LOGO

  SEPTEMBER 30, 2021

 

 

    

  

2021 Semi-Annual Report

(Unaudited)

 

 

 

iShares Trust

 

·  

iShares Global 100 ETF | IOO | NYSE Arca

·  

iShares Global Infrastructure ETF | IGF | NASDAQ

·  

iShares Global Timber & Forestry ETF | WOOD | NASDAQ


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of September 30, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. The United States began the reporting period as the initial reopening-led economic rebound was beginning to slow. Nonetheless, the economy continued to grow at a brisk pace for the reporting period, eventually regaining the output lost from the pandemic.

Equity prices rose with the broader economy, as strong fiscal and monetary support, as well as the development of vaccines, made investors increasingly optimistic about the economic outlook. The implementation of mass vaccination campaigns and passage of two additional fiscal stimulus packages further boosted stocks, and many equity indices neared or surpassed all-time highs late in the reporting period. In the United States, returns of small-capitalization stocks, which benefited the most from the resumption of in-person activities, outpaced large-capitalization stocks. International equities also gained, as both developed and emerging markets continued to recover from the effects of the pandemic.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) had fallen sharply prior to the beginning of the reporting period, which meant bonds were priced for extreme risk avoidance and economic disruption. Despite expectations of doom and gloom, the economy expanded rapidly, stoking inflation concerns in early 2021, which led to higher yields and a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and led to solid returns for high-yield corporate bonds, although investment-grade corporates declined slightly.

The Fed remained committed to accommodative monetary policy by maintaining near-zero interest rates and by reiterating that inflation could exceed its 2% target for a sustained period without triggering a rate increase. In response to rising inflation late in the period, the Fed changed its market guidance, raising the possibility of higher rates in 2022 and reducing bond purchasing beginning in late 2021.

Looking ahead, we believe that the global expansion will continue to broaden as Europe and other developed market economies gain momentum, although the delta variant of the coronavirus remains a threat, particularly in emerging markets. While we expect inflation to remain elevated in the medium-term as the expansion continues, we believe the recent uptick owes more to temporary supply disruptions than a lasting change in fundamentals. The change in Fed policy also means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the economic expansion.

Overall, we favor a moderately positive stance toward risk, with an overweight in equities. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long-term. U.S. small-capitalization stocks and European equities are likely to benefit from the continuing vaccine-led restart, while Chinese equities stand to gain from a more accommodative monetary and fiscal environment as the Chinese economy slows. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, 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.

Sincerely,

Trust

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of September 30, 2021

 

 
    

 

6-Month

 

   

 

12-Month

 

 

 

U.S. large cap equities
(S&P 500® Index)

 

 

 

 

 

9.18%

 

 

 

 

 

 

30.00%

 

 

 

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

 

 

 

 

 

(0.25)

 

 

 

 

 

 

47.68

 

 

 

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

 

 

 

 

 

4.70

 

 

 

 

 

 

25.73

 

 

 

Emerging market equities
(MSCI Emerging Markets Index)

 

 

 

 

 

(3.45)

 

 

 

 

 

 

18.20

 

 

 

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

 

 

 

 

 

0.01

 

 

 

 

 

 

0.07

 

 

 

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

 

 

 

 

 

2.92

 

 

 

 

 

 

(6.22)

 

 

 

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

 

 

 

 

 

1.88

 

 

 

 

 

 

(0.90)

 

 

 

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

 

 

 

 

 

1.24

 

 

 

 

 

 

2.71

 

 

 

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

 

 

 

 

 

3.65

 

 

 

 

 

 

11.27

 

 

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  

H I S    A G E    I S  N O T    A R T    O F    O U R    U N D     E P O R T


Table of Contents

 

      Page  

The Markets in Review

     2  

Fund Summary

     4  

About Fund Performance

     7  

Shareholder Expenses

     7  

Schedules of Investments

     8  

Financial Statements

  

Statements of Assets and Liabilities

     16  

Statements of Operations

     17  

Statements of Changes in Net Assets

     18  

Financial Highlights

     20  

Notes to Financial Statements

     23  

Board Review and Approval of Investment Advisory Contract

     31  

Supplemental Information

     35  

General Information

     36  

Glossary of Terms Used in this Report

     37  

 

 

 


Fund Summary  as of September 30, 2021    iShares® Global 100 ETF

 

Investment Objective

The iShares Global 100 ETF (the “Fund”) seeks to track the investment results of an index composed of 100 large-capitalization global equities, as represented by the S&P Global 100TM (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  
     6 Months      1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    8.75      28.33      16.06     12.98        28.33      110.59      238.86

Fund Market

    8.73        28.38        16.09       13.06          28.38        110.87        241.35  

Index

    8.95        28.55        15.99       12.88                28.55        109.98        236.02  

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

Past performance is no guarantee 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” on page 7 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,087.50          $      2.09               $      1,000.00          $      1,023.10          $     2.03          0.40

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 7 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    

Percent of

Total Investments

 

(a) 

Information Technology

    29.2

Consumer Discretionary

    14.5  

Health Care

    12.0  

Consumer Staples

    10.8  

Financials

    10.4  

Communication Services

    9.6  

Industrials

    5.7  

Energy

    4.7  

Materials

    1.7  

Other (each representing less than 1%)

    1.4  

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    72.8

United Kingdom

    6.5  

Switzerland

    5.4  

France

    4.3  

Japan

    3.5  

Germany

    3.4  

South Korea

    1.8  

Spain

    0.8  

Australia

    0.8  

Netherlands

    0.6  

 

  (a)

Excludes money market funds.

 

 

 

4  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T     T O    H A R E H O L D E R S


Fund Summary  as of September 30, 2021    iShares® Global Infrastructure ETF

 

Investment Objective

The iShares Global Infrastructure ETF (the “Fund”) seeks to track the investment results of an index composed of developed market equities in the infrastructure industry, as represented by the S&P Global Infrastructure IndexTM (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  
     6 Months      1 Year      5 Years      10 Years            1 Year      5 Years      10 Years  

Fund NAV

    3.26      22.04      5.15      7.06       22.04      28.56      97.85

Fund Market

    3.30        22.31        5.11        7.18         22.31        28.32        100.03  

Index

    3.44        22.13        5.02        6.92               22.13        27.73        95.18  

Past performance is no guarantee 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” on page 7 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,032.60          $     2.09               $      1,000.00          $      1,023.00          $     2.08          0.41

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 7 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector    
Percent of
Total Investments
 
(a) 

Electric Utilities

    23.2

Airport Services

    20.9  

Oil & Gas Storage & Transportation

    20.8  

Highways & Railtracks

    14.7  

Multi-Utilities

    12.7  

Marine Ports & Services

    4.4  

Water Utilities

    1.5  

Other (each representing less than 1%)

    1.8  

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

United States

    35.7

Australia

    11.5  

Canada

    10.8  

Spain

    7.4  

Italy

    6.7  

China

    5.6  

France

    4.9  

Mexico

    3.7  

Germany

    3.4  

New Zealand

    2.5  

 

  (a)

Excludes money market funds.

 

 

 

U N D    U M M A R Y

  5


Fund Summary  as of September 30, 2021    iShares® Global Timber & Forestry ETF

 

Investment Objective

The iShares Global Timber & Forestry ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in or related to the timber and forestry industry, as represented by the S&P Global Timber & Forestry IndexTM (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  
     6 Months      1 Year      5 Years      10 Years            1 Year      5 Years      10 Years  

Fund NAV

    0.90      33.50      13.15      11.34       33.50      85.50      192.71

Fund Market

    0.76        33.75        13.11        11.47         33.75        85.16        196.23  

Index

    1.09        33.78        13.10        11.12               33.78        85.10        187.06  

Past performance is no guarantee 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” on page 7 for more information.

Expense Example

 

Actual           Hypothetical 5% Return         
 

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(04/01/21)
 
 
 
      

Ending
Account Value
(09/30/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
    

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,009.00          $     2.06               $      1,000.00          $      1,023.00          $     2.08        0.41

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 7 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector    
Percent of
Total Investments
 
(a) 

Paper Products

    30.9

Specialized REITs

    24.2  

Forest Products

    22.9  

Paper Packaging

    18.6  

Homebuilding

    3.4  

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

United States

    34.9

Canada

    15.2  

Sweden

    14.8  

Japan

    9.4  

Finland

    9.2  

Brazil

    7.5  

United Kingdom

    3.8  

Ireland

    3.8  

South Africa

    1.4  

 

  (a)

Excludes money market funds.

 

 

 

6  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T     T O    H A R E H O L D E R S


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 by 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. 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.

Shareholder Expenses

As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

 

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

  7


Schedule of Investments  (unaudited)

September 30, 2021

  

iShares® Global 100 ETF

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Common Stocks

 

Australia — 0.8%  

BHP Group Ltd.

    550,520      $ 14,703,201  

Rio Tinto PLC

    198,610        13,019,308  
    

 

 

 
       27,722,509  
France — 4.3%             

AXA SA

    388,248        10,759,612  

Cie. de Saint-Gobain

    98,750        6,645,580  

Engie SA

    327,050        4,278,858  

L’Oreal SA

    45,869        18,980,776  

LVMH Moet Hennessy Louis Vuitton SE

    49,952        35,778,799  

Orange SA

    351,955        3,806,345  

Sanofi

    214,719        20,669,711  

Schneider Electric SE

    106,049        17,662,871  

TotalEnergies SE

    464,017        22,179,058  

Vivendi SE

    150,768        1,898,161  
    

 

 

 
       142,659,771  
Germany — 3.3%             

Allianz SE, Registered

    76,984        17,247,923  

BASF SE

    171,150        12,974,919  

Bayer AG, Registered

    183,776        9,974,529  

Daimler AG, Registered

    156,018        13,765,731  

Deutsche Bank AG, Registered(a)

    388,882        4,941,813  

Deutsche Telekom AG, Registered

    605,526        12,143,335  

E.ON SE

    414,280        5,056,576  

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered

    26,034        7,103,878  

RWE AG

    126,996        4,478,942  

Siemens AG, Registered

    148,908        24,354,052  
    

 

 

 
       112,041,698  
Japan — 3.5%             

Bridgestone Corp.

    114,700        5,426,594  

Canon Inc.

    198,350        4,853,238  

Honda Motor Co. Ltd.

    321,100        9,871,835  

Mitsubishi UFJ Financial Group Inc.

    2,408,600        14,238,026  

Nissan Motor Co. Ltd.(a)

    454,700        2,272,348  

Panasonic Corp.

    431,100        5,343,656  

Seven & i Holdings Co. Ltd.

    147,420        6,711,214  

Sony Group Corp.

    235,600        26,155,994  

Toyota Motor Corp.

    2,406,500        42,877,540  
    

 

 

 
           117,750,445  
Luxembourg — 0.1%             

Societe Generale SA

    145,917        4,569,367  
    

 

 

 
Netherlands — 0.6%             

ING Groep NV

    729,959        10,612,510  

Koninklijke Philips NV

    169,778        7,542,711  
    

 

 

 
       18,155,221  
South Korea — 1.8%             

Samsung Electronics Co. Ltd.

    958,625        59,429,574  
    

 

 

 
Spain — 0.8%             

Banco Bilbao Vizcaya Argentaria SA

    1,245,031        8,217,957  

Banco Santander SA

    3,245,398        11,756,009  

Repsol SA

    258,201        3,370,439  

Telefonica SA

    996,390        4,675,636  
    

 

 

 
       28,020,041  
Switzerland — 5.4%             

ABB Ltd., Registered

    332,897        11,136,008  
Security   Shares      Value  
Switzerland (continued)             

Credit Suisse Group AG, Registered

    468,456      $ 4,626,594  

Nestle SA, Registered

    525,618        63,331,723  

Novartis AG, Registered

    454,868        37,298,792  

Roche Holding AG, Bearer

    5,045        2,070,589  

Roche Holding AG, NVS

    131,183        47,877,827  

Swiss Re AG

    54,142        4,621,028  

UBS Group AG, Registered

    690,012        11,013,704  
    

 

 

 
       181,976,265  
United Kingdom — 6.5%             

Anglo American PLC

    254,592        8,923,105  

AstraZeneca PLC

    289,252        34,859,995  

Aviva PLC

    740,251        3,923,239  

Barclays PLC

    2,975,974        7,561,882  

BP PLC

    3,802,224        17,318,570  

Diageo PLC

    434,760        21,048,909  

GlaxoSmithKline PLC

    933,285        17,614,044  

HSBC Holdings PLC

    3,881,870        20,297,049  

National Grid PLC

    721,094        8,592,351  

Prudential PLC

    486,555        9,441,799  

Royal Dutch Shell PLC, Class A

    765,785        17,030,426  

Royal Dutch Shell PLC, Class B

    692,020        15,332,817  

Standard Chartered PLC

    487,716        2,851,079  

Unilever PLC

    491,576        26,613,102  

Vodafone Group PLC

    4,974,773        7,570,071  
    

 

 

 
       218,978,438  
United States — 72.6%             

3M Co.

    107,970        18,940,097  

Abbott Laboratories

    330,711        39,066,890  

Alphabet Inc., Class A(a)

    56,219        150,302,621  

Alphabet Inc., Class C, NVS(a)

    52,608        140,216,628  

Amazon.com Inc.(a)

    81,324        267,152,593  

American Tower Corp.

    84,984        22,555,603  

Aon PLC, Class A

    41,938        11,984,622  

Apple Inc.

    2,932,194        414,905,451  

Bristol-Myers Squibb Co.

    415,663        24,594,780  

Caterpillar Inc.

    101,946        19,570,574  

Chevron Corp.

    361,101        36,633,696  

Citigroup Inc.

    377,699        26,506,916  

Coca-Cola Co. (The)

    725,401        38,061,790  

Colgate-Palmolive Co.

    157,410        11,897,048  

DuPont de Nemours Inc.

    99,035        6,733,390  

Emerson Electric Co.

    112,018        10,552,096  

Exxon Mobil Corp.

    790,493        46,496,798  

Ford Motor Co.(a)

    733,005        10,379,351  

General Electric Co.

    204,393        21,058,611  

Goldman Sachs Group Inc. (The)

    62,985        23,810,220  

Honeywell International Inc.

    129,081        27,401,315  

HP Inc.

    223,585        6,117,286  

Intel Corp.

    757,525        40,360,932  

International Business Machines Corp.

    167,361        23,251,464  

Jackson Financial Inc., Class A(a)

    12,163        316,238  

Johnson & Johnson

    491,538        79,383,387  

Johnson Controls International PLC

    133,595        9,095,148  

JPMorgan Chase & Co.

    557,950        91,330,835  

Kimberly-Clark Corp.

    63,145        8,362,924  

Marsh & McLennan Companies Inc.

    94,421        14,298,172  

McDonald’s Corp.

    139,443        33,621,102  

Merck & Co. Inc.

    472,681        35,503,070  

Microsoft Corp.

    1,403,184            395,585,633  

 

 

8  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T     T O    H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

September 30, 2021

  

iShares® Global 100 ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United States (continued)            

Morgan Stanley

    272,011     $ 26,469,390  

Nike Inc., Class B

    238,645       34,658,413  

PepsiCo Inc.

    258,069       38,816,158  

Pfizer Inc.

    1,046,883       45,026,438  

Philip Morris International Inc.

    290,081       27,496,778  

Procter & Gamble Co. (The)

    453,250       63,364,350  

Raytheon Technologies Corp.

    282,024       24,242,783  

Texas Instruments Inc.

    172,394       33,135,851  

Walmart Inc.

    266,230       37,107,137  
   

 

 

 
      2,436,364,579  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $2,187,419,412)

 

    3,347,667,908  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 0.1%            

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(b)(c)

    3,756,000       3,756,000  
   

 

 

 

Total Short-Term Investments — 0.1%
(Cost: $3,756,000)

 

    3,756,000  
   

 

 

 

Total Investments in Securities — 99.8%
(Cost: $2,191,175,412)

      3,351,423,908  

Other Assets, Less Liabilities — 0.2%

      6,362,082  
   

 

 

 

Net Assets — 100.0%

    $   3,357,785,990  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

Affiliate of the Fund.

(c) 

Annualized 7-day yield as of period end.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
03/31/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
09/30/21
    Shares
Held at
09/30/21
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares(a)

  $     $ 0 (b)     $     $     $     $           $ 7,589 (c)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    2,816,000       940,000 (b)                        3,756,000       3,756,000       176        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $     $     $ 3,756,000       $ 7,765     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

As of period end, the entity is no longer held.

 
  (b) 

Represents net amount purchased (sold).

 
  (c) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 

Long Contracts

                 

Euro STOXX 50 Index

     20          12/17/21        $ 935        $ (26,556

 

 

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

  9


Schedule of Investments  (unaudited) (continued)

September 30, 2021

  

iShares® Global 100 ETF

 

Futures Contracts (continued)

 

 

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

 

 

FTSE 100 Index

     11          12/17/21        $ 1,044        $ (3,125

S&P 500 E-Mini Index

     40          12/17/21          8,595          (272,322
                 

 

 

 
                  $ (302,003
                 

 

 

 

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:

 

 

 
     Equity
Contracts
 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 302,003  
  

 

 

 

 

  (a) 

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

 

For the period ended September 30, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 1,190,536  
  

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:       

Futures contracts

   $ (413,965
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 11,331,335      

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Investments

                 

Assets

                 

Common Stocks

   $ 2,436,364,579        $ 911,303,329        $        $ 3,347,667,908  

Money Market Funds

     3,756,000                            3,756,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,440,120,579        $ 911,303,329        $        $ 3,351,423,908  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $ (272,322      $ (29,681      $             —        $ (302,003
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

10  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T     T O    H A R E H O L D E R S


Schedule of Investments  (unaudited)

September 30, 2021

  

iShares® Global Infrastructure ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Australia — 11.5%            

Atlas Arteria Ltd.

    11,329,216     $ 52,238,731  

Qube Holdings Ltd.

    22,527,586       52,716,840  

Sydney Airport(a)

    15,621,537       91,742,635  

Transurban Group

    13,138,381       132,414,765  

Transurban Group, NVS

    1,705,251       17,456,601  
   

 

 

 
      346,569,572  
Brazil — 0.4%            

Centrais Eletricas Brasileiras SA, ADR(b)

    452,104       3,209,938  

Cia. de Saneamento Basico do Estado de Sao Paulo, ADR

    416,352       2,947,772  

Ultrapar Participacoes SA, ADR

    1,610,947       4,349,557  
   

 

 

 
      10,507,267  
Canada — 10.7%            

Enbridge Inc.

    3,849,457       153,358,282  

Gibson Energy Inc.

    325,548       5,978,404  

Keyera Corp.

    491,234       12,360,357  

Pembina Pipeline Corp.

    1,222,474       38,751,248  

TC Energy Corp.

    2,176,316       104,743,584  

Westshore Terminals Investment Corp.

    463,319       8,943,747  
   

 

 

 
          324,135,622  
Chile — 0.1%            

Enel Americas SA, ADR(b)

    484,841       2,836,320  
   

 

 

 
China — 5.6%            

Beijing Capital International Airport Co. Ltd., Class H(a)

    19,316,000       11,323,419  

China Gas Holdings Ltd.

    3,084,000       9,108,415  

China Longyuan Power Group Corp. Ltd., Class H

    4,193,000       10,288,813  

China Merchants Port Holdings Co. Ltd.

    15,918,000       27,220,008  

China Resources Gas Group Ltd.

    1,132,000       5,947,448  

China Resources Power Holdings Co. Ltd.

    2,234,000       6,442,589  

COSCO SHIPPING Ports Ltd.

    19,582,000       16,954,221  

Guangdong Investment Ltd.

    3,612,000       4,713,389  

Hainan Meilan International Airport Co. Ltd., Class H(a)

    1,582,000       6,624,986  

Jiangsu Expressway Co. Ltd., Class H

    14,436,000       14,586,853  

Kunlun Energy Co. Ltd.

    5,000,000       5,206,150  

Shenzhen Expressway Co. Ltd., Class H

    8,212,000       8,143,801  

Shenzhen International Holdings Ltd.

    15,528,500       20,018,565  

Yuexiu Transport Infrastructure Ltd.

    11,068,000       7,364,781  

Zhejiang Expressway Co. Ltd., Class H

    16,938,000       13,968,767  
   

 

 

 
      167,912,205  
Denmark — 1.0%            

Orsted A/S(c)

    237,480       31,303,317  
   

 

 

 
France — 4.9%            

Aeroports de Paris(a)

    303,956       38,712,089  

Engie SA

    2,231,740       29,198,285  

Getlink SE

    5,132,901       80,184,308  
   

 

 

 
      148,094,682  
Germany — 3.3%            

E.ON SE

    2,818,452       34,401,169  

Fraport AG Frankfurt Airport Services Worldwide(a)

    436,947       30,251,951  

Hamburger Hafen und Logistik AG

    275,462       6,190,179  

RWE AG

    848,905       29,939,495  
   

 

 

 
      100,782,794  
Italy — 6.7%            

Atlantia SpA(a)

    5,950,718       112,300,041  

Enav SpA(a)(c)

    3,007,911       14,043,871  
Security   Shares     Value  
Italy (continued)            

Enel SpA

    9,699,820     $ 74,448,226  
   

 

 

 
      200,792,138  
Japan — 2.0%            

Iwatani Corp.

    118,400       6,920,768  

Japan Airport Terminal Co. Ltd.(a)

    1,100,400       54,001,480  
   

 

 

 
      60,922,248  
Mexico — 3.7%            

Grupo Aeroportuario del Centro Norte SAB de CV, ADR(a)(b)

    406,389       19,039,325  

Grupo Aeroportuario del Pacifico SAB de CV, ADR(b)

    412,138       47,939,892  

Grupo Aeroportuario del Sureste SAB de CV, ADR(b)

    232,375       43,454,125  
   

 

 

 
      110,433,342  
Netherlands — 0.2%            

Koninklijke Vopak NV

    145,322       5,726,042  
   

 

 

 
New Zealand — 2.5%            

Auckland International Airport Ltd.(a)

    14,265,454       76,681,938  
   

 

 

 
Singapore — 0.5%            

Hutchison Port Holdings Trust, Class U(b)

    59,686,200       14,243,634  
   

 

 

 
Spain — 7.4%            

Aena SME SA(a)(c)

    868,281       150,161,941  

Iberdrola SA

    7,272,521       73,164,671  
   

 

 

 
      223,326,612  
Switzerland — 1.3%            

Flughafen Zurich AG, Registered(a)

    224,870       40,063,693  
   

 

 

 
United Kingdom — 2.2%            

James Fisher & Sons PLC

    466,793       5,402,741  

John Menzies PLC(a)

    989,841       4,177,646  

National Grid PLC

    4,866,155       57,983,721  
   

 

 

 
      67,564,108  
United States — 35.5%            

American Electric Power Co. Inc.

    627,999       50,980,959  

American Water Works Co. Inc.

    227,844       38,514,750  

Cheniere Energy Inc.(a)

    524,198       51,198,419  

Consolidated Edison Inc.

    443,624       32,202,666  

Dominion Energy Inc.

    1,014,948       74,111,503  

DTE Midstream LLC(a)

    215,285       9,954,778  

Duke Energy Corp.

    965,802       94,252,617  

Equitrans Midstream Corp.

    903,623       9,162,737  

Eversource Energy

    431,398       35,271,100  

Exelon Corp.

    1,227,540       59,339,284  

Kinder Morgan Inc.

    4,332,207       72,477,823  

NextEra Energy Inc.

    1,840,666       144,529,094  

ONEOK Inc.

    990,503       57,439,269  

Public Service Enterprise Group Inc.

    634,685       38,652,317  

Sempra Energy

    400,874       50,710,561  

Southern Co. (The)

    1,329,216       82,371,516  

Targa Resources Corp.

    508,197       25,008,374  

WEC Energy Group Inc.

    395,987       34,926,053  

Williams Companies Inc. (The)

    2,700,304       70,045,886  

Xcel Energy Inc.

    675,936       42,246,000  
   

 

 

 
          1,073,395,706  
   

 

 

 

Total Common Stocks — 99.5%
(Cost: $2,792,131,051)

      3,005,291,240  
   

 

 

 

 

 

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

  11


Schedule of Investments  (unaudited) (continued)

September 30, 2021

  

iShares® Global Infrastructure ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Preferred Stocks

   
Brazil — 0.1%            

Cia. Energetica de Minas Gerais, Preference Shares, ADR

    1,414,514     $ 3,564,575  
   

 

 

 

Total Preferred Stocks — 0.1%
(Cost: $2,988,204)

      3,564,575  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 0.2%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(d)(e)(f)

    4,764,496       4,766,878  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(d)(e)

    1,640,000       1,640,000  
   

 

 

 
      6,406,878  
   

 

 

 

Total Short-Term Investments — 0.2%
(Cost: $6,404,788)

      6,406,878  
   

 

 

 

Total Investments in Securities — 99.8%
(Cost: $2,801,524,043)

      3,015,262,693  

Other Assets, Less Liabilities — 0.2%

      6,937,012  
   

 

 

 

Net Assets — 100.0%

    $     3,022,199,705  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f)

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

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
03/31/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
09/30/21
    Shares
Held at
09/30/21
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 5,584,799     $     $ (821,022 )(a)    $ 3,241     $ (140   $ 4,766,878       4,764,496     $ 364,948 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    5,458,000             (3,818,000 )(a)                  1,640,000       1,640,000       209        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 3,241     $ (140   $ 6,406,878       $ 365,157     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 

Long Contracts

           

IBEX 35 Index

     34        10/15/21      $ 3,466      $ (4,288

S&P/TSX 60 Index

     28        12/16/21        5,288        (93,918

SPI 200 Index

     22        12/16/21        2,854        (65,350

 

 

12  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T     T O    H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

September 30, 2021

  

iShares® Global Infrastructure ETF

 

Futures Contracts (continued)

 

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

Dow Jones U.S. Real Estate Index

     48          12/17/21        $ 1,907        $ (60,399
                 

 

 

 
                  $ (223,955
                 

 

 

 

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:

 

      Equity
Contracts
 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 223,955  
  

 

 

 

 

  (a) 

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

 

For the period ended September 30, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 2,120,472  
  

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:       

Futures contracts

   $ (230,864
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

  

Average notional value of contracts — long

   $ 15,116,612  

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

Fair Value Hierarchy as of Period End

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

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

 

      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Common Stocks

   $ 1,710,344,114        $ 1,294,947,126        $             —        $ 3,005,291,240  

Preferred Stocks

     3,564,575                            3,564,575  

Money Market Funds

     6,406,878                            6,406,878  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 1,720,315,567        $ 1,294,947,126        $        $ 3,015,262,693  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $ (154,317      $ (69,638      $        $ (223,955
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

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

 

See notes to financial statements.

 

 

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

  13


Schedule of Investments (unaudited) 

September 30, 2021

  

iShares® Global Timber & Forestry ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Brazil — 7.5%            

Klabin SA(a)

    2,260,697     $ 10,050,310  

Suzano SA(a)

    1,207,161       12,085,464  
   

 

 

 
      22,135,774  
Canada — 15.3%            

Canfor Corp.(a)

    342,207       7,516,342  

Interfor Corp.

    353,724       8,735,581  

West Fraser Timber Co. Ltd.

    302,046       25,439,971  

Western Forest Products Inc.

    2,010,613       3,492,301  
   

 

 

 
      45,184,195  
Finland — 9.2%            

Metsa Board OYJ

    496,001       4,643,026  

Stora Enso OYJ, Class R

    681,674       11,354,250  

UPM-Kymmene OYJ

    320,526       11,344,763  
   

 

 

 
        27,342,039  
Ireland — 3.8%            

Smurfit Kappa Group PLC

    216,536       11,400,273  
   

 

 

 
Japan — 9.4%            

Daio Paper Corp.

    354,200       6,632,120  

Oji Holdings Corp.

    2,212,600       11,148,676  

Sumitomo Forestry Co. Ltd.

    528,500       10,038,042  
   

 

 

 
      27,818,838  
South Africa — 1.4%            

Sappi Ltd.(a)

    1,584,433       4,208,671  
   

 

 

 
Sweden — 14.9%            

BillerudKorsnas AB

    512,049       9,753,658  

Holmen AB, Class B

    258,884       11,369,825  

Svenska Cellulosa AB SCA, Class B

    1,479,834       22,934,564  
   

 

 

 
      44,058,047  
Security   Shares     Value  
United Kingdom — 3.9%            

Mondi PLC

    466,094     $ 11,422,093  
   

 

 

 
United States — 35.0%            

CatchMark Timber Trust Inc., Class A

    273,298       3,244,047  

Domtar Corp.(a)

    140,729       7,675,360  

International Paper Co.

    213,557       11,942,108  

PotlatchDeltic Corp.

    374,716       19,327,851  

Rayonier Inc.

    714,990       25,510,843  

Westrock Co.

    244,711       12,193,949  

Weyerhaeuser Co.

    668,895       23,792,595  
   

 

 

 
      103,686,753  
   

 

 

 

Total Common Stocks — 100.4%
(Cost: $285,790,163)

      297,256,683  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 0.2%            

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(b)(c)

    480,000       480,000  
   

 

 

 

Total Short-Term Investments — 0.2%
(Cost: $480,000)

      480,000  
   

 

 

 

Total Investments in Securities — 100.6%
(Cost: $286,270,163)

      297,736,683  

Other Assets, Less Liabilities — (0.6)%

      (1,741,029
   

 

 

 

Net Assets — 100.0%

    $   295,995,654  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

Affiliate of the Fund.

(c) 

Annualized 7-day yield as of period end.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
03/31/21
   

Purchases

at Cost

   

Proceeds

from Sales

    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
09/30/21
    Shares
Held at
09/30/21
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares(a)

  $     $ 0 (b)    $     $     $     $           $ 1,148 (c)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    530,000             (50,000 )(b)                  480,000       480,000       8        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $     $     $ 480,000       $ 1,156     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

As of period end, the entity is no longer held.

 
  (b) 

Represents net amount purchased (sold).

 
  (c) 

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.

 

 

 

14  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T     T O    H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

September 30, 2021

   iShares® Global Timber & Forestry ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

Long Contracts

                 

S&P 500 E-Mini Index

     6          12/17/21        $ 1,289        $ (40,895
                 

 

 

 

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:

 

      Equity
Contracts
 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts

   $ 40,895  
  

 

 

 

For the period ended September 30, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 191,928  
  

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:       

Futures contracts

   $ (54,336
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

  

Average notional value of contracts — long

   $ 1,519,868  

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

Fair Value Hierarchy as of Period End

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

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

 

      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Common Stocks

   $ 175,215,393        $ 122,041,290        $        $ 297,256,683  

Money Market Funds

     480,000                            480,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 175,695,393        $ 122,041,290        $        $ 297,736,683  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $ (40,895      $        $        $ (40,895
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  15


 

Statements of Assets and Liabilities (unaudited)

September 30, 2021

 

    

iShares

Global 100 ETF

    

iShares

Global

Infrastructure ETF

   

iShares

Global

Timber &

Forestry ETF

 

ASSETS

      

Investments in securities, at value (including securities on loan)(a):

      

Unaffiliated(b)

  $ 3,347,667,908      $ 3,008,855,815     $ 297,256,683  

Affiliated(c)

    3,756,000        6,406,878       480,000  

Cash

    8,457        22,768       2,190  

Foreign currency, at value(d)

    2,258,878        3,871,576       341,157  

Cash pledged:

      

Futures contracts

    465,000        113,000       70,000  

Foreign currency collateral pledged:

      

Futures contracts(e)

    163,629        765,232        

Receivables:

      

Investments sold

           134,927,912       14,139,074  

Securities lending income — Affiliated

           3,236        

Dividends

    3,600,492        7,337,212       299,177  

Tax reclaims

    1,104,216        237,489       259,041  

Foreign withholding tax claims

    23,023               
 

 

 

    

 

 

   

 

 

 

Total assets

    3,359,047,603        3,162,541,118       312,847,322  
 

 

 

    

 

 

   

 

 

 

LIABILITIES

      

Collateral on securities loaned, at value

           4,755,865        

Payables:

      

Investments purchased

    3,040        134,478,504       16,254,064  

Variation margin on futures contracts

    114,939        97,616       15,600  

Capital shares redeemed

                 479,627  

Investment advisory fees

    1,143,404        1,009,428       102,377  

Professional fees

    230               
 

 

 

    

 

 

   

 

 

 

Total liabilities

    1,261,613        140,341,413       16,851,668  
 

 

 

    

 

 

   

 

 

 

NET ASSETS

  $ 3,357,785,990      $ 3,022,199,705     $ 295,995,654  
 

 

 

    

 

 

   

 

 

 

NET ASSETS CONSIST OF:

      

Paid-in capital

  $ 2,308,083,141      $ 3,122,266,970     $ 269,056,782  

Accumulated earnings (loss)

    1,049,702,849        (100,067,265     26,938,872  
 

 

 

    

 

 

   

 

 

 

NET ASSETS

  $ 3,357,785,990      $ 3,022,199,705     $ 295,995,654  
 

 

 

    

 

 

   

 

 

 

Shares outstanding

    47,250,000        65,900,000       3,480,000  
 

 

 

    

 

 

   

 

 

 

Net asset value

  $ 71.06      $ 45.86     $ 85.06  
 

 

 

    

 

 

   

 

 

 

Shares authorized

    Unlimited        Unlimited       Unlimited  
 

 

 

    

 

 

   

 

 

 

Par value

    None        None       None  
 

 

 

    

 

 

   

 

 

 

(a) Securities loaned, at value

  $      $ 4,324,519     $  

(b) Investments, at cost — Unaffiliated

  $ 2,187,419,412      $ 2,795,119,255     $ 285,790,163  

(c)  Investments, at cost — Affiliated

  $ 3,756,000      $ 6,404,788     $ 480,000  

(d) Foreign currency, at cost

  $ 2,266,511      $ 3,848,000     $ 341,398  

(e) Foreign currency collateral pledged, at cost

  $ 170,343      $ 794,092     $  

See notes to financial statements.

 

 

16  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T     T O    H A R E H O L D E R S


 

Statements of Operations (unaudited)

Six Months Ended September 30, 2021

 

    

iShares

Global 100

ETF

   

iShares

Global

Infrastructure

ETF

   

iShares

Global

Timber &

Forestry ETF

 

INVESTMENT INCOME

     

Dividends — Unaffiliated

  $ 36,919,778     $ 57,302,371     $ 3,351,430  

Dividends — Affiliated

    176       209       8  

Securities lending income — Affiliated — net

    7,589       364,948       1,148  

Foreign taxes withheld

    (3,214,226     (3,146,425     (360,580
 

 

 

   

 

 

   

 

 

 

Total investment income

    33,713,317       54,521,103       2,992,006  
 

 

 

   

 

 

   

 

 

 

EXPENSES

     

Investment advisory fees

    6,645,136       6,327,932       734,650  

Commitment fees

          3,354       1,282  
 

 

 

   

 

 

   

 

 

 

Total expenses

    6,645,136       6,331,286       735,932  
 

 

 

   

 

 

   

 

 

 

Net investment income

    27,068,181       48,189,817       2,256,074  
 

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

     

Net realized gain (loss) from:

     

Investments — Unaffiliated

    (7,256,878     (10,381,376     (2,650,334

Investments — Affiliated

          3,241        

In-kind redemptions — Unaffiliated

    25,606,875       34,195,740       37,265,480  

Futures contracts

    1,190,536       2,120,472       191,928  

Foreign currency transactions

    (78,224     (701,572     (45,353
 

 

 

   

 

 

   

 

 

 

Net realized gain

    19,462,309       25,236,505       34,761,721  
 

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

     

Investments — Unaffiliated

    215,853,196       27,922,363       (39,531,027

Investments — Affiliated

          (140      

Futures contracts

    (413,965     (230,864     (54,336

Foreign currency translations

    (36,823     (760     6,126  
 

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

    215,402,408       27,690,599       (39,579,237
 

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain (loss)

    234,864,717       52,927,104       (4,817,516
 

 

 

   

 

 

   

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

  $ 261,932,898     $ 101,116,921     $ (2,561,442
 

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

I N A N C I A L    T A T E M E N T  S

  17


 

Statements of Changes in Net Assets

 

    iShares
Global 100 ETF
           iShares
Global Infrastructure ETF
 
 

 

 

      

 

 

 
    Six Months Ended
09/30/21
(unaudited)
    Year Ended
03/31/21
           Six Months Ended
09/30/21
(unaudited)
    Year Ended
03/31/21
 

 

 

INCREASE (DECREASE) IN NET ASSETS

          

OPERATIONS

          

Net investment income

  $ 27,068,181     $ 43,191,067        $ 48,189,817     $ 78,913,924  

Net realized gain (loss)

    19,462,309       102,579,128          25,236,505       (62,569,876

Net change in unrealized appreciation (depreciation)

    215,402,408       815,086,813          27,690,599       916,470,827  
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase in net assets resulting from operations

    261,932,898       960,857,008          101,116,921       932,814,875  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Decrease in net assets resulting from distributions to shareholders

    (28,825,936     (40,952,429        (44,726,946     (76,623,860
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

          

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

    151,613,988       197,592,141          (97,810,199     (534,217,723
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

          

Total increase (decrease) in net assets

    384,720,950       1,117,496,720          (41,420,224     321,973,292  

Beginning of period

    2,973,065,040       1,855,568,320          3,063,619,929       2,741,646,637  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

  $ 3,357,785,990     $ 2,973,065,040        $ 3,022,199,705     $ 3,063,619,929  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a)

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

See notes to financial statements.

 

 

18  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T     T O    H A R E H O L D E R S


 

Statements of Changes in Net Assets (continued)

 

    iShares
Global Timber & Forestry ETF
 
    Six Months
Ended
09/30/21
(unaudited)
     Year Ended
03/31/21
 

 

 

INCREASE (DECREASE) IN NET ASSETS

    

OPERATIONS

    

Net investment income

  $ 2,256,074      $ 2,792,041  

Net realized gain (loss)

    34,761,721        (6,301,390

Net change in unrealized appreciation (depreciation)

    (39,579,237      136,206,632  
 

 

 

    

 

 

 

Net increase (decrease) in net assets resulting from operations

    (2,561,442      132,697,283  
 

 

 

    

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

    

Decrease in net assets resulting from distributions to shareholders

    (3,883,911      (2,647,161
 

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS

    

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

    (29,608,604      28,821,616  
 

 

 

    

 

 

 

NET ASSETS

    

Total increase (decrease) in net assets

    (36,053,957      158,871,738  

Beginning of period

    332,049,611        173,177,873  
 

 

 

    

 

 

 

End of period

  $ 295,995,654      $ 332,049,611  
 

 

 

    

 

 

 

 

(a) 

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

See notes to financial statements.

 

 

I N A N C I A L    T A T E M E N T  S

  19


Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Global 100 ETF  
   

Six Months Ended
09/30/21

(unaudited)


 

 

   
Year Ended
03/31/21

 
   
Year Ended
03/31/20

 
   
Year Ended
03/31/19

(a)  
   
Year Ended
03/31/18

(a)  
   
Year Ended
03/31/17

(a)  

 

 

Net asset value, beginning of period

  $ 65.92     $ 44.71     $ 47.57     $ 45.54     $ 40.90     $ 36.07  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

    0.58       0.99       1.06       1.14       1.02       1.05  

Net realized and unrealized gain (loss)(c)

    5.18       21.16       (2.83     1.97       4.65       4.84  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    5.76       22.15       (1.77     3.11       5.67       5.89  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

           

From net investment income

    (0.62     (0.94     (1.09     (1.08     (1.03     (1.06
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (0.62     (0.94     (1.09     (1.08     (1.03     (1.06
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 71.06     $ 65.92     $ 44.71     $ 47.57     $ 45.54     $ 40.90  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

           

Based on net asset value

    8.75 %(f)       49.88     (3.91 )%      7.00     13.97     16.66 %(g)  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.40 %(h)       0.40     0.40     0.40     0.40     0.40
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

    N/A       N/A       0.40     N/A       N/A       0.40
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    1.63 %(h)       1.71     2.11     2.46     2.30     2.78
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 3,357,786     $ 2,973,065     $ 1,855,568     $ 2,031,281     $ 1,780,507     $ 1,590,950  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(i)

    1 %(f)       3     5     9     8     5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Per share amounts reflect a two-for-one stock split effective after the close of trading on May 1, 2018.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2017:

   

Total return by 0.01%

(h) 

Annualized.

(i) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

20  

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Global Infrastructure ETF  
    Six Months Ended
09/30/21
(unaudited)
    Year Ended
03/31/21
    Year Ended
03/31/20
    Year Ended
03/31/19
    Year Ended
03/31/18
    Year Ended
03/31/17
 

 

 

Net asset value, beginning of period

  $ 45.05     $ 33.89     $ 44.78     $ 42.73     $ 42.18     $ 39.18  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    0.72       1.04       1.54       1.34       1.44       1.29  

Net realized and unrealized gain (loss)(b)

    0.77       11.14       (10.86     2.10       0.45       2.88  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    1.49       12.18       (9.32     3.44       1.89       4.17  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

           

From net investment income

    (0.68     (1.02     (1.57     (1.39     (1.34     (1.17
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (0.68     (1.02     (1.57     (1.39     (1.34     (1.17
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 45.86     $ 45.05     $ 33.89     $ 44.78     $ 42.73     $ 42.18  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

           

Based on net asset value

    3.26 %(e)       36.27 %(f)       (21.75 )%      8.40     4.37     10.85
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.41 %(g)       0.43     0.46     0.46     0.47     0.48
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    3.10 %(g)       2.57     3.38     3.15     3.24     3.22
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 3,022,200     $ 3,063,620     $ 2,741,647     $ 2,825,830     $ 2,503,687     $ 1,560,481  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

    7 %(e)       25     9     19     11     23
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Includes payment received from an affiliate, which had no impact on the Fund’s total return.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L    I G H L I G H T  S

  21


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Global Timber & Forestry ETF  
    Six Months Ended
09/30/21
(unaudited)
    Year Ended
03/31/21
    Year Ended
03/31/20
    Year Ended
03/31/19
    Year Ended
03/31/18
    Year Ended
03/31/17
 

 

 

Net asset value, beginning of period

  $ 85.14     $ 48.10     $ 63.82     $ 78.11     $ 57.39     $ 47.07  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    0.56       0.78       0.79       1.57       0.82       1.06 (b)  

Net realized and unrealized gain (loss)(c)

    0.22       37.04       (15.27     (14.25     20.75       10.14  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    0.78       37.82       (14.48     (12.68     21.57       11.20  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

           

From net investment income

    (0.86     (0.78     (1.24     (1.61     (0.85     (0.88
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (0.86     (0.78     (1.24     (1.61     (0.85     (0.88
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 85.06     $ 85.14     $ 48.10     $ 63.82     $ 78.11     $ 57.39  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

           

Based on net asset value

    0.90 %(f)       79.23     (23.04 )%      (16.22 )%      37.92     24.18 %(b) 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.41 %(g)       0.43     0.46     0.46     0.47     0.51
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

    N/A       N/A       N/A       0.46     N/A       0.48
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    1.25 %(g)       1.15     1.30     2.17     1.21     2.09 %(b)  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 295,996     $ 332,050     $ 173,178     $ 279,553     $ 440,542     $ 234,161  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

    9 %(f)       14     10     18     31     17
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2017:

   

Net investment income per share by $0.14.

   

Total return by 0.30%.

   

Ratio of net investment income to average net assets by 0.27%.

(c) 

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

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

22  

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Notes to Financial Statements (unaudited)

 

 

1.

ORGANIZATION

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

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

 

iShares ETF   Diversification  
Classification  

Global 100

  Diversified  

Global Infrastructure

  Diversified  

Global Timber & Forestry

  Non-diversified  

 

2.

SIGNIFICANT ACCOUNTING POLICIES

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

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

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

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

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of September 30, 2021, if any, are disclosed in the Statements of Assets and Liabilities.

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

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and record cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

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

 

 

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

  23


Notes to Financial Statements  (unaudited) (continued)

 

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

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

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

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

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

   

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

   

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

   

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

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

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

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

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

   

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

   

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

   

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

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

 

 

24  

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Notes to Financial Statements  (unaudited) (continued)

 

4. SECURITIES AND OTHER INVESTMENTS

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

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

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

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

 

 

 
iShares ETF and Counterparty    
Market Value of
Securities on Loan
 
 
    
Cash Collateral
Received
 
(a)  
   
Non-Cash Collateral
Received
 
 
     Net Amount  

 

 

Global Infrastructure

         

Citigroup Global Markets, Inc.

  $ 729,300      $ 729,300     $      $  

Goldman Sachs & Co. LLC

    84,330        84,330               

HSBC Bank PLC

    55,845        55,845               

J.P. Morgan Securities LLC

    428,840        428,840               

Morgan Stanley

    2,024,920        2,024,920               

State Street Bank & Trust Co.

    847,671        847,319              (352 )(b)  

UBS AG

    60,583        60,583               

UBS Securities LLC

    93,030        93,030               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 4,324,519      $ 4,324,167     $      $ (352
 

 

 

    

 

 

   

 

 

    

 

 

 

 

  (a) 

Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities.

 
  (b) 

The market value of the loaned securities is determined as of September 30, 2021. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty.

 

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

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

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

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

 

 

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  25


Notes to Financial Statements  (unaudited) (continued)

 

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

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

For its investment advisory services to the iShares Global 100 ETF, BFA is entitled to an annual investment advisory fee of 0.40%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.

For its investment advisory services to each of the iShares Global Infrastructure and iShares Global Timber & Forestry ETFs, BFA is entitled to annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds as follows:

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  

First $10 billion

    0.4800

Over $10 billion, up to and including $20 billion

    0.4300  

Over $20 billion, up to and including $30 billion

    0.3800  

Over $30 billion, up to and including $40 billion

    0.3420  

Over $40 billion

    0.3078  

Prior to July 14, 2021, for its investment advisory services to each of the iShares Global Infrastructure and iShares Global Timber & Forestry ETFs, BFA was entitled to annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds as follows:

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  

First $10 billion

    0.480

Over $10 billion, up to and including $20 billion

    0.430  

Over $20 billion, up to and including $30 billion

    0.380  

Over $30 billion

    0.342  

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

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

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

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

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

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statements of operations. For the six months ended September 30, 2021, the Funds paid BTC the following amounts for securities lending agent services:

 

iShares ETF   Fees Paid
to BTC
 

Global 100

  $ 2,279  

Global Infrastructure

    88,141  

Global Timber & Forestry

    492  

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

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

For the six months ended September 30, 2021, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

iShares ETF   Purchases      Sales      Net Realized
Gain (Loss)
 

Global 100

  $  5,525,340      $ 980,724      $  (318,243)  

Global Infrastructure

    1,932,556        5,671,413        (502,689)  

Global Timber & Forestry

    550,236        224,733        (29,959)  

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

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

7.    PURCHASES AND SALES

For the six months ended September 30, 2021, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:

 

iShares ETF   Purchases      Sales  

Global 100

  $ 65,690,323      $ 43,739,391  

Global Infrastructure

    315,947,974        219,044,122  

Global Timber & Forestry

    30,000,424        32,616,659  

For the six months ended September 30, 2021, in-kind transactions were as follows:

 

iShares ETF   In-kind
Purchases
    

In-kind

Sales

 

Global 100

  $  177,096,065      $ 42,603,796  

Global Infrastructure

    13,003,274        145,859,854  

Global Timber & Forestry

    113,973,933        137,848,023  

8.    INCOME TAX INFORMATION

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

Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of March 31, 2021, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF   Non-Expiring  

Global 100

  $  109,913,744  

Global Infrastructure

    316,510,669  

Global Timber & Forestry

    15,058,197  

 

 

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  27


Notes to Financial Statements  (unaudited) (continued)

 

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

As of September 30, 2021, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

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

Global 100

  $  2,227,637,783      $  1,329,775,081      $  (206,290,959)      $  1,123,484,122  

Global Infrastructure

    2,841,572,842        329,003,184        (155,537,288)        173,465,896  

Global Timber & Forestry

    289,024,282        23,529,076        (14,857,570)        8,671,506  

9.    LINE OF CREDIT

The Funds, along with certain other iShares funds (“Participating Funds”), are parties to a $300 million credit agreement (“Credit Agreement”) with State Street Bank and Trust Company, which expires on October 15, 2021. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Credit Agreement sets specific sub limits on aggregate borrowings based on two tiers of Participating Funds: $300 million with respect to the funds within Tier 1, including the Funds, and $200 million with respect to Tier 2. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Credit Agreement. The Credit Agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR rate (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Credit Agreement. The Credit Agreement was terminated on August 12, 2021.

Effective August 13, 2021, the Funds, along with certain other iShares funds (“Participating Funds”), are parties to a $800 million credit agreement (“Syndicated Credit Agreement”) with a group of lenders, which expires on August 12, 2022. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Syndicated Credit Agreement. The Syndicated Credit Agreement has the following terms: a commitment fee of 0.15% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR rate (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Syndicated Credit Agreement.

During the six months ended September 30, 2021, the Funds did not borrow under the Credit Agreement or Syndicated Credit Agreement.

10.  PRINCIPAL RISKS

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

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

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

Market Risk: An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling

 

 

28  

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Notes to Financial Statements  (unaudited) (continued)

 

illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

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

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

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

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

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

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

Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, the United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching.

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

LIBORTransition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates will be phased out by the end of 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

11.  CAPITAL SHARE TRANSACTIONS

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

 

 

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  29


Notes to Financial Statements  (unaudited) (continued)

 

Transactions in capital shares were as follows:

 

     Six Months Ended
09/30/21
    Year Ended
03/31/21
 
iShares ETF   Shares     Amount     Shares     Amount  

Global 100

       

Shares sold

    2,800,000     $ 196,867,500       7,400,000     $ 411,867,144  

Shares redeemed

    (650,000     (45,253,512     (3,800,000     (214,275,003
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

    2,150,000     $ 151,613,988       3,600,000     $ 197,592,141  
 

 

 

   

 

 

   

 

 

   

 

 

 

Global Infrastructure

       

Shares sold

    1,100,000     $ 52,003,391       3,300,000     $ 125,731,306  

Shares redeemed

    (3,200,000     (149,813,590     (16,200,000     (659,949,029
 

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease

    (2,100,000   $ (97,810,199     (12,900,000   $ (534,217,723
 

 

 

   

 

 

   

 

 

   

 

 

 

Global Timber & Forestry

       

Shares sold

    1,320,000     $