LOGO

  OCTOBER 31, 2021

 

  

2021 Annual Report

 

 

iShares Trust

·  iShares iBonds 2021 Term High Yield and Income ETF | IBHA | Cboe BZX

·  iShares iBonds 2022 Term High Yield and Income ETF | IBHB | Cboe BZX

·  iShares iBonds 2023 Term High Yield and Income ETF | IBHC | Cboe BZX

·  iShares iBonds 2024 Term High Yield and Income ETF | IBHD | Cboe BZX

·  iShares iBonds 2025 Term High Yield and Income ETF | IBHE | Cboe BZX

·  iShares iBonds 2026 Term High Yield and Income ETF | IBHF | Cboe BZX

·  iShares iBonds 2027 Term High Yield and Income ETF | IBHG | Cboe BZX


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of October 31, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. The United States began the reporting period as the initial reopening-led economic rebound was beginning to slow. Nonetheless, the economy continued to grow at a solid pace for the reporting period, eventually regaining the output lost from the pandemic. However, a rapid rebound in consumer spending pushed up against supply constraints and led to elevated inflation.

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

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

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

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

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

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of October 31, 2021

 

 
    

 

6-Month 

 

   

 

12-Month 

 

 

 

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

 

 

 

 

 

10.91

 

 

 

 

 

42.91

 

 

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

 

 

 

 

 

1.85

 

 

 

 

 

 

50.80

 

 

 

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

 

 

 

 

 

4.14

 

 

 

 

 

 

34.18

 

 

 

Emerging market equities
(MSCI Emerging Markets Index)

 

 

 

 

 

(4.87

 

 

 

 

 

16.96

 

 

 

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

 

 

 

 

 

0.01

 

 

 

 

 

 

0.06

 

 

 

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

 

 

 

 

 

1.59

 

 

 

 

 

 

(4.77

 

 

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

 

 

 

 

 

1.06

 

 

 

 

 

 

(0.48

 

 

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

 

 

 

 

 

0.33

 

 

 

 

 

 

2.76

 

 

 

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

 

 

 

 

 

2.36

 

 

 

 

 

 

10.53

 

 

 

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

 

 

 

 

2  

H I S   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  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     18  

Shareholder Expenses

     18  

Schedules of Investments

     19  

Financial Statements

  

Statements of Assets and Liabilities

     50  

Statements of Operations

     52  

Statements of Changes in Net Assets

     54  

Financial Highlights

     58  

Notes to Financial Statements

     65  

Report of Independent Registered Public Accounting Firm

     74  

Important Tax Information (Unaudited)

     75  

Board Review and Approval of Investment Advisory Contract

     76  

Supplemental Information

     80  

Trustee and Officer Information

     81  

General Information

     83  

Glossary of Terms Used in this Report

     84  

 

 

 


Market Overview

 

iShares Trust

U.S. Corporate Bond Market Overview

U.S. high-yield corporate bonds advanced notably for the 12 months ended October 31, 2021 (“reporting period”). The Markit iBoxx USD Liquid High Yield Index, a broad measure of U.S. high-yield corporate bond performance, returned 9.09%.

The U.S. economy continued to recover from the effects of the coronavirus pandemic, growing at a brisk pace during the reporting period. Driven by strong consumer spending and significant fiscal and monetary stimulus, U.S. growth outpaced most other developed economies. An ongoing COVID-19 vaccination program helped accelerate the easing of pandemic-related restrictions, and consumers returned to activities that were previously curtailed, such as travel, restaurant dining, and in-person shopping. Spending on goods also remained elevated, leading imports to rise to an all-time high.

However, this robust consumer demand combined with continued pandemic-related disruptions to the global supply chain led to significantly higher inflation. Similarly, in the labor market, the reopening economy and pent-up demand meant that hiring accelerated, and the unemployment rate fell substantially. Nonetheless, total employment remained notably below pre-pandemic levels and job openings reached a record high despite rising wages. Elevated demand drove an increase in industrial production, although rising commodities prices and supply delays constrained growth, particularly late in the reporting period. The emergence of the highly contagious Delta variant, which was responsible for a significant rise in cases beginning late in summer 2021, also weighed on the economy.

The U.S. Federal Reserve Bank (“Fed”) continued to keep short-term interest rates at near-zero levels and maintained a significant bond-buying program for U.S. Treasuries and mortgage-backed securities, although it discontinued its corporate bond purchasing program. The Fed indicated that it would begin slowing its bond buying activities late in 2021 and signaled that an interest rate increase could be possible in 2022. However, the improving employment environment and a sharp rise in inflation led investors to anticipate a more accelerated tightening of monetary policy. Trading activity showed that investors view multiple interest rate increases as probable in 2022.

Both Fed action and the economic rebound helped high-yield bond returns. High-yield bond prices benefited from the improving economy and from investors’ reassessment of creditworthiness in light of changing economic conditions. At the beginning of the pandemic, when uncertainty was high, investors were concerned about the potential for widespread insolvency. These concerns continued to abate during the reporting period, however, as growth continued, and the Fed’s support led to high investor confidence. Yield spreads (the difference between yields on high-yield corporate bonds and U.S. Treasuries) narrowed significantly as demand for high-yield bonds grew amid investors’ search for yield. Issuance of high-yield bonds was elevated, as companies took advantage of investor demand and lower borrowing costs to shore up their balance sheets.

From a sector perspective, high-yield bonds issued by consumer energy companies posted strong returns, helped by rising prices for energy commodities. The prices of oil, natural gas, and coal all increased substantially during the reporting period as the global economic rebound led to higher demand for energy. At the beginning of the pandemic, oil prices declined rapidly, and investment in new projects decreased significantly. As oil prices rose during the reporting period, energy companies issued debt, primarily to refinance at lower borrowing costs.

Bonds issued by consumer cyclical companies also advanced, as automobile company debt gained despite production cuts due to a semiconductor shortage. Gaming company bonds gained amid a return to in-person activities and travel as vaccination rates improved.

 

 

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Fund Summary as of October 31, 2021    iShares® iBonds® 2021 Term High Yield and Income ETF

 

Investment Objective

The iShares iBonds 2021 Term High Yield and Income ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield and other income generating corporate bonds maturing in 2021, as represented by the Bloomberg 2021 Term High Yield and Income Index (the “Index”)(formerly the Bloomberg Barclays 2021 Term High Yield and Income 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     

Since   

Inception   

         1 Year     

Since   

Inception   

 

Fund NAV

    1.94      1.76%         1.94      4.44%  

Fund Market

    1.93        1.83            1.93        4.61     

Index

    2.22        1.88              2.22        4.74     

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was 5/7/19. The first day of secondary market trading was 5/9/19.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 18 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,005.20          $        1.62               $      1,000.00          $      1,023.60          $        1.63          0.32

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 18 for more information.

 

 

 

U N D   S U M M A R Y

  5


Fund Summary as of October 31, 2021  (continued)    iShares® iBonds® 2021 Term High Yield and Income ETF

 

Portfolio Information

 

ALLOCATION BY CREDIT QUALITY

 

Moody’s Credit Ratings*    
Percent of
Net Assets
 
 

A

    0.4

Baa

    9.0  

Ba

    5.3  

B

    4.0  

Not Rated

    1.0  

Short-Term and Other Assets

    80.3  

FIVE LARGEST HOLDINGS

 

Security(a)    
Percent of
Net Assets
 
 

CSC Holdings LLC, 6.75%, 11/15/21

    4.0

Qwest Corp., 6.75%, 12/01/21

    3.7  

General Motors Financial Co. Inc., 4.20%, 11/06/21

    2.0  

Sprint Communications Inc., 11.50%, 11/15/21

    1.6  

AbbVie Inc., 2.15%, 11/19/21

    1.5  
  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of October 31, 2021    iShares® iBonds® 2022 Term High Yield and Income ETF

 

Investment Objective

The iShares iBonds 2022 Term High Yield and Income ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield and other income generating corporate bonds maturing in 2022, as represented by the Bloomberg 2022 Term High Yield and Income Index (the “Index”) (formerly the Bloomberg Barclays 2022 Term High Yield and Income 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      Since   
Inception   
           1 Year      Since   
Inception   
 

Fund NAV

    5.22      3.17%         5.22      8.08%  

Fund Market

    5.03        3.27            5.03        8.33     

Index

    5.68        3.82                  5.68        9.74     

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was 5/7/19. The first day of secondary market trading was 5/9/19.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 18 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,009.30          $        1.77               $      1,000.00          $      1,023.40          $        1.79          0.35

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 18 for more information.

 

 

 

U N D   S U M M A R Y

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Fund Summary as of October 31, 2021  (continued)    iShares® iBonds® 2022 Term High Yield and Income ETF

 

Portfolio Information

 

ALLOCATION BY CREDIT QUALITY

 

Moody’s Credit Ratings*    
Percent of
Net Assets
 
 

A

    2.5

Baa

    44.2  

Ba

    36.8  

B

    7.6  

Caa

    2.4  

Not Rated

    3.9  

Short-Term and Other Assets

    2.6  

FIVE LARGEST HOLDINGS

 

Security(a)    
Percent of
Net Assets
 
 

CIT Group Inc., 5.00%, 08/15/22

    2.0

Sprint Communications Inc., 6.00%, 11/15/22

    2.0  

Navient Corp., 6.50%, 06/15/22

    1.9  

DISH DBS Corp., 5.88%, 07/15/22

    1.8  

Lumen Technologies Inc., Series T, 5.80%, 03/15/22

    1.8  
  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of October 31, 2021    iShares® iBonds® 2023 Term High Yield and Income ETF

 

Investment Objective

The iShares iBonds 2023 Term High Yield and Income ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield and other income generating corporate bonds maturing in 2023, as represented by the Bloomberg 2023 Term High Yield and Income Index (the “Index”) (formerly the Bloomberg Barclays 2023 Term High Yield and Income 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     

Since   

Inception   

           1 Year     

Since   

Inception   

 

Fund NAV

    9.12      4.55%         9.12      11.70%  

Fund Market

    8.65        4.57            8.65        11.77     

Index

    9.84        5.75                  9.84        14.88     

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was 5/7/19. The first day of secondary market trading was 5/9/19.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 18 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,019.40          $        1.78               $      1,000.00          $      1,023.40          $        1.79          0.35

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 18 for more information.

 

 

 

U N D   S U M M A R Y

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Fund Summary as of October 31, 2021  (continued)    iShares® iBonds® 2023 Term High Yield and Income ETF

 

Portfolio Information

 

ALLOCATION BY CREDIT QUALITY

 

Moody’s Credit Ratings*    
Percent of
Net Assets
 
 

A

    0.5

Baa

    17.2  

Ba

    46.0  

B

    17.0  

Caa

    13.3  

Not Rated

    2.8  

Short-Term and Other Assets

    3.2  

FIVE LARGEST HOLDINGS

 

Security(a)    
Percent of
Net Assets
 
 

Sprint Corp., 7.88%, 09/15/23

    2.9

Tenet Healthcare Corp., 6.75%, 06/15/23

    2.7  

Ligado Networks LLC, 15.50%, 11/01/23

    2.4  

DISH DBS Corp., 5.00%, 03/15/23

    2.3  

HCA Inc., 5.88%, 05/01/23

    2.0  
  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of October 31, 2021    iShares® iBonds® 2024 Term High Yield and Income ETF

 

Investment Objective

The iShares iBonds 2024 Term High Yield and Income ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield and other income generating corporate bonds maturing in 2024, as represented by the Bloomberg 2024 Term High Yield and Income Index (the “Index”)(formerly the Bloomberg Barclays 2024 Term High Yield and Income 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     

Since   

Inception   

           1 Year     

Since   

Inception   

 

Fund NAV

    10.42      4.61%         10.42      11.87%  

Fund Market

    10.16        4.69            10.16        12.07     

Index

    11.44        5.48                  11.44        14.15     

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was 5/7/19. The first day of secondary market trading was 5/9/19.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 18 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,021.80          $        1.78               $      1,000.00          $      1,023.40          $        1.79          0.35

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 18 for more information.

 

 

 

U N D   S U M M A R Y

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Fund Summary as of October 31, 2021  (continued)    iShares® iBonds® 2024 Term High Yield and Income ETF

 

Portfolio Information

 

ALLOCATION BY CREDIT QUALITY

 

Moody’s Credit Ratings*    
Percent of
Net Assets
 
 

Baa

    2.4

Ba

    51.5  

B

    28.9  

Caa

    12.9  

Not Rated

    3.3  

Short-Term and Other Assets

    1.0  

FIVE LARGEST HOLDINGS

 

Security(a)    
Percent of
Net Assets
 
 

Sprint Corp., 7.13%, 06/15/24

    3.2

Intesa Sanpaolo SpA, 5.02%, 06/26/24

    2.8  

DISH DBS Corp., 5.88%, 11/15/24

    2.6  

Global Aircraft Leasing Co. Ltd., 6.50%, 09/15/24

    2.1  

Occidental Petroleum Corp., 2.90%, 08/15/24

    1.9  
  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

12  

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Fund Summary as of October 31, 2021    iShares® iBonds® 2025 Term High Yield and Income ETF

 

Investment Objective

The iShares iBonds 2025 Term High Yield and Income ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield and other income generating corporate bonds maturing in 2025, as represented by the Bloomberg 2025 Term High Yield and Income Index (the “Index”)(formerly the Bloomberg Barclays 2025 Term High Yield and Income 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     

Since   

Inception   

           1 Year     

Since   

Inception   

 

Fund NAV

    8.77      5.34%         8.77      13.81%  

Fund Market

    8.66        5.41            8.66        14.01     

Index

    9.72        5.82                  9.72        15.08     

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was 5/7/19. The first day of secondary market trading was 5/9/19.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 18 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,015.50          $        1.78               $      1,000.00          $      1,023.40          $        1.79          0.35

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 18 for more information.

 

 

 

U N D   S U M M A R Y

  13


Fund Summary as of October 31, 2021  (continued)    iShares® iBonds® 2025 Term High Yield and Income ETF

 

Portfolio Information

 

ALLOCATION BY CREDIT QUALITY

 

Moody’s Credit Ratings*    
Percent of
Net Assets
 
 

Baa

    3.2

Ba

    44.1  

B

    37.1  

Caa

    11.6  

Not Rated

    1.7  

Short-Term and Other Assets

    2.3  

FIVE LARGEST HOLDINGS

 

Security(a)    
Percent of
Net Assets
 
 

Caesars Entertainment Inc., 6.25%, 07/01/25

    1.7

HCA Inc., 5.38%, 02/01/25

    1.5  

American Airlines Inc., 11.75%, 07/15/25

    1.5  

Bausch Health Companies Inc., 9.00%, 12/15/25

    1.3  

Ford Motor Co., 9.00%, 04/22/25

    1.3  
  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of October 31, 2021    iShares® iBonds® 2026 Term High Yield and Income ETF

 

Investment Objective

The iShares iBonds 2026 Term High Yield and Income ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield and other income generating corporate bonds maturing in 2026, as represented by the Bloomberg 2026 Term High Yield and Income Index (the “Index”)(formerly the Bloomberg Barclays 2026 Term High Yield and Income 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

 

       Cumulative Total Returns     
    

Since   

Inception   

 

Fund NAV

    5.79%  

Fund Market

    5.99     

Index

    6.31     

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was 11/10/20. The first day of secondary market trading was 11/12/20.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 18 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,017.20          $        1.78               $      1,000.00          $      1,023.40          $        1.79          0.35

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 18 for more information.

 

 

 

U N D   S U M M A R Y

  15


Fund Summary as of October 31, 2021  (continued)    iShares® iBonds® 2026 Term High Yield and Income ETF

 

Portfolio Information

 

ALLOCATION BY CREDIT QUALITY

 

Moody’s Credit Ratings*    
Percent of
Net Assets
 
 

Baa

    5.2

Ba

    39.2  

B

    40.1  

Caa

    12.0  

Not Rated

    1.9  

Short-Term and Other Assets

    1.6  

FIVE LARGEST HOLDINGS

 

Security(a)    
Percent of
Net Assets
 
 

TransDigm Inc., 6.25%, 03/15/26

    2.2

American Airlines Inc./AAdvantage Loyalty IP Ltd., 5.50%, 04/20/26

    1.7  

Western Digital Corp., 4.75%, 02/15/26

    1.2  

Tenet Healthcare Corp., 4.88%, 01/01/26

    1.2  

Ford Motor Credit Co. LLC, 4.39%, 01/08/26

    1.1  
  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of October 31, 2021    iShares® iBonds® 2027 Term High Yield and Income ETF

 

Investment Objective

The iShares iBonds 2027 Term High Yield and Income ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield and other income generating corporate bonds maturing in 2027, as represented by the Bloomberg 2027 Term High Yield and Income Index (the “Index”) (formerly the Bloomberg Barclays 2027 Term High Yield and Income 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

 

       Cumulative Total Returns     
    

Since   

Inception   

 

Fund NAV

    0.15%  

Fund Market

    0.14     

Index

    0.28     

For the fiscal period ended 10/31/21, the Fund did not have six months of performance and therefore line graphs are not presented.

The inception date of the Fund was 7/7/21. The first day of secondary market trading was 7/9/21.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 18 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(07/07/21)
 
 
(a) 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (b) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (b) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,001.50          $      1.11               $      1,000.00          $      1,023.40          $      1.79          0.35

 

  (a) 

The beginning of the period (commencement of operations) is July 07, 2021.

 
  (b) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (116 days for actual and 184 days for hypothetical expenses) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 18 for more information.

 

Portfolio Information

 

ALLOCATION BY CREDIT QUALITY

 

Moody’s Credit Ratings*    
Percent of
Net Assets

 

Baa

    0.9

Ba

    35.9  

B

    45.4  

Caa

    14.2  

Not Rated

    1.5  

Short-Term and Other Assets

    2.1  

FIVE LARGEST HOLDINGS

 

Security(a)    
Percent of
Net Assets

 

Carnival Corp., 5.75%, 03/01/27

    1.6

CCO Holdings LLC/CCO Holdings Capital Corp., 5.13%, 05/01/27

    1.5  

Centene Corp., 4.25%, 12/15/27

    1.3  

TransDigm Inc., 5.50%, 11/15/27

    1.2  

DIRECTV Holdings LLC/DIRECTV Financing Co. Inc., 5.88%, 08/15/27

    1.1  
  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

U N D   S U M M A R Y

  17


About Fund Performance

 

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

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

Shareholder Expenses

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

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

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

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

 

 

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Schedule of Investments

October 31, 2021

  

iShares® iBonds® 2021 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security  

    
Par

(000)

    Value  

Corporate Bonds & Notes

   
Auto Manufacturers — 2.0%            

General Motors Financial Co. Inc., 4.20%, 11/06/21

  $     780     $ 780,304  
   

 

 

 
Banks — 0.8%            

Santander Holdings USA Inc., 4.45%, 12/03/21 (Call 11/29/21)

    325       325,955  
   

 

 

 
Chemicals — 0.4%            

Eastman Chemical Co., 3.50%, 12/01/21

    135       135,336  
   

 

 

 
Electric — 1.5%            

American Electric Power Co. Inc., Series I, 3.65%, 12/01/21

    200       200,504  

Public Service Enterprise Group Inc., 2.00%, 11/15/21 (Call 11/09/21)

    180       180,059  

Southern Power Co., Series E, 2.50%, 12/15/21
(Call 11/15/21)

    180       180,144  
   

 

 

 
      560,707  
Food — 0.7%            

Kroger Co. (The), 2.95%, 11/01/21

    275       275,000  
   

 

 

 
Household Products & Wares — 0.3%            

Clorox Co. (The), 3.80%, 11/15/21

    135       135,169  
   

 

 

 
Media — 4.0%            

CSC Holdings LLC, 6.75%, 11/15/21

    1,525         1,526,815  
   

 

 

 
Pharmaceuticals — 1.8%            

AbbVie Inc.

   

2.15%, 11/19/21

    580       580,522  

3.38%, 11/14/21

    110       110,107  
   

 

 

 
      690,629  
Pipelines — 0.4%            

ANR Pipeline Co., 9.63%, 11/01/21

    155       155,000  
   

 

 

 
Real Estate Investment Trusts — 1.0%            

Starwood Property Trust Inc., 5.00%, 12/15/21 (Call 11/29/21)

    387       387,906  
   

 

 

 
Retail — 0.3%            

Lowe’s Companies Inc., 3.80%, 11/15/21

    125       125,155  
   

 

 

 
Security  

Par/
Shares

(000)

    Value  
Savings & Loans — 0.5%            

First Niagara Financial Group Inc., 7.25%, 12/15/21

  $     180     $     181,454  
   

 

 

 
Software — 0.7%            

Roper Technologies Inc., 2.80%, 12/15/21 (Call 11/15/21)

    280       280,244  
   

 

 

 
Telecommunications — 5.3%            

Qwest Corp., 6.75%, 12/01/21(a)

    1,425       1,430,543  

Sprint Communications Inc., 11.50%, 11/15/21

    620       622,294  
   

 

 

 
      2,052,837  
   

 

 

 

Total Corporate Bonds & Notes — 19.7%
(Cost: $7,613,118)

 

    7,612,511  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 81.5%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(b)(c)(d)

    838       838,519  

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

    30,640       30,640,000  
   

 

 

 
      31,478,519  
   

 

 

 

Total Short-Term Investments — 81.5%
(Cost: $31,478,096)

 

    31,478,519  
   

 

 

 

Total Investments in Securities — 101.2%
(Cost: $39,091,214)

 

    39,091,030  

Other Assets, Less Liabilities — (1.2)%

 

    (471,250
   

 

 

 

Net Assets — 100.0%

 

  $   38,619,780  
   

 

 

 

 

(a) 

All or a portion of this security is on loan.

(b) 

Affiliate of the Fund.

(c) 

Annualized 7-day yield as of period end.

(d) 

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

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
10/31/20
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
(000)
    Income     Capital Gain
Distributions from
Underlying Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 1,241,761     $     $ (402,773 )(a)    $ (471   $ 2     $ 838,519       838     $ 4,311 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    610,000       30,030,000 (a)                        30,640,000       30,640       677        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (471   $ 2     $ 31,478,519       $ 4,988     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

(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.

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.

 

 

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)

October 31, 2021

  

iShares® iBonds® 2021 Term High Yield and Income ETF

 

Fair Value Hierarchy as of Period End (continued)

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

 

      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Corporate Bonds & Notes

   $        $ 7,612,511        $        $ 7,612,511  

Money Market Funds

     31,478,519                            31,478,519  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 31,478,519        $ 7,612,511        $             —        $ 39,091,030  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

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Schedule of Investments  

October 31, 2021

  

iShares® iBonds® 2022 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  

Corporate Bonds & Notes

 

Aerospace & Defense — 0.1%  

Boeing Co. (The), 2.70%, 05/01/22(a)

  $     50     $ 50,540  
   

 

 

 
Agriculture — 1.8%  

Altria Group Inc., 2.85%, 08/09/22

    575       585,402  

BAT Capital Corp., 2.76%, 08/15/22 (Call 07/15/22)

    120       121,737  

Bunge Ltd. Finance Corp., 3.00%, 09/25/22 (Call 08/25/22)

    80       81,594  

Cooke Omega Investments Inc./Alpha VesselCo Holdings Inc., 8.50%, 12/15/22 (Call 11/29/21)(b)

    450       459,234  
   

 

 

 
        1,247,967  
Airlines — 4.0%  

American Airlines Group Inc., 5.00%, 06/01/22(a)(b)

    883       886,090  

Continental Airlines Inc. Pass Through Trust, Series 2007-1, Class A, 5.98%, 10/19/23

    8       7,624  

Delta Air Lines Inc., 3.63%, 03/15/22 (Call 02/15/22)

    975       981,250  

Southwest Airlines Co., 2.75%, 11/16/22 (Call 10/16/22)

    100       102,002  

United Airlines Holdings Inc., 4.25%, 10/01/22

    830       847,065  
   

 

 

 
      2,824,031  
Apparel — 0.2%  

Tapestry Inc., 3.00%, 07/15/22 (Call 06/15/22)

    130       131,699  
   

 

 

 
Auto Manufacturers — 3.5%  

Ford Motor Credit Co. LLC
2.98%, 08/03/22 (Call 07/03/22)

    225       226,991  

3.22%, 01/09/22

    75       75,229  

3.34%, 03/28/22 (Call 02/28/22)

    125       125,699  

3.35%, 11/01/22

    300       304,437  

3.55%, 10/07/22(a)

    235       238,607  

4.25%, 09/20/22

    250       255,650  

5.60%, 01/07/22

    225       226,737  

General Motors Financial Co. Inc.

   

3.15%, 06/30/22 (Call 05/30/22)

    415       421,167  

3.45%, 01/14/22 (Call 12/14/21)

    50       50,176  

3.45%, 04/10/22 (Call 02/10/22)

    60       60,488  

3.55%, 07/08/22

    465       474,426  
   

 

 

 
      2,459,607  
Auto Parts & Equipment — 1.2%  

ZF North America Capital Inc., 4.50%, 04/29/22(b)

    820       834,366  
   

 

 

 
Banks — 9.0%  

CIT Group Inc., 5.00%, 08/15/22(a)

    1,360       1,401,793  

Citigroup Inc., 4.05%, 07/30/22

    510       523,428  

Cooperatieve Rabobank U.A., 3.95%, 11/09/22

    650       672,003  

Credit Suisse Group Funding Guernsey Ltd., 3.80%, 09/15/22(a)

    800       822,704  

Deutsche Bank AG/New York NY

   

3.30%, 11/16/22

    650       667,388  

Series D, 5.00%, 02/14/22

    225       227,792  

Fifth Third Bancorp., 2.60%, 06/15/22 (Call 05/15/22)

    125       126,446  

Huntington Bancshares Inc./OH, 2.30%, 01/14/22 (Call 12/14/21)

    25       25,059  

Morgan Stanley, 4.88%, 11/01/22

    825       859,955  

Natwest Group PLC, 6.13%, 12/15/22

    370       391,423  

Santander Holdings USA Inc., 3.70%, 03/28/22 (Call 02/28/22)

    50       50,495  

Synchrony Bank, 3.00%, 06/15/22 (Call 05/15/22)

    100       101,335  

Synovus Financial Corp., 3.13%, 11/01/22 (Call 10/01/22)

    400       408,024  
   

 

 

 
      6,277,845  
Beverages — 0.0%  

Molson Coors Beverage Co., 3.50%, 05/01/22

    35       35,536  
   

 

 

 
Security       
Par
(000)
    Value  
Biotechnology — 1.3%  

Amgen Inc., 2.65%, 05/11/22 (Call 04/11/22)

  $     200     $ 202,056  

Biogen Inc., 3.63%, 09/15/22

    275       282,562  

Gilead Sciences Inc., 3.25%, 09/01/22 (Call 07/01/22)

    450       458,487  
   

 

 

 
      943,105  
Chemicals — 1.1%  

Cabot Corp., 3.70%, 07/15/22

    100       102,110  

Celanese U.S. Holdings LLC, 4.63%, 11/15/22

    145       150,746  

Eastman Chemical Co., 3.60%, 08/15/22 (Call 05/15/22)

    150       152,405  

Mosaic Co. (The), 3.25%, 11/15/22 (Call 10/15/22)

    115       117,824  

NewMarket Corp., 4.10%, 12/15/22

    100       103,586  

Nutrien Ltd., 3.15%, 10/01/22 (Call 07/01/22)

    100       101,766  

RPM International Inc., 3.45%, 11/15/22 (Call 08/15/22)

    25       25,538  
   

 

 

 
      753,975  
Commercial Services — 3.0%  

Block Financial LLC, 5.50%, 11/01/22 (Call 05/01/22)

    150       153,411  

Equifax Inc., 3.30%, 12/15/22 (Call 09/15/22)

    140       143,233  

IHS Markit Ltd., 5.00%, 11/01/22 (Call 08/01/22)(b)

    900       928,323  

Moody’s Corp., 4.50%, 09/01/22 (Call 06/01/22)

    135       138,041  

North Queensland Export Terminal Pty Ltd., 4.45%, 12/15/22(b)

    575       554,300  

PayPal Holdings Inc., 2.20%, 09/26/22

    50       50,824  

Verisk Analytics Inc., 4.13%, 09/12/22

    100       102,973  
   

 

 

 
        2,071,105  
Computers — 0.7%  

Genpact Luxembourg Sarl, 3.70%, 04/01/22 (Call 03/01/22)

    25       25,254  

Hewlett Packard Enterprise Co., 4.40%, 10/15/22 (Call 08/15/22)

    325       334,698  

HP Inc., 4.05%, 09/15/22

    100       102,923  
   

 

 

 
      462,875  
Diversified Financial Services — 8.2%  

AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 4.63%, 07/01/22

    150       153,993  

Air Lease Corp.

   

2.63%, 07/01/22 (Call 06/01/22)

    650       657,618  

3.50%, 01/15/22

    37       37,221  

3.75%, 02/01/22 (Call 12/01/21)

    45       45,119  

Ally Financial Inc., 4.63%, 05/19/22

    75       76,649  

Capital One Financial Corp., 3.05%, 03/09/22 (Call 02/09/22)(a)

    125       125,865  

Discover Financial Services, 3.85%, 11/21/22

    150       155,056  

Intercontinental Exchange Inc., 2.35%, 09/15/22 (Call 08/15/22)

    125       126,914  

International Lease Finance Corp., 5.88%, 08/15/22

    650       676,877  

Navient Corp., 6.50%, 06/15/22

    1,316       1,352,980  

OneMain Finance Corp., 6.13%, 05/15/22

    1,136       1,165,422  

Oxford Finance LLC/Oxford Finance Co-Issuer II Inc., 6.38%, 12/15/22 (Call 11/29/21)(b)

    560       562,610  

Synchrony Financial, 2.85%, 07/25/22 (Call 06/25/22)

    600       608,946  
   

 

 

 
      5,745,270  
Electric — 7.5%  

AEP Texas Inc., 2.40%, 10/01/22 (Call 09/01/22)

    50       50,760  

American Electric Power Co. Inc., Series F, 2.95%, 12/15/22 (Call 09/15/22)

    125       127,580  

CenterPoint Energy Inc., 2.50%, 09/01/22 (Call 08/01/22)(a)

    100       101,493  

Dominion Energy Inc., Series B, 2.75%, 09/15/22 (Call 06/15/22)

    100       101,388  

DTE Energy Co.

   

2.25%, 11/01/22

    100       101,618  

Series H, 0.55%, 11/01/22

    300       300,081  

Duke Energy Corp.

   

2.40%, 08/15/22 (Call 07/15/22)

    150       152,105  

3.05%, 08/15/22 (Call 05/15/22)

    250       253,410  

 

 

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)

October 31, 2021

  

iShares® iBonds® 2022 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Electric (continued)  

Edison International

   

2.40%, 09/15/22 (Call 08/15/22)

  $ 125     $ 126,439  

3.13%, 11/15/22 (Call 10/15/22)

    100       101,886  

Entergy Corp., 4.00%, 07/15/22 (Call 05/15/22)

    175       178,101  

Eversource Energy, Series K, 2.75%, 03/15/22 (Call 02/15/22)

    50       50,322  

Exelon Corp., 3.50%, 06/01/22 (Call 05/01/22)

    226       229,272  

Exelon Generation Co. LLC, 4.25%, 06/15/22 (Call 03/15/22)

    175       177,415  

FirstEnergy Corp., Series A, 3.35%, 07/15/22 (Call 05/15/22)

    601       607,791  

ITC Holdings Corp., 2.70%, 11/15/22 (Call 10/15/22)

    100       101,963  

NextEra Energy Capital Holdings Inc.

   

1.95%, 09/01/22

    475       480,975  

2.90%, 04/01/22

    135       136,426  

Pacific Gas and Electric Co., 1.75%, 06/16/22 (Call 11/09/21)

    700       699,279  

Public Service Enterprise Group Inc., 2.65%, 11/15/22 (Call 10/15/22)

    125       127,443  

Puget Energy Inc., 5.63%, 07/15/22 (Call 04/15/22)

    135       138,101  

Sempra Energy, 2.88%, 10/01/22 (Call 07/01/22)

    150       152,230  

TransAlta Corp., 4.50%, 11/15/22 (Call 08/15/22)(a)

    760       774,759  
   

 

 

 
        5,270,837  
Electronics — 0.4%  

Arrow Electronics Inc., 3.50%, 04/01/22 (Call 02/01/22)

    37       37,274  

Avnet Inc., 4.88%, 12/01/22

    100       104,271  

Jabil Inc., 4.70%, 09/15/22

    135       139,701  
   

 

 

 
      281,246  
Environmental Control — 0.1%  

Waste Management Inc., 2.90%, 09/15/22 (Call 06/15/22)

    100       101,548  
   

 

 

 
Food — 3.0%  

Campbell Soup Co., 2.50%, 08/02/22(a)

    50       50,763  

General Mills Inc., 2.60%, 10/12/22 (Call 09/12/22)

    125       127,286  

Kraft Heinz Foods Co., 3.50%, 06/06/22

    840       852,793  

Kroger Co. (The), 2.80%, 08/01/22 (Call 07/01/22)

    525       533,332  

McCormick & Co. Inc./MD, 2.70%, 08/15/22 (Call 07/15/22)

    175       177,795  

Mondelez International Inc., 0.63%, 07/01/22

    150       150,294  

Sysco Corp., 2.60%, 06/12/22

    35       35,446  

Tyson Foods Inc., 4.50%, 06/15/22 (Call 03/15/22)(a)

    175       177,667  
   

 

 

 
      2,105,376  
Health Care - Products — 0.2%  

DH Europe Finance II Sarl, 2.05%, 11/15/22

    100       101,586  

Zimmer Biomet Holdings Inc., 3.15%, 04/01/22 (Call 02/01/22)

    50       50,323  
   

 

 

 
      151,909  
Health Care - Services — 3.4%  

Aetna Inc., 2.75%, 11/15/22 (Call 08/15/22)

    260       264,514  

Anthem Inc.

   

2.95%, 12/01/22 (Call 11/01/22)

    300       307,146  

3.13%, 05/15/22

    50       50,721  

CommonSpirit Health, 2.95%, 11/01/22

    150       153,247  

Dignity Health, 3.13%, 11/01/22

    100       102,237  

Humana Inc.

   

2.90%, 12/15/22 (Call 11/15/22)

    100       102,359  

3.15%, 12/01/22 (Call 09/01/22)

    155       158,329  

Molina Healthcare Inc., 5.38%, 11/15/22 (Call 08/15/22)

    1,200       1,235,892  
   

 

 

 
      2,374,445  
Holding Companies - Diversified — 0.2%  

Ares Capital Corp., 3.63%, 01/19/22 (Call 12/19/21)

    45       45,175  

FS KKR Capital Corp., 4.75%, 05/15/22 (Call 04/15/22)(a)

    60       61,063  
   

 

 

 
      106,238  
Home Builders — 2.3%  

DR Horton Inc., 4.38%, 09/15/22 (Call 06/15/22)

    100       102,304  
Security       
Par
(000)
    Value  
Home Builders (continued)  

KB Home, 7.50%, 09/15/22

  $ 650     $ 685,360  

Lennar Corp., 4.75%, 11/15/22 (Call 08/15/22)

    320       330,445  

NVR Inc., 3.95%, 09/15/22 (Call 06/15/22)

    170       173,400  

Toll Brothers Finance Corp., 5.88%, 02/15/22 (Call 11/15/21)

    300       300,504  
   

 

 

 
        1,592,013  
Home Furnishings — 0.2%  

Leggett & Platt Inc., 3.40%, 08/15/22 (Call 05/15/22)

    100       101,527  

Whirlpool Corp., 4.70%, 06/01/22

    50       51,188  
   

 

 

 
      152,715  
Household Products & Wares — 0.4%  

Church & Dwight Co. Inc., 2.88%, 10/01/22

    75       76,689  

Clorox Co. (The), 3.05%, 09/15/22 (Call 06/15/22)

    170       172,683  
   

 

 

 
      249,372  
Housewares — 0.4%  

Newell Brands Inc., 4.00%, 06/15/22 (Call 11/22/21)

    305       308,459  
   

 

 

 
Insurance — 1.0%  

Alleghany Corp., 4.95%, 06/27/22

    105       107,975  

Aon Corp., 2.20%, 11/15/22

    150       152,494  

Enstar Group Ltd., 4.50%, 03/10/22 (Call 02/10/22)

    25       25,264  

Fidelity National Financial Inc., 5.50%, 09/01/22

    105       109,208  

Globe Life Inc., 3.80%, 09/15/22

    50       51,397  

Markel Corp., 4.90%, 07/01/22

    100       102,782  

Primerica Inc., 4.75%, 07/15/22

    130       133,818  

WR Berkley Corp., 4.63%, 03/15/22

    50       50,699  
   

 

 

 
      733,637  
Internet — 3.1%  

Cogent Communications Group Inc., 5.38%, 03/01/22
(Call 12/01/21)(b)

    312       313,114  

E*TRADE Financial Corp., 2.95%, 08/24/22 (Call 07/24/22)

    150       152,681  

eBay Inc., 2.60%, 07/15/22 (Call 04/15/22)

    400       403,988  

Netflix Inc., 5.50%, 02/15/22

    875       886,917  

NortonLifeLock Inc., 3.95%, 06/15/22 (Call 03/15/22)

    445       449,027  
   

 

 

 
      2,205,727  
Iron & Steel — 0.1%  

Nucor Corp., 4.13%, 09/15/22 (Call 06/15/22)

    100       102,222  
   

 

 

 
Leisure Time — 1.5%  

Royal Caribbean Cruises Ltd., 5.25%, 11/15/22

    1,050       1,078,696  
   

 

 

 
Lodging — 2.3%  

Marriott International Inc./MD, 2.30%, 01/15/22 (Call 12/15/21)

    25       25,051  

MGM Resorts International, 7.75%, 03/15/22

    1,008       1,031,688  

Travel + Leisure Co., 4.25%, 03/01/22
(Call 12/01/21)(a)

    571       572,085  
   

 

 

 
      1,628,824  
Machinery — 0.1%  

CNH Industrial Capital LLC, 4.38%, 04/05/22

    35       35,540  
   

 

 

 
Manufacturing — 1.8%  

Carlisle Companies Inc., 3.75%, 11/15/22 (Call 08/15/22)

    100       102,524  

Eaton Corp., 2.75%, 11/02/22(a)

    400       408,916  

General Electric Co.

   

2.70%, 10/09/22

    155       158,125  

3.15%, 09/07/22(a)

    500       512,030  

Parker-Hannifin Corp., 3.50%, 09/15/22(a)

    50       51,288  
   

 

 

 
      1,232,883  
Media — 4.6%  

Charter Communications Operating LLC/Charter Communications Operating Capital, 4.46%, 07/23/22 (Call 05/23/22)

    760       776,036  

 

 

22  

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


Schedule of Investments  (continued)

October 31, 2021

  

iShares® iBonds® 2022 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Media (continued)  

CSC Holdings LLC, 5.88%, 09/15/22

  $     1,050     $   1,080,366  

DISH DBS Corp., 5.88%, 07/15/22(a)

    1,261       1,293,950  

Fox Corp., 3.67%, 01/25/22

    75       75,575  
   

 

 

 
      3,225,927  
Mining — 1.2%  

Freeport-McMoRan Inc., 3.55%, 03/01/22 (Call 12/01/21)

    488       489,010  

Mountain Province Diamonds Inc., 8.00%, 12/15/22 (Call 11/09/21)(a)(b)

    308       276,196  

Southern Copper Corp., 3.50%, 11/08/22

    100       102,734  
   

 

 

 
      867,940  
Office & Business Equipment — 0.5%  

Xerox Corp., 4.07%, 03/17/22

    324       327,477  
   

 

 

 
Oil & Gas — 3.4%  

Apache Corp., 3.25%, 04/15/22 (Call 01/15/22)

    100       100,394  

EQT Corp., 3.00%, 10/01/22 (Call 09/01/22)(a)

    1,000       1,010,920  

Occidental Petroleum Corp.

   

2.60%, 04/15/22 (Call 03/15/22)

    55       55,252  

2.70%, 08/15/22

    525       532,208  

3.13%, 02/15/22 (Call 11/29/21)

    301       301,331  

Phillips 66, 4.30%, 04/01/22

    250       254,058  

Range Resources Corp., 5.00%, 08/15/22 (Call 05/15/22)(a)

    102       103,626  
   

 

 

 
      2,357,789  
Packaging & Containers — 1.7%  

Graphic Packaging International LLC, 4.88%, 11/15/22 (Call 08/15/22)

    600       617,724  

Sealed Air Corp., 4.88%, 12/01/22
(Call 09/01/22)(b)

    584       602,922  
   

 

 

 
      1,220,646  
Pharmaceuticals — 3.5%  

AbbVie Inc.

   

2.30%, 11/21/22

    660       672,164  

2.90%, 11/06/22

    375       383,771  

3.20%, 11/06/22 (Call 09/06/22)

    50       51,114  

3.25%, 10/01/22 (Call 07/01/22)

    150       152,665  

3.45%, 03/15/22 (Call 01/15/22)

    50       50,309  

AstraZeneca PLC, 2.38%, 06/12/22 (Call 05/12/22)

    75       75,800  

Cigna Corp., 3.05%, 11/30/22 (Call 10/31/22)

    100       102,528  

CVS Health Corp.

   

2.75%, 12/01/22 (Call 09/01/22)

    425       432,739  

3.50%, 07/20/22 (Call 05/20/22)

    125       127,069  

4.75%, 12/01/22 (Call 09/01/22)

    105       108,600  

McKesson Corp., 2.70%, 12/15/22 (Call 09/15/22)

    125       127,291  

Viatris Inc., 1.13%, 06/22/22(b)

    150       150,540  
   

 

 

 
      2,434,590  
Pipelines — 6.7%  

DCP Midstream Operating LP, 4.95%, 04/01/22 (Call 01/01/22)

    414       416,111  

Enbridge Inc., 2.90%, 07/15/22 (Call 06/15/22)

    125       126,855  

Energy Transfer LP

   

4.65%, 02/15/22

    15       15,175  

5.20%, 02/01/22 (Call 11/01/21)

    135       135,000  

Energy Transfer LP/Regency Energy Finance Corp.

   

5.00%, 10/01/22 (Call 07/01/22)

    625       642,812  

5.88%, 03/01/22 (Call 12/01/21)

    65       65,280  

Enterprise Products Operating LLC, 4.05%, 02/15/22

    100       101,039  

Kinder Morgan Energy Partners LP, 3.95%, 09/01/22

   

(Call 06/01/22)

    375       382,537  

MPLX LP, 3.50%, 12/01/22 (Call 11/01/22)

    135       138,698  

NuStar Logistics LP, 4.75%, 02/01/22 (Call 11/01/21)

    277       277,000  

ONEOK Inc., 4.25%, 02/01/22 (Call 11/01/21)

    50       50,000  

ONEOK Partners LP, 3.38%, 10/01/22 (Call 07/01/22)

    250       254,550  
Security       
Par
(000)
    Value  
Pipelines (continued)  

Plains All American Pipeline LP/PAA Finance Corp., 3.65%, 06/01/22 (Call 03/01/22)

  $     125     $ 126,218  

Ruby Pipeline LLC, 8.00%, 04/01/22(b)

    259       244,375  

Sabine Pass Liquefaction LLC, 6.25%, 03/15/22 (Call 12/15/21)

    100       100,674  

TransCanada PipeLines Ltd., 2.50%, 08/01/22

    250       253,397  

Western Midstream Operating LP, 4.00%, 07/01/22
(Call 04/01/22)(a)

    800       808,344  

Williams Companies Inc. (The)

   

3.35%, 08/15/22 (Call 05/15/22)

    530       538,056  

3.60%, 03/15/22 (Call 01/15/22)

    50       50,321  
   

 

 

 
        4,726,442  
Real Estate Investment Trusts — 1.9%  

Kimco Realty Corp., 3.40%, 11/01/22 (Call 09/01/22)

    75       76,722  

Office Properties Income Trust, 4.00%, 07/15/22 (Call 06/15/22) .

    100       101,868  

Service Properties Trust, 5.00%, 08/15/22 (Call 02/15/22)

    876       880,152  

SL Green Operating Partnership LP, 3.25%, 10/15/22
(Call 09/15/22)

    135       137,887  

SL Green Realty Corp., 4.50%, 12/01/22 (Call 09/01/22)

    100       102,994  
   

 

 

 
      1,299,623  
Retail — 0.6%  

Lowe’s Companies Inc., 3.12%, 04/15/22 (Call 01/15/22)

    93       93,531  

McDonald’s Corp., 2.63%, 01/15/22

    50       50,241  

O’Reilly Automotive Inc., 3.80%, 09/01/22 (Call 06/01/22)

    50       50,944  

Starbucks Corp., 2.70%, 06/15/22 (Call 04/15/22)

    95       96,019  

Walgreen Co., 3.10%, 09/15/22

    150       153,367  
   

 

 

 
      444,102  
Savings & Loans — 0.2%  

People’s United Financial Inc., 3.65%, 12/06/22 (Call 09/06/22)

    135       138,222  
   

 

 

 
Semiconductors — 0.5%  

Advanced Micro Devices Inc., 7.50%, 08/15/22

    283       297,974  

Broadcom Corp./Broadcom Cayman Finance Ltd., 3.00%, 01/15/22 (Call 12/15/21)

    23       23,052  
   

 

 

 
      321,026  
Software — 2.7%  

Autodesk Inc., 3.60%, 12/15/22 (Call 09/15/22)

    100       102,418  

Fiserv Inc., 3.50%, 10/01/22 (Call 07/01/22)

    175       178,491  

Oracle Corp., 2.50%, 10/15/22

    975       993,496  

Roper Technologies Inc.

   

0.45%, 08/15/22

    75       75,005  

3.13%, 11/15/22 (Call 08/15/22)

    150       152,870  

VMware Inc., 2.95%, 08/21/22 (Call 07/21/22)

    350       355,866  
   

 

 

 
      1,858,146  
Telecommunications — 6.7%  

AT&T Inc.

   

2.63%, 12/01/22 (Call 09/01/22)

    250       254,275  

3.00%, 06/30/22 (Call 04/30/22)

    265       268,204  

Lumen Technologies Inc., Series T, 5.80%, 03/15/22

    1,271       1,288,222  

Nokia OYJ, 3.38%, 06/12/22

    625       633,800  

Sprint Communications Inc., 6.00%, 11/15/22(a)

    1,322       1,386,606  

Telefonaktiebolaget LM Ericsson, 4.13%, 05/15/22

    331       336,822  

T-Mobile USA Inc., 4.00%, 04/15/22 (Call 03/16/22)

    465       469,771  

Vodafone Group PLC, 2.50%, 09/26/22

    75       76,260  
   

 

 

 
      4,713,960  
Transportation — 1.1%  

JB Hunt Transport Services Inc., 3.30%, 08/15/22 (Call 06/15/22)

    125       127,237  

Navios Maritime Holdings Inc./Navios Maritime Finance II U.S. Inc., 7.38%, 01/15/22
(Call 11/29/21)(a)(b)

    300       292,461  

Ryder System Inc., 2.50%, 09/01/22 (Call 08/01/22)

    200       202,938  

 

 

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  (continued)

October 31, 2021

  

iShares® iBonds® 2022 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security  

Par/

Shares
(000)

    Value  
Transportation (continued)            

Union Pacific Corp., 4.16%, 07/15/22 (Call 04/15/22)

  $     125     $       127,131  
   

 

 

 
      749,767  
   

 

 

 

Total Corporate Bonds & Notes — 97.4%
(Cost: $68,035,938)

      68,235,265  
   

 

 

 

Common Stocks

   
Metals & Mining — 0.0%            

Ferroglobe PLC(c)

    2       11,006  
   

 

 

 

Total Common Stocks — 0.0%
(Cost $10,805)

      11,006  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 13.6%            

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

    6,231       6,234,299  

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

    3,280       3,280,000  
   

 

 

 
      9,514,299  
   

 

 

 

Total Short-Term Investments — 13.6%
(Cost: $9,513,955)

      9,514,299  
   

 

 

 

Total Investments in Securities — 111.0%
(Cost: $77,560,698)

      77,760,570  

Other Assets, Less Liabilities — (11.0)%

      (7,675,278
   

 

 

 

Net Assets — 100.0%

    $ 70,085,292  
   

 

 

 

 

(a) 

All or a portion of this security is on loan.

(b) 

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

(c) 

Non-income producing security.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Value at
10/31/20
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/21
     Shares
Held at
10/31/21
(000)
     Income      Capital Gain
Distributions from
Underlying Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 1,096,376      $ 5,138,611 (a)     $      $ (713    $ 25      $ 6,234,299        6,231      $ 13,080 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     691,000        2,589,000 (a)                            3,280,000        3,280        148         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ (713    $ 25      $ 9,514,299         $ 13,228      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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.

 

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.

 

 

24  

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


Schedule of Investments  (continued)

October 31, 2021

  

iShares® iBonds® 2022 Term High Yield and Income ETF

 

Fair Value Hierarchy as of Period End (continued)

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

 

      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Corporate Bonds & Notes

   $        $ 68,235,265        $        $ 68,235,265  

Common Stocks

     11,006                            11,006  

Money Market Funds

     9,514,299                            9,514,299  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $   9,525,305        $ 68,235,265        $             —        $ 77,760,570  
  

 

 

      

 

 

      

 

 

      

 

 

 

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

  25


Schedule of Investments  

October 31, 2021

  

iShares® iBonds® 2023 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  

Corporate Bonds & Notes

   
Aerospace & Defense — 1.2%            

Boeing Co. (The)

   

1.88%, 06/15/23 (Call 04/15/23)

  $ 100     $ 101,292  

4.51%, 05/01/23 (Call 04/01/23)

    300       314,550  

Northrop Grumman Corp., 3.25%, 08/01/23

    200       209,008  

Spirit AeroSystems Inc., 3.95%, 06/15/23 (Call 05/15/23)(a)

    395       402,011  
   

 

 

 
      1,026,861  
Airlines — 1.1%            

American Airlines Pass Through Trust, Series 2013-2, Class A, 4.95%, 07/15/24

    234       238,689  

Delta Air Lines Inc., 3.80%, 04/19/23
(Call 03/19/23)(a)

    585       605,703  

Southwest Airlines Co., 4.75%, 05/04/23

    55       58,175  
   

 

 

 
      902,567  
Auto Manufacturers — 4.5%            

Ford Motor Co., 8.50%, 04/21/23

    825       904,035  

Ford Motor Credit Co. LLC

   

3.09%, 01/09/23

    370       375,994  

3.10%, 05/04/23

    240       244,586  

3.37%, 11/17/23

    265       271,800  

4.14%, 02/15/23 (Call 01/15/23)

    260       267,488  

4.38%, 08/06/23(a)

    445       463,597  

General Motors Co., 4.88%, 10/02/23

    250       268,233  

General Motors Financial Co. Inc., 1.70%, 08/18/23

    255       258,652  

Jaguar Land Rover Automotive PLC, 5.63%, 02/01/23
(Call 11/29/21)(a)(b)

    650       653,256  

Stellantis NV, 5.25%, 04/15/23

    75       79,658  
   

 

 

 
      3,787,299  
Banks — 5.0%            

CIT Group Inc., 5.00%, 08/01/23(a)

    1,005       1,067,209  

Citigroup Inc., 3.50%, 05/15/23

    50       52,084  

Commerzbank AG, 8.13%, 09/19/23(b)

    1,300       1,454,804  

Cooperatieve Rabobank U.A., 4.63%, 12/01/23

    315       338,480  

Credit Suisse Group AG, 3.80%, 06/09/23

    305       319,234  

Discover Bank, 4.20%, 08/08/23

    255       270,313  

Morgan Stanley, 4.10%, 05/22/23

    255       267,985  

Natwest Group PLC, 3.88%, 09/12/23

    206       217,116  

Santander Holdings USA Inc., 3.40%, 01/18/23
(Call 12/18/22)

    200       205,876  
   

 

 

 
      4,193,101  
Beverages — 0.0%            

Constellation Brands Inc., 4.25%, 05/01/23

    30       31,552  
   

 

 

 
Biotechnology — 0.4%            

Gilead Sciences Inc., 0.75%, 09/29/23
(Call 11/09/21)

    150       149,818  

Royalty Pharma PLC, 0.75%, 09/02/23

    150       149,762  
   

 

 

 
      299,580  
Chemicals — 0.9%            

CF Industries Inc., 3.45%, 06/01/23

    443       459,413  

CVR Partners LP/CVR Nitrogen Finance Corp., 9.25%, 06/15/23 (Call 11/15/21)(a)(b)

    34       34,067  

DuPont de Nemours Inc., 4.21%, 11/15/23 (Call 10/15/23)

    260       277,069  
   

 

 

 
      770,549  
Commercial Services — 3.3%            

ADT Security Corp. (The), 4.13%, 06/15/23

    875       909,860  

Ahern Rentals Inc., 7.38%, 05/15/23
(Call 11/29/21)(a)(b)

    630       605,272  

IHS Markit Ltd., 4.13%, 08/01/23 (Call 07/01/23)

    625       658,400  

Modulaire Global Finance PLC, 8.00%, 02/15/23
(Call 11/09/21)(b)

    525       534,991  
   

 

 

 
      2,708,523  
Security       
Par
(000)
    Value  
Computers — 2.2%            

Dell International LLC/EMC Corp., 5.45%, 06/15/23
(Call 04/15/23)

  $     100     $     106,591  

Exela Intermediate LLC/Exela Finance Inc., 10.00%, 07/15/23 (Call 11/29/21)(b)

    1,159       970,593  

Hewlett Packard Enterprise Co., 4.45%, 10/02/23 (Call 09/02/23)

    75       79,760  

Seagate HDD Cayman, 4.75%, 06/01/23(a)

    670       701,222  
   

 

 

 
      1,858,166  
Cosmetics & Personal Care — 0.8%            

Avon Products Inc., 6.50%, 03/15/23

    595       626,898  
   

 

 

 
Distribution & Wholesale — 0.9%            

Avient Corp., 5.25%, 03/15/23

    740       779,405  
   

 

 

 
Diversified Financial Services — 6.4%            

AerCap Ireland Capital DAC/AerCap Global Aviation Trust

   

4.13%, 07/03/23 (Call 06/03/23)

    150       157,295  

4.50%, 09/15/23 (Call 08/15/23)

    150       159,042  

Air Lease Corp., 3.00%, 09/15/23 (Call 07/15/23)

    150       155,226  

Aircastle Ltd., 5.00%, 04/01/23

    30       31,674  

Ally Financial Inc., 1.45%, 10/02/23 (Call 09/02/23)

    255       257,458  

Capital One Bank USA N.A., 3.38%, 02/15/23

    250       258,503  

Capital One Financial Corp., 3.50%, 06/15/23

    180       187,988  

Intercontinental Exchange Inc., 4.00%, 10/15/23

    25       26,559  

Navient Corp.

   

5.50%, 01/25/23

    1,150       1,201,278  

7.25%, 09/25/23

    725       788,815  

OneMain Finance Corp.

   

5.63%, 03/15/23(a)

    1,085       1,140,953  

8.25%, 10/01/23(a)

    495       552,212  

TMX Finance LLC/TitleMax Finance Corp., 11.13%, 04/01/23 (Call 11/29/21)(b)

    420       429,366  
   

 

 

 
      5,346,369  
Electric — 2.6%            

FirstEnergy Corp., Series B, 4.75%, 03/15/23 (Call 12/15/22)

    1,055       1,093,729  

InterGen NV, 7.00%, 06/30/23 (Call 11/29/21)(b)

    500       493,315  

NextEra Energy Capital Holdings Inc., 0.65%, 03/01/23

    100       100,104  

Pacific Gas and Electric Co.
1.37%, 03/10/23 (Call 11/09/21)

    50       49,816  

3.85%, 11/15/23 (Call 08/15/23)

    75       77,369  

4.25%, 08/01/23 (Call 07/01/23)

    35       36,456  

Sempra Energy, 4.05%, 12/01/23 (Call 09/01/23)

    100       105,883  

Southern Co. (The), 2.95%, 07/01/23 (Call 05/01/23)

    200       206,522  
   

 

 

 
      2,163,194  
Electrical Components & Equipment — 0.4%            

EnerSys, 5.00%, 04/30/23 (Call 01/30/23)(a)(b)

    345       357,244  
   

 

 

 
Electronics — 0.9%            

Sensata Technologies BV, 4.88%, 10/15/23(b)

    700       742,490  
   

 

 

 
Energy - Alternate Sources — 0.7%            

TerraForm Power Operating LLC, 4.25%, 01/31/23
(Call 10/31/22)(a)(b)

    600       614,796  
   

 

 

 
Entertainment — 0.4%            

Downstream Development Authority of the Quapaw Tribe of Oklahoma, 10.50%, 02/15/23 (Call 11/29/21)(b)

    320       331,917  
   

 

 

 
Food — 2.1%            

Albertsons Companies Inc./Safeway Inc./New

   

Albertsons LP/Albertsons LLC, 3.50%, 02/15/23
(Call 12/15/22)(b)

    945       961,925  

Conagra Brands Inc., 0.50%, 08/11/23 (Call 08/11/22)

    100       99,543  

 

 

26  

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


Schedule of Investments  (continued)

October 31, 2021

  

iShares® iBonds® 2023 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Food (continued)  

Fresh Market Inc. (The), 9.75%, 05/01/23 (Call 11/29/21)(b)

  $     695     $     715,106  
   

 

 

 
      1,776,574  
Gas — 0.6%  

Rockpoint Gas Storage Canada Ltd., 7.00%, 03/31/23 (Call 11/29/21)(b)

    505       506,874  
   

 

 

 
Hand & Machine Tools — 0.5%  

Apex Tool Group LLC/BC Mountain Finance Inc., 9.00%, 02/15/23 (Call 11/29/21)(a)(b)

    405       405,717  
   

 

 

 
Health Care - Products — 0.1%  

Thermo Fisher Scientific Inc., 0.80%, 10/18/23 (Call 10/18/22)

    60       60,019  
   

 

 

 
Health Care - Services — 5.0%  

HCA Inc., 5.88%, 05/01/23

    1,574       1,684,243  

Humana Inc., 0.65%, 08/03/23 (Call 02/03/22)

    200       199,824  

Tenet Healthcare Corp., 6.75%, 06/15/23

    2,119       2,276,971  
   

 

 

 
      4,161,038  
Holding Companies - Diversified — 0.8%  

FS Energy & Power Fund, 7.50%, 08/15/23 (Call 05/15/23)(b)

    630       656,523  
   

 

 

 
Home Builders — 1.8%  

DR Horton Inc., 4.75%, 02/15/23 (Call 11/15/22)

    15       15,611  

KB Home, 7.63%, 05/15/23 (Call 11/15/22)

    440       468,556  

Taylor Morrison Communities Inc./Taylor Morrison Holdings II Inc., 5.88%, 04/15/23 (Call 01/15/23)(b)

    440       460,328  

Toll Brothers Finance Corp., 4.38%, 04/15/23 (Call 01/15/23)

    510       527,988  
   

 

 

 
      1,472,483  
Housewares — 1.7%  

Newell Brands Inc., 4.35%, 04/01/23 (Call 02/01/23)

    1,355       1,412,018  
   

 

 

 
Insurance — 0.8%  

Aspen Insurance Holdings Ltd., 4.65%, 11/15/23

    15       16,056  

Assurant Inc., 4.20%, 09/27/23 (Call 08/27/23)

    15       15,883  

Genworth Holdings Inc., 4.90%, 08/15/23

    540       553,549  

MGIC Investment Corp., 5.75%, 08/15/23

    55       58,954  
   

 

 

 
      644,442  
Iron & Steel — 1.0%  

Carpenter Technology Corp., 4.45%, 03/01/23 (Call 12/01/22)(a) .

    395       409,153  

Commercial Metals Co., 4.88%, 05/15/23 (Call 02/15/23)

    420       435,838  
   

 

 

 
      844,991  
Leisure Time — 2.6%  

Royal Caribbean Cruises Ltd.

   

9.13%, 06/15/23 (Call 03/15/23)(b)

    995       1,080,590  

10.88%, 06/01/23 (Call 03/01/23)(b)

    1,000       1,119,500  
   

 

 

 
      2,200,090  
Lodging — 3.5%  

Hyatt Hotels Corp., 1.30%, 10/01/23 (Call 10/01/22)

    200       200,174  

MGM Resorts International, 6.00%, 03/15/23

    1,545       1,632,802  

Travel + Leisure Co., 3.90%, 03/01/23 (Call 12/01/22)

    485       500,937  

Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 4.25%, 05/30/23 (Call 02/28/23)(b)

    600       605,610  
   

 

 

 
      2,939,523  
Machinery — 0.8%  

Cleaver-Brooks Inc., 7.88%, 03/01/23
(Call 11/29/21)(a)(b)

    455       449,071  

CNH Industrial NV, 4.50%, 08/15/23

    200       212,520  

Crane Co., 4.45%, 12/15/23 (Call 09/15/23)

    15       15,993  
   

 

 

 
      677,584  
Manufacturing — 0.0%  

Carlisle Companies Inc., 0.55%, 09/01/23 (Call 09/01/22)

    15       14,934  
   

 

 

 
Security       
Par
(000)
    Value  
Media — 4.3%  

CCO Holdings LLC/CCO Holdings Capital Corp., 4.00%, 03/01/23 (Call 11/15/21)(b)

  $     525     $     526,271  

DISH DBS Corp., 5.00%, 03/15/23

    1,883       1,948,434  

Quebecor Media Inc., 5.75%, 01/15/23

    1,080       1,136,948  
   

 

 

 
      3,611,653  
Mining — 1.6%  

Freeport-McMoRan Inc., 3.88%, 03/15/23 (Call 12/15/22)

    1,255       1,292,688  
   

 

 

 
Office & Business Equipment — 1.5%  

Xerox Corp., 4.38%, 03/15/23 (Call 02/15/23)

    1,240       1,280,449  
   

 

 

 
Oil & Gas — 5.3%  

Calumet Specialty Products Partners LP/Calumet Finance Corp., 7.75%, 04/15/23 (Call 11/29/21)

    405       400,820  

Cenovus Energy Inc., 3.80%, 09/15/23 (Call 06/15/23)

    135       140,970  

Continental Resources Inc./OK, 4.50%, 04/15/23 (Call 01/15/23)

    785       816,636  

Devon Energy Corp., 8.25%, 08/01/23
(Call 06/01/23)(b)

    35       38,859  

Marathon Petroleum Corp., 4.75%, 12/15/23
(Call 10/15/23)(a)

    60       64,468  

Occidental Petroleum Corp., 2.70%, 02/15/23
(Call 11/15/22)

    855       865,551  

Range Resources Corp., 5.00%, 03/15/23
(Call 12/15/22)

    675       693,765  

Transocean Sentry Ltd., 5.38%, 05/15/23
(Call 11/29/21)(b)

    441       433,330  

Vantage Drilling International, 9.25%, 11/15/23
(Call 11/29/21)(b).

    345       315,568  

W&T Offshore Inc., 9.75%, 11/01/23 (Call 11/29/21)(b)

    685       666,772  
   

 

 

 
      4,436,739  
Packaging & Containers — 4.0%  

Ball Corp., 4.00%, 11/15/23

    1,355       1,425,026  

OI European Group BV, 4.00%, 03/15/23
(Call 12/15/22)(b)

    395       403,331  

Owens-Brockway Glass Container Inc., 5.88%, 08/15/23(a)(b)

    905       953,399  

Sealed Air Corp., 5.25%, 04/01/23 (Call 01/01/23)(b)

    505       527,614  
   

 

 

 
      3,309,370  
Pharmaceuticals — 3.1%  

AbbVie Inc., 3.75%, 11/14/23 (Call 10/14/23)

    275       290,887  

Cigna Corp.

   

3.00%, 07/15/23 (Call 05/16/23)

    200       206,874  

3.75%, 07/15/23 (Call 06/15/23)

    55       57,752  

CVS Health Corp.

   

3.70%, 03/09/23 (Call 02/09/23)

    100       103,906  

4.00%, 12/05/23 (Call 09/05/23)

    160       169,480  

Elanco Animal Health Inc., 5.27%, 08/28/23
(Call 07/28/23)(a)

    1,035       1,102,379  

Shire Acquisitions Investments Ireland DAC, 2.88%, 09/23/23 (Call 07/23/23)

    205       212,396  

Takeda Pharmaceutical Co. Ltd., 4.40%, 11/26/23 (Call 10/26/23)

    200       214,062  

Zoetis Inc., 3.25%, 02/01/23 (Call 11/01/22)

    200       205,306  
   

 

 

 
      2,563,042  
Pipelines — 5.9%  

Buckeye Partners LP, 4.15%, 07/01/23 (Call 04/01/23)

    630       651,918  

DCP Midstream Operating LP, 3.88%, 03/15/23
(Call 12/15/22)(a)

    625       645,494  

Enbridge Inc., 4.00%, 10/01/23 (Call 07/01/23)

    200       210,536  

Energy Transfer LP, Series 5Y, 4.20%, 09/15/23 (Call 08/15/23)

    60       63,278  

Energy Transfer LP/Regency Energy Finance Corp., 4.50%, 11/01/23 (Call 08/01/23)

    250       264,415  

EQM Midstream Partners LP, 4.75%, 07/15/23 (Call 06/15/23)

    845       889,616  

Kinder Morgan Energy Partners LP, 3.50%, 09/01/23 (Call 06/01/23)

    200       208,282  

MPLX LP, 4.50%, 07/15/23 (Call 04/15/23)

    300       315,513  

NGL Energy Partners LP/NGL Energy Finance Corp., 7.50%, 11/01/23 (Call 11/29/21)

    695       670,473  

ONEOK Inc., 7.50%, 09/01/23 (Call 06/01/23)

    100       110,259  

 

 

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)

October 31, 2021

  

iShares® iBonds® 2023 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Pipelines (continued)  

PBF Logistics LP/PBF Logistics Finance Corp., 6.88%, 05/15/23 (Call 11/29/21)(a)

  $     655     $     637,715  

Plains All American Pipeline LP/PAA Finance Corp., 3.85%, 10/15/23 (Call 07/15/23)

    77       80,661  

Williams Companies Inc. (The), 4.50%, 11/15/23 (Call 08/15/23).

    200       212,720  
   

 

 

 
      4,960,880  
Real Estate — 1.6%  

Newmark Group Inc., 6.13%, 11/15/23 (Call 10/15/23)

    745       804,369  

Realogy Group LLC/Realogy Co-Issuer Corp., 4.88%, 06/01/23 (Call 03/01/23)(b)

    515       531,835  
   

 

 

 
      1,336,204  
Real Estate Investment Trusts — 2.7%  

American Tower Corp., 3.00%, 06/15/23

    200       207,326  

Crown Castle International Corp., 3.15%, 07/15/23 (Call 06/15/23)

    225       233,703  

CubeSmart LP, 4.38%, 12/15/23 (Call 09/15/23)

    15       15,970  

EPR Properties, 5.25%, 07/15/23 (Call 11/12/21)

    350       372,018  

Essex Portfolio LP, 3.25%, 05/01/23 (Call 02/01/23)

    15       15,476  

GEO Group Inc. (The), 5.13%, 04/01/23 (Call 11/29/21)(a)

    340       327,699  

Service Properties Trust, 4.50%, 06/15/23 (Call 12/15/22)(a)

    600       613,422  

Starwood Property Trust Inc., 5.50%, 11/01/23 (Call 08/01/23)(b) .

    425       446,088  
   

 

 

 
        2,231,702  
Retail — 3.1%  

Brinker International Inc., 3.88%, 05/15/23

    345       354,788  

Macy’s Retail Holdings LLC, 2.88%, 02/15/23 (Call 11/15/22)

    650       657,585  

QVC Inc., 4.38%, 03/15/23

    935       970,867  

Starbucks Corp., 3.85%, 10/01/23 (Call 07/01/23)

    100       105,294  

Yum! Brands Inc., 3.88%, 11/01/23 (Call 08/01/23)(a)

    480       503,112  
   

 

 

 
      2,591,646  
Semiconductors — 0.1%  

Microchip Technology Inc., 2.67%, 09/01/23

    40       41,252  
   

 

 

 

Software — 0.7%

 

Fiserv Inc., 3.80%, 10/01/23 (Call 09/01/23)

    45       47,484  

Oracle Corp.
2.40%, 09/15/23 (Call 07/15/23)

    355       364,787  

2.63%, 02/15/23 (Call 01/15/23)

    100       102,545  

VMware Inc., 0.60%, 08/15/23

    100       99,770  
   

 

 

 
      614,586  
Storage & Warehousing — 0.3%  

Modulaire Global Finance 2 PLC, 10.00%, 08/15/23 (Call 11/09/21)(b)

    275       281,936  
   

 

 

 

Telecommunications — 8.4%

 

DKT Finance ApS, 9.38%, 06/17/23
(Call 11/09/21)(b)

    415       422,171  
Security   Par/
Shares
(000)
    Value  
Telecommunications (continued)  

Ligado Networks LLC, 15.50%, 11/01/23, (15.50% PIK)(b)(c)

  $     2,400     $     1,967,885  

Lumen Technologies Inc., Series W, 6.75%, 12/01/23

    1,045       1,147,493  

Rogers Communications Inc., 4.10%, 10/01/23 (Call 07/01/23)

    200       210,808  

Sprint Corp., 7.88%, 09/15/23(a)

    2,174       2,413,401  

VEON Holdings BV, 7.25%, 04/26/23 (Call 01/26/23)(d)

    800       851,720  
   

 

 

 
      7,013,478  
Toys, Games & Hobbies — 0.4%  

Mattel Inc., 3.15%, 03/15/23 (Call 12/15/22)

    325       332,729  
   

 

 

 

Transportation — 0.8%

 

Altera Infrastructure LP/Teekay Offshore Finance Corp., 8.50%, 07/15/23 (Call 11/15/21)(b)

    625       471,656  

Ryder System Inc., 3.88%, 12/01/23 (Call 11/01/23)

    200       212,098  
   

 

 

 
      683,754  
   

 

 

 

Total Corporate Bonds & Notes — 96.8%
(Cost: $80,505,121)

        80,895,429  
   

 

 

 

Short-Term Investments

 

Money Market Funds — 14.0%  

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

    5,907       5,910,354  

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

    5,780       5,780,000  
   

 

 

 
      11,690,354  
   

 

 

 

Total Short-Term Investments — 14.0%
(Cost: $11,689,481)

      11,690,354  
   

 

 

 

Total Investments in Securities — 110.8%
(Cost: $92,194,602)

      92,585,783  

Other Assets, Less Liabilities — (10.8)%

      (9,039,319
   

 

 

 

Net Assets — 100.0%

    $ 83,546,464  
   

 

 

 

 

(a) 

All or a portion of this security is on loan.

(b) 

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

(c) 

Payment-in-kind security which may pay interest/dividends in additional par/shares and/or in cash. Rates shown are the current rate and possible payment rates.

(d) 

This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

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

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
10/31/20
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
(000)
    Income     Capital Gain
Distributions from
Underlying Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 1,632,308     $ 4,278,945 (a)    $     $ (804   $ (95   $ 5,910,354       5,907     $ 15,375 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    778,000       5,002,000 (a)                        5,780,000       5,780       110        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (804   $ (95   $ 11,690,354       $ 15,485     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

 

28  

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


Schedule of Investments  (continued)

October 31, 2021

  

iShares® iBonds® 2023 Term High Yield and Income ETF

 

Affiliates (continued)

 

(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.

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Corporate Bonds & Notes

   $      $ 80,895,429      $      $ 80,895,429  

Money Market Funds

     11,690,354                      11,690,354  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 11,690,354      $ 80,895,429      $         —      $ 92,585,783  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

  29


Schedule of Investments  

October 31, 2021

  

iShares® iBonds® 2024 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  

Corporate Bonds & Notes

 

Aerospace & Defense — 4.5%  

Bombardier Inc., 7.50%, 12/01/24 (Call 11/29/21)(a)

  $     695     $     723,467  

Howmet Aerospace Inc., 5.13%, 10/01/24 (Call 07/01/24)

    840       924,974  

Triumph Group Inc.
6.25%, 09/15/24 (Call 11/29/21)(a)(b)

    320       319,683  

8.88%, 06/01/24 (Call 02/01/23)(a)

    319       351,513  
   

 

 

 
      2,319,637  
Airlines — 1.4%  

Delta Air Lines Inc., 2.90%, 10/28/24 (Call 09/28/24)

    540       551,038  

United Airlines Holdings Inc., 5.00%, 02/01/24

    180       186,984  
   

 

 

 
      738,022  
Apparel — 1.6%  

Hanesbrands Inc., 4.63%, 05/15/24
(Call 02/15/24)(a)

    580       606,396  

Michael Kors USA Inc., 4.50%, 11/01/24 (Call 09/01/24)(a)

    205       217,031  
   

 

 

 
      823,427  
Auto Manufacturers — 3.2%  

Ford Motor Credit Co. LLC
3.66%, 09/08/24

    295       306,048  

3.81%, 01/09/24 (Call 11/09/23)(b)

    245       253,065  

4.06%, 11/01/24 (Call 10/01/24)

    495       519,735  

5.58%, 03/18/24 (Call 02/18/24)

    545       587,210  
   

 

 

 
      1,666,058  
Auto Parts & Equipment — 0.3%  

Cooper-Standard Automotive Inc., 13.00%, 06/01/24
(Call 06/01/22)(a)

    150       163,740  
   

 

 

 

Banks — 4.0%

 

CIT Group Inc., 4.75%, 02/16/24 (Call 11/16/23)

    360       383,425  

Freedom Mortgage Corp., 8.13%, 11/15/24 (Call 11/29/21)(a)

    250       252,538  

Intesa Sanpaolo SpA, 5.02%, 06/26/24(a)

    1,340       1,444,225  
   

 

 

 
      2,080,188  
Chemicals — 3.9%  

Cornerstone Chemical Co., 6.75%, 08/15/24 (Call 11/29/21)(a)

    230       206,887  

INEOS Group Holdings SA, 5.63%, 08/01/24 (Call 11/09/21)(a)

    280       280,294  

Methanex Corp., 4.25%, 12/01/24 (Call 09/01/24)

    210       222,583  

OCI NV, 5.25%, 11/01/24 (Call 11/01/21)(a)

    250       256,563  

Rayonier AM Products Inc., 5.50%, 06/01/24 (Call 11/29/21)(a)

    300       297,003  

TPC Group Inc., 10.50%, 08/01/24 (Call 11/29/21)(a)

    505       457,575  

WR Grace Holdings LLC, 5.63%, 10/01/24(a)

    255       273,590  
   

 

 

 
      1,994,495  
Coal — 0.4%  

Warrior Met Coal Inc., 8.00%, 11/01/24 (Call 11/29/21)(a)

    185       188,380  
   

 

 

 

Commercial Services — 1.4%

 

IHS Markit Ltd., 3.63%, 05/01/24 (Call 04/01/24)

    240       253,358  

Prime Security Services Borrower LLC/Prime Finance Inc.,
5.25%, 04/15/24(a)(b)

    460       489,399  
   

 

 

 
      742,757  
Computers — 2.2%  

Dell International LLC/EMC Corp., 7.13%, 06/15/24
(Call 11/02/21)(a)

    450       458,014  

Diebold Nixdorf Inc., 8.50%, 04/15/24
(Call 11/29/21)(b)

    240       240,389  

Flexential Intermediate Corp., 11.25%, 08/01/24 (Call 11/30/21)(a)

    125       132,500  

Seagate HDD Cayman, 4.88%, 03/01/24 (Call 01/01/24)

    300       320,067  
   

 

 

 
      1,150,970  
Distribution & Wholesale — 0.6%  

Wolverine Escrow LLC, 8.50%, 11/15/24 (Call 11/29/21)(a)(b)

    329       305,141  
   

 

 

 
Security       
Par
(000)
    Value  
Diversified Financial Services — 8.1%  

ASG Finance Designated Activity Co., 7.88%, 12/03/24 (Call 12/03/21)(a)

  $     200     $     196,046  

CNG Holdings Inc., 12.50%, 06/15/24
(Call 11/29/21)(a)

    85       81,022  

Enova International Inc., 8.50%, 09/01/24 (Call 11/29/21)(a)

    150       152,604  

Global Aircraft Leasing Co. Ltd., 6.50%, 09/15/24 (Call 11/29/21), (7.25% PIK)(a)(c)

    1,113       1,080,027  

goeasy Ltd., 5.38%, 12/01/24 (Call 12/01/21)(a)

    320       329,066  

Navient Corp.
5.88%, 10/25/24

    350       374,076  

6.13%, 03/25/24

    540       577,822  

OneMain Finance Corp., 6.13%, 03/15/24 (Call 09/15/23)

    930       989,139  

VistaJet Malta Finance PLC/XO Management Holding Inc., 10.50%, 06/01/24 (Call 06/01/22)(a)

    385       415,361  
   

 

 

 
      4,195,163  
Electric — 0.9%  

NextEra Energy Operating Partners LP
4.25%, 07/15/24 (Call 04/15/24)(a)

    415       439,091  

4.25%, 09/15/24 (Call 07/15/24)(a)

    5       5,306  
   

 

 

 
      444,397  
Electronics — 0.5%  

Sensata Technologies BV, 5.63%, 11/01/24(a)

    235       259,125  
   

 

 

 

Engineering & Construction — 0.5%

 

Fluor Corp., 3.50%, 12/15/24 (Call 09/15/24)(b)

    250       261,240  
   

 

 

 

Entertainment — 3.2%

 

Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp., 5.38%, 06/01/24
(Call 11/29/21)(b)

    270       272,368  

Jacobs Entertainment Inc., 7.88%, 02/01/24 (Call 11/29/21)(a)

    220       226,600  

Live Nation Entertainment Inc., 4.88%, 11/01/24 (Call 11/29/21)(a)

    345       349,054  

Mohegan Gaming & Entertainment, 7.88%, 10/15/24 (Call 11/15/21)(a)

    200       207,590  

Six Flags Entertainment Corp., 4.88%, 07/31/24 (Call 11/29/21)(a)

    600       607,284  
   

 

 

 
      1,662,896  
Environmental Control — 0.7%  

Stericycle Inc., 5.38%, 07/15/24 (Call 11/15/21)(a)

    360       370,307  
   

 

 

 

Food — 0.8%

 

Lamb Weston Holdings Inc., 4.63%, 11/01/24 (Call 11/18/21)(a)

    405       414,846  
   

 

 

 

Gas — 0.9%

 

AmeriGas Partners LP/AmeriGas Finance Corp., 5.63%, 05/20/24 (Call 03/20/24)

    405       437,947  
   

 

 

 
Health Care - Services — 1.8%  

Magellan Health Inc., 4.90%, 09/22/24 (Call 07/22/24)

    215       235,463  

Tenet Healthcare Corp.
4.63%, 07/15/24 (Call 11/29/21)

    245       248,234  

4.63%, 09/01/24 (Call 11/15/21)(a)

    425       434,822  
   

 

 

 
      918,519  
Holding Companies - Diversified — 2.9%  

Icahn Enterprises LP/Icahn Enterprises Finance Corp.
4.75%, 09/15/24 (Call 06/15/24)

    750       777,397  

6.75%, 02/01/24 (Call 11/29/21)

    250       253,198  

Stena AB, 7.00%, 02/01/24(a)(b)

    235       243,223  

Stena International SA, 5.75%, 03/01/24(a)

    225       232,641  
   

 

 

 
      1,506,459  
Home Builders — 1.3%  

Lennar Corp.
4.50%, 04/30/24 (Call 01/31/24)

    60       64,424  

 

 

30  

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


Schedule of Investments  (continued)

October 31, 2021

  

iShares® iBonds® 2024 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Home Builders (continued)  

5.88%, 11/15/24 (Call 05/15/24)

  $     35     $     39,011  

MDC Holdings Inc., 5.50%, 01/15/24 (Call 10/15/23)

    50       53,739  

Taylor Morrison Communities Inc./Taylor Morrison Holdings II Inc., 5.63%, 03/01/24
(Call 12/01/23)(a)(b)

    210       224,637  

TRI Pointe Group Inc./TRI Pointe Homes Inc., 5.88%, 06/15/24 .

    270       298,145  
   

 

 

 
      679,956  
Insurance — 1.1%  

Genworth Holdings Inc., 4.80%, 02/15/24

    230       235,136  

Radian Group Inc., 4.50%, 10/01/24
(Call 07/01/24)(b)

    315       334,048  
   

 

 

 
      569,184  
Internet — 0.6%  

Netflix Inc., 5.75%, 03/01/24

    280       308,339  
   

 

 

 

Iron & Steel — 0.6%

 

ArcelorMittal SA, 3.60%, 07/16/24

    115       121,299  

Infrabuild Australia Pty Ltd., 12.00%, 10/01/24 (Call 11/29/21)(a)(b)

    190       201,569  
   

 

 

 
      322,868  
Leisure Time — 1.6%  

NCL Corp. Ltd.
3.63%, 12/15/24 (Call 12/15/21)(a)(b)

    345       327,060  

12.25%, 05/15/24 (Call 02/15/24)(a)

    405       477,884  
   

 

 

 
      804,944  
Lodging — 3.6%  

Arrow Bidco LLC, 9.50%, 03/15/24 (Call 11/29/21)(a)

    195       198,910  

Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower Inc., 6.13%, 12/01/24 (Call 12/01/21)

    120       124,103  

MGM China Holdings Ltd., 5.38%, 05/15/24 (Call 11/09/21)(a)

    460       460,966  

Travel + Leisure Co., 5.65%, 04/01/24 (Call 02/01/24)

    195       211,359  

Universal Entertainment Corp., 8.50%, 12/11/24 (Call 12/11/23)(a)

    450       470,056  

Wynn Macau Ltd., 4.88%, 10/01/24 (Call 11/09/21)(a)

    400       379,432  
   

 

 

 
      1,844,826  
Machinery — 0.8%  

Maxim Crane Works Holdings Capital LLC, 10.13%, 08/01/24 (Call 11/29/21)(a)

    136       139,806  

Welbilt Inc., 9.50%, 02/15/24 (Call 11/29/21)(b)

    290       297,836  
   

 

 

 
      437,642  
Manufacturing — 1.1%  

FXI Holdings Inc., 7.88%, 11/01/24 (Call 11/29/21)(a)

    300       305,592  

Trinity Industries Inc., 4.55%, 10/01/24 (Call 07/01/24)

    265       280,950  
   

 

 

 
      586,542  
Media — 5.5%  

AMC Networks Inc., 5.00%, 04/01/24 (Call 11/29/21)

    233       235,684  

Cengage Learning Inc., 9.50%, 06/15/24 (Call 11/29/21)(a)(b)

    370       379,254  

CSC Holdings LLC, 5.25%, 06/01/24

    455       478,305  

DISH DBS Corp., 5.88%, 11/15/24

    1,280       1,365,875  

TEGNA Inc., 5.50%, 09/15/24 (Call 11/29/21)(a)(b)

    11       11,130  

Videotron Ltd., 5.38%, 06/15/24 (Call 03/15/24)(a)

    360       386,982  
   

 

 

 
        2,857,230  
Mining — 2.3%  

Compass Minerals International Inc., 4.88%, 07/15/24 (Call 05/15/24)(a)

    150       156,868  

FMG Resources August 2006 Pty Ltd., 5.13%, 05/15/24 (Call 02/15/24)(a)

    465       495,760  

Freeport-McMoRan Inc., 4.55%, 11/14/24 (Call 08/14/24)(b)

    480       518,789  
   

 

 

 
      1,171,417  
Security       
Par
(000)
    Value  
Office & Business Equipment — 1.2%  

CDW LLC/CDW Finance Corp., 5.50%, 12/01/24 (Call 06/01/24)

  $     230     $     251,995  

Pitney Bowes Inc., 4.63%, 03/15/24 (Call 12/15/23)

    160       168,624  

Xerox Corp., 3.80%, 05/15/24(b)

    190       197,756  
   

 

 

 
      618,375  
Oil & Gas — 8.1%  

Baytex Energy Corp., 5.63%, 06/01/24
(Call 11/29/21)(a)

    113       113,880  

Callon Petroleum Co., 6.13%, 10/01/24 (Call 11/29/21)

    276       271,366  

Continental Resources Inc./OK, 3.80%, 06/01/24 (Call 03/01/24)

    665       698,549  

Devon Energy Corp., 5.25%, 09/15/24
(Call 06/15/24)(a)

    70       76,832  

Ensign Drilling Inc., 9.25%, 04/15/24 (Call 11/29/21)(a)

    225       222,622  

Murphy Oil Corp., 6.88%, 08/15/24 (Call 11/29/21)(b)

    232       236,673  

Occidental Petroleum Corp.
2.90%, 08/15/24 (Call 07/15/24)

    980       998,110  

6.95%, 07/01/24

    350       394,009  

Ovintiv Exploration Inc., 5.63%, 07/01/24

    600       660,252  

PDC Energy Inc., 6.13%, 09/15/24 (Call 11/29/21)

    240       243,679  

Transocean Guardian Ltd., 5.88%, 01/15/24 (Call 11/29/21)(a)

    298       293,329  
   

 

 

 
      4,209,301  
Oil & Gas Services — 3.1%  

Oceaneering International Inc., 4.65%, 11/15/24 (Call 08/15/24) .

    300       311,814  

Transocean Phoenix 2 Ltd., 7.75%, 10/15/24 (Call 11/29/21)(a)

    202       205,598  

Transocean Proteus Ltd., 6.25%, 12/01/24 (Call 11/29/21)(a)

    206       208,302  

Weatherford International Ltd., 11.00%, 12/01/24 (Call 12/01/21)(a)

    837       872,572  
   

 

 

 
      1,598,286  
Packaging & Containers — 3.1%  

Graphic Packaging International LLC, 4.13%, 08/15/24 (Call 05/15/24)

    210       222,304  

Mauser Packaging Solutions Holding Co., 5.50%, 04/15/24 (Call 11/29/21)(a)

    885       885,912  

Sealed Air Corp., 5.13%, 12/01/24
(Call 09/01/24)(a)(b)

    270       290,976  

Trident TPI Holdings Inc., 9.25%, 08/01/24 (Call 11/09/21)(a)

    205       214,858  
   

 

 

 
      1,614,050  
Pharmaceuticals — 1.2%  

Endo Dac/Endo Finance LLC/Endo Finco Inc., 5.88%, 10/15/24 (Call 11/29/21)(a)

    170       165,078  

Perrigo Finance Unlimited Co., 3.90%, 12/15/24 (Call 09/15/24) .

    425       450,194  
   

 

 

 
      615,272  
Pipelines — 2.6%  

Buckeye Partners LP, 4.35%, 10/15/24 (Call 07/15/24)(b)

    230       240,911  

EnLink Midstream Partners LP, 4.40%, 04/01/24 (Call 01/01/24)(b)

    315       329,185  

EQM Midstream Partners LP, 4.00%, 08/01/24 (Call 05/01/24)(b).

    310       321,842  

Genesis Energy LP/Genesis Energy Finance Corp., 5.63%, 06/15/24 (Call 11/29/21)

    205       203,989  

Southeast Supply Header LLC, 4.25%, 06/15/24 (Call 03/15/24)(a)

    235       244,487