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  
   

 

 

 
        1,340,414  
Real Estate Investment Trusts — 5.3%  

Diversified Healthcare Trust, 4.75%, 05/01/24 (Call 11/01/23)(b)

    185       191,234  

iStar Inc., 4.75%, 10/01/24 (Call 07/01/24)

    465       491,724  

MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer Inc., 5.63%, 05/01/24 (Call 02/01/24)

    630       683,701  

SBA Communications Corp., 4.88%, 09/01/24 (Call 11/08/21)

    385       389,809  

Service Properties Trust
4.35%, 10/01/24 (Call 09/01/24)

    495       498,826  

4.65%, 03/15/24 (Call 09/15/23)

    210       211,993  

 

 

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

  31


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  
Real Estate Investment Trusts (continued)            

Uniti Group LP/Uniti Fiber Holdings Inc./CSL Capital LLC, 7.13%, 12/15/24 (Call 12/15/21)(a)

  $     265     $     271,718  
   

 

 

 
      2,739,005  
Retail — 3.9%            

Bed Bath & Beyond Inc., 3.75%, 08/01/24
(Call 05/01/24)(b)

    195       198,799  

Brinker International Inc., 5.00%, 10/01/24
(Call 07/01/24)(a)(b)

    225       238,333  

Golden Nugget Inc., 6.75%, 10/15/24
(Call 11/29/21)(a)

    670       672,465  

Macy’s Retail Holdings LLC, 3.63%, 06/01/24
(Call 03/01/24)(b)

    215       222,106  

Nordstrom Inc., 2.30%, 04/08/24 (Call 04/08/22)

    150       150,606  

QVC Inc., 4.85%, 04/01/24

    360       385,891  

TPro Acquisition Corp., 11.00%, 10/15/24
(Call 11/29/21)(a)

    145       157,872  
   

 

 

 
      2,026,072  
Software — 0.9%            

Blackboard Inc., 10.38%, 11/15/24
(Call 11/15/21)(a)(b)

    125       131,841  

CDK Global Inc., 5.00%, 10/15/24 (Call 07/15/24)

    300       332,667  
   

 

 

 
      464,508  
Telecommunications — 7.3%            

Cincinnati Bell Inc., 7.00%, 07/15/24
(Call 11/29/21)(a)

    375       381,371  

Lumen Technologies Inc., Series Y, 7.50%, 04/01/24

   

(Call 01/01/24)(b)

    650       715,702  

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

    1,485       1,677,753  

Telecom Italia SpA/Milano, 5.30%, 05/30/24(a)

    935       995,972  
   

 

 

 
      3,770,798  
   

 

 

 

Total Corporate Bonds & Notes — 99.0%
(Cost: $50,586,282)

      51,222,743  
   

 

 

 

Security       
Shares
(000)
    Value  
Short-Term Investments            
Money Market Funds — 9.2%            

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

    4,144     $     4,145,592  

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

    610       610,000  
   

 

 

 
      4,755,592  
   

 

 

 

Total Short-Term Investments — 9.2%
(Cost: $4,755,028)

 

    4,755,592  
   

 

 

 

Total Investments in Securities — 108.2%
(Cost: $55,341,310)

 

    55,978,335  

Other Assets, Less Liabilities — (8.2)%

 

    (4,250,906
   

 

 

 

Net Assets — 100.0%

 

  $ 51,727,429  
   

 

 

 

 

(a) 

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

(b) 

All or a portion of this security is on loan.

(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) 

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

  $ 939,588     $ 3,206,383 (a)    $     $ (337   $ (42   $ 4,145,592       4,144     $ 13,406 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    340,000       270,000 (a)                         610,000       610       102        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (337   $ (42   $ 4,755,592       $ 13,508     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

(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

   $        $ 51,222,743        $        $ 51,222,743  

Money Market Funds

     4,755,592                            4,755,592  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $   4,755,592        $ 51,222,743        $             —        $ 55,978,335  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

32  

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  

October 31, 2021

  

iShares® iBonds® 2025 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  

Corporate Bonds & Notes

   
Advertising — 0.4%            

Clear Channel International BV, 6.63%, 08/01/25
(Call 02/01/22)(a)

  $ 75     $ 78,045  

Outfront Media Capital LLC/Outfront Media Capital Corp., 6.25%, 06/15/25 (Call 06/15/22)(a)

    80       84,016  
   

 

 

 
      162,061  
Aerospace & Defense — 3.8%            

Bombardier Inc., 7.50%, 03/15/25 (Call 11/29/21)(a)(b)

    295       302,655  

Hexcel Corp., 4.95%, 08/15/25 (Call 05/15/25)

    60       65,853  

Howmet Aerospace Inc., 6.88%, 05/01/25 (Call 04/01/25)

    210       243,512  

Kratos Defense & Security Solutions Inc., 6.50%, 11/30/25 (Call 11/29/21)(a)

    60       62,058  

Rolls-Royce PLC, 3.63%, 10/14/25 (Call 07/14/25)(a)

    185       188,963  

Spirit AeroSystems Inc.

   

5.50%, 01/15/25 (Call 10/15/22)(a)

    95       99,259  

7.50%, 04/15/25 (Call 04/15/22)(a)

    215       227,010  

TransDigm Inc., 8.00%, 12/15/25 (Call 04/08/22)(a)

    210       223,362  

Triumph Group Inc., 7.75%, 08/15/25 (Call 11/29/21)(b)

    100       101,636  
   

 

 

 
      1,514,308  
Airlines — 2.3%            

American Airlines Group Inc., 3.75%, 03/01/25(a)(b)

    95       86,691  

American Airlines Inc., 11.75%, 07/15/25(a)

    470       582,231  

American Airlines Pass Through Trust, Series 2013-1, Class A, 4.00%, 07/15/25

    52       50,681  

Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., 8.00%, 09/20/25 (Call 09/20/23)(a)

    96       107,469  

U.S. Airways Pass Through Trust, Series 2013-1, Class A, 3.95%, 11/15/25

    41       41,630  

United Airlines Holdings Inc., 4.88%, 01/15/25(b)

    60       62,040  
   

 

 

 
      930,742  
Apparel — 0.6%            

Hanesbrands Inc., 5.38%, 05/15/25 (Call 05/15/22)(a)

    125       130,191  

William Carter Co. (The), 5.50%, 05/15/25
(Call 05/15/22)(a)

    95       99,406  
   

 

 

 
      229,597  
Auto Manufacturers — 3.9%            

Aston Martin Capital Holdings Ltd., 10.50%, 11/30/25 (Call 11/01/24)(a)

    225       246,940  

Ford Motor Co., 9.00%, 04/22/25 (Call 03/22/25)

    420       505,096  

Ford Motor Credit Co. LLC

   

3.38%, 11/13/25 (Call 10/13/25)

    220       226,072  

4.13%, 08/04/25

    155       163,734  

4.69%, 06/09/25 (Call 04/09/25)

    65       69,509  

5.13%, 06/16/25 (Call 05/16/25)

    200       217,220  

Jaguar Land Rover Automotive PLC, 7.75%, 10/15/25 (Call 10/15/22)(a)

    125       134,956  
   

 

 

 
      1,563,527  
Auto Parts & Equipment — 1.9%            

Adient U.S. LLC, 9.00%, 04/15/25 (Call 04/15/22)(a)

    110       117,878  

BorgWarner Inc., 5.00%, 10/01/25(a)

    40       45,183  

Clarios Global LP, 6.75%, 05/15/25 (Call 05/15/22)(a)

    90       94,781  

Dana Financing Luxembourg Sarl, 5.75%, 04/15/25 (Call 11/29/21)(a)

    60       61,787  

Goodyear Tire & Rubber Co. (The), 9.50%, 05/31/25 (Call 05/31/22)

    155       168,775  

Meritor Inc., 6.25%, 06/01/25 (Call 06/01/22)(a)

    70       73,414  

ZF North America Capital Inc., 4.75%, 04/29/25(a)

    175       189,114  
   

 

 

 
      750,932  
Banks — 1.3%            

CIT Group Inc., 5.25%, 03/07/25 (Call 12/07/24)

    105       115,566  

Deutsche Bank AG, 4.50%, 04/01/25

    290       310,900  
Security       
Par
(000)
    Value  
Banks (continued)            

Freedom Mortgage Corp., 8.25%, 04/15/25
(Call 11/29/21)(a)

  $ 98     $ 99,228  
   

 

 

 
      525,694  
Building Materials — 0.9%            

Forterra Finance LLC/FRTA Finance Corp., 6.50%, 07/15/25 (Call 07/15/22)(a)

    95       101,218  

Jeld-Wen Inc.

   

4.63%, 12/15/25 (Call 11/29/21)(a)

    75       75,866  

6.25%, 05/15/25 (Call 05/15/22)(a)(b)

    70       73,799  

Koppers Inc., 6.00%, 02/15/25 (Call 11/29/21)(a)

    95       97,267  
   

 

 

 
      348,150  
Chemicals — 1.5%            

Kraton Polymers LLC/Kraton Polymers Capital Corp., 4.25%, 12/15/25 (Call 12/15/22)(a)(b)

    75       77,494  

OCI NV, 4.63%, 10/15/25 (Call 10/15/22)(a)

    65       67,616  

Olin Corp., 9.50%, 06/01/25 (Call 03/01/25)(a)

    85       104,785  

Rain CII Carbon LLC/CII Carbon Corp., 7.25%, 04/01/25 (Call 11/29/21)(a)

    90       91,877  

Trinseo Materials Operating SCA/Trinseo Materials Finance Inc., 5.38%, 09/01/25 (Call 11/29/21)(a)(b)

    80       81,502  

Tronox Inc., 6.50%, 05/01/25 (Call 05/01/22)(a)

    100       105,032  

Venator Finance Sarl/Venator Materials LLC, 5.75%, 07/15/25 (Call 11/29/21)(a)(b)

    75       70,091  
   

 

 

 
      598,397  
Coal — 0.1%            

Natural Resource Partners LP/NRP Finance Corp., 9.13%, 06/30/25 (Call 11/29/21)(a)

    40       40,203  
   

 

 

 
Commercial Services — 2.7%            

Aptim Corp., 7.75%, 06/15/25 (Call 11/15/21)(a)

    75       60,792  

Brink’s Co. (The), 5.50%, 07/15/25 (Call 07/15/22)(a)

    65       68,197  

IHS Markit Ltd., 4.75%, 02/15/25 (Call 11/15/24)(a)

    200       219,280  

Jaguar Holding Co. II/PPD Development LP, 4.63%, 06/15/25 (Call 06/15/22)(a)

    95       98,913  

Nielsen Co Luxembourg SARL (The), 5.00%, 02/01/25 (Call 11/29/21)(a)(b)

    90       91,706  

Ritchie Bros. Auctioneers Inc., 5.38%, 01/15/25
(Call 11/29/21)(a)

    70       71,400  

Sabre GLBL Inc.

   

7.38%, 09/01/25 (Call 09/01/22)(a)

    175       186,328  

9.25%, 04/15/25 (Call 03/16/25)(a)

    145       167,562  

Team Health Holdings Inc., 6.38%, 02/01/25
(Call 11/15/21)(a)(b) .

    135       120,471  
   

 

 

 
      1,084,649  
Computers — 0.8%            

Diebold Nixdorf Inc., 9.38%, 07/15/25 (Call 07/15/22)(a)

    130       139,988  

Seagate HDD Cayman, 4.75%, 01/01/25(b)

    95       102,640  

Tempo Acquisition LLC/Tempo Acquisition Finance Corp., 5.75%, 06/01/25 (Call 06/01/22)(a)

    70       73,281  
   

 

 

 
      315,909  
Distribution & Wholesale — 1.0%            

Avient Corp., 5.75%, 05/15/25 (Call 05/15/22)(a)

    115       120,576  

G-III Apparel Group Ltd., 7.88%, 08/15/25
(Call 08/15/22)(a)

    80       85,303  

KAR Auction Services Inc., 5.13%, 06/01/25
(Call 11/29/21)(a)

    180       180,846  
   

 

 

 
      386,725  
Diversified Financial Services — 4.6%            

Ally Financial Inc., 5.75%, 11/20/25 (Call 10/21/25)

    200       226,876  

Enact Holdings Inc., 6.50%, 08/15/25 (Call 02/15/25)(a)

    135       148,388  

Enova International Inc., 8.50%, 09/15/25
(Call 11/29/21)(a)

    75       77,223  

Finance of America Funding LLC, 7.88%, 11/15/25 (Call 11/15/22)(a)(b)

    70       67,637  

LD Holdings Group LLC, 6.50%, 11/01/25
(Call 11/01/22)(a)

    95       93,127  

Navient Corp., 6.75%, 06/25/25(b)

    90       99,000  

 

 

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

  33


Schedule of Investments  (continued)

October 31, 2021

  

iShares® iBonds® 2025 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Diversified Financial Services (continued)  

OneMain Finance Corp.
6.88%, 03/15/25

  $ 235     $ 262,746  

8.88%, 06/01/25 (Call 06/01/22)

    265       286,616  

PennyMac Financial Services Inc., 5.38%, 10/15/25 (Call 10/15/22)(a)

    125       128,936  

PRA Group Inc., 7.38%, 09/01/25 (Call 09/01/22)(a)(b)

    55       58,786  

Provident Funding Associates LP/PFG Finance Corp., 6.38%, 06/15/25 (Call 11/29/21)(a)

    65       65,371  

SLM Corp., 4.20%, 10/29/25 (Call 09/29/25)

    90       95,173  

StoneX Group Inc., 8.63%, 06/15/25 (Call 06/15/22)(a)

    60       63,832  

United Wholesale Mortgage LLC, 5.50%, 11/15/25 (Call 11/15/22)(a)

    150       149,369  
   

 

 

 
      1,823,080  
Electric — 1.0%  

DPL Inc., 4.13%, 07/01/25 (Call 04/01/25)

    80       84,770  

Drax Finco PLC, 6.63%, 11/01/25 (Call 11/09/21)(a)

    85       87,800  

FirstEnergy Corp., 2.05%, 03/01/25 (Call 02/01/25)

    65       65,422  

FirstEnergy Transmission LLC, 4.35%, 01/15/25 (Call 10/15/24)(a)

    110       119,144  

Midland Cogeneration Venture LP, 6.00%, 03/15/25(a)(b)

    12       12,148  

NSG Holdings LLC/NSG Holdings Inc.,
7.75%, 12/15/25(a)

    12       13,436  
   

 

 

 
      382,720  
Electrical Components & Equipment — 0.7%  

WESCO Distribution Inc., 7.13%, 06/15/25 (Call 06/15/22)(a)

    260       276,601  
   

 

 

 

Electronics — 0.6%

 

Brightstar Escrow Corp., 9.75%, 10/15/25 (Call 10/15/22)(a)

    70       75,065  

Sensata Technologies BV, 5.00%, 10/01/25(a)

    140       153,335  
   

 

 

 
      228,400  
Engineering & Construction — 1.2%  

Artera Services LLC, 9.03%, 12/04/25 (Call 02/04/23)(a)

    185       199,130  

Brand Industrial Services Inc., 8.50%, 07/15/25 (Call 11/29/21)(a)(b)

    180       180,014  

Tutor Perini Corp., 6.88%, 05/01/25 (Call 11/15/21)(a)(b)

    110       112,141  
   

 

 

 
      491,285  
Entertainment — 5.8%  

AMC Entertainment Holdings Inc., 10.50%, 04/15/25 (Call 04/15/22)(a)

    95       101,940  

Banijay Entertainment SASU, 5.38%, 03/01/25 (Call 03/01/22)(a)

    70       72,050  

Caesars Entertainment Inc., 6.25%, 07/01/25 (Call 07/01/22)(a)

    640       673,670  

Caesars Resort Collection LLC/CRC Finco Inc., 5.75%, 07/01/25 (Call 07/01/22)(a)

    195       204,857  

Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op, 5.50%, 05/01/25 (Call 05/01/22)(a)

    185       192,398  

Cinemark USA Inc., 8.75%, 05/01/25 (Call 05/01/22)(a)

    60       64,354  

International Game Technology PLC, 6.50%, 02/15/25 (Call 08/15/24)(a)

    205       227,817  

Powdr Corp., 6.00%, 08/01/25 (Call 08/01/22)(a)

    50       52,300  

Scientific Games International Inc.
5.00%, 10/15/25 (Call 11/29/21)(a)

    205       211,203  

8.63%, 07/01/25 (Call 07/01/22)(a)

    100       108,089  

Six Flags Theme Parks Inc., 7.00%, 07/01/25 (Call 07/01/22)(a)

    140       148,893  

Vail Resorts Inc., 6.25%, 05/15/25 (Call 05/15/22)(a)(b)

    110       115,922  

Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 7.75%, 04/15/25 (Call 04/15/22)(a)

    120       126,433  
   

 

 

 
      2,299,926  
Environmental Control — 0.9%  

Covanta Holding Corp., 5.88%, 07/01/25 (Call 11/29/21)

    45       46,462  

GFL Environmental Inc.
3.75%, 08/01/25 (Call 08/01/22)(a)

    140       143,948  
Security       
Par
(000)
    Value  
Environmental Control (continued)  

4.25%, 06/01/25 (Call 06/01/22)(a)

  $ 105     $ 108,273  

Tervita Corp., 11.00%, 12/01/25 (Call 12/01/23)(a)

    56       64,281  
   

 

 

 
      362,964  
Food — 1.6%  

Albertsons Companies Inc./Safeway Inc./New Albertsons LP/Albertsons LLC, 5.75%, 03/15/25 (Call 11/01/21)

    13       13,187  

B&G Foods Inc., 5.25%, 04/01/25 (Call 11/29/21)

    175       179,100  

Chobani LLC/Chobani Finance Corp. Inc., 7.50%, 04/15/25 (Call 11/29/21)(a)

    75       77,957  

Del Monte Foods Inc., 11.88%, 05/15/25
(Call 05/15/22)(a)

    90       101,048  

Performance Food Group Inc., 6.88%, 05/01/25 (Call 05/01/22)(a)

    65       68,601  

U.S. Foods Inc., 6.25%, 04/15/25 (Call 04/15/22)(a)

    195       204,666  
   

 

 

 
      644,559  
Food Service — 1.2%  

Aramark Services Inc.
5.00%, 04/01/25 (Call 11/29/21)(a)(b)

    100       102,343  

6.38%, 05/01/25 (Call 05/01/22)(a)

    355       373,677  
   

 

 

 
      476,020  
Forest Products & Paper — 0.1%  

Clearwater Paper Corp., 5.38%, 02/01/25(a)

    50       54,096  
   

 

 

 

Gas — 0.4%

 

AmeriGas Partners LP/AmeriGas Finance Corp., 5.50%, 05/20/25 (Call 02/20/25)

    135       146,543  
   

 

 

 

Hand & Machine Tools — 0.1%

 

Werner FinCo LP/Werner FinCo Inc., 8.75%, 07/15/25 (Call 11/09/21)(a)

    40       41,722  
   

 

 

 

Health Care - Products — 0.0%

 

Ortho-Clinical Diagnostics Inc./Ortho-Clinical Diagnostics SA, 7.38%, 06/01/25 (Call 06/01/22)(a)

    18       18,901  
   

 

 

 

Health Care - Services — 5.1%

 

Air Methods Corp., 8.00%, 05/15/25 (Call 11/29/21)(a)

    90       69,064  

Akumin Inc., 7.00%, 11/01/25 (Call 11/01/22)(a)(b)

    90       86,001  

CHS/Community Health Systems Inc., 6.63%, 02/15/25 (Call 02/15/22)(a)

    267       278,705  

Encompass Health Corp., 5.75%, 09/15/25 (Call 11/29/21)

    65       66,588  

Global Medical Response Inc., 6.50%, 10/01/25 (Call 11/03/21)(a)

    105       104,219  

HCA Inc.
5.38%, 02/01/25

    535       595,139  

7.69%, 06/15/25

    50       60,143  

Legacy LifePoint Health LLC, 6.75%, 04/15/25 (Call 04/15/22)(a)(b)

    110       115,501  

ModivCare Inc., 5.88%, 11/15/25 (Call 11/15/22)(a)

    90       94,568  

Prime Healthcare Services Inc., 7.25%, 11/01/25 (Call 11/01/22)(a)

    170       181,382  

RP Escrow Issuer LLC, 5.25%, 12/15/25
(Call 12/15/22)(a)

    150       150,099  

Surgery Center Holdings Inc., 6.75%, 07/01/25 (Call 11/29/21)(a)(b)

    65       66,344  

Tenet Healthcare Corp., 7.50%, 04/01/25
(Call 04/01/22)(a)

    135       143,247  
   

 

 

 
      2,011,000  
Holding Companies - Diversified — 0.7%  

Icahn Enterprises LP/Icahn Enterprises Finance Corp., 6.38%, 12/15/25 (Call 11/29/21)

    230       234,761  

Stena International SA, 6.13%, 02/01/25
(Call 02/01/22)(a)

    60       61,784  
   

 

 

 
      296,545  

 

 

34  

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® 2025 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Home Builders — 0.9%  

Empire Communities Corp., 7.00%, 12/15/25 (Call 12/15/22)(a)

  $ 75     $ 78,040  

Meritage Homes Corp., 6.00%, 06/01/25 (Call 03/01/25)

    65       72,814  

New Home Co. Inc. (The), 7.25%, 10/15/25 (Call 10/15/22)(a)

    55       56,818  

Picasso Finance Sub Inc., 6.13%, 06/15/25 (Call 06/15/22)(a)

    98       103,210  

Toll Brothers Finance Corp., 4.88%, 11/15/25 (Call 08/15/25)

    60       66,387  
   

 

 

 
      377,269  
Household Products & Wares — 0.1%  

Spectrum Brands Inc., 5.75%, 07/15/25 (Call 11/29/21)

    50       51,272  
   

 

 

 

Housewares — 0.8%

 

American Greetings Corp., 8.75%, 04/15/25 (Call 11/29/21)(a)

    50       52,051  

CD&R Smokey Buyer Inc., 6.75%, 07/15/25 (Call 07/15/22)(a)

    135       142,987  

Newell Brands Inc., 4.88%, 06/01/25 (Call 05/01/25)

    95       104,015  
   

 

 

 
      299,053  
Insurance — 1.4%  

Acrisure LLC/Acrisure Finance Inc., 7.00%, 11/15/25 (Call 11/29/21)(a)

    170       171,945  

AssuredPartners Inc., 7.00%, 08/15/25 (Call 11/29/21)(a)

    90       91,222  

NMI Holdings Inc., 7.38%, 06/01/25 (Call 03/30/25)(a)

    65       74,724  

Radian Group Inc., 6.63%, 03/15/25 (Call 09/15/24)

    100       111,679  

USI Inc./NY, 6.88%, 05/01/25 (Call 11/29/21)(a)

    105       106,474  
   

 

 

 
      556,044  
Internet — 2.1%  

Netflix Inc.
3.63%, 06/15/25 (Call 03/15/25)(a)

    185       196,742  

5.88%, 02/15/25

    135       152,959  

NortonLifeLock Inc., 5.00%, 04/15/25 (Call 11/09/21)(a)

    125       126,659  

TripAdvisor Inc., 7.00%, 07/15/25 (Call 07/15/22)(a)

    95       100,766  

Uber Technologies Inc., 7.50%, 05/15/25
(Call 05/15/22)(a)

    185       197,149  

VeriSign Inc., 5.25%, 04/01/25 (Call 01/01/25)

    40       44,659  
   

 

 

 
      818,934  
Iron & Steel — 0.5%  

Cleveland-Cliffs Inc., 9.88%, 10/17/25 (Call 10/17/22)(a)

    186       212,866  
   

 

 

 

Leisure Time — 1.4%

 

Constellation Merger Sub Inc., 8.50%, 09/15/25 (Call 11/29/21)(a)

    85       81,645  

Royal Caribbean Cruises Ltd., 11.50%, 06/01/25 (Call 06/01/22)(a)

    261       297,130  

Viking Cruises Ltd.
6.25%, 05/15/25 (Call 11/29/21)(a)(b)

    50       49,892  

13.00%, 05/15/25 (Call 05/15/22)(a)

    125       143,312  
   

 

 

 
      571,979  
Lodging — 3.7%  

Boyd Gaming Corp., 8.63%, 06/01/25 (Call 06/01/22)(a)

    110       118,975  

Hilton Domestic Operating Co. Inc., 5.38%, 05/01/25 (Call 05/01/22)(a)

    90       93,909  

Marriott Ownership Resorts Inc., 6.13%, 09/15/25 (Call 05/15/22)(a)

    48       50,414  

Melco Resorts Finance Ltd., 4.88%, 06/06/25 (Call 11/29/21)(b)(c)

    125       123,495  

MGM China Holdings Ltd., 5.25%, 06/18/25 (Call 06/18/22)(a)

    50       49,365  

MGM Resorts International
5.75%, 06/15/25 (Call 03/15/25)

    175       189,733  

6.75%, 05/01/25 (Call 05/01/22)

    155       163,497  

Studio City Finance Ltd., 6.00%, 07/15/25
(Call 07/15/22)(a)

    200       195,244  

Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp., 5.88%, 05/15/25 (Call 11/29/21)(a)

    55       54,559  

Travel + Leisure Co., 6.60%, 10/01/25 (Call 07/01/25)

    60       66,986  
Security       
Par
(000)
    Value  
Lodging (continued)  

Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.50%, 03/01/25 (Call 12/01/24)(a)

  $ 350     $ 356,080  
   

 

 

 
      1,462,257  
Machinery — 0.3%  

Clark Equipment Co., 5.88%, 06/01/25
(Call 06/01/22)(a)(b)

    25       26,099  

Husky III Holding Ltd. , 13.00%, 02/15/25 (Call 11/29/21), (13.75% PIK)(a)(d)

    90       95,412  
   

 

 

 
      121,511  
Manufacturing — 0.2%  

Hillenbrand Inc., 5.75%, 06/15/25 (Call 06/15/22)

    80       84,186  
   

 

 

 

Media — 1.6%

 

AMC Networks Inc., 4.75%, 08/01/25 (Call 11/29/21)(b)

    140       143,475  

Houghton Mifflin Harcourt Publishers Inc., 9.00%, 02/15/25 (Call 02/15/22)(a)

    55       58,312  

Meredith Corp., 6.50%, 07/01/25 (Call 12/01/21)

    70       74,680  

Univision Communications Inc.
5.13%, 02/15/25 (Call 11/09/21)(a)

    205       208,671  

9.50%, 05/01/25 (Call 05/01/22)(a)

    130       141,227  
   

 

 

 
      626,365  
Mining — 0.5%  

Arconic Corp., 6.00%, 05/15/25 (Call 05/15/22)(a)

    170       178,507  

New Gold Inc., 6.38%, 05/15/25 (Call 11/29/21)(a)

    8       8,220  
   

 

 

 
      186,727  
Office & Business Equipment — 0.6%  

CDW LLC/CDW Finance Corp., 4.13%, 05/01/25 (Call 05/01/22)

    85       87,642  

Xerox Holdings Corp., 5.00%, 08/15/25 (Call 07/15/25)(a)

    130       134,954  
   

 

 

 
      222,596  
Oil & Gas — 8.3%  

Antero Resources Corp., 5.00%, 03/01/25
(Call 11/29/21)(b)

    110       111,972  

Apache Corp., 4.63%, 11/15/25 (Call 08/15/25)

    90       96,926  

Calumet Specialty Products Partners LP/Calumet Finance Corp., 11.00%, 04/15/25 (Call 11/29/21)(a)

    100       108,639  

Cenovus Energy Inc., 5.38%, 07/15/25 (Call 04/15/25)

    70       78,649  

Comstock Resources Inc., 7.50%, 05/15/25 (Call 11/29/21)(a)

    19       19,694  

CrownRock LP/CrownRock Finance Inc., 5.63%, 10/15/25 (Call 11/29/21)(a)(b)

    225       230,243  

CVR Energy Inc., 5.25%, 02/15/25 (Call 02/15/22)(a)

    105       103,791  

Endeavor Energy Resources LP/EER Finance Inc., 6.63%, 07/15/25 (Call 07/15/22)(a)(b)

    120       126,550  

EQT Corp., 6.63%, 02/01/25 (Call 01/01/25)

    190       213,796  

Hilcorp Energy I LP/Hilcorp Finance Co., 5.75%, 10/01/25 (Call 11/15/21)(a)

    50       51,025  

Laredo Petroleum Inc., 9.50%, 01/15/25 (Call 01/15/22)

    120       123,408  

MEG Energy Corp., 6.50%, 01/15/25 (Call 11/29/21)(a)

    73       74,756  

Murphy Oil Corp., 5.75%, 08/15/25 (Call 11/29/21)(b)

    130       133,424  

Nabors Industries Inc., 5.75%, 02/01/25 (Call 11/01/24)

    115       109,322  

Neptune Energy Bondco PLC, 6.63%, 05/15/25 (Call 11/29/21)(a)

    150       153,218  

Occidental Petroleum Corp.
3.50%, 06/15/25 (Call 03/15/25)

    110       113,620  

5.50%, 12/01/25 (Call 09/01/25)

    130       142,930  

5.88%, 09/01/25 (Call 06/01/25)

    215       238,650  

8.00%, 07/15/25 (Call 04/15/25)

    80       94,634  

Par Petroleum LLC/Par Petroleum Finance Corp., 7.75%, 12/15/25 (Call 11/29/21)(a)

    55       55,356  

PBF Holding Co. LLC/PBF Finance Corp.
7.25%, 06/15/25 (Call 11/29/21)

    150       117,479  

9.25%, 05/15/25 (Call 05/15/22)(a)

    220       213,468  

Range Resources Corp., 4.88%, 05/15/25 (Call 02/15/25)

    145       151,540  

 

 

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

  35


Schedule of Investments  (continued)

October 31, 2021

  

iShares® iBonds® 2025 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Oil & Gas (continued)  

SM Energy Co.
5.63%, 06/01/25 (Call 11/29/21)

  $ 60     $ 60,179  

10.00%, 01/15/25 (Call 06/17/22)(a)

    90       100,125  

Southwestern Energy Co., 6.45%, 01/23/25 (Call 10/23/24)

    145       158,012  

Transocean Pontus Ltd., 6.13%, 08/01/25 (Call 11/29/21)(a)(b)

    77       77,178  

Vermilion Energy Inc., 5.63%, 03/15/25
(Call 11/29/21)(a)(b)

    55       55,345  
   

 

 

 
      3,313,929  
Oil & Gas Services — 0.5%  

CSI Compressco LP/CSI Compressco Finance Inc., 7.50%, 04/01/25 (Call 11/29/21)(a)

    70       69,307  

Exterran Energy Solutions LP/EES Finance Corp., 8.13%, 05/01/25 (Call 11/29/21)

    60       58,131  

KCA Deutag UK Finance PLC, 9.88%, 12/01/25 (Call 12/01/22)(a)

    75       81,685  
   

 

 

 
      209,123  
Packaging & Containers — 3.3%  

Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc., 5.25%, 04/30/25 (Call 04/30/22)(a)

    125       129,694  

Ball Corp., 5.25%, 07/01/25

    260       289,923  

Flex Acquisition Co. Inc., 6.88%, 01/15/25 (Call 11/29/21)(a)(b)

    110       110,933  

Matthews International Corp., 5.25%, 12/01/25 (Call 11/29/21)(a)(b)

    55       56,525  

Mauser Packaging Solutions Holding Co., 7.25%, 04/15/25 (Call 11/29/21)(a)(b)

    265       256,769  

Owens-Brockway Glass Container Inc. 5.38%, 01/15/25(a)

    60       63,583  

6.38%, 08/15/25(a)(b)

    50       54,879  

Pactiv LLC, 7.95%, 12/15/25

    75       83,590  

Plastipak Holdings Inc., 6.25%, 10/15/25
(Call 11/29/21)(a)

    95       96,724  

Sealed Air Corp., 5.50%, 09/15/25 (Call 06/15/25)(a)

    75       82,851  

Silgan Holdings Inc., 4.75%, 03/15/25 (Call 11/29/21)

    60       60,799  

Trident TPI Holdings Inc., 6.63%, 11/01/25 (Call 11/09/21)(a)

    45       45,697  
   

 

 

 
      1,331,967  
Pharmaceuticals — 3.8%  

Bausch Health Companies Inc.
5.50%, 11/01/25 (Call 11/29/21)(a)(b)

    300       305,136  

6.13%, 04/15/25 (Call 11/29/21)(a)

    473       482,096  

9.00%, 12/15/25 (Call 12/15/21)(a)

    495       519,493  

Herbalife Nutrition Ltd./HLF Financing Inc., 7.88%, 09/01/25 (Call 09/01/22)(a)

    115       123,497  

P&L Development LLC/PLD Finance Corp., 7.75%, 11/15/25 (Call 11/15/22)(a)

    85       87,324  
   

 

 

 
      1,517,546  
Pipelines — 5.0%  

Blue Racer Midstream LLC/Blue Racer Finance Corp., 7.63%, 12/15/25 (Call 12/15/22)(a)

    110       118,246  

Buckeye Partners LP, 4.13%, 03/01/25
(Call 02/01/25)(a)

    90       92,463  

Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp., 5.75%, 04/01/25 (Call 11/29/21)

    95       97,416  

DCP Midstream Operating LP, 5.38%, 07/15/25 (Call 04/15/25)

    205       227,203  

EnLink Midstream Partners LP, 4.15%, 06/01/25 (Call 03/01/25) .

    140       145,334  

EQM Midstream Partners LP, 6.00%, 07/01/25 (Call 04/01/25)(a).

    130       141,599  

Genesis Energy LP/Genesis Energy Finance Corp., 6.50%, 10/01/25 (Call 11/29/21)(b)

    95       93,594  

Martin Midstream Partners LP/Martin Midstream Finance Corp., 11.50%, 02/28/25 (Call 08/12/22)(a)

    50       52,041  

New Fortress Energy Inc., 6.75%, 09/15/25 (Call 09/15/22)(a)

    235       228,993  

NGL Energy Partners LP/NGL Energy Finance Corp., 6.13%, 03/01/25 (Call 11/29/21)

    75       64,591  

NuStar Logistics LP, 5.75%, 10/01/25 (Call 07/01/25)

    115       123,132  

Rattler Midstream LP, 5.63%, 07/15/25
(Call 07/15/22)(a)

    95       99,349  
Security       
Par
(000)
    Value  
Pipelines (continued)  

Rockies Express Pipeline LLC, 3.60%, 05/15/25 (Call 04/15/25)(a)

  $ 75     $ 78,108  

Summit Midstream Holdings LLC/Summit Midstream Finance Corp., 5.75%, 04/15/25 (Call 11/29/21)(b)

    50       44,601  

Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., 7.50%, 10/01/25 (Call 10/01/22)(a)

    110       118,952  

Western Midstream Operating LP
3.95%, 06/01/25 (Call 03/01/25)

    80       84,293  

4.35%, 02/01/25 (Call 01/01/25)

    160       167,946  
   

 

 

 
      1,977,861  
Real Estate — 0.9%  

Five Point Operating Co. LP/Five Point Capital Corp., 7.88%, 11/15/25 (Call 11/29/21)(a)

    110       114,620  

Greystar Real Estate Partners LLC, 5.75%, 12/01/25 (Call 11/29/21)(a)

    95       96,646  

Realogy Group LLC/Realogy Co-Issuer Corp., 7.63%, 06/15/25 (Call 06/15/22)(a)

    100       106,854  

WeWork Companies Inc., 7.88%, 05/01/25(a)

    50       50,685  
   

 

 

 
      368,805  
Real Estate Investment Trusts — 4.6%  

Diversified Healthcare Trust, 9.75%, 06/15/25 (Call 06/15/22)

    185       200,960  

HAT Holdings I LLC/HAT Holdings II LLC, 6.00%, 04/15/25 (Call 04/15/22)(a)

    80       83,330  

iStar Inc., 4.25%, 08/01/25 (Call 05/01/25)

    105       108,018  

Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 5.25%, 10/01/25 (Call 11/15/21)(a)(b)

    65       65,835  

MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer Inc., 4.63%, 06/15/25 (Call 03/15/25)(a)

    145       156,072  

New Residential Investment Corp., 6.25%, 10/15/25 (Call 10/15/22)(a)

    105       105,257  

Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer, 7.50%, 06/01/25 (Call 06/01/22)(a)(b)

    45       47,802  

Service Properties Trust
4.50%, 03/15/25 (Call 09/15/24)

    75       75,023  

7.50%, 09/15/25 (Call 06/15/25)

    150       165,895  

Starwood Property Trust Inc., 4.75%, 03/15/25 (Call 09/15/24)(b).

    95       99,835  

Uniti Group LP/Uniti Fiber Holdings Inc./CSL Capital LLC, 7.88%, 02/15/25 (Call 02/15/22)(a)

    435       457,955  

VICI Properties LP/VICI Note Co. Inc., 3.50%, 02/15/25 (Call 02/15/22)(a)

    140       142,646  

XHR LP, 6.38%, 08/15/25 (Call 08/15/22)(a)

    100       105,494  
   

 

 

 
      1,814,122  
Retail — 3.8%  

1011778 BC ULC/New Red Finance Inc., 5.75%, 04/15/25 (Call 04/15/22)(a)

    95       99,064  

Abercrombie & Fitch Management Co., 8.75%, 07/15/25 (Call 07/15/22)(a)

    75       81,038  

Bath & Body Works Inc., 9.38%, 07/01/25(a)

    90       112,019  

Carvana Co., 5.63%, 10/01/25 (Call 10/01/22)(a)

    95       97,102  

Dave & Buster’s Inc., 7.63%, 11/01/25 (Call 11/01/22)(a)

    86       92,318  

eG Global Finance PLC
6.75%, 02/07/25 (Call 11/09/21)(a)

    130       133,159  

8.50%, 10/30/25 (Call 11/29/21)(a)

    100       104,178  

Golden Nugget Inc., 8.75%, 10/01/25 (Call 11/29/21)(a)(b)

    40       41,365  

IRB Holding Corp., 7.00%, 06/15/25 (Call 06/15/22)(a)

    145       153,607  

Penske Automotive Group Inc., 3.50%, 09/01/25 (Call 09/01/22)(b)

    105       107,820  

QVC Inc., 4.45%, 02/15/25 (Call 11/15/24)

    115       123,192  

Rite Aid Corp., 7.50%, 07/01/25 (Call 07/01/22)(a)

    115       115,574  

Sally Holdings LLC/Sally Capital Inc.
5.63%, 12/01/25 (Call 11/29/21)(b)

    50       51,084  

8.75%, 04/30/25 (Call 04/30/22)(a)

    25       26,845  

 

 

36  

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® 2025 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Retail (continued)  

Sizzling Platter LLC/Sizzling Platter Finance Corp., 8.50%, 11/28/25 (Call 11/28/22)(a)

  $ 60     $ 60,803  

Yum! Brands Inc., 7.75%, 04/01/25 (Call 04/01/22)(a)

    120       127,644  
   

 

 

 
      1,526,812  
Semiconductors — 0.8%  

ams AG, 7.00%, 07/31/25 (Call 07/31/22)(a)(b)

    75       79,555  

Microchip Technology Inc., 4.25%, 09/01/25 (Call 09/01/22)

    215       223,552  
   

 

 

 
      303,107  
Software — 2.3%  

Ascend Learning LLC, 6.88%, 08/01/25
(Call 11/29/21)(a)

    100       101,772  

Boxer Parent Co. Inc., 7.13%, 10/02/25
(Call 06/01/22)(a)

    135       143,226  

Change Healthcare Holdings LLC/Change Healthcare Finance Inc., 5.75%, 03/01/25 (Call 11/09/21)(a)

    245       247,119  

PTC Inc., 3.63%, 02/15/25 (Call 02/15/22)(a)

    95       96,602  

Veritas U.S. Inc./Veritas Bermuda Ltd., 7.50%, 09/01/25 (Call 11/29/21)(a)

    320       331,683  
   

 

 

 
      920,402  
Telecommunications — 3.9%  

Cincinnati Bell Inc., 8.00%, 10/15/25 (Call 11/29/21)(a)

    55       57,362  

CommScope Technologies LLC, 6.00%, 06/15/25 (Call 11/09/21)(a)

    298       294,832  

Intrado Corp., 8.50%, 10/15/25 (Call 11/29/21)(a)(b)

    130       128,250  

Level 3 Financing Inc., 5.38%, 05/01/25 (Call 11/29/21)

    55       56,247  

Lumen Technologies Inc., 5.63%, 04/01/25 (Call 01/01/25)

    130       139,807  

Qwest Corp., 7.25%, 09/15/25

    70       83,389  

Sprint Corp., 7.63%, 02/15/25 (Call 11/15/24)

    365       424,601  

VEON Holdings BV, 4.00%, 04/09/25 (Call 01/09/25)(a)

    225       233,543  

ViaSat Inc., 5.63%, 09/15/25 (Call 11/09/21)(a)

    125       126,679  
   

 

 

 
      1,544,710  
Transportation — 0.8%  

Western Global Airlines LLC, 10.38%, 08/15/25 (Call 05/15/25)(a)(b)

    80       89,088  

XPO Logistics Inc., 6.25%, 05/01/25 (Call 05/01/22)(a)

    208       219,136  
   

 

 

 
      308,224  
Security   Par/
Shares
(000)
    Value  
Trucking & Leasing — 0.4%  

Fortress Transportation and Infrastructure Investors LLC, 6.50%, 10/01/25 (Call 11/29/21)(a)

  $ 155     $ 159,546  
   

 

 

 

Total Corporate Bonds & Notes — 97.7%
(Cost: $38,320,494)

      38,892,469  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 12.1%  

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

    3,716       3,718,076  

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

    1,120       1,120,000  
   

 

 

 
      4,838,076  
   

 

 

 

Total Short-Term Investments — 12.1%
(Cost: $4,837,297)

      4,838,076  
   

 

 

 

Total Investments in Securities — 109.8%
(Cost: $43,157,791)

      43,730,545  

Other Assets, Less Liabilities — (9.8)%

      (3,911,869
   

 

 

 

Net Assets — 100.0%

    $ 39,818,676  
   

 

 

 

 

(a) 

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

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

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.

(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

   $ 1,893,672      $ 1,824,895 (a)     $      $ (504    $ 13      $ 3,718,076        3,716      $ 8,812 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     334,000        786,000 (a)                             1,120,000        1,120        53         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ (504    $ 13      $ 4,838,076         $ 8,865      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

(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

  37


Schedule of Investments  (continued)

October 31, 2021

  

iShares® iBonds® 2025 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

   $      $ 38,892,469      $      $ 38,892,469  

Money Market Funds

     4,838,076                      4,838,076  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 4,838,076      $ 38,892,469      $      $ 43,730,545  
  

 

 

    

 

 

    

 

 

    

 

 

 
                             

See notes to financial statements.

 

 

38  

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  

October 31, 2021

  

iShares® iBonds® 2026 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  

Corporate Bonds & Notes

 

Advertising — 0.1%  

Summer BC Bidco B LLC, 5.50%, 10/31/26 (Call 07/15/23)(a)

  $ 25     $ 25,420  
   

 

 

 

Aerospace & Defense — 3.9%

 

Bombardier Inc., 7.13%, 06/15/26 (Call 06/15/23)(a)

    125       131,213  

Spirit AeroSystems Inc., 3.85%, 06/15/26
(Call 03/15/26)(b)

    30       31,584  

TransDigm Inc.
6.25%, 03/15/26 (Call 03/15/22)(a)

    425       443,929  

6.38%, 06/15/26 (Call 11/29/21)

    120       124,154  

TransDigm UK Holdings PLC, 6.88%, 05/15/26 (Call 11/29/21)

    50       52,729  
   

 

 

 
      783,609  
Agriculture — 0.3%  

Turning Point Brands Inc., 5.63%, 02/15/26 (Call 02/15/23)(a)

    25       25,521  

Vector Group Ltd., 10.50%, 11/01/26 (Call 11/29/21)(a)

    40       42,241  
   

 

 

 
      67,762  
Airlines — 4.7%  

Air Canada, 3.88%, 08/15/26 (Call 02/15/26)(a)(b)

    105       106,384  

Air Canada Pass Through Trust, Series 2020-1, Class C, 10.50%, 07/15/26(a)

    30       36,924  

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

    325       340,814  

American Airlines Pass Through Trust, Series 2014-1, Class A, 3.70%, 10/01/26

    47       47,935  

Delta Air Lines Inc., 7.38%, 01/15/26 (Call 12/15/25)

    95       111,686  

Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd., 5.75%, 01/20/26 (Call 01/20/24)(a)

    100       105,000  

United Airlines Inc., 4.38%, 04/15/26 (Call 10/15/25)(a)

    200       207,084  
   

 

 

 
      955,827  
Apparel — 0.7%  

Hanesbrands Inc., 4.88%, 05/15/26 (Call 02/15/26)(a)

    75       80,205  

Under Armour Inc., 3.25%, 06/15/26 (Call 03/15/26)

    55       56,658  
   

 

 

 
      136,863  
Auto Manufacturers — 3.1%  

Ford Motor Co., 4.35%, 12/08/26 (Call 09/08/26)(b)

    75       80,237  

Ford Motor Credit Co. LLC
2.70%, 08/10/26 (Call 07/10/26)

    200       199,382  

4.39%, 01/08/26

    210       224,366  

4.54%, 08/01/26 (Call 06/01/26)

    60       64,577  

JB Poindexter & Co. Inc., 7.13%, 04/15/26
(Call 11/29/21)(a)

    50       52,554  
   

 

 

 
      621,116  
Auto Parts & Equipment — 1.8%  

Adient Global Holdings Ltd., 4.88%, 08/15/26 (Call 11/29/21)(a)(b)

    70       71,322  

American Axle & Manufacturing Inc., 6.25%, 03/15/26 (Call 11/09/21)(b)

    40       41,101  

Clarios Global LP/Clarios US Finance Co., 6.25%, 05/15/26 (Call 05/15/22)(a)

    67       70,102  

Cooper-Standard Automotive Inc., 5.63%, 11/15/26 (Call 11/15/21)(a)(b)

    35       28,074  

Goodyear Tire & Rubber Co. (The), 5.00%, 05/31/26 (Call 11/29/21)

    65       66,737  

IHO Verwaltungs GmbH, 4.75%, 09/15/26 (Call 11/09/21),

   

(5.50% PIK)(a)(c)

    50       51,137  

Tenneco Inc., 5.00%, 07/15/26 (Call 11/29/21)(b)

    45       43,882  
   

 

 

 
      372,355  
Banks — 1.0%  

Freedom Mortgage Corp., 7.63%, 05/01/26 (Call 05/01/23)(a)

    55       53,883  

Intesa Sanpaolo SpA, 5.71%, 01/15/26(a)

    135       149,905  
   

 

 

 
      203,788  
Security       
Par
(000)
    Value  
Building Materials — 0.2%  

New Enterprise Stone & Lime Co. Inc., 6.25%, 03/15/26 (Call 11/07/21)(a)

  $ 45     $ 46,443  
   

 

 

 

Chemicals — 1.3%

 

GCP Applied Technologies Inc., 5.50%, 04/15/26 (Call 11/15/21)(a)

    25       25,596  

GPD Companies Inc., 10.13%, 04/01/26
(Call 04/01/22)(a)

    45       48,281  

INEOS Quattro Finance 2 PLC, 3.38%, 01/15/26 (Call 01/15/23)(a)

    45       44,787  

Ingevity Corp., 4.50%, 02/01/26 (Call 11/29/21)(a)

    35       35,498  

Nufarm Australia Ltd./Nufarm Americas Inc., 5.75%, 04/30/26 (Call 11/29/21)(a)(b)

    45       46,010  

Polar U.S. Borrower LLC/Schenectady International Group Inc., 6.75%, 05/15/26 (Call 05/15/23)(a)

    25       24,812  

Rayonier AM Products Inc., 7.63%, 01/15/26 (Call 01/15/24)(a)

    45       46,413  
   

 

 

 
      271,397  
Coal — 0.2%  

Coronado Finance Pty Ltd., 10.75%, 05/15/26 (Call 05/15/23)(a)

    35       38,096  
   

 

 

 

Commercial Services — 5.2%

 

Albion Financing 1 Sarl/Aggreko Holdings Inc., 6.13%, 10/15/26 (Call 10/15/23)(a)

    50       50,451  

Allied Universal Holdco LLC/Allied Universal Finance Corp., 6.63%, 07/15/26 (Call 07/15/22)(a)

    170       178,789  

Alta Equipment Group Inc., 5.63%, 04/15/26 (Call 04/15/23)(a)

    30       30,780  

Cimpress PLC, 7.00%, 06/15/26 (Call 11/29/21)(a)

    55       57,274  

CoreCivic Inc., 8.25%, 04/15/26 (Call 04/15/24)

    60       61,375  

CPI CG Inc., 8.63%, 03/15/26 (Call 03/15/23)(a)

    30       32,396  

Graham Holdings Co., 5.75%, 06/01/26 (Call 11/09/21)(a)

    40       41,703  

IHS Markit Ltd., 4.00%, 03/01/26 (Call 12/01/25)(a)

    35       38,142  

Legends Hospitality Holding Co. LLC/Legends Hospitality Co-Issuer Inc., 5.00%, 02/01/26 (Call 02/01/23)(a)

    40       40,802  

MoneyGram International Inc., 5.38%, 08/01/26 (Call 08/01/23)(a)

    35       35,173  

Prime Security Services Borrower LLC/Prime Finance Inc., 5.75%, 04/15/26(a)

    135       144,378  

RR Donnelley & Sons Co., 6.13%, 11/01/26 (Call 11/01/23)(a)

    40       42,722  

Shift4 Payments LLC/Shift4 Payments Finance Sub Inc., 4.63%, 11/01/26 (Call 11/01/22)(a)

    45       46,776  

Square Inc., 2.75%, 06/01/26 (Call 05/01/26)(a)

    85       86,001  

Verscend Escrow Corp., 9.75%, 08/15/26
(Call 11/29/21)(a)

    80       84,763  

WASH Multifamily Acquisition Inc., 5.75%, 04/15/26 (Call 04/15/23)(a)

    75       77,623  
   

 

 

 
      1,049,148  
Computers — 1.8%  

Vericast Corp., 11.00%, 09/15/26 (Call 09/15/23)(a)

    110       114,987  

Western Digital Corp., 4.75%, 02/15/26 (Call 11/15/25)(b)

    220       241,705  
   

 

 

 
      356,692  
Cosmetics & Personal Care — 0.8%  

Coty Inc.
5.00%, 04/15/26 (Call 04/15/23)(a)(b)

    80       82,241  

6.50%, 04/15/26 (Call 11/29/21)(a)

    50       51,442  

Oriflame Investment Holding PLC, 5.13%, 05/04/26 (Call 05/15/23)(a)

    35       34,708  
   

 

 

 
      168,391  
Distribution & Wholesale — 0.3%  

Wolverine Escrow LLC, 9.00%, 11/15/26
(Call 11/15/22)(a)

    75       68,985  
   

 

 

 

Diversified Financial Services — 3.3%

 

Brightsphere Investment Group Inc., 4.80%, 07/27/26

    25       26,430  

Credit Acceptance Corp., 6.63%, 03/15/26
(Call 03/15/22)(b)

    40       41,725  

goeasy Ltd., 4.38%, 05/01/26 (Call 05/01/23)(a)

    30       30,852  

 

 

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

  39


Schedule of Investments  (continued)

October 31, 2021

  

iShares® iBonds® 2026 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Diversified Financial Services (continued)  

Home Point Capital Inc., 5.00%, 02/01/26 (Call 02/01/23)(a)

  $     50     $     44,936  

Jefferson Capital Holdings LLC, 6.00%, 08/15/26 (Call 08/15/23)(a)

    30       30,388  

LFS Topco LLC, 5.88%, 10/15/26 (Call 10/15/23)(a)

    30       30,933  

Navient Corp., 6.75%, 06/15/26(b)

    75       82,727  

OneMain Finance Corp., 7.13%, 03/15/26

    145       164,674  

PHH Mortgage Corp., 7.88%, 03/15/26
(Call 03/15/23)(a)(b)

    35       35,512  

Rocket Mortgage LLC/Rocket Mortgage Co-Issuer Inc., 2.88%, 10/15/26 (Call 10/15/23)(a)

      105       104,265  

SLM Corp., 3.13%, 11/02/26 (Call 10/02/26)

    50       49,563  

World Acceptance Corp., 7.00%, 11/01/26 (Call 11/01/23)(a)

    25       24,637  
   

 

 

 
        666,642  
Electric — 1.3%  

Calpine Corp., 5.25%, 06/01/26 (Call 11/29/21)(a)

    65       66,864  

FirstEnergy Corp., Series A, 1.60%, 01/15/26 (Call 12/15/25)

    35       34,607  

NextEra Energy Operating Partners LP, 3.88%, 10/15/26 (Call 07/15/26)(a)

    45       47,901  

Terraform Global Operating LLC, 6.13%, 03/01/26 (Call 11/29/21)(a)

    40       40,994  

Vistra Operations Co. LLC, 5.50%, 09/01/26 (Call 11/09/21)(a)

    75       77,209  
   

 

 

 
      267,575  
Energy - Alternate Sources — 0.3%  

Enviva Partners LP/Enviva Partners Finance Corp., 6.50%, 01/15/26 (Call 11/29/21)(a)

    25       25,853  

Sunnova Energy Corp., 5.88%, 09/01/26 (Call 09/01/23)(a)(b)

    35       35,725  
   

 

 

 
      61,578  
Engineering & Construction — 0.3%  

Brundage-Bone Concrete Pumping Holdings Inc., 6.00%, 02/01/26 (Call 02/01/23)(a)

    35       36,633  

INNOVATE Corp., 8.50%, 02/01/26 (Call 02/01/23)(a)

    30       29,980  
   

 

 

 
      66,613  
Entertainment — 2.4%  

CCM Merger Inc., 6.38%, 05/01/26 (Call 11/01/22)(a)

    30       31,582  

Cinemark USA Inc., 5.88%, 03/15/26 (Call 03/15/23)(a)(b)

    35       35,183  

Golden Entertainment Inc., 7.63%, 04/15/26 (Call 04/15/22)(a)

    40       42,019  

International Game Technology PLC, 4.13%, 04/15/26 (Call 04/15/23)(a)

    65       67,155  

Live Nation Entertainment Inc., 5.63%, 03/15/26 (Call 11/29/21)(a)

    25       25,938  

Merlin Entertainments Ltd., 5.75%, 06/15/26 (Call 03/17/26)(a)

    35       36,192  

Mohegan Gaming & Entertainment, 8.00%, 02/01/26 (Call 02/01/23)(a)

    100       103,383  

Raptor Acquisition Corp./Raptor Co-Issuer LLC, 4.88%, 11/01/26 (Call 11/01/22)(a)

    30       30,297  

Scientific Games International Inc., 8.25%, 03/15/26 (Call 03/15/22)(a)

    105       111,426  
   

 

 

 
      483,175  
Environmental Control — 0.5%  

GFL Environmental Inc., 5.13%, 12/15/26 (Call 12/15/22)(a)

    45       47,123  

Waste Pro USA Inc., 5.50%, 02/15/26 (Call 11/29/21)(a)

    45       44,560  
   

 

 

 
      91,683  
Food — 3.2%  

Albertsons Companies Inc./Safeway Inc./New Albertsons LP/Albertsons LLC

   

3.25%, 03/15/26 (Call 09/15/22)(a)

    65       66,101  

7.50%, 03/15/26 (Call 03/15/22)(a)

    55       59,259  

FAGE International SA/FAGE USA Dairy Industry Inc., 5.63%, 08/15/26 (Call 11/29/21)(a)

    40       41,002  

H-Food Holdings LLC/Hearthside Finance Co. Inc., 8.50%, 06/01/26 (Call 11/29/21)(a)

    35       36,225  

JBS USA Food Co., 7.00%, 01/15/26 (Call 01/15/22)(a)

    100       104,267  
Security       
Par
(000)
    Value  
Food (continued)  

Kraft Heinz Foods Co., 3.00%, 06/01/26 (Call 03/01/26)

  $     215     $     224,273  

Lamb Weston Holdings Inc., 4.88%, 11/01/26 (Call 11/18/21)(a)

    70       71,803  

Sigma Holdco BV, 7.88%, 05/15/26
(Call 11/09/21)(a)(b)

    45       44,031  
   

 

 

 
      646,961  
Forest Products & Paper — 0.5%            

Mercer International Inc., 5.50%, 01/15/26 (Call 11/29/21)

    35       35,525  

Resolute Forest Products Inc., 4.88%, 03/01/26 (Call 03/01/23)(a)

    30       30,604  

Schweitzer-Mauduit International Inc., 6.88%, 10/01/26 (Call 11/29/21)(a)

    35       36,486  
   

 

 

 
      102,615  
Gas — 0.3%  

AmeriGas Partners LP/AmeriGas Finance Corp., 5.88%, 08/20/26 (Call 05/20/26)(b)

    60       67,004  
   

 

 

 
Health Care - Services — 5.9%  

CHS/Community Health Systems Inc., 8.00%, 03/15/26 (Call 03/15/22)(a)

    180       190,155  

Hadrian Merger Sub Inc., 8.50%, 05/01/26 (Call 11/29/21)(a)(b)

    35       36,224  

HCA Inc.
5.38%, 09/01/26 (Call 03/01/26)

    160       182,171  

5.88%, 02/15/26 (Call 08/15/25)

    135       153,760  

IQVIA Inc., 5.00%, 10/15/26 (Call 11/29/21)(a)

    80       82,317  

RegionalCare Hospital Partners Holdings Inc./LifePoint Health Inc., 9.75%, 12/01/26 (Call 12/01/21)(a)

    135       142,451  

Select Medical Corp., 6.25%, 08/15/26
(Call 08/15/22)(a)

    115       120,360  

Tenet Healthcare Corp., 4.88%, 01/01/26 (Call 03/01/22)(a)

    230       236,495  

U.S. Acute Care Solutions LLC, 6.38%, 03/01/26 (Call 03/01/23)(a)

    45       46,679  
   

 

 

 
        1,190,612  
Holding Companies - Diversified — 0.6%  

Icahn Enterprises LP/Icahn Enterprises Finance Corp., 6.25%, 05/15/26 (Call 05/15/22)

    120       125,675  
   

 

 

 
Home Builders — 0.5%  

Forestar Group Inc., 3.85%, 05/15/26
(Call 05/15/23)(a)

    40       40,014  

K Hovnanian Enterprises Inc.
7.75%, 02/15/26 (Call 02/15/22)(a)

    30       31,408  

10.50%, 02/15/26 (Call 02/15/22)(a)

    20       21,317  
   

 

 

 
      92,739  
Housewares — 1.0%  

Newell Brands Inc., 4.70%, 04/01/26 (Call 01/01/26)

    175       191,697  

Scotts Miracle-Gro Co. (The), 5.25%, 12/15/26 (Call 12/15/21)

    20       20,608  
   

 

 

 
      212,305  
Insurance — 1.0%  

Acrisure LLC/Acrisure Finance Inc., 10.13%, 08/01/26 (Call 08/01/22)(a)

    40       44,509  

HUB International Ltd., 7.00%, 05/01/26 (Call 11/09/21)(a)

    150       155,025  
   

 

 

 
      199,534  
Internet — 2.4%  

Cogent Communications Group Inc., 3.50%, 05/01/26 (Call 02/01/26)(a)

    45       45,559  

Millennium Escrow Corp., 6.63%, 08/01/26 (Call 08/01/23)(a)

    65       66,072  

Netflix Inc., 4.38%, 11/15/26(b)

    135       150,293  

Photo Holdings Merger Sub Inc., 8.50%, 10/01/26 (Call 10/01/22)(a)(b)

    70       73,570  

Uber Technologies Inc., 8.00%, 11/01/26 (Call 11/29/21)(a)

    150       159,855  
   

 

 

 
      495,349  
Iron & Steel — 1.2%  

ArcelorMittal SA, 4.55%, 03/11/26

    60       65,900  

 

 

40  

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® 2026 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Iron & Steel (continued)  

Baffinland Iron Mines Corp./Baffinland Iron Mines LP, 8.75%, 07/15/26 (Call 11/29/21)(a)

  $     50     $     52,784  

Cleveland-Cliffs Inc., 6.75%, 03/15/26 (Call 03/15/22)(a)

    75       79,780  

United States Steel Corp., 6.25%, 03/15/26 (Call 10/31/21)(b)

    53       54,656  
   

 

 

 
      253,120  
Leisure Time — 3.5%  

Carnival Corp.
7.63%, 03/01/26 (Call 03/01/24)(a)

    130       136,908  

10.50%, 02/01/26 (Call 08/01/23)(a)

    70       81,318  

Life Time Inc.
5.75%, 01/15/26 (Call 01/15/23)(a)

    79       81,146  

8.00%, 04/15/26 (Call 02/01/23)(a)(b)

    40       42,003  

NCL Corp. Ltd.
5.88%, 03/15/26 (Call 12/15/25)(a)

    125       125,513  

10.25%, 02/01/26 (Call 08/01/23)(a)(b)

    65       74,636  

Royal Caribbean Cruises Ltd.
4.25%, 07/01/26 (Call 01/01/26)(a)

    60       58,208  

5.50%, 08/31/26 (Call 02/28/26)(a)

    100       101,971  
   

 

 

 
      701,703  
Lodging — 1.3%  

Melco Resorts Finance Ltd., 5.25%, 04/26/26 (Call 04/26/22)(d)

    50       49,475  

MGM Resorts International, 4.63%, 09/01/26 (Call 06/01/26)

    55       57,438  

Travel + Leisure Co., 6.63%, 07/31/26
(Call 04/30/26)(a)

    60       66,982  

Wynn Macau Ltd., 5.50%, 01/15/26 (Call 06/15/22)(a)

    100       94,288  
   

 

 

 
      268,183  
Machinery — 1.2%  

Colfax Corp., 6.38%, 02/15/26 (Call 02/15/22)(a)

    33       34,402  

Manitowoc Co. Inc. (The), 9.00%, 04/01/26 (Call 04/01/22)(a)

    35       37,264  

Stevens Holding Co. Inc., 6.13%, 10/01/26 (Call 10/01/23)(a)(b)

    40       43,228  

Titan Acquisition Ltd./Titan Co-Borrower LLC, 7.75%, 04/15/26 (Call 11/29/21)(a)

    60       61,206  

Weir Group PLC (The), 2.20%, 05/13/26
(Call 04/13/26)(a)

    70       69,525  
   

 

 

 
      245,625  
Manufacturing — 0.9%  

EnPro Industries Inc., 5.75%, 10/15/26 (Call 11/29/21)

    25       26,171  

FXI Holdings Inc., 12.25%, 11/15/26 (Call 11/15/22)(a)

    65       72,335  

Gates Global LLC/Gates Corp., 6.25%, 01/15/26 (Call 01/15/22)(a)(b)

    40       41,369  

Hillenbrand Inc., 5.00%, 09/15/26 (Call 07/15/26)

    35       39,477  
   

 

 

 
      179,352  
Media — 4.6%  

Beasley Mezzanine Holdings LLC, 8.63%, 02/01/26 (Call 02/01/23)(a)

    25       25,235  

CCO Holdings LLC/CCO Holdings Capital Corp., 5.50%, 05/01/26 (Call 11/29/21)(a)

    40       41,310  

Cumulus Media New Holdings Inc., 6.75%, 07/01/26 (Call 07/01/22)(a)(b)

    45       46,866  

DISH DBS Corp., 7.75%, 07/01/26(b)

    200       222,614  

Gannett Holdings LLC, 6.00%, 11/01/26
(Call 11/01/23)(a)

    35       34,911  

Gray Television Inc., 5.88%, 07/15/26 (Call 11/29/21)(a)

    50       51,625  

iHeartCommunications Inc., 6.38%, 05/01/26 (Call 05/01/22)

    70       73,332  

Meredith Corp., 6.88%, 02/01/26 (Call 12/01/21)

    75       77,746  

Radiate Holdco LLC/Radiate Finance Inc., 4.50%, 09/15/26 (Call 09/15/23)(a)

    75       76,217  

Sinclair Television Group Inc., 5.88%, 03/15/26 (Call 11/29/21)(a)

    25       25,578  

Sirius XM Radio Inc., 3.13%, 09/01/26
(Call 09/01/23)(a)

    125       125,285  

Spanish Broadcasting System Inc., 9.75%, 03/01/26 (Call 09/01/23)(a)

    30       31,423  

TEGNA Inc., 4.75%, 03/15/26 (Call 03/15/23)(a)

    50       52,085  
Security       
Par
(000)
    Value  
Media (continued)  

Townsquare Media Inc., 6.88%, 02/01/26
(Call 02/01/23)(a)

  $     50     $     52,646  
   

 

 

 
      936,873  
Mining — 1.1%  

Constellium SE, 5.88%, 02/15/26 (Call 11/29/21)(a)

    50       50,914  

Hudbay Minerals Inc., 4.50%, 04/01/26
(Call 04/01/23)(d)

    45       44,871  

JW Aluminum Continuous Cast Co., 10.25%, 06/01/26 (Call 11/15/21)(a)

    25       26,669  

Novelis Corp., 3.25%, 11/15/26 (Call 11/15/23)(a)

    70       69,972  

Taseko Mines Ltd., 7.00%, 02/15/26 (Call 02/15/23)(a)

    35       36,225  
   

 

 

 
      228,651  
Oil & Gas — 8.7%  

Aethon United BR LP/Aethon United Finance Corp., 8.25%, 02/15/26 (Call 02/15/23)(a)

    65       69,802  

Antero Resources Corp., 8.38%, 07/15/26 (Call 01/15/24)(a)

    33       37,139  

Ascent Resources Utica Holdings LLC/ARU Finance Corp., 7.00%, 11/01/26 (Call 11/29/21)(a)

    55       56,784  

Berry Petroleum Co. LLC, 7.00%, 02/15/26 (Call 11/29/21)(a)

    35       35,489  

Bonanza Creek Energy Inc., 5.00%, 10/15/26 (Call 10/15/23)(a)

    28       28,281  

California Resources Corp., 7.13%, 02/01/26 (Call 02/01/23)(a)

    55       58,029  

Callon Petroleum Co., 6.38%, 07/01/26 (Call 11/29/21)

    30       28,815  

Centennial Resource Production LLC, 5.38%, 01/15/26 (Call 11/29/21)(a)(b)

    25       24,828  

Chesapeake Energy Corp., 5.50%, 02/01/26 (Call 02/05/23)(a)

    45       47,098  

Colgate Energy Partners III LLC, 7.75%, 02/15/26 (Call 02/15/24)(a)

    35       37,441  

Energy Ventures Gom LLC/EnVen Finance Corp., 11.75%, 04/15/26 (Call 04/15/23)(a)

    29       30,112  

EQT Corp., 3.13%, 05/15/26 (Call 05/15/23)(a)

    45       45,378  

Gulfport Energy Operating Corp., 8.00%, 05/17/26 (Call 05/17/24)

    50       55,351  

Harbour Energy PLC, 5.50%, 10/15/26 (Call 10/15/23)(a)

    40       40,039  

Independence Energy Finance LLC, 7.25%, 05/01/26 (Call 05/01/23)(a)

    45       46,845  

Ithaca Energy North Sea PLC, 9.00%, 07/15/26 (Call 07/15/23)(a)

    50       51,542  

Magnolia Oil & Gas Operating LLC/Magnolia Oil & Gas Finance Corp., 6.00%, 08/01/26 (Call 11/09/21)(a)

    40       41,016  

Matador Resources Co., 5.88%, 09/15/26 (Call 11/15/21)

    95       98,035  

Moss Creek Resources Holdings Inc., 7.50%, 01/15/26 (Call 11/29/21)(a)

    60       54,548  

Nabors Industries Ltd., 7.25%, 01/15/26
(Call 07/15/22)(a)

    40       39,011  

Oasis Petroleum Inc., 6.38%, 06/01/26 (Call 06/01/23)(a)

    40       42,287  

Occidental Petroleum Corp.
3.20%, 08/15/26 (Call 06/15/26)

    130       132,144  

3.40%, 04/15/26 (Call 01/15/26)

    90       91,731  

5.55%, 03/15/26 (Call 12/15/25)

    85       93,838  

Ovintiv Exploration Inc., 5.38%, 01/01/26 (Call 10/01/25)

    60       66,741  

PDC Energy Inc., 5.75%, 05/15/26 (Call 11/29/21)

    65       66,851  

Penn Virginia Escrow LLC, 9.25%, 08/15/26 (Call 08/15/23)(a)

    35       36,490  

Precision Drilling Corp., 7.13%, 01/15/26
(Call 11/15/21)(a)

    35       36,006  

Range Resources Corp., 9.25%, 02/01/26 (Call 02/01/22)

    75       81,210  

SM Energy Co., 6.75%, 09/15/26 (Call 11/29/21)

    40       41,104  

Strathcona Resources Ltd., 6.88%, 08/01/26 (Call 08/01/23)(a)

    45       44,738  

Talos Production Inc., 12.00%, 01/15/26 (Call 01/15/23)

    55       59,751  

Tap Rock Resources LLC, 7.00%, 10/01/26 (Call 10/01/23)(a)

    45       46,333  
   

 

 

 
      1,764,807  
Oil & Gas Services — 1.0%  

TechnipFMC PLC, 6.50%, 02/01/26 (Call 02/01/23)(a)

    85       90,766  

USA Compression Partners LP/USA Compression Finance Corp., 6.88%, 04/01/26 (Call 11/29/21)

    85       87,819  

 

 

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

  41


Schedule of Investments  (continued)

October 31, 2021

  

iShares® iBonds® 2026 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Oil & Gas Services (continued)  

Welltec International ApS, 8.25%, 10/15/26 (Call 10/15/23)(a)

  $     30     $     30,872  
   

 

 

 
      209,457  

Packaging & Containers — 2.9%

 

Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc., 4.13%, 08/15/26 (Call 08/15/22)(a)

    110       112,227  

Ball Corp., 4.88%, 03/15/26 (Call 12/15/25)

    65       71,296  

Berry Global Inc., 4.50%, 02/15/26 (Call 11/29/21)(a)(b)

    31       31,492  

Cascades Inc./Cascades USA Inc., 5.13%, 01/15/26 (Call 01/15/23)(a)

    35       37,022  

Crown Americas LLC/Crown Americas Capital Corp. V, 4.25%, 09/30/26 (Call 03/31/26)(b)

    50       53,314  

Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 02/01/26 (Call 11/29/21)

    25       25,785  

Crown Cork & Seal Co. Inc., 7.38%, 12/15/26

    35       43,024  

Flex Acquisition Co. Inc., 7.88%, 07/15/26 (Call 11/29/21)(a)(b)

    35       36,596  

LABL Inc., 6.75%, 07/15/26 (Call 07/15/22)(a)

    65       67,361  

Trivium Packaging Finance BV, 5.50%, 08/15/26 (Call 08/15/22)(a)

    110       114,443  
   

 

 

 
      592,560  
Pharmaceuticals — 1.5%  

Bausch Health Americas Inc., 9.25%, 04/01/26 (Call 04/01/22)(a)

    135       143,640  

Lannett Co. Inc., 7.75%, 04/15/26 (Call 04/15/23)(a)

    35       32,337  

Perrigo Finance Unlimited Co., 4.38%, 03/15/26 (Call 12/15/25)

    100       106,873  

PRA Health Sciences Inc., 2.88%, 07/15/26 (Call 07/15/23)(a)

    25       25,252  
   

 

 

 
      308,102  
Pipelines — 5.1%  

Antero Midstream Partners LP/Antero Midstream Finance Corp., 7.88%, 05/15/26 (Call 05/15/23)(a)

    50       54,773  

Blue Racer Midstream LLC/Blue Racer Finance Corp., 6.63%, 07/15/26 (Call 11/29/21)(a)

    30       31,065  

Buckeye Partners LP, 3.95%, 12/01/26
(Call 09/01/26)(b)

    55       56,395  

EnLink Midstream Partners LP, 4.85%, 07/15/26 (Call 04/15/26)(b)

    45       46,711  

EQM Midstream Partners LP, 4.13%, 12/01/26 (Call 09/01/26)

    45       46,397  

Genesis Energy LP/Genesis Energy Finance Corp., 6.25%, 05/15/26 (Call 11/29/21)

    30       29,049  

Hess Midstream Operations LP, 5.63%, 02/15/26 (Call 11/29/21)(a)

    70       72,481  

New Fortress Energy Inc., 6.50%, 09/30/26 (Call 03/31/23)(a)

    135       131,278  

NGL Energy Operating LLC/NGL Energy Finance Corp., 7.50%, 02/01/26 (Call 02/01/23)(a)

    180       182,741  

NGL Energy Partners LP/NGL Energy Finance Corp., 7.50%, 04/15/26 (Call 04/15/22)(b)

    35       29,954  

Northriver Midstream Finance LP, 5.63%, 02/15/26 (Call 10/15/22)(a)

    50       51,740  

NuStar Logistics LP, 6.00%, 06/01/26 (Call 03/01/26)

    45       47,996  

Summit Midstream Holdings LLC/Summit Midstream Finance Corp., 8.50%, 10/15/26 (Call 10/15/23)(a)

    65       65,434  

Targa Resources Partners LP/Targa Resources Partners Finance Corp., 5.88%, 04/15/26 (Call 11/29/21)(b)

    95       99,376  

TransMontaigne Partners LP/TLP Finance Corp., 6.13%, 02/15/26 (Call 11/15/21)

    25       25,470  

Western Midstream Operating LP, 4.65%, 07/01/26 (Call 04/01/26)

    70       75,829  
   

 

 

 
      1,046,689  
Real Estate Investment Trusts — 3.1%  

Brookfield Property REIT Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LL, 5.75%, 05/15/26 (Call 05/15/22)(a)(b)

    80       82,732  

GEO Group Inc. (The), 6.00%, 04/15/26 (Call 11/29/21)

    25       21,729  
Security       
Par
(000)
    Value  
Real Estate Investment Trusts (continued)  

HAT Holdings I LLC/HAT Holdings II LLC, 3.38%, 06/15/26 (Call 03/15/26)(a)

  $     90     $     89,741  

iStar Inc., 5.50%, 02/15/26 (Call 08/15/22)

    40       41,648  

MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer Inc., 4.50%, 09/01/26 (Call 06/01/26)

    70       75,953  

MPT Operating Partnership LP/MPT Finance Corp., 5.25%, 08/01/26 (Call 11/29/21)

    35       36,090  

RLJ Lodging Trust LP, 3.75%, 07/01/26 (Call 07/01/23)(a)

    45       45,455  

Service Properties Trust
4.75%, 10/01/26 (Call 08/01/26)

    40       39,613  

5.25%, 02/15/26 (Call 08/15/25)

    30       30,313  

Starwood Property Trust Inc., 3.63%, 07/15/26 (Call 01/15/26)(a)

    35       35,011  

VICI Properties LP/VICI Note Co. Inc., 4.25%, 12/01/26 (Call 12/01/22)(a)

    120       124,361  
   

 

 

 
      622,646  
Retail — 4.1%  

99 Escrow Issuer Inc., 7.50%, 01/15/26 (Call 01/15/23)(a)

    30       27,286  

Beacon Roofing Supply Inc., 4.50%, 11/15/26 (Call 11/15/22)(a)(b)

    35       36,271  

CEC Entertainment LLC, 6.75%, 05/01/26 (Call 05/01/23)(a)

    55       54,982  

Ferrellgas LP/Ferrellgas Finance Corp., 5.38%, 04/01/26 (Call 04/01/23)(a)

    55       53,560  

Guitar Center Inc., 8.50%, 01/15/26 (Call 01/15/23)(a)

    25       26,722  

IRB Holding Corp., 6.75%, 02/15/26 (Call 11/29/21)(a)

    45       46,052  

LSF9 Atlantis Holdings LLC/Victra Finance Corp., 7.75%, 02/15/26 (Call 02/15/23)(a)

    65       65,861  

NMG Holding Co. Inc./Neiman Marcus Group LLC, 7.13%, 04/01/26 (Call 04/01/23)(a)

    95       99,762  

Party City Holdings Inc., 8.75%, 02/15/26
(Call 08/15/23)(a)

    65       66,639  

Rite Aid Corp., 8.00%, 11/15/26 (Call 01/15/23)(a)

    75       75,712  

Specialty Building Products Holdings LLC/SBP Finance Corp., 6.38%, 09/30/26 (Call 09/30/22)(a)

    65       67,690  

Staples Inc., 7.50%, 04/15/26 (Call 04/15/22)(a)

    175       177,228  

White Cap Parent LLC, 8.25%, 03/15/26 (Call 03/15/22), (9.00% PIK)(a)(c)

    30       30,317  
   

 

 

 
      828,082  
Software — 1.7%  

ACI Worldwide Inc., 5.75%, 08/15/26 (Call 11/29/21)(a)

    30       31,370  

Boxer Parent Co. Inc., 9.13%, 03/01/26 (Call 11/09/21)(a)

    25       26,176  

Camelot Finance SA, 4.50%, 11/01/26 (Call 11/01/22)(a)

    60       62,207  

Consensus Cloud Solutions Inc., 6.00%, 10/15/26 (Call 10/15/23)(a)

    30       30,636  

Dun & Bradstreet Corp. (The), 6.88%, 08/15/26 (Call 02/15/22)(a)

    40       41,785  

Fair Isaac Corp., 5.25%, 05/15/26 (Call 02/15/26)(a)

    40       44,691  

Nuance Communications Inc., 5.63%, 12/15/26 (Call 12/15/21)

    35       36,139  

Open Text Corp., 5.88%, 06/01/26 (Call 11/29/21)(a)

    65       67,209  
   

 

 

 
      340,213  
Telecommunications — 7.1%  

CommScope Inc., 6.00%, 03/01/26 (Call 03/01/22)(a)

    135       139,830  

Connect Finco Sarl/Connect U.S. Finco LLC, 6.75%, 10/01/26 (Call 10/01/22)(a)

    180       186,642  

Hughes Satellite Systems Corp.
5.25%, 08/01/26

    115       128,353  

6.63%, 08/01/26(b)

    65       73,672  

Iliad Holding SAS, 6.50%, 10/15/26 (Call 10/15/23)(a)

    125       128,796  

Level 3 Financing Inc., 5.25%, 03/15/26 (Call 11/29/21)

    60       61,827  

Lumen Technologies Inc., 5.13%, 12/15/26 (Call 12/15/22)(a)

    155       158,740  

Sprint Corp., 7.63%, 03/01/26 (Call 11/01/25)

    140       168,020  

Telesat Canada/Telesat LLC, 5.63%, 12/06/26 (Call 12/06/23)(a)

    45       41,990  

 

42  

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® 2026 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security   Par/
Shares
(000)
    Value  
Telecommunications (continued)            

T-Mobile USA Inc.

   

2.25%, 02/15/26 (Call 02/15/23)

  $     95     $     95,539  

2.25%, 02/15/26 (Call 02/15/23)(a)

    70       70,431  

2.63%, 04/15/26 (Call 04/15/23)

    180       182,902  
   

 

 

 
      1,436,742  
Toys, Games & Hobbies — 0.3%            

Mattel Inc., 3.38%, 04/01/26 (Call 04/01/23)(a)

    55       56,701  
   

 

 

 
Water — 0.2%            

Solaris Midstream Holdings LLC, 7.63%, 04/01/26 (Call 04/01/23)(a)

    35       36,925  
   

 

 

 

Total Corporate Bonds & Notes — 98.4%
(Cost: $19,824,337)

 

    19,992,383  
   

 

 

 

Short-Term Investments

 

Money Market Funds — 11.6%

 

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

    1,830       1,830,858  

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

    520       520,000  
   

 

 

 
      2,350,858  
   

 

 

 

Total Short-Term Investments — 11.6%
(Cost: $2,350,858)

 

    2,350,858  
   

 

 

 

Total Investments in Securities — 110.0%
(Cost: $22,175,195)

 

    22,343,241  

Other Assets, Less Liabilities — (10.0)%

 

    (2,022,632
   

 

 

 

Net Assets — 100.0%

 

  $   20,320,609  
   

 

 

 

 

(a) 

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

(b) 

All or a portion of this security is on loan.

(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 period 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
11/10/20(a)
    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

  $     $ 1,831,026 (b)    $     $ (168   $     $ 1,830,858       1,830     $ 2,593 (c)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

          520,000 (b)                         520,000       520       41        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (168   $     $ 2,350,858       $ 2,634     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) 

The Fund commenced operations on November 10, 2020.

(b) 

Represents net amount purchased (sold).

(c) 

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

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

  43


Schedule of Investments  (continued)

October 31, 2021

  

iShares® iBonds® 2026 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

   $        $ 19,992,383        $        $ 19,992,383  

Money Market Funds

     2,350,858                            2,350,858  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $   2,350,858        $ 19,992,383        $             —        $ 22,343,241  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

44  

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  

October 31, 2021

  

iShares® iBonds® 2027 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  

Corporate Bonds & Notes

   
Advertising — 0.8%            

Outfront Media Capital LLC/Outfront Media Capital Corp., 5.00%, 08/15/27 (Call 08/15/22)(a)

  $     35     $     35,690  

Terrier Media Buyer Inc., 8.88%, 12/15/27
(Call 12/15/22)(a)

    60       63,571  
   

 

 

 
      99,261  
Aerospace & Defense — 3.7%            

Bombardier Inc., 7.88%, 04/15/27 (Call 04/15/22)(a)

    115       119,597  

Hexcel Corp., 4.20%, 02/15/27 (Call 11/15/26)

    20       21,594  

Howmet Aerospace Inc., 5.90%, 02/01/27

    35       40,081  

Moog Inc., 4.25%, 12/15/27 (Call 12/15/22)(a)

    30       30,909  

Rolls-Royce PLC, 5.75%, 10/15/27 (Call 07/15/27)(a)

    60       66,619  

TransDigm Inc.

   

5.50%, 11/15/27 (Call 11/15/22)

    150       153,795  

7.50%, 03/15/27 (Call 03/15/22)

    30       31,514  
   

 

 

 
      464,109  
Agriculture — 0.2%            

Darling Ingredients Inc., 5.25%, 04/15/27 (Call 04/15/22)(a)

    30       31,106  
   

 

 

 
Airlines — 0.3%            

American Airlines Pass Through Trust, Series 2015-1, Class A, 3.38%, 05/01/27

    42       42,360  
   

 

 

 
Apparel — 0.2%            

William Carter Co. (The), 5.63%, 03/15/27 (Call 03/15/22)(a)

    30       31,125  
   

 

 

 
Auto Manufacturers — 1.8%            

Allison Transmission Inc., 4.75%, 10/01/27 (Call 10/01/22)(a)

    20       20,814  

Ford Motor Credit Co. LLC

   

3.82%, 11/02/27 (Call 08/02/27)

    55       57,213  

4.13%, 08/17/27 (Call 06/17/27)

    60       63,560  

4.27%, 01/09/27 (Call 11/09/26)

    50       53,057  

Jaguar Land Rover Automotive PLC, 4.50%, 10/01/27 (Call 07/01/27)(a)(b)

    30       28,781  
   

 

 

 
      223,425  
Auto Parts & Equipment — 2.1%            

American Axle & Manufacturing Inc., 6.50%, 04/01/27 (Call 04/01/22)

    30       31,327  

Clarios Global LP/Clarios US Finance Co., 8.50%, 05/15/27 (Call 05/15/22)(a)

    115       122,221  

Dana Inc., 5.38%, 11/15/27 (Call 11/15/22)

    30       31,454  

Goodyear Tire & Rubber Co. (The), 4.88%, 03/15/27 (Call 12/15/26)

    40       42,544  

IHO Verwaltungs GmbH, 6.00%, 05/15/27 (Call 05/15/22), (6.75% PIK)(a)(c)

    30       31,142  
   

 

 

 
      258,688  
Banks — 0.3%            

Freedom Mortgage Corp., 6.63%, 01/15/27 (Call 01/15/24)(a)

    35       33,247  
   

 

 

 
Building Materials — 1.1%            

Builders FirstSource Inc., 6.75%, 06/01/27
(Call 06/01/22)(a)

    35       36,996  

Jeld-Wen Inc., 4.88%, 12/15/27 (Call 12/15/22)(a)

    25       25,923  

Patrick Industries Inc., 7.50%, 10/15/27
(Call 10/15/22)(a)

    15       16,077  

Standard Industries Inc./NJ, 5.00%, 02/15/27
(Call 02/15/22)(a)

    40       41,058  

Summit Materials LLC/Summit Materials Finance Corp., 6.50%, 03/15/27 (Call 03/15/22)(a)

    15       15,739  
   

 

 

 
      135,793  
Chemicals — 1.9%            

Axalta Coating Systems LLC/Axalta Coating Systems Dutch Holding B BV, 4.75%, 06/15/27
(Call 06/15/23)(a)

    30       30,993  

Chemours Co. (The), 5.38%, 05/15/27 (Call 02/15/27)

    30       31,838  

HB Fuller Co., 4.00%, 02/15/27 (Call 11/15/26)

    20       20,984  
Security       
Par
(000)
    Value  
Chemicals (continued)            

Hexion Inc., 7.88%, 07/15/27 (Call 07/15/22)(a)

  $     30     $     31,800  

Methanex Corp., 5.13%, 10/15/27 (Call 04/15/27)

    40       42,213  

Olin Corp., 5.13%, 09/15/27 (Call 03/15/22)

    30       31,091  

WR Grace Holdings LLC, 4.88%, 06/15/27
(Call 06/15/23)(a)

    45       45,710  
   

 

 

 
      234,629  
Commercial Services — 4.5%            

Allied Universal Holdco LLC/Allied Universal Finance Corp., 9.75%, 07/15/27 (Call 07/15/22)(a)

    60       64,755  

AMN Healthcare Inc., 4.63%, 10/01/27 (Call 10/01/22)(a)

    30       30,813  

APX Group Inc., 6.75%, 02/15/27 (Call 02/15/23)(a)

    35       37,035  

Avis Budget Car Rental LLC/Avis Budget Finance Inc., 5.75%, 07/15/27 (Call 07/15/22)(a)

    40       41,753  

Brink’s Co. (The), 4.63%, 10/15/27 (Call 10/15/22)(a)(b)

    35       36,083  

CoreCivic Inc., 4.75%, 10/15/27 (Call 07/15/27)

    15       13,604  

Garda World Security Corp.

   

4.63%, 02/15/27 (Call 02/15/23)(a)

    30       29,779  

9.50%, 11/01/27 (Call 11/01/22)(a)

    35       37,768  

Herc Holdings Inc., 5.50%, 07/15/27 (Call 07/15/22)(a)

    60       62,614  

Korn Ferry, 4.63%, 12/15/27 (Call 12/15/22)(a)

    20       20,701  

Prime Security Services Borrower LLC/Prime Finance Inc., 3.38%, 08/31/27 (Call 08/31/26)(a)

    60       57,503  

Service Corp. International/U.S., 4.63%, 12/15/27 (Call 12/15/22)

    30       31,592  

Sotheby’s, 7.38%, 10/15/27 (Call 10/15/22)(a)

    35       36,900  

United Rentals North America Inc., 5.50%, 05/15/27 (Call 05/15/22)

    60       62,878  
   

 

 

 
      563,778  
Computers — 1.0%            

NCR Corp., 5.75%, 09/01/27 (Call 09/01/22)(a)

    30       31,526  

Presidio Holdings Inc., 4.88%, 02/01/27
(Call 02/01/23)(a)

    30       30,619  

Seagate HDD Cayman, 4.88%, 06/01/27 (Call 03/01/27)

    30       33,095  

Unisys Corp., 6.88%, 11/01/27 (Call 11/01/23)(a)

    30       32,701  
   

 

 

 
      127,941  
Distribution & Wholesale — 0.8%            

BCPE Empire Holdings Inc., 7.63%, 05/01/27
(Call 05/01/23)(a)

    40       39,611  

IAA Inc., 5.50%, 06/15/27 (Call 06/15/22)(a)

    30       31,242  

Univar Solutions USA Inc., 5.13%, 12/01/27
(Call 12/01/22)(a)

    30       31,409  
   

 

 

 
      102,262  
Diversified Financial Services — 1.5%            

Advisor Group Holdings Inc., 10.75%, 08/01/27
(Call 08/01/22)(a)

    20       22,218  

Castlelake Aviation Finance DAC, 5.00%, 04/15/27
(Call 04/15/24)(a)

    25       24,936  

LPL Holdings Inc., 4.63%, 11/15/27 (Call 11/15/22)(a)

    20       20,611  

Nationstar Mortgage Holdings Inc., 6.00%, 01/15/27
(Call 01/15/23)(a)

    35       36,635  

Navient Corp., 5.00%, 03/15/27 (Call 09/15/26)

    40       40,776  

OneMain Finance Corp., 3.50%, 01/15/27 (Call 01/15/24)

    40       39,221  
   

 

 

 
      184,397  
Electric — 2.7%            

FirstEnergy Corp., Series B, 4.40%, 07/15/27 (Call 04/15/27)

    90       97,629  

NextEra Energy Operating Partners LP, 4.50%, 09/15/27 (Call 06/15/27)(a)

    30       32,133  

Talen Energy Supply LLC, 7.25%, 05/15/27
(Call 05/15/22)(a)

    40       38,309  

Vistra Operations Co. LLC

   

5.00%, 07/31/27 (Call 07/31/22)(a)

    75       76,793  

5.63%, 02/15/27 (Call 02/15/22)(a)

    85       87,588  
   

 

 

 
      332,452  
Electrical Components & Equipment — 0.2%            

EnerSys, 4.38%, 12/15/27 (Call 09/15/27)(a)

    20       21,001  
   

 

 

 

 

 

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

  45


Schedule of Investments  (continued)

October 31, 2021

  

iShares® iBonds® 2027 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Engineering & Construction — 0.5%            

AECOM, 5.13%, 03/15/27 (Call 12/15/26)

  $     60     $     66,195  
   

 

 

 
Entertainment — 4.3%            

Affinity Gaming, 6.88%, 12/15/27 (Call 12/01/23)(a)

    30       31,110  

Caesars Entertainment Inc., 8.13%, 07/01/27
(Call 07/01/23)(a)(b)

    100       112,040  

Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op, 5.38%, 04/15/27 (Call 04/15/22)

    30       30,906  

Churchill Downs Inc., 5.50%, 04/01/27
(Call 04/01/22)(a)

    35       36,269  

International Game Technology PLC, 6.25%, 01/15/27 (Call 07/15/26)(a)

    40       45,056  

Live Nation Entertainment Inc.

   

4.75%, 10/15/27 (Call 10/15/22)(a)

    60       61,188  

6.50%, 05/15/27 (Call 05/15/23)(a)

    60       65,831  

Motion Bondco DAC, 6.63%, 11/15/27 (Call 11/15/22)(a)

    20       20,193  

Peninsula Pacific Entertainment LLC/Peninsula Pacific Entertainment Finance Inc., 8.50%, 11/15/27 (Call 11/15/23)(a)

    50       53,355  

Penn National Gaming Inc., 5.63%, 01/15/27
(Call 01/15/22)(a)

    30       30,998  

Six Flags Entertainment Corp., 5.50%, 04/15/27
(Call 04/15/22)(a) .

    30       31,088  

Speedway Motorsports LLC/Speedway Funding II Inc., 4.88%, 11/01/27 (Call 11/01/22)(a)

    20       20,397  
   

 

 

 
      538,431  
Environmental Control — 0.7%            

Clean Harbors Inc., 4.88%, 07/15/27 (Call 07/15/22)(a)

    30       31,345  

Covanta Holding Corp., 6.00%, 01/01/27 (Call 01/01/22)

    20       20,686  

Harsco Corp., 5.75%, 07/31/27 (Call 07/31/22)(a)

    30       31,122  
   

 

 

 
      83,153  
Food — 3.0%            

Albertsons Companies Inc./Safeway Inc./New Albertsons LP/Albertsons LLC, 4.63%, 01/15/27
(Call 01/15/23)(a)

    75       78,471  

B&G Foods Inc., 5.25%, 09/15/27 (Call 03/01/22)

    30       30,781  

Kraft Heinz Foods Co., 3.88%, 05/15/27 (Call 02/15/27)

    75       81,387  

Performance Food Group Inc., 5.50%, 10/15/27
(Call 10/15/22)(a)(b)

    60       62,735  

Pilgrim’s Pride Corp., 5.88%, 09/30/27
(Call 09/30/22)(a)

    50       52,698  

Post Holdings Inc., 5.75%, 03/01/27 (Call 03/01/22)(a)

    60       62,260  
   

 

 

 
      368,332  
Gas — 0.3%            

AmeriGas Partners LP/AmeriGas Finance Corp., 5.75%, 05/20/27 (Call 02/20/27)

    30       33,570  
   

 

 

 
Health Care - Products — 0.5%            

Hill-Rom Holdings Inc., 4.38%, 09/15/27
(Call 09/15/22)(a)

    30       31,200  

Teleflex Inc., 4.63%, 11/15/27 (Call 11/15/22)

    30       31,294  
   

 

 

 
      62,494  
Health Care - Services — 6.1%            

Catalent Pharma Solutions Inc., 5.00%, 07/15/27
(Call 07/15/22)(a)

    30       31,137  

Centene Corp., 4.25%, 12/15/27 (Call 12/15/22)

    150       157,129  

CHS/Community Health Systems Inc.

   

5.63%, 03/15/27 (Call 12/15/23)(a)

    100       104,671  

8.00%, 12/15/27 (Call 12/15/22)(a)

    60       65,270  

IQVIA Inc., 5.00%, 05/15/27 (Call 05/15/22)(a)

    60       62,200  

Legacy LifePoint Health LLC, 4.38%, 02/15/27
(Call 02/15/22)(a)

    35       34,812  

MEDNAX Inc., 6.25%, 01/15/27 (Call 01/15/22)(a)

    60       62,982  

Surgery Center Holdings Inc., 10.00%, 04/15/27
(Call 04/15/22)(a) .

    30       32,227  

Tenet Healthcare Corp.

   

5.13%, 11/01/27 (Call 11/01/22)(a)

    85       88,872  

6.25%, 02/01/27 (Call 02/01/22)(a)

    85       88,282  

US Renal Care Inc., 10.63%, 07/15/27
(Call 07/15/22)(a)

    30       31,193  
   

 

 

 
      758,775  
Security       
Par
(000)
    Value  
Holding Companies - Diversified — 0.8%            

Icahn Enterprises LP/Icahn Enterprises Finance Corp., 5.25%, 05/15/27 (Call 11/15/26)

  $     90     $     93,550  
   

 

 

 
Home Builders — 2.0%            

Beazer Homes USA Inc., 5.88%, 10/15/27 (Call 10/15/22)

    20       20,897  

Brookfield Residential Properties Inc./Brookfield Residential U.S. LLC, 6.25%, 09/15/27
(Call 09/15/22)(a)

    35       36,531  

Century Communities Inc., 6.75%, 06/01/27 (Call 06/01/22)

    25       26,568  

KB Home, 6.88%, 06/15/27 (Call 12/15/26)

    20       23,608  

Mattamy Group Corp., 5.25%, 12/15/27 (Call 12/15/22)(a)

    30       31,281  

Meritage Homes Corp., 5.13%, 06/06/27 (Call 12/06/26)

    15       16,551  

Taylor Morrison Communities Inc.

   

5.88%, 06/15/27 (Call 03/15/27)(a)(b)

    30       33,674  

6.63%, 07/15/27 (Call 07/15/22)(a)

    10       10,550  

Toll Brothers Finance Corp., 4.88%, 03/15/27 (Call 12/15/26)

    30       33,257  

Tri Pointe Homes Inc., 5.25%, 06/01/27 (Call 12/01/26)

    20       21,581  
   

 

 

 
      254,498  
Insurance — 1.5%            

Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer

   

4.25%, 10/15/27 (Call 10/15/23)(a)

    55       54,990  

6.75%, 10/15/27 (Call 10/15/22)(a)

    70       72,418  

GTCR AP Finance Inc., 8.00%, 05/15/27
(Call 05/15/22)(a)

    30       31,557  

Radian Group Inc., 4.88%, 03/15/27 (Call 09/15/26)

    30       32,735  
   

 

 

 
      191,700  
Internet — 2.2%            

Cablevision Lightpath LLC, 3.88%, 09/15/27
(Call 09/15/23)(a)

    30       29,196  

Getty Images Inc., 9.75%, 03/01/27 (Call 03/01/22)(a)

    15       15,930  

Go Daddy Operating Co. LLC/GD Finance Co. Inc., 5.25%, 12/01/27 (Call 06/01/22)(a)

    35       36,348  

GrubHub Holdings Inc., 5.50%, 07/01/27
(Call 07/01/22)(a)

    30       30,802  

Match Group Holdings II LLC, 5.00%, 12/15/27
(Call 12/15/22)(a)

    30       31,333  

Northwest Fiber LLC/Northwest Fiber Finance Sub Inc., 4.75%, 04/30/27 (Call 10/15/23)(a)

    20       19,529  

Twitter Inc., 3.88%, 12/15/27 (Call 09/15/27)(a)

    40       42,071  

Uber Technologies Inc., 7.50%, 09/15/27
(Call 09/15/22)(a)

    60       65,669  
   

 

 

 
      270,878  
Iron & Steel — 0.9%            

Allegheny Technologies Inc., 5.88%, 12/01/27 (Call 12/01/22)

    20       20,998  

Cleveland-Cliffs Inc., 5.88%, 06/01/27 (Call 06/01/22)

    35       36,370  

Commercial Metals Co., 5.38%, 07/15/27 (Call 07/15/22)

    15       15,704  

Mineral Resources Ltd., 8.13%, 05/01/27
(Call 05/01/22)(a)

    35       37,855  
   

 

 

 
      110,927  
Leisure Time — 2.7%            

Carnival Corp.

   

5.75%, 03/01/27 (Call 12/01/26)(a)

    200       203,500  

9.88%, 08/01/27 (Call 02/01/24)(a)

    55       63,388  

Royal Caribbean Cruises Ltd., 7.50%, 10/15/27

    15       17,536  

Viking Cruises Ltd., 5.88%, 09/15/27 (Call 09/15/22)(a)

    50       48,487  
   

 

 

 
      332,911  
Lodging — 2.6%            

Boyd Gaming Corp., 4.75%, 12/01/27 (Call 12/01/22)

    60       61,800  

Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., 4.88%, 04/01/27 (Call 04/01/22)

    35       36,233  

Melco Resorts Finance Ltd., 5.63%, 07/17/27
(Call 07/17/22)(d)

    35       35,032  

MGM China Holdings Ltd., 4.75%, 02/01/27
(Call 02/01/24)(a)

    35       33,583  

MGM Resorts International, 5.50%, 04/15/27 (Call 01/15/27)

    35       37,703  

Travel + Leisure Co., 6.00%, 04/01/27 (Call 01/01/27)

    25       27,283  

Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.25%, 05/15/27 (Call 02/15/27)(a)

    55       55,717  

 

46  

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® 2027 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Lodging (continued)  

Wynn Macau Ltd., 5.50%, 10/01/27 (Call 10/01/22)(a)

  $     35     $     32,557  
   

 

 

 
      319,908  
Machinery — 0.9%  

Granite US Holdings Corp., 11.00%, 10/01/27 (Call 10/01/22)(a)

    15       16,434  

TK Elevator U.S. Newco Inc., 5.25%, 07/15/27 (Call 07/15/23)(a)

    95       96,831  
   

 

 

 
      113,265  
Manufacturing — 0.2%  

Amsted Industries Inc., 5.63%, 07/01/27 (Call 07/01/22)(a)

    20       20,845  
   

 

 

 
Media — 10.8%  

CCO Holdings LLC/CCO Holdings Capital Corp., 5.13%, 05/01/27 (Call 05/01/22)(a)

    175       181,545  

Clear Channel Worldwide Holdings Inc., 5.13%, 08/15/27 (Call 08/15/22)(a)

    75       76,969  

CSC Holdings LLC, 5.50%, 04/15/27 (Call 04/15/22)(a)

    85       87,767  

DIRECTV Holdings LLC/DIRECTV Financing Co. Inc., 5.88%, 08/15/27 (Call 08/15/23)(a)

    130       134,922  

Entercom Media Corp., 6.50%, 05/01/27 (Call 05/01/22)(a)

    30       30,163  

Gray Television Inc., 7.00%, 05/15/27
(Call 05/15/22)(a)

    60       64,344  

iHeartCommunications Inc.

   

5.25%, 08/15/27 (Call 08/15/22)(a)

    45       46,063  

8.38%, 05/01/27 (Call 05/01/22)(b)

    85       90,525  

LCPR Senior Secured Financing DAC, 6.75%, 10/15/27 (Call 10/15/22)(a)

    85       89,684  

Midcontinent Communications/Midcontinent Finance Corp., 5.38%, 08/15/27 (Call 08/15/22)(a)

    20       20,793  

Nexstar Media Inc., 5.63%, 07/15/27 (Call 07/15/22)(a)

    100       105,471  

Scripps Escrow Inc., 5.88%, 07/15/27
(Call 07/15/22)(a)

    30       30,627  

Sinclair Television Group Inc., 5.13%, 02/15/27 (Call 11/15/21)(a)

    20       19,283  

Sirius XM Radio Inc., 5.00%, 08/01/27
(Call 08/01/22)(a)

    85       88,827  

Univision Communications Inc., 6.63%, 06/01/27 (Call 06/01/23)(a)

    90       97,402  

Videotron Ltd., 5.13%, 04/15/27 (Call 04/15/22)(a)

    35       36,247  

Ziggo Bond Co. BV, 6.00%, 01/15/27 (Call 01/15/22)(a)

    35       36,167  

Ziggo BV, 5.50%, 01/15/27 (Call 01/15/22)(a)

    100       103,125  
   

 

 

 
      1,339,924  
Metal Fabricate & Hardware — 0.3%  

Advanced Drainage Systems Inc., 5.00%, 09/30/27 (Call 09/30/22)(a)

    20       20,822  

Park-Ohio Industries Inc., 6.63%, 04/15/27 (Call 04/15/22)

    20       19,007  
   

 

 

 
      39,829  
Mining — 1.5%  

Alcoa Nederland Holding BV, 5.50%, 12/15/27 (Call 06/15/23)(a)

    55       58,985  

Compass Minerals International Inc., 6.75%, 12/01/27 (Call 12/01/22)(a)

    30       31,810  

FMG Resources August 2006 Pty Ltd., 4.50%, 09/15/27 (Call 06/15/27)(a)

    35       36,693  

Freeport-McMoRan Inc., 5.00%, 09/01/27 (Call 09/01/22)

    35       36,534  

New Gold Inc., 7.50%, 07/15/27 (Call 07/15/23)(a)

    25       26,992  
   

 

 

 
      191,014  
Office & Business Equipment — 0.2%  

Pitney Bowes Inc., 6.88%, 03/15/27
(Call 03/15/24)(a)(b)

    20       20,788  
   

 

 

 
Oil & Gas — 5.3%  

Apache Corp., 4.88%, 11/15/27 (Call 05/15/27)

    25       27,197  

Ascent Resources Utica Holdings LLC/ARU Finance Corp., 9.00%, 11/01/27 (Call 11/01/26)(a)

    20       27,350  

Baytex Energy Corp., 8.75%, 04/01/27
(Call 04/01/23)(a)

    30       32,037  

Centennial Resource Production LLC, 6.88%, 04/01/27 (Call 04/01/22)(a)

    20       20,429  

CNX Resources Corp., 7.25%, 03/14/27 (Call 03/14/22)(a)

    35       37,166  
Security       
Par
(000)
    Value  
Oil & Gas (continued)  

EQT Corp., 3.90%, 10/01/27 (Call 07/01/27)

  $     75     $     79,955  

MEG Energy Corp., 7.13%, 02/01/27 (Call 02/01/23)(a)

    65       68,295  

Moss Creek Resources Holdings Inc., 10.50%, 05/15/27 (Call 05/15/22)(a)

    30       29,767  

Murphy Oil Corp., 5.88%, 12/01/27 (Call 12/01/22)

    30       31,257  

Occidental Petroleum Corp.

   

3.00%, 02/15/27 (Call 11/15/26)

    40       40,000  

8.50%, 07/15/27 (Call 01/15/27)

    30       37,506  

Parkland Corp., 5.88%, 07/15/27 (Call 07/15/22)(a)

    30       31,681  

SM Energy Co., 6.63%, 01/15/27 (Call 01/15/22)

    25       25,827  

Southwestern Energy Co., 7.75%, 10/01/27 (Call 10/01/22)

    30       32,250  

Sunoco LP/Sunoco Finance Corp., 6.00%, 04/15/27 (Call 04/15/22)

    35       36,671  

Transocean Inc., 11.50%, 01/30/27 (Call 07/30/23)(a)

    35       36,085  

Transocean Poseidon Ltd., 6.88%, 02/01/27 (Call 02/01/22)(a)

    40       39,997  

Viper Energy Partners LP, 5.38%, 11/01/27 (Call 11/01/22)(a)

    30       31,270  
   

 

 

 
      664,740  
Oil & Gas Services — 0.9%  

Archrock Partners LP/Archrock Partners Finance Corp., 6.88%, 04/01/27 (Call 04/01/22)(a)

    30       31,253  

CGG SA, 8.75%, 04/01/27 (Call 04/01/24)(a)

    30       29,655  

USA Compression Partners LP/USA Compression Finance Corp., 6.88%, 09/01/27 (Call 09/01/22)

    45       46,668  
   

 

 

 
      107,576  
Packaging & Containers — 3.7%  

ARD Finance SA, 6.50%, 06/30/27 (Call 11/15/22),

   

(7.25% PIK)(a)(c)

    60       62,843  

Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc., 5.25%, 08/15/27 (Call 08/15/22)(a)

    105       104,864  

Berry Global Inc., 5.63%, 07/15/27 (Call 07/15/22)(a)

    30       31,403  

Graphic Packaging International LLC, 4.75%, 07/15/27 (Call 04/15/27)(a)

    15       16,236  

Greif Inc., 6.50%, 03/01/27 (Call 03/01/22)(a)

    30       31,266  

LABL Inc., 10.50%, 07/15/27 (Call 07/15/22)(a)

    40       42,399  

Owens-Brockway Glass Container Inc., 6.63%, 05/13/27 (Call 05/15/23)(a)

    40       42,716  

Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu, 4.00%, 10/15/27 (Call 10/15/23)(a)

    60       58,692  

Sealed Air Corp., 4.00%, 12/01/27 (Call 09/01/27)(a)

    30       31,522  

Trivium Packaging Finance BV, 8.50%, 08/15/27 (Call 08/15/22)(a).

    35       36,936  
   

 

 

 
      458,877  
Pharmaceuticals — 2.9%  

Bausch Health Americas Inc., 8.50%, 01/31/27 (Call 07/31/22)(a)

    100       106,413  

Bausch Health Companies Inc., 5.75%, 08/15/27 (Call 08/15/22)(a)

    30       31,421  

Endo Dac/Endo Finance LLC/Endo Finco Inc., 9.50%, 07/31/27 (Call 07/31/23)(a)(b)

    50       49,647  

Horizon Therapeutics USA Inc., 5.50%, 08/01/27 (Call 08/01/22)(a)

    35       37,038  

Par Pharmaceutical Inc., 7.50%, 04/01/27
(Call 04/01/22)(a)

    125       126,105  

Vizient Inc., 6.25%, 05/15/27 (Call 05/15/22)(a)

    15       15,696  
   

 

 

 
      366,320  
Pipelines — 3.2%  

Antero Midstream Partners LP/Antero Midstream Finance Corp., 5.75%, 03/01/27 (Call 03/01/22)(a)

    35       36,259  

Buckeye Partners LP, 4.13%, 12/01/27 (Call 09/01/27)

    25       25,224  

Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp., 5.63%, 05/01/27 (Call 05/01/22)(a)

    35       35,929  

DCP Midstream Operating LP, 5.63%, 07/15/27 (Call 04/15/27)

    30       34,245  

EQM Midstream Partners LP, 6.50%, 07/01/27 (Call 01/01/27)(a)

    50       55,637  

 

 

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

  47


Schedule of Investments  (continued)

October 31, 2021

  

iShares® iBonds® 2027 Term High Yield and Income ETF

(Percentages shown are based on Net Assets)

 

Security       
Par
(000)
    Value  
Pipelines (continued)  

Genesis Energy LP/Genesis Energy Finance Corp., 8.00%, 01/15/27 (Call 01/15/24)

  $     60     $     60,304  

Global Partners LP/GLP Finance Corp., 7.00%, 08/01/27 (Call 08/01/22)

    20       20,834  

NuStar Logistics LP, 5.63%, 04/28/27 (Call 01/28/27)

    30       31,570  

Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., 6.00%, 03/01/27 (Call 03/01/23)(a)

    25       26,005  

Targa Resources Partners LP/Targa Resources Partners Finance Corp.

   

5.38%, 02/01/27 (Call 02/01/22)

    30       31,052  

6.50%, 07/15/27 (Call 07/15/22)

    35       37,625  
   

 

 

 
      394,684  
Real Estate — 0.3%  

Realogy Group LLC/Realogy Co-Issuer Corp., 9.38%, 04/01/27 (Call 04/01/22)(a)

    30       32,815  
   

 

 

 
Real Estate Investment Trusts — 4.5%  

Blackstone Mortgage Trust Inc., 3.75%, 01/15/27 (Call 10/15/26)(a)

    25       24,857  

Brookfield Property REIT Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LL, 4.50%, 04/01/27 (Call 10/01/23)(a)

    40       39,032  

Global Net Lease Inc./Global Net Lease Operating Partnership LP, 3.75%, 12/15/27 (Call 09/15/27)(a)

    30       29,573  

Iron Mountain Inc., 4.88%, 09/15/27 (Call 09/15/22)(a)

    60       61,871  

Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 4.25%, 02/01/27 (Call 02/01/23)(a)

    35       35,160  

MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer Inc., 5.75%, 02/01/27 (Call 11/01/26)

    60       68,501  

MPT Operating Partnership LP/MPT Finance Corp., 5.00%, 10/15/27 (Call 10/15/22)

    85       89,457  

RHP Hotel Properties LP/RHP Finance Corp., 4.75%, 10/15/27 (Call 10/15/22)

    35       35,882  

SBA Communications Corp., 3.88%, 02/15/27 (Call 02/15/23)

    85       87,621  

Service Properties Trust

   

4.95%, 02/15/27 (Call 08/15/26)

    20       19,702  

5.50%, 12/15/27 (Call 09/15/27)(b)

    30       31,436  

VICI Properties LP/VICI Note Co. Inc., 3.75%, 02/15/27 (Call 02/15/23)(a)

    40       41,105  
   

 

 

 
      564,197  
Retail — 2.5%  

Academy Ltd., 6.00%, 11/15/27 (Call 11/15/23)(a)

    30       31,964  

Bath & Body Works Inc., 6.69%, 01/15/27

    15       17,187  

BCPE Ulysses Intermediate Inc., 7.75%, 04/01/27 (Call 04/01/23), (8.50% PIK)(a)(c)

    25       23,967  

Carvana Co., 5.50%, 04/15/27 (Call 04/15/24)(a)

    35       35,355  

KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, 4.75%, 06/01/27 (Call 06/01/22)(a)

    35       36,289  

Lithia Motors Inc., 4.63%, 12/15/27 (Call 12/15/22)(a)

    20       21,163  

Murphy Oil USA Inc., 5.63%, 05/01/27 (Call 05/01/22)

    15       15,642  

Nordstrom Inc., 4.00%, 03/15/27 (Call 12/15/26)

    20       20,661  

QVC Inc., 4.75%, 02/15/27 (Call 11/15/26)(b)

    30       31,448  

Staples Inc., 10.75%, 04/15/27 (Call 04/15/22)(a)

    55       52,503  

Suburban Propane Partners LP/Suburban Energy Finance Corp., 5.88%, 03/01/27 (Call 03/01/22)

    20       20,792  
   

 

 

 
      306,971  
Semiconductors — 0.3%  

Amkor Technology Inc., 6.63%, 09/15/27 (Call 03/15/22)(a)

    30       31,937  
   

 

 

 
Software — 1.5%  

CDK Global Inc., 4.88%, 06/01/27 (Call 06/01/22)

    35       36,428  

Granite Merger Sub 2 Inc., 11.00%, 07/15/27 (Call 07/15/22)(a)

    15       17,100  
Security   Par/
Shares
(000)
    Value  
Software (continued)  

SS&C Technologies Inc., 5.50%, 09/30/27 (Call 03/30/22)(a)

  $     125     $     131,671  
   

 

 

 
      185,199  
Telecommunications — 6.8%  

Altice France Holding SA, 10.50%, 05/15/27 (Call 05/15/22)(a)

    100       108,355  

Altice France SA/France, 8.13%, 02/01/27 (Call 02/01/22)(a)

    100       107,466  

CommScope Inc., 8.25%, 03/01/27
(Call 03/01/22)(a)

    60       61,147  

CommScope Technologies LLC, 5.00%, 03/15/27 (Call 03/15/22)(a)(b)

    35       32,507  

Frontier Communications Holdings LLC, 5.88%, 10/15/27 (Call 10/15/23)(a)

    70       73,580  

Level 3 Financing Inc., 4.63%, 09/15/27
(Call 09/15/22)(a)

    60       61,527  

LogMeIn Inc., 5.50%, 09/01/27 (Call 09/01/23)(a)

    60       60,095  

Lumen Technologies Inc., 4.00%, 02/15/27 (Call 02/15/23)(a)

    75       75,302  

Nokia OYJ, 4.38%, 06/12/27

    30       32,342  

Telesat Canada/Telesat LLC

   

4.88%, 06/01/27 (Call 12/01/22)(a)

    25       22,385  

6.50%, 10/15/27 (Call 10/15/22)(a)

    30       24,357  

VEON Holdings BV, 3.38%, 11/25/27 (Call 08/25/27)(a)

    65       64,957  

ViaSat Inc., 5.63%, 04/15/27 (Call 04/15/22)(a)

    35       36,401  

Zayo Group Holdings Inc., 4.00%, 03/01/27 (Call 11/29/21)(a)

    85       82,538  
   

 

 

 
      842,959  
Toys, Games & Hobbies — 0.3%  

Mattel Inc., 5.88%, 12/15/27 (Call 12/15/22)(a)

    35       37,696  
   

 

 

 

Transportation — 0.3%

 

 

Watco Companies LLC/Watco Finance Corp., 6.50%, 06/15/27 (Call 06/15/23)(a)

    35       37,272  
   

 

 

 

Trucking & Leasing — 0.3%

 

Fortress Transportation and Infrastructure Investors LLC, 9.75%, 08/01/27
(Call 08/01/23)(a)

    30       33,781  
   

 

 

 

Total Corporate Bonds & Notes — 97.9%
(Cost: $12,286,072)

 

    12,161,585  
   

 

 

 
Short-Term Investments            

Money Market Funds — 6.1%

   

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

    508       508,415  

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

    250       250,000  
   

 

 

 
      758,415  
   

 

 

 

Total Short-Term Investments — 6.1%
(Cost: $758,415)

 

    758,415  
   

 

 

 

Total Investments in Securities — 104.0%
(Cost: $13,044,487)

 

    12,920,000  

Other Assets, Less Liabilities — (4.0)%

 

    (494,854
   

 

 

 

Net Assets — 100.0%

 

  $   12,425,146  
   

 

 

 

 

(a) 

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

(b) 

All or a portion of this security is on loan.

(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.

 

 

48  

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® 2027 Term High Yield and Income ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the period 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
07/07/21(a)
    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

  $     $ 508,415 (b)    $     $     $     $ 508,415       508     $ 235 (c)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

          250,000 (b)                        250,000       250       2        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $     $     $ 758,415       $ 237     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) 

The Fund commenced operations on July 07, 2021.

(b) 

Represents net amount purchased (sold).

(c) 

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

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

   $        $ 12,161,585        $        $ 12,161,585  

Money Market Funds

     758,415                            758,415  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $     758,415        $ 12,161,585        $             —        $ 12,920,000  
  

 

 

      

 

 

      

 

 

      

 

 

 

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

  49


 

Statements of Assets and Liabilities

October 31, 2021

 

     iShares
iBonds 2021
Term High
Yield and
Income ETF
    iShares
iBonds 2022
Term High
Yield and
Income ETF
    iShares
iBonds 2023
Term High
Yield and
Income ETF
     iShares
iBonds 2024
Term High
Yield and
Income ETF
 

ASSETS

        

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

        

Unaffiliated(b)

  $ 7,612,511     $ 68,246,271     $ 80,895,429      $ 51,222,743  

Affiliated(c)

    31,478,519       9,514,299       11,690,354        4,755,592  

Cash

    6,392       897       1,580,250        49,513  

Receivables:

        

Investments sold

    180,000       146,556       713,298         

Securities lending income — Affiliated

    95       1,685       1,806        1,711  

Capital shares sold

                22,691        235,650  

Dividends

    121       7       12        2  

Interest

    191,383       798,325       1,262,343        824,132  
 

 

 

   

 

 

   

 

 

    

 

 

 

Total assets

    39,469,021       78,708,040       96,166,183        57,089,343  
 

 

 

   

 

 

   

 

 

    

 

 

 

LIABILITIES

        

Collateral on securities loaned, at value

    838,982       6,234,596       5,910,698        4,145,526  

Payables:

        

Investments purchased

          2,367,387       6,685,220        1,202,159  

Investment advisory fees

    10,259       20,765       23,801        14,229  
 

 

 

   

 

 

   

 

 

    

 

 

 

Total liabilities

    849,241       8,622,748       12,619,719        5,361,914  
 

 

 

   

 

 

   

 

 

    

 

 

 

NET ASSETS

  $ 38,619,780     $ 70,085,292     $ 83,546,464      $ 51,727,429  
 

 

 

   

 

 

   

 

 

    

 

 

 

NET ASSETS CONSIST OF:

        

Paid-in capital

  $ 39,232,268     $ 70,108,368     $ 83,345,871      $ 51,843,740  

Accumulated earnings (loss)

    (612,488     (23,076     200,593        (116,311
 

 

 

   

 

 

   

 

 

    

 

 

 

NET ASSETS

  $ 38,619,780     $ 70,085,292     $ 83,546,464      $ 51,727,429  
 

 

 

   

 

 

   

 

 

    

 

 

 

Shares outstanding

    1,600,000       2,900,000       3,400,000        2,100,000  
 

 

 

   

 

 

   

 

 

    

 

 

 

Net asset value

  $ 24.14     $ 24.17     $ 24.57      $ 24.63  
 

 

 

   

 

 

   

 

 

    

 

 

 

Shares authorized

    Unlimited       Unlimited       Unlimited        Unlimited  
 

 

 

   

 

 

   

 

 

    

 

 

 

Par value

    None       None       None        None  
 

 

 

   

 

 

   

 

 

    

 

 

 

(a) Securities loaned, at value

  $ 795,282     $ 5,913,575     $ 5,610,600      $ 3,989,957  

(b) Investments, at cost — Unaffiliated

  $ 7,613,118     $ 68,046,743     $ 80,505,121      $ 50,586,282  

(c)  Investments, at cost — Affiliated

  $ 31,478,096     $ 9,513,955     $ 11,689,481      $ 4,755,028  

See notes to financial statements.

 

 

50  

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


Statements of Assets and Liabilities  (continued)

October 31, 2021

 

     iShares
iBonds 2025
Term High
Yield and
Income ETF
    iShares
iBonds 2026
Term High
Yield and
Income ETF
     iShares
iBonds 2027
Term High
Yield and
Income ETF
 

ASSETS

      

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

      

Unaffiliated(b)

  $ 38,892,469     $ 19,992,383      $ 12,161,585  

Affiliated(c)

    4,838,076       2,350,858        758,415  

Cash

    68,253       849        4,842  

Receivables:

      

Investments sold

    13,953               

Securities lending income — Affiliated

    1,106       345        171  

Dividends

    2              1  

Interest

    656,066       270,760        182,467  
 

 

 

   

 

 

    

 

 

 

Total assets

    44,469,925       22,615,195        13,107,481  
 

 

 

   

 

 

    

 

 

 

LIABILITIES

      

Collateral on securities loaned, at value

    3,718,697       1,831,026        508,415  

Payables:

      

Investments purchased

    920,741       457,537        170,230  

Investment advisory fees

    11,811       6,023        3,690  
 

 

 

   

 

 

    

 

 

 

Total liabilities

    4,651,249       2,294,586        682,335  
 

 

 

   

 

 

    

 

 

 

NET ASSETS

  $ 39,818,676     $ 20,320,609      $ 12,425,146  
 

 

 

   

 

 

    

 

 

 

NET ASSETS CONSIST OF:

      

Paid-in capital

  $ 40,058,164     $ 20,202,554      $ 12,517,854  

Accumulated earnings (loss)

    (239,488     118,055        (92,708
 

 

 

   

 

 

    

 

 

 

NET ASSETS

  $ 39,818,676     $ 20,320,609      $ 12,425,146  
 

 

 

   

 

 

    

 

 

 

Shares outstanding

    1,600,000       800,000        500,000  
 

 

 

   

 

 

    

 

 

 

Net asset value

  $ 24.89     $ 25.40      $ 24.85  
 

 

 

   

 

 

    

 

 

 

Shares authorized

    Unlimited       Unlimited        Unlimited  
 

 

 

   

 

 

    

 

 

 

Par value

    None       None        None  
 

 

 

   

 

 

    

 

 

 

(a) Securities loaned, at value

  $ 3,587,381     $ 1,764,463      $ 488,694  

(b) Investments, at cost — Unaffiliated

  $ 38,320,494     $ 19,824,337      $ 12,286,072  

(c)  Investments, at cost — Affiliated

  $ 4,837,297     $ 2,350,858      $ 758,415  

See notes to financial statements.

 

 

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

  51


Statements of Operations

Year Ended October 31, 2021

 

    

iShares
iBonds
2021 Term

High Yield
and
Income
ETF

    iShares
iBonds 2022
Term High
Yield and
Income ETF
    iShares
iBonds 2023
Term High
Yield and
Income ETF
    iShares
iBonds 2024
Term High
Yield and
Income ETF
 

INVESTMENT INCOME

       

Dividends — Affiliated

  $ 677     $ 148     $ 110     $ 102  

Interest — Unaffiliated

    714,038       1,427,906       2,093,572       1,378,556  

Payment-in-kind interest — Unaffiliated

                114,536        

Securities lending income — Affiliated — net

    4,311       13,080       15,375       13,406  

Other income — Unaffiliated

          1,958       1,525       2,979  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    719,026       1,443,092       2,225,118       1,395,043  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory fees

    131,673       164,561       163,946       102,997  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    131,673       164,561       163,946       102,997  

Less:

       

Investment advisory fees waived

    (6,191     (1,021     (706     (640
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

    125,482       163,540       163,240       102,357  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    593,544       1,279,552       2,061,878       1,292,686  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — Unaffiliated

    93,389       506,618       555,359       165,733  

Investments — Affiliated

    (471     (713     (804     (337

In-kind redemptions — Unaffiliated

    2,571                    
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gain

    95,489       505,905       554,555       165,396  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — Unaffiliated

    (62,143     (132,831     161,426       535,690  

Investments — Affiliated

    2       25       (95     (42
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

    (62,141     (132,806     161,331       535,648  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

    33,348       373,099       715,886       701,044  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 626,892     $ 1,652,651     $ 2,777,764     $ 1,993,730  
 

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

52  

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


Statements of Operations  (continued)

Year Ended October 31, 2021

 

     iShares
iBonds 2025
Term High
Yield and
Income ETF
    iShares
iBonds
2026 Term
High Yield
and
Income
ETF(a)
    iShares
iBonds
2027 Term
High Yield
and
Income
ETF(b)
 

INVESTMENT INCOME

     

Dividends — Affiliated

  $ 53     $ 41     $ 2  

Interest — Unaffiliated

    1,333,744       723,491       138,271  

Securities lending income — Affiliated — net

    8,812       2,593       235  

Other income — Unaffiliated

    797       1,052       100  
 

 

 

   

 

 

   

 

 

 

Total investment income

    1,343,406       727,177       138,608  
 

 

 

   

 

 

   

 

 

 

EXPENSES

     

Investment advisory fees

    95,380       55,167       13,716  
 

 

 

   

 

 

   

 

 

 

Total expenses

    95,380       55,167       13,716  

Less:

     

Investment advisory fees waived

    (375     (198     (20
 

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

    95,005       54,969       13,696  
 

 

 

   

 

 

   

 

 

 

Net investment income

    1,248,401       672,208       124,912  
 

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

     

Net realized gain (loss) from:

     

Investments — Unaffiliated

    120,946       (58,928     119  

Investments — Affiliated

    (504     (168      
 

 

 

   

 

 

   

 

 

 

Net realized gain (loss)

    120,442       (59,096     119  
 

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

     

Investments — Unaffiliated

    372,746       168,046       (124,487

Investments — Affiliated

    13              
 

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

    372,759       168,046       (124,487
 

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain (loss)

    493,201       108,950       (124,368
 

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 1,741,602     $ 781,158     $ 544  
 

 

 

   

 

 

   

 

 

 

 

(a) 

For the period from November 10, 2020 (commencement of operations) to October 31, 2021.

(b) 

For the period from July 7, 2021 (commencement of operations) to October 31, 2021.

See notes to financial statements.

 

 

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

  53


Statements of Changes in Net Assets

 

    iShares
iBonds 2021 Term High Yield and
Income ETF
    iShares
iBonds 2022 Term High Yield and
Income ETF
 
     Year Ended
10/31/21
    Year Ended
10/31/20
    Year Ended
10/31/21
    Year Ended
10/31/20
 

INCREASE (DECREASE) IN NET ASSETS

       

OPERATIONS

       

Net investment income

  $ 593,544     $ 631,929     $ 1,279,552     $ 776,460  

Net realized gain (loss)

    95,489       (773,112     505,905       (599,785

Net change in unrealized appreciation (depreciation)

    (62,141     126,115       (132,806     379,272  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    626,892       (15,068     1,652,651       555,947  
 

 

 

   

 

 

   

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

       

Decrease in net assets resulting from distributions to shareholders

    (702,434     (636,214     (1,338,242     (746,451
 

 

 

   

 

 

   

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

       

Net increase in net assets derived from capital share transactions

    12,115,369       14,777,663       50,744,075       9,379,420  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS

       

Total increase in net assets

    12,039,827       14,126,381       51,058,484       9,188,916  

Beginning of period

    26,579,953       12,453,572       19,026,808       9,837,892  
 

 

 

   

 

 

   

 

 

   

 

 

 

End of period

  $ 38,619,780     $ 26,579,953     $ 70,085,292     $ 19,026,808  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

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

See notes to financial statements.

 

 

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Statements of Changes in Net Assets  (continued)

 

    iShares
iBonds 2023 Term High Yield and
Income ETF
    iShares
iBonds 2024 Term High Yield and
Income ETF
 
     Year Ended
10/31/21
    Year Ended
10/31/20
    Year Ended
10/31/21
    Year Ended
10/31/20
 

INCREASE (DECREASE) IN NET ASSETS

       

OPERATIONS

       

Net investment income

  $ 2,061,878     $ 756,119     $ 1,292,686     $ 625,296  

Net realized gain (loss)

    554,555       (847,890     165,396       (1,028,239

Net change in unrealized appreciation (depreciation)

    161,331       270,583       535,648       (49,506
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    2,777,764       178,812       1,993,730       (452,449
 

 

 

   

 

 

   

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

       

Decrease in net assets resulting from distributions to shareholders

    (1,956,106     (769,276     (1,275,100     (655,125
 

 

 

   

 

 

   

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

       

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

    66,191,647       4,759,599       41,654,956       (2,142,843
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS

       

Total increase (decrease) in net assets

    67,013,305       4,169,135       42,373,586       (3,250,417

Beginning of period

    16,533,159       12,364,024       9,353,843       12,604,260  
 

 

 

   

 

 

   

 

 

   

 

 

 

End of period

  $ 83,546,464     $ 16,533,159     $ 51,727,429     $ 9,353,843  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

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

See notes to financial statements.

 

 

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

  55


 

Statements of Changes in Net Assets  (continued)

 

    iShares
iBonds 2025 Term High Yield and
Income ETF
     iShares
iBonds 2026
Term High
Yield and
Income ETF
 
     Year Ended
10/31/21
    Year Ended
10/31/20
    

Period From

11/10/20(a)

to 10/31/21

 

INCREASE (DECREASE) IN NET ASSETS

 

OPERATIONS

 

Net investment income

  $ 1,248,401     $ 791,768      $ 672,208  

Net realized gain (loss)

    120,442       (1,033,686      (59,096

Net change in unrealized appreciation (depreciation)

    372,759       96,035        168,046  
 

 

 

   

 

 

    

 

 

 

Net increase (decrease) in net assets resulting from operations

    1,741,602       (145,883      781,158  
 

 

 

   

 

 

    

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(b)

 

Decrease in net assets resulting from distributions to shareholders

    (1,311,182     (790,698      (663,103
 

 

 

   

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS

 

Net increase in net assets derived from capital share transactions

    22,540,953       5,218,399        20,202,554  
 

 

 

   

 

 

    

 

 

 

NET ASSETS

 

Total increase in net assets

    22,971,373       4,281,818        20,320,609  

Beginning of period

    16,847,303       12,565,485         
 

 

 

   

 

 

    

 

 

 

End of period

  $ 39,818,676     $ 16,847,303      $ 20,320,609  
 

 

 

   

 

 

    

 

 

 

 

(a) 

Commencement of operations.

(b) 

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

See notes to financial statements.

 

 

56  

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Statements of Changes in Net Assets  (continued)

 

    iShares
iBonds 2027
Term High
Yield and
Income ETF
 
    

Period From

07/07/21(a)

to 10/31/21

 

INCREASE (DECREASE) IN NET ASSETS

 

OPERATIONS

 

Net investment income

  $ 124,912  

Net realized gain

    119  

Net change in unrealized appreciation (depreciation)

    (124,487
 

 

 

 

Net increase in net assets resulting from operations

    544  
 

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(b)

 

Decrease in net assets resulting from distributions to shareholders

    (93,252
 

 

 

 

CAPITAL SHARE TRANSACTIONS

 

Net increase in net assets derived from capital share transactions

    12,517,854  
 

 

 

 

NET ASSETS

 

Total increase in net assets

    12,425,146  

Beginning of period

     
 

 

 

 

End of period

  $ 12,425,146  
 

 

 

 

 

(a) 

Commencement of operations.

(b) 

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

See notes to financial statements.

 

 

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

  57


Financial Highlights

(For a share outstanding throughout each period)

 

    iShares iBonds 2021 Term High Yield and Income ETF
    Year Ended
10/31/21
     Year Ended
10/31/20
    

Period From

05/07/19(a)

to 10/31/19

 
       

Net asset value, beginning of period

  $ 24.16      $ 24.91      $ 25.00  
 

 

 

    

 

 

    

 

 

 

Net investment income(b)

    0.38        0.88        0.58  

Net realized and unrealized gain (loss)(c)

    0.08        (0.67      (0.20
 

 

 

    

 

 

    

 

 

 

Net increase from investment operations

    0.46        0.21        0.38  
 

 

 

    

 

 

    

 

 

 

Distributions(d)

       

From net investment income

    (0.48      (0.96      (0.47
 

 

 

    

 

 

    

 

 

 

Total distributions

    (0.48      (0.96      (0.47
 

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 24.14      $ 24.16      $ 24.91  
 

 

 

    

 

 

    

 

 

 

Total Return(e)

       

Based on net asset value

    1.94      0.90      1.54 %(f) 
 

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets

       

Total expenses

    0.35      0.35      0.35 %(g) 
 

 

 

    

 

 

    

 

 

 

Total expenses after fees waived

    0.33      0.35      0.35 %(g) 
 

 

 

    

 

 

    

 

 

 

Net investment income

    1.58      3.66      4.76 %(g) 
 

 

 

    

 

 

    

 

 

 

Supplemental Data

       

Net assets, end of period (000)

  $ 38,620      $ 26,580      $ 12,454  
 

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(h)

    1      50      17 %(f)  
 

 

 

    

 

 

    

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

58  

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares iBonds 2022 Term High Yield and Income ETF
    Year Ended
10/31/21
     Year Ended
10/31/20
    

Period From

05/07/19(a)

to 10/31/19

 
       

Net asset value, beginning of period

  $ 23.78      $ 24.59      $ 25.00  
 

 

 

    

 

 

    

 

 

 

Net investment income(b)

    0.66        1.32        0.64  

Net realized and unrealized gain (loss)(c)

    0.57        (0.83      (0.51
 

 

 

    

 

 

    

 

 

 

Net increase from investment operations

    1.23        0.49        0.13  
 

 

 

    

 

 

    

 

 

 

Distributions(d)

       

From net investment income

    (0.84      (1.30      (0.54
 

 

 

    

 

 

    

 

 

 

Total distributions

    (0.84      (1.30      (0.54
 

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 24.17      $ 23.78      $ 24.59  
 

 

 

    

 

 

    

 

 

 

Total Return(e)

       

Based on net asset value

    5.22      2.15      0.56 %(f) 
 

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets

       

Total expenses

    0.35      0.35      0.35 %(g) 
 

 

 

    

 

 

    

 

 

 

Total expenses after fees waived

    0.35      0.35      0.35 %(g) 
 

 

 

    

 

 

    

 

 

 

Net investment income

    2.72      5.61      5.34 %(g) 
 

 

 

    

 

 

    

 

 

 

Supplemental Data

       

Net assets, end of period (000)

  $ 70,085      $ 19,027      $ 9,838  
 

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(h)

    33      68      14 %(f)  
 

 

 

    

 

 

    

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  59


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares iBonds 2023 Term High Yield and Income ETF
    Year Ended
10/31/21
     Year Ended
10/31/20
    

Period From

05/07/19(a)

to 10/31/19

 
       

Net asset value, beginning of period

  $ 23.62      $ 24.73      $ 25.00  
 

 

 

    

 

 

    

 

 

 

Net investment income(b)

    1.08        1.33        0.69  
 

 

 

    

 

 

    

 

 

 

Net realized and unrealized gain (loss)(c)

    1.04        (1.08      (0.40
 

 

 

    

 

 

    

 

 

 

Net increase from investment operations

    2.12        0.25        0.29  
 

 

 

    

 

 

    

 

 

 

Distributions(d)

       

From net investment income

    (1.17      (1.36      (0.56
 

 

 

    

 

 

    

 

 

 

Total distributions

    (1.17      (1.36      (0.56
 

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 24.57      $ 23.62      $ 24.73  
 

 

 

    

 

 

    

 

 

 

Total Return(e)

       

Based on net asset value

    9.12      1.16      1.19 %(f) 
 

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets

       

Total expenses

    0.35      0.35      0.35 %(g) 
 

 

 

    

 

 

    

 

 

 

Total expenses after fees waived

    0.35      0.35      0.35 %(g) 
 

 

 

    

 

 

    

 

 

 

Net investment income

    4.40      5.67      5.73 %(g) 
 

 

 

    

 

 

    

 

 

 

Supplemental Data

       

Net assets, end of period (000)

  $ 83,546      $ 16,533      $ 12,364  
 

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(h)

    46      51      9 %(f)  
 

 

 

    

 

 

    

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares iBonds 2024 Term High Yield and Income ETF
    Year Ended
10/31/21
     Year Ended
10/31/20
     Period From
05/07/19(a)
to 10/31/19
 
       

Net asset value, beginning of period

  $ 23.38      $ 25.21      $ 25.00  
 

 

 

    

 

 

    

 

 

 

Net investment income(b)

    1.08        1.33        0.68  

Net realized and unrealized gain (loss)(c)

    1.33        (1.79      0.09  
 

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    2.41        (0.46      0.77  
 

 

 

    

 

 

    

 

 

 

Distributions(d)

       

From net investment income

    (1.16      (1.37      (0.56
 

 

 

    

 

 

    

 

 

 

Total distributions

    (1.16      (1.37      (0.56
 

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 24.63      $ 23.38      $ 25.21  
 

 

 

    

 

 

    

 

 

 

Total Return(e)

       

Based on net asset value

    10.42      (1.72 )%       3.08 %(f) 
 

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets

       

Total expenses

    0.35      0.35      0.35 %(g) 
 

 

 

    

 

 

    

 

 

 

Total expenses after fees waived

    0.35      0.35      0.35 %(g) 
 

 

 

    

 

 

    

 

 

 

Net investment income

    4.39      5.61      5.55 %(g) 
 

 

 

    

 

 

    

 

 

 

Supplemental Data

       

Net assets, end of period (000)

  $ 51,727      $ 9,354      $ 12,604  
 

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(h)

    44      42      10 %(f)  
 

 

 

    

 

 

    

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  61


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares iBonds 2025 Term High Yield and Income ETF
    Year Ended
10/31/21
     Year Ended
10/31/20
     Period From
05/07/19(a)
to 10/31/19
 
       

Net asset value, beginning of period

  $ 24.07      $ 25.13      $ 25.00  
 

 

 

    

 

 

    

 

 

 

Net investment income(b)

    1.14        1.37        0.71  

Net realized and unrealized gain (loss)(c)

    0.95        (0.99      0.00 (d)  
 

 

 

    

 

 

    

 

 

 

Net increase from investment operations

    2.09        0.38        0.71  
 

 

 

    

 

 

    

 

 

 

Distributions(e)

       

From net investment income

    (1.27      (1.44      (0.58
 

 

 

    

 

 

    

 

 

 

Total distributions

    (1.27      (1.44      (0.58
 

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 24.89      $ 24.07      $ 25.13  
 

 

 

    

 

 

    

 

 

 

Total Return(f)

       

Based on net asset value

    8.77      1.71      2.87 %(g) 
 

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets

       

Total expenses

    0.35      0.35      0.35 %(h) 
 

 

 

    

 

 

    

 

 

 

Total expenses after fees waived

    0.35      0.35      0.35 %(h) 
 

 

 

    

 

 

    

 

 

 

Net investment income

    4.58      5.73      5.84 %(h) 
 

 

 

    

 

 

    

 

 

 

Supplemental Data

       

Net assets, end of period (000)

  $ 39,819      $ 16,847      $ 12,565  
 

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(i)

    29      42      5 %(g)  
 

 

 

    

 

 

    

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Rounds to less than $0.01.

(e) 

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

(f) 

Where applicable, assumes the reinvestment of distributions.

(g) 

Not annualized.

(h) 

Annualized.

(i) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

62  

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares iBonds
2026 Term
High Yield and
Income ETF
 
   

Period From

11/10/20(a)

to 10/31/21

 
   

Net asset value, beginning of period

  $ 25.00  
 

 

 

 

Net investment income(b)

    1.06  

Net realized and unrealized gain(c)

    0.37  
 

 

 

 

Net increase from investment operations

    1.43  
 

 

 

 

Distributions(d)

 

From net investment income

    (1.03
 

 

 

 

Total distributions

    (1.03
 

 

 

 

Net asset value, end of period

  $ 25.40  
 

 

 

 

Total Return(e)

 

Based on net asset value

    5.79 %(f) 
 

 

 

 

Ratios to Average Net Assets

 

Total expenses

    0.35 %(g) 
 

 

 

 

Total expenses after fees waived

    0.35 %(g) 
 

 

 

 

Net investment income

    4.26 %(g) 
 

 

 

 

Supplemental Data

 

Net assets, end of period (000)

  $ 20,321  
 

 

 

 

Portfolio turnover rate(h)

    35 %(f)  
 

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  63


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares iBonds

2027 Term
High Yield and
Income ETF

 
   

Period From

07/07/21(a)

to 10/31/21

 
   

Net asset value, beginning of period

  $ 25.00  
 

 

 

 

Net investment income(b)

    0.25  

Net realized and unrealized loss(c)

    (0.21
 

 

 

 

Net increase from investment operations

    0.04  
 

 

 

 

Distributions(d)

 

From net investment income

    (0.19
 

 

 

 

Total distributions

    (0.19
 

 

 

 

Net asset value, end of period

  $ 24.85  
 

 

 

 

Total Return(e)

 

Based on net asset value

    0.15 %(f) 
 

 

 

 

Ratios to Average Net Assets

 

Total expenses

    0.35 %(g) 
 

 

 

 

Total expenses after fees waived

    0.35 %(g) 
 

 

 

 

Net investment income

    3.19 %(g) 
 

 

 

 

Supplemental Data

 

Net assets, end of period (000)

  $ 12,425  
 

 

 

 

Portfolio turnover rate(h)

    3 %(f)  
 

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

64  

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Notes to Financial Statements

 

1.    ORGANIZATION

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

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

 

iShares ETF   Diversification    
Classification    

iBonds 2021 Term High Yield and Income

  Non-diversified    

iBonds 2022 Term High Yield and Income

  Non-diversified    

iBonds 2023 Term High Yield and Income

  Non-diversified    

iBonds 2024 Term High Yield and Income

  Non-diversified    

iBonds 2025 Term High Yield and Income

  Non-diversified    

iBonds 2026 Term High Yield and Income(a)

  Non-diversified    

iBonds 2027 Term High Yield and Income(b)

  Non-diversified    

 

  (a) 

The Fund commenced operations on November 10, 2020.

 
  (b) 

The Fund commenced operations on July 7, 2021.

 

2.    SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, and payment-in-kind interest are recognized daily on an accrual basis.

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

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

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

3.    INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

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

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

 

   

Fixed-income investments for which market quotations are readily available are generally valued using the last available bid price or current market quotations provided by independent dealers or third-party pricing services. Pricing services generally value fixed income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots.

 

 

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Notes to Financial Statements  (continued)

 

The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.

 

   

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

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

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

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

   

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

   

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

   

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

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

4.    SECURITIES AND OTHER INVESTMENTS

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

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

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

 

 

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Notes to Financial Statements  (continued)

 

the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

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

 

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

iBonds 2021 Term High Yield and Income

          

BMO Capital Markets Corp.

  $ 100,389      $ 100,389      $      $  

Morgan Stanley

    694,893        694,893                
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 795,282      $ 795,282      $      $  
 

 

 

    

 

 

    

 

 

    

 

 

 

iBonds 2022 Term High Yield and Income

          

Barclays Capital, Inc

  $ 1,113,959      $ 1,113,959      $      $  

BMO Capital Markets Corp.

    760,138        760,138                

BofA Securities, Inc

    69,524        69,524                

Citigroup Global Markets, Inc.

    152,055        152,055                

J.P. Morgan Securities LLC

    3,783,885        3,783,885                

Morgan Stanley

    34,014        34,014                
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 5,913,575      $ 5,913,575      $      $  
 

 

 

    

 

 

    

 

 

    

 

 

 

iBonds 2023 Term High Yield and Income

          

Barclays Capital, Inc

  $ 278,024      $ 278,024      $      $  

BMO Capital Markets Corp.

    23,313        23,313                

BofA Securities, Inc

    222,522        222,522                

Citigroup Global Markets, Inc.

    283,321        283,321                

Credit Suisse Securities (USA) LLC

    383,461        383,461                

Goldman Sachs & Co. LLC

    1,835,896        1,835,896                

J.P. Morgan Securities LLC

    2,213,817        2,213,817                

Scotia Capital (USA), Inc.

    370,246        370,246                
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 5,610,600      $ 5,610,600      $      $  
 

 

 

    

 

 

    

 

 

    

 

 

 

iBonds 2024 Term High Yield and Income

          

Barclays Capital, Inc

  $ 609,652      $ 609,652      $      $  

BNP Paribas SA

    244,427        244,427                

BofA Securities, Inc

    394,454        394,454                

Citigroup Global Markets, Inc.

    16,458        16,458                

Credit Suisse Securities (USA) LLC

    21,615        21,615                

Goldman Sachs & Co. LLC

    1,056,645        1,056,645                

J.P. Morgan Securities LLC

    752,938        752,938                

Jefferies LLC

    513,601        513,601                

Morgan Stanley

    189,737        189,737                

Scotia Capital (USA), Inc.

    190,430        190,430                
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 3,989,957      $ 3,989,957      $      $  
 

 

 

    

 

 

    

 

 

    

 

 

 

iBonds 2025 Term High Yield and Income

          

Barclays Capital, Inc

  $ 512,506      $ 512,506      $      $  

BNP Paribas SA

    191,482        191,482                

BofA Securities, Inc

    23,430        23,430                

Citigroup Global Markets, Inc.

    744        744                

Credit Suisse Securities (USA) LLC

    89,035        89,035                

Goldman Sachs & Co. LLC

    1,220,014        1,220,014                

J.P. Morgan Securities LLC

    1,248,625        1,248,625                

Morgan Stanley

    149,191        149,191                

Scotia Capital (USA), Inc.

    152,354        152,354                
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 3,587,381      $ 3,587,381      $      $  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

 

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

  67


Notes to Financial Statements  (continued)

 

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

iBonds 2026 Term High Yield and Income

          

Barclays Bank PLC

  $ 313,264      $ 313,264      $      $  

BMO Capital Markets Corp.

    6,186        6,186                

Citigroup Global Markets, Inc.

    44,702        44,702                

Credit Suisse Securities (USA) LLC

    55,831        55,831                

Goldman Sachs & Co. LLC

    981,444        981,444                

Morgan Stanley

    128,400        128,400                

Nomura Securities International, Inc.

    1,036        1,036                

RBC Capital Markets LLC

    233,600        233,600                
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 1,764,463      $ 1,764,463      $      $  
 

 

 

    

 

 

    

 

 

    

 

 

 

iBonds 2027 Term High Yield and Income

          

Barclays Bank PLC

  $ 54,803      $ 54,803      $      $  

BofA Securities, Inc.

    222,619        222,619                

Credit Suisse Securities (USA) LLC

    26,207        26,207                

RBC Capital Markets LLC

    185,065        185,065                
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 488,694      $ 488,694      $      $  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

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

5.    INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee of 0.35%, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund.

Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses, if any, is a fund’s total annual operating expenses. Total expenses as shown in the Statement of Operations does not include acquired fund fees and expenses.

BFA has contractually agreed to waive a portion of its investment advisory fee for each Fund through the termination date of such Fund, in an amount equal to acquired fund fees and expenses, if any, attributable to each Fund’s investments in other funds advised by BFA or its affiliates.

These amounts are included in investment advisory fees waived in the Statements of Operations. For the year ended October 31, 2021, the amounts waived in investment advisory fees pursuant to this arrangement were as follows:

 

iShares ETF   Amounts waived  

iBonds 2021 Term High Yield and Income

  $ 6,191  

iBonds 2022 Term High Yield and Income

    1,021  

iBonds 2023 Term High Yield and Income

    706  

iBonds 2024 Term High Yield and Income

    640  

iBonds 2025 Term High Yield and Income

    375  

iBonds 2026 Term High Yield and Income

    198  

iBonds 2027 Term High Yield and Income

    20  

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

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational

 

 

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Notes to Financial Statements  (continued)

 

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

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

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

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

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the year ended October 31, 2021, the Funds paid BTC the following amounts for securities lending agent services:

 

iShares ETF   Fees Paid
to BTC
 

iBonds 2021 Term High Yield and Income

  $ 1,597  

iBonds 2022 Term High Yield and Income

    4,316  

iBonds 2023 Term High Yield and Income

    4,854  

iBonds 2024 Term High Yield and Income

    4,028  

iBonds 2025 Term High Yield and Income

    2,988  

iBonds 2026 Term High Yield and Income

    1,090  

iBonds 2027 Term High Yield and Income

    78  

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

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

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

6.    PURCHASES AND SALES

For the year ended October 31, 2021, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:

 

iShares ETF   Purchases      Sales  

iBonds 2021 Term High Yield and Income

  $ 102,166      $ 15,992,836  

iBonds 2022 Term High Yield and Income

      13,793,556          20,975,801  

iBonds 2023 Term High Yield and Income

    21,111,441        21,276,300  

iBonds 2024 Term High Yield and Income

    13,517,018        12,779,213  

iBonds 2025 Term High Yield and Income

    7,774,708        7,731,005  

iBonds 2026 Term High Yield and Income

    13,273,912        5,601,951  

iBonds 2027 Term High Yield and Income

    7,734,056        261,686  

 

 

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

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Notes to Financial Statements  (continued)

 

For the year ended October 31, 2021, in-kind transactions were as follows:

 

iShares ETF   In-kind
Purchases
     In-kind
Sales
 

iBonds 2021 Term High Yield and Income

  $   16,617,119      $   1,442,521  

iBonds 2022 Term High Yield and Income

    49,665,129         

iBonds 2023 Term High Yield and Income

    64,687,945         

iBonds 2024 Term High Yield and Income

    40,921,432         

iBonds 2025 Term High Yield and Income

    22,073,081         

iBonds 2026 Term High Yield and Income

    12,382,171         

iBonds 2027 Term High Yield and Income

    4,889,497         

7.    INCOME TAX INFORMATION

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

Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of October 31, 2021, permanent differences attributable to realized gains (losses) from in-kind redemptions and distributions paid in excess of taxable income were reclassified to the following accounts:

 

iShares ETF   Paid-in Capital     Accumulated
Earnings (Loss)
 

iBonds 2021 Term High Yield and Income

  $ (2,592   $ 2,592  

The tax character of distributions paid was as follows:

 

iShares ETF   Year Ended
10/31/21
     Year Ended
10/31/20
 

iBonds 2021 Term High Yield and Income

    

Ordinary income

  $ 702,434      $ 636,214  
 

 

 

    

 

 

 

iBonds 2022 Term High Yield and Income

    

Ordinary income

  $ 1,338,242      $ 746,451  
 

 

 

    

 

 

 

iBonds 2023 Term High Yield and Income

    

Ordinary income

  $ 1,956,106      $ 769,276  
 

 

 

    

 

 

 

iBonds 2024 Term High Yield and Income

    

Ordinary income

  $ 1,275,100      $ 655,125  
 

 

 

    

 

 

 

iBonds 2025 Term High Yield and Income

    

Ordinary income

  $ 1,311,182      $ 790,698  
 

 

 

    

 

 

 
    
iShares ETF           Period Ended
10/31/21
 

iBonds 2026 Term High Yield and Income

    

Ordinary income

     $ 663,103  
    

 

 

 

iBonds 2027 Term High Yield and Income

    

Ordinary income

     $ 93,252  
    

 

 

 

 

 

70  

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Notes to Financial Statements  (continued)

 

As of October 31, 2021, the tax components of accumulated net earnings (losses) were as follows:

 

iShares ETF   Undistributed
Ordinary Income
     Non-expiring
Capital Loss
Carryforwards(a)
    Net Unrealized
Gains (Losses)(b)
    Total  

iBonds 2021 Term High Yield and Income

  $      $ (609,509   $ (2,979   $ (612,488

iBonds 2022 Term High Yield and Income

    102,897        (264,550     138,577       (23,076

iBonds 2023 Term High Yield and Income

    254,063        (391,001     337,531          200,593  

iBonds 2024 Term High Yield and Income

    165,175        (811,548     530,062       (116,311

iBonds 2025 Term High Yield and Income

    147,075        (835,333     448,770       (239,488

iBonds 2026 Term High Yield and Income

    75,599        (59,954     102,410       118,055  

iBonds 2027 Term High Yield and Income

    75,558        (229     (168,037     (92,708

 

  (a) 

Amounts available to offset future realized capital gains.

 
  (b) 

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales and amortization methods for premiums and discounts on fixed income securities.

 

For the year ended October 31, 2021, the Funds listed below utilized the following amounts of their respective capital loss carryforwards:

 

iShares ETF   Utilized  

iBonds 2021 Term High Yield and Income

  $ 42,890  

iBonds 2022 Term High Yield and Income

      470,556  

iBonds 2023 Term High Yield and Income

    515,271  

iBonds 2024 Term High Yield and Income

    111,099  

iBonds 2025 Term High Yield and Income

    102,951  

As of October 31, 2021, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

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

iBonds 2021 Term High Yield and Income

  $   39,094,009      $ 3,204      $ (6,183   $ (2,979

iBonds 2022 Term High Yield and Income

    77,621,993        223,478        (84,901     138,577  

iBonds 2023 Term High Yield and Income

    92,248,252        872,280        (534,749     337,531  

iBonds 2024 Term High Yield and Income

    55,448,273        687,261        (157,199     530,062  

iBonds 2025 Term High Yield and Income

    43,281,775        608,803        (160,033     448,770  

iBonds 2026 Term High Yield and Income

    22,240,831        226,253        (123,843     102,410  

iBonds 2027 Term High Yield and Income

    13,088,037        53,673        (221,710     (168,037

8.     PRINCIPAL RISKS

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

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

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

Market Risk: Each Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Fund to reinvest in lower yielding securities. Each Fund may also be exposed to reinvestment risk, which is the risk that income from each Fund’s portfolio will decline if each Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Fund portfolio’s current earnings rate.

An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future,

 

 

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Notes to Financial Statements  (continued)

 

could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

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

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

The Funds invest a significant portion of their assets in high yield securities. High yield securities that are rated below investment-grade (commonly referred to as “junk bonds”) or are unrated may be deemed speculative, involve greater levels of risk than higher-rated securities of similar maturity and are more likely to default. High yield securities may be issued by less creditworthy issuers, and issuers of high yield securities may be unable to meet their interest or principal payment obligations. High yield securities are subject to extreme price fluctuations, may be less liquid than higher rated fixed-income securities, even under normal economic conditions, and frequently have redemption features.

The Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

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

9.    CAPITAL SHARE TRANSACTIONS

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

Transactions in capital shares were as follows:

 

     Year Ended
10/31/21
    Year Ended
10/31/20
 
iShares ETF   Shares     Amount     Shares     Amount  

iBonds 2021 Term High Yield and Income

       

Shares sold

    700,000     $ 16,946,243       800,000     $ 19,441,959  

Shares redeemed

    (200,000     (4,830,874     (200,000     (4,664,296
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

    500,000     $ 12,115,369       600,000     $ 14,777,663  
 

 

 

   

 

 

   

 

 

   

 

 

 

iBonds 2022 Term High Yield and Income

       

Shares sold

    2,100,000     $ 50,744,075       700,000     $   16,128,396  

Shares redeemed

                (300,000     (6,748,976
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

    2,100,000     $ 50,744,075       400,000     $ 9,379,420  
 

 

 

   

 

 

   

 

 

   

 

 

 

iBonds 2023 Term High Yield and Income

       

Shares sold

    2,700,000     $ 66,191,647       400,000     $ 9,203,670  

Shares redeemed

                (200,000     (4,444,071
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

    2,700,000     $ 66,191,647       200,000     $ 4,759,599  
 

 

 

   

 

 

   

 

 

   

 

 

 

iBonds 2024 Term High Yield and Income

       

Shares sold

    1,700,000     $ 41,654,956       100,000     $ 2,303,087  

Shares redeemed

                (200,000     (4,445,930
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    1,700,000     $   41,654,956       (100,000   $ (2,142,843
 

 

 

   

 

 

   

 

 

   

 

 

 

 

 

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Notes to Financial Statements  (continued)

 

     Year Ended
10/31/21
     Year Ended
10/31/20
 
iShares ETF   Shares      Amount      Shares     Amount  

iBonds 2025 Term High Yield and Income

         

Shares sold

    900,000      $   22,540,953        900,000     $    21,196,356  

Shares redeemed

                  (700,000     (15,977,957
 

 

 

    

 

 

    

 

 

   

 

 

 

Net increase

    900,000      $ 22,540,953        200,000     $ 5,218,399  
 

 

 

    

 

 

    

 

 

   

 

 

 
         
                     Period Ended
10/31/21
 
iShares ETF                   Shares     Amount  

iBonds 2026 Term High Yield and Income

         

Shares sold

 

     800,000     $ 20,202,554  
       

 

 

   

 

 

 

iBonds 2027 Term High Yield and Income

         

Shares sold

 

     500,000     $ 12,517,854  
       

 

 

   

 

 

 

The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.

10.    SUBSEQUENT EVENTS

Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were available to be issued and the following items were noted:

Planned Fund Liquidation: In accordance with its prospectus and its investment objective, the iShares iBonds 2021 Term High Yield and Income ETF ceased trading after the close of business on December 15, 2021, when all of the bonds included in the Fund’s underlying index matured. Proceeds of the liquidation are currently scheduled to be sent to shareholders on December 20, 2021.

 

 

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

  73


Report of Independent Registered Public Accounting Firm   

 

To the Board of Trustees of iShares Trust and Shareholders of iShares iBonds 2021 Term High Yield and Income ETF, iShares iBonds 2022 Term High Yield and Income ETF, iShares iBonds 2023 Term High Yield and Income ETF, iShares iBonds 2024 Term High Yield and Income ETF, iShares iBonds 2025 Term High Yield and Income ETF, iShares iBonds 2026 Term High Yield and Income ETF and iShares iBonds 2027 Term High Yield and Income ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares iBonds 2021 Term High Yield and Income ETF, iShares iBonds 2022 Term High Yield and Income ETF, iShares iBonds 2023 Term High Yield and Income ETF, iShares iBonds 2024 Term High Yield and Income ETF, and iShares iBonds 2025 Term High Yield and Income ETF, iShares iBonds 2026 Term High Yield and Income ETF and iShares iBonds 2027 Term High Yield and Income ETF (seven of the funds constituting iShares Trust, hereafter collectively referred to as the “Funds”) as of October 31, 2021, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2021, the results of each of their operations and the changes in each of their net assets for the periods indicated in the table below, and each of the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America.

 

 

iShares iBonds 2021 Term High Yield and Income ETF, iShares iBonds 2022 Term High Yield and Income ETF, iShares iBonds 2023 Term High Yield and Income ETF, iShares iBonds 2024 Term High Yield and Income ETF, and iShares iBonds 2025 Term High Yield and Income ETF: statements of operations for the year ended October 31, 2021 and statements of changes in net assets for each of the two years in the period ended October 31, 2021.

 

 

iShares iBonds 2026 Term High Yield and Income ETF: statements of operations and changes in net assets for the period November 10, 2020 (commencement of operations) to October 31, 2021.

 

 

iShares iBonds 2027 Term High Yield and Income ETF: statements of operations and changes in net assets for the period July 7, 2021 (commencement of operations) to October 31, 2021.

 

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

December 21, 2021

We have served as the auditor of one or more BlackRock investment companies since 2000.

 

 

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Important Tax Information  (unaudited)   

 

The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest income eligible to be treated as a Section 163(j) interest dividend for the fiscal year ended October 31, 2021:

 

iShares ETF   Interest Dividends  

iBonds 2021 Term High Yield and Income

    $   626,663  

iBonds 2022 Term High Yield and Income

    1,343,915  

iBonds 2023 Term High Yield and Income

    2,127,237  

iBonds 2024 Term High Yield and Income

    1,379,333  

iBonds 2025 Term High Yield and Income

    1,363,615  

iBonds 2026 Term High Yield and Income

    735,309  

iBonds 2027 Term High Yield and Income

    168,500  

The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended October 31, 2021:

 

iShares ETF   Interest-Related
Dividends
 

iBonds 2021 Term High Yield and Income

    $   430,794  

iBonds 2022 Term High Yield and Income

    1,033,223  

iBonds 2023 Term High Yield and Income

    1,836,543  

iBonds 2024 Term High Yield and Income

    1,096,485  

iBonds 2025 Term High Yield and Income

    1,219,086  

iBonds 2026 Term High Yield and Income

    633,007  

iBonds 2027 Term High Yield and Income

    139,619  

 

 

M P O R T A N T  A X  N F O R  M A T I O N

  75


Board Review and Approval of Investment Advisory Contract

 

iShares iBonds 2021 Term High Yield and Income ETF, iShares iBonds 2022 Term High Yield and Income ETF, iShares iBonds 2023 Term High Yield and Income ETF, iShares iBonds 2024 Term High Yield and Income ETF, iShares iBonds 2025 Term High Yield and Income ETF, iShares iBonds 2026 Term High Yield and Income ETF (each the “Fund”)

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that overall fund expenses (net of waivers and reimbursements) for the Fund were lower than the median of the overall fund expenses (net of waivers and reimbursements ) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2020, to that of relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies, which were provided at the May 7, 2021 meeting and throughout the year.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).

Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information considered.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.

iShares iBonds 2027 Term High Yield and Income ETF(the “Fund”)

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required to consider and approve the proposed Investment

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the terms of the proposed Advisory Contract. At a meeting held on March 30-31, 2021, the Board, including the Independent Board Members, approved the selection of BFA as investment adviser and approved the proposed Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA. The Board also considered information previously provided by BFA, BlackRock Institutional Trust Company, N.A. (“BTC”), and BlackRock, Inc. (“BlackRock”), as applicable, at prior Board meetings. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses of the Fund; (ii) the nature, extent and quality of the services to be provided by BFA; (iii) the costs of services to be provided to the Fund and the availability of information related to profits to be realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the Advisory Contract are discussed below.

Expenses of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

The Board also noted that the overall fund expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the overall fund expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level of the Fund supported the Board’s approval of the Advisory Contract.

Nature, Extent and Quality of Services: The Board reviewed the scope of services to be provided by BFA under the Advisory Contract. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time and have made significant investments into the iShares business to support the iShares funds and their shareholders. The Board considered representations by BFA, BTC, and BlackRock that the scope and quality of services to be provided to the Fund would be similar to the scope and quality of services provided to other iShares funds. The Board also considered BFA’s compliance program and its compliance record with respect to other iShares funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and relevant, and has provided information and made appropriate officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons who will be responsible for the day-to-day management of the Fund, as well as the resources that will be available to them in managing the Fund. The Board also considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies, which were provided throughout the year with respect to other iShares funds.

Based on review of this information, the Board concluded that the nature, extent and quality of services to be provided to the Fund under the Advisory Contract supported the Board’s approval of the Advisory Contract.

Costs of Services to be Provided to the Fund and Profits to be Realized by BFA and Affiliates: The Board did not consider the profitability of the Fund to BFA based on the fees payable under the Advisory Contract or revenue to be received by BFA or its affiliates in connection with services to be provided to the Fund since the proposed relationship had not yet commenced. The Board noted that it expects to receive profitability information from BFA periodically following the Fund’s launch and will thus be in a position to evaluate whether any new or additional breakpoints or other adjustments in Fund fees would be appropriate.

Economies of Scale: The Board considered information that it had previously received regarding economies of scale, efficiencies and scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.

This consideration of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the Advisory Contract.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA previously provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the iShares funds, including in terms of the different and generally more extensive services provided to the iShares funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement.

Other Benefits to BFA and/or its Affiliates: Except as noted below, the Board did not consider the “fallout” benefits or ancillary revenue to be received by BFA and/or its affiliates in connection with the services to be provided to the Fund by BFA since the proposed relationship had not yet commenced. However, the Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board considered the potential payment of advisory fees and/or administration fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the potential revenue to be received by BFA and/or its affiliates pursuant to an agreement that would permit a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board also considered the potential for revenue to BTC, the Fund’s securities lending agent, and its affiliates in the event of any loaning of portfolio securities of the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates (including associated commissions), will be reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the Advisory Contract.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services to be rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the Advisory Contract.

 

 

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  79


Supplemental Information  (unaudited)

 

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

October 31, 2021

 

     Total Cumulative Distributions
for the Fiscal Year
    % Breakdown of the Total Cumulative
Distributions for the Fiscal Year
 
iShares ETF   Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
    Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
 

iBonds 2021 Term High Yield and Income

  $ 0.483961     $     $     $   0.483961       100             100

iBonds 2022 Term High Yield and Income(a)

    0.833503             0.001648       0.835151       100             0 (b)      100  

iBonds 2023 Term High Yield and Income(a)

    1.167029             0.000973       1.168002       100             0 (b)      100  

iBonds 2024 Term High Yield and Income(a)

    1.156861             0.000744       1.157605       100             0 (b)      100  

iBonds 2025 Term High Yield and Income(a)

    1.259661             0.006628       1.266289       99             1       100  

iBonds 2026 Term High Yield and Income

    1.029259                   1.029259       100                   100  

 

  (a) 

The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

 
  (b) 

Rounds to less than 1%.

 

Premium/Discount Information

Information on the Fund’s net asset value, market price, premiums and discounts, and bid-ask spreads can be found at iShares.com.

 

 

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Trustee and Officer Information

 

The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).

The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of open-end equity, multi-asset, index and money market funds and ETFs (the “BlackRock Multi-Asset Complex”), one complex of closed-end funds and open-end non-index fixed-income funds (including ETFs) (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 375 funds as of October 31, 2021. With the exception of Robert S. Kapito, Salim Ramji and Charles Park, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji and Mr. Park is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).

 

Interested Trustees
       
Name (Age)    Position(s)   

Principal Occupation(s)

During the Past 5 Years

   Other Directorships Held by Trustee

Robert S.

Kapito(a)

(64)

   Trustee (since 2009).    President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002).    Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).

Salim Ramji(b)

(51)

   Trustee (since 2019).    Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014).    Director of iShares, Inc. (since 2019); Trustee of iShares U.S. ETF Trust (since 2019).

(a) Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

(b) Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

 

Independent Trustees
       
Name (Age)    Position(s)   

Principal Occupation(s)

During the Past 5 Years

   Other Directorships Held by Trustee

Cecilia H.

Herbert (72)

   Trustee (since 2005); Independent Board Chair (since 2016).    Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Audit and Quality Committees of Stanford Health Care (since 2016); Trustee of WNET, New York’s public media company (since 2011) and Member of the Audit Committee (since 2018) and Investment Committee (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015-2018); Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Director of the Senior Center of Jackson Hole (since 2020).    Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares, Inc. and iShares U.S. ETF Trust (since 2016); Trustee of Thrivent Church Loan and Income Fund (since 2019).

Jane D.

Carlin (65)

   Trustee (since 2015); Risk Committee Chair (since 2016).    Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).    Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Member of the Audit Committee (since 2016), Chair of the Audit Committee (since 2020) and Director of The Hanover Insurance Group, Inc. (since 2016).

Richard L.

Fagnani (66)

   Trustee (since 2017); Audit Committee Chair (since 2019).    Partner, KPMG LLP (2002-2016).    Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

 

 

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Trustee and Officer Information  (continued)

 

Independent Trustees (continued)
       
Name (Age)    Position(s)   

Principal Occupation(s)

During the Past 5 Years

   Other Directorships Held by Trustee

John E.

Kerrigan (66)

   Trustee (since 2005); Nominating and Governance and Equity Plus Committee Chairs (since 2019).    Chief Investment Officer, Santa Clara University (since 2002).    Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

Drew E.

Lawton (62)

   Trustee (since 2017); 15(c) Committee Chair (since 2017).    Senior Managing Director of New York Life Insurance Company (2010-2015).    Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

John E.

Martinez (60)

   Trustee (since 2003); Securities Lending Committee Chair (since 2019).    Director of Real Estate Equity Exchange, Inc. (since 2005); Director of Cloudera Foundation (2017-2020); and Director of Reading Partners (2012-2016).    Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).

Madhav V.

Rajan (57)

   Trustee (since 2011); Fixed Income Plus Committee Chair (since 2019).    Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Advisory Board Member (since 2016) and Director (since 2020) of C.M. Capital Corporation; Chair of the Board for the Center for Research in Security Prices, LLC (since 2020); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).    Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).
Officers
       
Name (Age)    Position(s)   

Principal Occupation(s)

During the Past 5 Years

     

Armando

Senra (50)

   President (since 2019).    Managing Director, BlackRock, Inc. (since 2007); Head of U.S., Canada and Latam iShares, BlackRock, Inc. (since 2019); Head of Latin America Region, BlackRock, Inc. (2006-2019); Managing Director, Bank of America Merrill Lynch (1994-2006).

Trent

Walker (47)

   Treasurer and Chief Financial Officer (since 2020).    Managing Director, BlackRock, Inc. (since September 2019); Chief Financial Officer of iShares Delaware Trust Sponsor LLC, BlackRock Funds, BlackRock Funds II, BlackRock Funds IV, BlackRock Funds V and BlackRock Funds VI (since 2021); Executive Vice President of PIMCO (2016-2019); Senior Vice President of PIMCO (2008-2015); Treasurer (2013-2019) and Assistant Treasurer (2007-2017) of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds.

Charles

Park (54)

   Chief Compliance Officer (since 2006).    Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006).

Deepa Damre

Smith (46)

   Secretary (since 2019).    Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2009-2013).

Scott

Radell (52)

   Executive Vice President (since 2012).    Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

Alan

Mason (60)

   Executive Vice President (since 2016).    Managing Director, BlackRock, Inc. (since 2009).

Marybeth

Leithead (58)

   Executive Vice President (since 2019).    Managing Director, BlackRock, Inc. (since 2017); Chief Operating Officer of Americas iShares (since 2017); Portfolio Manager, Municipal Institutional & Wealth Management (2009-2016).

 

 

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General Information

 

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:

 

   

Go to icsdelivery.com.

   

If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the Company’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

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Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Fixed Income
PIK   Payment-in-kind
REIT   Real Estate Investment Trust

 

 

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Want to know more?

iShares.com    |     1-800-474-2737

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Bloomberg Index Services Limited, nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

©2021 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-AR-1023-1021

 

 

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