Table of Contents

 

LOGO

  AUGUST 31, 2022

 

 

   

 

   2022 Annual Report

 

iShares Trust

 

·  

iShares MSCI Brazil Small-Cap ETF | EWZS | NASDAQ

 

·  

iShares MSCI China ETF | MCHI | NASDAQ

 

·  

iShares MSCI China Small-Cap ETF | ECNS | NYSE Arca

 

·  

iShares MSCI Indonesia ETF | EIDO | NYSE Arca

 

·  

iShares MSCI Peru ETF | EPU | NYSE Arca

 

·  

iShares MSCI Philippines ETF | EPHE | NYSE Arca

 

·  

iShares MSCI Poland ETF | EPOL | NYSE Arca

 

·  

iShares MSCI Qatar ETF | QAT | NASDAQ

 

·  

iShares MSCI Saudi Arabia ETF | KSA | NYSE Arca

 

·  

iShares MSCI UAE ETF | UAE | NASDAQ


Table of Contents

The Markets in Review

Dear Shareholder,

The 12-month reporting period as of August 31, 2022 saw the emergence of significant challenges that disrupted the economic recovery and strong financial markets of 2021. The U.S. economy shrank in the first half of 2022, ending the run of robust growth that followed the reopening of global economies and the development of COVID-19 vaccines. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the ongoing war continued to present challenges for both investors and policymakers.

Equity prices fell as interest rates rose, particularly weighing on relatively high-valuation growth stocks and economically sensitive small-capitalization stocks. While both large- and small-capitalization U.S. stocks fell, declines for small-capitalization U.S. stocks were steeper. Both emerging market stocks and international equities from developed markets fell significantly, pressured by rising interest rates and a strengthening U.S. dollar.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose notably during the reporting period as investors reacted to higher inflation and attempted to anticipate its impact on future interest rate changes. The corporate bond market also faced inflationary headwinds, and increasing uncertainty led to higher corporate bond spreads (the difference in yield between U.S. Treasuries and similarly-dated corporate bonds).

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is growing faster than expected, raised interest rates four times while indicating that additional rate hikes were likely. Furthermore, the Fed wound down its bond-buying programs and began to reduce its balance sheet. As investors attempted to assess the Fed’s future trajectory, the Fed’s statements late in the reporting period led markets to believe that additional tightening is likely in the near term.

The horrific war in Ukraine has significantly clouded the outlook for the global economy, leading to major volatility in energy and metals markets. Sanctions on Russia, Europe’s top energy supplier, and general wartime disruption have magnified supply problems for key commodities. We believe elevated energy prices will continue to exacerbate inflationary pressure while also constraining economic growth. Combating inflation without stifling a recovery, while buffering against ongoing supply and price shocks, will be an especially challenging environment for setting effective monetary policy. Despite the likelihood of more rate increases on the horizon, we believe the Fed will ultimately err on the side of protecting employment, even at the expense of higher inflation. In the meantime, however, we are likely to see a period of slowing growth paired with relatively high inflation.

In this environment, while we favor an overweight to equities in the long-term, the market’s concerns over excessive rate hikes from central banks moderate our outlook. Furthermore, the energy shock and a deteriorating economic backdrop in China and Europe are likely to challenge corporate earnings, so we are underweight equities overall in the near term. We take the opposite view on credit, where higher spreads provide near-term opportunities, while the likelihood of higher inflation leads us to take an underweight stance on credit in the long term. We believe that investment-grade corporates, U.K. gilts, local-currency emerging market debt, and inflation-protected bonds (particularly in Europe) offer strong opportunities for a six- to twelve-month horizon.

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

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of August 31, 2022

 

 

     
     6-Month     12-Month
 
   

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

    (8.84)%       (11.23)%  
   

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

    (9.31)          (17.88)    
   

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

    (13.97)          (19.80)    
   

Emerging market equities
(MSCI Emerging Markets Index)

    (13.30)          (21.80)    
   

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

    0.36          0.39     
   

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

    (9.71)         (13.27)    
   

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

    (7.76)         (11.52)    
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

    (5.72)         (8.63)    
   

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

    (7.78)         (10.61)    

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

 

 

 

 

2  

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


Table of Contents

Table of Contents

 

    Page  

 

 

The Markets in Review

    2  

Annual Report:

 

Market Overview

    4  

Fund Summary

    5  

About Fund Performance

    25  

Disclosure of Expenses

    25  

Schedules of Investments

    26  

Financial Statements

 

Statements of Assets and Liabilities

    62  

Statements of Operations

    65  

Statements of Changes in Net Assets

    68  

Financial Highlights

    73  

Notes to Financial Statements

    83  

Report of Independent Registered Public Accounting Firm

    94  

Important Tax Information

    95  

Board Review and Approval of Investment Advisory Contract

    96  

Supplemental Information

    104  

Trustee and Officer Information

    106  

General Information

    109  

Glossary of Terms Used in this Report

    110  

 

 

 


Table of Contents

Market Overview

 

iShares Trust

Global Market Overview

Global equity markets declined in U.S. dollar terms during the 12 months ended August 31, 2022 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned -15.88% in U.S. dollar terms for the reporting period.

For the first third of the reporting period, economic recovery supported stocks in most regions of the world. The global economy continued to rebound from the impact of restrictions imposed at the beginning of the coronavirus pandemic, as mitigation and adaptation allowed most economic activity to continue. However, substantial challenges emerged at the beginning of 2022 which negatively affected stock prices. Inflation rose significantly in many countries, reducing consumers’ purchasing power and leading many central banks to tighten monetary policy. Russia’s invasion of Ukraine presented a further challenge to the global economy, disrupting important commodities markets.

The U.S. economy grew briskly over the final half of 2021, powered primarily by consumer spending. Record-high personal savings rates allowed consumers to spend at an elevated level, releasing pent-up demand for goods and services. Growth subsequently stalled in the first half of 2022, and the economy contracted amid lower inventories and faltering business investment. Despite the economic downturn, unemployment declined substantially, falling to 3.7% in August 2022 while the number of long-term unemployed dropped below the pre-pandemic level. Although high inflation negatively impacted consumer sentiment, which declined significantly, consumer spending continued to grow.

Rising inflation led to a shift in policy from the U.S. Federal Reserve (“the Fed”). As the reporting period began, the Fed was using accommodative monetary policy to stimulate the economy. Short-term interest rates were kept at near-zero levels, and the Fed used bond-buying programs to stabilize debt markets. However, rising prices led the Fed to tighten monetary policy during the reporting period in an attempt to prevent runaway inflation. The Fed slowed and then ended its bond-buying activities, finally reversing course as it began to reduce its balance sheet in June 2022. In March 2022, the Fed began to raise short-term interest rates, followed by three more increases for a total increase of 225 basis points, the most rapid rise in decades. Interest rates rose significantly in response, leading to higher borrowing costs for businesses. In that environment, the U.S. dollar significantly appreciated relative to most foreign currencies.

Stocks declined in Europe in U.S. dollar terms as economic growth stalled and the euro declined sharply relative to the U.S. dollar. Significantly higher inflation and Russia’s invasion of Ukraine negatively impacted equities. Russia is an important trading partner with many European countries, and new sanctions imposed limits on certain types of trade with Russia. Investors became concerned that the sharp rise in energy prices during the reporting period would constrain economic growth, as Europe relies on imported energy for much of its industrial and heating needs. The European Central Bank (“ECB”) responded to elevated inflation by raising interest rates in July 2022, the first such increase in over a decade.

Despite relatively low inflation by global standards, Asia-Pacific stocks declined significantly in U.S. dollar terms. Chinese stocks faced significant headwinds amid regulatory interventions by the Chinese government and strict lockdowns following COVID-19 outbreaks. Japanese stocks also declined amid an economic contraction in the first quarter of 2022 and a sharp decline in the Japanese yen relative to the U.S. dollar. Emerging market stocks declined substantially, as higher interest rates and a strengthening U.S. dollar raised the cost of borrowing in many emerging economies.

 

 

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Table of Contents
Fund Summary as of August 31, 2022       iShares® MSCI Brazil Small-Cap ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

    (18.61 )%       (0.21 )%       (3.28 )%        (18.61 )%       (1.05 )%       (28.37 )% 

Fund Market

    (19.38      (0.37      (3.27       (19.38      (1.83      (28.28

Index

    (18.53      0.65        (2.69             (18.53      3.29        (23.83

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

Expense Example

 

    Actual          

Hypothetical 5% Return

          
                                                              

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

         

Beginning

Account Value

(03/01/22)

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $      1,000.00          $      949.10          $      2.85             $      1,000.00        $      1,022.30          $      2.96          0.58

 

  (a)

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

 

 

 

F U N D   S U M M A R Y

  5


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Brazil Small-Cap ETF

 

Portfolio Management Commentary

Small-capitalization Brazilian stocks declined during the reporting period amid high inflation, rising interest rates, and slowing economic growth. Rising commodities prices and a shift toward value stocks bolstered Brazilian stocks in the first quarter of 2022 as prices for Brazil’s primary exports – oil, metals, and agricultural commodities – rose. However, Brazilian markets later declined as slowing global growth and recessionary fears started to weigh on commodities prices. Small-capitalization stocks are generally more sensitive to economic shifts, and inflation tends to pressure their margins more than larger peers.

The consumer discretionary sector was the largest detractor from the Index’s return, pressured by inflation, supply-chain disruptions, and weakening consumer sentiment. Education services stocks declined after a pandemic rally as students returned to in-person learning, enrollment levels weakened, and investor sentiment shifted away from stay-at-home stocks. The consumer durables industry detracted as rising costs and interest rates pressured homebuilder stocks amid slowing home sales and weakening margins. Retailers declined amid rising interest rates and high levels of consumer debt, while inflation pressured margins and lowered expectations for sales growth.

Airlines and aerospace and defense stocks drove substantial detraction from the industrials sector. Air traffic failed to return to pre-pandemic levels, and revenue per passenger miles, a measure of demand, remained well below 2019 figures. High fuel costs weighed on airlines’ profits, while concerns surrounding financing led to analyst downgrades. Within aerospace and defense, aircraft manufacturer stocks declined amid continuing quarterly losses, exacerbated by a failed merger between two major players.

Conversely, the energy sector contributed to the Index’s return. Energy prices rose and remained historically high, which drove strong revenue and earnings growth for oil producers.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector   Percent of   
Total Investments(a)
 

 

 

Consumer Discretionary

    19.3%  

Utilities

    18.8     

Consumer Staples

    15.1     

Industrials

    14.8     

Materials

    7.8     

Real Estate

    7.5     

Information Technology

    4.5     

Financials

    4.5     

Health Care

    3.8     

Energy

    3.7     

Communication Services

    0.2     

 

  (a)

 Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

 

 
Security   Percent of   
Total Investments(a)
 

 

 

Eneva SA

    4.8%  

Sendas Distribuidora SA

    4.5     

Embraer SA

    2.9     

Transmissora Alianca de Energia Eletrica SA

    2.6     

Metalurgica Gerdau SA (Preferred)

    2.2     

Sul America SA

    2.1     

Grupo De Moda Soma SA

    2.1     

3R Petroleum Oleo E Gas SA

    2.1     

Multiplan Empreendimentos Imobiliarios SA

    2.1     

Cielo SA

    2.0     

 

 

 

 

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Table of Contents
Fund Summary as of August 31, 2022     iShares® MSCI China ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

    (28.80 )%       (2.96 )%       4.04       (28.80 )%       (13.94 )%       48.61

Fund Market

    (28.87      (2.99      3.98         (28.87      (14.07      47.72  

Index

    (28.19      (2.34      4.65               (28.19      (11.15      57.55  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

Expense Example

 

    Actual          

Hypothetical 5% Return

          
                                                              

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

         

Beginning

Account Value

(03/01/22)

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $      1,000.00          $      855.10          $      2.76             $      1,000.00        $      1,022.20          $      3.01          0.59

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  7


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI China ETF

 

Portfolio Management Commentary

Chinese equities declined sharply during the reporting period as economic growth slowed amid continuing pandemic-related restrictions, while a wide-ranging regulatory crackdown continued to raise uncertainty that pressured technology stocks and the property market, leading to a homebuyer boycott of mortgage payments. Unemployment rose and consumer spending weakened, while inflationary pressures and supply chain disruptions continued. Concerns about delisting from U.S. exchanges arising from audit requirements also weighed on Chinese stocks.

The consumer discretionary sector drove the majority of detraction from the Index’s return amid concerns surrounding slowing growth, as well as public health and regulatory restrictions, as government efforts to rein in large internet firms, which included billions of dollars in anti-trust fines, weighed on investor sentiment. The internet and direct marketing industry declined as market saturation and slowing consumption pressured earnings. Meanwhile, growth in cloud businesses stagnated amid competition from government-backed rivals. Automobile manufacturers also declined as vehicle sales slowed when pandemic-related lockdowns slowed production and car purchases.

The communication services sector detracted from the Index’s return. Media and entertainment stocks declined amid restrictions limiting video game use and advertising. Revenue growth slowed for media and videogaming firms, constraining earnings and raising concerns about future growth. China also temporarily suspended and subsequently resumed the approval of new video games but excluded titles from two of the country’s largest gaming companies.

In the healthcare sector, stocks in the pharmaceuticals, biotechnology, and life sciences industry declined as acquisition and initial public offering activity slowed. Tighter regulations that included drug price reductions and fears about potential U.S. de-listing created headwinds for the healthcare sector. In addition, pharmaceutical companies with exposure to COVID-19 vaccines also declined, as competitors introduced a COVID-19 pill.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector   Percent of   
Total Investments(a)
 

 

 

Consumer Discretionary

    31.2%  

Communication Services

    18.4     

Financials

    14.8     

Health Care

    6.0     

Consumer Staples

    5.8     

Industrials

    5.8     

Information Technology

    5.5     

Real Estate

    3.7     

Materials

    3.5     

Utilities

    2.7     

Energy

    2.6     

 

 

TEN LARGEST HOLDINGS

 

 

Security   Percent of   
Total Investments(a)

 

 

Tencent Holdings Ltd.

    12.3%  

Alibaba Group Holding Ltd.

    8.6     

Meituan, Class B

    5.0     

JD.com Inc., Class A

    3.3     

China Construction Bank Corp., Class H

    2.8     

Baidu Inc.

    1.9     

Ping An Insurance Group Co. of China Ltd., Class H

    1.8     

NetEase Inc.

    1.8     

Pinduoduo Inc.

    1.7     

Wuxi Biologics Cayman Inc.

    1.5     

 

 

 

  (a)

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary as of August 31, 2022       iShares® MSCI China Small-Cap ETF

 

Investment Objective

The iShares MSCI China Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization Chinese equities that are available to international investors, as represented by the MSCI China Small Cap Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (32.33 )%       (2.55 )%       4.49       (32.33 )%       (12.10 )%       55.10

Fund Market

    (32.09      (2.55      4.50         (32.09      (12.11      55.32  

Index

    (37.46      (4.41      3.00               (37.46      (20.20      34.40  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

Expense Example

 

    Actual          

Hypothetical 5% Return

          
                                                              

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

         

Beginning

Account Value

(03/01/22)

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $      1,000.00          $      813.40          $      2.65             $      1,000.00        $      1,022.30          $      2.96          0.58

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  9


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI China Small-Cap ETF

 

Portfolio Management Commentary

Smaller-capitalization Chinese equities declined sharply during the reporting period as economic growth slowed amid ongoing pandemic-related restrictions, while a wide-ranging regulatory crackdown continued to raise uncertainty that pressured technology stocks and the property market, leading to a liquidity crisis. Unemployment rose and consumer spending weakened, while inflationary pressures and supply chain disruptions continued. Concerns about delisting from U.S. exchanges arising from audit requirements also weighed on Chinese stocks. Declining liquidity, COVID-19 lockdowns, and concerns about high valuations were especially challenging for smaller companies.

The real estate sector was the largest detractor from the Index’s return, as real estate development and management stocks declined sharply amid the property market crisis. The government’s crackdown on borrowing drove many developers to default, and home prices declined, leading to widespread mortgage boycotts. Companies tied to the property market, including developers, failed to meet obligations. Defaults (or warnings thereof) and ratings agency downgrades weighed on investor sentiment.

Regulatory issues also impacted the healthcare sector, which detracted substantially from the Index’s return amid drug price reductions, tighter research and development policies in China, drug approval setbacks, and fears about delisting. Acquisition and initial public offering activity slowed as investment in COVID-19 treatments receded, driving biotechnology and pharmaceuticals stocks lower.

Consumer discretionary stocks also declined amid public health and regulatory restrictions, along with weakening growth, high unemployment, slowing consumer spending, and delisting concerns. The internet and direct marketing retail industry declined as market saturation and slowing consumption pressured earnings.

Information technology stocks also detracted from the Index’s return, led by the software industry, amid the regulatory crackdown. Stocks that mine cryptocurrency or serve miners declined due to the sharp decline of cryptocurrency market and China’s ban on cryptocurrency mining in May 2021.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a)
 

Consumer Discretionary

    18.4

Health Care

    15.8  

Real Estate

    15.0  

Industrials

    12.0  

Information Technology

    11.5  

Materials

    7.0  

Financials

    6.4  

Communication Services

    5.4  

Utilities

    4.7  

Consumer Staples

    2.9  

Energy

    0.9  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a)
 

JinkoSolar Holding Co. Ltd.

    2.8

China Conch Environment Protection Holdings Ltd.

    1.7  

Akeso Inc.

    1.7  

Haichang Ocean Park Holdings Ltd.

    1.6  

Koolearn Technology Holding Ltd.

    1.5  

Lifetech Scientific Corp.

    1.4  

Chindata Group Holdings Ltd.

    1.3  

Golden Solar New Energy Technology Holdings Ltd.

    1.3  

C&D International Investment Group Ltd.

    1.2  

COFCO Joycome Foods Ltd.

    1.0  

 

  (a)

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Indonesia ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

    14.69      (0.63 )%       (0.18 )%        14.69      (3.12 )%       (1.76 )% 

Fund Market

    14.14        (0.77      (0.22       14.14        (3.80      (2.15

Index

    15.49        (0.02      0.38               15.49        (0.08      3.84  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through May 28, 2019 reflects the performance of MSCI Indonesia Investable Market Index. Index performance beginning on May 29, 2019 reflects the performance of the MSCI Indonesia IMI 25/50 Index.

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

Expense Example

 

    Actual          

Hypothetical 5% Return

          
                                                              

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

         

Beginning

Account Value

(03/01/22)

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $      1,000.00          $      1,004.40          $      2.93             $      1,000.00        $      1,022.30          $      2.96          0.58

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  11


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Indonesia ETF

 

Portfolio Management Commentary

Stocks in Indonesia rose significantly during the reporting period as the Indonesian economy maintained a steady pace of growth. Improving consumer sentiment amid the relaxation of COVID-19 restrictions led to increases in private consumption, which makes up more than half of the country’s domestic output. To help keep energy costs low for consumers, the government doubled its spending on subsidies. Exports reached new all-time highs amid rising demand for commodities. This resulted in larger-than-expected trade surpluses, which helped stabilize the nation’s currency. The country’s central bank chose not to increase interest rates for much of the reporting period, favoring other tools to fight inflation, but it changed course in August 2022, raising its benchmark rate by 25 basis points amid accelerating inflation.

The financials sector contributed the most to the Index’s return, led by the banking industry. Indonesia’s largest banks reported notable increases in net profits in 2021 and the first half of 2022, reversing 2020 declines. Loan activity accelerated amid the country’s coronavirus pandemic recovery, as more corporate borrowers sought funds for working capital and investments, and consumer demand for mortgages and vehicle loans increased. Improving loan repayment rates also supported income growth, while enabling banks to reduce pandemic-era loan loss provisions.

Energy company stocks also contributed notably to the Index’s performance. Coal producers benefited from a surge in commodities prices amid the outbreak of war in Ukraine. Sales of coal gained an additional boost from European buyers seeking new sources of the raw material ahead of E.U. sanctions banning Russian coal imports.

On the downside, the materials sector detracted from the Index’s return, as the construction materials industry struggled with supply shortages and the rising costs of raw materials. Increased competition and production overcapacity also weighed on industry earnings.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 
Financials     43.6
Communication Services     13.0  
Materials     10.7  
Consumer Staples     10.5  
Energy     7.6  
Consumer Discretionary     5.9  
Health Care     2.6  
Real Estate     2.3  
Industrials     1.9  
Utilities     1.2  
Information Technology     0.7  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 
Bank Central Asia Tbk PT     18.9
Bank Rakyat Indonesia Persero Tbk PT     11.9  
Telkom Indonesia Persero Tbk PT     8.8  
Astra International Tbk PT     4.8  
Bank Mandiri Persero Tbk PT     4.6  
Bank Negara Indonesia Persero Tbk PT     3.3  
Adaro Energy Indonesia Tbk PT     2.8  
Charoen Pokphand Indonesia Tbk PT     2.3  
Merdeka Copper Gold Tbk PT     2.2  
Kalbe Farma Tbk PT     2.0  

 

  (a)

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary as of August 31, 2022     iShares® MSCI Peru ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

    0.24      (4.61 )%       (2.36 )%        0.24      (21.01 )%       (21.24 )% 

Fund Market

    0.47        (4.58      (2.26       0.47        (20.91      (20.45

Index

    1.14        (4.38      (1.90             1.14        (20.06      (17.48

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

Expense Example

 

    Actual          

Hypothetical 5% Return

          
                                                              

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

         

Beginning

Account Value

(03/01/22)

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $      1,000.00          $      765.50          $      2.58             $      1,000.00        $      1,022.30          $      2.96          0.58

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

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Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Peru ETF

 

Portfolio Management Commentary

Peruvian equities advanced slightly during the reporting period, as political and economic turbulence weighed on investor sentiment. Peru’s monthly economic output surpassed levels prior to the coronavirus pandemic for much of the reporting period. However, the country’s central bank had difficulty taming inflation, which accelerated at its fastest pace in 25 years. Rising food and fuel prices, exacerbated by Russia’s invasion of Ukraine, heightened social tensions across the country, leading to rioting and strikes. The government aimed to alleviate these economic pressures through increased social spending, direct payments to citizens, tax relief, and the provision of fertilizer supplies for farmers. Meanwhile, Peru’s government faced turmoil of its own with multiple cabinet reshuffles and presidential impeachment attempts.

The financials sector contributed the most to the Index’s return, driven by the diversified banks industry. Corporate loan activity at the country’s largest financial services holding company grew through much of the reporting period, overcoming government policies that limited banks’ control over commercial rates, a development that slowed credit demand elsewhere in the industry. Rising interest rates also boosted net income and profitability.

The consumer staples sector also contributed to the Index’s performance, most notably the food products industry. Shipments of sugar and molasses, among Peru’s top agricultural exports, increased, especially to the U.S.

On the downside, materials stocks detracted significantly from the Index’s return amid political and operational turmoil in the metals and mining industry. The potential for closures, costs related to physical site damages, and COVID-19-related employee absences weighed on profits at gold mining companies. Among silver miners, production decreased while costs associated with derivatives contracts and rising interest rates increased. Protests from indigenous communities led to shutdowns at copper mines representing a significant amount of the country’s copper production.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Materials

    48.7

Financials

    26.4  

Consumer Staples

    8.1  

Industrials

    5.7  

Energy

    3.7  

Real Estate

    2.6  

Consumer Discretionary

    2.6  

Utilities

    2.2  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Credicorp Ltd.

    22.5

Southern Copper Corp.

    20.1  

Cia. de Minas Buenaventura SAA

    4.6  

Ferreycorp SAA

    4.3  

Alicorp SAA

    4.2  

Sociedad Minera Cerro Verde SAA

    3.9  

PetroTal Corp.

    3.7  

Unacem Corp. SAA

    3.2  

Volcan Cia. Minera SAA, Class B

    2.9  

InRetail Peru Corp.

    2.7  

 

  (a)

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary as of August 31, 2022       iShares® MSCI Philippines ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

    (11.65 )%       (5.04 )%       (0.18 )%        (11.65 )%       (22.78 )%       (1.80 )% 

Fund Market

    (11.52      (5.22      (0.22       (11.52      (23.53      (2.17

Index

    (10.89      (4.32      0.55               (10.89      (19.81      5.68  

GROWTH OF $10,000 INVESTMENT

 

(AT NET ASSET VALUE)

 

 

LOGO

Index performance through November 30, 2020 reflects the performance of the MSCI Philippines Investible Market Index (IMI). Index performance beginning on December 1, 2020 reflects the performance of the MSCI Philippines IMI 25/50 Index.

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

Expense Example

 

    Actual          

Hypothetical 5% Return

          
                                                              

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

         

Beginning

Account Value

(03/01/22)

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $      1,000.00          $      827.00          $      2.67             $      1,000.00        $      1,022.30          $      2.96          0.58

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  15


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Philippines ETF

 

Portfolio Management Commentary

Philippine stocks declined substantially during the reporting period as a rapid rise in inflation and concerns over the Philippine government’s finances weighed on an otherwise robust economy. Amid a relaxation of coronavirus-related restrictions, the economy grew at one of the fastest rates among all Asian countries. Private consumption, a key driver of the economy, expanded sharply, then began to slow as prices rose. Higher global energy prices, stemming from Russia’s invasion of Ukraine, led to a deceleration in agricultural production and manufacturing. The government faced pressure to maintain economic growth amid a sizable budget deficit, which expanded in the wake of coronavirus pandemic support programs. Concerns over an economic slowdown diminished investor enthusiasm for Philippine stocks and the Philippine peso, which declined 12% relative to the U.S. dollar.

The industrials sector detracted the most from the Index’s return. Fortunes were mixed for stocks of industrial conglomerates, as macroeconomic uncertainty and currency depreciation outweighed otherwise solid demand for goods and services. Rising energy costs narrowed margins across conglomerates’ portfolios, especially input costs in the petrochemicals business. In contrast, businesses linked to consumer spending, such as brick-and-mortar retail and food production, strengthened. However, rapidly rising inflation slowed the pace of consumption late in the reporting period, clouding the outlook for continued growth.

Companies in the real estate sector also weighed on the Index’s performance, as revenue growth decelerated, namely in residential development. Leasing revenues from shopping centers, hotels, and resorts supported earnings. However, developers exhibited caution, opting to slow down capital expenditure and land acquisition plans.

On the upside, the energy sector contributed to the Index’s return, led by the coal and consumable fuels industry. Coal production hit record highs, while surging global demand for the raw material boosted prices and revenues.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Industrials

    28.2
Real Estate     22.1  
Financials     18.1  
Consumer Staples     9.5  
Communication Services     7.4  
Consumer Discretionary     7.2  
Utilities     5.2  
Energy     1.3  
Materials     1.0  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

SM Prime Holdings Inc.

    12.7

BDO Unibank Inc.

    7.1  

Ayala Land Inc.

    6.2  

SM Investments Corp.

    5.7  

Ayala Corp.

    5.0  

Bank of the Philippine Islands

    4.6  

International Container Terminal Services Inc.

    4.5  

JG Summit Holdings Inc.

    4.3  

PLDT Inc.

    4.2  

Jollibee Foods Corp.

    3.8  

 

  (a)

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary as of August 31, 2022       iShares® MSCI Poland ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

    (44.38 )%       (12.74 )%       (4.20 )%        (44.38 )%       (49.40 )%       (34.88 )% 

Fund Market

    (44.59      (12.83      (4.28       (44.59      (49.67      (35.42

Index

    (44.31      (12.63      (3.97             (44.31      (49.09      (33.31

GROWTH OF $10,000 INVESTMENT

 

(AT NET ASSET VALUE)

 

 

LOGO

Index performance through February 11, 2013 reflects the performance of the MSCI Poland Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Poland IMI 25/50 Index.

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

Expense Example

 

    Actual          

Hypothetical 5% Return

          
                                                              

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses
Paid During

the Period

 
 

(a) 

         

Beginning

Account Value

(03/01/22)

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $      1,000.00          $      706.70          $      3.27             $      1,000.00        $      1,021.40          $      3.87          0.76

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  17


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Poland ETF

 

Portfolio Management Commentary

Stocks in Poland declined substantially for the reporting period, as accelerating inflation and the Polish government’s attempts to contain it weighed on the economy. War in neighboring Ukraine, looming energy shortages, and general economic weakness discouraged investors, driving Polish stock valuations down to record lows. Inflation reached a 25-year high, even as the Polish central bank executed 10 consecutive interest rate increases during the reporting period. Demand for goods and services decreased, both from domestic consumers and the country’s primary trading partners, and data signaled a contraction in manufacturing activity. The government sought to help consumers through tax reductions and mortgage relief yet failed to maintain voter confidence. The Polish zloty’s decline relative to the U.S. dollar diminished the value of Polish stocks in U.S. dollar terms.

The financials sector was the largest detractor from the Index’s return, as the diversified banking industry bore the brunt of government policies aimed at easing consumer woes. Higher interest rates made it increasingly difficult for homeowners to pay their mortgages, spurring officials to introduce a moratorium on payments. This measure significantly impacted Poland’s two largest banks, which represent approximately 40% of the domestic mortgage market, and soured investor sentiment amid concerns over revenue losses.

Stocks in the consumer discretionary sector weighed on the Index’s return, as political and macroeconomic headwinds constrained retail activity. Higher costs diminished profits in the internet and direct marketing retail industry, which revised growth expectations downward amid rising inflation. Textiles, apparel, and luxury goods companies faced a significant decline in income following their exit from the Russian market.

The communication services sector also detracted from the Index’s performance. Although revenues increased among video game companies in the interactive home entertainment industry, production delays and declining sales sapped investor sentiment.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    36.5
Energy     16.7  
Consumer Discretionary     10.3  
Consumer Staples     8.7  
Communication Services     7.6  
Materials     7.5  
Utilities     6.2  
Information Technology     3.1  
Industrials     2.3  
Health Care     1.1  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Polski Koncern Naftowy ORLEN SA

    12.3
Powszechna Kasa Oszczednosci Bank Polski SA     9.9  
Powszechny Zaklad Ubezpieczen SA     8.1  
Dino Polska SA     8.0  
Bank Polska Kasa Opieki SA     5.6  
Polskie Gornictwo Naftowe i Gazownictwo SA     4.4  
LPP SA     4.3  
KGHM Polska Miedz SA     4.2  
Allegro.eu SA     4.2  
Santander Bank Polska SA     3.8  
  (a)

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary as of August 31, 2022     iShares® MSCI Qatar ETF

 

Investment Objective

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

Performance

 

    Average Annual Total Returns           Cumulative Total Returns  
     1 Year      5 Years     

Since

Inception

           1 Year      5 Years     

Since

Inception

 

Fund NAV

    19.69      10.68      2.63       19.69      66.09      24.16

Fund Market

    19.07        10.47        2.64         19.07        64.50        24.32  

Index

    20.20        11.59        3.37               20.20        73.06        31.81  

GROWTH OF $10,000 INVESTMENT

 

(SINCE INCEPTION AT NET ASSET VALUE)

 

 

LOGO

The inception date of the Fund was April 29, 2014. The first day of secondary market trading was May 1, 2014.

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

Expense Example

 

    Actual          

Hypothetical 5% Return

          
                                                              

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses
Paid During

the Period

 
 

(a) 

         

Beginning

Account Value

(03/01/22)

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized
Expense
Ratio
 
 
 
      $      1,000.00          $      1,024.50          $      2.96             $      1,000.00        $      1,022.30          $      2.96          0.58

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  19


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Qatar ETF

 

Portfolio Management Commentary

Stocks in Qatar advanced considerably for the reporting period, as income from its key export, liquefied natural gas (“LNG”), rose sharply. Qatar is one of the world’s largest LNG exporters, and shipments of the product surged after the onset of the war in Ukraine. Demand for Qatari gas, which was relatively inexpensive compared to benchmark European prices, proved particularly strong. The Middle Eastern nation also increased shipments of crude oil, its second-largest export. Further, investors viewed Qatar’s status as host of soccer’s upcoming 2022 FIFA World Cup as a positive development for the domestic economy. As with other Persian Gulf countries, energy prices were a key catalyst for Qatar’s stock market, and the price of crude oil and natural gas both increased during the reporting period.

The financials sector contributed the most to the Index’s return for the reporting period. Banks, which represented approximately 49% of the Index on average, benefited from the rise in oil and gas prices as many of the businesses they finance are involved in the energy sector. Assets and earnings surged on the strength of increased deposits, financing, and investment activity. Loan-to-deposit ratios shrank, improving banks’ liquidity, and fee and commission revenue increased, reflecting improvement in banking service operations.

The industrials sector also contributed to the Index’s performance. The nation’s leading industrial conglomerate reported substantially higher earnings as it raised prices significantly for the fertilizers, petrochemicals, fuel additives, and steel products it sells. That helped the company overcome notably higher production costs and slightly weakened demand resulting from China’s COVID-19 lockdowns. Sales volumes also rose, aided by improved manufacturing efficiency.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    52.1
Industrials     15.2  
Energy     8.5  
Materials     7.8  
Real Estate     6.0  
Communication Services     4.4  
Utilities     3.2  
Consumer Staples     2.0  
Health Care     0.8  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Qatar National Bank QPSC

    21.5
Qatar Islamic Bank SAQ     13.4  
Industries Qatar QSC     8.7  
Masraf Al Rayan QSC     4.4  
Commercial Bank PSQC (The)     4.4  
Mesaieed Petrochemical Holding Co.     4.1  
Qatar Gas Transport Co. Ltd.     3.8  
Qatar Fuel QSC     3.5  
Qatar International Islamic Bank QSC     3.4  
Qatar Electricity & Water Co. QSC     3.2  

 

  (a)

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary as of August 31, 2022     iShares® MSCI Saudi Arabia ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

    9.60      13.53      10.99       9.60      88.58      106.71

Fund Market

    9.11        13.52        10.92         9.11        88.49        105.75  

Index

    10.79        14.34        11.88               10.79        95.47        118.33  

GROWTH OF $10,000 INVESTMENT

 

(SINCE INCEPTION AT NET ASSET VALUE)

 

 

LOGO

The inception date of the Fund was September 16, 2015. The first day of secondary market trading was September 17, 2015.

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

Expense Example

 

    Actual          

Hypothetical 5% Return

          
                                                              

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
         

Beginning

Account Value

(03/01/22)

      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $      1,000.00          $      974.40          $      3.68             $      1,000.00        $      1,021.50          $      3.77          0.74

 

  (a)

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

 

 

 

F U N D   S U M M A R Y

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Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Saudi Arabia ETF

 

Portfolio Management Commentary

Stocks in Saudi Arabia advanced for the reporting period. Prices for crude oil, which accounts for 70% of the nation’s exports and more than half of its government revenue, fluctuated dramatically during the reporting period, particularly after Russia’s invasion of Ukraine. Following the invasion, many global economies stopped accepting shipments of Russian oil and looked to other sources for supplies. Saudi Arabia’s government surplus rose 50% during the reporting period amid high oil prices and increased production. That helped the nation somewhat offset the impact of rising global inflation, slowing global economic growth, and rising interest rates.

The financials sector contributed the most to the Index’s return, as earnings in the banking industry, fueled by income from high oil prices, rose for the nation’s largest lenders. Increased financing, higher banking service fees, and higher investment income further supported earnings. Banks benefited from a strong domestic economy, which reached the highest growth rate in a decade as it recovered from the height of the coronavirus-driven economic slowdown. With oil prices elevated, bond rating services expected credit ratings to remain strong for Saudi Arabian lenders. In addition, Saudi Arabia’s central bank instituted a financial support package for banks aimed at improving liquidity and boosting lending.

The materials sector also contributed to the Index’s performance, driven by higher earnings and plans to increase capital at a state-owned mining company. Stocks in the energy sector also advanced, as a state-owned oil company posted substantially higher profits.

On the downside, the consumer discretionary sector detracted from the Index’s return, as sales fell for a large retailer amid rising costs. The communication services sector also declined as a state-owned telecommunications provider’s rising expenses weighed on earnings.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    45.8

Materials

    22.3  

Energy

    8.0  

Communication Services

    7.2  

Health Care

    3.8  

Consumer Staples

    3.7  

Utilities

    2.9  

Consumer Discretionary

    2.6  

Real Estate

    1.9  

Industrials

    1.6  

Information Technology

    0.2  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Al Rajhi Bank

    14.0

Saudi National Bank (The)

    12.1  

Saudi Basic Industries Corp.

    7.0  

Saudi Arabian Oil Co.

    6.9  

Saudi Arabian Mining Co.

    4.7  

Saudi Telecom Co.

    4.5  

Riyad Bank

    4.0  

Alinma Bank

    3.2  

Saudi British Bank (The)

    3.0  

SABIC Agri-Nutrients Co.

    2.6  
  (a)

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary as of August 31, 2022       iShares® MSCI UAE ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

    13.30      2.49      (1.10 )%        13.30      13.10      (8.81 )% 

Fund Market

    13.79        2.67        (0.98       13.79        14.08        (7.85

Index

    14.68        3.42        (0.34             14.68        18.33        (2.77

GROWTH OF $10,000 INVESTMENT

 

(SINCE INCEPTION AT NET ASSET VALUE)

 

 

LOGO

The inception date of the Fund was April 29, 2014. The first day of secondary market trading was May 1, 2014.

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

Expense Example

 

    Actual          

Hypothetical 5% Return

          
                                                              

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

         

Beginning

Account Value

(03/01/22)

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $       1,000.00          $       944.50          $        2.89             $      1,000.00        $      1,022.20          $        3.01          0.59

 

  (a)

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

 

 

 

F U N D   S U M M A R Y

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Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI UAE ETF

 

Portfolio Management Commentary

Stocks in the United Arab Emirates (“U.A.E.”) advanced significantly for the reporting period as rising oil production and improving economic output outside of the energy sector boosted growth. Prices for crude oil and natural gas, which accounts for about 30% of the nation’s overall output, fluctuated dramatically during the reporting period, particularly after Russia’s invasion of Ukraine. Following the invasion, many global economies stopped accepting shipments of Russian oil and looked to other sources for supplies. The U.A.E. government relies on exports from the energy sector for a considerable majority of its revenue, and the country’s budgetary surplus increased significantly amid expanding production and high prices.

The financials sector contributed the most to the Index’s return, as earnings in the banking industry, supported by high oil prices and a growing economy, rose substantially for the nation’s largest lenders. Banks reported a significant increase in their net interest income, the difference between what they earn from lending and the interest they pay on deposits. Financing and customer deposits also increased along with asset levels, helping maintain capital and liquidity ratios comfortably within regulatory requirements. In addition, increased noninterest income from investment banking and trading helped boost earnings, as did the U.A.E.’s continued economic recovery from the height of the COVID-19 pandemic.

The real estate sector also contributed to the Index’s performance as property managers and developers experienced significant revenue and earnings gains, driven by ongoing and consistent demand in the international hub of Dubai. Sales and earnings also increased from new and existing property developments in the capital city of Abu Dhabi, where demand from expatriates and foreign investors continued to expand.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    45.4

Communication Services

    24.2  

Real Estate

    11.6  

Industrials

    10.3  

Consumer Discretionary

    4.4  

Energy

    2.4  

Consumer Staples

    1.7  

Health Care

    0.0 (b)  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

First Abu Dhabi Bank PJSC

    22.2

Emirates Telecommunications Group Co. PJSC

    21.9  

Emaar Properties PJSC

    4.8  

Aldar Properties PJSC

    4.6  

Emirates NBD Bank PJSC

    4.5  

Abu Dhabi Islamic Bank PJSC

    4.5  

Abu Dhabi Commercial Bank PJSC

    4.4  

Abu Dhabi National Oil Co. for Distribution PJSC

    4.4  

Dubai Islamic Bank PJSC

    4.3  

Dubai Investments PJSC

    3.1  
  (a)

Excludes money market funds.

 
  (b) 

Rounds to less than 0.1%.

 

 

 

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About Fund Performance

 

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

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

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

Disclosure of Expenses

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

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

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

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

 

 

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

  25


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI Brazil Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 2.9%  

Embraer SA(a)

    909,144     $   2,415,110  
   

 

 

 
Auto Components — 0.8%  

Mahle-Metal Leve SA

    49,605       231,701  

Tupy SA

    92,890       476,913  
   

 

 

 
      708,614  
Biotechnology — 0.3%            

Blau Farmaceutica SA(a)

    46,434       284,188  
   

 

 

 
Commercial Services & Supplies — 1.5%  

Ambipar Participacoes e Empreendimentos SA

    58,207       306,229  

GPS Participacoes e Empreendimentos SA(b)

    346,221       905,083  
   

 

 

 
      1,211,312  
Communications Equipment — 0.7%            

Intelbras SA Industria de Telecomunicacao Eletronica Brasileira

    106,340       564,569  
   

 

 

 
Diversified Consumer Services — 3.2%            

Anima Holding SA(a)

    390,280       379,597  

Cogna Educacao(a)

    2,428,769       1,157,802  

Cruzeiro do Sul Educacional SA

    223,205       199,505  

YDUQS Participacoes SA

    380,119       899,443  
   

 

 

 
      2,636,347  
Electric Utilities — 7.1%            

AES Brasil Energia SA

    67,337       1,036  

Alupar Investimento SA

    189,688       1,037,333  

Cia. Paranaense de Energia

    88,873       590,220  

Cia. Paranaense de Energia, New

    219,263       276,481  

EDP - Energias do Brasil SA

    338,098       1,474,597  

Infracommerce CXAAS SA

    51,220       4,923  

Light SA

    336,023       365,579  

Transmissora Alianca de Energia Eletrica SA

    267,016       2,139,249  
   

 

 

 
      5,889,418  
Electrical Equipment — 0.2%            

Aeris Industria E Comercio De Equipamentos Para Geracao De Energia SA

    297,579       132,705  
   

 

 

 
Food & Staples Retailing — 6.6%  

Cia. Brasileira de Distribuicao

    209,641       874,041  

Grupo Mateus SA(a)

    714,764       882,052  

Sendas Distribuidora SA

    1,044,657       3,622,765  
   

 

 

 
      5,448,858  
Food Products — 8.3%            

BrasilAgro - Co. Brasileira de Propriedades Agricolas

    59,368       326,830  

Camil Alimentos SA

    162,743       313,136  

Jalles Machado SA

    134,064       193,788  

M. Dias Branco SA

    109,337       888,374  

Marfrig Global Foods SA

    447,323       1,130,689  

Minerva SA

    353,860       1,050,887  

Sao Martinho SA

    205,907       1,260,994  

SLC Agricola SA

    151,063       1,411,207  

Tres Tentos Agroindustrial SA

    159,332       334,136  
   

 

 

 
      6,910,041  
Health Care Providers & Services — 3.4%            

CM Hospitalar SA

    129,042       441,517  

Fleury SA

    247,222       748,927  

Hospital Mater Dei SA

    123,862       215,706  

Instituto Hermes Pardini SA

    59,069       222,656  

Odontoprev SA

    366,982       634,163  
Security   Shares     Value  
Health Care Providers & Services (continued)  

Oncoclinicas do Brasil Servicos Medicos SA(a)

    192,224     $ 229,823  

Qualicorp Consultoria e Corretora de Seguros SA

    185,012       342,114  
   

 

 

 
      2,834,906  
Hotels, Restaurants & Leisure — 1.8%            

CVC Brasil Operadora e Agencia de Viagens SA(a)

    360,133       528,182  

Smartfit Escola de Ginastica e Danca SA(a)

    302,968       969,051  
   

 

 

 
      1,497,233  
Household Durables — 2.8%            

Cyrela Brazil Realty SA Empreendimentos e Participacoes

    388,255       1,056,760  

Ez Tec Empreendimentos e Participacoes SA

    142,660       495,241  

MRV Engenharia e Participacoes SA

    406,773       803,006  
   

 

 

 
      2,355,007  
Independent Power and Renewable Electricity Producers — 7.5%  

AES Brasil Energia SA

    253,464       472,590  

Auren Energia SA

    323,819       956,693  

Eneva SA(a)

    1,330,615       3,964,426  

Omega Energia SA(a)

    368,642       796,466  
   

 

 

 
      6,190,175  
Insurance — 2.6%            

IRB Brasil Resseguros S/A(a)

    1,225,244       386,245  

Sul America SA

    365,558       1,735,599  
   

 

 

 
      2,121,844  
Interactive Media & Services — 0.2%            

Meliuz SA(a)(b)

    735,077       185,098  
   

 

 

 
IT Services — 3.5%  

Cielo SA

    1,581,413       1,671,877  

Infracommerce CXAAS SA(a)

    161,934       177,423  

Locaweb Servicos de Internet SA(a)(b)

    572,035       1,028,088  
   

 

 

 
      2,877,388  
Machinery — 0.6%            

Iochpe Maxion SA

    179,599       469,504  
   

 

 

 
Marine — 0.4%  

Hidrovias do Brasil SA(a)

    636,839       296,238  
   

 

 

 
Metals & Mining — 0.8%  

Bradespar SA

    44,639       179,761  

Cia. Brasileira de Aluminio

    191,932       474,074  
   

 

 

 
      653,835  
Oil, Gas & Consumable Fuels — 3.7%            

3R Petroleum Oleo E Gas SA(a)

    235,648       1,693,618  

Enauta Participacoes SA

    138,272       444,127  

Petroreconcavo SA

    170,558       894,361  
   

 

 

 
      3,032,106  
Paper & Forest Products — 1.0%            

Dexco SA

    443,570       838,984  
   

 

 

 
Professional Services — 0.4%  

Boa Vista Servicos SA

    273,899       358,010  
   

 

 

 
Real Estate Management & Development — 7.5%  

Aliansce Sonae Shopping Centers SA

    188,202       635,974  

BR Malls Participacoes SA

    1,016,766       1,612,394  

BR Properties SA

    244,378       384,248  

Iguatemi SA

    234,097       885,559  

Iguatemi SA

    300,105       139,023  

JHSF Participacoes SA

    442,101       526,877  

LOG Commercial Properties e Participacoes SA

    59,645       306,686  

 

 

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Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Brazil Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Real Estate Management & Development (continued)  

Multiplan Empreendimentos Imobiliarios SA

    365,178     $ 1,691,679  
   

 

 

 
      6,182,440  
Road & Rail — 2.9%            

Movida Participacoes SA

    186,735       493,184  

SIMPAR SA

    433,948       892,519  

Vamos Locacao de Caminhoes Maquinas e Equipamentos SA

    379,631       1,029,639  
   

 

 

 
      2,415,342  
Specialty Retail — 3.3%            

Grupo SBF SA

    126,270       531,788  

Lojas Quero Quero S/A

    229,254       297,452  

Pet Center Comercio e Participacoes SA

    445,734       927,899  

Via S/A(a)

    1,652,688       1,022,923  
   

 

 

 
      2,780,062  
Technology Hardware, Storage & Peripherals — 0.3%  

Multilaser Industrial SA

    264,318       243,873  
   

 

 

 
Textiles, Apparel & Luxury Goods — 5.7%  

Arezzo Industria e Comercio SA

    85,222       1,513,631  

Grendene SA

    406,800       597,407  

Grupo De Moda Soma SA

    659,756       1,715,842  

Guararapes Confeccoes SA

    129,324       228,699  

Vivara Participacoes SA

    137,918       672,040  
   

 

 

 
      4,727,619  
Trading Companies & Distributors — 0.5%            

Armac Locacao Logistica E Servicos SA

    133,658       411,066  
   

 

 

 
Transportation Infrastructure — 2.2%  

EcoRodovias Infraestrutura e Logistica SA(a)

    317,675       357,830  

Santos Brasil Participacoes SA

    670,595       1,038,943  

Wilson Sons Holdings Brasil SA, NVS

    254,039       432,155  
   

 

 

 
      1,828,928  
Water Utilities — 1.5%            

Cia. de Saneamento de Minas Gerais-COPASA

    246,754       640,316  

Cia. de Saneamento do Parana

    191,136       635,969  
   

 

 

 
      1,276,285  
   

 

 

 

Total Common Stocks — 84.2%
(Cost: $63,645,742)

 

    69,777,105  
   

 

 

 

Preferred Stocks

 

Aerospace & Defense — 0.3%            

Taurus Armas SA, Preference Shares, NVS

    83,093       277,594  
   

 

 

 
Airlines — 2.0%  

Azul SA, Preference Shares, NVS(a)

    368,903       1,169,308  

Gol Linhas Aereas Inteligentes SA, Preference Shares, NVS(a)

    240,189       466,306  
   

 

 

 
      1,635,614  
Banks — 1.9%            

Banco ABC Brasil SA, Preference Shares, NVS

    108,859       405,731  
Security   Shares     Value  
Banks (continued)            

Banco do Estado do Rio Grande do Sul SA, Class B, Preference Shares, NVS

    263,137     $ 566,495  

Banco Pan SA, Preference Shares, NVS

    418,479       590,427  
   

 

 

 
      1,562,653  
Chemicals — 1.5%            

Unipar Carbocloro SA, Class B, Preference Shares, NVS

    63,370       1,248,544  
   

 

 

 
Electric Utilities — 2.1%            

Cia. Energetica do Ceara, Class A, Preference Shares, NVS

    18,274       158,067  

Cia. Paranaense de Energia, Preference Shares, NVS

    1,155,568       1,548,191  
   

 

 

 
      1,706,258  
Machinery — 0.9%            

Marcopolo SA, Preference Shares, NVS

    623,910       314,210  

Randon SA Implementos e Participacoes, Preference Shares, NVS

    233,082       425,626  
   

 

 

 
      739,836  
Metals & Mining — 4.4%            

Bradespar SA, Preference Shares, NVS

    329,703       1,387,283  

Cia. Ferro Ligas da Bahia-Ferbasa, Preference Shares, NVS.

    45,521       461,650  

Metalurgica Gerdau SA, Preference Shares, NVS

    935,474       1,792,764  
   

 

 

 
      3,641,697  
Textiles, Apparel & Luxury Goods — 1.4%            

Alpargatas SA, Preference Shares, NVS

    288,940       1,146,341  
   

 

 

 
Water Utilities — 0.4%  

Cia. de Saneamento do Parana, Preference Shares, NVS

    537,770       365,928  
   

 

 

 

Total Preferred Stocks — 14.9%
(Cost: $10,751,935)

 

    12,324,465  
   

 

 

 

Total Long-Term Investments — 99.1%
(Cost: $74,397,677)

 

    82,101,570  
   

 

 

 

Short-Term Securities

 

Money Market Funds — 0.0%  

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(c)(d)

    40,000       40,000  
   

 

 

 

Total Short-Term Securities — 0.0%
(Cost: $40,000)

 

    40,000  
   

 

 

 

Total Investments in Securities — 99.1%
(Cost: $74,437,677)

 

    82,141,570  

Other Assets Less Liabilities — 0.9%

 

    723,522  
   

 

 

 

Net Assets — 100.0%

    $  82,865,092  
   

 

 

 

 

(a)

Non-income producing security.

 
(b)

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

 
(c)

Affiliate of the Fund.

 
(d)

Annualized 7-day yield as of period end.

 

 

 

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

  27


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Brazil Small-Cap ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
08/31/21
     Purchases
at Cost
     Proceeds
from Sale
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
08/31/22
     Shares
Held at
08/31/22
     Income     

Capital

Gain

Distributions
from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares

   $ 100,000      $        $(60,000) (a)     $      $      $ 40,000        40,000      $ 718      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a)

Represents net amount purchased (sold).

 

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

       

MSCI Brazil Index

    13       09/16/22     $ 636     $ 27,055  
       

 

 

 

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)

   $      $      $ 27,055      $      $      $      $ 27,055  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

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

 

For the period ended August 31, 2022, 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

   $      $      $ (92,537    $      $      $      $ (92,537
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 56,247      $      $      $      $ 56,247  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — long

   $ 786,894  

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.

 

 

28  

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


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Brazil Small-Cap ETF

 

Fair Value Hierarchy as of Period End (continued)

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

 

                                                                                       

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

 

Common Stocks

   $ 69,777,105      $      $      $ 69,777,105  

Preferred Stocks

     12,324,465                      12,324,465  

Money Market Funds

     40,000                      40,000  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 82,141,570      $      $      $ 82,141,570  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 27,055      $      $      $ 27,055  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

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

 

See notes to financial statements.

 

 

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

  29


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 0.2%  

AECC Aviation Power Co. Ltd., Class A

    629,676     $ 4,176,186  

AVIC Electromechanical Systems Co. Ltd., Class A

    1,001,800       1,604,033  

AviChina Industry & Technology Co. Ltd., Class H(a)

    10,089,000       4,910,654  

Kuang-Chi Technologies Co. Ltd., Class A(b)

    550,900       1,443,509  
   

 

 

 
      12,134,382  
Air Freight & Logistics — 0.7%            

SF Holding Co. Ltd., Class A

    1,101,883       7,851,087  

YTO Express Group Co. Ltd., Class A

    787,000       2,232,853  

Yunda Holding Co. Ltd., Class A

    787,557       1,912,918  

ZTO Express Cayman Inc., ADR

    1,570,548       40,912,775  
   

 

 

 
      52,909,633  
Airlines — 0.2%            

Air China Ltd., Class A(b)

    1,574,014       2,339,858  

Air China Ltd., Class H(a)(b)

    6,318,000       5,061,049  

China Eastern Airlines Corp. Ltd., Class A(b)

    3,148,096       2,231,079  

China Southern Airlines Co. Ltd., Class A(b)

    3,069,334       2,852,072  

China Southern Airlines Co. Ltd., Class H(b)

    4,744,000       2,560,618  
   

 

 

 
      15,044,676  
Auto Components — 0.5%            

Changzhou Xingyu Automotive Lighting Systems Co. Ltd., Class A

    78,795       1,595,659  

Fuyao Glass Industry Group Co. Ltd., Class A

    393,598       2,222,086  

Fuyao Glass Industry Group Co. Ltd., Class H(c)

    2,203,600       10,515,219  

Huayu Automotive Systems Co. Ltd., Class A

    865,772       2,331,916  

Huizhou Desay Sv Automotive Co. Ltd., Class A

    157,900       3,479,731  

Minth Group Ltd.

    3,148,000       8,907,814  

Ningbo Tuopu Group Co. Ltd., Class A

    236,100       2,685,168  

Sailun Group Co. Ltd., Class A

    708,300       1,161,648  

Shandong Linglong Tyre Co. Ltd., Class A

    393,528       1,293,223  

Shenzhen Kedali Industry Co. Ltd., Class A

    78,700       1,269,534  
   

 

 

 
      35,461,998  
Automobiles — 5.1%            

BYD Co. Ltd., Class A

    408,469       16,896,804  

BYD Co. Ltd., Class H

    3,097,500       95,450,450  

Chongqing Changan Automobile Co. Ltd., Class A

    1,980,240       4,141,939  

Dongfeng Motor Group Co. Ltd., Class H

    10,102,000       6,405,152  

Geely Automobile Holdings Ltd.

    22,068,000       44,339,416  

Great Wall Motor Co. Ltd., Class A

    472,200       2,276,715  

Great Wall Motor Co. Ltd., Class H

    11,810,500       17,719,656  

Guangzhou Automobile Group Co. Ltd., Class A

    1,023,100       2,051,418  

Guangzhou Automobile Group Co. Ltd., Class H

    10,756,400       9,248,461  

Li Auto Inc., ADR(a)(b)

    2,043,134       58,780,965  

NIO Inc., ADR(a)(b)

    5,107,266       101,685,666  

SAIC Motor Corp. Ltd., Class A

    2,046,204       4,562,481  

XPeng Inc., ADR(a)(b)

    1,578,281       29,229,764  

Yadea Group Holdings Ltd.(c)

    4,722,000       9,006,727  
   

 

 

 
          401,795,614  
Banks — 9.2%            

Agricultural Bank of China Ltd., Class A

    19,124,100       7,882,618  

Agricultural Bank of China Ltd., Class H

    106,738,000       34,877,883  

Bank of Beijing Co. Ltd., Class A

    6,296,099       3,758,800  

Bank of Chengdu Co. Ltd., Class A

    1,101,893       2,495,727  

Bank of China Ltd., Class A

    8,027,400       3,528,866  

Bank of China Ltd., Class H

    294,338,000       102,714,575  

Bank of Communications Co. Ltd., Class A

    9,601,422       6,356,743  

Bank of Communications Co. Ltd., Class H

    30,727,200       17,507,398  

Bank of Hangzhou Co. Ltd., Class A

    1,652,728       3,421,039  
Security   Shares     Value  
Banks (continued)  

Bank of Jiangsu Co. Ltd., Class A

    4,249,815     $ 4,446,825  

Bank of Nanjing Co. Ltd., Class A

    2,805,304       4,305,721  

Bank of Ningbo Co. Ltd., Class A

    1,549,432       6,661,116  

Bank of Shanghai Co. Ltd., Class A

    3,935,010       3,360,658  

China CITIC Bank Corp. Ltd., Class H

    32,268,800       13,833,957  

China Construction Bank Corp., Class A

    1,935,114       1,543,887  

China Construction Bank Corp., Class H

    357,487,000       220,992,345  

China Everbright Bank Co. Ltd., Class A

    10,545,800       4,373,555  

China Everbright Bank Co. Ltd., Class H

    7,148,000       2,191,309  

China Merchants Bank Co. Ltd., Class A

    4,800,725       24,246,516  

China Merchants Bank Co. Ltd., Class H

    14,565,650       74,490,349  

China Minsheng Banking Corp. Ltd., Class A

    8,578,370       4,465,366  

China Minsheng Banking Corp. Ltd., Class H

    19,289,660       6,136,005  

China Zheshang Bank Co. Ltd., Class A(b)

    4,524,200       2,125,725  

Huaxia Bank Co. Ltd., Class A

    3,935,061       2,923,022  

Industrial & Commercial Bank of China Ltd., Class A

    15,031,700       9,519,948  

Industrial & Commercial Bank of China Ltd., Class H

    207,891,000       105,617,538  

Industrial Bank Co. Ltd., Class A

    4,677,110       11,537,089  

Ping An Bank Co. Ltd., Class A

    4,492,355       8,256,488  

Postal Savings Bank of China Co. Ltd., Class A

    6,374,700       4,148,937  

Postal Savings Bank of China Co. Ltd., Class H(a)(c)

    28,354,000       16,926,522  

Shanghai Pudong Development Bank Co. Ltd., Class A

    7,004,324       7,356,837  
   

 

 

 
          722,003,364  
Beverages — 3.2%            

Anhui Gujing Distillery Co. Ltd., Class A

    89,496       3,296,041  

Anhui Gujing Distillery Co. Ltd., Class B

    472,580       7,215,790  

Anhui Yingjia Distillery Co. Ltd., Class A

    141,900       1,096,675  

China Resources Beer Holdings Co. Ltd.

    6,056,000       42,216,480  

Chongqing Brewery Co. Ltd., Class A

    157,400       2,537,261  

Jiangsu King’s Luck Brewery JSC Ltd., Class A

    314,803       2,100,827  

Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A

    314,876       7,469,099  

JiuGui Liquor Co. Ltd., Class A

    79,300       1,707,070  

Kweichow Moutai Co. Ltd., Class A

    282,355       78,490,119  

Luzhou Laojiao Co. Ltd., Class A

    335,300       11,334,186  

Nongfu Spring Co. Ltd., Class H(c)

    6,455,600       38,384,028  

Shanghai Bairun Investment Holding Group Co. Ltd., Class A

    270,716       910,060  

Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A

    236,386       10,008,532  

Sichuan Swellfun Co. Ltd., Class A

    100,652       1,060,127  

Tsingtao Brewery Co. Ltd., Class A

    157,463       2,453,311  

Tsingtao Brewery Co. Ltd., Class H(a)

    2,234,000       21,694,304  

Wuliangye Yibin Co. Ltd., Class A

    868,977       20,940,810  
   

 

 

 
      252,914,720  
Biotechnology — 1.2%            

3SBio Inc.(c)

    5,799,000       3,855,514  

BeiGene Ltd., ADR(a)(b)

    176,354       30,272,928  

Beijing Tiantan Biological Products Corp. Ltd., Class A

    377,926       1,211,832  

Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., Class A

    106,375       1,965,801  

BGI Genomics Co. Ltd., Class A

    157,499       1,372,886  

Bloomage Biotechnology Corp. Ltd.

    68,688       1,414,276  

Chongqing Zhifei Biological Products Co. Ltd., Class A

    393,540       5,339,463  

Hualan Biological Engineering Inc., Class A

    435,372       1,239,426  

Imeik Technology Development Co. Ltd., Class A

    33,000       2,657,452  

Innovent Biologics Inc.(a)(b)(c)

    3,687,000       15,542,644  

Legend Biotech Corp., ADR(a)(b)

    183,445       8,528,358  

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

    157,400       1,202,378  

Shanghai RAAS Blood Products Co. Ltd., Class A

    2,124,900       1,793,229  

 

 

30  

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


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Biotechnology (continued)  

Shenzhen Kangtai Biological Products Co. Ltd., Class A

    248,888     $ 1,209,201  

Walvax Biotechnology Co. Ltd., Class A

    393,597       2,476,383  

Zai Lab Ltd., ADR(a)(b)

    328,179       15,165,152  
   

 

 

 
      95,246,923  
Building Products — 0.1%            

Beijing New Building Materials PLC, Class A

    472,270       1,789,763  

China Lesso Group Holdings Ltd.

    3,946,000       4,690,223  

Guangdong Kinlong Hardware Products Co. Ltd., Class A

    79,300       1,092,412  

Zhuzhou Kibing Group Co. Ltd., Class A

    629,600       1,027,013  
   

 

 

 
      8,599,411  
Capital Markets — 1.7%            

Changjiang Securities Co. Ltd., Class A

    2,282,336       1,871,536  

China Cinda Asset Management Co. Ltd., Class H

    28,447,000       3,906,420  

China Galaxy Securities Co. Ltd., Class A

    1,122,400       1,603,830  

China Galaxy Securities Co. Ltd., Class H

    11,821,000       6,462,715  

China International Capital Corp. Ltd., Class A

    314,702       1,891,320  

China International Capital Corp. Ltd., Class H(c)

    5,485,600       9,650,826  

China Merchants Securities Co. Ltd., Class A

    1,810,168       3,463,155  

CITIC Securities Co. Ltd., Class A

    2,834,646       7,974,330  

CITIC Securities Co. Ltd., Class H

    7,526,300       15,254,582  

CSC Financial Co. Ltd., Class A

    1,101,899       4,228,599  

Dongxing Securities Co. Ltd., Class A

    1,101,811       1,321,894  

East Money Information Co. Ltd., Class A

    2,924,176       9,331,710  

Everbright Securities Co. Ltd., Class A

    944,499       2,187,056  

First Capital Securities Co. Ltd., Class A

    1,259,289       1,117,741  

Founder Securities Co. Ltd., Class A

    2,597,109       2,606,145  

GF Securities Co. Ltd., Class A

    1,527,099       3,610,457  

GF Securities Co. Ltd., Class H

    3,786,200       4,945,938  

Guosen Securities Co. Ltd., Class A

    1,888,833       2,518,642  

Guotai Junan Securities Co. Ltd., Class A

    2,098,759       4,477,339  

Guoyuan Securities Co. Ltd., Class A

    1,401,370       1,480,462  

Haitong Securities Co. Ltd., Class A

    2,439,759       3,336,212  

Haitong Securities Co. Ltd., Class H

    8,827,600       5,779,605  

Hithink RoyalFlush Information Network Co. Ltd., Class A

    110,487       1,354,271  

Huatai Securities Co. Ltd., Class A

    2,203,693       4,174,980  

Huatai Securities Co. Ltd., Class H(c)

    4,881,600       6,524,853  

Huaxi Securities Co. Ltd., Class A

    1,180,573       1,364,373  

Industrial Securities Co. Ltd., Class A(b)

    2,455,492       2,196,795  

Orient Securities Co. Ltd., Class A

    2,100,321       2,621,828  

Sealand Securities Co. Ltd., Class A

    2,439,760       1,256,926  

Shanxi Securities Co. Ltd., Class A

    1,311,831       1,100,648  

Shenwan Hongyuan Group Co. Ltd., Class A

    6,734,079       4,061,441  

Sinolink Securities Co. Ltd., Class A

    865,726       1,078,416  

SooChow Securities Co. Ltd., Class A

    1,611,435       1,594,781  

Western Securities Co. Ltd., Class A

    1,810,130       1,691,609  

Zheshang Securities Co. Ltd., Class A

    1,023,100       1,611,905  

Zhongtai Securities Co. Ltd.

    1,259,200       1,346,530  
   

 

 

 
      130,999,870  
Chemicals — 1.2%            

CNGR Advanced Material Co. Ltd.

    78,700       1,057,503  

Do-Fluoride New Materials Co. Ltd., Class A

    236,100       1,380,188  

Dongyue Group Ltd.

    6,363,000       7,141,466  

Guangzhou Tinci Materials Technology Co. Ltd., Class A

    473,000       3,238,905  

Hangzhou Oxygen Plant Group Co. Ltd., Class A

    236,100       1,210,664  

Hengli Petrochemical Co. Ltd., Class A

    1,495,310       4,143,701  

Hengyi Petrochemical Co. Ltd., Class A

    1,416,676       1,851,184  
Security   Shares     Value  
Chemicals (continued)  

Hoshine Silicon Industry Co. Ltd., Class A

    157,400     $ 2,546,031  

Huafon Chemical Co. Ltd., Class A

    1,380,300       1,497,024  

Hubei Xingfa Chemicals Group Co. Ltd., Class A

    314,800       1,753,404  

Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A

    2,570,970       1,615,332  

Inner Mongolia Yuan Xing Energy Co. Ltd., Class A

    944,400       1,157,228  

Jiangsu Eastern Shenghong Co. Ltd., Class A

    1,024,800       2,841,098  

Kingfa Sci & Tech Co. Ltd., Class A

    944,400       1,464,440  

LB Group Co. Ltd., Class A

    629,600       1,595,640  

Ningbo Shanshan Co. Ltd.

    684,991       2,453,491  

Ningxia Baofeng Energy Group Co. Ltd., Class A

    1,694,600       3,319,021  

Qinghai Salt Lake Industry Co. Ltd., Class A(b)

    787,000       3,167,369  

Rongsheng Petrochemical Co. Ltd., Class A

    2,437,492       4,976,005  

Satellite Chemical Co. Ltd., Class A

    611,831       1,935,818  

Shandong Hualu Hengsheng Chemical Co. Ltd., Class A

    629,670       2,652,218  

Shanghai Putailai New Energy Technology Co. Ltd., Class A

    314,800       2,870,293  

Shenzhen Capchem Technology Co. Ltd., Class A

    206,520       1,249,783  

Shenzhen Dynanonic Co. Ltd.

    13,200       609,519  

Shenzhen Senior Technology Co. Ltd., Class A

    292,697       971,759  

Sinoma Science & Technology Co. Ltd., Class A

    472,200       1,575,457  

Skshu Paint Co. Ltd., Class A(b)

    96,100       1,292,812  

SuZhou TA&A Ultra Clean Technology Co. Ltd., Class A

    157,400       1,763,253  

Tianqi Lithium Corp., Class A(b)

    236,100       3,904,750  

Tongkun Group Co. Ltd., Class A

    708,364       1,458,560  

Transfar Zhilian Co. Ltd., Class A

    1,259,216       1,012,584  

Wanhua Chemical Group Co. Ltd., Class A

    787,073       10,054,691  

Weihai Guangwei Composites Co. Ltd., Class A

    157,400       1,725,650  

Yunnan Energy New Material Co. Ltd., Class A

    208,204       5,795,946  

Yunnan Yuntianhua Co. Ltd.(b)

    236,100       905,776  

Zangge Mining Co. Ltd.

    236,100       1,069,841  

Zhejiang Juhua Co. Ltd., Class A

    236,100       536,630  

Zhejiang Yongtai Technology Co. Ltd., Class A

    236,100       928,666  
   

 

 

 
      90,723,700  
Commercial Services & Supplies — 0.1%            

Beijing Originwater Technology Co. Ltd., Class A

    1,574,061       1,250,084  

China Everbright Environment Group Ltd.

    13,379,148       6,612,811  

Shanghai M&G Stationery Inc., Class A

    236,100       1,514,265  
   

 

 

 
      9,377,160  
Communications Equipment — 0.3%            

BYD Electronic International Co. Ltd.(a)

    2,367,500       6,255,239  

Fiberhome Telecommunication Technologies Co. Ltd., Class A

    348,877       724,449  

Guangzhou Haige Communications Group Inc. Co., Class A

    1,259,284       1,587,952  

Yealink Network Technology Corp. Ltd., Class A

    186,894       1,929,021  

Zhongji Innolight Co. Ltd., Class A

    236,177       998,723  

ZTE Corp., Class A

    895,056       3,159,726  

ZTE Corp., Class H

    2,833,240       5,981,844  
   

 

 

 
      20,636,954  
Construction & Engineering — 0.7%            

China Communications Services Corp. Ltd., Class H

    9,444,800       4,055,565  

China Conch Venture Holdings Ltd.

    6,301,500       12,860,016  

China Energy Engineering Corp. Ltd.

    6,735,700       2,196,978  

China National Chemical Engineering Co. Ltd., Class A

    1,574,095       1,955,582  

China Railway Group Ltd., Class A

    3,937,098       3,271,201  

China Railway Group Ltd., Class H

    16,353,000       9,361,978  

 

 

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

  31


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Construction & Engineering (continued)  

China State Construction Engineering Corp. Ltd., Class A

    10,073,638     $ 7,481,230  

China State Construction International Holdings Ltd.

    7,870,000       9,087,105  

Metallurgical Corp. of China Ltd., Class A

    5,587,700       2,588,524  

Power Construction Corp. of China Ltd., Class A

    4,013,797       4,467,688  

Sichuan Road & Bridge Co. Ltd., Class A

    1,023,100       1,575,968  
   

 

 

 
      58,901,835  
Construction Materials — 0.6%            

Anhui Conch Cement Co. Ltd., Class A

    1,133,591       5,223,441  

Anhui Conch Cement Co. Ltd., Class H

    4,328,500       16,495,276  

China Jushi Co. Ltd., Class A

    1,180,505       2,455,845  

China National Building Material Co. Ltd., Class H

    14,166,000       13,376,524  

China Resources Cement Holdings Ltd.(a)

    9,444,000       5,821,367  
   

 

 

 
      43,372,453  
Consumer Finance — 0.2%            

360 DigiTech Inc.(a)

    396,648       6,338,435  

Lufax Holding Ltd., ADR

    2,578,013           11,265,917  
   

 

 

 
      17,604,352  
Distributors — 0.0%            

Wuchan Zhongda Group Co. Ltd., Class A

    1,495,303       992,960  
   

 

 

 
Diversified Consumer Services — 0.3%  

New Oriental Education & Technology Group Inc.(b)

    5,666,490       16,356,321  

TAL Education Group, ADR(b)

    1,655,364       9,568,004  
   

 

 

 
      25,924,325  
Diversified Financial Services — 0.1%            

AVIC Industry-Finance Holdings Co. Ltd., Class A

    3,069,382       1,498,617  

Far East Horizon Ltd.

    5,941,000       4,500,626  
   

 

 

 
      5,999,243  
Diversified Telecommunication Services — 0.3%  

China Tower Corp. Ltd., Class H(c)

    163,696,000       20,412,539  
   

 

 

 
Electrical Equipment — 1.3%  

Beijing Easpring Material Technology Co. Ltd., Class A

    115,900       1,309,254  

Contemporary Amperex Technology Co. Ltd., Class A(b)

    511,270       35,438,372  

Dongfang Electric Corp. Ltd., Class A

    708,300       2,010,352  

Eve Energy Co. Ltd., Class A

    480,636       6,538,842  

Fangda Carbon New Material Co. Ltd., Class A(b)

    1,259,247       1,266,073  

Ginlong Technologies Co. Ltd., Class A

    110,300       3,639,616  

Gotion High-tech Co. Ltd., Class A

    431,400       2,130,030  

Hongfa Technology Co. Ltd., Class A

    302,491       1,643,157  

Jiangsu Zhongtian Technology Co. Ltd., Class A

    787,000       2,522,988  

Ming Yang Smart Energy Group Ltd., Class A

    472,200       1,824,655  

NARI Technology Co. Ltd., Class A

    1,603,012       6,337,341  

Ningbo Orient Wires & Cables Co. Ltd.

    220,531       2,280,331  

Ningbo Ronbay New Energy Technology Co. Ltd.

    110,180       1,635,504  

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

    2,911,900       1,782,697  

Sungrow Power Supply Co. Ltd., Class A

    338,200       5,411,633  

Sunwoda Electronic Co. Ltd., Class A

    472,208       1,850,014  

Suzhou Maxwell Technologies Co. Ltd., Class A

    61,592       4,147,065  

TBEA Co. Ltd., Class A

    1,023,157       3,653,833  

Titan Wind Energy Suzhou Co. Ltd., Class A

    393,500       783,600  

Xinjiang Goldwind Science & Technology Co. Ltd., Class A

    710,420       1,311,932  

Xinjiang Goldwind Science & Technology Co. Ltd., Class H

    2,844,520       4,238,795  

Zhejiang Chint Electrics Co. Ltd., Class A

    550,968       2,511,604  

Zhuzhou CRRC Times Electric Co. Ltd.

    2,282,300       11,036,065  
   

 

 

 
      105,303,753  
Security   Shares     Value  
Electronic Equipment, Instruments & Components — 1.3%  

AAC Technologies Holdings Inc.(a)

    2,754,500     $ 5,103,051  

Avary Holding Shenzhen Co. Ltd., Class A

    436,100       1,862,003  

BOE Technology Group Co. Ltd., Class A

    8,893,100       4,747,771  

Chaozhou Three-Circle Group Co. Ltd., Class A

    526,377       2,057,279  

China Zhenhua Group Science & Technology Co. Ltd., Class A

    134,600       2,177,727  

Foxconn Industrial Internet Co. Ltd., Class A

    2,124,986       2,850,086  

GoerTek Inc., Class A

    787,000       3,687,762  

Guangzhou Shiyuan Electronic Technology Co. Ltd., Class A

    157,419       1,536,781  

Kingboard Holdings Ltd.

    2,754,500       8,697,879  

Kingboard Laminates Holdings Ltd.(a)

    3,557,500       3,393,544  

Lens Technology Co. Ltd., Class A

    1,259,242       1,969,914  

Lingyi iTech Guangdong Co., Class A(b)

    2,118,413       1,680,290  

Luxshare Precision Industry Co. Ltd., Class A

    1,646,241       8,895,167  

Maxscend Microelectronics Co. Ltd., Class A

    125,752       1,841,224  

Raytron Technology Co. Ltd., Class A

    70,314       441,751  

Shengyi Technology Co. Ltd., Class A

    708,300       1,625,213  

Shennan Circuits Co. Ltd., Class A

    96,324       1,179,051  

Sunny Optical Technology Group Co. Ltd.

    2,676,900       36,546,242  

Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A

    393,500       1,464,792  

Tianma Microelectronics Co. Ltd., Class A

    944,436       1,285,962  

Unisplendour Corp. Ltd., Class A

    676,327       1,686,106  

Westone Information Industry Inc., Class A

    213,300       1,031,944  

Wingtech Technology Co. Ltd., Class A

    314,800       2,929,523  

Wuhan Guide Infrared Co. Ltd., Class A

    893,549       1,841,320  

WUS Printed Circuit Kunshan Co. Ltd., Class A

    865,718       1,491,485  

Zhejiang Dahua Technology Co. Ltd., Class A

    868,900       1,844,750  
   

 

 

 
          103,868,617  
Energy Equipment & Services — 0.1%            

China Oilfield Services Ltd., Class H

    7,870,000       8,174,044  

Offshore Oil Engineering Co. Ltd., Class A

    1,214,698       789,760  

Yantai Jereh Oilfield Services Group Co. Ltd., Class A

    236,192       1,296,358  
   

 

 

 
      10,260,162  
Entertainment — 2.6%            

37 Interactive Entertainment Network Technology Group Co. Ltd., Class A

    629,600       1,844,311  

Alibaba Pictures Group Ltd.(b)

    47,220,000       3,714,664  

Beijing Enlight Media Co. Ltd., Class A

    821,100       1,095,036  

Bilibili Inc., ADR(b)

    143,406       3,579,414  

Bilibili, Inc.(a)(b)

    523,919       13,030,676  

China Ruyi Holdings Ltd.(a)(b)

    18,132,000       4,601,291  

Giant Network Group Co. Ltd., Class A

    1,101,871       1,367,428  

iQIYI Inc., ADR(a)(b)

    1,245,410       4,558,201  

Kingsoft Corp. Ltd.

    3,465,000       10,531,124  

Kunlun Tech Co. Ltd., Class A

    393,561       831,299  

Mango Excellent Media Co. Ltd., Class A

    472,280       1,888,896  

NetEase Inc.

    7,712,660       137,727,928  

Perfect World Co. Ltd., Class A

    571,300       1,218,479  

Tencent Music Entertainment Group,
ADR(a)(b)

    2,576,638       13,166,620  

Zhejiang Century Huatong Group Co. Ltd., Class A(b)

    2,203,698       1,452,960  
   

 

 

 
      200,608,327  
Food & Staples Retailing — 0.0%            

DaShenLin Pharmaceutical Group Co. Ltd., Class A

    264,589       1,275,682  

Yifeng Pharmacy Chain Co. Ltd., Class A

    246,080       1,895,637  
   

 

 

 
      3,171,319  
Food Products — 2.1%            

Angel Yeast Co. Ltd., Class A

    236,111       1,655,323  

Anjoy Foods Group Co. Ltd., Class A

    79,300       1,775,390  

 

 

32  

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


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Food Products (continued)  

Beijing Dabeinong Technology Group Co. Ltd., Class A(b)

    1,259,200     $ 1,571,276  

China Feihe Ltd.(c)

    12,604,000       10,431,775  

China Mengniu Dairy Co. Ltd.

    12,129,000       54,923,474  

Chongqing Fuling Zhacai Group Co. Ltd., Class A

    236,123       1,035,965  

Dali Foods Group Co. Ltd.(c)

    7,783,000       3,558,015  

Foshan Haitian Flavouring & Food Co. Ltd., Class A

    856,129       9,961,069  

Guangdong Haid Group Co. Ltd., Class A

    427,597       3,769,466  

Henan Shuanghui Investment & Development Co. Ltd., Class A

    794,708       3,076,857  

Inner Mongolia Yili Industrial Group Co. Ltd., Class A

    1,416,623       7,316,631  

Jiangxi Zhengbang Technology Co. Ltd., Class A(b)

    1,023,100       882,244  

Juewei Food Co. Ltd., Class A

    147,985       997,000  

Muyuan Foods Co. Ltd., Class A

    1,236,399       10,445,772  

New Hope Liuhe Co. Ltd., Class A(b)

    1,180,599       2,674,101  

Tingyi Cayman Islands Holding Corp.(a)

    7,870,000       13,974,956  

Tongwei Co. Ltd., Class A

    1,101,899       8,404,858  

Uni-President China Holdings Ltd.

    4,754,000       4,092,945  

Want Want China Holdings Ltd.

    17,315,000       12,197,056  

Wens Foodstuffs Group Co. Ltd., Class A(b)

    1,574,016       5,391,085  

Yihai International Holding Ltd.

    1,771,000       4,460,087  

Yihai Kerry Arawana Holdings Co. Ltd., Class A

    288,677       1,902,012  
   

 

 

 
          164,497,357  
Gas Utilities — 1.2%        </