LOGO

  AUGUST 31, 2023

 

   2023 Annual Report

 

iShares, Inc.

 

·  

iShares MSCI Eurozone ETF | EZU | Cboe BZX

 

·  

iShares MSCI Germany ETF | EWG | NYSE Arca

 

·  

iShares MSCI Italy ETF | EWI | NYSE Arca

 

·  

iShares MSCI Spain ETF | EWP | NYSE Arca

 

·  

iShares MSCI Switzerland ETF | EWL | NYSE Arca


The Markets in Review

Dear Shareholder,

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

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

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

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

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

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

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

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of August 31, 2023

 

    

 

6-Month

 

 

 

12-Month

 

 

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

 

  14.50%   15.94%

 

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

 

  0.99    4.65 

 

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

 

  4.75   17.92

 

Emerging market equities
(MSCI Emerging Markets Index)

 

   3.62     1.25 

 

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

 

   2.47    4.25

 

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

 

  0.11   (4.71)

 

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

 

  0.95   (1.19)

 

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

 

   1.04    1.70

 

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

 

   4.55     7.19 

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

 

 

 

2  

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


Table of Contents

 

      Page  

The Markets in Review

     2  

Annual Report:

  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     15  

Disclosure of Expenses

     15  

Schedules of Investments

     16  

Financial Statements

  

Statements of Assets and Liabilities

     35  

Statements of Operations

     37  

Statements of Changes in Net Assets

     39  

Financial Highlights

     42  

Notes to Financial Statements

     47  

Report of Independent Registered Public Accounting Firm

     57  

Important Tax Information

     58  

Board Review and Approval of Investment Advisory Contract

     59  

Supplemental Information

     68  

Director and Officer Information

     70  

General Information

     72  

Glossary of Terms Used in this Report

     73  

 

 

 


Market Overview

 

iShares, Inc.

Global Market Overview

Global equity markets advanced during the 12 months ended August 31, 2023 (“reporting period”), supported by continued economic growth and moderating inflation. The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 13.95% in U.S. dollar terms for the reporting period. Despite concerns about the impact of higher interest rates and rising prices, the global economy continued to grow, albeit at a slower pace than during the initial post-coronavirus pandemic recovery. Inflation began to subside in most regions of the world, and lower energy prices reduced pressure on consumers, leading consumer and business sentiment to improve. While the Russian invasion of Ukraine continued to disrupt trade in Europe and elsewhere, market adaptation lessened the economic impact of the ongoing war. The prices of several key commodities, including oil, natural gas, and wheat, either stabilized or declined during the reporting period, easing pressure on the world’s economies.

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

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

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

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

 

 

4  

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


Fund Summary as of August 31 2023    iShares® MSCI Eurozone ETF

 

Investment Objective

The iShares MSCI Eurozone ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization equities from developed market countries that use the euro as their official currency, as represented by the MSCI EMU Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    30.09     4.32     5.25        30.09     23.52     66.77

Fund Market

    29.93       4.38       5.24          29.93       23.93       66.66  

Index

    29.81       4.19       5.25                29.81       22.77       66.78  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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

Expense Example

 

Actual         Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(03/01/23)
 
 
 
    

Ending
Account Value
(08/31/23)
 
 
 
    

Expenses
Paid During
the Period
 
 
(a) 
       

Beginning
Account Value
(03/01/23)
 
 
 
    

Ending
Account Value
(08/31/23)
 
 
 
    

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $  1,000.00        $  1,050.10        $  2.64           $  1,000.00        $  1,022.60        $  2.60          0.51

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D S U M M A R Y

  5


Fund Summary as of August 31, 2023 (continued)    iShares® MSCI Eurozone ETF

 

Portfolio Management Commentary

Stocks in the Eurozone advanced for the reporting period as equity markets in Europe outpaced most other regions of the globe, despite modest economic growth. Eurozone stocks benefited from a solid recovery following the early phases of the war in Ukraine. While the conflict initially disrupted critical natural gas supplies, the acquisition of new sources led to price declines, and a warm winter helped moderate consumption. The ECB responded to the highest inflation since the introduction of the euro by raising interest rates eight times and beginning to reduce the size of its debt holdings. Inflation across the Eurozone declined steadily from a peak of 10.6% in October 2022. The value of Eurozone stocks in U.S. dollar terms increased as the euro strengthened relative to the U.S. dollar.

Stocks in France contributed the most to the Index’s performance. The French capital goods industry, in the industrials sector, led the gains. Overcoming significant supply-chain challenges, French manufacturers of jets and engines advanced as air travel recovered, and orders for new planes increased accordingly. French electrical equipment manufacturers benefited from stronger sales in the U.S., where new government incentives and funding encouraged business investment in new semiconductor, electric vehicle, and battery manufacturing plants. The French consumer discretionary sector also contributed, buoyed by solid sales of luxury goods in Europe and Asia, owing in part to the rebound in international travel and the end of China’s coronavirus pandemic-related lockdowns.

German stocks also contributed to the Index’s return, despite a sharp slowdown in the German economy. Following a two-quarter recession, German economic growth was stagnant in the second quarter of 2023. The information technology sector led the gains, benefiting from growth in cloud-based services in the software industry. Stocks of multi-line insurers in the financials sector also contributed, amid strong profits from life and health insurance sales. In the industrials sector, stocks in the industrial conglomerates industry were buoyed by strong earnings guidance amid easing supply chain bottlenecks.

Portfolio Information

 

SECTOR ALLOCATION

 

 

   
Sector    
Percent of
Total Investments
 
(a) 

Financials

    17.2

Consumer Discretionary

    16.6  

Industrials

    15.9  

Information Technology

    11.8  

Health Care

    8.2  

Consumer Staples

    8.0  

Materials

    6.5  

Utilities

    6.1  

Energy

    4.6  

Communication Services

    4.2  

Real Estate

    0.9  

GEOGRAPHIC ALLOCATION

 

 

   
Country/Geographic Region    
Percent of
Total Investments
 
(a) 

France

    35.9

Germany

    25.0  

Netherlands

    13.4  

Spain

    7.5  

Italy

    7.4  

Belgium

    3.0  

Finland

    2.6  

Ireland

    2.5  

Switzerland

    1.1  

Portugal

    0.6  
  (a) 

Excludes money market funds.

 

 

6  

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


Fund Summary as of August 31, 2023     iShares® MSCI Germany ETF

 

Investment Objective

The iShares MSCI Germany ETF (the “Fund”) seeks to track the investment results of an index composed of German equities, as represented by the MSCI Germany Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    31.27     0.97     3.31        31.27     4.96     38.53

Fund Market

    31.39       1.08       3.30          31.39       5.53       38.39  

Index

    31.37       1.15       3.49                31.37       5.87       40.87  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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

Expense Example

 

      Actual          Hypothetical 5% Return  
 

 

 

     

 

 

      
         

Beginning
Account Value
(03/01/23)
 
 
 
    

Ending
Account Value
(08/31/23)
 
 
 
    

Expenses
Paid During
the Period
 
 
(a) 
       

Beginning
Account Value
(03/01/23)
 
 
 
    

Ending
Account Value
(08/31/23)
 
 
 
    

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
          $  1,000.00        $  1,051.40        $  2.59           $  1,000.00        $  1,022.70        $  2.55          0.50

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D S U M M A R Y

  7


Fund Summary as of August 31, 2023 (continued)    iShares® MSCI Germany ETF

 

Portfolio Management Commentary

Despite sluggish economic growth, stocks in Germany advanced significantly for the reporting period. German stocks benefited from improved energy security, as alternate fuel suppliers and a warm winter helped offset supply problems in the wake of Russia’s decision to stop supplying Germany with natural gas shortly before the start of the reporting period. While inflation remained elevated, it declined notably as the ECB raised interest rates eight times during the reporting period in an attempt to control rising prices. Higher interest rates supported the euro, which appreciated relative to the U.S. dollar, making German stocks more valuable in U.S. dollar terms.

The information technology sector contributed the most to the Index’s return, led by the software industry. Product offerings as part of enterprise resource planning software drove revenue gains, as software designed to improve business processes and operations was adopted by several major companies. Strong sales of cloud software, which provides a recurring stream of revenue, bolstered the industry’s profits, and layoffs helped to reduce costs while divestment of a large subsidiary was part of a restructuring plan to focus on core business.

Stocks in the financials sector also contributed to the Index’s return, most notably in the insurance industry. The ECB’s substantial interest rate increases benefited the industry, as higher interest rates allowed insurance companies to make more income from their investments. Earnings from insurance related to life and health or property and casualty were particularly strong.

The industrials sector also posted solid gains, as stocks in the industrial conglomerates industry were buoyed by strong earnings guidance amid easing supply chain bottlenecks. Price increases and productivity gains helped to offset higher wages and more expensive raw materials.

Portfolio Information

 

SECTOR ALLOCATION

 

 

   
Sector    
Percent of
Total Investments
 
(a) 

Industrials

    18.6

Financials

    18.0  

Consumer Discretionary

    15.9  

Information Technology

    15.4  

Health Care

    10.7  

Materials

    6.7  

Communication Services

    5.9  

Utilities

    4.1  

Consumer Staples

    2.9  

Real Estate

    1.8  

TEN LARGEST HOLDINGS

 

 

   
Security    
Percent of
Total Investments
 
(a) 

SAP SE

    11.2

Siemens AG

    8.8  

Allianz SE

    7.5  

Deutsche Telekom AG

    5.3  

Mercedes-Benz Group AG

    4.5  

Bayer AG

    4.1  

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen

    4.1  

Infineon Technologies AG

    3.6  

Deutsche Post AG

    3.6  

BASF SE

    3.5  
  (a) 

Excludes money market funds.

 

 

8  

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


Fund Summary as of August 31, 2023    iShares® MSCI Italy ETF

 

Investment Objective

The iShares MSCI Italy ETF (the “Fund”) seeks to track the investment results of an index composed of Italian equities, as represented by the MSCI Italy 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    44.24     6.91     5.24        44.24     39.65     66.58

Fund Market

    44.26       6.98       5.24          44.26       40.14       66.62  

Index

    44.09       7.14       5.32                44.09       41.15       67.96  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

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

Expense Example

 

      Actual         Hypothetical 5% Return  
 

 

 

     

 

 

      
         

Beginning
Account Value
(03/01/23)
 
 
 
    

Ending
Account Value
(08/31/23)
 
 
 
    

Expenses
Paid During
the Period
 
 
(a) 
       

Beginning
Account Value
(03/01/23)
 
 
 
    

Ending
Account Value
(08/31/23)
 
 
 
    

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
          $  1,000.00        $  1,096.80        $  2.64           $  1,000.00        $  1,022.70        $  2.55          0.50

 

  (a)

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D S U M M A R Y

  9


Fund Summary as of August 31, 2023 (continued)    iShares® MSCI Italy ETF

 

Portfolio Management Commentary

Stocks in Italy rose sharply during the reporting period despite a sluggish economy and lower consumer spending. Italian stocks rebounded from a weak 2022, when the war in Ukraine sent natural gas prices higher and raised concerns over Italy’s dependence on Russia for energy. Italy’s energy prices declined after Italy secured additional sources of fuel and replenished its stockpiles, while a warm winter helped moderate consumption. The ECB responded to the Eurozone’s highest ever inflation by raising interest rates eight times and reducing the size of its balance sheet. Italy’s inflation peaked at 11.8% in October and November 2022 before declining to a low of 5.4% in August 2023 as energy prices declined.

The financials sector contributed the most to the Index’s performance, led by the banking industry. Banks posted higher profits amid high interest income, as loan volume strengthened and higher interest rates increased the gap between the rates the banks charge for loans and the low rates they pay for deposits. Despite economic challenges in Italy and other European countries, provisions for expected losses from unpaid loans continued to remain at low levels. Banks rewarded shareholders by increasing stock buybacks and dividends. Late in the reporting period, the Italian government announced a new windfall profits tax targeting the stronger interest income collected by banks, weighing on the industry.

The consumer discretionary sector also contributed to the Index’s performance, led by the automobiles industry. Auto sales increased as manufacturers resolved supply chain disruptions, notably a global shortage of microchips that slowed vehicle production during the coronavirus pandemic. To meet growing demand for new cars and trucks, automobile manufacturers increased vehicle production and dealers restocked inventories.

Portfolio Information

 

SECTOR ALLOCATION

 

 

   
Sector    
Percent of
Total Investments

(a) 

Financials

    32.4

Consumer Discretionary

    20.4  

Utilities

    19.1  

Industrials

    8.3  

Energy

    7.3  

Health Care

    6.0  

Communication Services

    3.8  

Consumer Staples

    2.7  

TEN LARGEST HOLDINGS

 

 

   
Security    
Percent of
Total Investments

(a) 

Enel SpA

    11.5

UniCredit SpA

    9.0  

Intesa Sanpaolo SpA

    8.3  

Stellantis NV

    8.2  

Ferrari NV

    7.9  

CNH Industrial NV

    4.6  

Assicurazioni Generali SpA

    4.5  

Eni SpA

    4.4  

Moncler SpA

    4.3  

Terna - Rete Elettrica Nazionale

    3.9  
  (a) 

Excludes money market funds.

 

 

10  

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


Fund Summary as of August 31, 2023    iShares® MSCI Spain ETF

 

Investment Objective

The iShares MSCI Spain ETF (the “Fund”) seeks to track the investment results of an index composed of Spanish equities, as represented by the MSCI Spain 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    34.16     2.20     2.74        34.16     11.47     31.09

Fund Market

    34.52       2.32       2.74          34.52       12.15       31.09  

Index

    34.44       2.52       3.18                34.44       13.24       36.73  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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

Expense Example

 

      Actual         Hypothetical 5% Return  
 

 

 

     

 

 

      
         

Beginning
Account Value
(03/01/23)
 
 
 
    

Ending
Account Value
(08/31/23)
 
 
 
    

Expenses
Paid During
the Period
 
 
(a) 
       

Beginning
Account Value
(03/01/23)
 
 
 
    

Ending
Account Value
(08/31/23)
 
 
 
    

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
          $  1,000.00        $  1,051.60        $  2.59           $  1,000.00        $  1,022.70        $  2.55          0.50

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D S U M M A R Y

  11


Fund Summary as of August 31, 2023 (continued)    iShares® MSCI Spain ETF

 

Portfolio Management Commentary

Stocks in Spain advanced strongly during the reporting period as external demand from tourism and lower energy prices buoyed the economy and largely outweighed inflation and rising interest rates. A combination of new and ongoing government support, including tax cuts on gas, electricity, and essential food products, helped to counteract the high cost of living. The euro, which appreciated relative to the U.S. dollar, also increased the value of Spanish stocks in U.S. dollar terms.

The Spanish financials industry was the largest contributor to the Index’s return. Spanish banks advanced along with central bank interest rates as higher margins for lenders boosted earnings growth. Spain’s housing market outpaced the Eurozone average despite the rise in interest rates, contributing to steady demand for mortgage loans. Net profits at Spanish diversified banks rose substantially from a year earlier, as higher lending income in Spain and other European countries offset decreased profits in Brazil, the U.S., and the U.K. Spain’s second-largest bank raised its cash dividend to the highest level in over a decade and announced a new stock buyback program. Spanish lenders also performed well in the recent Eurozone liquidity stress tests, reassuring global investors of their resiliency in times of credit crisis.

Stocks in the industrials sector also contributed to the Index’s return. Within the construction and engineering industry, a Spain-based multinational company increased construction sales and expanded into next generation infrastructure projects, including energy storage and electric vehicle battery manufacturing plants. Meanwhile, a surge in international toll road traffic and airport passenger flows benefited companies with transportation divisions.

Portfolio Information

 

SECTOR ALLOCATION

 

 

   
Sector    
Percent of
Total Investments

(a) 

Financials

    32.0

Utilities

    30.6  

Industrials

    12.1  

Communication Services

    9.4  

Consumer Discretionary

    9.2  

Energy

    4.5  

Health Care

    2.2  

TEN LARGEST HOLDINGS

 

 

   
Security    
Percent of
Total Investments
 
(a) 

Iberdrola SA

    18.1

Banco Santander SA

    15.8  

Banco Bilbao Vizcaya Argentaria SA

    11.7  

Telefonica SA

    4.7  

Cellnex Telecom SA

    4.6  

Industria de Diseno Textil SA

    4.6  

Amadeus IT Group SA

    4.6  

Repsol SA

    4.6  

Ferrovial SE

    4.5  

CaixaBank SA

    4.4  
  (a) 

Excludes money market funds.

 

 

12  

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Fund Summary as of August 31, 2023    iShares® MSCI Switzerland ETF

 

Investment Objective

The iShares MSCI Switzerland ETF (the “Fund”) seeks to track the investment results of an index composed of Swiss equities, as represented by the MSCI Switzerland 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    15.92     7.81     6.91        15.92     45.62     95.01

Fund Market

    16.14       7.90       6.92          16.14       46.24       95.16  

Index

    15.91       7.98       7.08                15.91       46.82       98.21  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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

Expense Example

 

      Actual         Hypothetical 5% Return  
 

 

 

     

 

 

      
         

Beginning
Account Value
(03/01/23)
 
 
 
    

Ending
Account Value
(08/31/23)
 
 
 
    

Expenses
Paid During
the Period
 
 
(a) 
       

Beginning
Account Value
(03/01/23)
 
 
 
    

Ending
Account Value
(08/31/23)
 
 
 
    

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
          $  1,000.00        $  1,086.70        $  2.63           $  1,000.00        $  1,022.70        $  2.55          0.50

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D S U M M A R Y

  13


Fund Summary as of August 31, 2023 (continued)    iShares® MSCI Switzerland ETF

 

Portfolio Management Commentary

Stocks in Switzerland advanced during the reporting period as the strong Swiss franc, government price controls, and lower reliance on foreign oil and gas helped moderate inflation. The war in Ukraine slowed demand for investment and goods, but export activity and consumer spending increased over the reporting period, bolstering the country’s economy.

The financials sector contributed the most to the Index’s return as the capital markets industry weathered a banking crisis that led to the acquisition of one of Switzerland’s largest banks by its closest rival. The resulting banking entity reported a strong net profit following the integration despite the restructuring costs. The bank also raised investor confidence when it proactively terminated a protection agreement on offer by the Swiss government and a secondary liquidity agreement with the Swiss National Bank.

The healthcare sector contributed significantly to the Index’s return. A large Swiss pharmaceuticals company outlined plans and provided earnings guidance for a spinoff of its generic drugs unit after losing a U.S. Supreme Court case to block rival companies from selling generic versions of its profitable multiple sclerosis drug. The company also re-initiated a large stock buyback program and raised its earnings outlook based on the success of its pipeline drug trials and reductions in operational costs.

The industrials sector also contributed, led by the electrical equipment industry. Investors were encouraged by strong new customer orders in the first quarter of 2023, which exceeded expectations and strengthened revenue flows. The positive outlook offset investors’ concerns over the impact of higher prices on consumer demand and a slowdown in demand from China.

Portfolio Information

 

SECTOR ALLOCATION

 

 

   
Sector    
Percent of
Total Investments
 
(a) 

Health Care

    32.9

Consumer Staples

    22.1  

Financials

    17.1  

Industrials

    10.0  

Materials

    8.8  

Consumer Discretionary

    5.6  

Information Technology

    1.3  

Communication Services

    1.2  

Other (each representing less than 1%)

    1.0  

TEN LARGEST HOLDINGS

 

 

   
Security    
Percent of
Total Investments
 
(a) 

Nestle SA

    19.8

Novartis AG

    12.3  

Roche Holding AG

    12.3  

UBS Group AG

    5.0  

Zurich Insurance Group AG

    4.5  

Cie. Financiere Richemont SA, Class A

    4.3  

ABB Ltd.

    4.0  

Alcon Inc.

    2.8  

Sika AG

    2.8  

Lonza Group AG

    2.8  
  (a) 

Excludes money market funds.

 

 

14  

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About Fund Performance

 

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

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

Disclosure of Expenses

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

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

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

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

 

 

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

  15


Schedule of Investments 

August 31, 2023

  

iShares® MSCI Eurozone ETF

(Percentages shown are based on Net Assets)

 

Security     Shares        Value  

Common Stocks

   
Austria — 0.5%            

Erste Group Bank AG

    518,429     $  18,494,359  

OMV AG

    222,975       10,325,519  

Verbund AG

    103,750       8,490,823  

voestalpine AG(a)

    176,559       5,158,924  
   

 

 

 
      42,469,625  
Belgium — 3.0%            

Ageas SA/NV

    243,184       9,671,495  

Anheuser-Busch InBev SA/NV

    1,312,094       74,477,081  

Argenx SE(b)

    84,526       42,481,443  

D’ieteren Group

    33,147       5,413,701  

Elia Group SA/NV

    44,936       5,180,874  

Groupe Bruxelles Lambert NV

    144,042       11,598,748  

KBC Group NV

    378,438       24,829,350  

Lotus Bakeries NV

    616       4,856,069  

Sofina SA

    23,586       5,299,012  

Solvay SA

    112,314       13,005,687  

UCB SA

    190,982       17,130,521  

Umicore SA

    317,685       8,418,101  

Warehouses De Pauw CVA

    250,296       7,152,598  
   

 

 

 
      229,514,680  
Finland — 2.6%            

Elisa OYJ

    215,984       10,602,882  

Fortum OYJ

    678,352       9,106,554  

Kesko OYJ, Class B

    412,799       8,057,960  

Kone OYJ, Class B

    512,233       23,301,075  

Metso OYJ

    1,009,366       11,593,105  

Neste OYJ

    639,300       23,387,551  

Nokia OYJ

    8,085,555       32,334,680  

Orion OYJ, Class B

    163,579       6,685,547  

Sampo OYJ, Class A

    696,188       30,558,514  

Stora Enso OYJ, Class R

    879,468       11,184,693  

UPM-Kymmene OYJ

    806,660       27,605,948  

Wartsila OYJ Abp

    720,980       9,149,882  
   

 

 

 
      203,568,391  
France — 35.8%            

Accor SA

    281,775       10,077,201  

Aeroports de Paris

    44,920       5,911,817  

Air Liquide SA

    791,163       142,944,305  

Airbus SE

    895,472       131,013,832  

Alstom SA

    432,619       11,930,082  

Amundi SA(c)

    93,650       5,574,470  

ArcelorMittal SA

    772,947       20,533,022  

Arkema SA

    90,688       9,476,811  

AXA SA

    2,772,239       83,291,616  

BioMerieux

    63,345       6,542,255  

BNP Paribas SA

    1,584,882       102,490,585  

Bollore SE

    1,114,502       6,592,636  

Bouygues SA

    288,021       9,945,348  

Bureau Veritas SA

    446,597       11,963,494  

Capgemini SE

    248,395       46,355,801  

Carrefour SA

    902,572       17,251,511  

Cie. de Saint-Gobain

    698,736       45,454,267  

Cie. Generale des Etablissements Michelin SCA

    1,024,800       32,061,862  

Covivio

    76,290       3,719,817  

Credit Agricole SA

    1,820,857       22,952,409  

Danone SA

    972,644       56,698,124  

Dassault Aviation SA

    31,164       6,119,363  

Dassault Systemes SE

    1,012,067       40,108,728  
Security     Shares        Value  
France (continued)            

Edenred

    377,025     $ 24,025,279  

Eiffage SA

    111,173       10,987,568  

Engie SA

    2,759,034       44,432,151  

EssilorLuxottica SA

    445,379       83,712,031  

Eurazeo SE

    66,811       3,936,639  

Eurofins Scientific SE

    204,554       12,590,837  

Euronext NV(c)

    130,369       9,411,424  

Gecina SA

    69,495       7,434,277  

Getlink SE

    541,588       9,064,768  

Hermes International

    47,842       98,395,952  

Ipsen SA

    57,268       7,418,744  

Kering SA

    112,238       60,017,041  

Klepierre SA

    328,674       8,681,463  

La Francaise des Jeux SAEM(c)

    159,391       5,763,517  

Legrand SA

    403,052       39,708,439  

L’Oreal SA

    364,329       160,024,998  

LVMH Moet Hennessy Louis Vuitton SE

    417,114       352,735,524  

Orange SA

    2,806,556       31,508,249  

Pernod Ricard SA

    308,923       60,627,265  

Publicis Groupe SA

    345,744       26,977,702  

Remy Cointreau SA

    34,907       5,399,866  

Renault SA

    290,678       11,728,640  

Safran SA

    516,332       82,750,035  

Sanofi

    1,716,251       182,787,490  

Sartorius Stedim Biotech

    41,838       11,865,723  

Schneider Electric SE

    822,053       140,906,694  

SEB SA

    38,531       4,229,375  

Societe Generale SA

    1,098,784       31,129,828  

Sodexo SA

    132,692       14,235,247  

Teleperformance

    89,547       12,372,852  

Thales SA

    158,961       23,181,193  

TotalEnergies SE

    3,396,463       213,056,364  

Unibail-Rodamco-Westfield, New(b)

    180,229       9,619,675  

Valeo

    315,137       6,125,723  

Veolia Environnement SA

    1,027,163       32,044,339  

Vinci SA

    802,831       89,425,787  

Vivendi SE

    1,022,897       9,316,403  

Wendel SE

    40,419       3,693,155  

Worldline SA/France(b)(c)

    364,289       11,856,219  
   

 

 

 
      2,782,187,832  
Germany — 23.5%            

adidas AG

    244,715       48,837,767  

Allianz SE, Registered

    609,241       148,093,804  

BASF SE

    1,350,247       68,345,963  

Bayer AG, Registered

    1,484,038       81,195,490  

Bayerische Motoren Werke AG

    454,683       47,823,151  

Bechtle AG

    125,658       6,108,977  

Beiersdorf AG

    151,929       19,892,852  

Brenntag SE

    221,717       17,933,388  

Carl Zeiss Meditec AG, Bearer

    61,846       6,134,196  

Commerzbank AG

    1,604,489       17,629,274  

Continental AG

    166,299       12,335,763  

Covestro AG(b)(c)

    291,190       15,463,445  

Daimler Truck Holding AG

    743,235       26,151,924  

Delivery Hero SE(b)(c)

    265,543       9,686,372  

Deutsche Bank AG, Registered

    2,923,349       31,802,434  

Deutsche Boerse AG

    287,012       50,951,490  

Deutsche Lufthansa AG, Registered(b)

    908,354       8,111,912  

Deutsche Post AG, Registered

    1,497,367       69,826,784  

Deutsche Telekom AG, Registered

    4,896,115       104,794,108  

 

16  

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Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Eurozone ETF

(Percentages shown are based on Net Assets)

 

Security     Shares        Value  
Germany (continued)            

E.ON SE

    3,391,453     $ 41,747,645  

Evonik Industries AG

    319,691       6,125,326  

Fresenius Medical Care AG & Co. KGaA

    310,196       14,935,142  

Fresenius SE & Co. KGaA

    636,728       20,412,991  

GEA Group AG

    231,752       9,138,754  

Hannover Rueck SE

    90,903       19,333,109  

Heidelberg Materials AG

    218,762       17,589,912  

HelloFresh SE(b)

    234,388       7,553,882  

Henkel AG & Co. KGaA

    157,316       10,871,828  

Infineon Technologies AG

    1,972,709       70,496,097  

Knorr-Bremse AG

    110,991       7,580,743  

LEG Immobilien SE(b)

    112,969       8,135,629  

Mercedes-Benz Group AG

    1,212,063       88,692,449  

Merck KGaA

    194,899       34,989,279  

MTU Aero Engines AG

    81,307       18,978,714  

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered

    206,147       80,017,850  

Nemetschek SE

    88,206       6,092,003  

Puma SE

    159,650       10,699,514  

Rational AG

    7,794       5,937,072  

Rheinmetall AG

    65,832       17,881,619  

RWE AG

    953,656       39,268,365  

SAP SE

    1,577,399       220,054,172  

Scout24 SE(c)

    113,955       7,849,952  

Siemens AG, Registered

    1,148,047       172,471,980  

Siemens Healthineers AG(c)

    424,595       21,256,178  

Symrise AG, Class A

    200,581       20,909,541  

Talanx AG(b)

    96,677       6,498,943  

Telefonica Deutschland Holding AG

    1,371,670       2,607,760  

Volkswagen AG

    44,522       6,362,428  

Vonovia SE

    1,107,534       26,573,376  

Wacker Chemie AG

    28,078       4,135,628  

Zalando SE(b)(c)

    339,624       10,557,384  
   

 

 

 
      1,826,874,359  
Ireland — 2.5%            

AIB Group PLC

    2,175,722       9,902,890  

Bank of Ireland Group PLC

    1,604,755       15,979,778  

CRH PLC

    1,096,115       63,063,500  

Flutter Entertainment PLC, Class DI(b)

    266,747       48,512,067  

Kerry Group PLC, Class A

    240,980       22,483,465  

Kingspan Group PLC

    234,060       19,776,776  

Smurfit Kappa Group PLC

    392,623       16,470,725  
   

 

 

 
      196,189,201  
Italy — 7.4%            

Amplifon SpA

    189,375       6,149,638  

Assicurazioni Generali SpA

    1,529,082       31,671,855  

DiaSorin SpA

    33,806       3,569,802  

Enel SpA

    12,286,132       82,499,247  

Eni SpA

    3,569,756       55,195,585  

Ferrari NV

    189,795       60,176,806  

FinecoBank Banca Fineco SpA

    920,622       12,582,540  

Infrastrutture Wireless Italiane SpA(c)

    511,640       6,330,203  

Intesa Sanpaolo SpA

    23,475,111       62,687,955  

Mediobanca Banca di Credito Finanziario SpA

    835,994       10,913,539  

Moncler SpA

    310,259       21,021,492  

Nexi SpA(b)(c)

    896,145       6,429,197  

Poste Italiane SpA(c)

    790,066       8,770,469  

Prysmian SpA

    396,703       16,207,887  

Recordati Industria Chimica e Farmaceutica SpA

    158,400       7,940,263  
Security     Shares        Value  
Italy (continued)            

Snam SpA

    3,064,657     $ 15,814,701  

Stellantis NV

    3,342,037       62,039,067  

Telecom Italia SpA/Milano(a)(b)

    15,740,281       4,883,133  

Tenaris SA

    715,908       11,432,932  

Terna - Rete Elettrica Nazionale

    2,136,739       17,620,755  

UniCredit SpA

    2,785,130       67,854,419  
   

 

 

 
      571,791,485  
Netherlands — 13.3%            

ABN AMRO Bank NV, CVA(c)

    614,082       9,033,086  

Adyen NV(b)(c)

    32,759       27,354,464  

Aegon NV

    2,550,708       13,072,361  

AerCap Holdings NV(b)

    233,234       14,348,556  

Akzo Nobel NV

    256,928       20,858,312  

ASM International NV

    70,794       34,078,058  

ASML Holding NV

    608,975       400,418,172  

ASR Nederland NV

    241,459       10,569,924  

BE Semiconductor Industries NV

    116,450       13,397,525  

Davide Campari-Milano NV

    794,238       10,376,738  

EXOR NV

    163,281       14,449,876  

Ferrovial SE

    769,750       24,414,356  

Heineken Holding NV

    195,793       15,667,943  

Heineken NV

    435,051       42,291,497  

IMCD NV

    86,186       11,870,587  

ING Groep NV

    5,467,591       77,470,352  

JDE Peet’s NV

    191,707       5,338,296  

Koninklijke Ahold Delhaize NV

    1,470,612       48,103,724  

Koninklijke KPN NV

    4,919,645       17,215,778  

Koninklijke Philips NV(a)(b)

    1,400,466       31,470,685  

NN Group NV

    378,670       14,577,090  

OCI NV

    162,602       4,112,411  

Prosus NV

    1,059,430       73,073,539  

QIAGEN NV(b)

    344,467       15,717,157  

Randstad NV

    167,359       9,821,475  

Universal Music Group NV

    1,237,683       30,686,101  

Wolters Kluwer NV

    389,001       46,870,851  
   

 

 

 
      1,036,658,914  
Portugal — 0.6%            

EDP - Energias de Portugal SA

    4,740,250       21,597,066  

Galp Energia SGPS SA

    747,702       10,319,912  

Jeronimo Martins SGPS SA

    429,591       10,951,122  
   

 

 

 
      42,868,100  
Spain — 7.5%            

Acciona SA

    37,839       5,407,896  

ACS Actividades de Construccion y Servicios SA

    330,901       11,616,445  

Aena SME SA(c)

    113,481       17,838,876  

Amadeus IT Group SA

    680,888       46,718,070  

Banco Bilbao Vizcaya Argentaria SA

    9,011,372       71,098,730  

Banco Santander SA

    24,447,577       95,433,751  

CaixaBank SA

    6,234,401       25,250,821  

Cellnex Telecom SA(c)

    854,908       32,696,349  

Corp. ACCIONA Energias Renovables SA

    108,187       3,214,906  

EDP Renovaveis SA

    464,043       8,486,935  

Enagas SA

    213,004       3,634,922  

Endesa SA

    488,237       10,139,675  

Grifols SA(b)

    450,982       6,178,385  

Iberdrola SA

    9,196,787       109,099,030  

Industria de Diseno Textil SA

    1,648,793       63,167,481  

Naturgy Energy Group SA

    196,981       5,705,355  

Redeia Corp. SA

    392,304       6,370,740  

 

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

  17


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Eurozone ETF

(Percentages shown are based on Net Assets)

 

Security     Shares       Value  
Spain (continued)            

Repsol SA

    1,929,619     $ 29,824,385  

Telefonica SA

    7,840,392       32,487,997  
   

 

 

 
      584,370,749  
Switzerland — 1.1%            

DSM-Firmenich AG

    280,929       25,986,201  

Siemens Energy AG(b)

    785,125       11,173,793  

STMicroelectronics NV

    1,032,977       48,751,050  
   

 

 

 
      85,911,044  
United Kingdom — 0.5%            

CNH Industrial NV

    1,547,470       21,336,263  

Coca-Cola Europacific Partners PLC

    312,993       20,065,981  
   

 

 

 
      41,402,244  
   

 

 

 

Total Common Stocks — 98.3%
(Cost: $8,115,563,904)

 

    7,643,806,624  
   

 

 

 
Preferred Stocks            
Germany — 1.5%            

Bayerische Motoren Werke AG, Preference Shares, NVS

    90,118       8,658,678  

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

    171,582       18,923,744  

Henkel AG & Co. KGaA, Preference Shares, NVS

    255,064       19,545,764  

Porsche Automobil Holding SE, Preference Shares, NVS

    231,328       12,407,748  

Sartorius AG, Preference Shares, NVS(a)

    39,647       16,212,695  

Volkswagen AG, Preference Shares, NVS

    310,654       38,018,588  
   

 

 

 
      113,767,217  
   

 

 

 

Total Preferred Stocks — 1.5%
(Cost: $159,610,095)

 

    113,767,217  
   

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $8,275,173,999)

 

    7,757,573,841  
   

 

 

 
Security     Shares       Value  

Short-Term Securities

   
Money Market Funds — 1.0%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.52%(d)(e)(f)

    52,649,971     $ 52,665,766  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(d)(e)

    24,280,000       24,280,000  
   

 

 

 

Total Short-Term Securities — 1.0%
(Cost: $76,945,151)

 

    76,945,766  
   

 

 

 

Total Investments — 100.8%
(Cost: $8,352,119,150)

 

    7,834,519,607  

Liabilities in Excess of Other Assets — (0.8)%

 

    (59,482,438
   

 

 

 

Net Assets — 100.0%

    $  7,775,037,169  
   

 

 

 

 

(a) 

All or a portion of this security is on loan.

(b) 

Non-income producing security.

(c)

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 

Affiliates

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

 

                   
  Affiliated Issuer   Value at
08/31/22
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
   

Change in
Unrealized
Appreciation
(Depreciation)

    Value at
08/31/23
    Shares
Held at
08/31/23
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

        
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 13,209,554     $ 39,424,381 (a)    $   —     $ 36,421       $   (4,590)     $ 52,665,766       52,649,971     $ 221,391 (b)    $   —     
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    24,890,000             (610,000 )(a)                        24,280,000       24,280,000       1,148,827       24     
         

 

 

     

 

 

   

 

 

     

 

 

   

 

 

    
          $   36,421       $ (4,590   $ 76,945,766       $ 1,370,218     $ 24     
         

 

 

     

 

 

   

 

 

     

 

 

   

 

 

    

 

  (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.

 

 

 

18  

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


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Eurozone 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

           

Euro STOXX 50 Index

     324        09/15/23      $ 15,121      $ (200,043
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Liabilities — Derivative Financial Instruments

                                

Futures contracts

                                

Unrealized depreciation on futures contracts(a)

   $        $        $ 200,043        $        $        $        $ 200,043  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

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

 

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

Net Realized Gain (Loss) from

                                

Futures contracts

   $        $        $ 3,607,253        $        $        $        $ 3,607,253  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                                

Futures contracts

   $        $        $ (142,799      $        $        $        $ (142,799
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 20,653,593   

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 69,023,258        $ 7,574,783,366        $        $ 7,643,806,624  

Preferred Stocks

              113,767,217                   113,767,217  

Short-Term Securities

                 

Money Market Funds

     76,945,766                            76,945,766  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 145,969,024        $ 7,688,550,583        $        $ 7,834,519,607  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

 

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

  19


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Eurozone ETF

 

Fair Value Hierarchy as of Period End (continued)

 

      Level 1        Level 2        Level 3        Total  

Derivative Financial Instruments(a)

                 

Liabilities

                 

Equity Contracts

   $        $ (200,043      $        $ (200,043
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

20  

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


Schedule of Investments

August 31, 2023

  

iShares® MSCI Germany ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 1.9%  

MTU Aero Engines AG

    63,779     $ 14,887,320  

Rheinmetall AG

    51,615       14,019,926  
   

 

 

 
      28,907,246  
Air Freight & Logistics — 3.5%            

Deutsche Post AG, Registered

    1,174,566       54,773,590  
   

 

 

 
Automobile Components — 0.6%            

Continental AG

    130,347       9,668,908  
   

 

 

 
Automobiles — 7.2%            

Bayerische Motoren Werke AG

    356,663       37,513,495  

Mercedes-Benz Group AG

    950,768       69,572,244  

Volkswagen AG

    34,643       4,950,667  
   

 

 

 
         112,036,406  
Banks — 0.9%            

Commerzbank AG

    1,261,371       13,859,275  
   

 

 

 
Capital Markets — 4.2%            

Deutsche Bank AG, Registered

    2,296,682       24,985,069  

Deutsche Boerse AG

    225,138       39,967,377  
   

 

 

 
      64,952,446  
Chemicals — 5.8%            

BASF SE

    1,059,162       53,612,004  

Covestro AG(a)(b)(c)

    229,121       12,167,313  

Evonik Industries AG

    249,402       4,778,578  

Symrise AG, Class A

    157,340       16,401,888  

Wacker Chemie AG

    21,429       3,156,293  
   

 

 

 
      90,116,076  
Construction Materials — 0.9%            

Heidelberg Materials AG

    171,601       13,797,856  
   

 

 

 
Consumer Staples Distribution & Retail — 0.4%        

HelloFresh SE(b)

    183,859       5,925,428  
   

 

 

 
Diversified Telecommunication Services — 5.4%        

Deutsche Telekom AG, Registered

    3,840,617       82,202,733  

Telefonica Deutschland Holding AG

    1,047,665       1,991,776  
   

 

 

 
      84,194,509  
Electrical Equipment — 0.6%            

Siemens Energy AG(b)

    615,636       8,761,649  
   

 

 

 
Health Care Equipment & Supplies — 1.4%            

Carl Zeiss Meditec AG, Bearer

    47,885       4,749,474  

Siemens Healthineers AG(a)

    334,152       16,728,399  
   

 

 

 
      21,477,873  
Health Care Providers & Services — 1.8%            

Fresenius Medical Care AG & Co. KGaA

    243,374       11,717,834  

Fresenius SE & Co. KGaA

    500,551       16,047,265  
   

 

 

 
      27,765,099  
Hotels, Restaurants & Leisure — 0.5%            

Delivery Hero SE(a)(b)

    207,564       7,571,437  
   

 

 

 
Household Products — 0.5%            

Henkel AG & Co. KGaA

    123,137       8,509,778  
   

 

 

 
Independent Power and Renewable Electricity Producers — 2.0%  

RWE AG

    749,195       30,849,345  
   

 

 

 
Industrial Conglomerates — 8.7%            

Siemens AG, Registered

    900,553       135,290,767  
   

 

 

 
Security   Shares     Value  
Insurance — 12.8%            

Allianz SE, Registered

    477,902     $ 116,168,027  

Hannover Rueck SE

    71,450       15,195,875  

Muenchener Rueckversicherungs-Gesellschaft AG in

   

Muenchen, Registered

    161,706       62,767,668  

Talanx AG(b)

    75,265       5,059,559  
   

 

 

 
      199,191,129  
Interactive Media & Services — 0.4%            

Scout24 SE(a)

    88,960       6,128,136  
   

 

 

 
IT Services — 0.3%            

Bechtle AG

    97,418       4,736,064  
   

 

 

 
Life Sciences Tools & Services — 0.8%            

QIAGEN NV(b)

    270,207       12,328,862  
   

 

 

 
Machinery — 2.5%            

Daimler Truck Holding AG(c)

    585,088       20,587,267  

GEA Group AG

    181,791       7,168,625  

Knorr-Bremse AG

    86,075       5,878,967  

Rational AG

    6,008       4,576,588  
   

 

 

 
      38,211,447  
Multi-Utilities — 2.1%            

E.ON SE

    2,660,328       32,747,742  
   

 

 

 
Passenger Airlines — 0.4%            

Deutsche Lufthansa AG, Registered(b)

    708,541       6,327,514  
   

 

 

 
Personal Care Products — 1.0%            

Beiersdorf AG

    119,442       15,639,160  
   

 

 

 
Pharmaceuticals — 5.9%            

Bayer AG, Registered

    1,164,111       63,691,470  

Merck KGaA

    153,144       27,493,205  
   

 

 

 
      91,184,675  
Real Estate Management & Development — 1.7%  

LEG Immobilien SE(b)

    87,920       6,331,688  

Vonovia SE

    868,773       20,844,716  
   

 

 

 
      27,176,404  
Semiconductors & Semiconductor Equipment — 3.5%  

Infineon Technologies AG

    1,547,435       55,298,642  
   

 

 

 
Software — 11.4%            

Nemetschek SE

    68,711       4,745,569  

SAP SE

    1,237,346          172,615,267  
   

 

 

 
      177,360,836  
Specialty Retail — 0.5%            

Zalando SE(a)(b)

    265,525       8,253,979  
   

 

 

 
Textiles, Apparel & Luxury Goods — 3.0%            

adidas AG

    191,960       38,309,452  

Puma SE

    125,102       8,384,156  
   

 

 

 
      46,693,608  
Trading Companies & Distributors — 0.9%            

Brenntag SE

    173,919       14,067,288  
   

 

 

 

Total Common Stocks — 93.5%
(Cost: $1,906,084,533)

      1,453,803,174  
   

 

 

 

 

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

  21


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Germany ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Preferred Stocks

   
Automobiles — 3.9%            

Bayerische Motoren Werke AG, Preference Shares, NVS

    68,492     $ 6,580,818  

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

    134,935       14,881,954  

Porsche Automobil Holding SE, Preference Shares, NVS

    181,444       9,732,118  

Volkswagen AG, Preference Shares, NVS

    244,341       29,903,043  
   

 

 

 
      61,097,933  
Household Products — 1.0%            

Henkel AG & Co. KGaA, Preference Shares, NVS

    200,556       15,368,771  
   

 

 

 
Life Sciences Tools & Services — 0.8%            

Sartorius AG, Preference Shares, NVS

    30,948       12,655,447  
   

 

 

 

Total Preferred Stocks — 5.7%
(Cost: $129,633,669)

 

    89,122,151  
   

 

 

 

Total Long-Term Investments — 99.2%
(Cost: $2,035,718,202)

 

    1,542,925,325  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 2.2%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.52%(d)(e)(f)

    33,263,056       33,273,035  
Security   Shares     Value  
Money Market Funds (continued)            

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(d)(e)

    680,000     $ 680,000  
   

 

 

 

Total Short-Term Securities — 2.2%
(Cost: $33,950,386)

 

    33,953,035  
   

 

 

 

Total Investments — 101.4%
(Cost: $2,069,668,588)

 

    1,576,878,360  

Liabilities in Excess of Other Assets — (1.4)%

 

    (21,039,081
   

 

 

 

Net Assets — 100.0%

    $  1,555,839,279  
   

 

 

 

 

(a) 

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.

(b) 

Non-income producing security.

(c) 

All or a portion of this security is on loan.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 

Affiliates

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

 

                   
  Affiliated Issuer   Value at
08/31/22
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
   

Change in
Unrealized
Appreciation
(Depreciation)

    Value at
08/31/23
    Shares
Held at
08/31/23
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

        
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 8,462,684     $ 24,809,365 (a)    $   —     $ 1,168       $ (182   $ 33,273,035       33,263,056     $ 68,543 (b)    $   —     
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    920,000             (240,000 )(a)                    680,000       680,000       55,264           
         

 

 

     

 

 

   

 

 

     

 

 

   

 

 

    
          $ 1,168       $ (182   $ 33,953,035       $ 123,807     $     
         

 

 

     

 

 

   

 

 

     

 

 

   

 

 

    

 

  (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

           

DAX Index

     29        09/15/23      $ 12,559      $ (86,327
           

 

 

 

 

 

22  

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


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Germany ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 86,327      $      $      $      $ 86,327  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

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

 

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

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ 2,840,301      $      $      $      $ 2,840,301  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 525,140      $      $      $      $ 525,140  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 14,819,290  

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
    Level 1           Level 2           Level 3           Total  

 

 

Assets

             

Investments

             

Long-Term Investments

             

Common Stocks

  $       $ 1,453,803,174       $      —       $ 1,453,803,174  

Preferred Stocks

            89,122,151                 89,122,151  

Short-Term Securities

             

Money Market Funds

    33,953,035                         33,953,035  
 

 

 

     

 

 

     

 

 

     

 

 

 
  $ 33,953,035       $ 1,542,925,325       $       $ 1,576,878,360  
 

 

 

     

 

 

     

 

 

     

 

 

 

Derivative Financial Instruments(a)

             

Liabilities

             

Equity Contracts

  $       $ (86,327     $       $ (86,327
 

 

 

     

 

 

     

 

 

     

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  23


Schedule of Investments

August 31, 2023

  

iShares® MSCI Italy ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Automobiles — 16.1%            

Ferrari NV

    86,197     $ 27,329,804  

Stellantis NV

    1,521,426       28,242,610  
   

 

 

 
      55,572,414  
Banks — 23.4%            

FinecoBank Banca Fineco SpA

    772,568       10,559,022  

Intesa Sanpaolo SpA

    10,765,016       28,746,908  

Mediobanca Banca di Credito Finanziario SpA

    793,451       10,358,158  

UniCredit SpA

    1,281,463       31,220,420  
   

 

 

 
      80,884,508  
Beverages — 2.7%            

Davide Campari-Milano NV

    726,040       9,485,729  
   

 

 

 
Diversified Telecommunication Services — 3.8%            

Infrastrutture Wireless Italiane SpA(a)

    570,324       7,056,264  

Telecom Italia SpA/Milano(b)(c)

    19,711,039       6,114,987  
   

 

 

 
      13,171,251  
Electric Utilities — 15.4%            

Enel SpA

    5,931,977       39,832,197  

Terna - Rete Elettrica Nazionale

    1,643,516       13,553,360  
   

 

 

 
      53,385,557  
Electrical Equipment — 3.7%            

Prysmian SpA

    316,425       12,928,011  
   

 

 

 
Energy Equipment & Services — 2.9%            

Tenaris SA

    618,414       9,875,969  
   

 

 

 
Financial Services — 2.0%            

Nexi SpA(a)(b)

    983,173       7,053,561  
   

 

 

 
Gas Utilities — 3.6%            

Snam SpA

    2,423,833       12,507,825  
   

 

 

 
Health Care Equipment & Supplies — 1.6%            

DiaSorin SpA

    53,877       5,689,234  
   

 

 

 
Health Care Providers & Services — 2.0%            

Amplifon SpA

    212,752       6,908,767  
   

 

 

 
Insurance — 7.0%            

Assicurazioni Generali SpA

    756,453       15,668,401  
Security   Shares     Value  
Insurance (continued)            

Poste Italiane SpA(a)

    759,842     $ 8,434,954  
   

 

 

 
      24,103,355  
Machinery — 4.6%            

CNH Industrial NV

    1,143,112       15,761,041  
   

 

 

 
Oil, Gas & Consumable Fuels — 4.4%            

Eni SpA

    989,456       15,298,974  
   

 

 

 
Pharmaceuticals — 2.3%            

Recordati Industria Chimica e Farmaceutica SpA

    160,458       8,043,426  
   

 

 

 
Textiles, Apparel & Luxury Goods — 4.3%            

Moncler SpA

    220,035       14,908,396  
   

 

 

 
Total Long-Term Investments — 99.8% (Cost:
$358,517,197)
        345,578,018  
   

 

 

 
Short-Term Securities            
Money Market Funds — 0.5%            

BlackRock Cash Funds: Institutional, SL Agency
Shares, 5.52%(d)(e)(f)

    1,720,216       1,720,732  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(d)(e)

    140,000       140,000  
   

 

 

 

Total Short-Term Securities — 0.5%
(Cost: $1,860,687)

 

    1,860,732  
   

 

 

 

Total Investments — 100.3%
(Cost: $360,377,884)

 

    347,438,750  

Liabilities in Excess of Other Assets — (0.3)%

      (1,030,035
   

 

 

 

Net Assets — 100.0%

    $  346,408,715  
   

 

 

 

 

(a) 

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.

(b) 

Non-income producing security.

(c) 

All or a portion of this security is on loan. (d) Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 

24  

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


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Italy ETF

 

Affiliates

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

 

 

 
Affiliated Issuer    Value at
08/31/22
     Purchases
at Cost
     Proceeds
from Sale
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
08/31/23
     Shares
Held at
08/31/23
     Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 372,069      $ 1,348,221 (a)     $      $ 539      $ (97    $ 1,720,732        1,720,216      $ 2,383 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     40,000        100,000 (a)                            140,000        140,000        11,374         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ 539      $ (97    $ 1,860,732         $ 13,757      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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

           

FTSE/MIB Index

     5        09/15/23      $ 781      $ (6,829
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

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

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 6,829      $      $      $      $ 6,829  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

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

 

 

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

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ (53,910    $      $      $      $ (53,910
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (13,311    $      $      $      $ (13,311
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 2,298,493   

 

 

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

 

 

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

  25


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Italy ETF

 

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $        $ 345,578,018        $        $ 345,578,018  

Short-Term Securities

                 

Money Market Funds

     1,860,732                            1,860,732  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $   1,860,732        $ 345,578,018        $        $ 347,438,750  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Liabilities

                 

Equity Contracts

   $        $ (6,829      $      —        $ (6,829
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

26  

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


Schedule of Investments

August 31, 2023

  

iShares® MSCI Spain ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Banks — 31.3%            

Banco Bilbao Vizcaya Argentaria SA

    10,381,463     $ 81,908,597  

Banco Santander SA

    28,308,453       110,505,097  

CaixaBank SA

    7,596,878       30,769,180  
   

 

 

 
      223,182,874  
Biotechnology — 2.1%            

Grifols SA(a)

    1,109,322       15,197,542  
   

 

 

 
Construction & Engineering — 7.7%            

ACS Actividades de Construccion y Servicios SA

    658,375       23,112,584  

Ferrovial SE

    998,119       31,657,594  
   

 

 

 
      54,770,178  
Diversified Telecommunication Services — 9.2%  

Cellnex Telecom SA(b)

    845,499       32,336,498  

Telefonica SA

    7,960,373       32,985,158  
   

 

 

 
      65,321,656  
Electric Utilities — 24.8%            

Acciona SA

    106,642       15,241,123  

Endesa SA

    981,785       20,389,648  

Iberdrola SA

    10,663,201       126,494,708  

Redeia Corp. SA

    889,960       14,452,321  
   

 

 

 
      176,577,800  
Gas Utilities — 3.5%            

Enagas SA

    547,161       9,337,324  

Naturgy Energy Group SA

    528,239       15,299,907  
   

 

 

 
      24,637,231  
Hotels, Restaurants & Leisure — 4.5%            

Amadeus IT Group SA

    467,264       32,060,592  
   

 

 

 
Independent Power and Renewable Electricity Producers — 1.8%        

Corp. ACCIONA Energias Renovables SA

    425,379       12,640,645  
   

 

 

 
Security   Shares     Value  
Oil, Gas & Consumable Fuels — 4.4%            

Repsol SA

    2,053,144     $ 31,733,600  
   

 

 

 
Specialty Retail — 4.5%            

Industria de Diseno Textil SA

    843,281       32,307,231  
   

 

 

 
Transportation Infrastructure — 4.2%            

Aena SME SA(b)

    189,164       29,736,018  
   

 

 

 
Total Long-Term Investments — 98.0%
 (Cost: $766,551,409)
        698,165,367  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.5%            

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(d)

    3,440,000       3,440,000  
   

 

 

 

Total Short-Term Securities — 0.5%
(Cost: $3,440,000)

 

    3,440,000  
   

 

 

 

Total Investments — 98.5%
(Cost: $769,991,409)

 

    701,605,367  

Other Assets Less Liabilities — 1.5%

      10,437,776  
   

 

 

 

Net Assets — 100.0%

    $  712,043,143  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

 

Affiliates

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

 

                   
  Affiliated Issuer   Value at
08/31/22
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
08/31/23
    Shares
Held at
08/31/23
    Income     Capital
Gain
Distributions
from
Underlying
Funds
        
 

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

  $ 786,458     $     $ (786,605 )(b)    $ 323     $    (176   $           $ 867 (c)    $   —     
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    2,900,000       540,000 (b)                        3,440,000       3,440,000       138,941       3     
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

    
          $ 323     $ (176   $ 3,440,000       $ 139,808     $ 3     
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

    

 

  (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.

 

 

 

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

  27


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Spain 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

           

IBEX 35 Index

     13        09/15/23      $ 1,344      $ 21,727  
           

 

 

 

OTC Total Return Swaps

 

               
Reference Entity   Payment
Frequency
  Counterparty(a)     Termination
Date
    Net
Notional
    Accrued
Unrealized
Appreciation
(Depreciation)
    Net Value of
Reference
Entity
   

Gross

Notional

Amount

Net Asset

Percentage

 

Equity Securities Long

  Monthly     Goldman Sachs Bank USA(b)       08/19/26     $ 3,321,421     $ 26,359 (c)    $ 3,350,697       0.5
  Monthly     HSBC Bank PLC(d)       02/10/28       7,498,309       (42,542 )(e)      7,471,826       1.1  
  Monthly     JPMorgan Chase Bank NA(f)       02/08/24       2,056,557       (11,367 )(g)      2,050,525       0.3  
         

 

 

   

 

 

   
          $ (27,550   $ 12,873,048    
         

 

 

   

 

 

   

 

  (a) 

The Fund receives the total return on a portfolio of long positions underlying the total return swap. The Fund pays the total return on a portfolio of short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions.

 
  (c) 

Amount includes $(2,917) of net dividends and financing fees.

 
  (e) 

Amount includes $(16,059) of net dividends, payable for referenced securities purchased and financing fees.

 
  (g) 

Amount includes $(5,336) of net dividends, payable for referenced securities purchased and financing fees.

 

The following are the specified benchmarks (plus or minus a range) used in determining the variable rate of interest:

  (b)    (d)    (f)

Range:

  45 basis points    45 basis points    40 basis points

Benchmarks:

  EUR - 1D Euro Short Term Rate (ESTR)    EUR - 1D Euro Short Term Rate (ESTR)    EUR - 1D Euro Short Term Rate (ESTR)

 

 

28  

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


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Spain ETF

 

The following table represents the individual long positions and related values of equity securities underlying the total return swap with Goldman Sachs Bank USA as of period end, termination date August 19, 2026.

 

     Shares     Value     % of
Basket
Value
 

Reference Entity — Long

     
Common Stocks                  
Electric Utilities                  

Red Electrica Corp. SA

    101,071     $ 1,643,375       49.0
   

 

 

   
Gas Utilities                  

Enagas SA

    99,485       1,707,322       51.0  
   

 

 

   

Total Reference Entity — Long

      3,350,697    
   

 

 

   

Net Value of Reference Entity — Goldman Sachs Bank USA

 

  $ 3,350,697    
   

 

 

   

The following table represents the individual long positions and related values of equity securities underlying the total return swap with HSBC Bank PLC as of period end, termination date February 10, 2028.

 

     Shares     Value     % of
Basket
Value
 

Reference Entity — Long

     
Common Stocks                  
Electric Utilities                  

Red Electrica Corp. SA

    188,342     $ 3,090,617       41.4
   

 

 

   
     Shares     Value     % of
Basket
Value
 
Gas Utilities                  

Enagas SA

    254,792     $ 4,381,209       58.6  
   

 

 

   

Total Reference Entity — Long

      7,471,826    
   

 

 

   

Net Value of Reference Entity — HSBC Bank PLC

 

  $ 7,471,826    
   

 

 

   

The following table represents the individual long positions and related values of equity securities underlying the total return swap with JPMorgan Chase Bank NA as of period end, termination date February 8, 2024.

 

     Shares     Value     % of
Basket
Value
 

Reference Entity — Long

     
Common Stocks                  
Electric Utilities                  

Red Electrica Corp. SA

    74,652     $ 1,225,009       59.7
   

 

 

   
Gas Utilities                  

Enagas SA

    47,866       825,516       40.3  
   

 

 

   

Total Reference Entity — Long

      2,050,525    
   

 

 

   

Net Value of Reference Entity — JPMorgan Chase Bank NA