September
30,
2022
iShares
Trust
iShares
U.S.
Aerospace
&
Defense
ETF
|
ITA
|
Cboe
BZX
iShares
U.S.
Broker-Dealers
&
Securities
Exchanges
ETF
|
IAI
|
NYSE
Arca
iShares
U.S.
Healthcare
Providers
ETF
|
IHF
|
NYSE
Arca
iShares
U.S.
Home
Construction
ETF
|
ITB
|
Cboe
BZX
iShares
U.S.
Infrastructure
ETF
|
IFRA
|
Cboe
BZX
iShares
U.S.
Insurance
ETF
|
IAK
|
NYSE
Arca
iShares
U.S.
Medical
Devices
ETF
|
IHI
|
NYSE
Arca
iShares
U.S.
Oil
&
Gas
Exploration
&
Production
ETF
|
IEO
|
Cboe
BZX
iShares
U.S.
Oil
Equipment
&
Services
ETF
|
IEZ
|
NYSE
Arca
iShares
U.S.
Pharmaceuticals
ETF
|
IHE
|
NYSE
Arca
iShares
U.S.
Real
Estate
ETF
|
IYR
|
NYSE
Arca
iShares
U.S.
Regional
Banks
ETF
|
IAT
|
NYSE
Arca
iShares
U.S.
Telecommunications
ETF
|
IYZ
|
Cboe
BZX
2022
Semi-Annual
Report
(Unaudited)
Dear
Shareholder,
The
12-month
reporting
period
as
of
September
30,
2022
saw
the
emergence
of
significant
challenges
that
disrupted
the
economic
recovery
and
strong
financial
markets
of
2021.
The
U.S.
economy
shrank
in
the
first
half
of
2022,
ending
the
run
of
robust
growth
that
followed
the
reopening
of
global
economies
and
the
development
of
COVID-19
vaccines.
Changes
in
consumer
spending
patterns
and
a
tight
labor
market
led
to
elevated
inflation,
which
reached
a
40-year
high.
Moreover,
while
the
foremost
effect
of
Russia’s
invasion
of
Ukraine
has
been
a
severe
humanitarian
crisis,
the
ongoing
war
continued
to
present
challenges
for
both
investors
and
policymakers.
Equity
prices
fell
as
interest
rates
rose,
particularly
weighing
on
relatively
high-valuation
growth
stocks
and
economically
sensitive
small-capitalization
stocks.
While
both
large-
and
small-capitalization
U.S.
stocks
fell,
declines
for
small-capitalization
U.S.
stocks
were
steeper.
Both
emerging
market
stocks
and
international
equities
from
developed
markets
fell
significantly,
pressured
by
rising
interest
rates
and
a
strengthening
U.S.
dollar.
The
10-year
U.S.
Treasury
yield
(which
is
inversely
related
to
bond
prices)
rose
notably
during
the
reporting
period
as
investors
reacted
to
higher
inflation
and
attempted
to
anticipate
its
impact
on
future
interest
rate
changes.
The
corporate
bond
market
also
faced
inflationary
headwinds,
and
increasing
uncertainty
led
to
higher
corporate
bond
spreads
(the
difference
in
yield
between
U.S.
Treasuries
and
similarly-dated
corporate
bonds).
The
U.S.
Federal
Reserve
(the
“Fed”),
acknowledging
that
inflation
is
proving
more
persistent
than
expected,
raised
interest
rates
five
times
while
indicating
that
additional
rate
hikes
were
likely.
Furthermore,
the
Fed
wound
down
its
bond-buying
programs
and
is
accelerating
the
reduction
of
its
balance
sheet.
As
investors
attempted
to
assess
the
Fed’s
future
trajectory,
the
Fed’s
statements
late
in
the
reporting
period
led
markets
to
believe
that
additional
tightening
is
likely
in
the
near
term.
The
pandemic’s
restructuring
of
the
economy
brought
an
ongoing
mismatch
between
supply
and
demand,
contributing
to
the
current
inflationary
regime.
While
growth
has
slowed
in
2022,
we
believe
that
taming
inflation
requires
a
more
dramatic
economic
decline
to
bring
demand
back
to
a
lower
level
that
is
more
in
line
with
the
economy’s
capacity.
The
Fed
has
been
raising
interest
rates
at
the
fastest
pace
in
decades,
and
seems
set
to
overtighten
in
its
effort
to
get
inflation
back
to
target.
With
this
in
mind,
we
believe
the
possibility
of
a
U.S.
recession
in
the
near-term
is
high,
and
the
outlook
for
Europe
and
the
U.K.
is
also
troubling.
Investors
should
expect
a
period
of
higher
volatility
as
markets
adjust
to
the
new
economic
reality
and
policymakers
attempt
to
adapt
to
rapidly
changing
conditions.
In
this
environment,
while
we
favor
an
overweight
to
equities
in
the
long-term,
the
market’s
concerns
over
excessive
rate
hikes
from
central
banks
moderate
our
outlook.
Rising
input
costs
and
a
deteriorating
economic
backdrop
in
China
and
Europe
are
likely
to
challenge
corporate
earnings,
so
we
are
underweight
equities
overall
in
the
near
term.
However,
we
see
better
opportunities
in
credit,
where
higher
spreads
provide
income
opportunities
and
partially
compensate
for
inflation
risk.
We
believe
that
investment-grade
corporates,
local-currency
emerging
market
debt,
and
inflation-protected
bonds
(particularly
in
Europe)
offer
strong
opportunities
for
a
six-
to
twelve-month
horizon.
Overall,
our
view
is
that
investors
need
to
think
globally,
position
themselves
to
be
prepared
for
a
decarbonizing
economy,
and
be
nimble
as
market
conditions
change.
We
encourage
you
to
talk
with
your
financial
advisor
and
visit
iShares.com
for
further
insight
about
investing
in
today’s
markets.
Sincerely,
Rob
Kapito
President,
BlackRock,
Inc.
The
Markets
in
Review
Rob
Kapito
President,
BlackRock,
Inc.
Total
Returns
as
of
September
30,
2022
Past
performance
is
not
an
indication
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
(20.20
)%
(15.47
)%
U.S.
small
cap
equities
(Russell
2000
®
Index)
(19.01
)
(23.50
)
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
(22.51
)
(25.13
)
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
(21.70
)
(28.11
)
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
0.58
0.63
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
(10.81
)
(16.20
)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
(9.22
)
(14.60
)
Tax-exempt
municipal
bonds
(Bloomberg
Municipal
Bond
Index)
(6.30
)
(11.50
)
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
(10.42
)
(14.15
)
2
This
Page
is
not
Part
of
Your
Fund
Report
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Semi-Annual
Report:
Fund
Summary
........................................................................................................
4
About
Fund
Performance
..................................................................................................
17
Disclosure
of
Expenses
...................................................................................................
17
Schedules
of
Investments
.................................................................................................
18
Financial
Statements:
Statements
of
Assets
and
Liabilities
.........................................................................................
56
Statements
of
Operations
................................................................................................
60
Statements
of
Changes
in
Net
Assets
........................................................................................
64
Financial
Highlights
.....................................................................................................
71
Notes
to
Financial
Statements
...............................................................................................
84
Board
Review
and
Approval
of
Investment
Advisory
Contract
...........................................................................
95
Supplemental
Information
.................................................................................................
103
General
Information
.....................................................................................................
104
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
105
iShares
®
U.S.
Aerospace
&
Defense
ETF
4
2022
iShares
Semi-Annual
Report
to
Shareholders
Fund
Summary
as
of
September
30,
2022
Investment
Objective
The
iShares
U.S.
Aerospace
&
Defense
ETF
(the
“Fund”)
seeks
to
track
the
investment
results
of
an
index
composed
of
U.S.
equities
in
the
aerospace
and
defense
sector,
as
represented
by
the
Dow
Jones
U.S.
Select
Aerospace
&
Defense
Index
TM
(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
Past
performance
is
not
an
indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
See
“About
Fund
Performance”
for
more
information.
Expense
Example
Portfolio
Information
Average
Annual
Total
Returns
Cumulative
Total
Returns
6-Month
Total
Returns
1
Year
5
Years
10
Years
1
Year
5
Years
10
Years
Fund
NAV
..................
(17.12
)
%
(11.71
)
%
1.63
%
12.21
%
(11.71
)
%
8.40
%
216.34
%
Fund
Market
................
(17.13
)
(11.66
)
1.64
12.22
%
(11.66
)
8.46
216.76
Index
.....................
(16.95
)
(11.39
)
2.06
12.67
(11.39
)
10.73
229.64
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(04/01/22)
Ending
Account
Value
(09/30/22)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(04/01/22)
Ending
Account
Value
(09/30/22)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00
$
828.80
$
1.83
$
1,000.00
$
1,023.06
$
2.03
0.40
%
(a)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183/365
(to
reflect
the
one-half
year
period
shown).
Other
fees,
such
as
brokerage
commissions
and
other
fees
to
financial
intermediaries,
may
be
paid
which
are
not
reflected
in
the
tables
and
examples
above.
See
“Disclosure
of
Expenses”
for
more
information.
SECTOR
ALLOCATION
Sector
Percent
of
Total
Investments
(a)
Aerospace
&
Defense
.............................
97.3‌
%
Industrial
Machinery
..............................
2.2‌
Leisure
Products
................................
0.5‌
a
a
(a)
Excludes
money
market
funds.
TEN
LARGEST
HOLDINGS
Security
Percent
of
Total
Investments
(a)
Raytheon
Technologies
Corp.
.......................
21.4‌
%
Lockheed
Martin
Corp.
............................
16.2‌
Boeing
Co.
(The)
................................
7.4‌
Northrop
Grumman
Corp.
..........................
4.8‌
General
Dynamics
Corp.
...........................
4.7‌
Textron,
Inc.
...................................
4.5‌
L3Harris
Technologies,
Inc.
.........................
4.5‌
TransDigm
Group,
Inc.
............................
4.3‌
Howmet
Aerospace,
Inc.
...........................
4.2‌
Huntington
Ingalls
Industries,
Inc.
.....................
3.2‌
aaa
aa
iShares
®
U.S.
Broker-Dealers
&
Securities
Exchanges
ETF
5
Fund
Summary
Fund
Summary
as
of
September
30,
2022
Investment
Objective
The
iShares
U.S.
Broker-Dealers
&
Securities
Exchanges
ETF
(the
“Fund”)
seeks
to
track
the
investment
results
of
an
index
composed
of
U.S.
equities
in
the
investment
services
sector,
as
represented
by
the
Dow
Jones
U.S.
Select
Investment
Services
Index
TM
(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
Past
performance
is
not
an
indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
See
“About
Fund
Performance”
for
more
information.
Expense
Example
Portfolio
Information
Average
Annual
Total
Returns
Cumulative
Total
Returns
6-Month
Total
Returns
1
Year
5
Years
10
Years
1
Year
5
Years
10
Years
Fund
NAV
..................
(13.64
)
%
(16.38
)
%
10.25
%
16.37
%
(16.38
)
%
62.87
%
355.57
%
Fund
Market
................
(13.64
)
(16.40
)
10.26
16.39
%
(16.40
)
62.97
356.06
Index
.....................
(13.46
)
(16.05
)
10.63
16.76
(16.05
)
65.68
370.86
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(04/01/22)
Ending
Account
Value
(09/30/22)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(04/01/22)
Ending
Account
Value
(09/30/22)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00
$
863.60
$
1.87
$
1,000.00
$
1,023.06
$
2.03
0.40
%
(a)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183/365
(to
reflect
the
one-half
year
period
shown).
Other
fees,
such
as
brokerage
commissions
and
other
fees
to
financial
intermediaries,
may
be
paid
which
are
not
reflected
in
the
tables
and
examples
above.
See
“Disclosure
of
Expenses”
for
more
information.
SECTOR
ALLOCATION
Sector
Percent
of
Total
Investments
(a)
Investment
Banking
&
Brokerage
.....................
77.4‌
%
Financial
Exchanges
&
Data
........................
22.3‌
Asset
Management
&
Custody
Banks
..................
0.3‌
a
a
(a)
Excludes
money
market
funds.
TEN
LARGEST
HOLDINGS
Security
Percent
of
Total
Investments
(a)
Morgan
Stanley
.................................
19.5‌
%
Goldman
Sachs
Group,
Inc.
(The)
....................
18.4‌
Charles
Schwab
Corp.
(The)
........................
7.0‌
LPL
Financial
Holdings,
Inc.
.........................
4.8‌
Cboe
Global
Markets,
Inc.
..........................
4.7‌
Raymond
James
Financial,
Inc.
......................
4.6‌
Nasdaq,
Inc.
...................................
4.5‌
MarketAxess
Holdings,
Inc.
.........................
4.4‌
CME
Group,
Inc.,
Class
A
..........................
4.4‌
Intercontinental
Exchange,
Inc.
......................
4.4‌
aaa
aa
iShares
®
U.S.
Healthcare
Providers
ETF
6
2022
iShares
Semi-Annual
Report
to
Shareholders
Fund
Summary
as
of
September
30,
2022
Investment
Objective
The
iShares
U.S.
Healthcare
Providers
ETF
(the
“Fund”)
seeks
to
track
the
investment
results
of
an
index
composed
of
U.S.
equities
in
the
healthcare
providers
sector,
as
represented
by
the
Dow
Jones
U.S.
Select
Health
Care
Providers
Index
TM
(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
Past
performance
is
not
an
indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
See
“About
Fund
Performance”
for
more
information.
Expense
Example
Portfolio
Information
Average
Annual
Total
Returns
Cumulative
Total
Returns
6-Month
Total
Returns
1
Year
5
Years
10
Years
1
Year
5
Years
10
Years
Fund
NAV
...................
(9.38
)
%
0.53
%
13.01
%
14.99
%
0.53
%
84.29
%
304.12
%
Fund
Market
.................
(9.40
)
0.49
13.02
14.99
%
0.49
84.37
304.29
Index
......................
(9.22
)
0.91
13.47
15.45
0.91
88.07
320.80
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(04/01/22)
Ending
Account
Value
(09/30/22)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(04/01/22)
Ending
Account
Value
(09/30/22)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00
$
906.20
$
1.91
$
1,000.00
$
1,023.06
$
2.03
0.40
%
(a)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183/365
(to
reflect
the
one-half
year
period
shown).
Other
fees,
such
as
brokerage
commissions
and
other
fees
to
financial
intermediaries,
may
be
paid
which
are
not
reflected
in
the
tables
and
examples