LOGO

  JULY 31, 2023

 

 

   2023 Annual Report

 

 

iShares Trust

 

·  

iShares Breakthrough Environmental Solutions ETF | ETEC | NASDAQ

 

·  

iShares Cybersecurity and Tech ETF | IHAK | NYSE Arca

 

·  

iShares Exponential Technologies ETF | XT | NASDAQ

 

·  

iShares Future Cloud 5G and Tech ETF | IDAT | NYSE Arca

 

·  

iShares Genomics Immunology and Healthcare ETF | IDNA | NYSE Arca

 

·  

iShares Neuroscience and Healthcare ETF | IBRN | NYSE Arca

 

·  

iShares Robotics and Artificial Intelligence Multisector ETF | IRBO | NYSE Arca

 

·  

iShares Self-Driving EV and Tech ETF | IDRV | NYSE Arca

 

·  

iShares Virtual Work and Life Multisector ETF | IWFH | NYSE Arca


The Markets in Review

Dear Shareholder,

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

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

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

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation has been more persistent than expected, raised interest rates seven times during the 12-month period ended July 31, 2023. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at its June 2023 meeting, the first time it paused its tightening in the current cycle, before again raising rates in July 2023.

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

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

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

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

Total Returns as of July 31, 2023

 

    

 

6-Month  

 

 

 

12-Month

 

   

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

  13.52%   13.02%
   

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

  4.51    7.91 
   

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

  6.65    16.79   
   

Emerging market equities
(MSCI Emerging Markets Index)

  3.26    8.35 
   

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

  2.34    3.96 
   

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

  (2.08)   (7.56)
   

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

  (1.02)   (3.37)
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

  0.20    0.93 
   

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

  2.92    4.42 

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

 

 

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


Table of Contents

 

     Page  

The Markets in Review

    2  

Annual Report:

 

Market Overview

    4  

Fund Summary

    6  

About Fund Performance

    24  

Disclosure of Expenses

    24  

Schedules of Investments

    25  

Financial Statements:

 

Statements of Assets and Liabilities

    49  

Statements of Operations

    52  

Statements of Changes in Net Assets

    55  

Financial Highlights

    60  

Notes to Financial Statements

    69  

Report of Independent Registered Public Accounting Firm

    81  

Important Tax Information

    82  

Board Review and Approval of Investment Advisory Contract

    83  

Supplemental Information

    89  

Trustee and Officer Information

    90  

General Information

    93  

Glossary of Terms Used in this Report

    94  

 

 

  3


Market Overview

 

 

iShares Trust

Global Market Overview

Global equity markets advanced during the 12 months ended July 31, 2023 (“reporting period”), supported by continued economic growth and moderating inflation. The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 12.91% in U.S. dollar terms for the reporting period. Despite concerns about the impact of higher interest rates and rising prices, the global economy continued to grow, albeit at a slower pace than during the initial post-pandemic recovery. Inflation began to subside in most regions of the world, and lower energy prices reduced pressure on consumers, leading consumer and business sentiment to improve. While the Russian invasion of Ukraine continued to disrupt trade in Europe and elsewhere, market adaptation lessened the economic impact of the ongoing war. The prices of oil, natural gas, and wheat all declined during the reporting period, easing pressure on the world’s economies.

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

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

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

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

 

 

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  5


Fund Summary as of July 31, 2023    iShares® Breakthrough Environmental Solutions ETF

 

Investment Objective

The iShares Breakthrough Environmental Solutions ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. and non-U.S. companies involved in breakthrough innovations and development of new technologies that address the climate transition, as represented by the Morningstar Global Emerging Green Technologies Select Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

     Cumulative Total Returns   
    

Since

Inception

 

Fund NAV

    8.54

Fund Market

    8.36  

Index

    9.18  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was March 28, 2023. The first day of secondary market trading was March 30, 2023.

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

Expense Example

 

Actual           Hypothetical 5% Return         
 

Beginning
Account Value
(03/28/23)
 
 
(a)  
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(b)  
           

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(b)  
    

Annualized
Expense
Ratio
 
 
 
 $ 1,000.00        $ 1,000.00        $ 1.61             $ 1,000.00        $ 1,022.50        $ 2.36        0.47

 

  (a) 

Commencement of operations.

 
  (b) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 125/365 for actual expenses and 181/365 for hypothetical expenses (to reflect the six month period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

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Fund Summary as of July 31, 2023 (continued)    iShares® Breakthrough Environmental Solutions ETF

 

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry    
Percent of
Total Investments
 
(a) 

Automobiles

    21.9

Semiconductors & Semiconductor Equipment

    21.5  

Electrical Equipment

    16.9  

Machinery

    13.7  

Chemicals

    7.2  

Electronic Equipment, Instruments & Components

    5.4  

Building Products

    5.4  

Multi-Utilities

    4.8  

Automobile Components

    2.2  

Independent Power and Renewable Electricity Producers

    1.0  

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

United States

    22.6

China

    21.3  

Japan

    10.4  

Germany

    6.7  

Switzerland

    6.6  

Cayman Islands

    5.9  

Sweden

    5.3  

South Korea

    4.5  

Belgium

    4.1  

Denmark

    3.7  

Netherlands

    3.4  

United Kingdom

    3.1  

Canada

    1.5  

Other (each representing less than 1%)

    0.9  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D  S U M M A R Y

  7


Fund Summary as of July 31, 2023    iShares® Cybersecurity and Tech ETF

 

Investment Objective

The iShares Cybersecurity and Tech ETF (the “Fund”) seeks to track the investment results of an index composed of developed and emerging market companies that are involved in cyber security and technology, including cyber security hardware, software, products, and services, as represented by the NYSE® FactSet® Global Cyber Security Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

     Average Annual Total Returns             Cumulative Total Returns   
     1 Year      Since
Inception
           1 Year      Since
Inception
 

Fund NAV

    7.57      12.20       7.57      61.08

Fund Market

    7.78        12.22         7.78        61.18  

Index

    8.08        12.62               8.08        63.51  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was June 11, 2019. The first day of secondary market trading was June 13, 2019.

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

Expense Example

 

Actual           Hypothetical 5% Return         
 

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
           

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
    

Annualized
Expense
Ratio
 
 
 
 $ 1,000.00        $ 1,154.30        $ 2.51             $ 1,000.00        $ 1,022.50        $ 2.36        0.47

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

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Fund Summary as of July 31, 2023 (continued)    iShares® Cybersecurity and Tech ETF

 

Portfolio Management Commentary

Stocks of global cybersecurity and technology companies advanced for the reporting period. Stocks in growth-oriented companies, including many in the information technology sector, outperformed the broader market. While growth stocks declined sharply in 2022 amid high inflation and rising interest rates, they rebounded in 2023 amid moderating inflation and investor optimism that interest rates would stabilize. Global cybersecurity attacks increased significantly in 2022, contributing to higher spending on technology-related security and risk management by global governments and businesses. Broadly, demand for cybersecurity analysts and engineers grew at twice the rate of employment demand for the general workforce. The increased adoption of artificial intelligence (“AI”) capabilities heightened cybersecurity concerns while at the same time aiding and improving security efforts.

U.S. stocks contributed the most to the Index’s return, led by the industrials sector. Research and consulting services companies specializing in cyber and digital intelligence reported strong demand for their services, partly reflecting new contracts from government agencies seeking to improve cloud and other technology security. Contractors providing technical and engineering assistance to the U.S. military benefited from new and renewing projects.

The U.S. information technology sector contributed significantly to the Index’s return. Systems software companies benefited from increased demand for software focused on helping companies secure their technology systems. Increased adoption of cloud platforms for cybersecurity programs and the modernization of companies’ security operation centers helped feed demand and encouraged the pursuit of smaller providers by larger technology conglomerates. Integration of security and networks into single platforms also boosted revenue and market share gains for systems software providers.

Stocks in Taiwan also contributed to the Index’s return, with AI-related demand attracting investors to the country’s information technology sector. Communications equipment companies benefited from rising sales of network appliances, ethernet switches, and other related hardware.

On the downside, Japanese stocks detracted from the Index’s return. Systems software companies, in the information technology sector, declined as rising global interest rates early in the reporting period pressured the broader Japanese equity market, particularly technology stocks.

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry    
Percent of
Total Investments
 
(a) 

Software

    64.9

Professional Services

    13.8  

Communications Equipment

    11.2  

IT Services

    10.1  

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

United States

    73.2

Israel

    8.8  

Japan

    4.5  

Taiwan

    4.0  

Canada

    2.8  

Germany

    2.2  

Denmark

    2.0  

United Kingdom

    1.4  

Other (each representing less than 1%)

    1.1  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D  S U M M A R Y

  9


Fund Summary as of July 31, 2023    iShares® Exponential Technologies ETF

 

Investment Objective

The iShares Exponential Technologies ETF (the “Fund”) seeks to track the investment results of an index composed of stocks of developed and emerging market companies that create or use exponential technologies, as represented by the Morningstar® Exponential Technologies IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
     1 Year      5 Years     Since
Inception
            1 Year      5 Years      Since
Inception
 

Fund NAV

    13.05      10.26     11.70        13.05      62.96      152.48

Fund Market

    13.04        10.23       11.69          13.04        62.77        152.31  

Index

    13.55        10.66       12.03                13.55        65.92        158.67  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was March 19, 2015. The first day of secondary market trading was March 23, 2015.

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

Expense Example

 

Actual           Hypothetical 5% Return         
 

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid Durintg
the Period
 
 
(a)  
           

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
    

Annualized
Expense
Ratio
 
 
 
 $ 1,000.00        $ 1,107.70        $ 2.40             $ 1,000.00        $ 1,022.50        $ 2.31        0.46

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

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Fund Summary as of July 31, 2023 (continued)    iShares® Exponential Technologies ETF

 

Portfolio Management Commentary

Stocks of global companies that create or use exponential technologies advanced for the reporting period. Stocks in growth-oriented companies, including many in the information technology sector, outperformed the broader market. While growth stocks declined sharply in 2022 amid high inflation and rising interest rates, they rebounded in 2023 amid moderating inflation and investor optimism that interest rates would stabilize. The widespread emergence of artificial intelligence (“AI”) applications increased demand for machine learning capabilities, boosting the stocks of companies heavily involved in the burgeoning technology.

U.S. stocks, which represented approximately 64% of the Index on average during the reporting period, contributed the most to the Index’s return, led by the information technology sector. Demand for software and services rose as business and government enterprises sought increased implementation of machine learning and AI capabilities. That included increased demand from the U.S. intelligence and defense communities for AI-assisted software platforms. As providers of customer relationship management platforms developed new AI-powered offerings, demand for their software increased. Meanwhile, the rising proliferation of data-intensive applications and related analytics supported companies building platforms for the expanding data aggregation and cloud monitoring market.

U.S. semiconductor firms also contributed to the Index’s return. As with software, AI’s widespread emergence buoyed stocks of companies producing chips that power generative AI services, such as ChatGPT, other specialized AI applications, and the data centers that support AI functions. Makers of solar panels and microchips used in electric vehicles received a boost from the federal government’s Inflation Reduction Act, which created subsidies and tax credits for green energy initiatives.

Australian stocks contributed notably to the Index’s return. The information technology sector led the advance as logistics software firms benefited from businesses’ needs to improve supply chain efficiency following coronavirus pandemic-related disruptions. In Germany, information technology stocks also contributed as stronger-than-expected demand supported semiconductor manufacturers, particularly makers of microchips for automotive and industrial uses.

Portfolio Information

 

SECTOR ALLOCATION

 

Sector    
Percent of
Total Investments
 
(a) 

Information Technology

    51.4

Health Care

    16.7  

Industrials

    7.7  

Financials

    7.4  

Consumer Discretionary

    5.5  

Communication Services

    4.2  

Materials

    2.8  

Utilities

    2.4  

Real Estate

    1.3  

Consumer Staples

    0.6  

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a)
 

United States

    65.0

China

    5.7  

Japan

    4.8  

Australia

    3.4  

Netherlands

    2.7  

Canada

    2.4  

Germany

    2.0  

United Kingdom

    2.0  

Switzerland

    2.0  

France

    1.4  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D  S U M M A R Y

  11


Fund Summary as of July 31, 2023    iShares® Future Cloud 5G and Tech ETF

 

Investment Objective

The iShares Future Cloud 5G and Tech ETF (the “Fund”) (Formerly the iShares Cloud 5G and Tech ETF) seeks to track the investment results of an index composed of companies from developed and emerging markets that could benefit from providing products, services, and technologies related to cloud computing and 5G, as represented by the Morningstar® Global Digital Infrastructure & Connectivity Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns           Cumulative Total Returns  
     1 Year      Since
Inception
           1 Year      Since
Inception
 

Fund NAV

    14.84      1.71       14.84      3.71

Fund Market

    14.74        1.63         14.74        3.52  

Index

    15.28        1.73               15.28        3.75  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

 

LOGO

The inception date of the Fund was June 8, 2021. The first day of secondary market trading was June 10, 2021.

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

Expense Example

 

Actual           Hypothetical 5% Return         
 

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
           

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
    

Annualized
Expense
Ratio
 
 
 
 $ 1,000.00        $ 1,101.00        $ 2.45             $ 1,000.00        $ 1,022.50        $ 2.36        0.47

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

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Fund Summary as of July 31, 2023 (continued)    iShares® Future Cloud 5G and Tech ETF

 

Portfolio Management Commentary

Equities with considerable exposure to cloud computing and 5G networking advanced for the reporting period. Stocks in growth-oriented companies, including many in the information technology sector, outperformed the broader market. While growth stocks declined sharply in 2022 amid high inflation and rising interest rates, they rebounded in 2023 amid moderating inflation and investor optimism that interest rates would stabilize. The swift emergence of artificial intelligence (“AI”) applications drove rising demand for cloud computing solutions and the microchips that power AI. Mobile carriers continued expanding 5G networks as governments and carriers throughout the world increased their commitment to building them.

U.S. stocks, which represented approximately 73% of the Index on average during the reporting period, contributed the most to the Index’s return, led by the information technology sector. Amid strong growth forecasts, application software providers, particularly cloud computing platforms, benefited from ongoing digital transformation and data center modernization. Revenue for cloud service providers increased substantially amid rising demand for simplified and aggregated platform solutions. Likewise, companies providing software used to monitor network infrastructure, allowing companies to trouble-shoot technical problems, reported higher demand and revenue. Speculation that larger technology conglomerates might seek to expand their cloud operations via acquisitions also supported smaller cloud providers. The U.S. semiconductors industry also advanced, as investments in AI spurred rising demand for microchips used in data centers and specialized microchips that speed AI applications, boosting revenue for firms supplying them. Revenue also increased for firms that produce microchips for converting analog signals into digital data, particularly products used in automobile and industrial manufacturing.

Stocks in Taiwan contributed notably to the Index’s return. Within the information technology sector, technology hardware and equipment companies advanced amid strong demand from customers building AI servers. German information technology stocks also contributed, as supply chain improvements following disruptions caused by the coronavirus pandemic and the beginning of the war in Ukraine increased revenue for companies supplying microchips to automotive and industrial markets.

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry    
Percent of
Total Investments
 
(a)
 

Semiconductors & Semiconductor Equipment

    33.1

Communications Equipment

    14.1  

IT Services

    13.8  

Software

    13.4  

Technology Hardware, Storage & Peripherals

    5.8  

Electronic Equipment, Instruments & Components

    5.4  

Specialized REITs

    5.2  

Consumer Finance

    5.0  

Chemicals

    2.4  

Diversified Telecommunication Services

    1.0  

Media

    0.8  

 

  (a) 

Excludes money market funds.

 

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a)
 

United States

    76.0

Taiwan

    9.0  

Japan

    3.8  

Germany

    2.9  

Australia

    2.1  

Finland

    1.7  

Sweden

    1.7  

United Kingdom

    1.0  

Other (each representing less than 1%)

    1.8  

 

 

F U N D  S U M M A R Y

  13


Fund Summary as of July 31, 2023     iShares® Genomics Immunology and Healthcare ETF

 

Investment Objective

The iShares Genomics Immunology and Healthcare ETF (the “Fund”) seeks to track the investment results of an index composed of developed and emerging market companies that could benefit from the long-term growth and innovation in genomics, immunology and bioengineering, as represented by the NYSE® FactSet® Global Genomics and Immuno Biopharma IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

     Average Annual Total Returns            Cumulative Total Returns  
     1 Year      Since
Inception
           1 Year      Since
Inception
 

Fund NAV

    (24.04 )%       0.12       (24.04 )%       0.52

Fund Market

    (24.04      0.14         (24.04      0.58  

Index

    (23.55      0.27               (23.55      1.14  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was June 11, 2019. The first day of secondary market trading was June 13, 2019.

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

Expense Example

 

Actual           Hypothetical 5% Return         
 

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
           

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
    

Annualized
Expense
Ratio
 
 
 
 $ 1,000.00        $ 890.80        $ 2.25             $ 1,000.00        $ 1,022.40        $ 2.41        0.48

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

14  

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Fund Summary as of July 31, 2023 (continued)    iShares® Genomics Immunology and Healthcare ETF

 

Portfolio Management Commentary

Global genomics, immunology, and healthcare stocks declined significantly for the reporting period. Growth-oriented stocks declined sharply in 2022 amid high inflation, a slowing economy, and rising interest rates. They rebounded in 2023 as inflation moderated and investors’ optimism increased that interest rates would stabilize. However, innovation-related healthcare stocks did not benefit from that recovery, as growth investors mostly targeted technology stocks while generally avoiding the healthcare sector. Waning demand for COVID-19 vaccines and legislative challenges to drugmakers’ prices further reduced investor interest. Patent disputes between vaccine makers exacerbated biotech stocks’ weakness from falling vaccine demand.

U.S. equities, which represented approximately 64% of the Index on average during the reporting period, detracted the most from the Index’s return, driven by declines in the healthcare sector. Biotechnology stocks, in particular, accounted for the majority of the Index’s decline. Notably, an innovative biotechnology company focused on developing cellular immunotherapies declined after ending a research collaboration with a major healthcare-centered company. Despite an increase in COVID-19 vaccine prices, falling demand reduced revenue for vaccine makers. In May 2023, the U.S. government officially ended the coronavirus health emergency and lifted its vaccine mandate for international travelers. Biotechnology companies faced headwinds as demand for COVID-19 vaccinations and booster shots trailed expectations and manufacturers anticipated deliveries falling by as much as two-thirds overall for 2023. Vaccine makers responded with plans to significantly cut costs through infrastructure consolidation and considerable layoffs. Investors’ lessening interest in biotechnology stocks extended to companies not involved in vaccine development, especially startups facing delays in clinical trials and early-stage firms yet to receive approval for marketable treatments.

Healthcare stocks in Germany and Taiwan also detracted from the Index’s return. Patent disputes weighed on German biotechnology companies. Additionally, a leading biotechnology firm reduced its earnings outlook after suffering a cyberattack. In Taiwan, biotechnology firms involved in vaccine production faced headwinds as global demand for COVID-19 vaccines waned.

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry    
Percent of
Total Investments
 
(a)
 

Biotechnology

    76.7

Pharmaceuticals

    15.5  

Chemicals

    6.3  

Health Care Providers & Services

    1.0  

Life Sciences Tools & Services

    0.5  

 

 

  (a) 

Excludes money market funds.

 

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a)
 

United States

    62.7

Switzerland

    7.1  

France

    6.3  

Germany

    4.8  

Denmark

    4.3  

China

    3.9  

Japan

    3.9  

Netherlands

    2.3  

Taiwan

    2.2  

South Korea

    1.8  

 

 

F U N D  S U M M A R Y

  15


Fund Summary as of July 31, 2023    iShares® Neuroscience and Healthcare ETF

 

Investment Objective

The iShares Neuroscience and Healthcare ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. and non-U.S. companies that could benefit from the growth and innovation in neuroscience, as represented by the NYSE® FactSet® Global Neuro Biopharma and MedTech Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

                                Cumulative Total Returns  
     

          

                           

Since

Inception

 

Fund NAV

                (2.45 )% 

Fund Market

                (2.27

Index

                                        (2.29

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was August 24, 2022. The first day of secondary market trading was August 26, 2022.

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

Expense Example

 

Actual           Hypothetical 5% Return         
 

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
           

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
    

Annualized
Expense
Ratio
 
 
 
 $ 1,000.00        $ 916.60        $ 2.23             $ 1,000.00        $ 1,022.50        $ 2.36        0.47

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

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Fund Summary as of July 31, 2023 (continued)    iShares® Neuroscience and Healthcare ETF

 

Portfolio Management Commentary

Global stocks of companies involved in neuroscience, treatments for neurological disorders, and related healthcare innovation declined slightly for the reporting period. After falling earlier in the reporting period amid high inflation, a slowing economy, and rising interest rates, growth-oriented stocks rebounded in 2023 as inflation moderated and investors’ optimism increased that interest rates would stabilize. However, despite the Food and Drug Administration (“FDA”) approval of the first drug proven to slow the progression of Alzheimer’s disease, innovation-related healthcare stocks did not fully participate in that recovery. Investors who gravitated toward the healthcare sector as the stock market declined in 2022 increasingly sought other alternatives as stocks recovered later in the reporting period.

Equities in Switzerland detracted the most from the Index’s return, led by biotechnology stocks in the healthcare sector. Financial losses widened at a leading provider of treatments for insomnia and other conditions; the company responded by adopting cost cuts aimed at reducing its cash outflow by half. Amid a cash shortfall, the firm secured bridge financing while attempting to sell a portion of its operations. In the meantime, its revenue continued rising and it launched an innovative drug targeting the effects of chronic insomnia.

U.S. stocks also detracted from the Index’s performance. In the healthcare sector, the healthcare equipment and supplies industry declined. Ongoing struggles to achieve profitability weighed on the stocks of medical device makers, including a supplier of systems aimed at alleviating chronic pain via spinal cord stimulation and a manufacturer of devices to help patients with bladder and bowel dysfunction. Though reporting varying degrees of revenue growth, these companies disclosed either minimal profits or ongoing net losses.

Some countries contributed to the Index’s return. In Ireland, a fledging drugmaker benefited from the FDA’s approval of new treatment for daytime drowsiness in adults with narcolepsy, boosting stocks in the country’s pharmaceutical industry. Stocks in South Korea’s pharmaceutical industry also rose amid expansion plans, acquisitions, and partnerships announced by a leading maker of treatments for central nervous system disorders.

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry    
Percent of
Total Investments
 
(a)
 

Biotechnology

    57.1

Pharmaceuticals

    28.6  

Health Care Equipment & Supplies

    14.0  

Life Sciences Tools & Services

    0.3  

 

 

 

  (a)

Excludes money market funds.

 

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a)
 

United States

    72.4

Ireland

    6.5  

South Korea

    4.8  

Canada

    3.8  

British Virgin Islands

    2.9  

Sweden

    2.8  

Australia

    2.4  

Switzerland

    2.4  

China

    1.2  

Singapore

    0.8  

 

 

F U N D  S U M M A R Y

  17


Fund Summary as of July 31, 2023     iShares® Robotics and Artificial Intelligence Multisector ETF

 

Investment Objective

The iShares Robotics and Artificial Intelligence Multisector ETF (the “Fund”) seeks to track the investment results of an index composed of developed and emerging market companies that could benefit from the long-term growth and innovation in robotics technologies and artificial intelligence, as represented by the NYSE® FactSet® Global Robotics and Artificial Intelligence Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns         Cumulative Total Returns  
     1 Year      5 Years      Since
Inception
         1 Year     5 Years      Since
Inception
 

Fund NAV

    22.55      9.00      8.67       22.55     53.87      52.77

Fund Market

    23.16        8.95        8.73         23.16       53.50        53.24  

Index

    22.44        9.22        8.87           22.44       55.40        54.21  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was June 26, 2018. The first day of secondary market trading was June 28, 2018.

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

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
           

Beginning
Account Value
(02/01/23)
 
 
 
   

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
      

Annualized
Expense
Ratio
 
 
 
 $ 1,000.00        $ 1,164.50        $ 2.52             $ 1,000.00     $ 1,022.50        $ 2.36          0.47

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

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Fund Summary as of July 31, 2023 (continued)    iShares® Robotics and Artificial Intelligence Multisector ETF

 

Portfolio Management Commentary

Stocks of global companies producing or using robotics and artificial intelligence applications advanced considerably for the reporting period. Many stocks, particularly in the information technology sector, benefited from renewed investor interest in growth-oriented companies. Although growth stocks declined sharply in 2022 amid high inflation and rising interest rates, they rebounded in 2023 as inflation moderated and optimism increased that interest rates would stabilize. The widespread emergence of artificial intelligence (“AI”) applications increased demand for machine learning capabilities, boosting the stocks of companies heavily involved in the burgeoning technology.

U.S. equities, which represented approximately 53% of the Index on average for the reporting period, contributed the most to the Index’s return, led by the information technology sector. AI-related demand boosted the software and services industry, as business and government enterprises increasingly sought to implement machine learning and artificial intelligence capabilities. Providers of customer relationship management platforms benefited from new AI-powered offerings and related integration that increased demand for their software. In addition, revenue rose for makers of data analytics platforms. Strong interest in AI also buoyed stocks of companies producing chips that power generative AI services.

Chinese stocks also contributed to the Index’s return, led by the communications sector. Global investment demand for exposure to the Chinese market increased after the country lifted restrictive Covid-19 pandemic policies. Stocks within the media and entertainment industry rose, as subscriber growth rebounded for both visual and audio streaming services after a stretch of industry-wide declines. Social media and livestream platforms, including dating and other apps, also benefited from improved financial performance and changes in leadership that boosted investors’ optimism. In addition, a popular app provider generated first-time profits.

Stocks in Taiwan further benefited performance, driven by gains in the semiconductors and semiconductor equipment industry. Chipmakers that also provide engineering, consulting, and technical-support services advanced, as demand for engineering designs and solutions increased alongside the surge in orders for AI-related chips needed to train and deploy AI models.

Portfolio Information

 

SECTOR ALLOCATION

 

Sector    
Percent of
Total Investments
 
(a)
 

Information Technology

    55.6

Communication Services

    19.0  

Industrials

    13.1  

Consumer Discretionary

    10.4  

Financials

    1.0  

Health Care

    0.9  

 

 

 

  (a) 

Excludes money market funds.

 

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a)
 

United States

    51.2

China

    13.1  

Japan

    9.9  

Taiwan

    8.6  

Israel

    2.9  

South Korea

    2.5  

Switzerland

    1.8  

Germany

    1.6  

France

    1.3  

Australia

    1.2  

 

 

F U N D  S U M M A R Y

  19


Fund Summary as of July 31, 2023    iShares® Self-Driving EV and Tech ETF

 

Investment Objective

The iShares Self-Driving EV and Tech ETF (the “Fund”) seeks to track the investment results of an index composed of developed and emerging market companies that may benefit from growth and innovation in and around electric vehicles, battery technologies and autonomous driving technologies, as represented by the NYSE® FactSet® Global Autonomous Driving and Electric Vehicle Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns           Cumulative Total Returns  
     1 Year      Since
Inception
           1 Year      Since
Inception
 

Fund NAV

    14.17      16.50       14.17      92.61

Fund Market

    13.93        16.44         13.93        92.24  

Index

    14.57        16.63               14.57        93.45  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was April 16, 2019. The first day of secondary market trading was April 18, 2019.

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

Expense Example

 

Actual           Hypothetical 5% Return         
 

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
           

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
    

Annualized
Expense
Ratio
 
 
 
 $ 1,000.00        $ 1,121.20        $ 2.47             $ 1,000.00        $ 1,022.50        $ 2.36        0.47

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

20  

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Fund Summary as of July 31, 2023 (continued)    iShares® Self-Driving EV and Tech ETF

 

Portfolio Management Commentary

Stocks of companies related to innovation in electric vehicles (“EVs”) and self-driving cars advanced for the reporting period. Globally, EV sales increased in 2022 by approximately 52% to 10 million vehicles, with forecasts of continued growth in 2023. The U.S. government’s Inflation Reduction Act of 2022 expanded subsidies and taxes for green energy initiatives, including EVs, with a goal of pushing EVs to half of all U.S. car sales by 2030. Building on EV initiatives from the 2021 Infrastructure Investment and Jobs Act, the 2022 act spurred several new manufacturing investments from makers of vehicles and batteries. The impacts of those new programs increased capacity of global EV supply chains to support strong consumer demand. Meanwhile, automakers expanded investments in self-driving cars, which made inroads into ride-hailing and taxi services.

Stocks in China contributed the most to the Index’s return, led by the automobiles industry. China accounted for nearly 60% of global EV sales in 2022, while EVs almost doubled as a proportion of domestic car sales. EV sales also rose after China lifted highly restrictive coronavirus policies late in 2022, reopening large parts of the economy for the first time since the pandemic started. Stocks of EV manufacturers also benefited from announced plans to cut costs amid increasing global competition, and an investment from a large German automaker further aided the industry. The introduction of new models boosted new vehicle deliveries, which grew substantially even as price competition intensified. Rising sales bolstered industry profitability and raised expectations that the nation’s leading EV manufacturer might soon take over the top spot in the world.

The automobiles industry in Germany also contributed to the Index’s return. During the first seven months of 2023, new EV car registrations increased at a year-over-year rate of 13%, pushing sales to a fifth of the total market. South Korean stocks also aided performance, led by the materials sector. Stocks of chemical makers increased, as rising demand for materials used to manufacture batteries drove increased sales and profitability.

Portfolio Information

 

SECTOR ALLOCATION

 

Sector    
Percent of
Total Investments
 
(a)
 

Consumer Discretionary

    63.1

Materials

    16.0  

Industrials

    14.5  

Information Technology

    6.4  

Communication Services

    0.0  

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a)
 

United States

    38.9

China

    19.3  

South Korea

    11.1  

Germany

    8.2  

Australia

    7.6  

France

    5.4  

Switzerland

    3.5  

Sweden

    2.7  

Japan

    1.5  

United Kingdom

    1.1  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D  S U M M A R Y

  21


Fund Summary as of July 31, 2023    iShares® Virtual Work and Life Multisector ETF

 

Investment Objective

The iShares Virtual Work and Life Multisector ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. and non-U.S. companies that provide products, services and technologies that empower individuals to work remotely, and support an increasingly virtual way of life across entertainment, wellness and learning, as represented by the NYSE® FactSet® Global Virtual Work and Life Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

     Average Annual Total Returns             Cumulative Total Returns  
     1 Year      Since
Inception
           1 Year      Since
Inception
 

Fund NAV

    12.58      (13.73 )%        12.58      (34.23 )% 

Fund Market

    12.59        (13.75       12.59        (34.30

Index

    13.71        (13.32             13.71        (33.34

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was September 29, 2020. The first day of secondary market trading was October 1, 2020.

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

Expense Example

 

Actual           Hypothetical 5% Return         
 

Beginning

Account Value

(02/01/23)

 

 

 

      

Ending

Account Value

(07/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a)  

           

Beginning

Account Value

(02/01/23)

 

 

 

      

Ending

Account Value

(07/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a)  

    

Annualized

Expense

Ratio

 

 

 

$ 1,000.00        $ 1,079.10        $ 2.42             $ 1,000.00        $ 1,022.50        $ 2.36        0.47

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

22  

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


Fund Summary as of July 31, 2023 (continued)    iShares® Virtual Work and Life Multisector ETF

 

Portfolio Management Commentary

Global stocks of companies focused on helping people work, consume entertainment, or study from home advanced during the reporting period. Stocks in growth-oriented companies, including many in the communication services and information technology sectors, outperformed the broader market. Even as the U.S. government proclaimed an official end to the coronavirus emergency, the growing shift to working from home persisted. Compared with prior to the pandemic, about six times as many total workdays occurred from home, and job listings mentioning remote work also rose almost sixfold.

U.S. equities contributed the most to the Index’s return, led by the communication services sector. In the entertainment industry, stocks of visual and audio streaming services, including content providers and the interfaces and platforms from which consumers access them, benefited from subscription and revenue growth after a post-pandemic lull. The U.S. software and services industry within the information technology sector also contributed to the Index’s performance, led by companies providing business software designed to enhance remote work environments. Demand increased for cloud-based applications used to manage workflow, organization, and customer relationships, boosting revenue for the firms providing them. Amid substantial customer growth, subscription revenue also rose for suppliers of software targeting innovative project management collaboration.

Outside the U.S., stocks in China and India contributed to the Index’s return. In China, within the communication services sector, stocks of interactive and media services companies rose as revenue for large social media platforms increased, while cost containment raised profits for suppliers of related mobile-based apps. In addition, stocks in visual and audio streaming services benefited from subscription growth that rebounded after a stretch of widespread declines. In China’s consumer discretionary sector, revenue increased significantly for providers of education services. In India, food delivery companies in the consumer discretionary sector benefited from rising orders. On the downside, Swedish stocks detracted slightly from performance. Streaming services in the communication services sector reported slowing growth amid rising inflation.

Portfolio Information

 

SECTOR ALLOCATION

 

Sector    
Percent of
Total Investments
 
(a) 

Information Technology

    44.5

Communication Services

    31.9  

Consumer Discretionary

    16.9  

Consumer Staples

    3.9  

Health Care

    2.8  

TEN LARGEST HOLDINGS

 

Security    
Percent of
Total Investments
 
(a) 

Roku Inc.

    3.6

DoorDash Inc., Class A

    3.0  

Just Eat Takeaway.com NV

    2.9  

Five9 Inc.

    2.8  

Delivery Hero SE

    2.8  

Teladoc Health Inc.

    2.7  

Match Group Inc.

    2.7  

RingCentral Inc., Class A

    2.7  

Activision Blizzard Inc.

    2.6  

Dropbox Inc., Class A

    2.6  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D  S U M M A R Y

  23


About Fund Performance   

 

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

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

Disclosure of Expenses

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

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

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

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

 

 

24  

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


Schedule of Investments 

July 31, 2023

  

iShares® Breakthrough Environmental Solutions ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Automobile Components — 2.1%            

Linamar Corp.

    1,144     $ 66,385  

Tianneng Power International Ltd.

    24,000       26,891  
   

 

 

 
      93,276  
Automobiles — 21.9%  

Li Auto Inc.(a)

    8,400       180,323  

NIO Inc.(a)

    16,800       256,492  

Tesla Inc.(a)

    888       237,478  

XPeng Inc.(a)

    20,800       221,872  

Yadea Group Holdings Ltd.(b)

    24,000       54,616  
   

 

 

 
      950,781  
Building Products — 5.3%  

Munters Group AB(b)

    3,988       50,617  

Nibe Industrier AB, Class B

    20,100       181,056  
   

 

 

 
      231,673  
Chemicals — 7.2%  

Johnson Matthey PLC

    5,878       135,942  

Umicore SA

    6,011       178,017  
   

 

 

 
      313,959  
Electrical Equipment — 16.8%  

ABB Ltd., Registered

    5,092       204,329  

Alfen Beheer BV(a)(b)

    636       44,134  

Goldwind Science & Technology Co. Ltd., Class A

    7,600       11,919  

Gotion High-tech Co. Ltd., Class A(a)

    4,000       15,434  

GS Yuasa Corp.

    2,000       40,244  

Ming Yang Smart Energy Group Ltd., Class A

    5,600       14,152  

NARI Technology Co. Ltd., Class A

    17,760       60,481  

Nordex SE(a)

    3,296       46,574  

Shanghai Electric Group Co. Ltd., Class A(a)

    26,400       17,632  

Signify NV(b)

    3,239       101,839  

SunPower Corp.(a)(c)

    1,496       14,766  

Vestas Wind Systems A/S(a)

    6,041       161,575  
   

 

 

 
      733,079  
Electronic Equipment, Instruments & Components — 5.4%  

Landis+Gyr Group AG

    540       46,888  

Samsung SDI Co. Ltd.

    356       185,834  
   

 

 

 
      232,722  
Independent Power and Renewable Electricity Producers — 1.0%  

Gunkul Engineering PCL, NVDR

    138,800       14,042  

Sunnova Energy International Inc.(a)(c)

    1,756       31,011  
   

 

 

 
      45,053  
Machinery — 13.7%  

Kurita Water Industries Ltd.

    3,200       128,688  

Meidensha Corp.

    1,200       17,888  

NGK Insulators Ltd.

    7,200       88,303  

Xylem Inc./NY

    1,655       186,601  
Security   Shares     Value  
Machinery (continued)  

Yaskawa Electric Corp.

    4,000     $ 173,881  
   

 

 

 
      595,361  
Multi-Utilities — 4.8%  

E.ON SE

    16,537       209,198  
   

 

 

 
Semiconductors & Semiconductor Equipment — 21.5%        

Daqo New Energy Corp., ADR(a)

    1,632       63,762  

Duk San Neolux Co. Ltd.(a)

    348       10,997  

Enphase Energy Inc.(a)(c)

    640       97,171  

First Solar Inc.(a)

    604       125,270  

Hangzhou First Applied Material Co. Ltd., Class A

    4,820       23,622  

JA Solar Technology Co. Ltd., Class A

    4,880       22,729  

LONGi Green Energy Technology Co. Ltd., Class A

    19,900       83,380  

Meyer Burger Technology AG(a)

    57,580       34,619  

SMA Solar Technology AG(a)

    364       34,703  

SolarEdge Technologies Inc.(a)

    399       96,342  

TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A

    10,400       42,373  

TSEC Corp.

    8,465       8,425  

United Renewable Energy Co. Ltd.

    28,000       15,886  

Universal Display Corp.

    1,320       192,562  

Xinyi Solar Holdings Ltd.

    76,000       82,524  
   

 

 

 
      934,365  
   

 

 

 

Total Long-Term Investments — 99.7%
(Cost: $4,070,081)

 

    4,339,467  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 3.0%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.42%(d)(e)(f)

    130,333       130,372  
   

 

 

 

Total Short-Term Securities — 3.0%
(Cost: $130,370)

 

    130,372  
   

 

 

 

Total Investments — 102.7%
(Cost: $4,200,451)

 

    4,469,839  

Liabilities in Excess of Other Assets — (2.7)%

 

    (118,430
   

 

 

 

Net Assets — 100.0%

 

  $  4,351,409  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

All or a portion of this security is on loan.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 

 

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

  25


Schedule of Investments (continued)

July 31, 2023

  

iShares® Breakthrough Environmental Solutions ETF

 

Affiliates

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

 

Affiliated Issuer     
Value at
03/28/23
 
(a) 
    
Purchases
at Cost
 
 
    

Proceeds

from Sale

 

 

    

Net Realized

Gain (Loss)

 

 

    

Change in

Unrealized

Appreciation

(Depreciation)

 

 

 

 

    

Value at

07/31/23

 

 

    

Shares

Held at

07/31/23

 

 

 

     Income       

Capital
Gain

Distributions

from

Underlying

Funds


 

 

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

     $    —        $130,370(b)        $    —      $      $ 2      $ 130,372        130,333      $ 32 (c)     $  

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

            0(b)                                           25         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $      $ 2      $ 130,372         $ 57      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Commencement of operations.

 
  (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.

 
  (d) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

         
Description   

Number of

Contracts

    

Expiration

Date

      

Notional

Amount

(000)

 

Value/

Unrealized

Appreciation

(Depreciation)

 

Long Contracts

              

Micro E-Mini Russell 2000 Index

   1        09/15/23        $  10   $ 557  
              

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

               
     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total
 

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 557      $      $      $      $ 557  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

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

 

               
     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total
 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ 405      $      $      $      $ 405  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 557      $      $      $      $ 557  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

  

Average notional value of contracts — long

   $5,034 

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

 

 

26  

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


Schedule of Investments (continued)

July 31, 2023

  

iShares® Breakthrough Environmental Solutions ETF

 

Fair Value Hierarchy as of Period End

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

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

 

         
      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 1,111,348        $ 3,228,119        $        $ 4,339,467  

Short-Term Securities

                 

Money Market Funds

     130,372                            130,372  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 1,241,720        $ 3,228,119        $        $ 4,469,839  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $ 557        $        $   —        $ 557  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  27


Schedule of Investments

July 31, 2023

  

iShares® Cybersecurity and Tech ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Communications Equipment — 11.2%  

Accton Technology Corp.

    2,038,000     $  24,864,330  

ADTRAN Holdings Inc.

    417,890       4,066,070  

Calix Inc.(a)

    343,875       15,512,201  

Juniper Networks Inc.

    739,484       20,557,655  

Radware Ltd.(a)

    232,251       4,363,996  
   

 

 

 
      69,364,252  
IT Services — 10.1%            

Akamai Technologies Inc.(a)(b)

    244,892       23,142,294  

Change Holdings Inc.(b)

    239,000       3,158,978  

Netcompany Group A/S(a)(c)

    259,660       12,053,065  

Okta Inc.(a)(b)

    309,996       23,826,293  
   

 

 

 
      62,180,630  
Professional Services — 13.7%            

Booz Allen Hamilton Holding Corp., Class A

    220,832       26,738,338  

CACI International Inc., Class A(a)

    74,322       26,045,402  

My EG Services Bhd

    27,571,200       4,681,643  

Science Applications International Corp.

    225,755       27,393,112  
   

 

 

 
      84,858,495  
Software — 64.8%            

A10 Networks Inc.

    403,913       6,268,730  

Ahnlab Inc.

    34,411       1,696,115  

Alarm.com Holdings Inc.(a)

    278,665       15,385,095  

BlackBerry Ltd.(a)

    3,383,992       17,219,570  

Check Point Software Technologies Ltd.(a)(b)

    184,646       24,412,048  

Clear Secure Inc., Class A(b)

    475,283       11,268,960  

Crowdstrike Holdings Inc., Class A(a)(b)

    151,208       24,444,285  

CyberArk Software Ltd.(a)

    153,339       25,455,807  

Darktrace PLC(a)

    1,858,603       8,814,529  

Digital Arts Inc.

    63,900       2,528,727  

Everbridge Inc.(a)

    235,396       7,259,613  

ForgeRock Inc., Class A (a)(b)

    257,527       5,317,933  

Fortinet Inc.(a)

    335,775       26,096,433  

OneSpan Inc.(a)

    213,687       2,936,059  

Palo Alto Networks Inc.(a)

    105,307       26,322,538  

Qualys Inc.(a)(b)

    176,137       24,447,816  

 

Security   Shares     Value  
Software (continued)            

Rapid7 Inc.(a)

    345,663     $ 15,869,388  

SentinelOne Inc., Class A(a)(b)

    1,268,547       21,146,678  

TeamViewer AG(a)(c)

    794,908       13,512,355  

Tenable Holdings Inc.(a)(b)

    562,083       27,350,959  

Trend Micro Inc./Japan

    473,100       22,351,955  

Varonis Systems Inc.(a)

    623,376       17,890,891  

VMware Inc., Class A(a)

    165,953       26,159,171  

Zscaler Inc.(a)

    160,748       25,780,764  
   

 

 

 
      399,936,419  
   

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $601,315,149)

 

    616,339,796  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 4.7%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 5.42%(d)(e)(f)

    27,926,516       27,934,894  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 5.22%(d)(e)

    1,260,000       1,260,000  
   

 

 

 

Total Short-Term Securities — 4.7%
(Cost: $29,196,334)

 

    29,194,894  
   

 

 

 

Total Investments — 104.5%
(Cost: $630,511,483)

 

    645,534,690  

Liabilities in Excess of Other Assets — (4.5)%

 

    (27,906,035
   

 

 

 

Net Assets — 100.0%

 

  $ 617,628,655  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 

 

Affiliates

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

 

 

 
Affiliated Issuer   Value at
07/31/22
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
07/31/23
    Shares
Held at
07/31/23
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 56,048,701     $     $ (28,123,025 )(a)    $ 24,358     $ (15,140   $ 27,934,894       27,926,516       $ 92,846 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    510,000       750,000 (a)                        1,260,000       1,260,000       36,112       1  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 24,358     $ (15,140   $ 9,194,894         $128,958     $ 1  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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.

 

 

 

28  

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


Schedule of Investments (continued)

July 31, 2023

  

iShares® Cybersecurity and Tech ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 
Long Contracts                          

E-Mini Technology Select Sector Index

     6        09/15/23      $ 1,085    $ 26,926  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

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

 

 

Assets — Derivative Financial Instruments

                             

Futures contracts

                             

Unrealized appreciation on futures contracts(a)

   $     —      $    —        $ 26,926   $        $        $        $ 26,926  
  

 

    

 

 

      

 

 

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

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

 

 

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

 

 

Net Realized Gain (Loss) from

                             

Futures contracts

   $    —      $    —        $ 64,187   $        $        $        $ 64,187  
  

 

    

 

 

      

 

 

 

 

      

 

 

      

 

 

      

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                             

Futures contracts

   $    —      $        $(32,713)   $        $        $        $ (32,713
  

 

    

 

 

      

 

 

 

 

      

 

 

      

 

 

      

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 755,745  

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 522,678,099        $ 93,661,697        $        $ 616,339,796  

Short-Term Securities

                 

Money Market Funds

     29,194,894                            29,194,894  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 551,872,993        $ 93,661,697        $        $ 645,534,690  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $ 26,926        $        $        $ 26,926  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

 

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

  29


Schedule of Investments

July 31, 2023

  

iShares® Exponential Technologies ETF

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Common Stocks

 

Australia — 3.4%  

IRESS Ltd.

    2,261,522      $ 15,809,654  

Megaport Ltd.(a)(b)

    3,509,740        24,112,427  

Netwealth Group Ltd.

    1,572,165        16,062,733  

NEXTDC Ltd.(a)

    2,453,386        21,056,209  

Technology One Ltd.

    1,624,576        17,212,631  

WiseTech Global Ltd.

    412,049        23,795,431  
    

 

 

 
       118,049,085  
Canada — 2.3%             

Ballard Power Systems Inc.(a)(b)

    2,699,708        12,836,742  

BlackBerry Ltd.(a)

    3,351,724        17,055,373  

Boralex Inc., Class A

    534,594        13,832,592  

Brookfield Renewable Corp., Class A

    476,280        14,844,809  

Lithium Americas Corp.(a)(b)

    618,322        12,482,260  

Northland Power Inc.

    531,359        10,279,428  
    

 

 

 
       81,331,204  
Cayman Islands — 0.5%             

NIO Inc.(a)(b)

    1,160,750        17,721,660  
    

 

 

 
China — 5.7%             

Baidu Inc.(a)

    1,030,950        20,155,884  

BYD Co. Ltd., Class A

    376,400        14,367,317  

China Longyuan Power Group Corp. Ltd., Class H

    12,841,000        12,432,098  

China Resources Power Holdings Co. Ltd.

    8,338,000        18,088,791  

Ganfeng Lithium Group Co. Ltd., Class A

    1,259,960        10,567,714  

GDS Holdings Ltd., Class A(a)

    6,856,300        11,288,985  

Genscript Biotech Corp.(a)

    5,452,000        14,042,003  

Innovent Biologics Inc.(a)(c)

    4,154,500        18,576,591  

Li Auto Inc.(a)

    1,306,000        28,035,929  

Shanghai Junshi Biosciences Co. Ltd., Class A(a)

    1,815,327        10,355,104  

Tianqi Lithium Corp.

    1,789,200        11,196,799  

XPeng Inc.(a)

    2,609,600        27,836,414  
    

 

 

 
       196,943,629  
Denmark — 0.8%             

Orsted AS(c)

    159,092        13,844,101  

Vestas Wind Systems A/S(a)

    561,938        15,029,852  
    

 

 

 
       28,873,953  
Finland — 1.0%             

Nokia OYJ

    3,064,816        12,047,605  

Wartsila OYJ Abp

    1,716,031        21,558,234  
    

 

 

 
       33,605,839  
France — 1.4%             

Dassault Systemes SE

    400,950        17,136,057  

Sanofi

    154,353        16,467,076  

Worldline SA/France(a)(c)

    333,456        13,217,996  
    

 

 

 
       46,821,129  
Germany — 2.0%             

Infineon Technologies AG

    454,482        19,967,877  

Merck KGaA

    81,184        14,266,053  

SAP SE

    137,465        18,751,815  

Siemens AG, Registered

    105,139        17,920,117  
    

 

 

 
       70,905,862  
Israel — 0.5%             

Nice Ltd.(a)

    77,319        16,830,064  
    

 

 

 
Italy — 1.0%             

Infrastrutture Wireless Italiane SpA(c)

    1,471,507        18,453,866  
Security   Shares      Value  
Italy (continued)             

Nexi SpA(a)(c)

    1,800,287      $ 15,590,490  
    

 

 

 
       34,044,356  
Japan — 4.7%             

Chugai Pharmaceutical Co. Ltd.

    553,300        16,466,894  

Denso Corp.

    279,300        19,446,957  

FANUC Corp.

    484,500        14,822,027  

Harmonic Drive Systems Inc.

    554,300        15,266,451  

Murata Manufacturing Co. Ltd.

    274,300        16,293,886  

Nabtesco Corp.

    593,100        12,580,480  

Taiyo Yuden Co. Ltd.

    466,100        13,898,779  

TDK Corp.

    425,300        16,292,500  

Tokyo Electron Ltd.

    134,700        20,216,710  

Yaskawa Electric Corp.

    442,700        19,244,290  
    

 

 

 
       164,528,974  
Netherlands — 2.7%             

Adyen NV(a)(c)

    10,055        18,662,227  

ASM International NV

    52,950        25,155,503  

ASML Holding NV

    24,770        17,741,978  

QIAGEN NV(a)

    302,867        14,210,988  

TomTom NV(a)

    2,016,639        17,617,520  
    

 

 

 
       93,388,216  
South Korea — 0.9%             

Samsung Electro-Mechanics Co. Ltd.

    144,323        16,464,203  

Samsung SDI Co. Ltd.

    27,470        14,339,464  
    

 

 

 
       30,803,667  
Spain — 1.1%             

Amadeus IT Group SA

    278,357        19,968,243  

Cellnex Telecom SA(c)

    422,209        17,242,626  
    

 

 

 
       37,210,869  
Sweden — 1.2%             

Sandvik AB

    815,253        16,559,845  

Swedish Orphan Biovitrum AB(a)(b)

    731,816        14,323,888  

Telefonaktiebolaget LM Ericsson, Class B

    2,332,329        11,732,720  
    

 

 

 
       42,616,453  
Switzerland — 2.0%             

CRISPR Therapeutics AG(a)(b)

    290,965        16,681,023  

Novartis AG, Registered

    161,618        16,920,941  

Roche Holding AG, NVS

    45,736        14,180,508  

STMicroelectronics NV

    392,112        20,972,642  
    

 

 

 
       68,755,114  
Taiwan — 1.3%             

MediaTek Inc.

    640,000        14,083,143  

Taiwan Semiconductor Manufacturing Co. Ltd.

    965,000        17,425,583  

Yageo Corp.

    947,000        13,883,342  
    

 

 

 
       45,392,068  
United Kingdom — 2.0%             

AstraZeneca PLC

    107,044        15,379,675  

GSK PLC

    805,181        14,333,149  

Ocado Group PLC(a)

    1,755,955        21,139,182  

Sage Group PLC (The)

    1,515,857        18,233,602  
    

 

 

 
       69,085,608  
United States — 64.8%             

AbbVie Inc.

    89,409        13,373,799  

Advanced Micro Devices Inc.(a)

    209,923        24,015,191  

AeroVironment Inc.(a)

    178,884        17,040,490  

Agilent Technologies Inc.

    95,996        11,689,433  

Akamai Technologies Inc.(a)

    164,851        15,578,419  

Albemarle Corp.

    57,006        12,101,234  

 

 

 

30  

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


Schedule of Investments (continued)

July 31, 2023

  

iShares® Exponential Technologies ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United States (continued)            

Alnylam Pharmaceuticals Inc.(a)

    63,787     $ 12,463,980  

Alphabet Inc., Class A(a)

    155,198       20,597,879  

Amazon.com Inc.(a)

    166,454       22,251,571  

American Tower Corp.

    70,084       13,337,686  

Analog Devices Inc.

    88,746       17,707,489  

Ansys Inc.(a)

    60,660       20,751,786  

Applied Materials Inc.

    138,579       21,007,191  

Aptiv PLC(a)

    150,930       16,525,326  

Arista Networks Inc.(a)(b)

    116,162       18,015,565  

Atlassian Corp., NVS(a)(b)

    117,406       21,360,848  

Autodesk Inc.(a)

    76,358       16,187,132  

Biogen Inc.(a)(b)

    50,435       13,627,033  

BioMarin Pharmaceutical Inc.(a)

    142,459       12,526,420  

Bio-Techne Corp.

    182,779       15,243,769  

Blackbaud Inc.(a)

    261,130       19,702,258  

Block Inc.(a)(b)

    241,671       19,461,766  

Bloom Energy Corp., Class A(a)(b)

    732,297       13,078,824  

Box Inc., Class A(a)(b)

    530,142       16,566,937  

Bristol-Myers Squibb Co.

    183,737       11,426,604  

Broadcom Inc.

    28,383       25,506,383  

Broadridge Financial Solutions Inc.

    103,618       17,399,535  

Cadence Design Systems Inc.(a)

    91,754       21,471,354  

Celanese Corp., Class A

    144,779       18,153,839  

ChargePoint Holdings Inc., Class A(a)(b)

    1,374,552       11,903,620  

Cisco Systems Inc.

    304,943       15,869,234  

Cloudflare Inc., Class A(a)(b)

    332,712       22,880,604  

Cogent Communications Holdings Inc.

    262,107       16,051,433  

Coinbase Global Inc., Class A(a)(b)

    357,108       35,214,420  

CoStar Group Inc.(a)

    184,242       15,470,801  

Crowdstrike Holdings Inc., Class A(a)(b)

    130,163       21,042,151  

Datadog Inc., Class A(a)

    215,764       25,183,974  

Digital Realty Trust Inc.

    135,820       16,925,888  

DISH Network Corp., Class A(a)(b)

    1,022,796       8,110,772  

DocuSign Inc., Class A(a)

    350,138       18,844,427  

Dropbox Inc., Class A(a)

    667,937       18,000,902  

DuPont de Nemours Inc.

    211,778       16,440,326  

Dynatrace Inc.(a)

    408,285       22,329,107  

Edwards Lifesciences Corp.(a)(b)

    203,063       16,665,380  

Elastic NV(a)

    283,384       18,830,867  

Eli Lilly & Co.

    39,613       18,006,089  

Enphase Energy Inc.(a)(b)

    46,191       7,013,180  

Envestnet Inc.(a)(b)

    234,192       14,515,220  

Exact Sciences Corp.(a)(b)

    320,853       31,296,002  

F5 Inc.(a)

    99,397       15,728,581  

FactSet Research Systems Inc.

    32,842       14,287,584  

First Solar Inc.(a)

    95,195       19,743,443  

Five9 Inc.(a)

    228,592       20,058,948  

Fortinet Inc.(a)(b)

    285,649       22,200,640  

Gen Digital Inc.

    654,263       12,725,415  

Gilead Sciences Inc.

    168,342       12,817,560  

Global Payments Inc.

    149,289       16,459,112  

Guardant Health Inc.(a)

    305,592       11,924,200  

Guidewire Software Inc.(a)(b)

    244,376       20,727,972  

Hubbell Inc., Class B

    59,690       18,623,280  

HubSpot Inc.(a)

    53,430       31,018,786  

Illumina Inc.(a)(b)

    70,766       13,597,687  

Incyte Corp.(a)

    174,736       11,134,178  

Intel Corp.

    520,402       18,614,780  

Intellia Therapeutics Inc.(a)(b)

    387,052       16,383,911  

Intuit Inc.

    37,953       19,420,550  
Security   Shares     Value  
United States (continued)            

Intuitive Surgical Inc.(a)(b)

    54,983     $ 17,836,485  

Ionis Pharmaceuticals Inc.(a)(b)

    385,885       15,987,216  

Jazz Pharmaceuticals PLC(a)

    97,882       12,765,770  

Johnson & Johnson

    82,732       13,860,092  

Keysight Technologies Inc.(a)

    82,650       13,313,262  

KLA Corp.

    38,011       19,535,753  

Lam Research Corp.

    33,139       23,810,040  

Livent Corp.(a)(b)

    585,297       14,410,012  

Lumen Technologies Inc.

    2,693,450       4,821,275  

Manhattan Associates Inc.(a)

    124,818       23,792,807  

MarketAxess Holdings Inc.

    53,209       14,324,927  

Merck & Co. Inc.

    134,031       14,294,406  

Meta Platforms Inc, Class A(a)

    129,285       41,190,201  

Microchip Technology Inc.

    196,113       18,422,855  

Micron Technology Inc.(b)

    273,682       19,538,158  

Microsoft Corp.

    60,487       20,318,793  

Moderna Inc.(a)

    82,295       9,682,830  

MongoDB Inc.(a)

    82,618       34,980,461  

Monolithic Power Systems Inc.(b)

    40,034       22,398,623  

Nvidia Corp.

    91,330       42,677,596  

NXP Semiconductors NV

    89,979       20,063,517  

Okta Inc.(a)

    238,977       18,367,772  

ON Semiconductor Corp.(a)(b)

    209,985       22,625,884  

Oracle Corp.

    187,005       21,922,596  

Palantir Technologies Inc., Class A(a)

    2,083,056       41,327,831  

Palo Alto Networks Inc.(a)(b)

    89,458       22,360,922  

Plug Power Inc.(a)(b)

    1,075,870       14,115,414  

PTC Inc.(a)(b)

    121,273       17,682,816  

Qorvo Inc.(a)

    154,591       17,008,102  

Qualcomm Inc.

    124,867       16,503,671  

Regeneron Pharmaceuticals Inc.(a)

    19,294       14,314,412  

Revvity Inc.

    105,327       12,949,955  

RingCentral Inc., Class A(a)

    417,990       17,288,066  

Salesforce Inc.(a)(b)

    112,951       25,415,105  

SEI Investments Co.(b)

    243,906       15,363,639  

ServiceNow Inc.(a)

    37,936       22,116,688  

Skyworks Solutions Inc.

    160,196       18,321,617  

Snowflake Inc., Class A(a)

    107,261       19,061,352  

SoFi Technologies Inc.(a)(b)

    3,424,906       39,215,174  

SolarEdge Technologies Inc.(a)

    47,514       11,472,730  

Splunk Inc.(a)(b)

    176,025       19,068,788  

SunPower Corp.(a)(b)

    667,836       6,591,541  

Sunrun Inc.(a)(b)

    513,134       9,739,283  

Synopsys Inc.(a)

    45,509       20,560,966  

Teradyne Inc.

    161,213       18,207,396  

Tesla Inc.(a)

    84,632       22,633,136  

Texas Instruments Inc.

    84,226       15,160,680  

Toast Inc., Class A(a)(b)

    855,437       18,879,495  

Tradeweb Markets Inc., Class A(b)

    229,101       18,738,171  

Twilio Inc., Class A(a)(b)

    325,201       21,473,022  

Tyler Technologies Inc.(a)(b)

    47,758       18,942,256  

Veeva Systems Inc., Class A(a)(b)

    89,107       18,197,432  

Vertex Pharmaceuticals Inc.(a)

    46,392       16,345,757  

VMware Inc., Class A(a)

    124,795       19,671,436  

Waters Corp.(a)

    43,505       12,016,516  

Zscaler Inc.(a)(b)

    128,946       20,680,359  
   

 

 

 
      2,246,595,824  
   

 

 

 
Total Common Stocks — 99.3%
(Cost: $2,844,888,023)
        3,443,503,574  
   

 

 

 

 

 

 

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)

July 31, 2023

  

iShares® Exponential Technologies ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Preferred Stocks

   
Chile — 0.4%            

Sociedad Quimica y Minera de Chile SA, Class B, Preference Shares

    155,477     $ 11,400,232  
   

 

 

 

Total Preferred Stocks — 0.4%
(Cost: $8,873,464)

 

    11,400,232  
   

 

 

 

Total Long-Term Investments — 99.7%
(Cost: $2,853,761,487)

 

    3,454,903,806  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 6.6%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 5.42%(d)(e)(f)

    224,335,809       224,403,109  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 5.22%(d)(e)

    5,560,000       5,560,000  
   

 

 

 

Total Short-Term Securities — 6.6%
(Cost: $229,893,594)

 

    229,963,109  
   

 

 

 

Total Investments — 106.3%
(Cost: $3,083,655,081)

 

    3,684,866,915  

Liabilities in Excess of Other Assets — (6.3)%

 

    (217,266,670
   

 

 

 

Net Assets — 100.0%

 

  $  3,467,600,245  
   

 

 

 
(a)

Non-income producing security.

(b)

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

Affiliates

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

 

                   
Affiliated Issuer   Value at
07/31/22
   

Purchases

at Cost

   

Proceeds

from Sale

    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
07/31/23
   

Shares

Held at
07/31/23

    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

    $164,930,879       $59,422,597 (a)      $       —     $ 4,527     $ 45,106     $ 224,403,109       224,335,809     $ 1,825,929 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    5,890,000             (330,000 )(a)                   5,560,000       5,560,000       120,863       1  

BlackRock
Inc.(c)

    14,603,515       588,715       (15,900,340     5,205,181       (4,497,071                 213,368        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 5,209,708     $ (4,451,965   $ 229,963,109       $ 2,160,160     $ 1  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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.

 
  (c) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

Long Contracts

              

Euro STOXX 50 Index

   21        09/15/23        $ 1,037     $ 37,113  

MSCI Emerging Markets Index

   28        09/15/23          1,476       60,985  

S&P 500 E-Mini Index

   41        09/15/23          9,460       512,511  
              

 

 

 
               $ 610,609  
              

 

 

 

 

 

 

32   2 0 2 3I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (continued)

July 31, 2023

  

iShares® Exponential Technologies ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 610,609      $      $      $      $ 610,609  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

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

 

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

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ 629,369      $      $      $      $ 629,369  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 204,841      $      $      $      $ 204,841  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

  

Average notional value of contracts — long

   $ 9,791,021   

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

Fair Value Hierarchy as of Period End

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

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

 

         
      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 2,344,608,051        $ 1,098,895,523        $        $ 3,443,503,574  

Preferred Stocks

     11,400,232                            11,400,232  

Short-Term Securities

                 

Money Market Funds

     229,963,109                            229,963,109  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,585,971,392        $ 1,098,895,523        $    —        $ 3,684,866,915  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $ 573,496        $ 37,113        $        $ 610,609  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  33


Schedule of Investments

July 31, 2023

  

iShares® Future Cloud 5G and Tech ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Chemicals — 2.4%            

DuPont de Nemours Inc.

    1,869     $ 145,090  
   

 

 

 
Communications Equipment — 14.1%            

Arista Networks Inc.(a)

    1,026       159,122  

Ciena Corp.(a)

    3,036       128,119  

F5 Inc.(a)

    883       139,726  

Juniper Networks Inc.

    4,074       113,257  

Lumentum Holdings Inc.(a)

    2,165       113,359  

Nokia OYJ

    27,230       107,040  

Telefonaktiebolaget LM Ericsson, Class B

    20,672       103,990  
   

 

 

 
      864,613  
Consumer Finance — 5.0%            

SoFi Technologies Inc.(a)

    26,727       306,024  
   

 

 

 
Diversified Telecommunication Services — 1.0%            

JTOWER Inc.(a)

    200       10,216  

NetLink NBN Trust

    63,000       40,751  

Tower Bersama Infrastructure Tbk PT

    82,200       10,520  
   

 

 

 
      61,487  
Electronic Equipment, Instruments & Components — 5.4%  

Murata Manufacturing Co. Ltd.

    2,400       142,564  

Quectel Wireless Solutions Co. Ltd., Class A

    408       3,271  

Taiyo Yuden Co. Ltd.

    2,700       80,512  

Yageo Corp.

    7,142       104,704  
   

 

 

 
       331,051  
Specialized REITs — 5.2%            

American Tower Corp.

    615       117,041  

Crown Castle Inc.

    939       101,684  

SBA Communications Corp., Class A

    453       99,184  
   

 

 

 
      317,909  
IT Services — 13.8%            

Akamai Technologies Inc.(a)

    1,468       138,727  

Cloudflare Inc., Class A(a)(b)

    2,952       203,009  

Computacenter PLC

    2,288       64,549  

GDS Holdings Ltd., Class A(a)

    21,300       35,071  

Kyndryl Holdings Inc.(a)

    6,575       89,814  

NEXTDC Ltd.(a)

    14,760       126,678  

Twilio Inc., Class A(a)(b)

    2,889       190,761  
   

 

 

 
      848,609  
Media — 0.8%            

DISH Network Corp., Class A(a)

    6,046       47,945  
   

 

 

 
Semiconductors & Semiconductor Equipment — 33.0%  

Analog Devices Inc.

    781       155,833  

Broadcom Inc.

    251       225,561  

Diodes Inc.(a)

    1,431       135,215  
Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

Infineon Technologies AG

    4,020     $ 176,621  

Intel Corp.

    4,631       165,651  

MACOM Technology Solutions Holdings Inc., Class H(a)

    1,525       106,628  

MediaTek Inc.

    6,000       132,029  

NXP Semiconductors NV

    795       177,269  

Qorvo Inc.(a)

    1,369       150,617  

Qualcomm Inc.

    1,105       146,048  

SiTime Corp.(a)(b)

    368       47,476  

Skyworks Solutions Inc.

    1,418       162,177  

Taiwan Semiconductor Manufacturing Co. Ltd.

    8,000       144,461  

Wolfspeed Inc.(a)(b)

    1,597       105,242  
   

 

 

 
      2,030,828  
Software — 13.4%            

Confluent Inc., Class A(a)(b)

    4,561       157,537  

Datadog Inc., Class A(a)

    1,916       223,636  

New Relic Inc.(a)

    1,648       138,399  

Nutanix Inc., Class A(a)

    4,314       130,283  

Teradata Corp.(a)

    3,104       176,462  
   

 

 

 
      826,317  
Technology Hardware, Storage & Peripherals — 5.8%  

Inspur Electronic Information Industry Co. Ltd., Class A

    3,200       20,464  

Pure Storage Inc., Class A(a)

    4,545       168,120  

Wiwynn Corp.

    3,000       170,367  
   

 

 

 
      358,951  
   

 

 

 

Total Long-Term Investments — 99.9%
(Cost: $6,384,851)

      6,138,824  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 11.3%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.42%(c)(d)(e)

    697,435       697,644  
   

 

 

 

Total Short-Term Securities — 11.3%
(Cost: $697,642)

 

    697,644  
   

 

 

 

Total Investments — 111.2%
(Cost: $7,082,493)