arca

·  iShares MSCI ACWI ex U.S. ETF | ACWX | NASDAQ

·  iShares MSCI EAFE ETF | EFA | NYSE Arca

·  iShares MSCI EAFE Small-Cap ETF | SCZ | NASDAQ


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. Further more, 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

   17

Disclosure of Expenses

   17

Schedules of Investments

   18

Financial Statements:

  

Statements of Assets and Liabilities

   91

Statements of Operations

   93

Statements of Changes in Net Assets

   95

Financial Highlights

   98

Notes to Financial Statements

   104

Report of Independent Registered Public Accounting Firm

   115

Important Tax Information

   116

Board Review and Approval of Investment Advisory Contract

   117

Supplemental Information

   128

Trustee and Officer Information

   130

General Information

   133

Glossary of Terms Used in this Report

   134

 

 

  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 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


Fund Summary as of July 31, 2023     iShares® Currency Hedged MSCI ACWI ex U.S. ETF

 

Investment Objective

The iShares Currency Hedged MSCI ACWI ex U.S. ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization developed and emerging equities, excluding the U.S., while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI ACWI ex USA 100% Hedged to 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI ACWI ex U.S. ETF.

Performance

 

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

Fund NAV

     13.81      6.79     6.78       13.81      38.91      70.03

Fund Market

     13.93        6.82       6.80         13.93        39.08        70.25  

Index

     14.26        6.84       6.81               14.26        39.18        70.38  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSETVALUE)

 

LOGO

The inception date of the Fund was June 29, 2015. The first day of secondary market trading was July 1, 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          $  1,067.70          $   0.15       $  1,000.00          $  1,024.60          $  0.15          0.03

 

  (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. The fees and expenses of the underlying funds in which the Fund invests are not included in the Fund’s annualized expense ratio.

 

 

 

F U N D  S U M M A R Y

  5


Fund Summary as of July 31, 2023  (continued)    iShares® Currency Hedged MSCI ACWI ex U.S. ETF

 

Portfolio Management Commentary

International stocks advanced notably during the reporting period in U.S. dollar terms, 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 also 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, as higher net fees and trading profits boosted earnings in the capital goods industry. 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 contributed to the Index’s return. While economic growth in the Eurozone was tepid, inflation fell 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, stocks in the industrials sector were buoyed by strong earnings guidance amid easing supply chain bottlenecks. The German information technology sector contributed amid robust sales of cloud-based enterprise software.

U.K. stocks also contributed to the Index’s performance, despite slow economic growth during the reporting period. The financials sector was the leading source of strength, as cost cutting and high interest rates benefited the banking industry. Swiss stocks also contributed as the healthcare sector was bolstered by the pharmaceuticals industry, where strong earnings enabled a significant stock buyback program. Swiss financials stocks also gained as the insurance industry benefited from robust profit growth and increased gross written premiums.

In terms of currency performance, the U.S. dollar was mixed against foreign currencies during the reporting period. Increasing interest rates and a robust economy drove the strength of the U.S. dollar against some foreign currencies. The Japanese yen and the Chinese yuan depreciated by approximately 6% and 5% respectively against the U.S. dollar. However, the euro and the British pound appreciated against the U.S. dollar by approximately 8% and 6%, respectively.

The negative performance of some foreign currencies meant hedging activity contributed to the Index’s return. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the negative impact of foreign currency performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the Index’s return measured in local currencies.

Portfolio Information

 

PORTFOLIO COMPOSITION

 

   
Investment Type   Percent of
Net Assets
 

Investment Companies

    99.8

Short-term Investments

    7.0  
Forward foreign currency exchange contracts, net cumulative depreciation     (0.9

Other assets less liabilities

    (5.9

SECTOR ALLOCATION (of the UNDERLYING FUND)

 

   
Sector   Percent of
Total Investment
(a)
 

Financials

    20.9

Industrials

    13.2  

Consumer Discretionary

    12.3  

Information Technology

    11.5  

Health Care

    9.4  

Consumer Staples

    8.5  

Materials

    7.9  

Communication Services

    5.6  

Energy

    5.5  

Utilities

    3.1  

Real Estate

    2.1  

 

  (a)

Excludes money market funds.

 

 

 

6  

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


Fund Summary as of July 31, 2023     iShares® Currency Hedged MSCI EAFE ETF

 

Investment Objective

The iShares Currency Hedged MSCI EAFE ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization equities in Europe, Australasia, and the Far East while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI EAFE 100% Hedged to 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI EAFE ETF.

Performance

 

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

Fund NAV

     16.89      8.34     8.56       16.89      49.25      118.11

Fund Market

     16.98        8.35       8.55         16.98        49.32        118.05  

Index

     17.39        8.36       8.60               17.39        49.43        118.89  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSETVALUE)

 

LOGO

The inception date of the Fund was January 31, 2014. The first day of secondary market trading was February 4, 2014.

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          $  1,084.10          $   0.16       $  1,000.00          $  1,024.60          $   0.15          0.03

 

  (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. The fees and expenses of the underlying funds in which the Fund invests are not included in the Fund’s annualized expense ratio.

 

 

 

F U N D  S U M M A R Y

  7


Fund Summary as of July 31, 2023  (continued)    iShares® Currency Hedged MSCI EAFE ETF

 

Portfolio Management Commentary

Large- and mid-capitalization stocks in developed markets outside the U.S. and Canada advanced for the reporting period in U.S. dollar terms, 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, as higher net fees and trading profits boosted earnings in the capital goods industry. Stocks in the financials sector also gained, 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 consumer discretionary sector advanced amid strength among automobile manufacturers, which benefited from the announcement of plans for the development of a line of all-electric vehicles.

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, stocks in the industrials sector were buoyed by strong earnings guidance amid easing supply chain bottlenecks. The information technology sector also advanced, benefiting from strong sales of cloud-based enterprise software.

U.K. stocks also contributed to the Index’s performance, despite slow economic growth during the reporting period. The financials sector was the leading source of strength, as cost cutting and high interest rates benefited the banking industry.

In terms of currency performance, the U.S. dollar was mixed against foreign currencies during the reporting period. Increasing interest rates and a robust economy drove the strength of the U.S. dollar against some foreign currencies. The Japanese yen and the Australian dollar depreciated by approximately 6% and 4% respectively against the U.S. dollar. However, the euro and the British pound appreciated against the U.S. dollar by approximately 8% and 6%, respectively.

The negative performance of some foreign currencies meant hedging activity contributed to the Index’s return. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the negative impact of foreign currency performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the Index’s return measured in local currencies.

Portfolio Information

 

PORTFOLIO COMPOSITION

 

   
Investment Type   Percent of
Net Assets
 

Investment Companies

    99.7

Short-term Investments

    22.9  
Forward foreign currency exchange contracts, net cumulative depreciation     (1.0

Other assets less liabilities

    (21.6

SECTOR ALLOCATION (of the UNDERLYING FUND)

 

   
Sector   Percent of
Total Investment
(a)
 

Financials

    18.7

Industrials

    16.2  

Health Care

    13.0  

Consumer Discretionary

    12.5  

Consumer Staples

    9.9  

Information Technology

    8.0  

Materials

    7.6  

Energy

    4.3  

Communication Services

    4.1  

Utilities

    3.4  

Real Estate

    2.3  

 

  (a) 

Excludes money market funds.

 

 

 

8  

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


Fund Summary as of July 31, 2023     iShares® Currency Hedged MSCI EAFE Small-Cap ETF

 

Investment Objective

The iShares Currency Hedged MSCI EAFE Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization developed market equities, excluding the U.S. and Canada, while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI EAFE Small-Cap 100% Hedged to 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI EAFE Small-Cap ETF.

Performance

 

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

Fund NAV

     10.67      6.20     8.16       10.67      35.06      88.65

Fund Market

     10.85        6.19       8.16         10.85        35.03        88.68  

Index

     11.21        6.36       8.26               11.21        36.08        89.97  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSETVALUE)

 

LOGO

The inception date of the Fund was June 29, 2015. The first day of secondary market trading was July 1, 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          $  1,059.10          $   0.15       $  1,000.00          $  1,024.60          $   0.15          0.03

 

  (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. The fees and expenses of the underlying funds in which the Fund invests are not included in the Fund’s annualized expense ratio.

 

 

 

F U N D  S U M M A R Y

  9


Fund Summary as of July 31, 2023  (continued)    iShares® Currency Hedged MSCI EAFE Small-Cap ETF

 

Portfolio Management Commentary

Small-capitalization developed market stocks outside the U.S. and Canada advanced for the reporting period in U.S. dollar terms, 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 consumer discretionary sector contributed the most to the Index’s return. Consumer spending in Japan rose during the reporting period, although it remained below pre-pandemic levels. However, the improving economy and decelerating inflation helped drive improved consumer confidence later in the reporting period, and solid exports favored makers of consumer goods selling abroad. The capital goods industry in the industrials sector also contributed amid strong earnings guidance. Within the information technology sector, the semiconductors and semiconductor equipment industry advanced due in part to government efforts to increase domestic semiconductor manufacturing with subsidies and incentives.

Italian stocks contributed notably to the Index’s performance, as investors were attracted by their relatively low valuations while inflation declined substantially and unemployment hit a 14-year low. Banking stocks in the financials sector gained the most, helped by higher interest rates as the ECB increased interest rates to the highest levels since 2008.

Swiss stocks also contributed amid strength in the industrials sector. Continued strong demand for improved energy efficiency and high-quality drinking water benefited the sales of casting and piping products, bolstering the machinery industry’s sales. Germany’s industrials sector was also a source of strength, as supply chain improvements drove increased profits from sales of industrial trucks in the construction machinery industry.

In terms of currency performance, the U.S. dollar was mixed against foreign currencies during the reporting period. Increasing interest rates and a robust economy drove the strength of the U.S. dollar against some foreign currencies. The Japanese yen and the Australian dollar depreciated by approximately 6% and 4% respectively against the U.S. dollar. However, the euro and the British pound appreciated against the U.S. dollar by approximately 8% and 6%, respectively.

The negative performance of some foreign currencies meant hedging activity contributed to the Index’s return. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the negative impact of foreign currency performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the Index’s return measured in local currencies.

Portfolio Information

 

PORTFOLIO COMPOSITION

 

   
Investment Type   Percent of
Net Assets
 

Investment Companies

    99.7

Short-term Investments

    0.1  
Forward foreign currency exchange contracts, net cumulative depreciation     (1.1

Other assets less liabilities

    1.3  

SECTOR ALLOCATION (of the UNDERLYING FUND)

 

   
Sector   Percent of
Total Investment
(a)
 

Industrials

    23.2

Consumer Discretionary

    13.3  

Financials

    11.5  

Information Technology

    10.1  

Real Estate

    10.1  

Materials

    9.4  

Health Care

    6.5  

Consumer Staples

    6.1  

Communication Services

    4.2  

Energy

    2.9  

Utilities

    2.7  

 

  (a) 

Excludes money market funds.

 

 

 

10  

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Fund Summary as of July 31, 2023     iShares® MSCI ACWI ex U.S. ETF

 

Investment Objective

The iShares MSCI ACWI ex U.S. ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization non-U.S. equities, as represented by the MSCI ACWI ex USA 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

     12.96      3.73     4.62       12.96      20.08      57.04

Fund Market

     12.68        3.73       4.59         12.68        20.11        56.69  

Index

     13.42        3.85       4.72               13.42        20.80        58.54  

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          $  1,048.90          $   1.68       $  1,000.00          $  1,023.20          $   1.66          0.33

 

  (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 ACWI ex U.S. ETF

 

Portfolio Management Commentary

International stocks advanced notably during 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 also 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, as higher net fees and trading profits boosted earnings in the capital goods industry. 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 contributed to the Index’s return. While economic growth in the Eurozone was tepid, inflation fell 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, stocks in the industrials sector were buoyed by strong earnings guidance amid easing supply chain bottlenecks. The German information technology sector contributed amid robust sales of cloud-based enterprise software.

U.K. stocks also contributed to the Index’s performance, despite slow economic growth during the reporting period. The financials sector was the leading source of strength, as cost cutting and high interest rates benefited the banking industry. Swiss stocks also contributed as the healthcare sector was bolstered by the pharmaceuticals industry, where strong earnings enabled a significant stock buyback program. Swiss financials stocks also gained as the insurance industry benefited from robust profit growth and increased gross written premiums.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector   Percent of  
Total Investments(a)

Financials

  20.9%

Industrials

  13.2  

Consumer Discretionary

  12.3  

Information Technology

  11.5  

Health Care

  9.4  

Consumer Staples

  8.5  

Materials

  7.9  

Communication Services

  5.6  

Energy

  5.5  

Utilities

  3.1  

Real Estate

  2.1  

 

  (a) 

Excludes money market funds.

 

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region   Percent of  
Total Investments(a)

Japan

  14.4%

United Kingdom

  9.5  

China

  8.7  

France

  7.7  

Canada

  7.5  

Switzerland

  6.7  

Germany

  5.4  

Australia

  4.8  

Taiwan

  4.2  

India

  4.0  

 

 

12  

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

 

Investment Objective

The iShares MSCI EAFE ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization developed market equities, excluding the U.S. and Canada, as represented by the MSCI EAFE 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

     15.94      4.54     5.15       15.94      24.85      65.27

Fund Market

     15.85        4.56       5.13         15.85        24.99        64.84  

Index

     16.79        4.55       5.20               16.79        24.89        66.06  

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          $  1,060.10          $   1.69       $  1,000.00          $  1,023.20          $   1.66          0.33

 

  (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

  13


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

 

Portfolio Management Commentary

Large- and mid-capitalization 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, boosting investor confidence and reorienting focus on corporate profits.

Among Japanese stocks, the industrials sector contributed the most to the Index’s return, as higher net fees and trading profits boosted earnings in the capital goods industry. Stocks in the financials sector also gained, 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 consumer discretionary sector advanced amid strength among automobile manufacturers, which benefited from the announcement of plans for the development of a line of all-electric vehicles.

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, stocks in the industrials sector were buoyed by strong earnings guidance amid easing supply chain bottlenecks. The information technology sector also advanced, benefiting from strong sales of cloud-based enterprise software.

U.K. stocks also contributed to the Index’s performance, despite slow economic growth during the reporting period. The financials sector was the leading source of strength, as cost cutting and high interest rates benefited the banking industry.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector   Percent of  
Total Investments(a)

Financials

  18.7%

Industrials

  16.2  

Health Care

  13.0  

Consumer Discretionary

  12.5  

Consumer Staples

  9.9  

Information Technology

  8.0  

Materials

  7.6  

Energy

  4.3  

Communication Services

  4.1  

Utilities

  3.4  

Real Estate

  2.3  

 

  (a)

Excludes money market funds.

 

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region   Percent of  
Total Investments(a)

Japan

  22.4%

United Kingdom

  14.9  

France

  12.0  

Switzerland

  10.5  

Germany

  8.5  

Australia

  7.4  

Netherlands

  4.6  

Sweden

  3.2  

Denmark

  3.0  

Spain

  2.5  

 

 

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Fund Summary as of July 31, 2023     iShares® MSCI EAFE Small-Cap ETF

 

Investment Objective

The iShares MSCI EAFE Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization developed market equities, excluding the U.S. and Canada, as represented by the MSCI EAFE Small Cap 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

     7.12      1.97     5.89       7.12      10.25      77.24

Fund Market

     7.11        1.97       5.85         7.11        10.24        76.56  

Index

     7.93        2.05       6.03               7.93        10.70        79.54  

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          $  1,019.70          $   2.00       $  1,000.00          $  1,022.80          $   2.01          0.40

 

  (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

  15


Fund Summary as of July 31, 2023  (continued)    iShares® MSCI EAFE Small-Cap ETF

 

Portfolio Management Commentary

Small-capitalization developed market stocks 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, boosting investor confidence and reorienting focus on corporate profits.

Among Japanese stocks, the consumer discretionary sector contributed the most to the Index’s return. Consumer spending in Japan rose during the reporting period, although it remained below pre-pandemic levels. However, the improving economy and decelerating inflation helped drive improved consumer confidence later in the reporting period, and solid exports favored makers of consumer goods selling abroad. The capital goods industry in the industrials sector also contributed, as the low value of the Japanese yen relative to the U.S. dollar drove strong earnings guidance. Within the information technology sector, the semiconductors and semiconductor equipment industry advanced amid government efforts to increase domestic semiconductor manufacturing with subsidies and incentives.

Italian stocks contributed notably to the Index’s performance, as investors were attracted by their relatively low valuations while inflation declined substantially and unemployment hit a 14-year low. Banking stocks in the financials sector gained the most, helped by higher interest rates as the ECB increased interest rates to the highest levels since 2008.

Swiss stocks also contributed amid strength in the industrials sector and the growing value of the Swiss franc relative to the U.S. dollar. Continued strong demand for improved energy efficiency and high-quality drinking water benefited the sales of casting and piping products, bolstering the machinery industry’s sales. Germany’s industrials sector was also a source of strength, as supply chain improvements drove increased profits from sales of industrial trucks in the construction machinery industry.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector   Percent of  
Total Investments(a)

Industrials

  23.2%

Consumer Discretionary

  13.3  

Financials

  11.5  

Real Estate

  10.1  

Information Technology

  10.1  

Materials

  9.4  

Health Care

  6.5  

Consumer Staples

  6.1  

Communication Services

  4.2  

Energy

  2.9  

Utilities

  2.7  

 

  (a)

Excludes money market funds.

 

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region   Percent of  
Total Investments(a)

Japan

  31.9%

United Kingdom

  15.1  

Australia

  9.9  

Sweden

  5.3  

Germany

  5.0  

Switzerland

  4.5  

France

  3.9  

Italy

  3.4  

Israel

  2.8  

Netherlands

  2.4  

 

 

16  

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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

  17


Schedule of Investments  

July 31, 2023

  

iShares® Currency Hedged MSCI ACWI ex U.S. ETF

(Percentages shown are based on Net Assets)

 

 

Security   Shares     Value  

 

 

Investment Companies

   
Exchange-Traded Funds — 99.8%            

iShares MSCI ACWI ex U.S. ETF(a)(b)

    3,516,869     $ 179,887,849  
   

 

 

 

Total Investment Companies
(Cost: $164,264,335)

      179,887,849  
   

 

 

 
Short-Term Securities            
Money Market Funds — 7.0%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.42%(a)(c)(d)

    12,674,083       12,677,885  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.22%(a)(c)

    70,000       70,000  
   

 

 

 

Total Short-Term Securities — 7.0%
(Cost: $12,746,618)

 

    12,747,885  
   

 

 

 

Total Investments in Securities — 106.8%
(Cost: $177,010,953)

 

    192,635,734  

Liabilities in Excess of Other Assets — (6.8)%

 

    (12,340,515
   

 

 

 

Net Assets — 100.0%

    $  180,295,219  
   

 

 

 
(a) 

Affiliate of the Fund.

 

(b) 

All or a portion of this security is on loan.

 

(c) 

Annualized 7-day yield as of period end.

 

(d) 

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

  $      $ 12,651,688 (a)    $     $ 24,930     $ 1,267      $ 12,677,885        12,674,083      $ 43,172 (b)    $  —    
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    210,000              (140,000 )(a)                   70,000        70,000        13,510          
 

iShares MSCI ACWI ex U.S. ETF

    120,412,275        83,395,280       (43,561,775     (5,443,821     25,085,890        179,887,849        3,516,869        3,834,732          
          

 

 

   

 

 

    

 

 

       

 

 

   

 

 

   
           $  (5,418,891   $  25,087,157      $ 192,635,734         $ 3,891,414     $    
          

 

 

   

 

 

    

 

 

       

 

 

   

 

 

   

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Forward Foreign Currency Exchange Contracts

 

             
 Currency Purchased           Currency Sold     Counterparty   Settlement Date             

Unrealized

Appreciation

(Depreciation)

 

AUD

     217,000       USD        144,595     Bank of America N.A.     08/03/23         $   1,169  

AUD

     196,000       USD        131,026     Deutsche Bank Securities Inc.     08/03/23         632  

BRL

     13,282,000       USD         2,790,568     Morgan Stanley & Co. International PLC     08/03/23         17,656  

 

 

18  

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Schedule of Investments  (continued)

July 31, 2023

  

iShares® Currency Hedged MSCI ACWI ex U.S. ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

 

             
 Currency Purchased           Currency Sold     Counterparty   Settlement Date          

Unrealized

Appreciation

(Depreciation)

 

CAD

    449,000       USD        339,270     Morgan Stanley & Co. International PLC     08/03/23         $   1,239  

CHF

    335,000       USD        375,562     Bank of America N.A.     08/03/23         8,590  

CHF

    197,000       USD        220,463     Morgan Stanley & Co. International PLC     08/03/23         5,441  

CLP

    248,989,000       USD        294,976     Morgan Stanley & Co. International PLC     08/03/23         1,780  

CNH

    144,000       USD        19,856     BNP Paribas SA     08/03/23         292  

CNH

    268,000       USD        37,038     UBS AG     08/03/23         460  

DKK

    1,186,000       USD        174,092     Bank of America N.A.     08/03/23         911  

DKK

    401,000       USD        58,852     State Street Bank and Trust Co.     08/03/23         319  

EUR

    510,000       USD        557,214     Bank of America N.A.     08/03/23         3,557  

EUR

    561,000       USD        612,968     Barclays Bank PLC     08/03/23         3,881  

GBP

    354,000       USD        450,091     Bank of America N.A.     08/03/23         4,217  

GBP

    207,000       USD        262,670     Barclays Bank PLC     08/03/23         2,985  

HKD

    1,772,000       USD        226,261     Bank of America N.A.     08/03/23         951  

HKD

    1,695,000       USD        216,468     State Street Bank and Trust Co.     08/03/23         870  

IDR

    14,591,073,000       USD        965,976     Morgan Stanley & Co. International PLC     08/03/23         1,512  

ILS

    126,000       USD        33,980     Bank of America N.A.     08/03/23         291  

ILS

    10,000       USD        2,698     State Street Bank and Trust Co.     08/03/23         22  

ILS

    26,000       USD        7,053     UBS AG     08/03/23         19  

INR

    577,059,000       USD        7,014,636     Morgan Stanley & Co. International PLC     08/03/23         1,553  

JPY

    57,473,000       USD        399,354     Barclays Bank PLC     08/03/23         4,694  

JPY

    8,517,000       USD        59,295     Deutsche Bank Securities Inc.     08/03/23         581  

KRW

    117,290,000       USD        89,132     JPMorgan Chase Bank N.A.     08/03/23         2,858  

KRW

    8,444,139,000       USD        6,610,099     Morgan Stanley & Co. International PLC     08/03/23         12,562  

MXN

    370,000       USD        21,571     HSBC Bank PLC     08/03/23         521  

MXN

    5,000       USD        290     State Street Bank and Trust Co.     08/03/23         8  

MYR

    3,085,000       USD        681,429     Morgan Stanley & Co. International PLC     08/03/23         2,965  

MYR

    19,000       USD        4,079     State Street Bank and Trust Co.     08/03/23         136  

NOK

    144,000       USD        13,456     Bank of America N.A.     08/03/23         753  

NOK

    120,000       USD        11,219     State Street Bank and Trust Co.     08/03/23         622  

NZD

    21,000       USD        12,865     BNP Paribas SA     08/03/23         179  

NZD

    6,000       USD        3,692     Morgan Stanley & Co. International PLC     08/03/23         35  

SEK

    553,000       USD        51,267     Bank of America N.A.     08/03/23         1,271  

SEK

    625,000       USD        57,710     State Street Bank and Trust Co.     08/03/23         1,667  

SGD

    5,000       USD        3,702     Barclays Bank PLC     08/03/23         59  

SGD

    29,000       USD        21,506     JPMorgan Chase Bank N.A.     08/03/23         303  

SGD

    10,000       USD        7,397     Morgan Stanley & Co. International PLC     08/03/23         124  

THB

    1,485,000       USD        42,158     JPMorgan Chase Bank N.A.     08/03/23         1,227  

THB

    520,000       USD        14,911     UBS AG     08/03/23         281  

TWD

    236,092,000       USD        7,500,937     Morgan Stanley & Co. International PLC     08/03/23         9,818  

USD

    53,542       AUD        79,000     Deutsche Bank Securities Inc.     08/03/23         475  

USD

    84,326       CAD        111,000     JPMorgan Chase Bank N.A.     08/03/23         147  

USD

    73,482       CHF        63,000     State Street Bank and Trust Co.     08/03/23         1,239  

 

 

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® Currency Hedged MSCI ACWI ex U.S. ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

 

             
 Currency Purchased            Currency Sold     Counterparty      Settlement Date         

Unrealized

Appreciation

(Depreciation)

 

USD

     312,892        CLP      251,936,000     Morgan Stanley & Co. International PLC        08/03/23         $   12,624  

USD

     1,278        CLP      1,029,000     State Street Bank and Trust Co.        08/03/23         52  

USD

     21,972        DKK      146,000     BNP Paribas SA        08/03/23         428  

USD

     250,014        EUR      223,000     Bank of America N.A.        08/03/23         4,814  

USD

     51,348        GBP      40,000     Barclays Bank PLC        08/03/23         14  

USD

     104,822        GBP      81,000     State Street Bank and Trust Co.        08/03/23         870  

USD

     23,588        IDR      355,145,000     JPMorgan Chase Bank N.A.        08/03/23         40  

USD

     955,565        IDR      14,372,332,000     Morgan Stanley & Co. International PLC        08/03/23         2,581  

USD

     3,067        ILS      11,000     Barclays Bank PLC        08/03/23         75  

USD

     210,628        INR      17,302,000     JPMorgan Chase Bank N.A.        08/03/23         261  

USD

     6,895,630        INR      566,450,000     Morgan Stanley & Co. International PLC        08/03/23         8,431  

USD

     242,949        JPY      34,051,000     State Street Bank and Trust Co.        08/03/23         3,563  

USD

     41,760        KRW      52,845,000     Morgan Stanley & Co. International PLC        08/03/23         314  

USD

     4,685        NOK      47,000     State Street Bank and Trust Co.        08/03/23         47  

USD

     1,252        NZD      2,000     State Street Bank and Trust Co.        08/03/23         10  

USD

     23,872        SEK      245,000     State Street Bank and Trust Co.        08/03/23         596  

USD

     9,062        SGD      12,000     State Street Bank and Trust Co.        08/03/23         37  

USD

     6,210        THB      211,000     UBS AG        08/03/23         45  

USD

     909        TRY      24,000     Citibank N.A.        08/03/23         19  

USD

     269,433        TRY      7,097,000     UBS AG        08/03/23         6,284  

USD

     97,293        TWD      3,033,000     JPMorgan Chase Bank N.A.        08/03/23         804  

USD

     7,634,062        TWD      237,962,000     Morgan Stanley & Co. International PLC        08/03/23         63,817  

ZAR

     466,000        USD      24,805     JPMorgan Chase Bank N.A.        08/03/23         1,250  

ZAR

     112,000        USD      5,941     State Street Bank and Trust Co.        08/03/23         321  

IDR

     47,928,000        USD      3,172     Morgan Stanley & Co. International PLC        09/06/23         1  

USD

     167,991        AUD      249,000     Bank of America N.A.        09/06/23         537  

USD

     8,387,600        AUD      12,432,000     BNP Paribas SA        09/06/23         26,999  

USD

     201,269        CAD      265,000     HSBC Bank PLC        09/06/23         207  

USD

     13,134,092        CAD      17,280,000     Morgan Stanley & Co. International PLC        09/06/23         23,347  

USD

     146,699        CAD      193,000     State Street Bank and Trust Co.        09/06/23         266  

USD

     56,732        CHF      49,000     Bank of America N.A.        09/06/23         339  

USD

     11,595,341        CHF      10,015,000     Morgan Stanley & Co. International PLC        09/06/23         69,226  

USD

     50,727        CHF      44,000     State Street Bank and Trust Co.        09/06/23         88  

USD

     13,762        CNH      98,000     Bank of America N.A.        09/06/23         8  

USD

     2,366,871        CNH      16,853,000     Citibank N.A.        09/06/23         1,558  

USD

     3,408,514        DKK      22,992,000     Bank of America N.A.        09/06/23         9,029  

USD

     553,302        EUR      501,000     Bank of America N.A.        09/06/23         1,528  

USD

     385,905        EUR      350,000     HSBC Bank PLC        09/06/23         434  

USD

     38,815,102        EUR      35,146,000     State Street Bank and Trust Co.        09/06/23         107,209  

USD

     16,924,873        GBP      13,152,000     Bank of America N.A.        09/06/23         43,461  

USD

     150,273        GBP      117,000     Deutsche Bank Securities Inc.        09/06/23         96  

USD

     450,176        HKD      3,510,000     Bank of America N.A.        09/06/23         3  

USD

     13,768,683        HKD      107,352,000     BNP Paribas SA        09/06/23         300  

USD

     475,790        ILS      1,741,000     Bank of America N.A.        09/06/23         1,661  

 

 

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® Currency Hedged MSCI ACWI ex U.S. ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

 

             
 Currency Purchased           Currency Sold     Counterparty   Settlement Date        

Unrealized

Appreciation

(Depreciation)

 

USD

    25,811,037       JPY        3,647,466,000     Bank of America N.A.   09/06/23       $   33,481  

USD

    158,565       JPY        22,421,000     JPMorgan Chase Bank N.A.   09/06/23       110  

USD

    136,469       KRW        173,915,000     Morgan Stanley & Co. International PLC   09/06/23       101  

USD

    2,737       MXN        46,000     Bank of America N.A.   09/06/23       7  

USD

    1,395,703       MXN        23,458,000     Citibank N.A.   09/06/23       3,392  

USD

    15,442       MXN        260,000     JPMorgan Chase Bank N.A.   09/06/23       10  

USD

    25,358       MYR        114,000     Morgan Stanley & Co. International PLC   09/06/23       10  

USD

    758,100       NOK        7,660,000     Bank of America N.A.   09/06/23       1,396  

USD

    3,460       NOK        35,000     State Street Bank and Trust Co.   09/06/23       3  

USD

    1,865       NZD        3,000     Citibank N.A.   09/06/23       2  

USD

    232,149       NZD        373,000     UBS AG   09/06/23       465  

USD

    31,747       SEK        333,000     BNP Paribas SA   09/06/23       59  

USD

    3,724,870       SEK        39,075,000     UBS AG   09/06/23       6,519  

USD

    50,542       SGD        67,000     Bank of America N.A.   09/06/23       74  

USD

    1,406,925       SGD        1,865,000     JPMorgan Chase Bank N.A.   09/06/23       2,094  

USD

    29,403       SGD        39,000     State Street Bank and Trust Co.   09/06/23       26  

USD

    45,584       THB        1,551,000     Bank of America N.A.   09/06/23       126  

USD

    953,000       THB        32,422,000     Citibank N.A.   09/06/23       2,744  

USD

    4,167       THB        142,000     UBS AG   09/06/23       5  

USD

    16,132       TRY        443,000     State Street Bank and Trust Co.   09/06/23       25  

USD

    256,077       TRY        7,040,000     UBS AG   09/06/23       123  

USD

    66,130       TWD        2,077,000     Morgan Stanley & Co. International PLC   09/06/23       6  

USD

    73,990       ZAR        1,320,000     Bank of America N.A.   09/06/23       413  

USD

    30,620       ZAR        548,000     State Street Bank and Trust Co.   09/06/23       75  

USD

    1,630,275       ZAR        29,084,000     UBS AG   09/06/23       9,145  
                  

 

 

 
                      554,877  
                  

 

 

 

AUD

    12,409,000       USD        8,362,053     BNP Paribas SA   08/03/23       (26,641

CAD

    17,280,000       USD        13,128,624     Morgan Stanley & Co. International PLC   08/03/23       (23,944

CHF

    10,015,000       USD        11,553,325     Morgan Stanley & Co. International PLC   08/03/23       (68,892

CLP

    3,976,000       USD        4,964     Morgan Stanley & Co. International PLC   08/03/23       (225

CNH

    16,853,000       USD        2,358,090     Citibank N.A.   08/03/23       (1,359

DKK

    22,992,000       USD        3,401,757     Bank of America N.A.   08/03/23       (9,110

EUR

    35,146,000       USD        38,752,032     State Street Bank and Trust Co.   08/03/23       (107,155

GBP

    12,963,000       USD        16,679,194     Bank of America N.A.   08/03/23       (43,046

HKD

    107,352,000       USD        13,765,369     BNP Paribas SA   08/03/23       (335

IDR

    230,398,000       USD        15,316     Morgan Stanley & Co. International PLC   08/03/23       (39

ILS

    1,673,000       USD        456,672     Bank of America N.A.   08/03/23       (1,622

INR

    10,480,000       USD        127,785     Morgan Stanley & Co. International PLC   08/03/23       (364

JPY

    3,647,466,000       USD        25,676,038     Bank of America N.A.   08/03/23       (33,563

MXN

    23,458,000       USD        1,404,235     Citibank N.A.   08/03/23       (3,575

NOK

    7,602,000       USD        751,481     Bank of America N.A.   08/03/23       (1,380

NZD

    373,000       USD        232,140     UBS AG   08/03/23       (469

SEK

    39,075,000       USD        3,718,772     UBS AG   08/03/23       (6,499

 

 

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

  21


Schedule of Investments  (continued)

July 31, 2023

  

iShares® Currency Hedged MSCI ACWI ex U.S. ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

             
 Currency Purchased           Currency Sold     Counterparty   Settlement Date        

Unrealized

Appreciation

(Depreciation)

 

SGD

     1,865,000       USD        1,404,648     JPMorgan Chase Bank N.A.   08/03/23       $   (2,062

THB

     32,422,000       USD        949,817     Citibank N.A.   08/03/23       (2,601

TRY

     7,169,000          USD        266,180     UBS AG   08/03/23       (361

TWD

     4,903,000       USD        157,625     Morgan Stanley & Co. International PLC   08/03/23       (1,647

USD

     8,463,338       AUD        12,704,000     BNP Paribas SA   08/03/23       (70,232

USD

     26,105       AUD        39,000     HSBC Bank PLC   08/03/23       (92

USD

     2,682,285       BRL        13,016,000     Morgan Stanley & Co. International PLC   08/03/23       (69,699

USD

     54,858       BRL        266,000     State Street Bank and Trust Co.   08/03/23       (1,383

USD

     41,438       CAD        55,000     Barclays Bank PLC   08/03/23       (273

USD

     13,254,052       CAD        17,532,000     HSBC Bank PLC   08/03/23       (41,738

USD

     23,425       CAD        31,000     Morgan Stanley & Co. International PLC   08/03/23       (84

USD

     36,080       CHF        32,000     Barclays Bank PLC   08/03/23       (615

USD

     11,717,033       CHF        10,452,000     State Street Bank and Trust Co.   08/03/23       (268,518

USD

     83,388       CNH        605,000     BNP Paribas SA   08/03/23       (1,264

USD

     2,272,546       CNH        16,498,000     Citibank N.A.   08/03/23       (35,872

USD

     22,410       CNY        162,000     State Street Bank and Trust Co.   08/03/23       (268

USD

     10,975       DKK        75,000     Bank of America N.A.   08/03/23       (92

USD

     10,911       DKK        74,000     HSBC Bank PLC   08/03/23       (8

USD

     3,564,209       DKK        24,284,000     State Street Bank and Trust Co.   08/03/23       (19,082

USD

     122,061       EUR        112,000     Barclays Bank PLC   08/03/23       (1,089

USD

     120,778       EUR        110,000     BNP Paribas SA   08/03/23       (172

USD

     2,186       EUR        2,000     HSBC Bank PLC   08/03/23       (13

USD

     39,078,725       EUR        35,770,000     State Street Bank and Trust Co.   08/03/23       (252,274

USD

     52,231       GBP        41,000     HSBC Bank PLC   08/03/23       (387

USD

     16,991,694       GBP        13,362,000     UBS AG   08/03/23       (156,513

USD

     13,444,492       HKD        105,300,000     JPMorgan Chase Bank N.A.   08/03/23       (57,428

USD

     43,190       HKD        338,000     Morgan Stanley & Co. International PLC   08/03/23       (150

USD

     617,185       HKD        4,834,000     State Street Bank and Trust Co.   08/03/23       (2,647

USD

     44,371       HKD        347,000     UBS AG   08/03/23       (122

USD

     6,189       IDR        93,994,000     Morgan Stanley & Co. International PLC   08/03/23       (43

USD

     489,154       ILS        1,814,000     Citibank N.A.   08/03/23       (4,247

USD

     2,700       ILS        10,000     State Street Bank and Trust Co.   08/03/23       (20

USD

     45,760       INR        3,787,000     Morgan Stanley & Co. International PLC   08/03/23       (285

USD

     24,519,987       JPY        3,528,653,000     Bank of America N.A.   08/03/23       (287,206

USD

     966,079       JPY        139,027,000     Citibank N.A.   08/03/23       (11,311

USD

     81,644       JPY        11,725,000     Deutsche Bank Securities Inc.   08/03/23       (785

USD

     6,465,775       KRW        8,508,584,000     Morgan Stanley & Co. International PLC   08/03/23       (207,430

USD

     4,355       MXN        75,000     Barclays Bank PLC   08/03/23       (123

USD

     1,341,777       MXN        23,138,000     Citibank N.A.   08/03/23       (39,776

USD

     8,771       MXN        147,000     Deutsche Bank Securities Inc.   08/03/23       (6

USD

     23,076       MXN        398,000     Morgan Stanley & Co. International PLC   08/03/23       (688

USD

     4,330       MXN        75,000     State Street Bank and Trust Co.   08/03/23       (148

USD

     666,359       MYR        3,104,000     Morgan Stanley & Co. International PLC   08/03/23       (22,249

 

 

22  

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® Currency Hedged MSCI ACWI ex U.S. ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

             
 Currency Purchased           Currency Sold     Counterparty   Settlement Date    

Unrealized

Appreciation

(Depreciation)

 

USD

     721,426       NOK        7,721,000     Citibank N.A.   08/03/23             $  (40,416

USD

     9,158       NOK        98,000     State Street Bank and Trust Co.   08/03/23         (512

USD

     1,841       NZD        3,000     Bank of America N.A.   08/03/23         (22

USD

     1,237          NZD        2,000     HSBC Bank PLC   08/03/23         (6

USD

     240,740       NZD        393,000     UBS AG   08/03/23         (3,352

USD

     3,671,194       SEK        39,603,000     Bank of America N.A.   08/03/23         (91,242

USD

     22,813       SEK        248,000     BNP Paribas SA   08/03/23         (748

USD

     14,580       SEK        157,000     Morgan Stanley & Co. International PLC   08/03/23         (335

USD

     1,403,166       SGD        1,897,000     State Street Bank and Trust Co.   08/03/23         (23,486

USD

     6,041       THB        212,000     Barclays Bank PLC   08/03/23         (153

USD

     961,993       THB        33,917,000     Citibank N.A.   08/03/23         (28,899

USD

     2,470       THB        87,000     UBS AG   08/03/23         (72

USD

     1,773       TRY        48,000     Citibank N.A.   08/03/23         (7

USD

     6,862       ZAR        130,000     Bank of America N.A.   08/03/23         (407

USD

     10,608       ZAR        190,000     Barclays Bank PLC   08/03/23         (16

USD

     1,538,929       ZAR        29,156,000     Morgan Stanley & Co. International PLC   08/03/23         (91,234

USD

     4,865       ZAR        92,000     State Street Bank and Trust Co.   08/03/23         (279

USD

     4,912       ZAR        94,000     UBS AG   08/03/23         (344

ZAR

     29,084,000       USD        1,635,289     UBS AG   08/03/23         (9,151

DKK

     124,000       USD        18,383     Bank of America N.A.   09/06/23         (49

DKK

     50,000       USD        7,400     JPMorgan Chase Bank N.A.   09/06/23         (7

JPY

     61,603,000       USD        435,935     Bank of America N.A.   09/06/23         (571

NZD

     4,000       USD        2,490     Bank of America N.A.   09/06/23         (5

SEK

     486,000       USD        46,331     Bank of America N.A.   09/06/23         (84

TWD

     135,000       USD        4,301     Morgan Stanley & Co. International PLC   09/06/23         (4

USD

     2,762,562       BRL        13,225,000     Morgan Stanley & Co. International PLC   09/06/23         (17,037

USD

     327,063       CLP        276,916,000     Morgan Stanley & Co. International PLC   09/06/23         (1,765

USD

     72,465       CNY        516,000     State Street Bank and Trust Co.   09/06/23         (106

USD

     377,325       HKD        2,942,000     BNP Paribas SA   09/06/23          

USD

     971,992       IDR        14,700,416,000     Morgan Stanley & Co. International PLC   09/06/23         (1,203

USD

     4,356       ILS        16,000     Barclays Bank PLC   09/06/23         (1

USD

     7,204,182       INR        593,358,000     Morgan Stanley & Co. International PLC   09/06/23         (4,372

USD

     6,461,391       KRW        8,249,436,000     Morgan Stanley & Co. International PLC   09/06/23         (7,070

USD

     671,572       MYR        3,030,000     Morgan Stanley & Co. International PLC   09/06/23         (2,138

USD

     42,607       TRY        1,172,000     Bank of America N.A.   09/06/23         (3

USD

     7,515,742       TWD        236,092,000     Morgan Stanley & Co. International PLC   09/06/23         (549
                     

 

 

 
                        (2,214,866
                     

 

 

 
                         $(1,659,989
                     

 

 

 

 

 

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® Currency Hedged MSCI ACWI ex U.S. 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

             

Forward foreign currency exchange contracts

             

Unrealized appreciation on forward foreign currency exchange contracts

  $     $     $     $ 554,877     $     $     $ 554,877  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities — Derivative Financial Instruments

             

Forward foreign currency exchange contracts

             

Unrealized depreciation on forward foreign currency exchange contracts

  $     $     $     $ 2,214,866     $     $     $ 2,214,866  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

             

Forward foreign currency exchange contracts

  $     $     $     $ 1,061,199     $     $     $ 1,061,199  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

             

Forward foreign currency exchange contracts

  $     $     $     $ (1,823,885   $     $     $ (1,823,885
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Forward foreign currency exchange contracts:

  

Average amounts purchased — in USD

   $ 158,637,014   

Average amounts sold — in USD

   $ 312,652,778   

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

Derivative Financial Instruments - Offsetting as of Period End

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

 

 

 
     Assets        Liabilities  

 

 

Derivative Financial Instruments:

       

Forward foreign currency exchange contracts

   $  554,877        $  2,214,866  
  

 

 

      

 

 

 

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

     554,877          2,214,866  

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

               
  

 

 

      

 

 

 

Total derivative assets and liabilities subject to an MNA

     554,877          2,214,866  
  

 

 

      

 

 

 

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

 

 

 

 
    Counterparty  

Derivative

Assets

Subject to

an MNA by

   

Derivatives

Available

   

Non-Cash

Collateral

   

Cash

Collateral

   

Net Amount

of Derivative

 
    Counterparty         for Offset (a)      Received       Received         Assets (b)(c) 
 

 

 
 

Bank of America N.A.

     $ 118,587       $ (118,587   $     $       $  
 

Barclays Bank PLC

       11,708         (2,270                   9,438  
 

BNP Paribas SA

       28,257         (28,257                    
 

Citibank N.A.

       7,715         (7,715                    
 

Deutsche Bank Securities Inc.

       1,784         (791                   993  
 

HSBC Bank PLC

       1,162         (1,162                    
 

JPMorgan Chase Bank N.A.

       9,104         (9,104                    
 

Morgan Stanley & Co. International PLC

       235,143         (235,143                    
 

State Street Bank and Trust Co.

       118,071         (118,071                    

 

 

24  

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® Currency Hedged MSCI ACWI ex U.S. ETF

 

Derivative Financial Instruments - Offsetting as of Period End (continued)

 

 

 

 
       

Derivative

Assets

Subject to

an MNA by

   

Derivatives

Available

   

Non-Cash

Collateral

   

Cash

Collateral

   

Net Amount

of Derivative

 
  Counterparty     Counterparty         for Offset (a)      Received       Received         Assets (b)(c) 
 

 

 
 

UBS AG

     $ 23,346       $ (23,346   $     $       $  
      

 

 

     

 

 

   

 

 

   

 

 

     

 

 

 
       $ 554,877       $ (544,446   $     $       $ 10,431  
      

 

 

     

 

 

   

 

 

   

 

 

     

 

 

 
                                                    
 

 

 
       

Derivative

Liabilities

Subject to

an MNA by

        Derivatives
Available
    Non-Cash
Collateral
    Cash
Collateral
          Net Amount
of Derivative
 
  Counterparty     Counterparty         for Offset (a)      Pledged       Pledged         Liabilities (c)(d) 
 

 

 
 

Bank of America N.A.

     $ 468,402       $ (118,587   $     $       $ 349,815  
 

Barclays Bank PLC

       2,270         (2,270                    
 

BNP Paribas SA

       99,392         (28,257                   71,135  
 

Citibank N.A.

       168,063         (7,715                     160,348  
 

Deutsche Bank Securities Inc.

       791         (791                    
 

HSBC Bank PLC

       42,244         (1,162                   41,082  
 

JPMorgan Chase Bank N.A.

       59,497         (9,104                   50,393  
 

Morgan Stanley & Co. International PLC

       521,446         (235,143                   286,303  
 

State Street Bank and Trust Co.

       675,878         (118,071                   557,807  
 

UBS AG

       176,883         (23,346                   153,537  
      

 

 

     

 

 

   

 

 

   

 

 

     

 

 

 
       $ 2,214,866       $ (544,446   $     $       $ 1,670,420  
      

 

 

     

 

 

   

 

 

   

 

 

     

 

 

 
  (a) 

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

 
  (b) 

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

 
  (c) 

Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

 
  (d) 

Net amount represents the net amount payable due to the counterparty in the event of default.

 

Fair Value Hierarchy as of Period End

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

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

 

                                                                                       

 

 
    Level 1      Level 2      Level 3      Total  

 

 

Assets

          

Investments

          

Long-Term Investments

          

Investment Companies

  $ 179,887,849      $      $      $ 179,887,849  

Short-Term Securities

          

Money Market Funds

    12,747,885                      12,747,885  
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 192,635,734      $      $      $ 192,635,734  
 

 

 

    

 

 

    

 

 

    

 

 

 

Derivative Financial Instruments(a)

          

Assets

          

Foreign Currency Exchange Contracts

  $      $ 554,877      $      $ 554,877  

Liabilities

          

Foreign Currency Exchange Contracts

           (2,214,866             (2,214,866
 

 

 

    

 

 

    

 

 

    

 

 

 
  $      $ (1,659,989    $        (1,659,989
 

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are forward foreign currency exchange contracts. Forward foreign currency exchange 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

  25


Schedule of Investments  

July 31, 2023

  

iShares® Currency Hedged MSCI EAFE ETF

(Percentages shown are based on Net Assets)

 

Security  

Shares

    Value  

 

 

Investment Companies

   
Exchange-Traded Funds — 99.7%            

iShares MSCI EAFE ETF(a)(b)

    47,613,457     $  3,545,298,008  
   

 

 

 

Total Investment Companies
(Cost: $3,208,057,242)

      3,545,298,008  
   

 

 

 
Short-Term Securities            

Money Market Funds — 22.9%

   

BlackRock Cash Funds: Institutional, SL Agency Shares,
5.42%(a)(c)(d)

    813,276,022       813,520,005  

BlackRock Cash Funds: Treasury, SL Agency Shares,
5.22%(a)(c)

    1,130,000       1,130,000  
   

 

 

 

Total Short-Term Securities — 22.9%
(Cost: $814,570,117)

      814,650,005  
   

 

 

 

Total Investments in Securities — 122.6%
(Cost: $4,022,627,359)

      4,359,948,013  

Liabilities in Excess of Other Assets — (22.6)%

 

    (803,388,973
   

 

 

 

Net Assets — 100.0%

    $  3,556,559,040  
   

 

 

 
(a) 

Affiliate of the Fund.

(b) 

All or a portion of this security is on loan.

(c) 

Annualized 7-day yield as of period end.

(d) 

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

  $     $ 813,591,686 (a)    $     $ (151,569   $ 79,888     $ 813,520,005       813,276,022     $ 1,438,775 (b)    $    
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    2,640,000             (1,510,000 )(a)                  1,130,000       1,130,000       227,391       1    
 

iShares MSCI EAFE ETF

    3,669,453,789       1,310,455,902       (1,875,498,686     (91,039,433     531,926,436       3,545,298,008       47,613,457       73,960,220          
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   
          $ (91,191,002   $ 532,006,324     $ 4,359,948,013       $ 75,626,386     $ 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.

 

Derivative Financial Instruments Outstanding as of Period End

Forward Foreign Currency Exchange Contracts

 

             

Currency Purchased

        

Currency Sold

    Counterparty   Settlement Date          

Unrealized

Appreciation

(Depreciation)

 

AUD

           5,644,000         USD          3,760,926     Bank of America N.A.   08/02/23          $     30,149  

AUD

     322,000         USD       215,464     Bank of New York   08/02/23          824  

 

 

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® Currency Hedged MSCI EAFE ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

             
Currency Purchased         

Currency Sold

    Counterparty   Settlement Date          

Unrealized

Appreciation

(Depreciation)

 

AUD

     6,864,000         USD       4,588,626     JPMorgan Chase Bank N.A.   08/02/23         $ 21,922  

CHF

     262,000         USD       298,464     Bank of New York   08/02/23          1,978  

CHF

     5,591,000         USD       6,254,466     BNP Paribas SA   08/02/23          156,863  

CHF

     1,438,000         USD       1,611,501     Morgan Stanley & Co. International PLC   08/02/23          37,487  

CHF

     9,301,000         USD       10,425,833     State Street Bank and Trust Co.   08/02/23          239,840  

DKK

     48,775,000         USD       7,158,440     State Street Bank and Trust Co.   08/02/23          38,272  

EUR

     1,230,000         USD       1,344,192     BNP Paribas SA   08/02/23          8,194  

EUR

     19,204,000         USD       20,982,646     JPMorgan Chase Bank N.A.   08/02/23          132,160  

EUR

     12,546,000         USD       13,706,630     State Street Bank and Trust Co.   08/02/23          87,701  

GBP

     10,033,000         USD       12,735,884     JPMorgan Chase Bank N.A.   08/02/23          139,961  

GBP

     7,111,000         USD       9,042,703     State Street Bank and Trust Co.   08/02/23          83,195  

HKD

     112,000         USD       14,334     Bank of America N.A.   08/02/23          27  

HKD

     19,686,000         USD       2,513,851     BNP Paribas SA   08/02/23          10,352  

HKD

     547,000         USD       69,914     State Street Bank and Trust Co.   08/02/23          225  

ILS

     418,000         USD       112,836     State Street Bank and Trust Co.   08/02/23          855  

ILS

     3,653,000         USD       985,174     Toronto Dominion Bank   08/02/23          8,393  

ILS

     924,000         USD       250,633     UBS AG   08/02/23          683  

JPY

       2,009,424,000         USD         13,960,781     JPMorgan Chase Bank N.A.   08/02/23          163,733  

JPY

     384,019,000         USD       2,673,164     Morgan Stanley & Co. International PLC   08/02/23          26,158  

NOK

     4,202,000         USD       392,837     Morgan Stanley & Co. International PLC   08/02/23          21,764  

NOK

     3,791,000         USD       354,855     State Street Bank and Trust Co.   08/02/23          19,193  

NZD

     604,000         USD       370,008     BNP Paribas SA   08/02/23          5,136  

NZD

     10,000         USD       6,197     HSBC Bank PLC   08/02/23          14  

NZD

     207,000         USD       127,362     Morgan Stanley & Co. International PLC   08/02/23          1,206  

SEK

     1,029,000         USD       96,585     Bank of New York   08/02/23          1,170  

SEK

     21,855,000         USD       2,018,085     Morgan Stanley & Co. International PLC   08/02/23          58,123  

SEK

     12,851,000         USD       1,191,249     State Street Bank and Trust Co.   08/02/23          29,586  

SGD

     1,029,000         USD       763,074     JPMorgan Chase Bank N.A.   08/02/23          10,756  

SGD

     91,000         USD       67,310     Morgan Stanley & Co. International PLC   08/02/23          1,124  

SGD

     256,000         USD       189,813     State Street Bank and Trust Co.   08/02/23          2,704  

USD

     887,170         AUD       1,309,000     Citibank N.A.   08/02/23          7,914  

USD

     554,890         AUD       805,000     HSBC Bank PLC   08/02/23          14,172  

USD

     1,907,890         AUD       2,808,000     Toronto Dominion Bank   08/02/23          21,757  

USD

     929,163         CHF       808,000     Bank of America N.A.   08/02/23          2,610  

USD

     462,047         CHF       399,000     Citibank N.A.   08/02/23          4,504  

USD

     2,115,674         CHF       1,822,000     Toronto Dominion Bank   08/02/23          26,345  

USD

     1,992,026         CHF       1,710,000     UBS AG   08/02/23          31,129  

USD

     450,304         DKK       2,986,000     State Street Bank and Trust Co.   08/02/23          9,722  

USD

     1,191,248         DKK       7,985,000     Toronto Dominion Bank   08/02/23          13,068  

USD

     2,548,044         EUR       2,268,000     Bank of New York   08/02/23          54,377  

USD

     4,096,191         EUR       3,696,000     BNP Paribas SA   08/02/23          32,438  

USD

     3,083,927         EUR       2,798,000     Imperial Bank of Canada   08/02/23          7,525  

USD

     2,028,915         EUR       1,822,000     JPMorgan Chase Bank N.A.   08/02/23          25,626  

USD

     2,548,938         EUR       2,269,000     Morgan Stanley & Co. International PLC   08/02/23          54,171  

USD

     4,067,327         EUR       3,628,000     Toronto Dominion Bank   08/02/23          78,340  

 

 

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® Currency Hedged MSCI EAFE ETF

 

Forward Foreign Currency Exchange Contracts (continued) 

 

             
Currency Purchased         

Currency Sold

    Counterparty   Settlement Date          

Unrealized

Appreciation

(Depreciation)

 

USD

     1,745,711       GBP     1,349,000     Bank of New York   08/02/23         $ 14,473  

USD

     1,356,252       GBP     1,055,000     BNP Paribas SA   08/02/23          2,318  

USD

     1,107,261       GBP     843,000     HSBC Bank PLC   08/02/23          25,397  

USD

     3,809,581       GBP     2,939,000     Toronto Dominion Bank   08/02/23          37,817  

USD

     219,428       HKD     1,711,000     State Street Bank and Trust Co.   08/02/23          39  

USD

     31,280       ILS     113,000     HSBC Bank PLC   08/02/23          546  

USD

     109,242       ILS     393,000     State Street Bank and Trust Co.   08/02/23          2,351  

USD

     1,359,509       JPY     190,187,000     Bank of New York   08/02/23          22,659  

USD

     2,039,821       JPY     287,746,000     BNP Paribas SA   08/02/23          17,216  

USD

     4,413,383       JPY     616,562,000     HSBC Bank PLC   08/02/23          79,485  

USD

     4,363,961       JPY       605,548,000     JPMorgan Chase Bank N.A.   08/02/23          107,481  

USD

     90,446       NOK     912,000     Bank of New York   08/02/23          461  

USD

     208,415       NOK     2,088,000     State Street Bank and Trust Co.   08/02/23          2,397  

USD

     15,278       NZD     24,000     HSBC Bank PLC   08/02/23          372  

USD

     14,937       NZD     24,000     State Street Bank and Trust Co.   08/02/23          31  

USD

     61,560       NZD     98,000     Toronto Dominion Bank   08/02/23          692  

USD

     149,045       SEK     1,546,000     Bank of New York   08/02/23          2,176  

USD

     248,146       SEK     2,542,000     BNP Paribas SA   08/02/23          6,658  

USD

     249,145       SEK     2,588,000     Natwest Markets PLC   08/02/23          3,287  

USD

     251,108       SEK     2,561,000     State Street Bank and Trust Co.   08/02/23          7,815  

USD

     593,848       SEK     6,110,000     Toronto Dominion Bank   08/02/23          13,402  

USD

     150,271       SGD     199,000     Citibank N.A.   08/02/23          619  

USD

     57,268       SGD     76,000     JPMorgan Chase Bank N.A.   08/02/23          114  

USD

     260,866       SGD     345,000     State Street Bank and Trust Co.   08/02/23          1,418  

USD

     95,912       SGD     127,000     Toronto Dominion Bank   08/02/23          405  

USD

         258,169,353       AUD     382,667,000     BNP Paribas SA   09/05/23          831,942  

USD

     341,642       AUD     508,000     State Street Bank and Trust Co.   09/05/23          20  

USD

     4,150,398       AUD     6,152,000     Toronto Dominion Bank   09/05/23          13,276  

USD

     466,141       CHF     405,000     HSBC Bank PLC   09/05/23          83  

USD

     357,570,340       CHF     308,831,000     Morgan Stanley & Co. International PLC   09/05/23          2,180,008  

USD

     791,231       CHF     685,000     Toronto Dominion Bank   09/05/23          2,960  

USD

     105,087,258       DKK     708,895,000     Toronto Dominion Bank   09/05/23          279,786  

USD

     7,749,627       EUR     7,029,000     HSBC Bank PLC   09/05/23          8,657  

USD

     1,171,508,793       EUR     1,060,812,000     State Street Bank and Trust Co.   09/05/23          3,246,735  

USD

     11,513,786       EUR     10,426,000     Toronto Dominion Bank   09/05/23          31,733  

USD

     2,928,372       GBP     2,280,000     JPMorgan Chase Bank N.A.   09/05/23          1,859  

USD

     519,851,727       GBP     403,967,000     Toronto Dominion Bank   09/05/23          1,336,475  

USD

     111,200       HKD     867,000     Bank of America N.A.   09/05/23          4  

USD

     84,086,496       HKD     655,614,000     BNP Paribas SA   09/05/23          1,812  

USD

     19,088       ILS     70,000     HSBC Bank PLC   09/05/23          26  

USD

     14,103,363       ILS     51,609,000     State Street Bank and Trust Co.   09/05/23          49,198  

USD

     513,769       ILS     1,880,000     Toronto Dominion Bank   09/05/23          1,807  

USD

     795,766,423       JPY     112,469,727,000     Commonwealth Bank of Australia   09/05/23          1,040,254  

USD

     2,317,588       JPY     327,757,000     JPMorgan Chase Bank N.A.   09/05/23          1,613  

USD

     23,203,891       NOK     234,460,000     Bank of America N.A.   09/05/23          43,017  

USD

     62,655       NOK     634,000     Bank of New York   09/05/23          26  

USD

     81,745       NOK     826,000     Toronto Dominion Bank   09/05/23          149  

USD

     34,201       NZD     55,000     Toronto Dominion Bank   09/05/23          39  

USD

     7,167,409       NZD     11,516,000     UBS AG   09/05/23          14,408  

USD

     601,454       SEK     6,309,000     BNP Paribas SA   09/05/23          1,123  

USD

     114,854,119       SEK     1,204,849,000     Toronto Dominion Bank   09/05/23          207,026  

USD

     59,511       SGD     79,000     Bank of America N.A.   09/05/23          6  

 

 

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  (continued)

July 31, 2023

  

iShares® Currency Hedged MSCI EAFE ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

             
Currency Purchased         

Currency Sold

    Counterparty   Settlement Date           Unrealized
Appreciation
(Depreciation)
 

USD

     44,138,727       SGD     58,514,000     JPMorgan Chase Bank N.A.   09/05/23         $ 64,534  

USD

     1,389,449       SGD     1,842,000     Toronto Dominion Bank   09/05/23          2,009  
                   

 

 

 
                      11,433,660  
                   

 

 

 

AUD

     382,667,000       USD     257,860,158     BNP Paribas SA   08/02/23          (822,758

AUD

     66,000       USD     45,056     Toronto Dominion Bank   08/02/23          (724

CHF

     308,831,000       USD     356,268,097     Morgan Stanley & Co. International PLC   08/02/23          (2,124,413

CHF

     52,000       USD     60,523     Toronto Dominion Bank   08/02/23          (893

DKK

     611,000       USD     90,347     Bank of New York   08/02/23          (194

DKK

     709,016,000       USD     104,895,241     Toronto Dominion Bank   08/02/23          (280,492

EUR

     901,000       USD     992,704     Bank of America N.A.   08/02/23          (2,054

EUR

     1,060,812,000       USD     1,169,598,271     State Street Bank and Trust Co.   08/02/23          (3,235,066

EUR

     183,000       USD     205,702     Toronto Dominion Bank   08/02/23          (4,493

GBP

     67,000       USD     87,630     BNP Paribas SA   08/02/23          (1,646

GBP

     337,000       USD     435,914     Natwest Markets PLC   08/02/23          (3,425

GBP

     399,830,000       USD     514,441,269     Toronto Dominion Bank   08/02/23          (1,319,663

HKD

     655,614,000       USD     84,067,088     BNP Paribas SA   08/02/23          (2,156

ILS

     51,618,000       USD     14,089,255     State Street Bank and Trust Co.   08/02/23          (49,844

JPY

     95,021,000       USD     679,021     Bank of New York   08/02/23          (11,105

JPY

     112,469,727,000       USD     791,594,362     Commonwealth Bank of Australia   08/02/23          (1,029,382

JPY

     18,679,000       USD     134,820     Toronto Dominion Bank   08/02/23          (3,523

NOK

     234,460,000       USD     23,176,137     Bank of America N.A.   08/02/23          (42,556

NOK

     39,000       USD     3,888     Bank of New York   08/02/23          (40

NZD

     2,000       USD     1,267     Toronto Dominion Bank   08/02/23    &nbs