LOGO

  OCTOBER 31, 2023

 

  

2023 Semi-Annual Report

(Unaudited)

 

iShares Trust

 

·  

iShares Morningstar Mid-Cap Value ETF | IMCV | NASDAQ

 

·  

iShares Morningstar Small-Cap ETF | ISCB | NYSE Arca

 

·  

iShares Morningstar U.S. Equity ETF | ILCB | NYSE Arca

 

·  

iShares Morningstar Value ETF | ILCV | NYSE Arca


The Markets in Review

Dear Shareholder,

The combination of continued economic growth and cooling inflation provided a supportive backdrop for investors during the 12-month reporting period ended October 31, 2023. Significantly tighter monetary policy helped to rein in inflation, as the annual increase in the Consumer Price Index declined to its long-term average of approximately 3% in October 2023. Meanwhile, real economic growth proved more resilient than many investors anticipated. A moderating labor market also helped ease inflationary pressure, although wages continued to grow and unemployment rates touched the lowest levels in decades before rising slightly. This robust labor market powered further growth in consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.

Equity returns were solid during the period, as the durability of consumer spending mitigated investors’ concerns about the economy’s trajectory. The U.S. economy continued to show strength, and growth further accelerated in the third quarter of 2023. However, equity returns were uneven, as the performance of a few notable technology companies supported gains among large-capitalization U.S. stocks, while small-capitalization U.S. stocks declined overall. Meanwhile, international developed market equities advanced, and emerging market equities posted solid gains.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market benefited from improving economic sentiment, 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”), attempting to manage persistent inflation, raised interest rates six times during the 12-month period, but slowed and then paused its tightening later in the period. The Fed also wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity.

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 several pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again.

While we favor an overweight position in 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 Japanese stocks in the near term as shareholder-friendly policies generate increased investor interest. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, euro area government bonds and gilts, 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.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

    Total Returns as of October 31, 2023

 

 
     
      6-Month       12-Month   
   

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

    1.39     10.14
   

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

    (5.29     (8.56
   

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

    (7.88       14.40  
   

Emerging market equities
(MSCI Emerging
Markets Index)

    (4.78       10.80  
   

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

        2.63           4.77  
   

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

    (9.70     (3.25
   

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

    (6.13         0.36  
   

Tax-exempt municipal
bonds (Bloomberg Municipal
Bond Index)

    (4.65         2.64  
   

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

        0.02           6.23  

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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Table of Contents

 

    Page  

 

 

The Markets in Review

    2  

Semi-Annual Report:

 

Fund Summary

    4  

About Fund Performance

    8  

Disclosure of Expenses

    8  

Schedules of Investments

    9  

Financial Statements:

 

Statements of Assets and Liabilities

    49  

Statements of Operations

    50  

Statements of Changes in Net Assets

    51  

Financial Highlights

    53  

Notes to Financial Statements

    57  

Board Review and Approval of Investment Advisory Contract

    65  

Supplemental Information

    67  

General Information

    68  

Glossary of Terms Used in this Report

    69  

 

 

  3


Fund Summary as of October 31, 2023    iShares® Morningstar Mid-Cap Value ETF

 

Investment Objective

The iShares Morningstar Mid-Cap Value ETF (the “Fund”) seeks to track the investment results of an index composed of mid-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar® US Mid Cap Broad Value 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    

 
      6-Month Total
Returns
     1 Year      5 Years      10 Years           1 Year      5 Years      10 Years  

Fund NAV

     (5.32 )%       (3.13 )%       5.48      7.28        (3.13 )%       30.58      102.00

Fund Market

     (5.33      (3.19      5.49        7.28          (3.19      30.61        102.00  

Index

     (5.25      (3.06      5.63        7.51            (3.06      31.51        106.36  

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Mid Value IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar® US Mid Cap Broad Value IndexSM.

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
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $       1,000.00          $          946.80          $         0.29               $       1,000.00          $       1,024.83          $       0.31          0.06

 

(a)  

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (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.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    18.7

Industrials

    12.7  

Utilities

    11.6  

Materials

    9.5  

Health Care

    8.6  

Information Technology

    8.6  

Real Estate

    8.4  

Consumer Discretionary

    7.7  

Energy

    6.9  

Consumer Staples

    4.8  

Communication Services

    2.5  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

American International Group, Inc.

    1.1

Newmont Corp.

    1.1  

PACCAR, Inc.

    1.1  

Williams Cos., Inc. (The)

    1.1  

Exelon Corp.

    1.0  

Capital One Financial Corp.

    1.0  

ONEOK, Inc.

    1.0  

Centene Corp.

    1.0  

Nucor Corp.

    1.0  

Simon Property Group, Inc.

    0.9  

 

(a)  

Excludes money market funds.

 

 

4  

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


Fund Summary as of October 31, 2023    iShares® Morningstar Small-Cap ETF

 

Investment Objective

The iShares Morningstar Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities, as represented by the Morningstar® US Small Cap Extended 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    

 
      6-Month Total
Returns
     1 Year      5 Years      10 Years           1 Year      5 Years      10 Years  

Fund NAV

     (4.81 )%       (5.22 )%       2.90      5.17        (5.22 )%       15.37      65.47

Fund Market

     (4.60      (5.33      2.88        5.15          (5.33      15.25        65.29  

Index

     (4.89      (5.41      2.89        5.21            (5.41      15.29        66.20  

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Small Core IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar® US Small Cap Extended IndexSM.

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
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $       1,000.00          $          951.90          $         0.20               $       1,000.00          $       1,024.93          $       0.20          0.04

 

(a)  

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (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.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Industrials

    18.9

Financials

    17.0  

Consumer Discretionary

    13.3  

Information Technology

    13.2  

Health Care

    11.8  

Real Estate

    6.2  

Energy

    6.0  

Materials

    5.1  

Consumer Staples

    3.3  

Communication Services

    3.0  

Utilities

    2.2  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Vertiv Holdings Co., Class A

    0.4

Super Micro Computer, Inc.

    0.3  

Tradeweb Markets, Inc., Class A

    0.3  

Pure Storage, Inc., Class A

    0.3  

Saia, Inc.

    0.3  

XPO, Inc.

    0.3  

Range Resources Corp.

    0.3  

Nutanix, Inc., Class A

    0.3  

Antero Resources Corp.

    0.3  

Omega Healthcare Investors, Inc.

    0.3  

 

(a)  

Excludes money market funds.

 

 

U N D    U M M A R Y

  5


Fund Summary as of October 31, 2023    iShares® Morningstar U.S. Equity ETF

 

Investment Objective

The iShares Morningstar U.S. Equity ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities, as represented by the Morningstar® US Large-Mid Cap 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 re included in the Index.

Performance

 

           

 Average Annual Total Returns 

        

    Cumulative Total Returns    

 
      6-Month Total
Returns
     1 Year      5 Years      10 Years           1 Year      5 Years      10 Years  

Fund NAV

     1.63      9.96      9.74      10.37        9.96      59.17      168.29

Fund Market

     1.70        9.96        9.76        10.37          9.96        59.28        168.28  

Index

     1.64        9.97        9.85        10.54            9.97        59.99        172.50  

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Large Core IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar® US Large-Mid Cap IndexSM.

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
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $       1,000.00          $          1,016.30          $         0.15               $       1,000.00          $       1,024.99          $         0.15          0.03

 

(a)  

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (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.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Information Technology

    28.1

Health Care

    13.0  

Financials

    12.8  

Consumer Discretionary

    10.5  

Industrials

    8.8  

Communication Services

    8.5  

Consumer Staples

    6.4  

Energy

    4.5  

Real Estate

    2.5  

Materials

    2.5  

Utilities

    2.4  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Microsoft Corp.

    6.8

Apple Inc.

    6.8  

Amazon.com, Inc.

    3.3  

NVIDIA Corp.

    2.7  

Alphabet, Inc., Class A

    2.0  

Meta Platforms, Inc., Class A

    1.8  

Alphabet, Inc., Class C, NVS

    1.7  

Berkshire Hathaway, Inc., Class B

    1.7  

Tesla, Inc.

    1.5  

UnitedHealth Group, Inc.

    1.3  

 

(a)  

Excludes money market funds.

 

 

6  

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Fund Summary as of October 31, 2023    iShares® Morningstar Value ETF

 

Investment Objective

The iShares Morningstar Value ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar® US Large-Mid Cap Broad Value 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    

 
      6-Month Total
Returns
     1 Year      5 Years      10 Years           1 Year      5 Years      10 Years  

Fund NAV

     (2.12 )%       2.80      6.83      7.96        2.80      39.16      115.11

Fund Market

     (2.09      2.74        6.84        7.95          2.74        39.20        114.99  

Index

     (2.11      2.82        6.98        8.16            2.82        40.09        119.21  

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Large Value IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar® US Large-Mid Cap Broad Value IndexSM.

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
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $       1,000.00          $          978.80          $           0.20               $       1,000.00          $       1,024.94          $         0.20          0.04

 

(a)  

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (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.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    19.2

Health Care

    16.5  

Industrials

    11.2  

Information Technology

    10.9  

Consumer Staples

    9.9  

Communication Services

    9.0  

Energy

    7.9  

Consumer Discretionary

    4.9  

Utilities

    4.4  

Materials

    3.6  

Real Estate

    2.5  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Berkshire Hathaway, Inc., Class B

    3.6

Exxon Mobil Corp.

    2.4  

JPMorgan Chase & Co.

    2.3  

Meta Platforms, Inc., Class A

    2.2  

Johnson & Johnson

    2.1  

Procter & Gamble Co. (The)

    2.0  

Alphabet, Inc., Class A

    1.7  

Chevron Corp.

    1.5  

AbbVie, Inc.

    1.4  

Alphabet, Inc., Class C, NVS

    1.4  

 

(a)  

Excludes money market funds.

 

 

U N D    U M M A R Y

  7


About Fund Performance

 

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

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

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

Disclosure of Expenses

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

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

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

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

 

 

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Schedule of Investments (unaudited)

October 31, 2023

  

iShares® Morningstar Mid-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks            
Aerospace & Defense — 1.3%            

Huntington Ingalls Industries, Inc.

    2,596     $ 570,653  

L3Harris Technologies, Inc.

    24,999       4,485,070  

Textron, Inc.

    17,559       1,334,484  
   

 

 

 
      6,390,207  
Air Freight & Logistics — 0.4%            

CH Robinson Worldwide, Inc.(a)

    10,582       865,925  

Expeditors International of Washington, Inc.(a)

    11,723       1,280,738  
   

 

 

 
      2,146,663  
Automobile Components — 0.3%            

BorgWarner, Inc.

    18,779       692,945  

Lear Corp.

    4,910       637,122  
   

 

 

 
      1,330,067  
Automobiles — 0.3%            

Rivian Automotive, Inc., Class A(a)(b)

    88,372       1,433,394  
   

 

 

 
Banks — 2.5%            

Citizens Financial Group, Inc.

    62,509       1,464,586  

East West Bancorp, Inc.

    18,662       1,000,657  

Fifth Third Bancorp

    90,024       2,134,469  

First Horizon Corp.

    74,259       798,284  

Huntington Bancshares, Inc.

    191,498       1,847,956  

KeyCorp

    123,992       1,267,198  

M&T Bank Corp.

    21,927       2,472,269  

Regions Financial Corp.

    124,123       1,803,507  
   

 

 

 
          12,788,926  
Beverages — 0.3%            

Molson Coors Beverage Co., Class B

    24,588       1,420,449  
   

 

 

 
Biotechnology — 0.3%            

Karuna Therapeutics, Inc.(b)

    2,139       356,379  

United Therapeutics Corp.(b)

    6,214       1,384,852  
   

 

 

 
      1,741,231  
Broadline Retail — 0.5%            

Coupang, Inc., Class A(b)

    49,188       836,196  

eBay, Inc.

    39,763       1,559,902  
   

 

 

 
      2,396,098  
Building Products — 2.4%            

A O Smith Corp.

    7,403       516,433  

Allegion PLC

    4,514       443,997  

Builders FirstSource, Inc.(b)

    7,667       832,023  

Carlisle Cos., Inc.

    2,320       589,489  

Carrier Global Corp.

    70,267       3,348,925  

Fortune Brands Innovations, Inc.

    16,721       933,032  

Lennox International, Inc.

    2,238       829,268  

Masco Corp.

    29,766       1,550,511  

Owens Corning

    11,894       1,348,423  

Trane Technologies PLC

    9,932       1,890,159  
   

 

 

 
      12,282,260  
Capital Markets — 4.2%            

Ameriprise Financial, Inc.

    8,040       2,529,143  

Bank of New York Mellon Corp. (The)

    102,935       4,374,738  

Carlyle Group, Inc. (The)

    28,705       790,536  

Coinbase Global, Inc., Class A(a)(b)

    22,367       1,724,943  

Franklin Resources, Inc.

    37,693       859,023  

Invesco Ltd.

    59,629       773,388  

Nasdaq, Inc.

    26,947       1,336,571  

Northern Trust Corp.

    27,382       1,804,748  

Raymond James Financial, Inc.

    11,359       1,084,103  

SEI Investments Co.

    6,590       353,619  
Security   Shares     Value  
Capital Markets (continued)            

State Street Corp.

    42,116     $ 2,721,957  

T Rowe Price Group, Inc.

    29,646       2,682,963  
   

 

 

 
          21,035,732  
Chemicals — 4.5%            

Albemarle Corp.

    7,245       918,521  

Celanese Corp., Class A

    13,245       1,516,685  

CF Industries Holdings, Inc.

    25,513       2,035,427  

Dow, Inc.

    92,928       4,492,140  

DuPont de Nemours, Inc.

    33,416       2,435,358  

Eastman Chemical Co.

    15,704       1,173,560  

FMC Corp.

    9,915       527,478  

International Flavors & Fragrances, Inc.

    33,744       2,306,402  

LyondellBasell Industries NV, Class A

    33,782       3,048,488  

Mosaic Co. (The)

    43,978       1,428,405  

Olin Corp.

    9,954       425,235  

PPG Industries, Inc.

    11,953       1,467,470  

RPM International, Inc.

    8,331       760,370  

Westlake Corp.

    1,774       204,649  
   

 

 

 
      22,740,188  
Communications Equipment — 0.4%            

F5, Inc.(b)

    5,238       794,028  

Juniper Networks, Inc.

    42,575       1,146,119  
   

 

 

 
      1,940,147  
Construction & Engineering — 0.5%            

AECOM

    9,072       694,462  

EMCOR Group, Inc.

    2,650       547,622  

Quanta Services, Inc.

    6,740       1,126,389  
   

 

 

 
      2,368,473  
Consumer Finance — 1.7%            

Ally Financial, Inc.

    35,879       867,913  

Capital One Financial Corp.

    50,417       5,106,738  

Discover Financial Services

    12,850       1,054,728  

Synchrony Financial

    55,398       1,553,914  
   

 

 

 
      8,583,293  
Consumer Staples Distribution & Retail — 1.7%  

Albertsons Cos., Inc., Class A

    53,386       1,158,476  

BJ’s Wholesale Club Holdings, Inc.(a)(b)

    8,916       607,358  

Casey’s General Stores, Inc.

    1,817       494,060  

Kroger Co. (The)

    87,278       3,959,803  

U.S. Foods Holding Corp.(b)

    11,072       431,144  

Walgreens Boots Alliance, Inc.

    94,741       1,997,140  
   

 

 

 
      8,647,981  
Containers & Packaging — 1.8%            

Amcor PLC

    194,086       1,725,424  

Avery Dennison Corp.

    6,194       1,078,190  

Ball Corp.

    23,004       1,107,643  

Crown Holdings, Inc.

    10,566       851,620  

International Paper Co.

    45,792       1,544,564  

Packaging Corp. of America

    11,894       1,820,377  

Westrock Co.

    33,950       1,219,823  
   

 

 

 
      9,347,641  
Distributors — 0.6%            

Genuine Parts Co.

    9,851       1,269,400  

LKQ Corp.

    24,660       1,083,067  

Pool Corp.

    2,064       651,749  
   

 

 

 
      3,004,216  
Diversified Consumer Services — 0.1%            

Service Corp. International

    12,132       660,223  
   

 

 

 

 

 

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

  9


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Mid-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Diversified REITs — 0.3%            

WP Carey, Inc.

    28,341     $ 1,520,495  
   

 

 

 
Electric Utilities — 6.6%            

Alliant Energy Corp.

    33,436       1,631,342  

Avangrid, Inc.

    9,321       278,418  

Edison International

    50,661       3,194,683  

Entergy Corp.

    27,949       2,671,645  

Evergy, Inc.

    30,401       1,493,905  

Eversource Energy

    46,140       2,481,871  

Exelon Corp.

    131,542       5,122,246  

FirstEnergy Corp.

    68,205       2,428,098  

NRG Energy, Inc.

    20,811       881,970  

OGE Energy Corp.

    26,406       903,085  

PG&E Corp.(b)

    276,408       4,505,450  

Pinnacle West Capital Corp.

    14,942       1,108,398  

PPL Corp.

    97,427       2,393,781  

Xcel Energy, Inc.

    72,898       4,320,665  
   

 

 

 
          33,415,557  
Electrical Equipment — 0.2%            

Regal Rexnord Corp.

    8,781       1,039,758  
   

 

 

 
Electronic Equipment, Instruments & Components — 2.2%  

Corning, Inc.

    101,468       2,715,284  

Flex Ltd.(b)

    38,636       993,718  

Jabil, Inc.

    7,254       890,791  

Keysight Technologies, Inc.(b)

    9,331       1,138,848  

TD SYNNEX Corp.

    6,360       583,085  

TE Connectivity Ltd.

    20,009       2,358,061  

Teledyne Technologies, Inc.(b)

    2,672       1,000,904  

Trimble, Inc.(b)

    17,731       835,662  

Zebra Technologies Corp., Class A(b)

    2,902       607,766  
   

 

 

 
      11,124,119  
Energy Equipment & Services — 0.7%            

Baker Hughes Co., Class A

    55,969       1,926,453  

Halliburton Co.

    42,293       1,663,807  
   

 

 

 
      3,590,260  
Entertainment — 0.9%            

Electronic Arts, Inc.

    18,219       2,255,330  

Liberty Media Corp. - Liberty Formula One, Class A(b)

    999       57,493  

Liberty Media Corp. - Liberty Formula One, Class C(b)

    8,754       566,296  

Warner Bros Discovery, Inc., Class A(b)

    173,463       1,724,222  
   

 

 

 
      4,603,341  
Financial Services — 2.6%            

Apollo Global Management, Inc.

    57,687       4,467,281  

Equitable Holdings, Inc.

    43,257       1,149,338  

Fidelity National Information Services, Inc.

    78,308       3,845,706  

FleetCor Technologies, Inc.(b)

    4,215       949,092  

Global Payments, Inc.

    22,916       2,434,137  

WEX, Inc.(a)(b)

    2,620       436,178  
   

 

 

 
      13,281,732  
Food Products — 2.4%            

Bunge Ltd.

    19,918       2,110,909  

Campbell Soup Co.

    25,942       1,048,316  

Conagra Brands, Inc.

    63,214       1,729,535  

Darling Ingredients, Inc.(b)

    7,406       328,012  

Hormel Foods Corp.

    26,203       852,908  

J M Smucker Co. (The)

    13,513       1,538,320  

Kellanova

    34,870       1,759,889  

McCormick & Co., Inc., NVS

    13,509       863,225  

Tyson Foods, Inc., Class A

    37,775       1,750,871  
   

 

 

 
      11,981,985  
Security   Shares     Value  
Gas Utilities — 0.3%            

Atmos Energy Corp.

    12,772     $ 1,375,034  
   

 

 

 
Ground Transportation — 0.4%            

Avis Budget Group, Inc.(b)

    2,625       427,350  

Knight-Swift Transportation Holdings, Inc.

    14,732       720,248  

U-Haul Holding Co.(b)

    862       42,341  

U-Haul Holding Co., NVS

    13,130       619,867  
   

 

 

 
      1,809,806  
Health Care Equipment & Supplies — 2.1%            

Baxter International, Inc.

    66,952       2,171,253  

Cooper Cos., Inc. (The)

    2,124       662,157  

DENTSPLY SIRONA, Inc.

    28,075       853,761  

GE HealthCare Technologies, Inc.

    32,130       2,138,894  

Hologic, Inc.(b)

    20,953       1,386,460  

Teleflex, Inc.

    3,229       596,558  

Zimmer Biomet Holdings, Inc.

    27,620       2,883,804  
   

 

 

 
      10,692,887  
Health Care Providers & Services — 4.1%            

Cardinal Health, Inc.

    33,652       3,062,332  

Cencora, Inc.

    22,035       4,079,780  

Centene Corp.(b)

    71,570       4,936,898  

Chemed Corp.

    758       426,489  

DaVita, Inc.(b)

    7,156       552,658  

Henry Schein, Inc.(b)

    17,297       1,123,959  

Laboratory Corp. of America Holdings

    11,711       2,339,038  

Molina Healthcare, Inc.(b)

    3,304       1,100,067  

Quest Diagnostics, Inc.

    14,843       1,931,074  

Universal Health Services, Inc., Class B

    8,229       1,035,949  
   

 

 

 
          20,588,244  
Health Care REITs — 1.2%            

Healthcare Realty Trust, Inc.

    50,586       725,909  

Healthpeak Properties, Inc.

    41,068       638,607  

Ventas, Inc.

    53,194       2,258,617  

Welltower, Inc.

    28,868       2,413,654  
   

 

 

 
      6,036,787  
Hotels, Restaurants & Leisure — 1.3%            

Aramark

    19,998       538,546  

Carnival Corp.(a)(b)

    133,314       1,527,779  

Darden Restaurants, Inc.

    7,708       1,121,745  

Domino’s Pizza, Inc.

    1,959       664,081  

Expedia Group, Inc.(a)(b)

    18,235       1,737,613  

Royal Caribbean Cruises Ltd.(b)

    11,187       947,875  
   

 

 

 
      6,537,639  
Household Durables — 3.0%            

DR Horton, Inc.

    40,243       4,201,369  

Garmin Ltd.

    20,293       2,080,641  

Lennar Corp., Class A

    33,377       3,560,659  

Lennar Corp., Class B

    1,761       173,652  

NVR, Inc.(b)

    431       2,332,839  

PulteGroup, Inc.

    29,015       2,135,214  

Whirlpool Corp.

    7,267       759,838  
   

 

 

 
      15,244,212  
Household Products — 0.3%            

Church & Dwight Co., Inc.

    11,596       1,054,540  

Clorox Co. (The)

    5,577       656,413  
   

 

 

 
      1,710,953  
Independent Power and Renewable Electricity Producers — 0.5%  

AES Corp. (The)

    88,712       1,321,809  

Vistra Corp.

    30,477       997,207  
   

 

 

 
      2,319,016  

 

 

10  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Mid-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Industrial REITs — 0.1%            

Americold Realty Trust, Inc.

    17,444     $ 457,382  
   

 

 

 
Insurance — 7.5%            

Allstate Corp. (The)

    34,573       4,429,839  

American Financial Group, Inc.

    5,926       648,067  

American International Group, Inc.

    94,094       5,768,903  

Arch Capital Group Ltd.(b)

    23,330       2,022,244  

Cincinnati Financial Corp.

    11,720       1,168,132  

Everest Group Ltd.

    5,739       2,270,463  

Fidelity National Financial, Inc., Class A

    32,113       1,255,297  

Globe Life, Inc.

    11,519       1,340,351  

Hartford Financial Services Group, Inc. (The)

    40,421       2,968,923  

Loews Corp.

    24,470       1,566,325  

Markel Group, Inc.(b)

    958       1,408,758  

Old Republic International Corp.

    35,073       960,299  

Principal Financial Group, Inc.

    29,406       1,990,198  

Prudential Financial, Inc.

    47,979       4,387,200  

Reinsurance Group of America, Inc.

    8,769       1,310,702  

RenaissanceRe Holdings Ltd.

    3,383       742,873  

Unum Group

    24,360       1,191,204  

W. R. Berkley Corp.

    14,582       983,119  

Willis Towers Watson PLC

    6,692       1,578,576  
   

 

 

 
          37,991,473  
IT Services — 1.1%            

Akamai Technologies, Inc.(b)

    13,399       1,384,519  

Cognizant Technology Solutions Corp., Class A

    66,753       4,303,566  
   

 

 

 
      5,688,085  
Leisure Products — 0.1%            

Hasbro, Inc.

    17,276       780,011  
   

 

 

 
Life Sciences Tools & Services — 1.2%            

Avantor, Inc.(b)

    61,667       1,074,856  

Illumina, Inc.(b)

    10,464       1,144,971  

IQVIA Holdings, Inc.(b)

    10,627       1,921,681  

Revvity, Inc.

    16,425       1,360,811  

Waters Corp.(b)

    2,663       635,205  
   

 

 

 
      6,137,524  
Machinery — 4.2%            

AGCO Corp.

    8,198       939,983  

Cummins, Inc.

    10,672       2,308,354  

Dover Corp.

    7,330       952,533  

Fortive Corp.

    21,285       1,389,485  

Middleby Corp. (The)(b)

    3,559       401,704  

Otis Worldwide Corp.

    25,598       1,976,422  

PACCAR, Inc.

    69,101       5,702,905  

Parker-Hannifin Corp.

    5,426       2,001,706  

Pentair PLC

    12,299       714,818  

Snap-on, Inc.

    7,000       1,805,580  

Stanley Black & Decker, Inc.

    20,277       1,724,559  

Westinghouse Air Brake Technologies Corp.

    11,065       1,173,111  
   

 

 

 
      21,091,160  
Media — 1.6%            

Fox Corp., Class A, NVS

    33,440       1,016,242  

Fox Corp., Class B

    17,536       489,430  

Interpublic Group of Cos., Inc. (The)

    50,774       1,441,982  

Liberty Media Corp. - Liberty SiriusXM, NVS(b)

    19,768       485,304  

Liberty Media Corp. - Liberty SiriusXM, Class A(b)

    10,024       245,488  

News Corp., Class A, NVS

    50,469       1,043,699  

News Corp., Class B

    15,350       329,104  

Omnicom Group, Inc.

    26,128       1,957,248  

Paramount Global, Class A(a)

    1,509       20,975  
Security   Shares     Value  
Media (continued)            

Paramount Global, Class B, NVS

    64,087     $ 697,266  

Sirius XM Holdings, Inc.(a)

    86,817       371,577  
   

 

 

 
      8,098,315  
Metals & Mining — 3.1%            

Cleveland-Cliffs, Inc.(b)

    67,387       1,130,754  

Newmont Corp.

    152,321       5,707,468  

Nucor Corp.

    32,875       4,858,596  

Reliance Steel & Aluminum Co.

    7,745       1,970,173  

Steel Dynamics, Inc.

    20,588       2,192,828  
   

 

 

 
      15,859,819  
Mortgage Real Estate Investment Trusts (REITs) — 0.2%  

Annaly Capital Management, Inc.

    65,432       1,021,394  
   

 

 

 
Multi-Utilities — 3.8%            

Ameren Corp.

    17,520       1,326,439  

CenterPoint Energy, Inc.

    50,097       1,346,607  

CMS Energy Corp.

    23,833       1,295,085  

Consolidated Edison, Inc.

    45,590       4,002,346  

DTE Energy Co.

    27,251       2,626,452  

NiSource, Inc.

    54,706       1,376,403  

Public Service Enterprise Group, Inc.

    65,970       4,067,051  

WEC Energy Group, Inc.

    41,692       3,393,312  
   

 

 

 
          19,433,695  
Office REITs — 0.4%            

Alexandria Real Estate Equities, Inc.

    11,355       1,057,491  

Boston Properties, Inc.

    19,119       1,024,205  
   

 

 

 
      2,081,696  
Oil, Gas & Consumable Fuels — 6.2%            

APA Corp.

    40,654       1,614,777  

Cheniere Energy, Inc.

    14,099       2,346,355  

Chesapeake Energy Corp.

    14,897       1,282,334  

Coterra Energy, Inc.

    44,470       1,222,925  

Devon Energy Corp.

    44,397       2,067,568  

Diamondback Energy, Inc.

    13,434       2,153,739  

EQT Corp.

    19,326       819,036  

HF Sinclair Corp.

    19,176       1,061,967  

Kinder Morgan, Inc.

    256,220       4,150,764  

Marathon Oil Corp.

    53,424       1,459,009  

ONEOK, Inc.

    76,988       5,019,618  

Ovintiv, Inc.

    20,700       993,600  

Targa Resources Corp.

    17,661       1,476,636  

Williams Cos., Inc. (The)

    160,780       5,530,832  
   

 

 

 
      31,199,160  
Passenger Airlines — 0.7%            

American Airlines Group, Inc.(a)(b)

    43,401       483,921  

Delta Air Lines, Inc.

    45,116       1,409,875  

Southwest Airlines Co.

    45,317       1,007,397  

United Airlines Holdings, Inc.(b)

    24,657       863,242  
   

 

 

 
      3,764,435  
Personal Care Products — 0.1%            

Coty, Inc., Class A(a)(b)

    29,573       277,099  
   

 

 

 
Pharmaceuticals — 0.9%            

Catalent, Inc.(b)

    16,865       579,987  

Jazz Pharmaceuticals PLC(b)

    8,321       1,056,934  

Royalty Pharma PLC, Class A

    51,146       1,374,293  

Viatris, Inc.

    158,782       1,413,160  
   

 

 

 
      4,424,374  
Professional Services — 1.5%            

Booz Allen Hamilton Holding Corp., Class A

    9,645       1,156,725  

 

 

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

  11


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Mid-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Professional Services (continued)            

Genpact Ltd.

    13,226     $ 443,600  

Jacobs Solutions, Inc.

    9,384       1,250,887  

KBR, Inc.

    6,937       403,386  

Leidos Holdings, Inc.

    18,172       1,801,209  

Robert Half, Inc.

    7,636       570,944  

SS&C Technologies Holdings, Inc.

    28,469       1,430,567  

TransUnion

    10,710       469,955  
   

 

 

 
      7,527,273  
Real Estate Management & Development — 0.4%  

CBRE Group, Inc., Class A(b)

    27,237       1,888,614  
   

 

 

 
Residential REITs — 1.2%            

American Homes 4 Rent, Class A

    17,001       556,613  

AvalonBay Communities, Inc.

    8,197       1,358,571  

Equity LifeStyle Properties, Inc.

    9,540       627,732  

Equity Residential

    21,986       1,216,485  

Essex Property Trust, Inc.

    4,830       1,033,233  

Mid-America Apartment Communities, Inc.

    6,942       820,197  

UDR, Inc.

    13,644       434,016  
   

 

 

 
      6,046,847  
Retail REITs — 2.1%            

Federal Realty Investment Trust

    4,276       389,928  

Kimco Realty Corp.

    81,764       1,466,846  

NNN REIT, Inc.

    24,253       881,111  

Realty Income Corp.

    48,149       2,281,300  

Regency Centers Corp.

    13,930       839,422  

Simon Property Group, Inc.

    43,246       4,752,303  
   

 

 

 
          10,610,910  
Semiconductors & Semiconductor Equipment — 2.2%  

Microchip Technology, Inc.

    37,267       2,656,764  

NXP Semiconductors NV

    19,372       3,340,314  

ON Semiconductor Corp.(a)(b)

    29,585       1,853,204  

Qorvo, Inc.(b)

    12,973       1,134,100  

Skyworks Solutions, Inc.

    13,525       1,173,159  

Teradyne, Inc.

    10,662       887,825  
   

 

 

 
      11,045,366  
Software — 0.2%            

Gen Digital, Inc.

    74,543       1,241,886  
   

 

 

 
Specialized REITs — 2.7%            

CubeSmart

    11,944       407,171  

Digital Realty Trust, Inc.

    22,368       2,781,684  

Extra Space Storage, Inc.

    12,410       1,285,552  

Gaming & Leisure Properties, Inc.

    23,982       1,088,543  

Iron Mountain, Inc.

    15,767       931,357  

Lamar Advertising Co., Class A

    7,995       657,749  

VICI Properties, Inc.

    133,949       3,737,177  

Weyerhaeuser Co.

    96,586       2,771,052  
   

 

 

 
      13,660,285  
Specialty Retail — 1.2%            

Advance Auto Parts, Inc.

    7,940       413,118  
Security   Shares     Value  
Specialty Retail (continued)            

Bath & Body Works, Inc.

    30,323     $ 899,077  

Best Buy Co., Inc.

    25,693       1,716,806  

CarMax, Inc.(b)

    9,668       590,618  

Dick’s Sporting Goods, Inc.

    8,265       883,942  

Penske Automotive Group, Inc.(a)

    2,595       371,293  

Williams-Sonoma, Inc.

    8,506       1,277,941  
   

 

 

 
      6,152,795  
Technology Hardware, Storage & Peripherals — 2.4%  

Dell Technologies, Inc., Class C

    33,505       2,241,820  

Hewlett Packard Enterprise Co.

    170,705       2,625,443  

HP, Inc.

    114,680       3,019,524  

NetApp, Inc.

    14,996       1,091,409  

Seagate Technology Holdings PLC

    25,441       1,736,348  

Western Digital Corp.(b)

    42,332       1,699,630  
   

 

 

 
          12,414,174  
Textiles, Apparel & Luxury Goods — 0.3%            

Tapestry, Inc.

    30,738       847,139  

VF Corp.

    43,860       646,058  
   

 

 

 
      1,493,197  
Trading Companies & Distributors — 1.1%            

Ferguson PLC

    26,995       4,054,649  

United Rentals, Inc.

    4,085       1,659,613  
   

 

 

 
      5,714,262  
Water Utilities — 0.4%            

American Water Works Co., Inc.

    12,205       1,435,918  

Essential Utilities, Inc.

    14,872       497,617  
   

 

 

 
      1,933,535  
   

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $511,785,103)

      505,163,780  
   

 

 

 
Short-Term Securities            
Money Market Funds — 2.2%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 5.54%(c)(d)(e)

    10,567,491       10,571,718  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 5.33%(c)(d)

    601,281       601,281  
   

 

 

 

Total Short-Term Securities — 2.2%
(Cost: $11,168,313)

      11,172,999  
   

 

 

 

Total Investments — 102.0%
(Cost: $522,953,416)

      516,336,779  

Liabilities in Excess of Other Assets — (2.0)%

 

    (10,000,641
   

 

 

 

Net Assets — 100.0%

    $   506,336,138  
   

 

 

 

 

(a) 

All or a portion of this security is on loan.

(b) 

Non-income producing security.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

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

 

 

12  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Mid-Cap Value ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 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
04/30/23
 
 
   
Purchases
at Cost

 
   
Proceeds
from Sale
 
 
   

Net
Realized
Gain (Loss)

 
 
   


Change in
Unrealized
Appreciation
(Depreciation)
 
 
 
 
   
Value at
10/31/23
 
 
   

Shares
Held at
10/31/23
 
 
 
    Income      



Capital
Gain
Distributions
from Underlying
Funds

 

 
 

BlackRock Cash Funds: Institutional,
SL Agency Shares

  $   11,874,694     $       $  (1,304,222 )(a)    $ 2,104     $ (858   $ 10,571,718       10,567,491     $ 53,431 (b)    $  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    872,368             (271,087 )(a)                  601,281       601,281       31,514        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 2,104     $ (858   $   11,172,999       $   84,945     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

E-Mini Utilities Select Sector Index

     10          12/15/23        $    604      $ 13,414  

S&P Mid 400 E-Mini Index

     2          12/15/23        475        (6,400
                 

 

 

 
                  $ 7,014  
                 

 

 

 

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)

   $      $      $ 13,414      $      $      $      $ 13,414  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 6,400      $      $      $      $ 6,400  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, 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).

 

 

 

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

  13


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Mid-Cap Value ETF

 

For the period ended October 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

   $      $      $   (207,316    $      $      $      $ (207,316
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $ (120    $      $      $      $ (120
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts        

Average notional value of contracts — long

   $ 1,324,965  

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

     $ 505,163,780        $        $        $ 505,163,780  

Short-Term Securities

                   

Money Market Funds

       11,172,999                            11,172,999  
    

 

 

      

 

 

      

 

 

      

 

 

 
     $     516,336,779        $        $        $     516,336,779  
    

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                   

Assets

                   

Equity Contracts

     $ 13,414        $        $        $ 13,414  

Liabilities

                   

Equity Contracts

       (6,400                          (6,400
    

 

 

      

 

 

      

 

 

      

 

 

 
     $ 7,014        $                     —        $                     —        $ 7,014  
    

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

14  

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


Schedule of Investments (unaudited) 

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 1.4%        

AAR Corp.(a)

    1,841     $ 109,282  

AeroVironment, Inc.(a)

    1,447       165,913  

AerSale Corp.(a)

    1,546       23,638  

BWX Technologies, Inc.

    5,004       371,697  

Cadre Holdings, Inc.

    984       27,601  

Curtiss-Wright Corp.

    2,094       416,308  

Ducommun, Inc.(a)

    738       35,306  

Hexcel Corp.

    4,604       285,080  

Kaman Corp.

    1,513       28,157  

Kratos Defense & Security Solutions, Inc.(a)(b)

    6,997       119,299  

Leonardo DRS, Inc.(a)(b)

    2,840       54,159  

Mercury Systems, Inc.(a)(b)

    2,797       100,636  

Moog, Inc., Class A

    1,568       181,966  

National Presto Industries, Inc.

    284       21,229  

Rocket Lab U.S.A., Inc., Class A(a)(b)

    14,169       59,935  

Spirit AeroSystems Holdings, Inc., Class A(a)

    5,713       129,114  

Triumph Group, Inc.(a)

    4,189       31,250  

V2X, Inc.(a)

    629       32,123  

Virgin Galactic Holdings, Inc., Class A(a)

    17,743       26,259  

Woodward, Inc.

    3,307       412,383  
   

 

 

 
                2,631,335  
Air Freight & Logistics — 0.3%            

Air Transport Services Group, Inc.(a)(b)

    3,054       59,767  

Forward Air Corp.

    1,399       90,110  

GXO Logistics, Inc.(a)

    6,515       329,073  

Hub Group, Inc., Class A(a)

    1,710       117,562  
   

 

 

 
          596,512  
Automobile Components — 1.4%            

Adient PLC(a)

    5,104       171,954  

American Axle & Manufacturing Holdings, Inc.(a)

    6,392       43,146  

Autoliv, Inc.

    4,150       380,347  

Dana, Inc.

    7,023       80,624  

Dorman Products, Inc.(a)

    1,539       95,695  

Fox Factory Holding Corp.(a)

    2,304       187,707  

Garrett Motion, Inc.(a)(b)

    8,156       57,581  

Gentex Corp.

    12,763       366,043  

Gentherm, Inc.(a)

    1,794       72,155  

Goodyear Tire & Rubber Co. (The)(a)

    15,591       185,533  

LCI Industries

    1,397       151,560  

Luminar Technologies, Inc., Class A(a)(b)

    14,192       44,989  

Mobileye Global, Inc., Class A(a)(b)

    4,206       150,028  

Modine Manufacturing Co.(a)

    2,846       112,417  

Patrick Industries, Inc.

    1,146       86,122  

QuantumScape Corp., Class A(a)(b)

    18,523       96,690  

Solid Power, Inc., Class A(a)(b)

    6,407       8,457  

Standard Motor Products, Inc.

    1,040       36,327  

Stoneridge, Inc.(a)

    1,459       23,738  

Visteon Corp.(a)

    1,544       177,761  

XPEL, Inc.(a)(b)

    1,153       53,384  
   

 

 

 
          2,582,258  
Automobiles — 0.3%            

Fisker, Inc., Class A(a)(b)

    10,445       47,003  

Harley-Davidson, Inc.

    7,084       190,205  

Thor Industries, Inc.

    2,922       256,931  

Winnebago Industries, Inc.

    1,640       95,038  
   

 

 

 
          589,177  
Banks — 7.2%            

1st Source Corp.

    979       44,662  

Amalgamated Financial Corp.

    1,059       19,316  
Security   Shares     Value  
Banks (continued)            

Amerant Bancorp, Inc., Class A

    1,467     $ 26,743  

Ameris Bancorp

    3,569                133,124  

Associated Banc-Corp.

    8,398       136,132  

Atlantic Union Bankshares Corp.

    4,165       119,994  

Axos Financial, Inc.(a)(b)

    2,870       103,406  

Banc of California, Inc.

    2,963       33,215  

BancFirst Corp.

    794       64,401  

Bancorp, Inc. (The)(a)

    2,922       104,169  

Bank First Corp.

    458       36,168  

Bank of Hawaii Corp.

    2,203       108,806  

Bank OZK

    5,766       206,480  

BankUnited, Inc.

    4,134       90,163  

Banner Corp.

    1,687       71,208  

Berkshire Hills Bancorp, Inc.

    2,458       48,201  

BOK Financial Corp.

    1,538       100,770  

Brookline Bancorp, Inc.

    4,949       40,285  

Byline Bancorp, Inc.

    1,606       30,466  

Cadence Bank

    9,893       209,534  

Cambridge Bancorp

    409       21,967  

Camden National Corp.

    820       23,911  

Capital City Bank Group, Inc.

    748       21,370  

Capitol Federal Financial, Inc.

    7,026       36,535  

Cathay General Bancorp

    4,085       138,522  

Central Pacific Financial Corp.

    531       8,379  

City Holding Co.

    825       74,893  

CNB Financial Corp.

    1,209       21,980  

Coastal Financial Corp.(a)

    615       22,860  

Columbia Banking System, Inc.

    11,453       225,281  

Columbia Financial, Inc.(a)

    1,569       25,261  

Comerica, Inc.

    7,200       283,680  

Commerce Bancshares, Inc.

    6,203       272,064  

Community Bank System, Inc.

    2,966       118,492  

Community Trust Bancorp, Inc.

    914       34,330  

ConnectOne Bancorp, Inc.

    2,019       32,890  

CrossFirst Bankshares, Inc.(a)

    2,455       25,974  

Cullen/Frost Bankers, Inc.

    3,506       319,011  

Customers Bancorp, Inc.(a)

    1,539       61,883  

CVB Financial Corp.

    7,335       114,573  

Dime Community Bancshares, Inc.

    1,914       35,198  

Eagle Bancorp, Inc.

    1,686       32,843  

Eastern Bankshares, Inc.

    8,648       95,214  

Enterprise Financial Services Corp.

    2,082       72,391  

Farmers National Banc Corp.

    1,950       22,016  

FB Financial Corp.

    1,956       57,448  

First Bancorp

    2,303       66,833  

First Bancorp

    9,588       128,000  

First Bancshares, Inc. (The)

    1,601       38,776  

First Busey Corp.

    2,922       58,031  

First Commonwealth Financial Corp.

    5,575       67,904  

First Financial Bancorp

    5,314       98,309  

First Financial Bankshares, Inc.

    7,016       168,735  

First Financial Corp.

    656       22,573  

First Hawaiian, Inc.

    7,139       128,002  

First Interstate BancSystem, Inc., Class A

    4,574       105,522  

First Merchants Corp.

    3,110       84,934  

First Mid Bancshares, Inc.

    1,091       29,806  

FNB Corp.

    19,939       213,148  

Fulton Financial Corp.

    9,187       119,339  

German American Bancorp, Inc.

    1,712       46,789  

Glacier Bancorp, Inc.

    6,054       182,770  

Great Southern Bancorp, Inc.

    517       25,705  

Hancock Whitney Corp.

    4,719       162,475  

 

 

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

  15


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Banks (continued)            

Hanmi Financial Corp.

    1,167     $ 17,132  

HarborOne Bancorp, Inc.

    2,328       22,908  

HBT Financial, Inc.

    819       14,742  

Heartland Financial U.S.A., Inc.

    2,196       60,170  

Heritage Commerce Corp.

    3,624       29,644  

Heritage Financial Corp.

    2,095       34,086  

Hilltop Holdings, Inc.

    2,541       70,182  

Hingham Institution For Savings (The)(b)

    97       14,412  

Home BancShares, Inc.

    10,110       206,749  

Hope Bancorp, Inc.

    5,856       51,299  

Horizon Bancorp, Inc.

    2,249       21,343  

Independent Bank Corp.

    2,452                119,658  

Independent Bank Group, Inc.

    1,977       69,887  

International Bancshares Corp.

    2,956       129,561  

Kearny Financial Corp.

    3,733       25,907  

Lakeland Bancorp, Inc.

    3,685       41,567  

Lakeland Financial Corp.

    1,400       68,950  

Live Oak Bancshares, Inc.(b)

    1,795       51,786  

Luther Burbank Corp.

    842       6,854  

Mercantile Bank Corp.

    850       27,999  

Metrocity Bankshares, Inc.

    1,021       20,461  

Midland States Bancorp, Inc.

    1,333       29,086  

National Bank Holdings Corp., Class A

    2,128       66,351  

NBT Bancorp, Inc.

    2,022       67,676  

New York Community Bancorp, Inc., Class A

    39,358       373,114  

Nicolet Bankshares, Inc.

    702       51,120  

Northfield Bancorp, Inc.

    2,337       20,098  

Northwest Bancshares, Inc.

    6,509       67,824  

OceanFirst Financial Corp.

    3,402       43,069  

OFG Bancorp

    2,355       69,755  

Old National Bancorp

    16,032       219,638  

Old Second Bancorp, Inc.

    2,261       30,659  

Origin Bancorp, Inc.

    1,612       47,699  

Pacific Premier Bancorp, Inc.

    5,451       103,569  

PacWest Bancorp(b)

    6,474       45,836  

Park National Corp.

    806       81,720  

Pathward Financial, Inc.

    1,455       65,897  

Peapack-Gladstone Financial Corp.

    953       22,272  

Peoples Bancorp, Inc.

    1,884       51,961  

Pinnacle Financial Partners, Inc.

    4,191       261,351  

Popular, Inc.

    3,953       257,103  

Premier Financial Corp.

    2,053       35,620  

Prosperity Bancshares, Inc.

    5,138       280,227  

Provident Financial Services, Inc.

    4,334       60,893  

QCR Holdings, Inc.

    927       43,986  

Renasant Corp.

    3,092       75,414  

Republic Bancorp, Inc., Class A

    524       23,156  

S&T Bancorp, Inc.

    2,069       53,297  

Sandy Spring Bancorp, Inc.

    2,534       51,820  

Seacoast Banking Corp. of Florida

    4,707       95,128  

ServisFirst Bancshares, Inc.

    2,658       125,351  

Simmons First National Corp., Class A

    6,638       94,326  

Southern Missouri Bancorp, Inc.

    544       22,005  

Southside Bancshares, Inc.

    1,615       43,121  

SouthState Corp.

    4,150       274,315  

Stellar Bancorp, Inc.

    2,511       54,589  

Stock Yards Bancorp, Inc.

    1,487       58,157  

Synovus Financial Corp.

    7,954       207,361  

Texas Capital Bancshares, Inc.(a)

    2,622       144,367  

Tompkins Financial Corp.

    712       35,657  

Towne Bank

    3,912       93,653  

TriCo Bancshares

    1,875       60,656  
Security   Shares     Value  
Banks (continued)            

Triumph Financial, Inc.(a)

    1,186     $ 73,829  

TrustCo Bank Corp.

    859       21,930  

Trustmark Corp.

    3,427       68,917  

UMB Financial Corp.

    2,371       148,709  

United Bankshares, Inc.

    7,391       210,200  

United Community Banks, Inc.

    6,422       141,862  

Univest Financial Corp.

    1,730       28,822  

Valley National Bancorp

    23,217       180,628  

Veritex Holdings, Inc.

    3,026       52,108  

WaFd, Inc.

    3,634       89,687  

Washington Trust Bancorp, Inc.

    970       22,494  

Webster Financial Corp.

    9,477                359,842  

WesBanco, Inc.

    3,314       80,828  

Westamerica BanCorp

    1,473       69,585  

Western Alliance Bancorp

    5,964       245,120  

Wintrust Financial Corp.

    3,298       246,328  

WSFS Financial Corp.

    3,344       118,378  

Zions Bancorp N.A.

    8,084       249,391  
   

 

 

 
          13,096,712  
Beverages — 0.5%            

Boston Beer Co., Inc. (The), Class A, NVS(a)

    518       172,986  

Celsius Holdings, Inc.(a)(b)

    2,685       408,362  

Coca-Cola Consolidated, Inc.

    255       162,285  

Duckhorn Portfolio, Inc. (The)(a)

    2,284       23,822  

MGP Ingredients, Inc.

    842       79,704  

National Beverage Corp.(a)

    1,259       58,392  

Vita Coco Co., Inc. (The)(a)(b)

    1,662       45,040  
   

 

 

 
          950,591  
Biotechnology — 4.5%            

4D Molecular Therapeutics, Inc.(a)

    1,633       17,538  

89bio, Inc.(a)

    3,457       25,582  

ACADIA Pharmaceuticals, Inc.(a)

    6,511       146,953  

ADMA Biologics, Inc.(a)

    11,272       38,099  

Aerovate Therapeutics, Inc.(a)

    735       7,798  

Agenus, Inc.(a)

    18,610       14,888  

Agios Pharmaceuticals, Inc.(a)(b)

    3,049       64,059  

Akero Therapeutics, Inc.(a)(b)

    3,029       36,106  

Aldeyra Therapeutics, Inc.(a)

    2,612       4,467  

Alector, Inc.(a)

    3,442       17,898  

Alkermes PLC(a)

    9,083       219,718  

Allogene Therapeutics, Inc.(a)(b)

    6,217       17,532  

Amicus Therapeutics, Inc.(a)

    13,973       153,284  

AnaptysBio, Inc.(a)

    1,014       16,538  

Anavex Life Sciences Corp.(a)(b)

    4,336       24,195  

Arbutus Biopharma Corp.(a)

    6,506       11,906  

Arcellx, Inc.(a)(b)

    1,726       60,841  

Arcturus Therapeutics Holdings, Inc.(a)

    1,323       25,269  

Arcus Biosciences, Inc.(a)

    2,973       46,706  

Arcutis Biotherapeutics, Inc.(a)

    2,780       6,255  

Ardelyx, Inc.(a)(b)

    11,746       46,397  

Arrowhead Pharmaceuticals, Inc.(a)

    5,840       143,606  

ARS Pharmaceuticals, Inc.(a)(b)

    2,758       9,846  

Aurinia Pharmaceuticals, Inc.(a)(b)

    7,819       57,391  

Avid Bioservices, Inc.(a)(b)

    3,409       20,965  

Avidity Biosciences, Inc.(a)(b)

    3,477       17,907  

Beam Therapeutics, Inc.(a)

    3,783       79,973  

BioCryst Pharmaceuticals, Inc.(a)

    10,310       56,602  

Biohaven Ltd.(a)

    3,497       92,705  

Biomea Fusion, Inc.(a)(b)

    1,394       14,247  

Bioxcel Therapeutics, Inc.(a)(b)

    1,103       4,429  

Bluebird Bio, Inc.(a)(b)

    5,801       17,113  

Blueprint Medicines Corp.(a)(b)

    3,333       196,180  

 

 

16  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Biotechnology (continued)            

Bridgebio Pharma, Inc.(a)

    6,549     $ 170,536  

CareDx, Inc.(a)

    3,019       16,333  

Catalyst Pharmaceuticals, Inc.(a)

    5,488       68,106  

Celldex Therapeutics, Inc.(a)(b)

    2,581       60,705  

Cerevel Therapeutics Holdings, Inc.(a)(b)

    4,226       99,945  

Cogent Biosciences, Inc.(a)

    4,059       33,121  

Coherus Biosciences, Inc.(a)(b)

    4,956       16,603  

Crinetics Pharmaceuticals, Inc.(a)

    3,130       91,678  

CRISPR Therapeutics AG(a)(b)

    4,349       169,307  

Cytokinetics, Inc.(a)

    5,223       182,074  

Day One Biopharmaceuticals, Inc.(a)

    3,036       35,916  

Deciphera Pharmaceuticals, Inc.(a)

    3,054       36,617  

Denali Therapeutics, Inc.(a)

    6,734                126,801  

Disc Medicine, Inc.(a)

    640       29,318  

Dynavax Technologies Corp.(a)(b)

    7,004       99,527  

Dyne Therapeutics, Inc.(a)(b)

    2,094       14,763  

Editas Medicine, Inc.(a)

    4,460       29,793  

Emergent BioSolutions, Inc.(a)

    3,060       6,395  

Enanta Pharmaceuticals, Inc.(a)

    1,076       9,706  

EQRx, Inc.(a)

    15,148       33,023  

Erasca, Inc.(a)

    4,416       10,201  

Exelixis, Inc.(a)

    17,430       358,884  

Fate Therapeutics, Inc.(a)

    4,429       8,016  

FibroGen, Inc.(a)

    4,979       2,694  

Genelux Corp.(a)

    1,043       15,134  

Geron Corp.(a)

    25,046       47,587  

Halozyme Therapeutics, Inc.(a)

    7,224       244,677  

HilleVax, Inc.(a)

    915       10,065  

Ideaya Biosciences, Inc.(a)

    3,137       85,232  

ImmunityBio, Inc.(a)(b)

    7,594       23,845  

ImmunoGen, Inc.(a)

    12,338       183,343  

Immunovant, Inc.(a)

    2,639       87,219  

Inhibrx, Inc.(a)

    1,340       20,730  

Insmed, Inc.(a)(b)

    7,829       196,195  

Intellia Therapeutics, Inc.(a)(b)

    4,799       120,215  

Intercept Pharmaceuticals, Inc.(a)

    2,001       37,879  

Ionis Pharmaceuticals, Inc.(a)(b)

    7,808       345,660  

Iovance Biotherapeutics, Inc.(a)

    11,698       44,686  

Ironwood Pharmaceuticals, Inc., Class A(a)

    7,597       68,145  

iTeos Therapeutics, Inc.(a)

    1,407       14,154  

Janux Therapeutics, Inc.(a)

    981       6,298  

Karyopharm Therapeutics, Inc.(a)(b)

    6,116       5,321  

Keros Therapeutics, Inc.(a)

    1,246       35,561  

Krystal Biotech, Inc.(a)

    1,305       152,515  

Kura Oncology, Inc.(a)(b)

    4,028       34,037  

Kymera Therapeutics, Inc.(a)(b)

    2,151       25,102  

Lexicon Pharmaceuticals, Inc.(a)(b)

    6,675       8,277  

Lyell Immunopharma, Inc.(a)(b)

    8,428       13,948  

MacroGenics, Inc.(a)

    3,361       17,544  

Madrigal Pharmaceuticals, Inc.(a)(b)

    838       110,096  

MannKind Corp.(a)(b)

    14,972       64,230  

Mersana Therapeutics, Inc.(a)

    5,614       6,681  

MiMedx Group, Inc.(a)

    6,341       41,597  

Mineralys Therapeutics, Inc.(a)

    691       5,341  

Mirati Therapeutics, Inc.(a)(b)

    3,434       190,690  

Mirum Pharmaceuticals, Inc.(a)

    1,677       46,000  

Morphic Holding, Inc.(a)

    2,140       42,693  

Myriad Genetics, Inc.(a)

    4,445       69,253  

Natera, Inc.(a)

    5,864       231,452  

Novavax, Inc.(a)(b)

    5,152       34,312  

Nurix Therapeutics, Inc.(a)

    2,328       13,014  

Nuvalent, Inc., Class A(a)(b)

    1,436       74,801  
Security   Shares     Value  
Biotechnology (continued)            

Point Biopharma Global, Inc.(a)(b)

    4,862     $ 61,553  

Prime Medicine, Inc.(a)(b)

    1,994       12,941  

ProKidney Corp., Class A(a)

    1,594       2,598  

Protagonist Therapeutics, Inc.(a)

    3,137       45,612  

Prothena Corp. PLC(a)

    2,128       77,587  

PTC Therapeutics, Inc.(a)

    4,109       77,044  

RAPT Therapeutics, Inc.(a)(b)

    1,590       20,909  

Recursion Pharmaceuticals, Inc., Class A(a)(b)

    8,445       44,590  

REGENXBIO, Inc.(a)

    2,249       28,990  

Relay Therapeutics, Inc.(a)

    4,901       32,347  

Replimune Group, Inc.(a)

    2,828       41,204  

REVOLUTION Medicines, Inc.(a)(b)

    5,353       105,989  

Rhythm Pharmaceuticals, Inc.(a)(b)

    2,634       60,872  

Rocket Pharmaceuticals, Inc.(a)

    3,728       67,477  

Roivant Sciences Ltd.(a)

    17,570                151,805  

Sage Therapeutics, Inc.(a)(b)

    2,847       53,324  

Sana Biotechnology, Inc.(a)(b)

    5,265       15,584  

Seres Therapeutics, Inc.(a)

    5,241       8,019  

SpringWorks Therapeutics, Inc.(a)(b)

    2,897       66,341  

Syndax Pharmaceuticals, Inc.(a)(b)

    3,572       50,294  

TG Therapeutics, Inc.(a)

    7,758       59,969  

Travere Therapeutics, Inc.(a)

    3,720       24,106  

Twist Bioscience Corp.(a)(b)

    3,110       49,014  

Ultragenyx Pharmaceutical, Inc.(a)(b)

    3,911       138,449  

uniQure NV(a)

    2,556       14,569  

Vaxcyte, Inc.(a)(b)

    4,690       225,589  

Veracyte, Inc.(a)

    3,960       82,051  

Vericel Corp.(a)(b)

    2,614       91,961  

Verve Therapeutics, Inc.(a)(b)

    2,530       30,461  

Viking Therapeutics, Inc.(a)(b)

    5,452       53,484  

Vir Biotechnology, Inc.(a)

    4,670       37,033  

Viridian Therapeutics, Inc.(a)

    2,163       27,038  

Xencor, Inc.(a)(b)

    3,313       57,481  

Zentalis Pharmaceuticals, Inc.(a)(b)

    3,140       51,370  

Zymeworks, Inc.(a)

    3,669       25,756  
   

 

 

 
          8,189,995  
Broadline Retail — 0.4%            

Dillard’s, Inc., Class A(b)

    192       59,607  

Kohl’s Corp.

    6,036       136,112  

Macy’s, Inc.

    15,046       183,260  

Nordstrom, Inc.

    5,281       73,828  

Ollie’s Bargain Outlet Holdings, Inc.(a)(b)

    3,391       261,921  
   

 

 

 
          714,728  
Building Products — 1.8%            

AAON, Inc.(b)

    3,680       200,486  

Advanced Drainage Systems, Inc.

    3,784       404,245  

American Woodmark Corp.(a)

    881       59,230  

Apogee Enterprises, Inc.

    1,200       51,504  

Armstrong World Industries, Inc.

    2,428       184,261  

AZEK Co., Inc. (The), Class A(a)(b)

    8,124       212,849  

AZZ, Inc.

    1,369       64,713  

Gibraltar Industries, Inc.(a)

    1,670       101,636  

Griffon Corp.

    2,229       89,026  

Hayward Holdings, Inc.(a)

    6,847       71,893  

Insteel Industries, Inc.

    1,048       29,250  

Janus International Group, Inc.(a)

    4,900       45,864  

JELD-WEN Holding, Inc.(a)

    4,673       52,945  

Masonite International Corp.(a)

    1,197       94,731  

Masterbrand, Inc.(a)

    6,950       77,214  

PGT Innovations, Inc.(a)

    3,220       96,407  

Quanex Building Products Corp.

    1,818       48,813  

Resideo Technologies, Inc.(a)

    8,066       116,796  

 

 

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

  17


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Building Products (continued)            

Simpson Manufacturing Co., Inc.

    2,321     $ 309,111  

Tecnoglass, Inc.

    1,103       36,046  

Trex Co., Inc.(a)

    5,935       333,606  

UFP Industries, Inc.

    3,369       320,628  

Zurn Elkay Water Solutions Corp.

    7,722       204,324  
   

 

 

 
          3,205,578  
Capital Markets — 2.5%            

Affiliated Managers Group, Inc.

    1,909       234,349  

Artisan Partners Asset Management, Inc., Class A

    3,812       125,796  

AssetMark Financial Holdings, Inc.(a)

    1,242       29,696  

Avantax, Inc.(a)

    2,009       51,852  

B Riley Financial, Inc.

    907       32,843  

BGC Group, Inc., Class A

    21,272       124,867  

Blue Owl Capital, Inc., Class A

    22,061                272,012  

Brightsphere Investment Group, Inc.

    1,825       28,580  

Cohen & Steers, Inc.

    1,382       72,196  

Diamond Hill Investment Group, Inc., Class A

    170       26,707  

Donnelley Financial Solutions, Inc.(a)

    1,388       75,549  

Evercore, Inc., Class A

    1,911       248,774  

Federated Hermes, Inc., Class B

    4,826       152,984  

Freedom Holding Corp.(a)(b)

    914       74,985  

Hamilton Lane, Inc., Class A

    1,994       167,735  

Houlihan Lokey, Inc., Class A

    2,808       282,260  

Janus Henderson Group PLC

    7,276       167,857  

Jefferies Financial Group, Inc.

    9,710       312,468  

Moelis & Co., Class A

    3,695       153,860  

Open Lending Corp.(a)

    5,458       32,693  

Oppenheimer Holdings, Inc., Class A, NVS

    384       13,467  

P10, Inc., Class A

    2,182       20,554  

Piper Sandler Cos

    828       115,796  

PJT Partners, Inc., Class A

    1,222       95,756  

Robinhood Markets, Inc., Class A(a)(b)

    30,128       275,370  

Runway Growth Finance Corp.

    979       11,924  

StepStone Group, Inc., Class A

    2,799       79,212  

Stifel Financial Corp.

    5,699       324,843  

StoneX Group, Inc.(a)

    973       92,746  

TPG, Inc., Class A

    3,338       92,262  

Tradeweb Markets, Inc., Class A

    6,244       562,023  

Victory Capital Holdings, Inc., Class A

    2,030       59,804  

Virtu Financial, Inc., Class A

    5,135       94,946  

Virtus Investment Partners, Inc.

    375       69,086  

WisdomTree, Inc.

    6,426       39,841  
   

 

 

 
          4,615,693  
Chemicals — 2.0%            

AdvanSix, Inc.

    1,467       40,416  

American Vanguard Corp.

    1,512       14,152  

Ashland, Inc.

    2,786       213,491  

Aspen Aerogels, Inc.(a)

    2,868       22,141  

Avient Corp.

    4,959       156,804  

Axalta Coating Systems Ltd.(a)

    12,105       317,514  

Balchem Corp.

    1,751       203,536  

Cabot Corp.

    3,074       204,360  

Chase Corp.

    406       51,586  

Chemours Co. (The)

    8,066       194,471  

Ecovyst, Inc.(a)

    5,572       51,262  

Element Solutions, Inc.

    12,100       220,583  

Ginkgo Bioworks Holdings, Inc., Class A(a)(b)

    72,354       99,125  

Hawkins, Inc.

    1,038       59,612  

HB Fuller Co.

    2,954       195,407  

Huntsman Corp.

    9,034       210,763  

Ingevity Corp.(a)(b)

    1,826       73,551  

Innospec, Inc.

    1,355       132,790  
Security   Shares     Value  
Chemicals (continued)            

Koppers Holdings, Inc.

    1,131     $ 41,361  

Kronos Worldwide, Inc.

    1,328       9,163  

Livent Corp.(a)(b)

    9,771       142,559  

LSB Industries, Inc.(a)

    2,903       26,446  

Mativ Holdings, Inc.

    2,998       39,274  

Minerals Technologies, Inc.

    1,793       96,930  

NewMarket Corp.

    378       182,253  

Origin Materials, Inc., Class A(a)(b)

    6,682       6,605  

Perimeter Solutions SA(a)

    8,118       25,978  

PureCycle Technologies, Inc.(a)(b)

    7,511       33,424  

Quaker Chemical Corp.

    759       109,084  

Scotts Miracle-Gro Co. (The)

    2,274       101,057  

Sensient Technologies Corp.

    2,298                129,653  

Stepan Co.

    1,161       86,843  

Trinseo PLC

    2,116       13,098  

Tronox Holdings PLC

    6,432       68,758  
   

 

 

 
          3,574,050  
Commercial Services & Supplies — 1.6%            

ABM Industries, Inc.

    3,634       142,962  

ACCO Brands Corp.

    5,193       26,277  

ACV Auctions, Inc., Class A(a)

    7,365       98,175  

Brady Corp., Class A, NVS

    2,507       129,010  

BrightView Holdings, Inc.(a)

    2,210       14,895  

Brink’s Co. (The)

    2,551       170,560  

Casella Waste Systems, Inc., Class A(a)

    3,114       234,951  

CECO Environmental Corp.(a)

    1,594       25,791  

Cimpress PLC(a)

    961       57,343  

Clean Harbors, Inc.(a)

    2,758       423,822  

CoreCivic, Inc.(a)

    6,276       79,705  

Deluxe Corp.

    2,369       40,391  

Driven Brands Holdings, Inc.(a)

    3,361       38,248  

Ennis, Inc.

    1,466       31,314  

Enviri Corp.(a)

    4,341       24,917  

GEO Group, Inc. (The)(a)

    6,886       60,184  

Healthcare Services Group, Inc.

    4,096       38,912  

HNI Corp.

    2,546       88,321  

Interface, Inc., Class A

    3,177       28,243  

LanzaTech Global, Inc.(a)(b)

    4,348       15,305  

Liquidity Services, Inc.(a)

    1,281       24,685  

Matthews International Corp., Class A

    1,686       59,752  

MillerKnoll, Inc.

    4,165       97,877  

Montrose Environmental Group, Inc.(a)

    1,513       34,981  

MSA Safety, Inc.

    2,015       318,128  

OPENLANE, Inc.(a)

    5,985       80,378  

SP Plus Corp.(a)

    1,039       52,501  

Steelcase, Inc., Class A

    5,156       56,252  

Stericycle, Inc.(a)

    5,036       207,685  

UniFirst Corp.

    823       135,326  

Viad Corp.(a)

    1,120       27,138  

VSE Corp.

    714       38,413  
   

 

 

 
          2,902,442  
Communications Equipment — 0.7%            

ADTRAN Holdings, Inc.

    3,881       25,498  

Calix, Inc.(a)

    3,237       107,209  

Cambium Networks Corp.(a)

    672       3,347  

Ciena Corp.(a)

    8,163       344,479  

Clearfield, Inc.(a)(b)

    686       16,478  

CommScope Holding Co., Inc.(a)

    11,436       16,925  

Digi International, Inc.(a)(b)

    1,971       49,630  

Extreme Networks, Inc.(a)

    7,031       144,979  

Harmonic, Inc.(a)(b)

    6,093       65,743  

Infinera Corp.(a)(b)

    10,711       31,383  

 

 

18  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Communications Equipment (continued)            

Lumentum Holdings, Inc.(a)

    3,742     $ 146,724  

NETGEAR, Inc.(a)

    1,611       20,363  

NetScout Systems, Inc.(a)

    3,966       86,578  

Ribbon Communications, Inc.(a)(b)

    5,067       9,526  

Viasat, Inc.(a)(b)

    4,048       74,645  

Viavi Solutions, Inc.(a)

    12,111       94,224  
   

 

 

 
          1,237,731  
Construction & Engineering — 1.4%            

Ameresco, Inc., Class A(a)(b)

    1,747       45,684  

API Group Corp.(a)(b)

    11,268       291,503  

Arcosa, Inc.

    2,649       182,966  

Argan, Inc.

    696       31,835  

Bowman Consulting Group Ltd.(a)

    573       15,225  

Comfort Systems U.S.A., Inc.

    1,949       354,426  

Construction Partners, Inc., Class A(a)

    2,380       91,511  

Dycom Industries, Inc.(a)

    1,597       136,033  

Fluor Corp.(a)

    7,862                261,726  

Granite Construction, Inc.

    2,424       98,124  

IES Holdings, Inc.(a)

    453       28,190  

MasTec, Inc.(a)

    3,299       196,093  

MDU Resources Group, Inc.

    11,107       206,701  

MYR Group, Inc.(a)

    916       106,100  

Primoris Services Corp.

    2,935       88,226  

Sterling Infrastructure, Inc.(a)

    1,697       123,626  

Valmont Industries, Inc.

    1,144       225,265  
   

 

 

 
          2,483,234  
Construction Materials — 0.3%            

Eagle Materials, Inc.

    1,924       296,123  

Summit Materials, Inc., Class A(a)(b)

    6,462       212,600  

United States Lime & Minerals, Inc.

    109       21,581  
   

 

 

 
          530,304  
Consumer Finance — 1.0%            

Atlanticus Holdings Corp.(a)

    273       7,988  

Bread Financial Holdings, Inc.

    2,796       75,576  

Credit Acceptance Corp.(a)(b)

    349       140,448  

Encore Capital Group, Inc.(a)

    1,299       48,946  

Enova International, Inc.(a)

    1,683       67,118  

EZCORP, Inc., Class A, NVS(a)

    3,004       24,633  

FirstCash Holdings, Inc.

    2,017       219,692  

Green Dot Corp., Class A(a)

    2,488       27,816  

LendingClub Corp.(a)

    5,894       30,590  

Navient Corp.

    4,835       76,925  

Nelnet, Inc., Class A

    967       82,011  

NerdWallet, Inc., Class A(a)

    2,221       23,942  

OneMain Holdings, Inc.

    6,589       236,743  

PRA Group, Inc.(a)

    2,143       26,380  

PROG Holdings, Inc.(a)

    2,491       68,228  

SLM Corp.

    12,352       160,576  

SoFi Technologies, Inc.(a)(b)

    51,721       390,494  

Upstart Holdings, Inc.(a)(b)

    3,975       95,519  

World Acceptance Corp.(a)

    180       17,752  
   

 

 

 
          1,821,377  
Consumer Staples Distribution & Retail — 0.4%  

Andersons, Inc. (The)

    1,719       86,174  

Chefs’ Warehouse, Inc. (The)(a)(b)

    1,926       36,652  

Grocery Outlet Holding Corp.(a)

    5,375       148,726  

Ingles Markets, Inc., Class A

    811       65,059  

PriceSmart, Inc.

    1,406       87,861  

SpartanNash Co.

    1,982       44,575  

Sprouts Farmers Market, Inc.(a)(b)

    5,563       233,757  
Security   Shares     Value  
Consumer Staples Distribution & Retail (continued)            

United Natural Foods, Inc.(a)

    3,152     $ 45,956  

Weis Markets, Inc.

    903       58,785  
   

 

 

 
          807,545  
Containers & Packaging — 1.2%            

AptarGroup, Inc.

    3,574       436,993  

Berry Global Group, Inc.

    6,454       354,970  

Graphic Packaging Holding Co.

    16,717       359,583  

Greif, Inc., Class A, NVS

    1,379       87,567  

Greif, Inc., Class B

    287       18,385  

Myers Industries, Inc.

    2,013       33,758  

O-I Glass, Inc.(a)

    8,436       130,336  

Pactiv Evergreen, Inc.

    2,283       19,679  

Sealed Air Corp.

    7,914                243,672  

Silgan Holdings, Inc.

    4,539       181,832  

Sonoco Products Co.

    5,348       277,080  

TriMas Corp.

    2,270       54,957  
   

 

 

 
          2,198,812  
Diversified Consumer Services — 1.2%            

2U, Inc.(a)

    4,510       9,561  

ADT, Inc.

    12,254       69,358  

Adtalem Global Education, Inc.(a)

    2,266       117,379  

Bright Horizons Family Solutions, Inc.(a)(b)

    3,146       232,993  

Carriage Services, Inc.

    719       15,530  

Chegg, Inc.(a)

    6,287       47,341  

Coursera, Inc.(a)

    5,640       97,797  

Duolingo, Inc., Class A(a)

    1,938       283,045  

European Wax Center, Inc., Class A(a)

    1,906       28,152  

Frontdoor, Inc.(a)

    4,360       126,135  

Graham Holdings Co., Class B

    203       117,480  

Grand Canyon Education, Inc.(a)

    1,618       191,458  

H&R Block, Inc.

    8,292       340,386  

Laureate Education, Inc., Class A

    7,432       105,088  

Mister Car Wash, Inc.(a)

    4,893       25,444  

OneSpaWorld Holdings Ltd.(a)

    4,754       49,822  

Perdoceo Education Corp.

    3,578       64,726  

Rover Group, Inc., Class A(a)

    6,184       39,887  

Strategic Education, Inc.

    1,202       98,937  

Stride, Inc.(a)

    2,205       121,231  

Udemy, Inc.(a)

    4,682       41,810  

WW International, Inc.(a)(b)

    4,299       33,618  
   

 

 

 
          2,257,178  
Diversified REITs — 0.4%            

Alexander & Baldwin, Inc.

    4,026       63,611  

American Assets Trust, Inc.

    2,658       47,179  

Armada Hoffler Properties, Inc.

    3,722       37,071  

Broadstone Net Lease, Inc.

    10,173       143,948  

Empire State Realty Trust, Inc., Class A

    7,096       57,406  

Essential Properties Realty Trust, Inc.

    8,638       189,604  

Gladstone Commercial Corp.

    2,127       25,418  

Global Net Lease, Inc.

    10,622       84,339  

One Liberty Properties, Inc.

    915       16,836  
   

 

 

 
          665,412  
Diversified Telecommunication Services — 0.5%  

Anterix, Inc.(a)

    1,023       31,191  

ATN International, Inc.

    567       17,549  

Cogent Communications Holdings, Inc.

    2,368       153,873  

Consolidated Communications Holdings, Inc.(a)

    4,110       17,139  

EchoStar Corp., Class A(a)

    1,835       25,433  

Frontier Communications Parent, Inc.(a)

    12,039       215,739  

Globalstar, Inc.(a)(b)

    38,713       54,585  

IDT Corp., Class B(a)

    1,122       31,472  

 

 

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

  19


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Diversified Telecommunication Services (continued)  

Iridium Communications, Inc.

    6,849     $ 253,755  

Liberty Latin America Ltd., Class A(a)

    1,889       12,902  

Liberty Latin America Ltd., Class C, NVS(a)

    7,167       49,094  

Lumen Technologies, Inc.(a)

    54,968       80,253  
   

 

 

 
          942,985  
Electric Utilities — 0.7%            

ALLETE, Inc.

    3,136       167,901  

Hawaiian Electric Industries, Inc.

    6,058       78,633  

IDACORP, Inc.

    2,771       262,441  

MGE Energy, Inc.

    1,962       140,538  

Otter Tail Corp.

    2,291       176,270  

PNM Resources, Inc.

    4,654       196,678  

Portland General Electric Co.

    5,534                221,471  
   

 

 

 
          1,243,932  
Electrical Equipment — 2.1%            

Acuity Brands, Inc.

    1,705       276,159  

Allient, Inc.

    792       21,859  

Amprius Technologies, Inc.(a)(b)

    1,121       3,262  

Array Technologies, Inc.(a)

    7,700       133,441  

Atkore, Inc.(a)(b)

    2,067       256,887  

Babcock & Wilcox Enterprises, Inc.(a)

    3,193       8,398  

Blink Charging Co.(a)(b)

    2,865       6,819  

Bloom Energy Corp., Class A(a)(b)

    11,388       118,435  

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

    16,126       40,960  

Encore Wire Corp.(b)

    912       163,093  

EnerSys

    2,244       192,042  

Enovix Corp.(a)(b)

    7,230       64,419  

Fluence Energy, Inc., Class A(a)(b)

    2,194       38,000  

FREYR Battery SA(a)(b)

    6,439       20,669  

FuelCell Energy, Inc.(a)

    22,190       24,187  

Generac Holdings, Inc.(a)

    3,388       284,829  

GrafTech International Ltd.

    10,521       36,297  

NEXTracker, Inc., Class A(a)(b)

    2,665       92,635  

NuScale Power Corp., Class A(a)(b)

    2,464       8,328  

nVent Electric PLC

    9,062       436,154  

Plug Power, Inc.(a)(b)

    29,485       173,667  

Powell Industries, Inc.

    501       38,402  

Preformed Line Products Co.

    154       20,844  

Sensata Technologies Holding PLC

    8,354       266,326  

SES AI Corp., Class A(a)

    8,175       14,797  

Shoals Technologies Group, Inc., Class A(a)

    9,242       141,957  

Stem, Inc.(a)(b)

    8,225       27,800  

SunPower Corp.(a)(b)

    4,694       20,043  

Sunrun, Inc.(a)(b)

    11,887       114,710  

Thermon Group Holdings, Inc.(a)

    1,846       49,270  

TPI Composites, Inc.(a)(b)

    2,303       5,320  

Vertiv Holdings Co., Class A

    19,120       750,842  

Vicor Corp.(a)

    1,241       48,076  
   

 

 

 
          3,898,927  
Electronic Equipment, Instruments & Components — 2.5%  

Advanced Energy Industries, Inc.

    2,043       178,272  

Arlo Technologies, Inc.(a)

    5,142       43,656  

Arrow Electronics, Inc.(a)

    3,047       345,560  

Avnet, Inc.

    5,034       233,225  

Badger Meter, Inc.

    1,595       220,987  

Bel Fuse, Inc., Class B, NVS

    545       29,528  

Belden, Inc.

    2,327       164,984  

Benchmark Electronics, Inc.

    1,978       47,887  

Coherent Corp.(a)

    7,142       211,403  

Crane NXT Co.

    2,637       137,124  

CTS Corp.

    1,730       64,719  
Security   Shares     Value  
Electronic Equipment, Instruments & Components (continued)  

ePlus, Inc.(a)

    1,476     $ 92,250  

Evolv Technologies Holdings, Inc., Class A(a)(b)

    4,317       18,347  

Fabrinet(a)

    1,987       307,985  

FARO Technologies, Inc.(a)

    1,119       14,402  

Insight Enterprises, Inc.(a)(b)

    1,672       239,598  

IPG Photonics Corp.(a)

    1,626       139,673  

Itron, Inc.(a)

    2,476       141,825  

Kimball Electronics, Inc.(a)

    1,367       35,815  

Knowles Corp.(a)

    5,111       66,392  

Lightwave Logic, Inc.(a)(b)

    6,495       29,422  

Littelfuse, Inc.

    1,365                295,755  

Methode Electronics, Inc.

    1,979       45,260  

Mirion Technologies, Inc., Class A(a)

    9,853       68,281  

Napco Security Technologies, Inc.

    1,584       29,098  

nLight, Inc.(a)

    2,665       22,200  

Novanta, Inc.(a)(b)

    1,950       257,517  

OSI Systems, Inc.(a)

    840       87,587  

PAR Technology Corp.(a)(b)

    1,497       43,698  

PC Connection, Inc.

    634       33,970  

Plexus Corp.(a)

    1,501       147,578  

Rogers Corp.(a)

    912       112,076  

Sanmina Corp.(a)

    3,114       158,409  

ScanSource, Inc.(a)

    1,419       43,138  

SmartRent, Inc., Class A(a)

    9,774       23,555  

TTM Technologies, Inc.(a)(b)

    5,663       65,068  

Vishay Intertechnology, Inc.

    6,911       153,701  

Vishay Precision Group, Inc.(a)

    667       19,957  

Vontier Corp.

    8,488       250,905  
   

 

 

 
          4,620,807  
Energy Equipment & Services — 1.8%            

Archrock, Inc.

    7,615       96,482  

Atlas Energy Solutions, Inc.

    970       17,664  

Bristow Group, Inc.(a)

    1,330       34,766  

Cactus, Inc., Class A

    3,540       166,168  

ChampionX Corp.

    10,767       331,624  

Core Laboratories, Inc.

    2,564       54,921  

Diamond Offshore Drilling, Inc.(a)

    5,547       68,838  

Dril-Quip, Inc.(a)

    1,888       40,894  

Helix Energy Solutions Group, Inc.(a)

    7,875       77,175  

Helmerich & Payne, Inc.

    5,422       214,549  

Liberty Energy, Inc., Class A

    8,519       167,824  

Nabors Industries Ltd.(a)

    496       48,429  

NOV, Inc.

    21,530       429,739  

Oceaneering International, Inc.(a)

    5,475       120,395  

Oil States International, Inc.(a)

    3,532       25,642  

Patterson-UTI Energy, Inc.

    17,470       221,869  

ProFrac Holding Corp., Class A(a)(b)

    1,132       10,663  

ProPetro Holding Corp.(a)

    4,728       49,550  

RPC, Inc.

    4,751       39,528  

Select Water Solutions, Inc., Class A

    4,526       33,673  

Tidewater, Inc.(a)(b)

    2,636       180,171  

Transocean Ltd.(a)(b)

    36,969       244,735  

U.S. Silica Holdings, Inc.(a)

    4,237       51,141  

Valaris Ltd.(a)

    3,457       228,300  

Weatherford International PLC(a)

    3,921       365,006  
   

 

 

 
          3,319,746  
Entertainment — 1.0%            

AMC Entertainment Holdings, Inc., Class A(a)(b)

    2,961       31,624  

Atlanta Braves Holdings, Inc., Class A(a)

    559       21,192  

Atlanta Braves Holdings, Inc., Class C, NVS(a)

    2,122       73,803  

Cinemark Holdings, Inc.(a)(b)

    5,909       97,439  

Endeavor Group Holdings, Inc., Class A

    10,325       234,997  

 

 

20  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Entertainment (continued)            

IMAX Corp.(a)

    2,483     $ 45,216  

Lions Gate Entertainment Corp., Class A(a)(b)

    3,530       27,746  

Lions Gate Entertainment Corp., Class B, NVS(a)

    6,937       51,750  

Madison Square Garden Entertainment Corp.(a)(b)

    2,315       70,561  

Madison Square Garden Sports Corp., Class A(a)

    903       151,830  

Marcus Corp. (The)

    1,360       21,134  

Playstudios, Inc., Class A(a)

    4,725       13,372  

Playtika Holding Corp.(a)

    3,800       31,920  

Reservoir Media, Inc.(a)(b)

    1,779       10,016  

Roku, Inc., Class A(a)(b)

    6,788       404,361  

Sphere Entertainment Co., Class A(a)(b)

    1,432       47,127  

TKO Group Holdings, Inc., Class A

    2,859                234,381  

Vivid Seats, Inc., Class A(a)

    1,981       11,648  

Warner Music Group Corp., Class A

    7,529       235,658  
   

 

 

 
          1,815,775  
Financial Services — 2.3%            

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

    11,740       206,741  

A-Mark Precious Metals, Inc.

    989       26,782  

AvidXchange Holdings, Inc.(a)(b)

    9,280       80,179  

Cannae Holdings, Inc.(a)

    3,760       61,476  

Cantaloupe, Inc.(a)

    3,082       20,280  

Cass Information Systems, Inc.

    710       26,845  

Compass Diversified Holdings

    3,386       58,171  

Enact Holdings, Inc.

    1,718       47,348  

Essent Group Ltd.

    5,838       275,787  

Euronet Worldwide, Inc.(a)

    2,573       197,709  

EVERTEC, Inc.

    3,505       111,389  

Federal Agricultural Mortgage Corp., Class C, NVS

    509       75,617  

Flywire Corp.(a)

    5,749       154,591  

I3 Verticals, Inc., Class A(a)

    1,272       23,850  

International Money Express, Inc.(a)

    1,936       30,899  

Jackson Financial, Inc., Class A

    3,281       120,445  

Marqeta, Inc., Class A(a)

    23,656       122,302  

Merchants Bancorp

    1,440       43,042  

MGIC Investment Corp.

    15,358       258,629  

Mr. Cooper Group, Inc.(a)

    3,644       205,995  

NMI Holdings, Inc., Class A(a)

    4,557       124,634  

Payoneer Global, Inc.(a)

    11,602       67,176  

PennyMac Financial Services, Inc., Class A

    1,582       106,310  

Radian Group, Inc.

    8,698       220,407  

Remitly Global, Inc.(a)

    7,288       196,266  

Repay Holdings Corp., Class A(a)(b)

    4,047       24,242  

Rocket Cos., Inc., Class A(a)

    6,670       49,291  

Shift4 Payments, Inc., Class A(a)

    3,112       138,546  

TFS Financial Corp.

    2,745       32,556  

Toast, Inc., Class A(a)(b)

    19,797       316,554  

UWM Holdings Corp., Class A

    5,136       24,910  

Voya Financial, Inc.

    5,774       385,530  

Walker & Dunlop, Inc.

    1,821       118,001  

Western Union Co. (The)

    17,053       192,528  
   

 

 

 
          4,145,028  
Food Products — 1.3%            

B&G Foods, Inc.

    3,943       31,820  

Beyond Meat, Inc.(a)(b)

    3,428       20,465  

Calavo Growers, Inc.

    963       24,402  

Cal-Maine Foods, Inc.

    2,218       100,498  

Flowers Foods, Inc.

    10,486       229,958  

Fresh Del Monte Produce, Inc.

    1,850       46,250  

Freshpet, Inc.(a)

    2,622       150,503  

Hain Celestial Group, Inc. (The)(a)

    4,907       54,222  

Hostess Brands, Inc., Class A(a)

    7,292       243,553  

Ingredion, Inc.

    3,627       339,415  
Security   Shares     Value  
Food Products (continued)            

J & J Snack Foods Corp.

    842     $ 131,866  

John B. Sanfilippo & Son, Inc.

    487       49,801  

Lancaster Colony Corp.

    1,118       189,132  

Mission Produce, Inc.(a)(b)

    2,283       21,483  

Pilgrim’s Pride Corp.(a)

    2,192       55,896  

Post Holdings, Inc.(a)(b)

    2,781       223,259  

Seaboard Corp.

    12       42,083  

Simply Good Foods Co. (The)(a)

    4,968                185,257  

Sovos Brands, Inc.(a)

    3,417       74,183  

Tootsie Roll Industries, Inc.

    969       30,146  

TreeHouse Foods, Inc.(a)

    2,815       117,357  

Utz Brands, Inc., Class A

    3,639       44,359  

Vital Farms, Inc.(a)

    1,476       16,324  

Westrock Coffee Co.(a)

    1,535       12,648  
   

 

 

 
          2,434,880  
Gas Utilities — 0.8%            

Chesapeake Utilities Corp.

    973       86,218  

National Fuel Gas Co.

    5,033       256,431  

New Jersey Resources Corp.

    5,306       215,317  

Northwest Natural Holding Co.

    1,998       73,347  

ONE Gas, Inc.

    3,033       183,193  

Southwest Gas Holdings, Inc.

    3,267       191,479  

Spire, Inc.

    2,882       160,326  

UGI Corp.

    11,430       237,744  
   

 

 

 
          1,404,055  
Ground Transportation — 1.3%            

ArcBest Corp.

    1,315       143,177  

Covenant Logistics Group, Inc., Class A

    443       17,492  

Daseke, Inc.(a)

    2,352       10,443  

Heartland Express, Inc.

    2,373       27,669  

Hertz Global Holdings, Inc.(a)

    7,270       61,286  

Landstar System, Inc.

    1,948       320,991  

Lyft, Inc., Class A(a)

    18,686       171,351  

Marten Transport Ltd.

    3,137       55,148  

PAM Transportation Services, Inc.(a)

    303       5,233  

RXO, Inc.(a)

    6,454       113,010  

Ryder System, Inc.

    2,483       242,192  

Saia, Inc.(a)

    1,450       519,810  

Schneider National, Inc., Class B

    2,082       52,737  

Universal Logistics Holdings, Inc.

    377       8,437  

Werner Enterprises, Inc.

    3,430       124,578  

XPO, Inc.(a)

    6,337       480,408  
   

 

 

 
          2,353,962  
Health Care Equipment & Supplies — 2.4%            

Alphatec Holdings, Inc.(a)

    4,447       40,823  

Artivion, Inc.(a)

    2,111       26,894  

AtriCure, Inc.(a)

    2,577       89,267  

Atrion Corp.

    73       24,965  

Avanos Medical, Inc.(a)

    2,543       46,689  

Axonics, Inc.(a)(b)

    2,781       142,415  

Cerus Corp.(a)

    9,808       13,731  

CONMED Corp.(b)

    1,699       165,585  

Cutera, Inc.(a)

    822       2,556  

Embecta Corp.

    3,128       47,295  

Enovis Corp.(a)

    2,704       124,114  

Envista Holdings Corp.(a)(b)

    8,909       207,312  

Establishment Labs Holdings, Inc.(a)(b)

    1,252       36,659  

Glaukos Corp.(a)

    2,659       181,344  

Globus Medical, Inc., Class A(a)(b)

    6,377       291,493  

Haemonetics Corp.(a)

    2,775       236,513  

ICU Medical, Inc.(a)(b)

    1,100       107,866  

 

 

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

  21


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Equipment & Supplies (continued)  

Inari Medical, Inc.(a)

    2,779     $ 168,713  

Inspire Medical Systems, Inc.(a)

    1,597       235,015  

Integer Holdings Corp.(a)

    1,833       148,785  

Integra LifeSciences Holdings Corp.(a)

    3,849       138,410  

iRadimed Corp.

    377       15,359  

iRhythm Technologies, Inc.(a)(b)

    1,663       130,579  

Lantheus Holdings, Inc.(a)(b)

    3,722       240,441  

LeMaitre Vascular, Inc.

    1,097       53,292  

LivaNova PLC(a)

    2,929       143,667  

Merit Medical Systems, Inc.(a)

    3,164                217,493  

Neogen Corp.(a)

    10,703       159,368  

Nevro Corp.(a)(b)

    1,953       28,182  

Novocure Ltd.(a)

    5,278       70,197  

Omnicell, Inc.(a)

    2,454       87,215  

OraSure Technologies, Inc.(a)

    4,010       20,692  

Orchestra BioMed Holdings, Inc.(a)(b)

    1,395       6,543  

Orthofix Medical, Inc.(a)

    2,024       22,345  

OrthoPediatrics Corp.(a)

    833       20,375  

Outset Medical, Inc.(a)

    2,685       9,505  

Paragon 28, Inc.(a)

    2,019       17,424  

PROCEPT BioRobotics Corp.(a)

    2,388       63,975  

Pulmonx Corp.(a)(b)

    2,036       17,896  

QuidelOrtho Corp.(a)

    2,691       164,366  

RxSight, Inc.(a)

    1,225       27,122  

SI-BONE, Inc.(a)(b)

    1,997       33,969  

Sight Sciences, Inc.(a)

    1,868       2,961  

Silk Road Medical, Inc.(a)(b)

    2,116       15,891  

STAAR Surgical Co.(a)(b)

    2,669       111,618  

Tandem Diabetes Care, Inc.(a)

    3,615       62,539  

TransMedics Group, Inc.(a)(b)

    1,772       66,415  

Treace Medical Concepts, Inc.(a)

    2,340       23,470  

UFP Technologies, Inc.(a)

    385       60,029  

Varex Imaging Corp.(a)

    2,213       39,945  

Zynex, Inc.(a)

    1,150       10,212  
   

 

 

 
          4,419,529  
Health Care Providers & Services — 2.4%            

23andMe Holding Co., Class A(a)(b)

    15,895       13,465  

Acadia Healthcare Co., Inc.(a)

    5,039       370,417  

Accolade, Inc.(a)

    3,741       24,316  

AdaptHealth Corp.(a)

    4,430       32,472  

Addus HomeCare Corp.(a)

    880       69,432  

Agiliti, Inc.(a)

    1,903       10,714  

Alignment Healthcare, Inc.(a)(b)

    5,298       36,450  

Amedisys, Inc.(a)

    1,794       164,133  

AMN Healthcare Services, Inc.(a)

    2,065       156,651  

Apollo Medical Holdings, Inc.(a)(b)

    2,282       71,221  

Brookdale Senior Living, Inc.(a)

    10,246       40,062  

Castle Biosciences, Inc.(a)

    1,548       24,180  

Community Health Systems, Inc.(a)

    6,791       14,533  

CorVel Corp.(a)(b)

    490       95,031  

Cross Country Healthcare, Inc.(a)(b)

    1,826       42,290  

DocGo, Inc.(a)(b)

    4,846       28,785  

Encompass Health Corp.

    5,480       342,829  

Enhabit, Inc.(a)(b)

    2,742       20,209  

Ensign Group, Inc. (The)

    3,075       297,045  

Fulgent Genetics, Inc.(a)

    1,094       26,190  

Guardant Health, Inc.(a)

    6,406       165,787  

HealthEquity, Inc.(a)

    4,679       335,391  

Hims & Hers Health, Inc., Class A(a)

    7,939       47,475  

LifeStance Health Group, Inc.(a)(b)

    4,849       28,270  

ModivCare, Inc.(a)

    680       28,723  

National HealthCare Corp.

    745       50,183  
Security   Shares     Value  
Health Care Providers & Services (continued)            

National Research Corp., Class A

    803     $ 33,935  

NeoGenomics, Inc.(a)

    6,951       97,453  

OPKO Health, Inc.(a)

    23,997       29,996  

Option Care Health, Inc.(a)

    9,781       271,227  

Owens & Minor, Inc.(a)

    4,168       59,727  

Patterson Cos., Inc.

    4,635       141,182  

Pediatrix Medical Group, Inc.(a)

    4,534       51,960  

Pennant Group, Inc. (The)(a)

    1,704       18,523  

Premier, Inc., Class A

    6,483                124,603  

Privia Health Group, Inc.(a)(b)

    5,551       116,682  

Progyny, Inc.(a)

    4,560       140,722  

R1 RCM, Inc.(a)(b)

    10,708       126,247  

RadNet, Inc.(a)

    3,278       88,375  

Select Medical Holdings Corp.

    5,703       129,629  

Surgery Partners, Inc.(a)(b)

    3,578       82,759  

Tenet Healthcare Corp.(a)

    5,556       298,357  

U.S. Physical Therapy, Inc.

    821       69,054  
   

 

 

 
          4,416,685  
Health Care REITs — 0.7%            

CareTrust REIT, Inc.

    5,478       117,887  

Community Healthcare Trust, Inc.

    1,358       38,934  

Global Medical REIT, Inc.

    3,352       29,028  

LTC Properties, Inc.

    2,281       72,102  

Medical Properties Trust, Inc.

    32,595       155,804  

National Health Investors, Inc.

    2,377       118,945  

Omega Healthcare Investors, Inc.

    13,341       441,587  

Physicians Realty Trust

    12,998       141,158  

Sabra Health Care REIT, Inc.

    12,646       172,492  

Universal Health Realty Income Trust

    689       26,485  
   

 

 

 
          1,314,422  
Health Care Technology — 0.5%            

American Well Corp., Class A(a)

    13,797       16,142  

Certara, Inc.(a)(b)

    5,896       71,872  

Definitive Healthcare Corp., Class A(a)

    2,516       14,492  

Doximity, Inc., Class A(a)(b)

    6,829       139,516  

Evolent Health, Inc., Class A(a)(b)

    6,146       150,147  

Health Catalyst, Inc.(a)

    3,176       23,788  

HealthStream, Inc.

    1,348       34,239  

Multiplan Corp., Class A(a)

    14,853       25,102  

NextGen Healthcare, Inc.(a)

    2,995       71,640  

Phreesia, Inc.(a)(b)

    2,784       38,029  

Schrodinger, Inc.(a)(b)

    2,970       64,449  

Sharecare, Inc., Class A(a)

    17,690       18,575  

Simulations Plus, Inc.

    887       31,285  

Teladoc Health, Inc.(a)(b)

    9,003       148,910  

Veradigm, Inc.(a)(b)

    6,036       79,615  
   

 

 

 
          927,801  
Hotel & Resort REITs — 0.6%            

Apple Hospitality REIT, Inc.

    11,717       183,722  

Chatham Lodging Trust

    2,631       24,337  

DiamondRock Hospitality Co.

    11,574       89,467  

Park Hotels & Resorts, Inc.

    11,756       135,547  

Pebblebrook Hotel Trust(b)

    6,544       78,070  

RLJ Lodging Trust

    8,571       80,567  

Ryman Hospitality Properties, Inc.

    3,277       280,511  

Service Properties Trust

    9,063       65,707  

Summit Hotel Properties, Inc.

    5,837       32,921  

Sunstone Hotel Investors, Inc.

    11,365       105,694  

Xenia Hotels & Resorts, Inc.

    5,847       68,001  
   

 

 

 
          1,144,544  

 

 

22  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Hotels, Restaurants & Leisure — 2.8%            

Accel Entertainment, Inc., Class A(a)

    3,092     $ 30,456  

Bally’s Corp.(a)

    1,578       14,391  

BJ’s Restaurants, Inc.(a)

    1,284       33,024  

Bloomin’ Brands, Inc.

    4,756       111,005  

Bowlero Corp., Class A(a)(b)

    2,479       25,013  

Boyd Gaming Corp.

    3,889       214,867  

Brinker International, Inc.(a)

    2,433       82,527  

Cheesecake Factory, Inc. (The)

    2,549       79,197  

Choice Hotels International, Inc.

    1,361                150,391  

Chuy’s Holdings, Inc.(a)

    987       33,222  

Cracker Barrel Old Country Store, Inc.

    1,212       80,428  

Dave & Buster’s Entertainment, Inc.(a)

    1,867       65,233  

Denny’s Corp.(a)

    3,034       26,153  

Dine Brands Global, Inc.

    886       43,671  

Dutch Bros, Inc., Class A(a)

    2,833       68,955  

Everi Holdings, Inc.(a)

    4,727       51,004  

First Watch Restaurant Group, Inc.(a)

    1,290       21,556  

Global Business Travel Group I, Class A(a)

    2,488       12,266  

Golden Entertainment, Inc.

    1,157       36,284  

Hilton Grand Vacations, Inc.(a)

    3,998       143,728  

Hyatt Hotels Corp., Class A

    2,506       256,715  

Jack in the Box, Inc.

    1,093       69,056  

Krispy Kreme, Inc.

    4,579       59,206  

Kura Sushi U.S.A., Inc., Class A(a)

    300       17,142  

Life Time Group Holdings, Inc.(a)(b)

    3,234       38,226  

Light & Wonder, Inc., Class A(a)(b)

    4,996       365,258  

Lindblad Expeditions Holdings, Inc.(a)(b)

    2,081       12,944  

Marriott Vacations Worldwide Corp.

    1,868       167,859  

Monarch Casino & Resort, Inc.

    732       44,059  

Norwegian Cruise Line Holdings Ltd.(a)(b)

    23,155       314,908  

Papa John’s International, Inc.

    1,775       115,411  

Penn Entertainment, Inc.(a)

    8,219       162,161  

Planet Fitness, Inc., Class A(a)(b)

    4,596       254,021  

Portillo’s, Inc., Class A(a)

    2,594       38,780  

RCI Hospitality Holdings, Inc.(b)

    461       25,129  

Red Rock Resorts, Inc., Class A

    2,699       106,745  

Sabre Corp.(a)

    18,205       63,718  

SeaWorld Entertainment, Inc.(a)

    1,942       83,661  

Shake Shack, Inc., Class A(a)

    2,037       114,154  

Six Flags Entertainment Corp.(a)

    3,904       77,690  

Sweetgreen, Inc., Class A(a)(b)

    4,946       51,092  

Target Hospitality Corp.(a)

    1,522       20,897  

Texas Roadhouse, Inc.

    3,655       371,129  

Travel + Leisure Co.

    4,032       137,209  

Wendy’s Co. (The)

    9,305       176,981  

Wingstop, Inc.

    1,640       299,743  

Wyndham Hotels & Resorts, Inc.

    4,588       332,171  

Xponential Fitness, Inc., Class A(a)

    1,422       20,292  
   

 

 

 
          5,119,728  
Household Durables — 2.2%            

Beazer Homes U.S.A., Inc.(a)

    1,622       39,236  

Cavco Industries, Inc.(a)

    438       109,285  

Century Communities, Inc.

    1,584       97,416  

Cricut, Inc., Class A(b)

    2,764       23,577  

Dream Finders Homes, Inc., Class A(a)(b)

    1,230       24,219  

Ethan Allen Interiors, Inc.

    1,267       33,272  

GoPro, Inc., Class A(a)

    6,977       17,512  

Green Brick Partners, Inc.(a)

    1,379       53,367  

Helen of Troy Ltd.(a)

    1,307       128,504  

Hovnanian Enterprises, Inc., Class A(a)

    257       17,856  

Installed Building Products, Inc.

    1,295       144,613  

iRobot Corp.(a)

    1,528       50,317  
Security   Shares     Value  
Household Durables (continued)            

KB Home

    4,276     $ 188,999  

La-Z-Boy, Inc.

    2,382       69,650  

Legacy Housing Corp.(a)

    353       6,534  

Leggett & Platt, Inc.

    7,272       170,383  

LGI Homes, Inc.(a)

    1,109       104,812  

Lovesac Co. (The)(a)

    729       11,999  

M/I Homes, Inc.(a)

    1,516       124,418  

MDC Holdings, Inc.

    3,291       124,894  

Meritage Homes Corp.

    1,990       226,900  

Mohawk Industries, Inc.(a)

    2,873                230,932  

Newell Brands, Inc.

    20,854       140,139  

Skyline Champion Corp.(a)

    2,889       169,382  

Sonos, Inc.(a)

    6,999       75,449  

Taylor Morrison Home Corp., Class A(a)

    5,985       229,345  

Tempur Sealy International, Inc.

    9,423       376,260  

Toll Brothers, Inc.

    5,984       423,129  

TopBuild Corp.(a)

    1,736       397,127  

Tri Pointe Homes, Inc.(a)(b)

    5,384       134,923  

Vizio Holding Corp., Class A(a)(b)

    5,398       27,476  
   

 

 

 
          3,971,925  
Household Products — 0.3%            

Central Garden & Pet Co.(a)

    531       23,167  

Central Garden & Pet Co., Class A, NVS(a)

    2,216       87,953  

Energizer Holdings, Inc.

    3,682       116,278  

Reynolds Consumer Products, Inc.

    3,022       76,849  

Spectrum Brands Holdings, Inc.

    1,943       146,347  

WD-40 Co.(b)

    745       157,493  
   

 

 

 
          608,087  
Independent Power and Renewable Electricity Producers — 0.2%  

Altus Power, Inc., Class A(a)

    3,262       17,321  

Clearway Energy, Inc., Class A

    1,868       38,051  

Clearway Energy, Inc., Class C

    4,527       98,281  

Montauk Renewables, Inc.(a)(b)

    3,576       35,975  

Ormat Technologies, Inc.

    2,941       180,989  

Sunnova Energy International, Inc.(a)(b)

    5,450       49,759  
   

 

 

 
          420,376  
Industrial REITs — 0.8%            

EastGroup Properties, Inc.

    2,477       404,370  

First Industrial Realty Trust, Inc.

    7,122       301,261  

Innovative Industrial Properties, Inc.

    1,532       110,043  

LXP Industrial Trust

    15,971       126,331  

Plymouth Industrial REIT, Inc.

    1,951       38,903  

STAG Industrial, Inc.

    9,822       326,287  

Terreno Realty Corp.

    4,537       241,731  
   

 

 

 
          1,548,926  
Insurance — 2.8%            

Ambac Financial Group, Inc.(a)

    2,572       31,198  

American Equity Investment Life Holding Co.(a)

    3,399       180,011  

AMERISAFE, Inc.

    1,122       57,188  

Argo Group International Holdings Ltd.

    1,950       58,188  

Assurant, Inc.

    2,906       432,704  

Assured Guaranty Ltd.

    3,096       193,191  

Axis Capital Holdings Ltd.

    4,391       250,726  

Brighthouse Financial, Inc.(a)

    3,690       167,157  

BRP Group, Inc., Class A(a)(b)

    3,509       73,443  

CNO Financial Group, Inc.

    6,474       150,067  

Donegal Group, Inc., Class A

    1,168       16,492  

Employers Holdings, Inc.

    1,020       38,760  

Enstar Group Ltd.(a)

    733       173,699  

F&G Annuities & Life, Inc.

    1,037       31,826  

First American Financial Corp.

    5,664       291,356  

 

 

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

  23


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Insurance (continued)            

Genworth Financial, Inc., Class A(a)

    21,260     $ 127,347  

Goosehead Insurance, Inc., Class A(a)

    1,315       85,304  

Hagerty, Inc., Class A(a)

    1,378       10,638  

Hanover Insurance Group, Inc. (The)

    1,992       233,482  

HCI Group, Inc.

    338       19,932  

Hippo Holdings, Inc.(a)

    870       6,264  

Horace Mann Educators Corp.

    1,984       62,952  

James River Group Holdings Ltd.

    2,049       28,174  

Kemper Corp.

    3,305                131,804  

Lemonade, Inc.(a)(b)

    3,391       37,098  

Lincoln National Corp.

    8,621       187,679  

MBIA, Inc.(a)

    2,393       16,464  

Mercury General Corp.

    1,511       46,660  

National Western Life Group, Inc., Class A

    124       59,384  

Oscar Health, Inc., Class A(a)

    7,678       39,311  

Palomar Holdings, Inc.(a)

    1,366       68,409  

Primerica, Inc.

    1,986       379,644  

ProAssurance Corp.

    2,198       37,366  

RLI Corp.

    2,213       294,860  

Ryan Specialty Holdings, Inc., Class A(a)(b)

    5,520       238,464  

Safety Insurance Group, Inc.

    773       58,107  

Selective Insurance Group, Inc.

    3,329       346,582  

SiriusPoint Ltd.(a)

    4,819       47,467  

Skyward Specialty Insurance Group, Inc.(a)

    1,540       43,351  

Stewart Information Services Corp.

    1,375       60,046  

Tiptree, Inc.

    1,193       18,026  

Trupanion, Inc.(a)(b)

    1,969       40,561  

United Fire Group, Inc.

    1,186       23,886  

Universal Insurance Holdings, Inc.

    1,496       23,427  

White Mountains Insurance Group Ltd.

    138       197,444  
   

 

 

 
          5,116,139  
Interactive Media & Services — 0.6%            

Bumble, Inc., Class A(a)

    5,403       72,616  

Cargurus, Inc., Class A(a)

    4,733       81,550  

Cars.com, Inc.(a)

    3,334       50,777  

Eventbrite, Inc., Class A(a)(b)

    4,503       37,285  

Grindr, Inc.(a)

    980       5,831  

IAC, Inc.(a)(b)

    3,798       161,605  

QuinStreet, Inc.(a)

    2,919       33,014  

Rumble, Inc., Class A(a)(b)

    4,115       18,476  

Shutterstock, Inc.

    1,323       53,820  

Taboola.com Ltd.(a)(b)

    8,306       30,483  

TripAdvisor, Inc.(a)(b)

    5,900       87,084  

Vimeo, Inc.(a)

    8,835       27,212  

Yelp, Inc.(a)

    3,749       158,170  

Ziff Davis, Inc.(a)(b)

    2,535       153,266  

ZipRecruiter, Inc., Class A(a)(b)

    3,980       42,387  
   

 

 

 
          1,013,576  
IT Services — 0.5%            

BigBear.ai Holdings, Inc.(a)(b)

    3,056       3,881  

BigCommerce Holdings, Inc., Series 1(a)

    3,675       32,671  

DigitalOcean Holdings, Inc.(a)

    2,850       58,311  

DXC Technology Co.(a)

    11,196       225,823  

Fastly, Inc., Class A(a)(b)

    6,504       95,414  

Grid Dynamics Holdings, Inc., Class A(a)

    3,043       30,856  

Hackett Group, Inc. (The)

    1,335       29,757  

Kyndryl Holdings, Inc.(a)

    12,478       182,553  

Perficient, Inc.(a)

    1,898       110,445  

Squarespace, Inc., Class A(a)

    2,437       69,235  

Thoughtworks Holding, Inc.(a)(b)

    5,054       17,133  
   

 

 

 
          856,079  
Security   Shares     Value  
Leisure Products — 0.9%            

Acushnet Holdings Corp.

    1,661     $ 84,644  

Brunswick Corp.

    3,819       265,306  

Funko, Inc., Class A(a)

    1,935       14,919  

Johnson Outdoors, Inc., Class A

    356       16,928  

Malibu Boats, Inc., Class A(a)

    1,113       48,549  

MasterCraft Boat Holdings, Inc.(a)

    806       16,475  

Mattel, Inc.(a)

    19,361       369,408  

Peloton Interactive, Inc., Class A(a)(b)

    18,533       88,217  

Polaris, Inc.

    2,897                250,359  

Smith & Wesson Brands, Inc.

    2,615       38,519  

Solo Brands, Inc., Class A(a)

    1,474       5,675  

Sturm Ruger & Co., Inc.

    954       52,804  

Topgolf Callaway Brands Corp.(a)

    7,816       95,511  

Vista Outdoor, Inc.(a)

    3,204       80,484  

YETI Holdings, Inc.(a)

    4,719       200,652  
   

 

 

 
          1,628,450  
Life Sciences Tools & Services — 0.6%            

10X Genomics, Inc., Class A(a)

    5,628       198,556  

Adaptive Biotechnologies Corp.(a)

    6,052       26,871  

Azenta, Inc.(a)

    3,277       148,940  

BioLife Solutions, Inc.(a)(b)

    1,834       18,523  

CryoPort, Inc.(a)

    2,660       25,802  

Cytek Biosciences, Inc.(a)

    5,405       22,755  

Maravai LifeSciences Holdings, Inc., Class A(a)(b)

    5,969       40,947  

Medpace Holdings, Inc.(a)

    1,273       308,919  

Mesa Laboratories, Inc.

    274       25,709  

NanoString Technologies, Inc.(a)(b)

    2,459       3,393  

OmniAb, Inc.(a)(b)

    5,202       23,669  

OmniAb, Inc., 12.50 Earnout Shares(c)

    359        

OmniAb, Inc., 15.00 Earnout Shares(c)

    359        

Pacific Biosciences of California, Inc.(a)(b)

    12,689       78,418  

Quanterix Corp.(a)

    1,882       40,877  

SomaLogic, Inc., Class A(a)

    8,682       19,361  

Sotera Health Co.(a)(b)

    5,375       68,048  
   

 

 

 
          1,050,788  
Machinery — 3.7%            

3D Systems Corp.(a)

    7,204       26,871  

Alamo Group, Inc.

    566       90,730  

Albany International Corp., Class A

    1,710       139,553  

Allison Transmission Holdings, Inc.

    4,867       245,394  

Astec Industries, Inc.

    1,243       49,770  

Barnes Group, Inc.

    2,784       57,879  

Blue Bird Corp.(a)

    935       17,026  

Chart Industries, Inc.(a)

    2,291       266,283  

Columbus McKinnon Corp.

    1,573       48,087  

Crane Co.

    2,677       260,552  

Desktop Metal, Inc., Class A(a)(b)

    12,994       11,258  

Donaldson Co., Inc.

    6,601       380,614  

Douglas Dynamics, Inc.

    1,256       30,496  

Energy Recovery, Inc.(a)(b)

    3,057       46,466  

Enerpac Tool Group Corp., Class A

    3,058       86,541  

EnPro Industries, Inc.

    1,137       126,275  

Esab Corp.(b)

    3,080       194,964  

ESCO Technologies, Inc.

    1,412       137,275  

Federal Signal Corp.

    3,342       193,970  

Flowserve Corp.

    7,208       264,678  

Franklin Electric Co., Inc.

    2,160       187,315  

Gates Industrial Corp. PLC(a)

    7,201       78,635  

Gorman-Rupp Co. (The)

    1,353       39,981  

Greenbrier Cos., Inc. (The)

    1,682       58,180  

Helios Technologies, Inc.

    1,813       93,768  

Hillenbrand, Inc.

    3,793       144,248  

 

 

24  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Machinery (continued)            

Hillman Solutions Corp.(a)

    10,556     $ 69,247  

Hyster-Yale Materials Handling, Inc., Class A

    616       24,646  

ITT, Inc.

    4,394       410,180  

John Bean Technologies Corp.

    1,731       180,059  

Kadant, Inc.(b)

    644       141,680  

Kennametal, Inc.

    4,403       101,753  

Lindsay Corp.

    600       74,952  

Luxfer Holdings PLC

    1,548       12,802  

Manitowoc Co., Inc. (The)(a)

    1,917       24,538  

Mueller Industries, Inc.

    6,174                232,821  

Mueller Water Products, Inc., Class A

    8,540       105,640  

Nikola Corp.(a)(b)

    38,470       41,548  

Omega Flex, Inc.

    177       12,933  

Oshkosh Corp.

    3,558       312,143  

Proto Labs, Inc.(a)

    1,431       33,786  

RBC Bearings, Inc.(a)

    1,589       349,326  

REV Group, Inc.

    1,690       24,066  

Shyft Group, Inc. (The)

    1,758       19,303  

SPX Technologies, Inc.(a)

    2,504       200,620  

Standex International Corp.

    642       92,172  

Symbotic, Inc., Class A(a)(b)

    870       29,606  

Tennant Co.

    1,020       75,704  

Terex Corp.

    3,670       168,086  

Timken Co. (The)

    3,583       247,657  

Titan International, Inc.(a)

    2,777       31,547  

Trinity Industries, Inc.

    4,438       92,444  

Velo3D, Inc.(a)(b)

    5,049       6,665  

Wabash National Corp.

    2,536       52,470  

Watts Water Technologies, Inc., Class A

    1,495       258,650  
   

 

 

 
          6,703,853  
Marine Transportation — 0.2%            

Eagle Bulk Shipping, Inc.

    377       15,382  

Genco Shipping & Trading Ltd.

    2,349       30,936  

Kirby Corp.(a)

    3,263       243,746  

Matson, Inc.

    1,921       167,223  
   

 

 

 
          457,287  
Media — 0.8%            

Advantage Solutions, Inc., Class A(a)

    5,434       12,498  

Altice U.S.A., Inc., Class A(a)(b)

    12,516       36,171  

AMC Networks, Inc., Class A(a)

    1,763       20,803  

Boston Omaha Corp., Class A(a)

    1,107       15,753  

Cable One, Inc.

    251       138,017  

Clear Channel Outdoor Holdings, Inc.(a)(b)

    19,259       21,185  

DISH Network Corp., Class A(a)

    13,528       66,287  

EW Scripps Co. (The), Class A, NVS(a)

    3,334       18,237  

Gray Television, Inc.

    4,381       28,564  

iHeartMedia, Inc., Class A(a)(b)

    5,903       13,872  

Integral Ad Science Holding Corp.(a)

    2,984       34,256  

John Wiley & Sons, Inc., Class A

    2,336       70,711  

Magnite, Inc.(a)(b)

    6,515       43,260  

New York Times Co. (The), Class A

    8,905       358,961  

Nexstar Media Group, Inc., Class A

    1,829       256,206  

PubMatic, Inc., Class A(a)

    2,360       26,597  

Scholastic Corp., NVS

    1,520       56,088  

Sinclair, Inc., Class A

    2,070       22,501  

Stagwell, Inc., Class A(a)(b)

    5,530       22,784  

TechTarget, Inc.(a)

    1,409       35,479  

TEGNA, Inc.

    10,991       159,479  

Thryv Holdings, Inc.(a)

    1,685       29,370  

WideOpenWest, Inc.(a)(b)

    2,503       17,621  
   

 

 

 
          1,504,700  
Security   Shares     Value  
Metals & Mining — 1.5%            

Alcoa Corp.

    9,805     $ 251,400  

Alpha Metallurgical Resources, Inc.

    664       146,053  

Arch Resources, Inc., Class A

    987       148,869  

ATI, Inc.(a)(b)

    7,024       265,297  

Carpenter Technology Corp.

    2,642       165,706  

Century Aluminum Co.(a)

    2,802       18,521  

Coeur Mining, Inc.(a)

    19,125       48,004  

Commercial Metals Co.

    6,368                269,303  

Compass Minerals International, Inc.

    1,825       44,968  

Gatos Silver, Inc.(a)(b)

    2,587       12,599  

Haynes International, Inc.

    687       29,558  

Hecla Mining Co.

    31,197       126,972  

Ivanhoe Electric, Inc.(a)

    4,404       45,097  

Kaiser Aluminum Corp.

    868       49,302  

Materion Corp.

    1,121       108,715  

MP Materials Corp., Class A(a)

    7,808       128,051  

Olympic Steel, Inc.

    525       26,654  

Piedmont Lithium, Inc.(a)(b)

    979       26,893  

Ryerson Holding Corp.

    1,592       46,248  

Schnitzer Steel Industries, Inc., Class A

    1,394       31,658  

SunCoke Energy, Inc.

    4,717       44,859  

TimkenSteel Corp.(a)

    2,132       43,344  

United States Steel Corp.

    12,206       413,661  

Warrior Met Coal, Inc.

    2,832       138,003  

Worthington Industries, Inc.

    1,653       101,858  
   

 

 

 
          2,731,593  
Mortgage Real Estate Investment Trusts (REITs) — 1.1%  

AGNC Investment Corp.

    33,359       246,189  

Apollo Commercial Real Estate Finance, Inc.

    7,204       71,752  

Arbor Realty Trust, Inc.

    10,058       126,831  

Ares Commercial Real Estate Corp.

    2,923       26,804  

ARMOUR Residential REIT, Inc.

    2,456       35,784  

Blackstone Mortgage Trust, Inc., Class A

    9,354       186,612  

BrightSpire Capital, Inc., Class A

    7,132       40,367  

Chimera Investment Corp.

    12,380       59,424  

Claros Mortgage Trust, Inc.

    6,662       69,485  

Dynex Capital, Inc.

    3,069       30,813  

Ellington Financial, Inc.

    3,775       45,413  

Franklin BSP Realty Trust, Inc.

    4,505       56,808  

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

    5,805       99,498  

KKR Real Estate Finance Trust, Inc.

    3,155       32,938  

Ladder Capital Corp., Class A

    6,233       63,016  

MFA Financial, Inc.

    5,515       49,028  

New York Mortgage Trust, Inc.

    5,021       39,114  

Orchid Island Capital, Inc.

    2,332       14,645  

PennyMac Mortgage Investment Trust

    4,708       59,556  

Ready Capital Corp.

    8,604       81,136  

Redwood Trust, Inc.

    6,216       39,036  

Rithm Capital Corp.

    26,355       245,892  

Starwood Property Trust, Inc.

    16,170       287,018  

TPG RE Finance Trust, Inc.

    3,288       18,117  

Two Harbors Investment Corp.

    5,318       61,742  
   

 

 

 
          2,087,018  
Multi-Utilities — 0.3%            

Avista Corp.

    4,204       133,225  

Black Hills Corp.

    3,676       177,734  

Northwestern Energy Group, Inc.

    3,293       158,097  

Unitil Corp.

    900       41,103  
   

 

 

 
          510,159  

 

 

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

  25


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Office REITs — 0.7%            

Brandywine Realty Trust

    9,421     $ 35,235  

COPT Defense Properties

    6,110       139,308  

Cousins Properties, Inc.

    8,275       147,874  

Douglas Emmett, Inc.

    9,221       103,367  

Easterly Government Properties, Inc.

    5,132       55,220  

Equity Commonwealth

    5,959       112,864  

Highwoods Properties, Inc.

    5,768       103,190  

Hudson Pacific Properties, Inc.

    7,051       31,447  

JBG SMITH Properties

    5,177       66,628  

Kilroy Realty Corp.

    5,802                165,821  

Paramount Group, Inc.

    9,055       38,755  

Piedmont Office Realty Trust, Inc., Class A

    6,916       36,032  

SL Green Realty Corp.(b)

    3,557       104,185  

Vornado Realty Trust

    8,728       167,578  
   

 

 

 
          1,307,504  
Oil, Gas & Consumable Fuels — 4.2%            

Antero Midstream Corp.

    18,762       231,523  

Antero Resources Corp.(a)

    15,444       454,671  

Berry Corp.

    3,775       31,521  

California Resources Corp.

    3,534       185,853  

Callon Petroleum Co.(a)(b)

    3,042       113,619  

Centrus Energy Corp., Class A(a)

    724       38,423  

Chord Energy Corp.

    2,264       374,284  

Civitas Resources, Inc.

    4,657       351,278  

Clean Energy Fuels Corp.(a)(b)

    9,685       33,801  

CNX Resources Corp.(a)

    8,778       190,658  

Comstock Resources, Inc.

    5,003       63,038  

CONSOL Energy, Inc.

    1,568       144,084  

Crescent Energy Co., Class A

    4,495       54,749  

CVR Energy, Inc.

    1,763       57,738  

Delek U.S. Holdings, Inc.

    3,519       92,726  

Denbury, Inc.(a)

    2,770       246,225  

Dorian LPG Ltd.

    1,853       59,240  

DT Midstream, Inc.

    5,342       288,308  

Earthstone Energy, Inc., Class A(a)

    3,474       73,545  

Enviva, Inc.

    1,794       6,494  

Equitrans Midstream Corp.

    23,796       211,071  

Excelerate Energy, Inc., Class A

    1,017       14,462  

Green Plains, Inc.(a)(b)

    1,656       48,653  

Gulfport Energy Corp.(a)

    539       66,626  

HighPeak Energy, Inc.(b)

    974       17,250  

International Seaways, Inc.

    2,050       98,584  

Kinetik Holdings, Inc., Class A

    845       29,947  

Kosmos Energy Ltd.(a)(b)

    25,118       181,854  

Magnolia Oil & Gas Corp., Class A

    10,250       230,112  

Matador Resources Co.

    6,033       372,176  

Murphy Oil Corp.

    8,147       365,556  

New Fortress Energy, Inc., Class A

    3,568       108,110  

NextDecade Corp.(a)(b)

    4,085       17,933  

Northern Oil & Gas, Inc.

    4,906       188,096  

Par Pacific Holdings, Inc.(a)

    3,225       105,844  

PBF Energy, Inc., Class A

    6,035       286,844  

Peabody Energy Corp.

    6,074       143,286  

Permian Resources Corp., Class A

    15,247       222,149  

Range Resources Corp.

    13,197       472,980  

REX American Resources Corp.(a)

    936       35,577  

Riley Exploration Permian, Inc.

    207       6,552  

SandRidge Energy, Inc.

    1,705       27,024  

SilverBow Resources, Inc.(a)(b)

    674       22,983  

Sitio Royalties Corp., Class A

    4,449       109,979  

SM Energy Co.

    6,464       260,628  

Southwestern Energy Co.(a)

    59,958       427,501  
Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)            

Talos Energy, Inc.(a)

    5,475     $ 84,862  

Tellurian, Inc.(a)(b)

    31,538       21,761  

Uranium Energy Corp.(a)(b)

    20,588       122,499  

VAALCO Energy, Inc.

    6,025       26,932  

Vertex Energy, Inc.(a)(b)

    4,463       19,236  

Vital Energy, Inc.(a)

    912       45,636  

Vitesse Energy, Inc.

    1,249       29,589  

W&T Offshore, Inc.(a)(b)

    5,525       22,929  

World Kinect Corp.

    3,517       65,065  
   

 

 

 
          7,602,064  
Paper & Forest Products — 0.2%            

Clearwater Paper Corp.(a)

    930       31,443  

Louisiana-Pacific Corp.

    3,490       178,967  

Mercer International, Inc.

    2,345       18,619  

Sylvamo Corp.

    1,938       85,854  
   

 

 

 
                   314,883  
Passenger Airlines — 0.4%            

Alaska Air Group, Inc.(a)

    6,923       218,975  

Allegiant Travel Co.

    823       54,828  

Frontier Group Holdings, Inc.(a)

    2,188       7,417  

Hawaiian Holdings, Inc.(a)

    2,936       12,361  

JetBlue Airways Corp.(a)

    18,394       69,161  

Joby Aviation, Inc., Class A(a)(b)

    20,020       105,505  

SkyWest, Inc.(a)

    2,297       96,865  

Spirit Airlines, Inc.

    5,953       68,340  

Sun Country Airlines Holdings, Inc.(a)

    2,191       28,527  
   

 

 

 
          661,979  
Personal Care Products — 0.6%            

Beauty Health Co. (The), Class A(a)(b)

    4,502       18,233  

BellRing Brands, Inc.(a)

    7,144       312,407  

Edgewell Personal Care Co.

    2,805       97,894  

elf Beauty, Inc.(a)

    2,970       275,111  

Herbalife Ltd.(a)(b)

    5,390       76,807  

Inter Parfums, Inc.

    973       123,678  

Medifast, Inc.

    592       40,943  

Nu Skin Enterprises, Inc., Class A

    2,734       51,919  

Olaplex Holdings, Inc.(a)

    6,006       8,529  

USANA Health Sciences, Inc.(a)

    609       27,740  
   

 

 

 
          1,033,261  
Pharmaceuticals — 1.3%            

Aclaris Therapeutics, Inc.(a)

    2,965       14,766  

Amphastar Pharmaceuticals, Inc.(a)

    2,088       94,524  

Amylyx Pharmaceuticals, Inc.(a)

    2,205       35,964  

ANI Pharmaceuticals, Inc.(a)

    873       53,899  

Arvinas, Inc.(a)(b)

    2,918       47,038  

Axsome Therapeutics, Inc.(a)

    2,107       131,224  

Cassava Sciences, Inc.(a)(b)

    2,149       43,302  

Collegium Pharmaceutical, Inc.(a)

    1,937       42,149  

Corcept Therapeutics, Inc.(a)(b)

    4,912       137,929  

Cymabay Therapeutics, Inc.(a)(b)

    5,722       93,726  

Edgewise Therapeutics, Inc.(a)(b)

    2,312       14,797  

Elanco Animal Health, Inc.(a)

    26,814       236,231  

Enliven Therapeutics, Inc.(a)(b)

    1,122       13,902  

Evolus, Inc.(a)

    2,413       18,339  

Harmony Biosciences Holdings, Inc.(a)

    1,829       43,055  

Harrow, Inc.(a)(b)

    1,675       24,011  

Innoviva, Inc.(a)

    3,094       38,397  

Intra-Cellular Therapies, Inc.(a)

    4,868       242,232  

Ligand Pharmaceuticals, Inc.(a)

    899       47,009  

Liquidia Corp.(a)(b)

    2,628       17,108  

Marinus Pharmaceuticals, Inc.(a)(b)

    2,805       19,467  

 

 

26  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Pharmaceuticals (continued)            

Ocular Therapeutix, Inc.(a)(b)

    4,261     $ 12,144  

Organon & Co.

    13,936       206,113  

Pacira BioSciences, Inc.(a)

    2,513       71,017  

Perrigo Co. PLC

    7,374                203,817  

Phathom Pharmaceuticals, Inc.(a)(b)

    1,761       16,377  

Pliant Therapeutics, Inc.(a)

    2,836       41,604  

Prestige Consumer Healthcare, Inc.(a)

    2,718       161,340  

Revance Therapeutics, Inc.(a)(b)

    4,784       37,746  

Scilex Holding Co. (Acquired 01/09/23, cost $19,912)(a)(d)

    3,943       7,310  

SIGA Technologies, Inc.

    2,318       11,822  

Supernus Pharmaceuticals, Inc.(a)

    2,990       71,311  

Tarsus Pharmaceuticals, Inc.(a)(b)

    1,414       20,135  

Terns Pharmaceuticals, Inc.(a)

    2,008       10,562  

Theravance Biopharma, Inc.(a)

    2,011       18,984  

Theseus Pharmaceuticals, Inc.(a)

    1,098       2,525  

Tilray Brands, Inc.(a)(b)

    38,315       68,967  

Ventyx Biosciences, Inc.(a)(b)

    2,568       37,031  
   

 

 

 
          2,407,874  
Professional Services — 2.6%            

Alight, Inc., Class A(a)

    19,622       130,290  

ASGN, Inc.(a)

    2,671       222,922  

Barrett Business Services, Inc.

    375       34,298  

CACI International, Inc., Class A(a)

    1,245       404,326  

CBIZ, Inc.(a)

    2,697       140,136  

Clarivate PLC(a)(b)

    24,099       153,752  

Concentrix Corp.

    2,358       179,703  

Conduent, Inc.(a)

    9,675       30,863  

CRA International, Inc.

    385       37,387  

CSG Systems International, Inc.

    1,699       79,615  

Dun & Bradstreet Holdings, Inc.

    12,677       111,051  

ExlService Holdings, Inc.(a)

    9,014       235,356  

Exponent, Inc.

    2,762       202,427  

First Advantage Corp.

    2,775       36,103  

Forrester Research, Inc.(a)

    642       14,894  

Franklin Covey Co.(a)

    616       24,277  

FTI Consulting, Inc.(a)

    1,861       395,016  

Heidrick & Struggles International, Inc.

    1,105       26,896  

HireRight Holdings Corp.(a)

    647       5,959  

Huron Consulting Group, Inc.(a)

    1,033       102,639  

ICF International, Inc.

    942       119,380  

Insperity, Inc.

    1,979       209,457  

Kelly Services, Inc., Class A, NVS

    1,725       30,791  

Kforce, Inc.

    1,030       62,871  

Korn Ferry

    2,918       132,827  

Legalzoom.com, Inc.(a)(b)

    5,748       57,308  

ManpowerGroup, Inc.

    2,717       190,109  

Maximus, Inc.

    3,332       248,967  

NV5 Global, Inc.(a)(b)

    703       66,328  

Parsons Corp.(a)(b)

    2,244       126,898  

Paycor HCM, Inc.(a)(b)

    3,473       74,947  

Planet Labs PBC, Class A(a)

    10,000       21,600  

Resources Connection, Inc.

    1,735       23,370  

Science Applications International Corp.

    2,953       322,586  

Sterling Check Corp.(a)(b)

    1,622       18,134  

TriNet Group, Inc.(a)

    1,699       174,572  

TrueBlue, Inc.(a)

    1,711       18,941  

TTEC Holdings, Inc.

    1,056       21,732  

Upwork, Inc.(a)

    6,763       70,673  

Verra Mobility Corp., Class A(a)

    9,244       182,754  
   

 

 

 
          4,742,155  
Security   Shares     Value  
Real Estate Management & Development — 0.6%  

Anywhere Real Estate, Inc.(a)

    6,018     $ 28,104  

Compass, Inc., Class A(a)

    17,234       34,123  

Cushman & Wakefield PLC(a)

    9,270       68,320  

DigitalBridge Group, Inc., Class A

    7,786       123,408  

eXp World Holdings, Inc.

    4,171       55,349  

Forestar Group, Inc.(a)

    994       23,608  

FRP Holdings, Inc.(a)

    371       19,956  

Howard Hughes Holdings, Inc.(a)

    1,800       119,394  

Jones Lang LaSalle, Inc.(a)

    2,592                331,569  

Kennedy-Wilson Holdings, Inc.

    6,468       83,243  

Marcus & Millichap, Inc.

    1,312       37,655  

Newmark Group, Inc., Class A

    6,595       37,394  

Opendoor Technologies, Inc.(a)(b)

    30,838       58,592  

Redfin Corp.(a)(b)

    6,273       29,232  

Seritage Growth Properties, Class A(a)

    2,067       14,965  

St. Joe Co. (The)

    1,928       89,922  

Tejon Ranch Co.(a)

    1,335       20,719  
   

 

 

 
          1,175,553  
Residential REITs — 0.4%            

Apartment Income REIT Corp.

    8,218       240,048  

Apartment Investment & Management Co., Class A(a)

    7,400       43,364  

Centerspace

    809       39,301  

Elme Communities

    4,777       60,954  

Independence Realty Trust, Inc.

    12,151       150,551  

NexPoint Residential Trust, Inc.

    1,223       33,009  

UMH Properties, Inc.

    3,115       43,018  

Veris Residential, Inc.

    4,359       58,367  
   

 

 

 
          668,612  
Retail REITs — 1.3%            

Acadia Realty Trust

    5,247       75,137  

Agree Realty Corp.

    5,229       292,510  

Alexander’s, Inc.

    124       23,311  

Brixmor Property Group, Inc.

    16,506       343,160  

CBL & Associates Properties, Inc.

    1,324       27,447  

Getty Realty Corp.

    2,487       66,204  

InvenTrust Properties Corp.

    3,697       92,795  

Kite Realty Group Trust

    12,015       256,160  

Macerich Co. (The)

    11,799       114,686  

NETSTREIT Corp.

    3,554       50,644  

Phillips Edison & Co., Inc.

    6,433       227,149  

Retail Opportunity Investments Corp.

    6,926       81,311  

RPT Realty

    4,394       47,411  

Saul Centers, Inc.

    705       24,513  

SITE Centers Corp.

    9,829       114,606  

Spirit Realty Capital, Inc.

    7,782       280,074  

Tanger Factory Outlet Centers, Inc.

    5,800       130,790  

Urban Edge Properties

    6,398       101,472  

Whitestone REIT

    2,484       24,716  
   

 

 

 
          2,374,096  
Semiconductors & Semiconductor Equipment — 2.4%  

ACM Research, Inc., Class A(a)

    2,518       34,245  

Aehr Test Systems(a)

    1,418       33,408  

Allegro MicroSystems, Inc.(a)

    3,862       100,257  

Alpha & Omega Semiconductor Ltd.(a)

    1,226       29,081  

Ambarella, Inc.(a)

    2,027       91,195  

Amkor Technology, Inc.

    5,601       116,837  

Axcelis Technologies, Inc.(a)

    1,785       227,587  

CEVA, Inc.(a)

    1,257       21,583  

Cirrus Logic, Inc.(a)

    2,974       199,050  

Cohu, Inc.(a)

    2,621       78,997  

Credo Technology Group Holding Ltd.(a)

    6,250       88,875  

 

 

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

  27


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

Diodes, Inc.(a)

    2,515     $ 163,676  

FormFactor, Inc.(a)

    4,254       144,125  

Ichor Holdings Ltd.(a)

    1,588       38,525  

Impinj, Inc.(a)

    1,229       79,406  

indie Semiconductor, Inc., Class A(a)(b)

    6,636       32,450  

Kulicke & Soffa Industries, Inc.

    3,125                130,031  

MACOM Technology Solutions Holdings, Inc.(a)

    2,953       208,305  

Magnachip Semiconductor Corp.(a)(b)

    2,247       16,605  

MaxLinear, Inc.(a)

    4,062       61,742  

MKS Instruments, Inc.

    3,419       224,491  

Navitas Semiconductor Corp.(a)(b)

    6,564       34,395  

Onto Innovation, Inc.(a)

    2,671       300,140  

PDF Solutions, Inc.(a)

    1,638       43,456  

Photronics, Inc.(a)

    3,399       62,406  

Power Integrations, Inc.

    3,112       215,755  

Rambus, Inc.(a)

    5,983       325,056  

Semtech Corp.(a)

    3,549       49,544  

Silicon Laboratories, Inc.(a)

    1,733       159,748  

SiTime Corp.(a)(b)

    930       92,814  

SkyWater Technology, Inc.(a)(b)

    1,017       5,014  

SMART Global Holdings, Inc.(a)

    2,788       38,196  

Synaptics, Inc.(a)

    2,169       181,459  

Ultra Clean Holdings, Inc.(a)

    2,445       58,338  

Universal Display Corp.

    2,382       331,527  

Veeco Instruments, Inc.(a)

    3,057       73,185  

Wolfspeed, Inc.(a)

    6,808       230,383  
   

 

 

 
          4,321,887  
Software — 6.4%            

A10 Networks, Inc.

    3,787       41,165  

ACI Worldwide, Inc.(a)

    5,955       121,303  

Adeia, Inc.

    5,831       49,155  

Agilysys, Inc.(a)

    1,120       96,085  

Alarm.com Holdings, Inc.(a)

    2,725       139,329  

Alkami Technology, Inc.(a)(b)

    2,196       39,418  

Altair Engineering, Inc., Class A(a)(b)

    2,958       183,751  

Alteryx, Inc., Class A(a)

    3,463       110,851  

Amplitude, Inc., Class A(a)(b)

    3,877       38,615  

Appfolio, Inc., Class A(a)

    1,073       201,263  

Appian Corp., Class A(a)(b)

    2,271       89,614  

AppLovin Corp., Class A(a)

    7,385       269,109  

Asana, Inc., Class A(a)(b)

    4,286       79,162  

Aurora Innovation, Inc., Class A(a)(b)

    40,712       71,246  

AvePoint, Inc., Class A(a)(b)

    5,163       38,671  

Blackbaud, Inc.(a)

    2,346       153,428  

BlackLine, Inc.(a)

    2,756       135,320  

Box, Inc., Class A(a)

    7,872       195,698  

Braze, Inc., Class A(a)

    2,578       109,771  

C3.ai, Inc., Class A(a)(b)

    5,005       122,122  

CCC Intelligent Solutions Holdings, Inc.(a)

    11,081       119,342  

Cerence, Inc.(a)

    2,208       33,804  

Cipher Mining, Inc.(a)(b)

    2,347       7,816  

Clear Secure, Inc., Class A

    4,585       77,120  

Clearwater Analytics Holdings, Inc., Class A(a)(b)

    4,792       86,639  

CommVault Systems, Inc.(a)

    2,391       156,252  

Confluent, Inc., Class A(a)(b)

    11,605       335,501  

Consensus Cloud Solutions, Inc.(a)

    959       20,705  

Couchbase, Inc.(a)

    1,603       24,943  

Digital Turbine, Inc.(a)

    4,954       23,482  

Dolby Laboratories, Inc., Class A

    3,255       263,460  

Domo, Inc., Class B(a)

    1,724       14,068  

DoubleVerify Holdings, Inc.(a)

    6,826       189,968  

Dropbox, Inc., Class A(a)

    14,092       370,620  
Security   Shares     Value  
Software (continued)            

E2open Parent Holdings, Inc., Class A(a)

    9,439     $ 27,279  

Ebix, Inc.

    1,329       8,094  

Elastic NV(a)

    4,374       328,225  

Enfusion, Inc., Class A(a)

    1,881       15,612  

EngageSmart, Inc.(a)

    2,452       55,538  

Envestnet, Inc.(a)

    2,734       101,158  

Everbridge, Inc.(a)

    2,218       45,713  

EverCommerce, Inc.(a)

    1,156       11,074  

Expensify, Inc., Class A(a)(b)

    2,544       6,792  

Five9, Inc.(a)

    3,952                228,702  

Freshworks, Inc., Class A(a)(b)

    8,665       155,450  

Gitlab, Inc., Class A(a)

    4,351       188,311  

Guidewire Software, Inc.(a)

    4,452       401,259  

HashiCorp, Inc., Class A(a)

    5,467       107,645  

Informatica, Inc., Class A(a)(b)

    2,117       40,604  

Instructure Holdings, Inc.(a)

    1,029       25,344  

Intapp, Inc.(a)

    1,395       47,709  

InterDigital, Inc.

    1,440       108,360  

Jamf Holding Corp.(a)

    2,804       45,032  

JFrog Ltd.(a)

    4,301       96,730  

LiveRamp Holdings, Inc.(a)

    3,611       99,880  

Marathon Digital Holdings, Inc.(a)(b)

    9,493       83,633  

Matterport, Inc., Class A(a)(b)

    12,901       26,318  

MeridianLink, Inc.(a)

    1,246       20,459  

MicroStrategy, Inc., Class A(a)(b)

    666       281,978  

Mitek Systems, Inc.(a)

    2,522       26,935  

Model N, Inc.(a)(b)

    1,881       45,332  

N-able, Inc.(a)

    3,852       49,922  

nCino, Inc.(a)(b)

    3,307       92,927  

NCR Voyix Corp.(a)(b)

    7,313       111,816  

New Relic, Inc.(a)

    2,949       255,590  

Nutanix, Inc., Class A(a)

    12,866       465,621  

Olo, Inc., Class A(a)

    6,081       31,074  

ON24, Inc.

    2,207       13,573  

OneSpan, Inc.(a)

    1,927       15,223  

PagerDuty, Inc.(a)(b)

    5,023       101,314  

Pegasystems, Inc.

    2,310       98,729  

PowerSchool Holdings, Inc., Class A(a)

    3,116       62,071  

Progress Software Corp.

    2,359       121,205  

PROS Holdings, Inc.(a)

    2,336       72,766  

Q2 Holdings, Inc.(a)(b)

    3,183       95,586  

Qualys, Inc.(a)(b)

    2,010       307,430  

Rapid7, Inc.(a)

    3,345       155,509  

RingCentral, Inc., Class A(a)

    4,616       122,693  

Riot Platforms, Inc.(a)(b)

    9,681       94,680  

Samsara, Inc., Class A(a)(b)

    8,341       192,427  

SEMrush Holdings, Inc., Class A(a)

    1,643       13,275  

SentinelOne, Inc., Class A(a)

    13,067       204,237  

Smartsheet, Inc., Class A(a)

    7,317       289,314  

SolarWinds Corp.(a)

    2,862       26,359  

SoundHound AI, Inc., Class A(a)(b)

    11,119       17,679  

Sprinklr, Inc., Class A(a)

    5,682       77,218  

Sprout Social, Inc., Class A(a)(b)

    2,671       115,601  

SPS Commerce, Inc.(a)

    2,007       321,802  

Tenable Holdings, Inc.(a)

    6,319       266,093  

Teradata Corp.(a)

    5,490       234,533  

UiPath, Inc., Class A(a)(b)

    22,022       342,002  

Varonis Systems, Inc.(a)(b)

    5,975       200,999  

Verint Systems, Inc.(a)

    3,509       66,004  

Vertex, Inc., Class A(a)(b)

    2,271       54,981  

Workiva, Inc., Class A(a)

    2,597       226,173  

Xperi, Inc.(a)

    2,387       20,266  

 

 

28  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Software (continued)            

Yext, Inc.(a)

    5,686     $ 34,287  

Zeta Global Holdings Corp., Class A(a)(b)

    8,154       63,601  

Zuora, Inc., Class A(a)

    7,096       52,581  
   

 

 

 
          11,725,123  
Specialized REITs — 0.6%            

EPR Properties

    4,110       175,497  

Farmland Partners, Inc.

    2,367       24,664  

Four Corners Property Trust, Inc.

    4,901       104,391  

Gladstone Land Corp.

    1,784       24,370  

National Storage Affiliates Trust

    4,539                129,452  

Outfront Media, Inc.

    8,018       78,256  

PotlatchDeltic Corp.

    4,387       187,983  

Rayonier, Inc.

    7,410       187,028  

Safehold, Inc.

    2,455       39,943  

Uniti Group, Inc.

    12,980       59,708  
   

 

 

 
          1,011,292  
Specialty Retail — 2.6%            

Aaron’s Co., Inc. (The)

    1,689       12,516  

Abercrombie & Fitch Co., Class A(a)

    2,728       165,917  

Academy Sports & Outdoors, Inc.

    4,159       186,490  

American Eagle Outfitters, Inc.

    10,164       177,565  

America’s Car-Mart, Inc.(a)

    317       21,233  

Arhaus, Inc., Class A(a)(b)

    2,213       19,076  

Arko Corp., Class A

    3,948       29,807  

Asbury Automotive Group, Inc.(a)

    1,120       214,334  

AutoNation, Inc.(a)

    1,462       190,177  

Beyond, Inc.(a)(b)

    2,480       38,688  

Boot Barn Holdings, Inc.(a)

    1,644       114,258  

Buckle, Inc. (The)

    1,622       54,775  

Caleres, Inc.

    1,861       47,604  

Camping World Holdings, Inc., Class A

    2,272       38,056  

Carvana Co., Class A(a)

    5,222       140,994  

Chewy, Inc., Class A(a)(b)

    6,317       122,108  

Chico’s FAS, Inc.(a)

    6,798       50,849  

Designer Brands, Inc., Class A

    2,699       27,287  

EVgo, Inc., Class A(a)(b)

    5,207       10,752  

Foot Locker, Inc.

    4,470       93,825  

GameStop Corp., Class A(a)(b)

    14,725       202,763  

Gap, Inc. (The)

    11,659       149,235  

Genesco, Inc.(a)

    628       17,214  

Group 1 Automotive, Inc.

    773       195,051  

Guess?, Inc.

    1,509       32,444  

Haverty Furniture Cos., Inc.

    754       19,642  

Hibbett, Inc.

    688       31,696  

Leslie’s, Inc.(a)(b)

    9,982       49,311  

Lithia Motors, Inc., Class A

    1,507       365,010  

MarineMax, Inc.(a)

    1,082       29,625  

Monro, Inc.

    1,727       42,864  

Murphy U.S.A., Inc.

    1,066       386,628  

National Vision Holdings, Inc.(a)

    4,253       66,092  

ODP Corp. (The)(a)

    1,845       82,877  

Petco Health & Wellness Co., Inc.(a)(b)

    4,415       15,276  

Revolve Group, Inc., Class A(a)(b)

    2,224       30,580  

RH(a)

    840       183,086  

Sally Beauty Holdings, Inc.(a)

    5,896       50,116  

Shoe Carnival, Inc.

    986       22,560  

Signet Jewelers Ltd.

    2,473       172,690  

Sleep Number Corp.(a)

    1,149       18,694  

Sonic Automotive, Inc., Class A

    872       41,725  

Upbound Group, Inc.

    2,506       65,306  

Urban Outfitters, Inc.(a)

    3,073       106,387  

Valvoline, Inc.

    7,592       225,255  
Security   Shares     Value  
Specialty Retail (continued)            

Victoria’s Secret & Co.(a)

    4,228     $ 75,597  

Warby Parker, Inc., Class A(a)

    4,090       53,088  

Wayfair, Inc., Class A(a)

    4,949       210,877  

Winmark Corp.

    156       62,918  
   

 

 

 
          4,760,918  
Technology Hardware, Storage & Peripherals — 0.8%  

Avid Technology, Inc.(a)

    1,889       51,041  

Corsair Gaming, Inc.(a)

    2,441       31,220  

CPI Card Group, Inc.(a)

    253       4,187  

IonQ, Inc.(a)(b)

    9,271       89,372  

Pure Storage, Inc., Class A(a)

    15,815                534,705  

Super Micro Computer, Inc.(a)(b)

    2,495       597,478  

Xerox Holdings Corp.

    6,307       80,982  
   

 

 

 
          1,388,985  
Textiles, Apparel & Luxury Goods — 1.4%            

Capri Holdings Ltd.(a)

    6,318       323,355  

Carter’s, Inc.

    2,037       136,805  

Columbia Sportswear Co.

    1,888       139,334  

Crocs, Inc.(a)

    3,375       301,455  

Figs, Inc., Class A(a)

    6,594       36,333  

G-III Apparel Group Ltd.(a)

    2,231       57,002  

Hanesbrands, Inc.

    19,010       79,652  

Kontoor Brands, Inc.

    2,717       126,205  

Levi Strauss & Co., Class A

    5,519       75,445  

Movado Group, Inc.

    854       23,793  

Oxford Industries, Inc.

    810       68,364  

PVH Corp.

    3,413       253,757  

Ralph Lauren Corp., Class A

    2,217       249,479  

Skechers U.S.A., Inc., Class A(a)

    7,351       354,465  

Steven Madden Ltd.

    3,846       126,110  

Under Armour, Inc., Class A(a)

    10,371       71,041  

Under Armour, Inc., Class C, NVS(a)

    10,733       69,013  

Wolverine World Wide, Inc.

    4,339       34,929  
   

 

 

 
          2,526,537  
Tobacco — 0.1%            

Turning Point Brands, Inc.

    963       19,308  

Universal Corp.

    1,375       61,875  

Vector Group Ltd.

    7,292       74,962  
   

 

 

 
          156,145  
Trading Companies & Distributors — 1.9%            

Air Lease Corp., Class A

    5,601       193,963  

Alta Equipment Group, Inc., Class A

    1,251       11,497  

Applied Industrial Technologies, Inc.

    2,114       324,520  

Beacon Roofing Supply, Inc.(a)

    2,880       204,970  

BlueLinx Holdings, Inc.(a)

    501       35,626  

Boise Cascade Co.

    2,152       201,750  

Core & Main, Inc., Class A(a)(b)

    5,724       172,178  

Custom Truck One Source, Inc.(a)(b)

    3,190       18,406  

Distribution Solutions Group, Inc.(a)(b)

    613       18,482  

DXP Enterprises, Inc.(a)

    740       24,124  

FTAI Aviation Ltd.

    5,438       204,523  

GATX Corp.

    1,918       200,584  

Global Industrial Co.

    702       22,429  

GMS, Inc.(a)

    2,217       129,650  

H&E Equipment Services, Inc.

    1,740       70,853  

Herc Holdings, Inc.

    1,535       163,923  

McGrath RentCorp

    1,327       133,496  

MRC Global, Inc.(a)

    4,580       48,136  

MSC Industrial Direct Co., Inc., Class A

    2,594       245,782  

NOW, Inc.(a)

    5,871       64,698  

Rush Enterprises, Inc., Class A

    3,377       120,154  

 

 

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

  29


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Trading Companies & Distributors (continued)            

Rush Enterprises, Inc., Class B

    517     $ 20,907  

SiteOne Landscape Supply, Inc.(a)(b)

    2,452       337,812  

Titan Machinery, Inc.(a)

    1,105       27,448  

Transcat, Inc.(a)

    433       38,979  

Veritiv Corp.

    739       125,194  

WESCO International, Inc.

    2,417                309,859  

Xometry, Inc., Class A(a)

    2,222       32,330  
   

 

 

 
                3,502,273  
Water Utilities — 0.3%            

American States Water Co.

    1,998       155,944  

Artesian Resources Corp., Class A, NVS

    499       19,611  

California Water Service Group

    3,138       152,758  

Middlesex Water Co.

    960       60,989  

SJW Group

    1,557       97,281  

York Water Co. (The)

    785       28,315  
   

 

 

 
          514,898  
Wireless Telecommunication Services — 0.1%            

Gogo, Inc.(a)

    3,362       35,301  

Shenandoah Telecommunications Co.

    2,755       65,183  

Telephone & Data Systems, Inc.

    5,420       98,590  

United States Cellular Corp.(a)

    770       32,363  
   

 

 

 
          231,437  
   

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $215,595,667)

      181,809,902  
   

 

 

 
Security   Shares     Value  
Short-Term Securities            
Money Market Funds — 12.2%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 5.54%(e)(f)(g)

    21,680,834     $ 21,689,507  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.33%(e)(f)

    520,027       520,027  
   

 

 

 

Total Short-Term Securities — 12.2%
(Cost: $22,197,385)

 

    22,209,534  
   

 

 

 

Total Investments — 111.8%
(Cost: $237,793,052)

 

    204,019,436  

Liabilities in Excess of Other Assets — (11.8)%

 

    (21,565,510
   

 

 

 

Net Assets — 100.0%

 

  $   182,453,926  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(d) 

Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $7,310, representing 0.0% of its net assets as of period end, and an original cost of $19,912.

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

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

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 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
04/30/23
    Purchases
at Cost
    Proceeds
from Sale
    Net
Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/23
    Shares
Held at
10/31/23
    Income     Capital
Gain
Distributions
from Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $     24,584,128     $     $     (2,896,634 )(a)    $ 327     $ 1,686     $ 21,689,507       21,680,834     $ 196,463 (b)    $  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    345,266       174,761 (a)                        520,027       520,027       11,755        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 327     $ 1,686     $     22,209,534       $     208,218     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 

Long Contracts

           

Russell 2000 E-Mini Index

     7        12/15/23      $ 584      $ (32,771
           

 

 

 

 

 

30  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Small-Cap ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 32,771      $      $      $      $     32,771  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, 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 October 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

   $      $      $ (16,118    $      $      $      $     (16,118)  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $ (31,563    $      $      $      $ (31,563
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 616,650  

 

 

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

   $ 181,633,285      $ 176,617      $      $ 181,809,902  

Short-Term Securities

           

Money Market Funds

     22,209,534                      22,209,534  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $     203,842,819      $  176,617      $      $     204,019,436  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative Financial Instruments(a)

           

Liabilities

           

Equity Contracts

   $ (32,771    $                     —      $                     —      $ (32,771
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  31


Schedule of Investments (unaudited)

October 31, 2023

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 1.6%        

Axon Enterprise, Inc.(a)

    1,365     $ 279,129  

Boeing Co. (The)(a)

    11,062       2,066,603  

General Dynamics Corp.

    4,419       1,066,349  

HEICO Corp.

    763       120,867  

HEICO Corp., Class A

    1,480       188,152  

Howmet Aerospace, Inc.

    7,634       336,659  

Huntington Ingalls Industries, Inc.

    779       171,240  

L3Harris Technologies, Inc.

    3,706       664,893  

Lockheed Martin Corp.

    4,368       1,985,868  

Northrop Grumman Corp.

    2,773       1,307,275  

RTX Corp.

    28,364       2,308,546  

Textron, Inc.

    3,862       293,512  

TransDigm Group, Inc.(a)

    1,077       891,853  
   

 

 

 
      11,680,946  
Air Freight & Logistics — 0.5%            

CH Robinson Worldwide, Inc.

    2,277       186,327  

Expeditors International of Washington, Inc.

    2,884       315,077  

FedEx Corp.

    4,521       1,085,492  

United Parcel Service, Inc., Class B

    14,095       1,990,919  
   

 

 

 
      3,577,815  
Automobile Components — 0.1%            

Aptiv PLC(a)

    5,512       480,646  

BorgWarner, Inc.

    4,609       170,072  

Lear Corp.

    1,134       147,148  
   

 

 

 
      797,866  
Automobiles — 1.7%            

Ford Motor Co.

    76,313       744,052  

General Motors Co.

    26,702       752,996  

Lucid Group, Inc.(a)(b)

    17,281       71,198  

Tesla, Inc.(a)

    53,812       10,807,602  
   

 

 

 
          12,375,848  
Banks — 2.8%            

Bank of America Corp.

    134,737       3,548,973  

Citigroup, Inc.

    37,540       1,482,455  

Citizens Financial Group, Inc.

    9,204       215,650  

East West Bancorp, Inc.

    2,809       150,619  

Fifth Third Bancorp

    13,254       314,252  

First Citizens BancShares, Inc., Class A

    235       324,474  

First Horizon Corp.

    11,085       119,164  

Huntington Bancshares, Inc.

    28,394       274,002  

JPMorgan Chase & Co.

    56,338       7,834,362  

KeyCorp

    18,662       190,726  

M&T Bank Corp.

    3,214       362,378  

PNC Financial Services Group, Inc. (The)

    7,754       887,600  

Regions Financial Corp.

    18,440       267,933  

Truist Financial Corp.

    25,862       733,446  

U.S. Bancorp

    30,358       967,813  

Wells Fargo & Co.

    71,384       2,838,942  
   

 

 

 
      20,512,789  
Beverages — 1.6%            

Brown-Forman Corp., Class A

    1,084       62,243  

Brown-Forman Corp., Class B, NVS

    3,523       197,852  

Coca-Cola Co. (The)

    75,843       4,284,371  

Constellation Brands, Inc., Class A

    3,153       738,275  

Keurig Dr Pepper, Inc.

    19,608       594,711  

Molson Coors Beverage Co., Class B

    3,627       209,532  
Security   Shares     Value  
Beverages (continued)            

Monster Beverage Corp.(a)

    14,495     $ 740,694  

PepsiCo, Inc.

    26,826       4,380,149  
   

 

 

 
          11,207,827  
Biotechnology — 2.3%            

AbbVie, Inc.

    34,396       4,856,027  

Alnylam Pharmaceuticals, Inc.(a)

    2,416       366,749  

Amgen, Inc.

    10,435       2,668,230  

Apellis Pharmaceuticals, Inc.(a)

    1,920       93,427  

Biogen, Inc.(a)

    2,812       667,962  

BioMarin Pharmaceutical, Inc.(a)(b)

    3,648       297,130  

Exact Sciences Corp.(a)

    3,502       215,688  

Gilead Sciences, Inc.

    24,280       1,906,951  

Incyte Corp.(a)

    3,579       193,015  

Karuna Therapeutics, Inc.(a)

    697       116,127  

Moderna, Inc.(a)

    6,503       493,968  

Neurocrine Biosciences, Inc.(a)

    1,872       207,680  

Regeneron Pharmaceuticals, Inc.(a)

    2,082       1,623,731  

Sarepta Therapeutics, Inc.(a)

    1,810       121,831  

Seagen, Inc.(a)

    2,743       583,738  

United Therapeutics Corp.(a)

    920       205,031  

Vertex Pharmaceuticals, Inc.(a)

    5,023       1,818,879  
   

 

 

 
      16,436,164  
Broadline Retail — 3.5%            

Amazon.com, Inc.(a)

    176,938       23,548,678  

Coupang, Inc., Class A(a)

    22,267       378,539  

eBay, Inc.

    10,295       403,873  

Etsy, Inc.(a)

    2,394       149,146  

MercadoLibre, Inc.(a)

    901       1,117,907  
   

 

 

 
      25,598,143  
Building Products — 0.5%            

A O Smith Corp.

    2,489       173,633  

Allegion PLC

    1,737       170,851  

Builders FirstSource, Inc.(a)

    2,426       263,270  

Carlisle Cos., Inc.

    972       246,975  

Carrier Global Corp.

    16,350       779,241  

Fortune Brands Innovations, Inc.

    2,449       136,654  

Johnson Controls International PLC

    13,338       653,829  

Lennox International, Inc.

    630       233,440  

Masco Corp.

    4,326       225,341  

Owens Corning

    1,751       198,511  

Trane Technologies PLC

    4,448       846,499  
   

 

 

 
      3,928,244  
Capital Markets — 2.8%            

Ameriprise Financial, Inc.

    2,000       629,140  

Ares Management Corp., Class A

    3,216       317,065  

Bank of New York Mellon Corp. (The)

    15,185       645,363  

BlackRock, Inc.(c)

    2,735       1,674,586  

Blackstone, Inc., Class A, NVS

    13,844       1,278,493  

Carlyle Group, Inc. (The)

    4,158       114,511  

Charles Schwab Corp. (The)

    28,989       1,508,588  

CME Group, Inc., Class A

    7,016       1,497,635  

Coinbase Global, Inc., Class A(a)(b)

    3,328       256,655  

FactSet Research Systems, Inc.

    741       320,030  

Franklin Resources, Inc.

    5,508       125,527  

Goldman Sachs Group, Inc. (The)

    6,423       1,950,087  

Interactive Brokers Group, Inc., Class A

    2,086       167,026  

Intercontinental Exchange, Inc.

    11,158       1,198,816  

Invesco Ltd.

    8,694       112,761  

KKR & Co., Inc., Class A

    12,617       698,982  

LPL Financial Holdings, Inc.

    1,487       333,861  

MarketAxess Holdings, Inc.

    727       155,396  

 

 

32  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Capital Markets (continued)            

Moody’s Corp.

    3,088     $ 951,104  

Morgan Stanley

    24,858       1,760,444  

Morningstar, Inc.

    511       129,406  

MSCI, Inc., Class A

    1,535       723,829  

Nasdaq, Inc.

    6,643       329,493  

Northern Trust Corp.

    4,105       270,561  

Raymond James Financial, Inc.

    3,662       349,501  

S&P Global, Inc.

    6,341       2,214,975  

SEI Investments Co.

    2,026       108,715  

State Street Corp.

    6,209       401,288  

T Rowe Price Group, Inc.

    4,418       399,829  
   

 

 

 
          20,623,667  
Chemicals — 1.6%            

Air Products & Chemicals, Inc.

    4,338       1,225,225  

Albemarle Corp.

    2,290       290,326  

Celanese Corp., Class A

    1,967       225,241  

CF Industries Holdings, Inc.

    3,734       297,898  

Corteva, Inc.

    13,835       666,017  

Dow, Inc.

    13,734       663,902  

DuPont de Nemours, Inc.

    8,963       653,223  

Eastman Chemical Co.

    2,270       169,637  

Ecolab, Inc.

    4,943       829,139  

FMC Corp.

    2,424       128,957  

International Flavors & Fragrances, Inc.

    4,933       337,171  

Linde PLC

    9,510       3,634,342  

LyondellBasell Industries NV, Class A

    4,967       448,222  

Mosaic Co. (The)

    6,414       208,327  

Olin Corp.

    2,385       101,887  

PPG Industries, Inc.

    4,584       562,778  

RPM International, Inc.

    2,483       226,623  

Sherwin-Williams Co. (The)

    4,612       1,098,624  

Westlake Corp.

    640       73,830  
   

 

 

 
      11,841,369  
Commercial Services & Supplies — 0.5%            

Cintas Corp.

    1,677       850,440  

Copart, Inc.(a)

    16,938       737,142  

Republic Services, Inc.

    4,018       596,633  

Rollins, Inc.

    5,463       205,463  

Tetra Tech, Inc.

    1,018       153,626  

Waste Management, Inc.

    7,202       1,183,505  
   

 

 

 
      3,726,809  
Communications Equipment — 0.9%            

Arista Networks, Inc.(a)

    4,890       979,809  

Cisco Systems, Inc.

    79,412       4,139,747  

F5, Inc.(a)

    1,179       178,725  

Juniper Networks, Inc.

    6,222       167,496  

Motorola Solutions, Inc.

    3,256       906,666  
   

 

 

 
      6,372,443  
Construction & Engineering — 0.1%            

AECOM

    2,709       207,374  

EMCOR Group, Inc.

    921       190,325  

Quanta Services, Inc.

    2,820       471,278  

WillScot Mobile Mini Holdings Corp.(a)

    3,847       151,610  
   

 

 

 
      1,020,587  
Construction Materials — 0.1%            

Martin Marietta Materials, Inc.

    1,204       492,364  

Vulcan Materials Co.

    2,587       508,319  
   

 

 

 
      1,000,683  
Consumer Finance — 0.4%            

Ally Financial, Inc.

    5,375       130,021  
Security   Shares     Value  
Consumer Finance (continued)            

American Express Co.

    11,342     $ 1,656,272  

Capital One Financial Corp.

    7,430       752,585  

Discover Financial Services

    4,844       397,595  

Synchrony Financial

    8,152       228,664  
   

 

 

 
      3,165,137  
Consumer Staples Distribution & Retail — 1.9%        

Albertsons Cos., Inc., Class A

    7,855       170,453  

BJ’s Wholesale Club Holdings, Inc.(a)

    2,573       175,273  

Casey’s General Stores, Inc.

    741       201,485  

Costco Wholesale Corp.

    8,636       4,770,872  

Dollar General Corp.

    4,254       506,396  

Dollar Tree, Inc.(a)

    4,052       450,137  

Kroger Co. (The)

    12,794       580,464  

Performance Food Group Co.(a)

    3,072       177,439  

Sysco Corp.

    9,802       651,735  

Target Corp.

    8,957       992,346  

U.S. Foods Holding Corp.(a)

    4,420       172,115  

Walgreens Boots Alliance, Inc.

    13,977       294,635  

Walmart, Inc.

    27,812       4,544,759  
   

 

 

 
          13,688,109  
Containers & Packaging — 0.2%            

Amcor PLC

    29,077       258,495  

Avery Dennison Corp.

    1,578       274,682  

Ball Corp.

    6,119       294,630  

Crown Holdings, Inc.

    2,315       186,589  

International Paper Co.

    6,869       231,691  

Packaging Corp. of America

    1,761       269,521  

Westrock Co.

    4,914       176,560  
   

 

 

 
      1,692,168  
Distributors — 0.1%            

Genuine Parts Co.

    2,764       356,169  

LKQ Corp.

    5,214       228,999  

Pool Corp.

    753       237,775  
   

 

 

 
      822,943  
Diversified Consumer Services — 0.0%            

Service Corp. International

    2,895       157,546  
   

 

 

 
Diversified REITs — 0.0%            

WP Carey, Inc.

    4,181       224,311  
   

 

 

 
Diversified Telecommunication Services — 0.7%        

AT&T Inc.

    139,315       2,145,451  

Verizon Communications, Inc.

    81,828       2,874,618  
   

 

 

 
      5,020,069  
Electric Utilities — 1.6%            

Alliant Energy Corp.

    4,907       239,413  

American Electric Power Co., Inc.

    9,995       755,022  

Avangrid, Inc.

    1,327       39,637  

Constellation Energy Corp.

    6,268       707,783  

Duke Energy Corp.

    15,041       1,336,994  

Edison International

    7,505       473,265  

Entergy Corp.

    4,108       392,684  

Evergy, Inc.

    4,472       219,754  

Eversource Energy

    6,750       363,083  

Exelon Corp.

    19,414       755,981  

FirstEnergy Corp.

    10,058       358,065  

NextEra Energy, Inc.

    39,437       2,299,177  

NRG Energy, Inc.

    4,514       191,303  

OGE Energy Corp.

    3,814       130,439  

PG&E Corp.(a)

    40,760       664,388  

Pinnacle West Capital Corp.

    2,234       165,718  

 

 

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

  33


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Electric Utilities (continued)            

PPL Corp.

    14,407     $ 353,980  

Southern Co. (The)

    21,275       1,431,808  

Xcel Energy, Inc.

    10,815       641,005  
   

 

 

 
          11,519,499  
Electrical Equipment — 0.6%            

AMETEK, Inc.

    4,474       629,805  

Eaton Corp. PLC

    7,779       1,617,332  

Emerson Electric Co.

    11,098       987,389  

Hubbell, Inc.

    1,045       282,254  

Regal Rexnord Corp.

    1,277       151,210  

Rockwell Automation, Inc.

    2,238       588,169  
   

 

 

 
      4,256,159  
Electronic Equipment, Instruments & Components — 0.6%  

Amphenol Corp., Class A

    11,594       933,897  

CDW Corp.

    2,602       521,441  

Cognex Corp.

    3,292       118,479  

Corning, Inc.

    14,910       398,992  

Flex Ltd.(a)

    8,694       223,610  

Jabil, Inc.

    2,540       311,912  

Keysight Technologies, Inc.(a)

    3,472       423,757  

TD SYNNEX Corp.

    931       85,354  

TE Connectivity Ltd.

    6,139       723,481  

Teledyne Technologies, Inc.(a)

    929       347,994  

Trimble, Inc.(a)

    4,842       228,203  

Zebra Technologies Corp., Class A(a)

    995       208,383  
   

 

 

 
      4,525,503  
Energy Equipment & Services — 0.4%            

Baker Hughes Co., Class A

    19,659       676,663  

Halliburton Co.

    17,591       692,030  

Schlumberger NV

    27,686       1,541,003  
   

 

 

 
      2,909,696  
Entertainment — 1.1%            

Electronic Arts, Inc.

    4,805       594,811  

Liberty Media Corp. - Liberty Formula One, Class A(a)

    491       28,257  

Liberty Media Corp. - Liberty Formula One, Class C(a)

    4,088       264,453  

Live Nation Entertainment, Inc.(a)

    2,807       224,616  

Netflix, Inc.(a)

    8,639       3,556,590  

ROBLOX Corp., Class A(a)

    9,390       298,696  

Take-Two Interactive Software, Inc.(a)

    3,094       413,822  

Walt Disney Co. (The)(a)

    35,674       2,910,642  
   

 

 

 
      8,291,887  
Financial Services — 4.3%            

Apollo Global Management, Inc.

    8,506       658,705  

Berkshire Hathaway, Inc., Class B(a)

    35,539       12,130,527  

Block, Inc., Class A(a)

    10,674       429,628  

Equitable Holdings, Inc.

    6,428       170,792  

Fidelity National Information Services, Inc.

    11,579       568,645  

Fiserv, Inc.(a)

    11,885       1,351,919  

FleetCor Technologies, Inc.(a)

    1,461       328,973  

Global Payments, Inc.

    5,094       541,085  

Jack Henry & Associates, Inc.

    1,430       201,616  

Mastercard, Inc., Class A

    16,214       6,102,139  

PayPal Holdings, Inc.(a)

    21,402       1,108,623  

Visa, Inc., Class A

    31,312       7,361,451  

WEX, Inc.(a)

    842       140,176  
   

 

 

 
      31,094,279  
Food Products — 0.9%            

Archer-Daniels-Midland Co.

    10,451       747,978  

Bunge Ltd.

    2,971       314,867  

Campbell Soup Co.

    3,902       157,680  
Security   Shares     Value  
Food Products (continued)            

Conagra Brands, Inc.

    9,259     $ 253,326  

Darling Ingredients, Inc.(a)

    3,056       135,350  

General Mills, Inc.

    11,352       740,604  

Hershey Co. (The)

    2,919       546,875  

Hormel Foods Corp.

    5,554       180,783  

J M Smucker Co. (The)

    1,990       226,542  

Kellanova

    5,140       259,416  

Kraft Heinz Co. (The)

    15,676       493,167  

Lamb Weston Holdings, Inc.

    2,844       255,391  

McCormick & Co., Inc., NVS

    4,877       311,640  

Mondelez International, Inc., Class A

    26,522       1,756,022  

Tyson Foods, Inc., Class A

    5,558       257,613  
   

 

 

 
      6,637,254  
Gas Utilities — 0.1%            

Atmos Energy Corp.

    2,903       312,537  
   

 

 

 
Ground Transportation — 1.0%            

Avis Budget Group, Inc.(a)

    383       62,352  

CSX Corp.

    39,108       1,167,374  

JB Hunt Transport Services, Inc.

    1,610       276,711  

Knight-Swift Transportation Holdings, Inc.

    3,140       153,515  

Norfolk Southern Corp.

    4,418       842,910  

Old Dominion Freight Line, Inc.

    1,742       656,142  

Uber Technologies, Inc.(a)

    39,825       1,723,626  

U-Haul Holding Co.(a)

    187       9,185  

U-Haul Holding Co., NVS

    1,925       90,879  

Union Pacific Corp.

    11,864       2,463,085  
   

 

 

 
      7,445,779  
Health Care Equipment & Supplies — 2.4%            

Abbott Laboratories

    33,838       3,199,383  

Align Technology, Inc.(a)

    1,376       253,996  

Baxter International, Inc.

    9,883       320,506  

Becton Dickinson & Co.

    5,657       1,429,977  

Boston Scientific Corp.(a)

    28,551       1,461,526  

Cooper Cos., Inc. (The)

    964       300,527  

DENTSPLY SIRONA, Inc.

    4,084       124,194  

Dexcom, Inc.(a)

    7,528       668,712  

Edwards Lifesciences Corp.(a)

    11,875       756,675  

GE HealthCare Technologies, Inc.

    7,609       506,531  

Hologic, Inc.(a)

    4,769       315,565  

IDEXX Laboratories, Inc.(a)

    1,621       647,541  

Insulet Corp.(a)

    1,367       181,223  

Intuitive Surgical, Inc.(a)

    6,855       1,797,518  

Masimo Corp.(a)

    867       70,340  

Medtronic PLC

    25,938       1,830,185  

Penumbra, Inc.(a)

    743       142,025  

ResMed, Inc.

    2,855       403,183  

Shockwave Medical, Inc.(a)(b)

    717       147,888  

STERIS PLC

    1,914       401,902  

Stryker Corp.

    6,588       1,780,209  

Teleflex, Inc.

    903       166,829  

Zimmer Biomet Holdings, Inc.

    4,047       422,547  
   

 

 

 
          17,328,982  
Health Care Providers & Services — 3.0%            

agilon health, Inc.(a)(b)

    6,057       109,026  

Cardinal Health, Inc.

    4,980       453,180  

Cencora, Inc.

    3,249       601,552  

Centene Corp.(a)

    10,541       727,118  

Chemed Corp.

    299       168,232  

Cigna Group (The)

    5,769       1,783,775  

CVS Health Corp.

    25,012       1,726,078  

DaVita, Inc.(a)

    1,073       82,868  

 

 

34  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Providers & Services (continued)            

Elevance Health, Inc.

    4,592     $ 2,066,813  

HCA Healthcare, Inc.

    3,924       887,373  

Henry Schein, Inc.(a)

    2,544       165,309  

Humana, Inc.

    2,413       1,263,664  

Laboratory Corp. of America Holdings

    1,721       343,735  

McKesson Corp.

    2,635       1,199,874  

Molina Healthcare, Inc.(a)

    1,132       376,900  

Quest Diagnostics, Inc.

    2,197       285,830  

UnitedHealth Group, Inc.

    18,051       9,667,394  

Universal Health Services, Inc., Class B

    1,222       153,838  
   

 

 

 
          22,062,559  
Health Care REITs — 0.2%            

Healthpeak Properties, Inc.

    10,688       166,198  

Ventas, Inc.

    7,860       333,736  

Welltower, Inc.

    10,111       845,381  
   

 

 

 
      1,345,315  
Health Care Technology — 0.1%            

Veeva Systems, Inc., Class A(a)

    2,831       545,562  
   

 

 

 
Hotel & Resort REITs — 0.0%            

Host Hotels & Resorts, Inc.

    13,894       215,079  
   

 

 

 
Hotels, Restaurants & Leisure — 2.1%            

Airbnb, Inc., Class A(a)(b)

    8,312       983,226  

Aramark

    5,085       136,939  

Booking Holdings, Inc.(a)

    695       1,938,744  

Caesars Entertainment, Inc.(a)

    4,190       167,139  

Carnival Corp.(a)

    19,799       226,897  

Chipotle Mexican Grill, Inc.(a)

    537       1,042,961  

Churchill Downs, Inc.(b)

    1,348       148,064  

Darden Restaurants, Inc.

    2,344       341,122  

Domino’s Pizza, Inc.

    686       232,547  

DoorDash, Inc., Class A(a)

    5,848       438,308  

DraftKings, Inc., Class A(a)

    8,966       247,641  

Expedia Group, Inc.(a)

    2,685       255,854  

Hilton Worldwide Holdings, Inc.

    5,098       772,500  

Las Vegas Sands Corp.

    6,426       304,978  

Marriott International, Inc., Class A

    4,885       921,116  

McDonald’s Corp.

    14,203       3,723,601  

MGM Resorts International

    5,470       191,012  

Royal Caribbean Cruises Ltd.(a)

    4,595       389,334  

Starbucks Corp.

    22,321       2,058,889  

Vail Resorts, Inc.

    751       159,400  

Wynn Resorts Ltd.

    1,890       165,904  

Yum! Brands, Inc.

    5,474       661,588  
   

 

 

 
      15,507,764  
Household Durables — 0.3%            

DR Horton, Inc.

    5,933       619,405  

Garmin Ltd.

    3,020       309,640  

Lennar Corp., Class A

    4,925       525,399  

Lennar Corp., Class B(b)

    229       22,582  

NVR, Inc.(a)

    65       351,820  

PulteGroup, Inc.

    4,259       313,420  

Whirlpool Corp.

    1,078       112,716  
   

 

 

 
      2,254,982  
Household Products — 1.3%            

Church & Dwight Co., Inc.

    4,811       437,512  

Clorox Co. (The)

    2,414       284,128  

Colgate-Palmolive Co.

    16,144       1,212,737  

Kimberly-Clark Corp.

    6,587       788,069  

Procter & Gamble Co. (The)

    45,938       6,892,078  
   

 

 

 
      9,614,524  
Security   Shares     Value  
Independent Power and Renewable Electricity Producers — 0.1%  

AES Corp. (The)

    13,267     $ 197,678  

Vistra Corp.

    6,809       222,791  
   

 

 

 
      420,469  
Industrial Conglomerates — 0.8%            

3M Co.

    10,792       981,532  

General Electric Co.

    21,190       2,301,870  

Honeywell International, Inc.

    12,926       2,368,819  
   

 

 

 
      5,652,221  
Industrial REITs — 0.3%            

Americold Realty Trust, Inc.

    4,950       129,789  

Prologis, Inc.

    18,004       1,813,903  

Rexford Industrial Realty, Inc.

    4,059       175,511  
   

 

 

 
      2,119,203  
Insurance — 2.4%            

Aflac, Inc.

    10,536       822,967  

Allstate Corp. (The)

    5,091       652,310  

American Financial Group, Inc.

    1,291       141,184  

American International Group, Inc.

    13,755       843,319  

Aon PLC, Class A

    3,954       1,223,368  

Arch Capital Group Ltd.(a)

    7,318       634,324  

Arthur J. Gallagher & Co.

    4,192       987,174  

Brown & Brown, Inc.

    4,591       318,707  

Chubb Ltd.

    8,004       1,717,818  

Cincinnati Financial Corp.

    3,054       304,392  

Erie Indemnity Co., Class A, NVS

    500       138,095  

Everest Group Ltd.

    854       337,859  

Fidelity National Financial, Inc., Class A

    5,120       200,141  

Globe Life, Inc.

    1,694       197,114  

Hartford Financial Services Group, Inc. (The)

    5,959       437,689  

Kinsale Capital Group, Inc.

    430       143,581  

Loews Corp.

    3,588       229,668  

Markel Group, Inc.(a)

    260       382,335  

Marsh & McLennan Cos., Inc.

    9,611       1,822,726  

MetLife, Inc.

    12,312       738,843  

Old Republic International Corp.

    5,094       139,474  

Principal Financial Group, Inc.

    4,400       297,792  

Progressive Corp. (The)

    11,407       1,803,333  

Prudential Financial, Inc.

    7,021       642,000  

Reinsurance Group of America, Inc.

    1,306       195,208  

RenaissanceRe Holdings Ltd.

    1,010       221,786  

Travelers Cos., Inc. (The)

    4,461       746,950  

Unum Group.

    3,596       175,844  

W. R. Berkley Corp.

    4,016       270,759  

Willis Towers Watson PLC

    2,033       479,564  
   

 

 

 
          17,246,324  
Interactive Media & Services — 5.6%            

Alphabet, Inc., Class A(a)

    115,619       14,346,006  

Alphabet, Inc., Class C, NVS(a)

    98,350       12,323,255  

Match Group, Inc.(a)

    5,424       187,670  

Meta Platforms, Inc., Class A(a)

    43,312       13,048,606  

Pinterest, Inc., Class A(a)

    11,342       338,899  

Snap, Inc., Class A, NVS(a)(b)

    19,616       196,356  

ZoomInfo Technologies, Inc., Class A(a)

    5,946       77,060  
   

 

 

 
      40,517,852  
IT Services — 1.5%            

Accenture PLC, Class A

    12,293       3,652,127  

Akamai Technologies, Inc.(a)

    2,954       305,237  

Cloudflare, Inc., Class A(a)(b)

    5,761       326,591  

Cognizant Technology Solutions Corp., Class A

    9,801       631,870  

EPAM Systems, Inc.(a)

    1,122       244,114  

 

 

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

  35


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
IT Services (continued)            

Gartner, Inc.(a)

    1,538     $ 510,677  

GoDaddy, Inc., Class A(a)

    2,863       209,657  

International Business Machines Corp.

    17,734       2,565,046  

MongoDB, Inc., Class A(a)

    1,383       476,568  

Okta, Inc., Class A(a)

    2,977       200,680  

Snowflake, Inc., Class A(a)

    6,349       921,430  

Twilio, Inc., Class A(a)

    3,530       180,948  

VeriSign, Inc.(a)

    1,754       350,204  
   

 

 

 
          10,575,149  
Leisure Products — 0.0%            

Hasbro, Inc.

    2,552       115,223  
   

 

 

 
Life Sciences Tools & Services — 1.3%            

Agilent Technologies, Inc.

    5,783       597,789  

Avantor, Inc.(a)(b)

    13,263       231,174  

Bio-Rad Laboratories, Inc., Class A(a)

    415       114,241  

Bio-Techne Corp.

    3,077       168,096  

Bruker Corp.

    1,931       110,067  

Charles River Laboratories International, Inc.(a)(b)

    1,006       169,370  

Danaher Corp.

    12,788       2,455,552  

Illumina, Inc.(a)

    3,071       336,029  

IQVIA Holdings, Inc.(a)

    3,570       645,563  

Mettler-Toledo International, Inc.(a)

    427       420,680  

Repligen Corp.(a)

    1,031       138,731  

Revvity, Inc.

    2,414       200,000  

Thermo Fisher Scientific, Inc.

    7,523       3,346,005  

Waters Corp.(a)(b)

    1,152       274,787  

West Pharmaceutical Services, Inc.

    1,431       455,473  
   

 

 

 
      9,663,557  
Machinery — 1.7%            

AGCO Corp.

    1,203       137,936  

Caterpillar, Inc.

    9,928       2,244,224  

Cummins, Inc.

    2,763       597,637  

Deere & Co.

    5,314       1,941,523  

Dover Corp.

    2,755       358,012  

Fortive Corp.

    6,882       449,257  

Graco, Inc.

    3,321       246,916  

IDEX Corp.

    1,492       285,584  

Illinois Tool Works, Inc.

    5,373       1,204,197  

Ingersoll Rand, Inc.

    7,900       479,372  

Lincoln Electric Holdings, Inc.

    1,132       197,874  

Middleby Corp. (The)(a)

    1,056       119,191  

Nordson Corp.

    1,041       221,306  

Otis Worldwide Corp.

    8,055       621,927  

PACCAR, Inc.

    10,168       839,165  

Parker-Hannifin Corp.

    2,498       921,537  

Pentair PLC

    3,202       186,100  

Snap-on, Inc.

    1,034       266,710  

Stanley Black & Decker, Inc.

    2,973       252,854  

Toro Co. (The)

    2,016       162,974  

Westinghouse Air Brake Technologies Corp.

    3,467       367,571  

Xylem, Inc.

    4,680       437,767  
   

 

 

 
      12,539,634  
Media — 0.9%            

Charter Communications, Inc., Class A(a)

    1,983       798,752  

Comcast Corp., Class A

    80,213       3,311,995  

Fox Corp., Class A, NVS

    4,943       150,218  

Fox Corp., Class B

    2,698       75,301  

Interpublic Group of Cos., Inc. (The)

    7,474       212,262  

Liberty Broadband Corp., Class A(a)

    334       27,829  

Liberty Broadband Corp., Class C, NVS(a)

    2,213       184,365  

Liberty Media Corp. - Liberty SiriusXM, NVS(a)

    3,001       73,674  
Security   Shares     Value  
Media (continued)            

Liberty Media Corp. - Liberty SiriusXM, Class A(a)

    1,396     $ 34,188  

News Corp., Class A, NVS

    7,484       154,769  

News Corp., Class B

    2,349       50,363  

Omnicom Group, Inc.

    3,849       288,329  

Paramount Global, Class B, NVS

    9,097       98,975  

Sirius XM Holdings, Inc.(b)

    13,442       57,532  

Trade Desk, Inc. (The), Class A(a)

    8,647       613,591  
   

 

 

 
            6,132,143  
Metals & Mining — 0.5%            

Cleveland-Cliffs, Inc.(a)

    9,923       166,508  

Freeport-McMoRan, Inc.

    27,835       940,266  

Newmont Corp.

    22,447       841,089  

Nucor Corp.

    4,849       716,634  

Reliance Steel & Aluminum Co.

    1,155       293,809  

Royal Gold, Inc.

    1,276       133,125  

Southern Copper Corp.

    1,638       116,134  

Steel Dynamics, Inc.

    3,035       323,258  
   

 

 

 
      3,530,823  
Mortgage Real Estate Investment Trusts (REITs) — 0.0%  

Annaly Capital Management, Inc.

    9,591       149,716  
   

 

 

 
Multi-Utilities — 0.7%            

Ameren Corp.

    5,101       386,197  

CenterPoint Energy, Inc.

    12,316       331,054  

CMS Energy Corp.

    5,643       306,641  

Consolidated Edison, Inc.

    6,728       590,651  

Dominion Energy, Inc.

    16,235       654,595  

DTE Energy Co.

    4,002       385,713  

NiSource, Inc.

    7,956       200,173  

Public Service Enterprise Group, Inc.

    9,787       603,368  

Sempra

    12,222       855,907  

WEC Energy Group, Inc.

    6,108       497,130  
   

 

 

 
      4,811,429  
Office REITs — 0.1%            

Alexandria Real Estate Equities, Inc.

    3,048       283,860  

Boston Properties, Inc.

    2,873       153,907  
   

 

 

 
      437,767  
Oil, Gas & Consumable Fuels — 4.1%            

APA Corp.

    5,991       237,962  

Cheniere Energy, Inc.

    4,669       777,015  

Chesapeake Energy Corp.

    2,192       188,687  

Chevron Corp.

    34,576       5,038,760  

ConocoPhillips

    23,304       2,768,515  

Coterra Energy, Inc.

    14,711       404,552  

Devon Energy Corp.

    12,549       584,407  

Diamondback Energy, Inc.

    3,485       558,715  

EOG Resources, Inc.

    11,320       1,429,150  

EQT Corp.

    7,094       300,644  

Exxon Mobil Corp.

    77,552       8,208,879  

Hess Corp.

    5,407       780,771  

HF Sinclair Corp.

    2,836       157,058  

Kinder Morgan, Inc.

    37,784       612,101  

Marathon Oil Corp.

    11,805       322,395  

Marathon Petroleum Corp.

    7,796       1,179,145  

Occidental Petroleum Corp.

    12,934       799,451  

ONEOK, Inc.

    11,349       739,955  

Ovintiv, Inc.

    4,936       236,928  

Phillips 66

    8,685       990,698  

Pioneer Natural Resources Co.

    4,539       1,084,821  

Targa Resources Corp.

    4,334       362,366  

Texas Pacific Land Corp.

    124       228,898  

 

 

36  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)            

Valero Energy Corp.

    6,890     $ 875,030  

Williams Cos., Inc. (The)

    23,745       816,828  
   

 

 

 
      29,683,731  
Passenger Airlines — 0.1%            

American Airlines Group, Inc.(a)

    12,638       140,914  

Delta Air Lines, Inc.

    12,482       390,062  

Southwest Airlines Co.

    11,581       257,446  

United Airlines Holdings, Inc.(a)

    6,398       223,994  
   

 

 

 
      1,012,416  
Personal Care Products — 0.2%            

Coty, Inc., Class A(a)

    7,122       66,733  

Estee Lauder Cos., Inc. (The), Class A

    4,528       583,523  

Kenvue, Inc.

    33,593       624,830  
   

 

 

 
      1,275,086  
Pharmaceuticals — 3.9%            

Bristol-Myers Squibb Co.

    40,677       2,096,086  

Catalent, Inc.(a)

    3,495       120,193  

Eli Lilly & Co.

    15,539       8,607,518  

Jazz Pharmaceuticals PLC(a)

    1,257       159,664  

Johnson & Johnson

    46,926       6,961,003  

Merck & Co., Inc.

    49,450       5,078,515  

Pfizer, Inc.

    110,042       3,362,883  

Royalty Pharma PLC, Class A

    7,525       202,197  

Viatris, Inc.

    23,221       206,667  

Zoetis, Inc., Class A

    8,978       1,409,546  
   

 

 

 
          28,204,272  
Professional Services — 0.9%            

Automatic Data Processing, Inc.

    8,022       1,750,561  

Booz Allen Hamilton Holding Corp., Class A

    2,562       307,260  

Broadridge Financial Solutions, Inc.

    2,321       396,055  

Ceridian HCM Holding, Inc.(a)(b)

    3,042       194,718  

Equifax, Inc.

    2,384       404,255  

Genpact Ltd.

    3,195       107,160  

Jacobs Solutions, Inc.

    2,433       324,319  

KBR, Inc.

    2,638       153,400  

Leidos Holdings, Inc.

    2,665       264,155  

Paychex, Inc.

    6,256       694,729  

Paycom Software, Inc.

    974       238,601  

Paylocity Holding Corp.(a)

    852       152,849  

Robert Half, Inc.

    2,077       155,297  

SS&C Technologies Holdings, Inc.

    4,180       210,045  

TransUnion

    3,800       166,744  

Verisk Analytics, Inc.

    2,813       639,564  
   

 

 

 
      6,159,712  
Real Estate Management & Development — 0.2%        

CBRE Group, Inc., Class A(a)

    6,032       418,259  

CoStar Group, Inc.(a)

    7,936       582,582  

Zillow Group, Inc., Class A(a)

    964       34,251  

Zillow Group, Inc., Class C, NVS(a)(b)

    3,017       109,366  
   

 

 

 
      1,144,458  
Residential REITs — 0.4%            

American Homes 4 Rent, Class A

    6,240       204,298  

AvalonBay Communities, Inc.

    2,757       456,945  

Camden Property Trust

    2,059       174,768  

Equity LifeStyle Properties, Inc.

    3,632       238,985  

Equity Residential

    6,727       372,205  

Essex Property Trust, Inc.

    1,238       264,833  

Invitation Homes, Inc.

    11,343       336,774  

Mid-America Apartment Communities, Inc.

    2,272       268,437  
Security   Shares     Value  
Residential REITs (continued)            

Sun Communities, Inc.

    2,417     $ 268,867  

UDR, Inc.

    5,967       189,810  
   

 

 

 
      2,775,922  
Retail REITs — 0.3%            

Federal Realty Investment Trust

    1,408       128,395  

Kimco Realty Corp.

    12,069       216,518  

NNN REIT, Inc.

    3,672       133,404  

Realty Income Corp.

    13,815       654,555  

Regency Centers Corp.

    3,196       192,591  

Simon Property Group, Inc.

    6,397       702,966  
   

 

 

 
      2,028,429  
Semiconductors & Semiconductor Equipment — 6.9%        

Advanced Micro Devices, Inc.(a)

    31,499       3,102,651  

Analog Devices, Inc.

    9,773       1,537,586  

Applied Materials, Inc.

    16,350       2,163,923  

Broadcom, Inc.

    8,042       6,766,298  

Enphase Energy, Inc.(a)

    2,674       212,797  

Entegris, Inc.

    2,908       256,020  

First Solar, Inc.(a)(b)

    2,083       296,723  

Intel Corp.

    81,695       2,981,868  

KLA Corp.

    2,657       1,247,993  

Lam Research Corp.

    2,598       1,528,196  

Lattice Semiconductor Corp.(a)

    2,671       148,534  

Marvell Technology, Inc.

    16,814       793,957  

Microchip Technology, Inc.

    10,638       758,383  

Micron Technology, Inc.

    21,365       1,428,678  

Monolithic Power Systems, Inc.

    930       410,818  

NVIDIA Corp.

    48,134           19,629,045  

NXP Semiconductors NV

    5,024       866,288  

ON Semiconductor Corp.(a)

    8,447       529,120  

Qorvo, Inc.(a)

    1,898       165,923  

QUALCOMM, Inc.

    21,765       2,372,167  

Skyworks Solutions, Inc.

    3,075       266,726  

SolarEdge Technologies, Inc.(a)(b)

    1,110       84,305  

Teradyne, Inc.

    2,983       248,394  

Texas Instruments, Inc.

    17,670       2,509,317  
   

 

 

 
      50,305,710  
Software — 11.1%            

Adobe, Inc.(a)

    8,882       4,725,757  

ANSYS, Inc.(a)

    1,681       467,755  

Aspen Technology, Inc.(a)

    559       99,362  

Atlassian Corp., Class A(a)

    2,948       532,527  

Autodesk, Inc.(a)

    4,158       821,745  

Bentley Systems, Inc., Class B(b)

    4,473       217,567  

BILL Holdings, Inc.(a)

    1,878       171,443  

Cadence Design Systems, Inc.(a)

    5,305       1,272,404  

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

    4,354       769,657  

Datadog, Inc., Class A(a)

    5,830       474,970  

DocuSign, Inc.(a)

    4,002       155,598  

Dynatrace, Inc.(a)

    4,632       207,097  

Fair Isaac Corp.(a)

    489       413,630  

Fortinet, Inc.(a)

    12,657       723,601  

Gen Digital, Inc.

    10,781       179,611  

HubSpot, Inc.(a)

    980       415,295  

Intuit, Inc.

    5,465       2,704,902  

Manhattan Associates, Inc.(a)

    1,192       232,416  

Microsoft Corp.

    144,787       48,953,933  

Oracle Corp.

    30,694       3,173,760  

Palantir Technologies, Inc., Class A(a)

    37,111       549,243  

Palo Alto Networks, Inc.(a)(b)

    5,957       1,447,670  

Procore Technologies, Inc.(a)

    1,720       105,075  

 

 

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

  37


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Software (continued)            

PTC, Inc.(a)

    2,317     $ 325,353  

Roper Technologies, Inc.

    2,087       1,019,646  

Salesforce, Inc.(a)

    18,981       3,811,954  

ServiceNow, Inc.(a)

    3,970       2,309,944  

Splunk, Inc.(a)

    2,977       438,095  

Synopsys, Inc.(a)

    2,969       1,393,767  

Tyler Technologies, Inc.(a)

    817       304,659  

Unity Software, Inc.(a)(b)

    4,707       119,417  

VMware, Inc., Class A(a)(b)

    4,278       623,091  

Workday, Inc., Class A(a)

    3,995       845,781  

Zoom Video Communications, Inc., Class A(a)

    4,892       293,422  

Zscaler, Inc.(a)

    1,710       271,360  
   

 

 

 
      80,571,507  
Specialized REITs — 1.1%            

American Tower Corp.

    9,091       1,619,925  

Crown Castle, Inc.

    8,429       783,729  

CubeSmart

    4,373       149,076  

Digital Realty Trust, Inc.

    5,903       734,097  

Equinix, Inc.

    1,827             1,333,052  

Extra Space Storage, Inc.

    4,119       426,687  

Gaming & Leisure Properties, Inc.

    5,185       235,347  

Iron Mountain, Inc.

    5,654       333,982  

Lamar Advertising Co., Class A

    1,701       139,941  

Public Storage

    3,074       733,795  

SBA Communications Corp.

    2,106       439,375  

VICI Properties, Inc.

    19,656       548,402  

Weyerhaeuser Co.

    14,157       406,164  
   

 

 

 
      7,883,572  
Specialty Retail — 2.0%            

Advance Auto Parts, Inc.

    1,122       58,378  

AutoZone, Inc.(a)

    356       881,858  

Bath & Body Works, Inc.

    4,360       129,274  

Best Buy Co., Inc.

    3,767       251,711  

Burlington Stores, Inc.(a)

    1,252       151,530  

CarMax, Inc.(a)(b)

    3,101       189,440  

Dick’s Sporting Goods, Inc.

    1,193       127,591  

Five Below, Inc.(a)

    1,086       188,942  

Floor & Decor Holdings, Inc., Class A(a)(b)

    2,078       171,227  

Home Depot, Inc. (The)

    19,592       5,577,647  

Lowe’s Cos., Inc.

    11,410       2,174,404  

O’Reilly Automotive, Inc.(a)

    1,176       1,094,197  

Penske Automotive Group, Inc.

    378       54,084  

Ross Stores, Inc.

    6,610       766,562  

TJX Cos., Inc. (The)

    22,388       1,971,711  

Tractor Supply Co.

    2,105       405,339  

Ulta Beauty, Inc.(a)

    978       372,921  

Williams-Sonoma, Inc.

    1,264       189,903  
   

 

 

 
      14,756,719  
Technology Hardware, Storage & Peripherals — 7.0%        

Apple Inc.

    286,390       48,906,820  

Dell Technologies, Inc., Class C

    4,970       332,543  

Hewlett Packard Enterprise Co.

    25,171       387,130  

HP, Inc.

    16,972       446,873  
Security   Shares     Value  
Technology Hardware, Storage & Peripherals (continued)  

NetApp, Inc.

    4,085     $ 297,306  

Seagate Technology Holdings PLC

    3,769       257,234  

Western Digital Corp.(a)

    6,317       253,628  
   

 

 

 
      50,881,534  
Textiles, Apparel & Luxury Goods — 0.5%            

Deckers Outdoor Corp.(a)

    516       308,083  

Lululemon Athletica, Inc.(a)(b)

    2,258       888,478  

NIKE, Inc., Class B

    23,874       2,453,531  

Tapestry, Inc.

    4,568       125,894  

VF Corp.

    6,332       93,270  
   

 

 

 
      3,869,256  
Tobacco — 0.6%            

Altria Group, Inc.

    34,593       1,389,601  

Philip Morris International, Inc.

    30,288       2,700,478  
   

 

 

 
      4,090,079  
Trading Companies & Distributors — 0.4%            

Fastenal Co.

    11,115       648,449  

Ferguson PLC

    3,976       597,195  

United Rentals, Inc.

    1,331       540,745  

Watsco, Inc.

    648       226,081  

WW Grainger, Inc.

    867       632,763  
   

 

 

 
      2,645,233  
Water Utilities — 0.1%            

American Water Works Co., Inc.

    3,780       444,717  

Essential Utilities, Inc.

    4,849       162,248  
   

 

 

 
      606,965  
Wireless Telecommunication Services — 0.2%        

T-Mobile U.S., Inc.(a)

    10,090       1,451,547  
   

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $641,377,416)

      724,596,501  
   

 

 

 
Short-Term Securities  
Money Market Funds — 0.9%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 5.54%(c)(d)(e)

    5,463,513       5,465,698  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 5.33%(c)(d)

    635,394       635,394  
   

 

 

 

Total Short-Term Securities — 0.9%
(Cost: $6,097,665)

 

    6,101,092  
   

 

 

 

Total Investments — 100.7%
(Cost: $647,475,081)

 

    730,697,593  

Liabilities in Excess of Other Assets — (0.7)%

 

    (4,881,526
   

 

 

 

Net Assets — 100.0%

 

  $   725,816,067  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

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

 

 

38  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

 

  

iShares® Morningstar U.S. Equity ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 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
04/30/23
    Purchases
at Cost
    Proceeds
from Sale
    Net
Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/23
    Shares
Held at
10/31/23
    Income     Capital
Gain
Distributions
from Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $   5,530,618     $       $ (66,279 )(a)    $ 1,218     $ 141     $ 5,465,698       5,463,513     $ 19,682 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    1,674,057             (1,038,663 )(a)                  635,394       635,394       41,656        

BlackRock, Inc.

    2,014,942       21,431       (205,205     39,511       (196,093     1,674,586       2,735       29,615        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 40,729     $ (195,952   $  7,775,678       $  90,953     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 
Long Contracts                             

S&P 500 E-Mini Index

     5          12/15/23        $  1,053   $ (40,782
              

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 40,782      $      $      $      $    40,782  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, 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 October 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

   $      $      $ 137,375     $      $      $      $ 137,375  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                   

Futures contracts

   $      $      $   (153,905   $      $      $      $   (153,905
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — long

   $ 1,218,706  

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

 

 

 

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

  39


Schedule of Investments (unaudited) (continued)

October 31, 2023

 

  

iShares® Morningstar U.S. Equity 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

   $ 724,596,501     $      $      $ 724,596,501  

Short-Term Securities

          

Money Market Funds

     6,101,092                     6,101,092  
  

 

 

   

 

 

    

 

 

    

 

 

 
   $         730,697,593     $                   —      $                   —      $         730,697,593  
  

 

 

   

 

 

    

 

 

    

 

 

 

Derivative Financial Instruments(a)

          

Liabilities

          

Equity Contracts

   $ (40,782   $      $      $ (40,782
  

 

 

   

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

40  

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


Schedule of Investments (unaudited)

October 31, 2023

  

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks            
Aerospace & Defense — 2.8%            

Boeing Co. (The)(a)

    25,428     $ 4,750,459  

General Dynamics Corp.

    10,164       2,452,675  

Huntington Ingalls Industries, Inc.

    863       189,705  

L3Harris Technologies, Inc.

    8,500       1,524,985  

Lockheed Martin Corp.

    10,051       4,569,586  

Northrop Grumman Corp.

    6,379       3,007,252  

RTX Corp.

    65,274       5,312,651  

Textron, Inc.

    5,948       452,048  
   

 

 

 
      22,259,361  
Air Freight & Logistics — 1.0%            

CH Robinson Worldwide, Inc.

    3,632       297,207  

Expeditors International of Washington, Inc.

    3,972       433,941  

FedEx Corp.

    10,381       2,492,478  

United Parcel Service, Inc., Class B

    32,436       4,581,585  
   

 

 

 
      7,805,211  
Automobile Components — 0.1%            

BorgWarner, Inc.

    6,447       237,894  

Lear Corp.

    1,651       214,234  
   

 

 

 
      452,128  
Automobiles — 0.5%            

Ford Motor Co.

    176,307       1,718,993  

General Motors Co.

    61,704       1,740,053  

Rivian Automotive, Inc., Class A(a)(b)

    29,956       485,886  
   

 

 

 
      3,944,932  
Banks — 5.9%            

Bank of America Corp.

    310,038       8,166,401  

Citigroup, Inc.

    86,361       3,410,396  

Citizens Financial Group, Inc.

    21,192       496,529  

East West Bancorp, Inc.

    6,306       338,128  

Fifth Third Bancorp

    30,459       722,183  

First Horizon Corp.

    25,070       269,502  

Huntington Bancshares, Inc.

    64,790       625,223  

JPMorgan Chase & Co.

    129,667       18,031,493  

KeyCorp

    42,295       432,255  

M&T Bank Corp.

    7,425       837,169  

PNC Financial Services Group, Inc. (The)

    17,861       2,044,549  

Regions Financial Corp.

    42,095       611,640  

Truist Financial Corp.

    59,734       1,694,056  

U.S. Bancorp

    69,824       2,225,989  

Wells Fargo & Co.

    164,083       6,525,581  
   

 

 

 
          46,431,094  
Beverages — 2.1%            

Coca-Cola Co. (The)

    110,501       6,242,202  

Constellation Brands, Inc., Class A

    7,223       1,691,266  

Keurig Dr Pepper, Inc.

    45,125       1,368,641  

Molson Coors Beverage Co., Class B

    8,274       477,989  

PepsiCo, Inc.

    41,969       6,852,698  
   

 

 

 
      16,632,796  
Biotechnology — 3.5%            

AbbVie, Inc.

    79,156       11,175,244  

Amgen, Inc.

    23,988       6,133,732  

Biogen, Inc.(a)

    6,512       1,546,860  

Gilead Sciences, Inc.

    55,879       4,388,737  

Karuna Therapeutics, Inc.(a)

    723       120,459  

Moderna, Inc.(a)

    14,850       1,128,006  

Regeneron Pharmaceuticals, Inc.(a)

    3,065       2,390,363  

United Therapeutics Corp.(a)

    2,111       470,457  
   

 

 

 
      27,353,858  
Security   Shares     Value  
Broadline Retail — 0.1%            

Coupang, Inc., Class A(a)

    16,605     $ 282,285  

eBay, Inc.

    13,582       532,822  
   

 

 

 
      815,107  
Building Products — 0.7%            

A O Smith Corp.

    2,467       172,098  

Allegion PLC

    1,503       147,835  

Builders FirstSource, Inc.(a)

    2,563       278,137  

Carlisle Cos., Inc.

    801       203,526  

Carrier Global Corp.

    23,849       1,136,643  

Fortune Brands Innovations, Inc.

    5,654       315,493  

Johnson Controls International PLC

    20,168       988,635  

Lennox International, Inc.

    762       282,352  

Masco Corp.

    10,066       524,338  

Owens Corning

    4,058       460,055  

Trane Technologies PLC

    3,386       644,390  
   

 

 

 
      5,153,502  
Capital Markets — 4.2%            

Ameriprise Financial, Inc.

    2,729       858,462  

Bank of New York Mellon Corp. (The)

    34,925       1,484,312  

BlackRock, Inc.(c)

    6,293       3,853,078  

Blackstone, Inc., Class A, NVS

    22,777       2,103,456  

Carlyle Group, Inc. (The)

    9,595       264,246  

Charles Schwab Corp. (The)

    42,331       2,202,905  

CME Group, Inc., Class A

    16,133       3,443,750  

Coinbase Global, Inc., Class A(a)(b)

    7,591       585,418  

Franklin Resources, Inc.

    12,797       291,644  

Goldman Sachs Group, Inc. (The)

    14,784       4,488,570  

Intercontinental Exchange, Inc.

    12,834       1,378,885  

Invesco Ltd.

    19,938       258,596  

KKR & Co., Inc., Class A

    28,983       1,605,658  

Moody’s Corp.

    2,149       661,892  

Morgan Stanley

    57,218       4,052,179  

Nasdaq, Inc.

    9,179       455,278  

Northern Trust Corp.

    9,227       608,152  

Raymond James Financial, Inc.

    3,848       367,253  

S&P Global, Inc.

    5,700       1,991,067  

SEI Investments Co.

    2,201       118,106  

State Street Corp.

    14,298       924,080  

T Rowe Price Group, Inc.

    10,066       910,973  
   

 

 

 
          32,907,960  
Chemicals — 2.2%            

Air Products & Chemicals, Inc.

    5,855       1,653,686  

Albemarle Corp.

    2,475       313,781  

Celanese Corp., Class A

    4,527       518,387  

CF Industries Holdings, Inc.

    8,695       693,687  

Corteva, Inc.

    18,372       884,428  

Dow, Inc.

    31,531       1,524,209  

DuPont de Nemours, Inc.

    11,324       825,293  

Eastman Chemical Co.

    5,274       394,126  

Ecolab, Inc.

    3,988       668,947  

FMC Corp.

    3,317       176,464  

International Flavors & Fragrances, Inc.

    11,411       779,942  

Linde PLC

    11,815       4,515,220  

LyondellBasell Industries NV, Class A

    11,492       1,037,038  

Mosaic Co. (The)

    14,953       485,674  

Olin Corp.

    3,362       143,625  

PPG Industries, Inc.

    4,059       498,323  

RPM International, Inc.

    2,868       261,762  

Sherwin-Williams Co. (The)

    6,745       1,606,727  

Westlake Corp.

    579       66,793  
   

 

 

 
      17,048,112  

 

 

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

  41


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Commercial Services & Supplies — 0.3%            

Cintas Corp.

    930     $ 471,622  

Republic Services, Inc.

    4,317       641,031  

Waste Management, Inc.

    9,051       1,487,351  
   

 

 

 
      2,600,004  
Communications Equipment — 1.4%            

Cisco Systems, Inc.

    182,751       9,526,810  

F5, Inc.(a)

    1,782       270,133  

Juniper Networks, Inc.

    14,588       392,709  

Motorola Solutions, Inc.

    3,193       889,123  
   

 

 

 
          11,078,775  
Construction & Engineering — 0.1%            

AECOM

    3,041       232,789  

EMCOR Group, Inc.

    896       185,158  

Quanta Services, Inc.

    2,295       383,540  
   

 

 

 
      801,487  
Consumer Finance — 0.9%            

Ally Financial, Inc.

    12,132       293,473  

American Express Co.

    26,092       3,810,215  

Capital One Financial Corp.

    17,091       1,731,147  

Discover Financial Services

    4,324       354,914  

Synchrony Financial

    18,764       526,330  
   

 

 

 
      6,716,079  
Consumer Staples Distribution & Retail — 2.1%  

Albertsons Cos., Inc., Class A

    18,082       392,380  

BJ’s Wholesale Club Holdings, Inc.(a)

    2,978       202,861  

Casey’s General Stores, Inc.

    607       165,049  

Dollar General Corp.

    6,746       803,044  

Kroger Co. (The)

    29,616       1,343,678  

Target Corp.

    20,722       2,295,790  

U.S. Foods Holding Corp.(a)

    3,687       143,572  

Walgreens Boots Alliance, Inc.

    32,116       677,005  

Walmart, Inc.

    64,005       10,459,057  
   

 

 

 
      16,482,436  
Containers & Packaging — 0.4%            

Amcor PLC

    65,513       582,411  

Avery Dennison Corp.

    2,121       369,202  

Ball Corp.

    7,877       379,277  

Crown Holdings, Inc.

    3,608       290,805  

International Paper Co.

    15,638       527,470  

Packaging Corp. of America

    4,049       619,699  

Westrock Co.

    11,459       411,722  
   

 

 

 
      3,180,586  
Distributors — 0.1%            

Genuine Parts Co.

    3,349       431,552  

LKQ Corp.

    8,352       366,820  

Pool Corp.

    691       218,197  
   

 

 

 
      1,016,569  
Diversified Consumer Services — 0.0%            

Service Corp. International

    4,065       221,217  
   

 

 

 
Diversified REITs — 0.1%            

WP Carey, Inc.

    9,615       515,845  
   

 

 

 
Diversified Telecommunication Services — 1.5%  

AT&T Inc.

    320,606       4,937,332  

Verizon Communications, Inc.

    188,535       6,623,235  
   

 

 

 
      11,560,567  
Electric Utilities — 2.9%            

Alliant Energy Corp.

    11,362       554,352  

American Electric Power Co., Inc.

    23,104       1,745,276  
Security   Shares     Value  
Electric Utilities (continued)            

Avangrid, Inc.

    3,061     $ 91,432  

Duke Energy Corp.

    34,564       3,072,394  

Edison International

    17,181       1,083,434  

Entergy Corp.

    9,469       905,142  

Evergy, Inc.

    10,398       510,958  

Eversource Energy

    15,688       843,857  

Exelon Corp.

    44,550       1,734,777  

FirstEnergy Corp.

    23,154       824,282  

NextEra Energy, Inc.

    55,209       3,218,685  

NRG Energy, Inc.

    6,980       295,812  

OGE Energy Corp.

    9,033       308,929  

PG&E Corp.(a)

    93,785       1,528,695  

Pinnacle West Capital Corp.

    5,072       376,241  

PPL Corp.

    33,066       812,432  

Southern Co. (The)

    48,907       3,291,441  

Xcel Energy, Inc.

    24,734       1,465,984  
   

 

 

 
          22,664,123  
Electrical Equipment — 0.8%            

Eaton Corp. PLC

    17,894       3,720,342  

Emerson Electric Co.

    25,645       2,281,636  

Regal Rexnord Corp.

    2,969       351,559  
   

 

 

 
      6,353,537  
Electronic Equipment, Instruments & Components — 0.6%  

Amphenol Corp., Class A

    11,303       910,457  

Corning, Inc.

    34,470       922,417  

Flex Ltd.(a)

    13,180       338,990  

Jabil, Inc.

    2,474       303,807  

Keysight Technologies, Inc.(a)

    3,187       388,973  

TD SYNNEX Corp.

    2,146       196,745  

TE Connectivity Ltd.

    6,815       803,148  

Teledyne Technologies, Inc.(a)

    899       336,757  

Trimble, Inc.(a)

    6,064       285,796  

Zebra Technologies Corp., Class A(a)

    970       203,147  
   

 

 

 
      4,690,237  
Energy Equipment & Services — 0.4%            

Baker Hughes Co., Class A

    19,076       656,596  

Halliburton Co.

    14,441       568,109  

Schlumberger NV

    33,588       1,869,508  
   

 

 

 
      3,094,213  
Entertainment — 0.6%            

Electronic Arts, Inc.

    6,181       765,146  

Liberty Media Corp. - Liberty Formula One, Class A(a)

    298       17,150  

Liberty Media Corp. - Liberty Formula One, Class C(a)

    2,929       189,477  

Walt Disney Co. (The)(a)

    34,782       2,837,863  

Warner Bros Discovery, Inc., Class A(a)

    58,799       584,462  
   

 

 

 
      4,394,098  
Financial Services — 4.6%            

Apollo Global Management, Inc.

    19,637       1,520,689  

Berkshire Hathaway, Inc., Class B(a)

    81,785       27,915,674  

Equitable Holdings, Inc.

    14,651       389,277  

Fidelity National Information Services, Inc.

    26,570       1,304,853  

Fiserv, Inc.(a)

    14,386       1,636,407  

FleetCor Technologies, Inc.(a)

    1,447       325,821  

Global Payments, Inc.

    7,799       828,410  

PayPal Holdings, Inc.(a)

    33,617       1,741,361  

WEX, Inc.(a)(b)

    883       147,002  
   

 

 

 
      35,809,494  
Food Products — 1.6%            

Archer-Daniels-Midland Co.

    24,043       1,720,758  

Bunge Ltd.

    6,768       717,273  

 

 

42  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Food Products (continued)            

Campbell Soup Co.

    8,770     $ 354,396  

Conagra Brands, Inc.

    21,595       590,839  

Darling Ingredients, Inc.(a)

    2,464       109,131  

General Mills, Inc.

    26,243       1,712,093  

Hormel Foods Corp.

    8,777       285,691  

J M Smucker Co. (The)

    4,581       521,501  

Kellanova

    11,810       596,051  

Kraft Heinz Co. (The)

    35,703       1,123,216  

McCormick & Co., Inc., NVS

    4,650       297,135  

Mondelez International, Inc., Class A

    61,010       4,039,472  

Tyson Foods, Inc., Class A

    12,770       591,889  
   

 

 

 
          12,659,445  
Gas Utilities — 0.1%            

Atmos Energy Corp.

    4,326       465,737  
   

 

 

 
Ground Transportation — 1.4%            

Avis Budget Group, Inc.(a)

    887       144,404  

CSX Corp.

    64,324       1,920,071  

Knight-Swift Transportation Holdings, Inc.

    5,078       248,263  

Norfolk Southern Corp.

    10,181       1,942,433  

Uber Technologies, Inc.(a)

    28,546       1,235,471  

U-Haul Holding Co.(a)

    273       13,410  

U-Haul Holding Co., NVS

    4,434       209,329  

Union Pacific Corp.

    27,332       5,674,397  
   

 

 

 
      11,387,778  
Health Care Equipment & Supplies — 2.7%            

Abbott Laboratories

    77,825       7,358,354  

Baxter International, Inc.

    22,736       737,328  

Becton Dickinson & Co.

    13,010       3,288,668  

Boston Scientific Corp.(a)

    28,047       1,435,726  

Cooper Cos., Inc. (The)

    711       221,654  

DENTSPLY SIRONA, Inc.

    9,456       287,557  

GE HealthCare Technologies, Inc.

    10,836       721,353  

Hologic, Inc.(a)

    7,165       474,108  

Medtronic PLC

    59,698       4,212,291  

Stryker Corp.

    4,481       1,210,856  

Teleflex, Inc.

    1,094       202,116  

Zimmer Biomet Holdings, Inc.

    9,384       979,783  
   

 

 

 
      21,129,794  
Health Care Providers & Services — 4.5%            

Cardinal Health, Inc.

    11,387       1,036,217  

Cencora, Inc.

    7,476       1,384,181  

Centene Corp.(a)

    24,284       1,675,110  

Chemed Corp.

    253       142,350  

Cigna Group (The)

    13,273       4,104,012  

CVS Health Corp.

    57,600       3,974,976  

DaVita, Inc.(a)

    2,417       186,665  

Elevance Health, Inc.

    7,200       3,240,648  

HCA Healthcare, Inc.

    9,005       2,036,391  

Henry Schein, Inc.(a)

    5,924       384,942  

Humana, Inc.

    2,996       1,568,975  

Laboratory Corp. of America Holdings

    3,970       792,928  

McKesson Corp.

    6,050       2,754,928  

Molina Healthcare, Inc.(a)

    1,139       379,230  

Quest Diagnostics, Inc.

    5,030       654,403  

UnitedHealth Group, Inc.

    20,216       10,826,881  

Universal Health Services, Inc., Class B

    2,821       355,136  
   

 

 

 
      35,497,973  
Health Care REITs — 0.3%            

Healthcare Realty Trust, Inc.

    16,898       242,486  

Healthpeak Properties, Inc.

    13,729       213,486  
Security   Shares     Value  
Health Care REITs (continued)            

Ventas, Inc.

    18,115     $ 769,163  

Welltower, Inc.

    9,799       819,295  
   

 

 

 
      2,044,430  
Hotels, Restaurants & Leisure — 0.9%            

Aramark

    6,657       179,273  

Carnival Corp.(a)(b)

    45,325       519,425  

Darden Restaurants, Inc.

    2,642       384,490  

Domino’s Pizza, Inc.

    662       224,411  

Expedia Group, Inc.(a)

    6,185       589,369  

McDonald’s Corp.

    19,147       5,019,769  

Royal Caribbean Cruises Ltd.(a)

    3,790       321,127  
   

 

 

 
      7,237,864  
Household Durables — 0.7%            

DR Horton, Inc.

    13,654       1,425,477  

Garmin Ltd.

    6,822       699,460  

Lennar Corp., Class A

    11,324       1,208,044  

Lennar Corp., Class B

    636       62,716  

NVR, Inc.(a)

    147       795,655  

PulteGroup, Inc.

    9,852       725,009  

Whirlpool Corp.

    2,455       256,695  
   

 

 

 
      5,173,056  
Household Products — 2.7%            

Church & Dwight Co., Inc.

    3,939       358,213  

Clorox Co. (The)

    1,851       217,863  

Colgate-Palmolive Co.

    37,078       2,785,299  

Kimberly-Clark Corp.

    15,166       1,814,460  

Procter & Gamble Co. (The)

    105,717       15,860,722  
   

 

 

 
          21,036,557  
Independent Power and Renewable Electricity Producers — 0.1%  

AES Corp. (The)

    30,331       451,932  

Vistra Corp.

    10,363       339,077  
   

 

 

 
      791,009  
Industrial Conglomerates — 1.3%            

3M Co.

    24,754       2,251,376  

General Electric Co.

    22,779       2,474,483  

Honeywell International, Inc.

    29,777       5,456,933  
   

 

 

 
      10,182,792  
Industrial REITs — 0.3%            

Americold Realty Trust, Inc.

    5,891       154,462  

Prologis, Inc.

    19,092       1,923,519  
   

 

 

 
      2,077,981  
Insurance — 3.6%            

Aflac, Inc.

    24,243       1,893,621  

Allstate Corp. (The)

    11,731       1,503,093  

American Financial Group, Inc.

    2,001       218,829  

American International Group, Inc.

    31,925       1,957,322  

Aon PLC, Class A

    4,189       1,296,077  

Arch Capital Group Ltd.(a)

    7,814       677,317  

Arthur J. Gallagher & Co.

    3,882       914,172  

Chubb Ltd.

    18,420       3,953,300  

Cincinnati Financial Corp.

    3,937       392,401  

Everest Group Ltd.

    1,948       770,668  

Fidelity National Financial, Inc., Class A

    11,555       451,685  

Globe Life, Inc.

    3,902       454,037  

Hartford Financial Services Group, Inc. (The)

    13,721       1,007,807  

Loews Corp.

    8,297       531,091  

Markel Group, Inc.(a)

    327       480,860  

Marsh & McLennan Cos., Inc.

    9,511       1,803,761  

MetLife, Inc.

    28,290       1,697,683  

 

 

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

  43


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Insurance (continued)            

Old Republic International Corp.

    11,878     $ 325,220  

Principal Financial Group, Inc.

    9,984       675,717  

Progressive Corp. (The)

    10,635       1,681,287  

Prudential Financial, Inc.

    16,278       1,488,460  

Reinsurance Group of America, Inc.

    2,995       447,663  

RenaissanceRe Holdings Ltd.

    1,151       252,748  

Travelers Cos., Inc. (The)

    10,254       1,716,930  

Unum Group

    8,196       400,784  

W. R. Berkley Corp.

    4,950       333,729  

Willis Towers Watson PLC

    2,292       540,660  
   

 

 

 
          27,866,922  
Interactive Media & Services — 5.2%            

Alphabet, Inc., Class A(a)

    104,002       12,904,568  

Alphabet, Inc., Class C, NVS(a)

    88,468       11,085,041  

Meta Platforms, Inc., Class A(a)

    56,668       17,072,368  
   

 

 

 
      41,061,977  
IT Services — 1.5%            

Accenture PLC, Class A

    13,049       3,876,727  

Akamai Technologies, Inc.(a)

    4,571       472,322  

Cognizant Technology Solutions Corp., Class A

    22,649       1,460,181  

International Business Machines Corp.

    40,855       5,909,267  
   

 

 

 
      11,718,497  
Leisure Products — 0.0%            

Hasbro, Inc.

    5,842       263,766  
   

 

 

 
Life Sciences Tools & Services — 0.9%            

Avantor, Inc.(a)(b)

    21,031       366,570  

Illumina, Inc.(a)

    3,544       387,785  

IQVIA Holdings, Inc.(a)

    3,605       651,892  

Revvity, Inc.

    5,611       464,871  

Thermo Fisher Scientific, Inc.

    10,880       4,839,098  

Waters Corp.(a)

    893       213,007  
   

 

 

 
      6,923,223  
Machinery — 1.9%            

AGCO Corp.

    2,785       319,328  

Caterpillar, Inc.

    14,276       3,227,090  

Cummins, Inc.

    3,625       784,088  

Deere & Co.

    5,782       2,112,512  

Dover Corp.

    2,514       326,694  

Fortive Corp.

    7,273       474,781  

Illinois Tool Works, Inc.

    12,341       2,765,865  

Middleby Corp. (The)(a)

    1,189       134,202  

Otis Worldwide Corp.

    8,718       673,117  

PACCAR, Inc.

    23,387       1,930,129  

Parker-Hannifin Corp.

    1,838       678,057  

Pentair PLC

    4,209       244,627  

Snap-on, Inc.

    2,374       612,350  

Stanley Black & Decker, Inc.

    6,885       585,569  

Westinghouse Air Brake Technologies Corp.

    3,721       394,500  
   

 

 

 
      15,262,909  
Media — 1.5%            

Charter Communications, Inc., Class A(a)

    3,293       1,326,421  

Comcast Corp., Class A

    184,573       7,621,019  

Fox Corp., Class A, NVS

    11,383       345,929  

Fox Corp., Class B

    5,853       163,357  

Interpublic Group of Cos., Inc. (The)

    17,365       493,166  

Liberty Media Corp. - Liberty SiriusXM, NVS(a)

    6,627       162,693  

Liberty Media Corp. - Liberty SiriusXM, Class A(a)

    3,280       80,327  

News Corp., Class A, NVS

    17,238       356,482  

News Corp., Class B

    5,296       113,546  

Omnicom Group, Inc.

    8,807       659,732  
Security   Shares     Value  
Media (continued)            

Paramount Global, Class A(b)

    361     $ 5,018  

Paramount Global, Class B, NVS

    21,637       235,411  

Sirius XM Holdings, Inc.(b)

    28,879       123,602  
   

 

 

 
          11,686,703  
Metals & Mining — 1.0%            

Cleveland-Cliffs, Inc.(a)

    23,039       386,594  

Freeport-McMoRan, Inc.

    64,348       2,173,676  

Newmont Corp.

    51,566       1,932,178  

Nucor Corp.

    11,154       1,648,450  

Reliance Steel & Aluminum Co.

    2,622       666,984  

Southern Copper Corp.

    3,849       272,894  

Steel Dynamics, Inc.

    6,981       743,546  
   

 

 

 
      7,824,322  
Mortgage Real Estate Investment Trusts (REITs) — 0.0%  

Annaly Capital Management, Inc.

    22,390       349,508  
   

 

 

 
Multi-Utilities — 1.3%            

Ameren Corp.

    5,980       452,746  

CenterPoint Energy, Inc.

    17,097       459,567  

CMS Energy Corp.

    8,135       442,056  

Consolidated Edison, Inc.

    15,468       1,357,936  

Dominion Energy, Inc.

    37,609       1,516,395  

DTE Energy Co.

    9,217       888,334  

NiSource, Inc.

    18,454       464,303  

Public Service Enterprise Group, Inc.

    22,383       1,379,912  

Sempra

    28,163       1,972,255  

WEC Energy Group, Inc.

    14,159       1,152,401  
   

 

 

 
      10,085,905  
Office REITs — 0.1%            

Alexandria Real Estate Equities, Inc.

    3,822       355,943  

Boston Properties, Inc.

    6,429       344,401  
   

 

 

 
      700,344  
Oil, Gas & Consumable Fuels — 7.4%            

APA Corp.

    13,887       551,592  

Cheniere Energy, Inc.

    4,801       798,982  

Chesapeake Energy Corp.

    5,048       434,532  

Chevron Corp.

    79,569       11,595,590  

ConocoPhillips

    28,707       3,410,392  

Coterra Energy, Inc.

    15,177       417,367  

Devon Energy Corp.

    15,084       702,462  

Diamondback Energy, Inc.

    4,559       730,899  

EOG Resources, Inc.

    26,112       3,296,640  

EQT Corp.

    6,465       273,987  

Exxon Mobil Corp.

    178,496       18,893,801  

Hess Corp.

    7,028       1,014,843  

HF Sinclair Corp.

    6,526       361,410  

Kinder Morgan, Inc.

    86,935       1,408,347  

Marathon Oil Corp.

    18,232       497,916  

Marathon Petroleum Corp.

    11,879       1,796,699  

Occidental Petroleum Corp.

    11,770       727,504  

ONEOK, Inc.

    26,122       1,703,154  

Ovintiv, Inc.

    7,018       336,864  

Phillips 66

    19,969       2,277,864  

Pioneer Natural Resources Co.

    10,459       2,499,701  

Targa Resources Corp.

    5,982       500,155  

Valero Energy Corp.

    15,837       2,011,299  

Williams Cos., Inc. (The)

    54,460       1,873,424  
   

 

 

 
      58,115,424  
Passenger Airlines — 0.2%            

American Airlines Group, Inc.(a)

    14,383       160,370  

Delta Air Lines, Inc.

    15,356       479,875  

 

 

44  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Passenger Airlines (continued)            

Southwest Airlines Co.

    15,394     $ 342,209  

United Airlines Holdings, Inc.(a)(b)

    8,461       296,220  
   

 

 

 
      1,278,674  
Personal Care Products — 0.1%            

Coty, Inc., Class A(a)

    10,111       94,740  

Estee Lauder Cos., Inc. (The), Class A

    4,320       556,718  
   

 

 

 
      651,458  
Pharmaceuticals — 4.9%            

Bristol-Myers Squibb Co.

    93,688       4,827,743  

Catalent, Inc.(a)

    5,637       193,856  

Jazz Pharmaceuticals PLC(a)

    2,837       360,356  

Johnson & Johnson

    107,991       16,019,385  

Merck & Co., Inc.

    77,575       7,966,952  

Pfizer, Inc.

    253,200       7,737,792  

Royalty Pharma PLC, Class A

    17,324       465,496  

Viatris, Inc.

    54,025       480,823  
   

 

 

 
          38,052,403  
Professional Services — 0.3%            

Booz Allen Hamilton Holding Corp., Class A

    3,261       391,092  

Genpact Ltd.

    4,484       150,393  

Jacobs Solutions, Inc.

    3,169       422,427  

KBR, Inc.

    2,305       134,036  

Leidos Holdings, Inc.

    6,192       613,751  

Robert Half, Inc.

    2,562       191,561  

SS&C Technologies Holdings, Inc.

    9,756       490,239  

TransUnion

    3,576       156,915  
   

 

 

 
      2,550,414  
Real Estate Management & Development — 0.1%  

CBRE Group, Inc., Class A(a)

    9,266       642,504  
   

 

 

 
Residential REITs — 0.3%            

American Homes 4 Rent, Class A

    5,827       190,776  

AvalonBay Communities, Inc.

    2,789       462,249  

Equity LifeStyle Properties, Inc.

    3,220       211,876  

Equity Residential

    7,413       410,161  

Essex Property Trust, Inc.

    1,642       351,257  

Mid-America Apartment Communities, Inc.

    2,382       281,433  

UDR, Inc.

    4,654       148,044  
   

 

 

 
      2,055,796  
Retail REITs — 0.5%            

Federal Realty Investment Trust

    1,413       128,851  

Kimco Realty Corp.

    27,620       495,503  

NNN REIT, Inc.

    8,255       299,904  

Realty Income Corp.

    16,352       774,758  

Regency Centers Corp.

    4,685       282,318  

Simon Property Group, Inc.

    14,673       1,612,416  
   

 

 

 
      3,593,750  
Semiconductors & Semiconductor Equipment — 5.9%  

Advanced Micro Devices, Inc.(a)

    28,363       2,793,756  

Analog Devices, Inc.

    11,365       1,788,055  

Applied Materials, Inc.

    37,659       4,984,169  

Broadcom, Inc.

    9,275       7,803,707  

Intel Corp.

    187,816       6,855,284  

KLA Corp.

    6,132       2,880,200  

Lam Research Corp.

    5,978       3,516,379  

Microchip Technology, Inc.

    12,672       903,387  

Micron Technology, Inc.

    49,120       3,284,654  

NXP Semiconductors NV

    6,574       1,133,555  

ON Semiconductor Corp.(a)

    10,021       627,715  

Qorvo, Inc.(a)

    4,363       381,413  
Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

QUALCOMM, Inc.

    50,048     $ 5,454,732  

Skyworks Solutions, Inc.

    4,597       398,744  

Teradyne, Inc.

    3,592       299,106  

Texas Instruments, Inc.

    22,785       3,235,698  
   

 

 

 
          46,340,554  
Software — 0.9%            

Gen Digital, Inc.

    25,071       417,683  

Oracle Corp.

    41,652       4,306,817  

Roper Technologies, Inc.

    2,683       1,310,833  

VMware, Inc., Class A(a)

    5,723       833,555  
   

 

 

 
      6,868,888  
Specialized REITs — 1.0%            

American Tower Corp.

    5,909       1,052,925  

Crown Castle, Inc.

    12,042       1,119,665  

CubeSmart

    3,980       135,678  

Digital Realty Trust, Inc.

    7,592       944,141  

Extra Space Storage, Inc.

    4,192       434,249  

Gaming & Leisure Properties, Inc.

    8,180       371,290  

Iron Mountain, Inc.

    5,434       320,987  

Lamar Advertising Co., Class A

    2,723       224,021  

Public Storage

    4,126       984,918  

VICI Properties, Inc.

    45,449       1,268,027  

Weyerhaeuser Co.

    32,839       942,151  
   

 

 

 
      7,798,052  
Specialty Retail — 2.2%            

Advance Auto Parts, Inc.

    2,646       137,671  

AutoZone, Inc.(a)

    378       936,355  

Bath & Body Works, Inc.

    10,260       304,209  

Best Buy Co., Inc.

    8,703       581,535  

CarMax, Inc.(a)

    3,230       197,321  

Dick’s Sporting Goods, Inc.

    2,811       300,636  

Home Depot, Inc. (The)

    28,260       8,045,339  

Lowe’s Cos., Inc.

    16,877       3,216,250  

O’Reilly Automotive, Inc.(a)

    911       847,631  

Penske Automotive Group, Inc.(b)

    876       125,338  

TJX Cos., Inc. (The)

    19,858       1,748,894  

Williams-Sonoma, Inc.

    2,865       430,438  
   

 

 

 
      16,871,617  
Technology Hardware, Storage & Peripherals — 0.5%  

Dell Technologies, Inc., Class C

    11,380       761,436  

Hewlett Packard Enterprise Co.

    57,989       891,871  

HP, Inc.

    39,035       1,027,791  

NetApp, Inc.

    5,079       369,650  

Seagate Technology Holdings PLC

    8,705       594,116  

Western Digital Corp.(a)

    14,393       577,879  
   

 

 

 
      4,222,743  
Textiles, Apparel & Luxury Goods — 0.3%  

NIKE, Inc., Class B

    16,662       1,712,354  

Tapestry, Inc.

    10,409       286,872  

VF Corp.

    14,956       220,302  
   

 

 

 
      2,219,528  
Tobacco — 1.2%            

Altria Group, Inc.

    79,585       3,196,929  

Philip Morris International, Inc.

    69,617       6,207,052  
   

 

 

 
      9,403,981  
Trading Companies & Distributors — 0.2%  

Ferguson PLC

    9,152       1,374,631  

United Rentals, Inc.

    1,393       565,934  
   

 

 

 
      1,940,565  

 

 

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

  45


Schedule of Investments (unaudited) (continued)

October 31, 2023

  

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Water Utilities — 0.1%            

American Water Works Co., Inc.

    4,146     $ 487,777  

Essential Utilities, Inc.

    5,143       172,085  
   

 

 

 
      659,862  
Wireless Telecommunication Services — 0.2%  

T-Mobile U.S., Inc.(a)

    10,193       1,466,365  
   

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $751,835,600)

          780,144,398  
   

 

 

 
Short-Term Securities  
Money Market Funds — 0.4%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)(e)

    2,622,165       2,623,214  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.33%(c)(d)

    768,774       768,774  
   

 

 

 

Total Short-Term Securities — 0.4%
(Cost: $3,390,956)

 

    3,391,988  
   

 

 

 

Total Investments — 100.2%
(Cost: $755,226,556)

 

    783,536,386  

Liabilities in Excess of Other Assets — (0.2)%

 

    (1,466,713
   

 

 

 

Net Assets — 100.0%

 

  $ 782,069,673  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

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 six months ended October 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
04/30/23
    Purchases
at Cost
    Proceeds
from Sale
    Net
Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/23
    Shares
Held at
10/31/23
    Income     Capital
Gain
Distributions
from Underlying
Funds
 

BlackRock Cash Funds: Institutional,
SL Agency Shares

  $  2,355,543     $  267,483 (a)    $     $ 636     $ (448   $ 2,623,214       2,622,165     $ 16,610 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    2,347,896             (1,579,122 )(a)                  768,774       768,774       45,227        

BlackRock, Inc.

    4,309,775       378,951       (468,496     (49,273     (317,879     3,853,078       6,293       64,395        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (48,637   $ (318,327   $  7,245,066       $  126,232     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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.

 

 

 

46  

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


Schedule of Investments (unaudited) (continued)

October 31, 2023

 

  

iShares® Morningstar Value 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 Consumer Staples Index

     6          12/15/23        $ 412        $ 3,387  

E-Mini Financials Select Sector Index

     7          12/15/23          701          (14,588

S&P 500 E-Mini Index

     3          12/15/23          632          (4,275
                 

 

 

 
                  $ (15,476
                 

 

 

 

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)

   $      $      $ 3,387      $      $      $      $ 3,387  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $    18,863      $      $      $      $    18,863  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, 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 October 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

   $      $      $   (48,487   $      $      $      $   (48,487
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                   

Futures contracts

   $      $      $ (47,862   $      $      $      $ (47,862
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — long

   $ 2,017,125  

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

 

 

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

  47


Schedule of Investments (unaudited) (continued)

October 31, 2023

 

  

iShares® Morningstar Value 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

   $         780,144,398     $      $      $ 780,144,398  

Short-Term Securities

          

Money Market Funds

     3,391,988                     3,391,988  
  

 

 

   

 

 

    

 

 

    

 

 

 
   $ 783,536,386     $      $      $         783,536,386  
  

 

 

   

 

 

    

 

 

    

 

 

 

Derivative Financial Instruments(a)

          

Assets

          

Equity Contracts

   $ 3,387     $                   —      $                   —      $ 3,387  

Liabilities

          

Equity Contracts

     (18,863                   (18,863
  

 

 

   

 

 

    

 

 

    

 

 

 
   $ (15,476   $                   —      $                   —      $ (15,476
  

 

 

   

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

48  

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


Statements of Assets and Liabilities  (unaudited)

October 31, 2023

 

    iShares
Morningstar
Mid-Cap
Value ETF
    iShares
Morningstar
Small-Cap ETF
    iShares
Morningstar
U.S. Equity
ETF
     iShares
Morningstar
Value ETF
 

 

 

ASSETS

        

Investments, at value — unaffiliated(a)(b)

  $  505,163,780     $  181,809,902     $  722,921,915      $  776,291,320  

Investments, at value — affiliated(c)

    11,172,999       22,209,534       7,775,678        7,245,066  

Cash

    7,379             12,876        25,361  

Cash pledged:

        

Futures contracts

    56,000       49,000       57,000        92,000  

Receivables:

        

Investments sold

    128,752       682,532       198,705        415,735  

Securities lending income — affiliated

    7,535       16,459       2,909        2,390  

Dividends — unaffiliated

    508,977       63,894       521,947        1,040,148  

Dividends — affiliated

    6,985       1,679       8,325        7,549  

Variation margin on futures contracts

    8,783       5,180       6,625        13,087  
 

 

 

   

 

 

   

 

 

    

 

 

 

Total assets

    517,061,190       204,838,180       731,505,980        785,132,656  
 

 

 

   

 

 

   

 

 

    

 

 

 

LIABILITIES

        

Bank overdraft

          12,076               

Collateral on securities loaned

    10,570,869       21,687,905       5,467,179        2,622,673  

Payables:

        

Investments purchased

    128,752       677,894       203,930        413,288  

Investment advisory fees

    25,431       6,379       18,804        27,022  
 

 

 

   

 

 

   

 

 

    

 

 

 

Total liabilities

    10,725,052       22,384,254       5,689,913        3,062,983  
 

 

 

   

 

 

   

 

 

    

 

 

 

Commitments and contingent liabilities

        

NET ASSETS

  $ 506,336,138     $ 182,453,926     $ 725,816,067      $ 782,069,673  
 

 

 

   

 

 

   

 

 

    

 

 

 

NET ASSETS CONSIST OF:

        

Paid-in capital

  $ 551,196,192     $ 252,052,263     $ 708,376,512      $ 785,943,315  

Accumulated earnings (loss)

    (44,860,054     (69,598,337     17,439,555        (3,873,642
 

 

 

   

 

 

   

 

 

    

 

 

 

NET ASSETS

  $ 506,336,138     $ 182,453,926     $ 725,816,067      $ 782,069,673  
 

 

 

   

 

 

   

 

 

    

 

 

 

NET ASSET VALUE

        

Shares outstanding

    8,700,000       4,150,000       12,600,000        12,450,000  
 

 

 

   

 

 

   

 

 

    

 

 

 

Net asset value

  $ 58.20     $ 43.96     $ 57.60      $ 62.82  
 

 

 

   

 

 

   

 

 

    

 

 

 

Shares authorized

    Unlimited       Unlimited       Unlimited        Unlimited  
 

 

 

   

 

 

   

 

 

    

 

 

 

Par value

    None       None       None        None  
 

 

 

   

 

 

   

 

 

    

 

 

 

(a) Investments, at cost — unaffiliated

  $ 511,785,103     $ 215,595,667     $ 640,100,157      $ 747,277,056  

(b) Securities loaned, at value

  $ 10,407,546     $ 21,340,983     $ 5,379,900      $ 2,597,071  

(c)  Investments, at cost — affiliated

  $ 11,168,313     $ 22,197,385     $ 7,374,924      $ 7,949,500  

See notes to financial statements.

 

 

 

I N A N C I A L    T A T E M E N T  S

  49


Statements of Operations (unaudited) 

Six Months Ended October 31, 2023

 

    iShares
Morningstar
Mid-Cap
Value ETF
    iShares
Morningstar
Small-Cap ETF
   

iShares
Morningstar
U.S. Equity

ETF

    iShares
Morningstar
Value ETF
 

 

 

INVESTMENT INCOME

       

Dividends — unaffiliated

  $ 6,788,979     $ 1,634,622     $ 5,912,328     $ 9,656,141  

Dividends — affiliated

    31,514       11,755       71,271       109,622  

Interest — unaffiliated

    1,270       1,271       1,101       1,896  

Securities lending income — affiliated — net

    53,431       196,463       19,682       16,610  

Foreign taxes withheld

    (2,835     (846     (1,564     (2,653
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    6,872,359       1,843,265       6,002,818       9,781,616  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory

    155,091       41,174       115,793       160,668  

Interest expense

    10       292       1       3  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    155,101       41,466       115,794       160,671  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    6,717,258       1,801,799       5,887,024       9,620,945  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

    (4,994,775     (4,176,012     (3,364,574     7,274,141  

Investments — affiliated

    2,104       327       6,585       (55,006

Futures contracts

    (207,316     (16,118     137,375       (48,487

In-kind redemptions — unaffiliated(a)

    1,636,169       1,191,637       5,664,492       6,626,734  

In-kind redemptions — affiliated(a)

                34,144       6,369  
 

 

 

   

 

 

   

 

 

   

 

 

 
    (3,563,818     (3,000,166     2,478,022       13,803,751  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — unaffiliated

    (30,443,114     (7,674,964     5,018,474       (40,933,845

Investments — affiliated

    (858     1,686       (195,952     (318,327

Futures contracts

    (120     (31,563     (153,905     (47,862
 

 

 

   

 

 

   

 

 

   

 

 

 
    (30,444,092     (7,704,841     4,668,617       (41,300,034
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain (loss)

    (34,007,910     (10,705,007     7,146,639       (27,496,283
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

  $ (27,290,652   $ (8,903,208   $ 13,033,663     $ (17,875,338
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

See Note 2 of the Notes to Financial Statements.

 

See notes to financial statements.

 

 

50  

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


Statements of Changes in Net Assets

 

    iShares Morningstar Mid-Cap Value ETF            iShares Morningstar Small-Cap ETF  
    Six Months Ended
10/31/23
(unaudited)
    Year Ended
04/30/23
           Six Months Ended
10/31/23
(unaudited)
    Year Ended
04/30/23
 

 

 

INCREASE (DECREASE) IN NET ASSETS

          

OPERATIONS

          

Net investment income

  $ 6,717,258     $ 11,990,407        $ 1,801,799     $ 3,398,402  

Net realized gain (loss)

    (3,563,818     6,599,179          (3,000,166     (12,328,087

Net change in unrealized appreciation (depreciation)

    (30,444,092     (33,166,530        (7,704,841     3,219,922  
 

 

 

   

 

 

      

 

 

   

 

 

 

Net decrease in net assets resulting from operations

    (27,290,652     (14,576,944        (8,903,208     (5,709,763
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Decrease in net assets resulting from distributions to shareholders

    (5,882,213     (11,819,760        (1,667,146 )(b)      (3,393,435
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

          

Net increase (decrease) in net assets derived from capital share transactions

    23,294,144       45,120,668          (7,235,025     9,391,283  
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

          

Total increase (decrease) in net assets

    (9,878,721     18,723,964          (17,805,379     288,085  

Beginning of period

    516,214,859       497,490,895          200,259,305       199,971,220  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

  $ 506,336,138     $     516,214,859        $ 182,453,926     $     200,259,305  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(b) 

A portion to the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end.

See notes to financial statements.

 

 

I N A N C I A L    T A T E M E N T  S

  51


Statements of Changes in Net Assets (continued)

 

    iShares Morningstar U.S. Equity ETF            iShares Morningstar Value ETF  
    Six Months Ended
10/31/23
(unaudited)
    Year Ended
04/30/23
           Six Months Ended
10/31/23
(unaudited)
    Year Ended
04/30/23
 

 

 

INCREASE (DECREASE) IN NET ASSETS

          

OPERATIONS

          

Net investment income

  $ 5,887,024     $ 12,196,647        $ 9,620,945     $ 18,588,586  

Net realized gain (loss)

    2,478,022       (9,759,247        13,803,751       10,547,440  

Net change in unrealized appreciation (depreciation)

    4,668,617       8,004,673          (41,300,034     (10,470,270
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    13,033,663       10,442,073          (17,875,338     18,665,756  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Decrease in net assets resulting from distributions to shareholders

    (5,674,189     (12,049,075        (9,321,405     (18,183,374
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

          

Net increase (decrease) in net assets derived from capital share transactions

    (29,688,794     (40,561,179        26,892,235       (6,551,556
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

          

Total decrease in net assets

    (22,329,320     (42,168,181        (304,508     (6,069,174

Beginning of period

    748,145,387       790,313,568          782,374,181       788,443,355  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

  $ 725,816,067     $     748,145,387        $ 782,069,673     $     782,374,181  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

 

52  

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


Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Morningstar Mid-Cap Value ETF  
     

Six Months Ended
10/31/23
(unaudited)
 
 
 
   
Year Ended
04/30/23
 
 
    
Year Ended
04/30/22
 
 
    
Year Ended
04/30/21
 
(a) 
    
Year Ended
04/30/20
 
(a) 
    
Year Ended
04/30/19
 
(a) 

Net asset value, beginning of period

  $ 62.19     $ 65.46      $ 64.01      $ 40.13      $ 53.28      $ 52.55  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(b)

    0.81       1.53        1.24        1.14        1.50        1.23  

Net realized and unrealized gain (loss)(c)

    (4.08     (3.29      1.50        23.92        (13.08      0.73  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    (3.27     (1.76      2.74        25.06        (11.58      1.96  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions from net investment income(d)

    (0.72     (1.51      (1.29      (1.18      (1.57      (1.23
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 58.20     $ 62.19      $ 65.46      $ 64.01      $ 40.13      $ 53.28  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return(e)

               

Based on net asset value

    (5.32 )%(f)      (2.60 )%       4.28      63.45      (22.07 )%       3.83
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets(g)

               

Total expenses

    0.06 %(h)      0.06      0.06      0.27      0.30      0.30
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    2.60 %(h)      2.44      1.88      2.32      2.95      2.36
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

               

Net assets, end of period (000)

  $ 506,336     $ 516,215      $ 497,491      $ 457,694      $ 331,048      $ 463,524  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(i)

    23     37      42      95      51      35
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Per share amounts reflect a three-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(c) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(d) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h) 

Annualized.

(i) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

 

I N A N C I A L    I G H L I G H T  S

  53


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Morningstar Small-Cap ETF  
     

Six Months Ended
10/31/23
(unaudited)
 
 
 
   
Year Ended
04/30/23
 
 
    
Year Ended
04/30/22
 
 
    
Year Ended
04/30/21
 
(a) 
    
Year Ended
04/30/20
 
(a) 
    
Year Ended
04/30/19
 
(a) 

Net asset value, beginning of period

  $ 46.57     $ 48.77      $ 58.27      $ 35.60      $ 43.90      $ 42.58  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(b)

    0.42       0.79        0.72        0.56        0.57        0.58  

Net realized and unrealized gain (loss)(c)

    (2.64     (2.20      (9.50      22.71        (8.23      1.34  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    (2.22     (1.41      (8.78      23.27        (7.66      1.92  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions from net investment income(d)

    (0.39 )(e)      (0.79      (0.72      (0.60      (0.64      (0.60
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 43.96     $ 46.57      $ 48.77      $ 58.27      $ 35.60      $ 43.90  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return(f)

               

Based on net asset value

    (4.81 )%(g)      (2.85 )%       (15.22 )%       65.95      (17.58 )%       4.56
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets(h)

               

Total expenses

    0.04 %(i)      0.04      0.04      0.22      0.25      0.25
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    1.75 %(i)      1.67      1.28      1.24      1.34      1.33
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

               

Net assets, end of period (000)

  $ 182,454     $ 200,259      $ 199,971      $ 241,801      $ 185,115      $ 237,032  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(j)

    16     28      41      175      62      67
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Per share amounts reflect a four-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(c) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(d) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end.

(f) 

Where applicable, assumes the reinvestment of distributions.

(g) 

Not annualized.

(h) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(i) 

Annualized.

(j) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

 

54  

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


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Morningstar U.S. Equity ETF  
     

Six Months Ended
10/31/23
(unaudited)
 
 
 
   
Year Ended
04/30/23
 
 
    
Year Ended
04/30/22
 
 
    
Year Ended
04/30/21
 
(a) 
    
Year Ended
04/30/20
 
(a) 
    
Year Ended
04/30/19
 
(a) 

Net asset value, beginning of period

  $ 57.11     $ 57.06      $ 59.02      $ 40.80      $ 41.90      $ 38.08  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(b)

    0.46       0.90        0.79        0.66        0.81        0.81  

Net realized and unrealized gain (loss)(c)

    0.48       0.04        (1.95      18.21        (0.88      3.82  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.94       0.94        (1.16      18.87        (0.07      4.63  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions from net investment income(d)

    (0.45     (0.89      (0.80      (0.65      (1.03      (0.81
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 57.60     $ 57.11      $ 57.06      $ 59.02      $ 40.80      $ 41.90  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return(e)

               

Based on net asset value

    1.63 %(f)      1.77      (2.08 )%       46.58      (0.13 )%       12.33
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets(g)

               

Total expenses

    0.03 %(h)      0.03      0.03      0.18      0.20      0.20
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    1.53 %(h)      1.65      1.27      1.32      1.90      2.05
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

               

Net assets, end of period (000)

  $ 725,816     $ 748,145      $ 790,314      $ 891,187      $ 718,065      $ 863,172  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(i)

    2     4      6      131      49      38
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Per share amounts reflect a four-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(c) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(d) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h) 

Annualized.

(i) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

 

I N A N C I A L    I G H L I G H T  S

  55


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Morningstar Value ETF  
     

Six Months Ended
10/31/23
(unaudited)
 
 
 
   
Year Ended
04/30/23
 
 
    
Year Ended
04/30/22
 
 
    
Year Ended
04/30/21
 
(a) 
    
Year Ended
04/30/20
 
(a) 
    
Year Ended
04/30/19
 
(a) 

Net asset value, beginning of period

  $ 64.93     $ 64.89      $ 63.68      $ 48.12      $ 54.18      $ 50.55  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(b)

    0.79       1.54        1.38        1.55        1.65        1.49  

Net realized and unrealized gain (loss)(c)

    (2.15     0.00 (d)       1.20        15.58        (6.04      3.58  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    (1.36     1.54        2.58        17.13        (4.39      5.07  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions from net investment income(e)

    (0.75     (1.50      (1.37      (1.57      (1.67      (1.44
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 62.82     $ 64.93      $ 64.89      $ 63.68      $ 48.12      $ 54.18  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return(f)

               

Based on net asset value

    (2.12 )%(g)      2.53      4.02      36.36      (8.23 )%       10.22
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets(h)

               

Total expenses

    0.04 %(i)      0.04      0.04      0.22      0.25      0.25
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    2.40 %(i)      2.43      2.08      2.88      3.06      2.86
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

               

Net assets, end of period (000)

  $ 782,070     $ 782,374      $ 788,443      $ 687,758      $ 447,483      $ 492,996  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(j)

    12     27      21      112      36      24
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Per share amounts reflect a two-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(c) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(d) 

Amount is less than $0.005 per share.

(e) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(f) 

Where applicable, assumes the reinvestment of distributions.

(g) 

Not annualized.

(h) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(i) 

Annualized.

(j) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

 

56  

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


Notes to Financial Statements (unaudited) 

 

1.

ORGANIZATION

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.

These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):

 

iShares ETF   Diversification
Classification
 

Morningstar Mid-Cap Value

    Diversified  

Morningstar Small-Cap

    Diversified  

Morningstar U.S. Equity

    Diversified  

Morningstar Value

    Diversified  

 

2.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis.

ForeignTaxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of October 31, 2023, if any, are disclosed in the Statements of Assets and Liabilities.

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Bank Overdraft: The Funds had outstanding cash disbursements exceeding deposited cash amounts at the custodian during the reporting period. The Funds are obligated to repay the custodian for any overdraft, including any related costs or expenses, where applicable. For financial reporting purposes, overdraft fees, if any, are included in interest expense in the Statements of Operations.

Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise

 

 

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Notes to Financial Statements (unaudited) (continued)

 

accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

   

Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

   

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

 

   

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.

Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

   

Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

 

   

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and

 

   

Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in

 

 

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Notes to Financial Statements (unaudited) (continued)

 

connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:

 

iShares ETF and Counterparty   Securities
Loaned at Value
     Cash
Collateral Received(a)
    Non-Cash
Collateral Received,
at Fair Value(a)
     Net
Amount(b)
 

Morningstar Mid-Cap Value

         

Barclays Bank PLC

  $ 221,700      $ (221,700   $      $  

BNP Paribas SA

    125        (125             

BofA Securities, Inc.

    1,198,379        (1,198,356            23  

Citadel Clearing LLC

    233,072        (233,072             

Goldman Sachs & Co. LLC

    1,118,131        (1,118,131             

J.P. Morgan Securities LLC

    3,090,930        (3,090,930             

Morgan Stanley

    2,845,084        (2,819,458            25,626  

RBC Capital Market LLC

    990,242        (990,242             

Scotia Capital (USA), Inc.

    253,875        (253,875             

Toronto-Dominion Bank

    450,393        (450,393             

Wells Fargo Securities LLC

    5,615        (5,615             
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 10,407,546      $ (10,381,897   $      $ 25,649  
 

 

 

    

 

 

   

 

 

    

 

 

 

Morningstar Small-Cap

         

Barclays Bank PLC

  $ 659,637      $ (659,637   $      $  

Barclays Capital, Inc.

    80,063        (80,063             

BMO Capital Markets Corp.

    494        (400            94  

BNP Paribas SA

    2,559,996        (2,559,996             

BofA Securities, Inc.

    2,350,077        (2,350,077             

Citadel Clearing LLC

    345,428        (345,428             

Citigroup Global Markets, Inc.

    502,389        (499,353            3,036  

Credit Suisse Securities (USA) LLC

    63,291        (63,291             

Goldman Sachs & Co. LLC

    2,943,701        (2,943,701             

HSBC Bank PLC

    265,631        (265,631             

J.P. Morgan Securities LLC

    2,797,806        (2,797,806             

Jefferies LLC

    948,796        (948,796             

Mizuho Securities USA LLC

    22,802        (22,802             

Morgan Stanley

    4,402,546        (4,402,546             

National Financial Services LLC

    770,938        (770,938             

Natixis SA

    311,962        (311,962             

Nomura Securities International, Inc.

    8,060        (8,000            60  

RBC Capital Market LLC

    38,271        (38,234            37  

Scotia Capital (USA), Inc.

    270,023        (270,023             

SG Americas Securities LLC

    135,495        (135,495             

State Street Bank & Trust Co.

    382,879        (382,879             

Toronto-Dominion Bank

    792,607        (792,607             

UBS AG

    279,827        (279,640            187  

UBS Securities LLC

    151,660        (151,660             

Wells Fargo Bank N.A.

    163,901        (163,901             

Wells Fargo Securities LLC

    92,703        (92,703             
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 21,340,983      $ (21,337,569   $      $ 3,414  
 

 

 

    

 

 

   

 

 

    

 

 

 

Morningstar U.S. Equity

         

Barclays Bank PLC

  $ 270,187      $ (270,187   $      $  

BNP Paribas SA

    641,741        (637,202            4,539  

BofA Securities, Inc.

    865,656        (865,656             

Citadel Clearing LLC

    20,035        (19,992            43  

Goldman Sachs & Co. LLC

    433,610        (433,610             

HSBC Bank PLC

    614,352        (614,352             

J.P. Morgan Securities LLC

    333,987        (333,987             

Morgan Stanley

    390,858        (384,524            6,334  

RBC Capital Market LLC

    263,483        (263,483             

Scotia Capital (USA), Inc.

    952,589        (952,589             

Toronto-Dominion Bank

    544,054        (544,054             

UBS AG

    17,291        (17,291             

Wells Fargo Securities LLC

    32,057        (32,057             
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 5,379,900      $ (5,368,984   $      $ 10,916  
 

 

 

    

 

 

   

 

 

    

 

 

 
                                   

 

 

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Notes to Financial Statements (unaudited) (continued)

 

iShares ETF and Counterparty   Securities
Loaned at Value
     Cash
Collateral Received(a)
    Non-Cash
Collateral Received,
at Fair Value(a)
     Net
Amount(b)
 

Morningstar Value

         

Barclays Bank PLC

  $ 437,307      $ (437,307   $      $  

Barclays Capital, Inc.

    4        (4             

BNP Paribas SA

    14        (14             

BofA Securities, Inc.

    78,071        (76,192            1,879  

Goldman Sachs & Co. LLC

    7,735        (7,735             

J.P. Morgan Securities LLC

    971,387        (971,387             

Morgan Stanley

    621,742        (612,065            9,677  

SG Americas Securities LLC

    479,090        (479,090             

Wells Fargo Securities LLC

    1,721        (1,721             
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 2,597,071      $ (2,585,515   $      $ 11,556  
 

 

 

    

 

 

   

 

 

    

 

 

 
                                   

 

  (a) 

Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Funds’ Statements of Assets and Liabilities.

 
  (b) 

The market value of the loaned securities is determined as of October 31, 2023. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by the counterparty.

 

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).

For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:

 

iShares ETF   Investment Advisory Fees   

Morningstar Mid-Cap Value

  0.06%

Morningstar Small-Cap

  0.04   

Morningstar U.S. Equity

  0.03   

Morningstar Value

  0.04   

Distributor: BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

ETF Servicing Fees: Each Fund has entered into an ETF Services Agreement with BRIL to perform certain order processing, Authorized Participant communications, and related services in connection with the issuance and redemption of Creation Units (“ETF Services”). BRIL is entitled to a transaction fee from Authorized Participants on each creation or redemption order for the ETF Services provided. The Funds do not pay BRIL for ETF Services.

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each Fund retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income - affiliated - net in its Statements of Operations. For the six months ended October 31, 2023, the Funds paid BTC the following amounts for securities lending agent services:

 

iShares ETF   Amounts  

Morningstar Mid-Cap Value

  $   15,166  

Morningstar Small-Cap

    50,975  

Morningstar U.S. Equity

    6,581  

Morningstar Value

    4,616  

Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.

Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the six months ended October 31, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

iShares ETF   Purchases      Sales     

Net Realized

Gain (Loss)

 

Morningstar Mid-Cap Value

  $ 49,463,185      $ 60,453,749      $    3,408,931  

Morningstar Small-Cap

    17,328,259        8,797,361        (526,310

Morningstar U.S. Equity

    4,755,999        4,081,709        (2,377,532

Morningstar Value

      52,101,217          50,622,881        4,019,510  

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends - affiliated in the Statements of Operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

 

7.

PURCHASES AND SALES

For the six months ended October 31, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:

 

iShares ETF   Purchases      Sales  

Morningstar Mid-Cap Value

  $   120,742,015      $   119,545,154  

Morningstar Small-Cap

    31,786,293        32,061,741  

Morningstar U.S. Equity

    20,286,386        18,980,182  

Morningstar Value

    94,239,277        94,037,407  

 

 

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  61


Notes to Financial Statements (unaudited) (continued)

 

For the six months ended October 31, 2023, in-kind transactions were as follows:

 

iShares ETF   In-kind
Purchases
     In-kind
Sales
 

Morningstar Mid-Cap Value

  $   32,105,086      $ 9,202,163  

Morningstar Small-Cap

           6,999,831  

Morningstar U.S. Equity

           29,583,165  

Morningstar Value

    55,681,982        29,098,506  

 

8.

INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of April 30, 2023, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF   Non-Expiring Capital
Loss Carryforwards
 

Morningstar Mid-Cap Value

  $ 33,455,274  

Morningstar Small-Cap

    31,567,199  

Morningstar U.S. Equity

    68,380,131  

Morningstar Value

    45,692,589  

As of October 31, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

iShares ETF   Tax Cost      Gross Unrealized
Appreciation
     Gross Unrealized
Depreciation
    Net Unrealized
Appreciation
(Depreciation)
 

Morningstar Mid-Cap Value

  $   525,123,507      $ 45,620,206      $ (54,399,920   $ (8,779,714

Morningstar Small-Cap

    239,207,528        23,618,380        (58,839,243     (35,220,863

Morningstar U.S. Equity

    648,138,243        160,574,996        (78,056,428     82,518,568  

Morningstar Value

    757,254,206        95,455,776        (69,189,072     26,266,704  

 

9.

PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant

 

 

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Notes to Financial Statements (unaudited) (continued)

 

increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore each Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by each Fund, and each Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. Each Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.

The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the Fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

 

10.

CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.

Transactions in capital shares were as follows:

 

 

 
   

Six Months Ended

10/31/23

          

Year Ended

04/30/23

 
 

 

 

      

 

 

 
iShares ETF   Shares     Amount            Shares     Amount  

 

 

Morningstar Mid-Cap Value

          

Shares sold

    550,000     $ 32,494,427          1,750,000     $     108,029,844  

Shares redeemed

        (150,000     (9,200,283            (1,050,000     (62,909,176
 

 

 

   

 

 

      

 

 

   

 

 

 
    400,000     $     23,294,144          700,000     $ 45,120,668  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

 

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  63


Notes to Financial Statements (unaudited) (continued)

 

 

 
   

Six Months Ended

10/31/23

          

Year Ended

04/30/23

 
 

 

 

      

 

 

 
iShares ETF   Shares     Amount             Shares     Amount  

Morningstar Small-Cap

          

Shares sold

        $          400,000     $ 18,341,725  

Shares redeemed

    (150,000     (7,235,025        (200,000     (8,950,442
 

 

 

   

 

 

      

 

 

   

 

 

 
    (150,000   $ (7,235,025        200,000     $ 9,391,283  
 

 

 

   

 

 

      

 

 

   

 

 

 

Morningstar U.S. Equity

          

Shares sold

        $          200,000     $ 10,798,586  

Shares redeemed

    (500,000     (29,688,794        (950,000     (51,359,765
 

 

 

   

 

 

      

 

 

   

 

 

 
    (500,000   $   (29,688,794        (750,000   $   (40,561,179
 

 

 

   

 

 

      

 

 

   

 

 

 

Morningstar Value

          

Shares sold

    850,000     $ 56,101,232          750,000     $ 47,324,307  

Shares redeemed

    (450,000     (29,208,997        (850,000     (53,875,863
 

 

 

   

 

 

      

 

 

   

 

 

 
    400,000     $ 26,892,235          (100,000   $ (6,551,556
 

 

 

   

 

 

      

 

 

   

 

 

 

The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to BRIL, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.

 

11.

SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

 

 

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Board Review and Approval of Investment Advisory Contract

 

iShares Morningstar Mid-Cap Value ETF, iShares Morningstar Small-Cap ETF, iShares Morningstar U.S. Equity ETF, iShares Morningstar Value ETF (each the “Fund”)

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider the approval of the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 2, 2023 and May 15, 2023, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 7-8, 2023, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of other fund(s) in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2022, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about ongoing enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund, including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the May 2, 2023 meeting and throughout the year, and matters related to BFA’s portfolio compliance program and other compliance programs and services.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by

 

 

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Board Review and Approval of Investment Advisory Contract (continued)

 

numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).

Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability (as discussed above), including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities, as applicable (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that are provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.

 

 

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Supplemental Information (unaudited)

 

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

October 31, 2023

 

       
    Total Cumulative Distributions
for the Fiscal Year-to-Date
          % Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
 
iShares ETF   Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
           Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
 

Morningstar Mid-Cap Value

  $   0.717343     $     $     $   0.717343         100             100

Morningstar Small-Cap(a)

    0.375113             0.018080       0.393193               95             5       100  

 

(a) 

The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

Tailored Shareholder Reports for Open-End Mutual Funds and ETFs

Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.

 

 

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General Information

 

Electronic Delivery

Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:

 

   

Go to icsdelivery.com.

   

If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

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


Glossary of Terms Used in this Report

 

Portfolio Abbreviation

 

NVS   Non-Voting Shares
REIT   Real Estate Investment Trust
S&P   Standard & Poor’s

 

 

L O S S A R Y    O F    E R M S     S E D    I N    T H I S    E P O R T

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Want to know more?

iShares.com | 1-800-474-2737

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Morningstar, Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-SAR-410-1023

 

 

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