LOGO

  JULY 31, 2022

 

   2022 Annual Report

 

iShares Trust

 

·  

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

 

·  

iShares Cybersecurity and Tech ETF | IHAK | NYSE Arca

 

·  

iShares Exponential Technologies ETF | XT | NASDAQ

 

·  

iShares Genomics Immunology and Healthcare ETF | IDNA | NYSE Arca

 

·  

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

 

·  

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

 

·  

iShares U.S. Tech Breakthrough Multisector ETF | TECB | NYSE Arca

 

·  

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


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of July 31, 2022 saw the emergence of significant challenges that disrupted the economic recovery and strong financial markets. 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. Continued high inflation and the Fed’s statements led many analysts to anticipate that interest rates have room to rise before peaking, although investors’ inflation expectations began to decline near the end of the period.

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 believe that 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.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

Total Returns as of July 31, 2022

 

     6-Month    12-Month

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

  (7.81)%   (4.64)%

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

  (6.42)      (14.29)    

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

  (11.27)       (14.32)    

Emerging market equities
(MSCI Emerging Markets Index)

  (16.24)       (20.09)    

3-month Treasury bills
(ICE BofA 3-Month

U.S. Treasury Bill Index)

  0.21    0.22 

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

  (6.38)      (10.00)    

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

  (6.14)      (9.12)   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

  (3.95)      (6.93)   

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

  (6.58)      (8.03)   

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

 

 

 

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


Table of Contents

 

     Page  

The Markets in Review

    2  

Annual Report:

 

Market Overview

    4  

Fund Summary

    5  

About Fund Performance

    21  

Disclosure of Expenses

    21  

Schedules of Investments

    22  

Financial Statements:

 

Statements of Assets and Liabilities

    46  

Statements of Operations

    48  

Statements of Changes in Net Assets

    50  

Financial Highlights

    54  

Notes to Financial Statements

    62  

Report of Independent Registered Public Accounting Firm

    74  

Important Tax Information

    75  

Board Review and Approval of Investment Advisory Contract

    76  

Supplemental Information

    80  

Trustee and Officer Information

    81  

General Information

    84  

Glossary of Terms Used in this Report

    85  

 

 

  3


Market Overview

 

iShares Trust

Global Market Overview

Global equity markets declined during the 12 months ended July 31, 2022 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned -10.48% in U.S. dollar terms for the reporting period.

For the first five months 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 3.5% in July 2022 — identical to the pre-pandemic rate in February 2020. Although high inflation negatively impacted consumer sentiment, which declined significantly, consumer spending continued to increase.

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.

Stocks declined in Europe and economic growth stalled, with the Eurozone economy slowing substantially beginning in the fourth quarter of 2021. 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. 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.

 

 

4  

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Fund Summary as of July 31, 2022    iShares® Cloud 5G and Tech ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

    (13.46 )%       (8.50 )%        (13.46 )%       (9.70 )% 

Fund Market

    (13.54      (8.57       (13.54      (9.78

Index

    (13.65      (8.80             (13.65      (10.01

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

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

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

Expense Example

 

Actual           Hypothetical 5% Return         
 

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
           

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
    

Annualized
Expense
Ratio
 
 
 
    $ 1,000.00        $ 816.40        $ 2.12             $ 1,000.00        $ 1,022.50        $ 2.36        0.47

 

  (a) 

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

 

 

 

U N D  U M M A R Y

  5


Fund Summary as of July 31, 2022  (continued)    iShares® Cloud 5G and Tech ETF

 

Portfolio Management Commentary

Stocks of companies with significant exposure to cloud computing and 5G networking declined sharply for the reporting period. As the post-pandemic global recovery slowed, growth in demand for cloud computing declined as the need for remote work and distance education diminished. As global inflation increased, rising interest rates negatively impacted high-valuation growth-oriented stocks by lowering the current value of future earnings, decreasing demand and cash flows, and raising financing costs. High costs and technical difficulties surrounding the rollout of 5G networks also weighed on company earnings. In addition, ongoing COVID-related restrictions and disruptions to international supply chains negatively affected the market for chips used in consumer products.

U.S. equities, which represented approximately 71% of the Index on average during the reporting period, detracted the most from the Index’s return, led by the IT services industry. Revenue growth slowed and costs rose amid increasing competition for communications platforms as a service, weighing heavily on profits. In the software industry, ongoing supply chain disruptions delayed shipments of the hardware necessary for running software, leading to reduced sales. Finally, in the U.S. communication services sector, stocks in the cable and satellite industry declined due to falling subscriptions, as the trend for consumers to replace cable and satellite with streaming services continued.

The semiconductors industry in Taiwan also detracted substantially from the Index’s performance. During the reporting period, the Russian invasion of Ukraine raised concern that military force might be used against Taiwan, leading foreigners to decrease investments at a historic rate. Concerns about slowing global economic growth and rising inflation also increased outflows.

Information technology stocks in Japan also detracted meaningfully from the Index’s return, driven by the electronic components industry. Makers of components for smartphones experienced capacity shortages and production delays related to COVID-19 infections and restrictions. Additionally, the Japanese yen weakened to historic lows relative to the U.S. dollar, and the economy was challenged by a labor shortage and high oil prices.

Portfolio Information

 

INDUSTRY ALLOCATION

 

Sector    
Percent of
Total Investments
 
(a) 

Semiconductors & Semiconductor Equipment

    36.4

Software

    22.7  

Communications Equipment

    17.7  

Electronic Equipment, Instruments & Components

    7.2  

Technology Hardware, Storage & Peripherals

    4.1  

Chemicals

    2.8  

Construction & Engineering

    2.5  

IT Services

    2.1  

Media

    1.9  

Diversified Telecommunication Services

    1.7  

Equity Real Estate Investment Trusts (REITs)

    0.9  

 

  (a) 

Excludes money market funds.

 

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a)
 

United States

    66.6

Taiwan

    9.1  

Japan

    6.9  

Finland

    3.2  

Netherlands

    2.8  

Switzerland

    2.7  

Sweden

    2.6  

Germany

    2.1  

United Kingdom

    1.4  

Other (each representing less than 1%)

    2.6  

 

 

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Fund Summary as of July 31, 2022    iShares® Cybersecurity and Tech ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

    (15.73 )%       13.72       (15.73 )%       49.75

Fund Market

    (15.96      13.68         (15.96      49.55  

Index

    (15.66      14.11               (15.66      51.28  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

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

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

Expense Example

 

Actual           Hypothetical 5% Return         
 

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
           

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
    

Annualized
Expense
Ratio
 
 
 
    $ 1,000.00        $ 910.30        $ 2.23             $ 1,000.00        $ 1,022.50        $ 2.36        0.47

 

  (a)

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

 

 

 

U N D  U M M A R Y

  7


Fund Summary as of July 31, 2022   (continued)    iShares® Cybersecurity and Tech ETF

 

Portfolio Management Commentary

Stocks of global cybersecurity and technology companies declined substantially for the reporting period. After Russia’s invasion of Ukraine in early 2022, concerns that Russia would respond to economic sanctions by engaging in cyberattacks initially supported cybersecurity stocks. However, international technology stocks declined sharply amid slowing global economic growth as consumers shifted back from digital to real-world spending, raising concerns about demand for cybersecurity software. Rising global interest rates negatively impacted high-valuation growth-oriented stocks by lowering the current value of future earnings, decreasing demand, and raising financing costs. Increasing ransomware attacks, including high-profile attacks on large corporations and national governments, led to increased demand for cybersecurity systems, bolstering revenues.

U.S. equities, which represented approximately 78% of the Index on average during the reporting period, detracted the most from the Index’s return. In the software industry, the coronavirus pandemic drove strong demand for software for securely creating and signing digital documents. As many businesses returned to in-person work in 2022, growth in demand for digital signatures slowed sharply. Despite rising revenues, stocks of digital document management companies declined as relatively high valuations led investors to closely scrutinize earnings. In addition, stocks of a company that manages information during emergencies, which benefited from strong demand during the pandemic, declined sharply amid slowing demand and the departure of the company’s chief executive officer. The U.S. internet services and infrastructure industry was also a significant detractor. While demand for software to combat ongoing ransomware attacks grew, stock of a user authentication company declined sharply after the company experienced a data breach.

The Canadian software industry detracted modestly from the Index’s return despite strength in sales of cybersecurity software to protect cloud computing platforms. The ongoing war between Russian and Ukraine and rising interest rates pressured stocks in the software industry as investors sought less volatility. In Israel, sales and revenues in the software industry weakened amid ongoing supply-chain challenges.

Portfolio Information

 

INDUSTRY ALLOCATION

 

Sector    
Percent of
Total Investments
 
(a) 

Software

    68.6

Professional Services

    13.1  

IT Services

    9.2  

Communications Equipment

    9.1  

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

United States

    78.2

Israel

    7.5  

Japan

    4.7  

Canada

    2.3  

Taiwan

    2.3  

United Kingdom

    1.7  

Denmark

    1.5  

Germany

    1.1  

Other (each representing less than 1%)

    0.7  

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of July 31, 2022    iShares® Exponential Technologies ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

    (17.91 )%       10.92      11.52       (17.91 )%      67.89      123.33

Fund Market

    (18.04      10.85        11.51         (18.04     67.40        123.21  

Index

    (17.51      11.31        11.83           (17.51     70.89        127.79  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

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

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

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
           

Beginning
Account Value
(02/01/22)
 
 
 
   

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a)  
      

Annualized
Expense
Ratio
 
 
 
    $ 1,000.00        $ 878.10        $ 2.14             $ 1,000.00     $ 1,022.50        $ 2.31          0.46

 

  (a)

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

 

 

 

U N D  U M M A R Y

  9


Fund Summary as of July 31, 2022   (continued)    iShares® Exponential Technologies ETF

 

Portfolio Management Commentary

Stocks of global companies that create or use exponential technologies declined sharply for the reporting period. As global inflation increased, rising interest rates negatively impacted high-valuation growth-oriented stocks by lowering the current value of future earnings, decreasing demand and cash flows, and raising financing costs. Additionally, in-person work and commerce resumed, driving down demand for software and online services.

Stocks in the U.S., which represented approximately 61% of the Index on average during the reporting period, were the main detractors from the Index’s performance, led by the information technology sector. In the internet services and infrastructure industry, stocks of cloud software companies declined despite rising revenues, as relatively high valuations led investors to closely scrutinize earnings. While demand for software to combat ongoing ransomware attacks grew, stock of a user authentication company declined sharply after the company experienced a data breach.

Online payment company stocks also detracted from the Index’s return, reflecting ongoing disruptions to supply chains and a decrease in online shopping. In addition, a sharp fall in the price of Bitcoin negatively impacted financial technology companies holding cryptocurrencies on their balance sheet. In the software industry, stocks declined amid increased competition in the market for online video collaboration solutions and declining demand for teleconferencing software. The U.S. healthcare sector was also a detractor, as the healthcare equipment industry declined amid pandemic-related supply chain disruptions and reductions in robot-assisted surgeries.

Exponential technology stocks in China also weighed on the Index’s performance. In the biotechnology industry, an experimental drug developed to treat cancer failed to receive approval from an American regulator. Tension between the U.S. and China over companies’ accounting practices also raised the possibility of the delisting of some Chinese companies from American stock exchanges.

Japanese industrials stocks were also modest detractors from the Index’s return, driven in part by a sharp decline in the Japanese yen relative to the U.S. dollar. The industrial machinery industry detracted the most as Japan’s industrial production fell to historic lows amid ongoing parts and labor shortages.

Portfolio Information

 

SECTOR ALLOCATION    

 

Sector    
Percent of
Total Investments
 
(a) 

Information Technology

    52.4

Health Care

    25.5  

Industrials

    6.5  

Materials

    3.8  

Communication Services

    3.8  

Consumer Discretionary

    2.5  

Financials

    2.3  

Utilities

    1.8  

Other (each representing less than 1%)

    1.4  

 

  (a) 

Excludes money market funds.

 

GEOGRAPHIC ALLOCATION    

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

United States

    60.8

Japan

    6.8  

China

    5.2  

Australia

    3.8  

Switzerland

    3.4  

United Kingdom

    3.4  

Netherlands

    2.5  

Germany

    1.9  

Taiwan

    1.7  

France

    1.7  

 

 

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Fund Summary as of July 31, 2022    iShares® Genomics Immunology and Healthcare ETF

 

Investment Objective

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

Performance

 

   

  Average Annual Total Returns

 

       

  Cumulative Total Returns

 

 
    

1 Year

 

    

Since
Inception

 

        

1 Year

 

   

Since
Inception

 

 

Fund NAV

    (36.11 )%       9.33       (36.11 )%      32.33

Fund Market

    (36.14      9.35         (36.14     32.41  

Index

    (35.96      9.33           (35.96     32.28  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

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

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

Expense Example

 

   

Actual

 

         

Hypothetical 5% Return

 

          
 

 

 

     

 

 

      
     

 

        Beginning
Account Value
      (02/01/22)

 

 
 
 

 

      

 

Ending
Account Value
(07/31/22)

 

 
 
 

 

      

 

Expenses
Paid During
the Period

 

 
 
(a) 

 

           

 

Beginning
Account Value
(02/01/22)

 

 
 
 

 

      

 

Ending
Account Value
(07/31/22)

 

 
 
 

 

      

 

Expenses
Paid During

the Period

 

 
 

(a)  

 

      

 

Annualized
Expense
Ratio

 

 
 
 

 

     

 

$      1,000.00        

 

 

 

     $

 

874.20

 

 

 

     $

 

2.18

 

 

 

          $

 

1,000.00

 

 

 

     $

 

1,022.50

 

 

 

     $

 

2.36

 

 

 

      

 

0.47

 

 

 

  (a) 

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

 

 

 

U N D    U M M A R Y

  11


Fund Summary as of July 31, 2022  (continued)    iShares® Genomics Immunology and Healthcare ETF

 

Portfolio Management Commentary

Global genomics, immunology, and healthcare stocks declined significantly during the reporting period as the rising interest-rate environment weighed on high-valuation stocks, reduced growth, and cooled capital flows. Recurring COVID-19 outbreaks added to the uncertain market environment, as drugmakers contended with mismatches between vaccine supply and demand. Supply chain delays and rising input costs also impacted biotechnology companies’ ability to meet global demands. Merger and acquisition activity among biotechnology and pharmaceutical companies decreased to one of the lowest levels in the last decade amid heightened regulatory scrutiny. In this environment, the number of new biotechnology initial public offerings diminished after two record-setting years.

U.S. stocks, which represented approximately 65% of the Index on average during the reporting period, detracted the most from the Index’s return. The U.S. biotechnology industry in particular weighed heavily on the Index’s performance as declining COVID-19 vaccine sales and research funding pressured the earnings of biotechnology companies. The development of a new vaccine targeting the omicron variant coincided with declining case rates and raised doubts about the necessity of variant-specific vaccines. Competition from the introduction of new treatments for COVID-19 further constrained the industry, particularly for less diversified biotechnology companies that derive nearly all their revenue from vaccines. The significant stock price declines and concerns about the continued availability of research funding led to cost-cutting and layoffs at younger, smaller biotechnology firms.

German and Hong Kong biotechnology industries also detracted from the Index’s performance. Following the reduction in COVID-19 vaccine demand in Europe and North America, German vaccine developers declined amid growing concerns about the sustainability of revenue growth. New investment flows also subsided significantly as financial markets shifted away from the biotechnology industry. In Hong Kong, a Chinese biotechnology company’s stock that is also listed in the U.S. and mainland China declined after an announcement by the Securities and Exchange Commission that it was increasing regulatory scrutiny of Chinese stocks co-listed in the U.S.

Portfolio Information

 

INDUSTRY ALLOCATION

 

Sector

 

   

 

Percent of
Total Investments

 

 
(a)
 

 

Biotechnology

    78.8

Pharmaceuticals

    14.3  

Life Sciences Tools & Services

    6.2  

Health Care Providers & Services

 

   

 

0.7

 

 

 

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region

 

   

 

Percent of
Total Investments

 

 
(a)
 

 

United States

    65.5

Japan

    7.4  

Germany

    7.2  

France

    4.4  

Denmark

    4.2  

China

    4.2  

Switzerland

    3.3  

Taiwan

    2.3  

Netherlands

    1.1  

United Kingdom

 

   

 

0.4

 

 

 

 

  (a) 

Excludes money market funds.

 

 

 

12  

2 0 2 2   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


Fund Summary as of July 31, 2022    iShares® Robotics and Artificial Intelligence Multisector ETF

 

Investment Objective

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

Performance

 

   

  Average Annual Total Returns

 

       

Cumulative Total Returns

 

 
    

1 Year

 

    

Since
Inception

 

        

1 Year

 

   

Since
Inception

 

 

Fund NAV

    (32.79 )%       5.53       (32.79 )%      24.66

Fund Market

    (32.95      5.48         (32.95     24.42  

Index

    (32.63      5.80           (32.63     25.95  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

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

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

Expense Example

 

   

Actual

 

         

Hypothetical 5% Return

 

          
 

 

 

     

 

 

      
     

 

        Beginning
Account Value
      (02/01/22)

 

 
 
 

 

      

 

Ending
Account Value
(07/31/22)

 

 
 
 

 

      

 

Expenses
Paid During
the Period

 

 
 
(a)  

 

           

 

Beginning
Account Value
(02/01/22)

 

 
 
 

 

      

 

Ending
Account Value
(07/31/22)

 

 
 
 

 

      

 

Expenses
Paid During
the Period

 

 
 
(a)  

 

      

 

Annualized
Expense
Ratio

 

 
 
 

 

     

 

$      1,000.00        

 

 

 

     $

 

773.30

 

 

 

     $

 

2.07

 

 

 

          $

 

1,000.00

 

 

 

     $

 

1,022.50

 

 

 

     $

 

2.36

 

 

 

      

 

0.47

 

 

 

  (a) 

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

 

 

 

U N D    U M M A R Y

  13


Fund Summary as of July 31, 2022   (continued)    iShares® Robotics and Artificial Intelligence Multisector ETF

 

Portfolio Management Commentary

The Index declined substantially during the reporting period as robotics and artificial intelligence stocks fell amid increasingly challenging global economic conditions. As inflation increased, rising interest rates negatively impacted high-valuation growth-oriented stocks by lowering the current value of future earnings, decreasing demand and cash flows, and raising financing costs.

U.S. equities, which represented approximately 55% of the Index on average for the reporting period, detracted the most from the Index’s return. In the software industry, an increasingly competitive market weighed on companies even as demand remained robust for cloud-based software that uses artificial intelligence to analyze large amounts of data. An unfavorable verdict against a software company in a court case about trade secrets also contributed to the decline. Rising costs due to supply chain disruptions further pressured profitability at a time when stocks’ relatively high valuations led investors to closely scrutinize earnings. The U.S. communication services sector also detracted from the Index’s return as slowing demand for digital advertisements weighed on interactive media and services companies. Amid the global economic slowdown and rising inflation, prices for online advertisements declined, weighing on sales revenues. Social media platform companies faced challenges from changes to corporate policies designed to increase user privacy, making targeted advertising on mobile devices more difficult. Additionally, high content licensing fees offset strong revenues from sports-related streaming, reducing profits.

Chinese stocks also detracted substantially from the Index’s return, particularly the communication services sector. The entertainment industry weakened as China’s government announced plans to implement regulations limiting certain financial transactions and content on livestreaming platforms. Revenues from online advertising fell as companies curtailed popular content in response. The interactive media and services industry also declined as increased governmental scrutiny weighed on mobile marketing revenue. In addition, a U.S. regulator started a process to delist Chinese companies from the American stock exchange due to audit oversight concerns. Japanese stocks were another detractor as the Japanese yen depreciated significantly relative to the U.S. dollar, weighing on returns for U.S. investors.

Portfolio Information

 

SECTOR ALLOCATION

 

Sector

 

   

 

Percent of

Total Investments

 


(a) 

 

Information Technology

    57.4

Communication Services

    18.2  

Industrials

    14.7  

Consumer Discretionary

    7.9  

Health Care

 

   

 

1.8

 

 

 

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region

 

   

 

Percent of

Total Investments

 


(a) 

 

United States

    52.5

Japan

    11.1  

China

    10.9  

Taiwan

    7.6  

South Korea

    3.1  

France

    2.8  

Israel

    2.6  

United Kingdom

    1.8  

Sweden

    1.8  

Germany

 

   

 

1.7

 

 

 

 

  (a) 

Excludes money market funds.

 

 

 

14  

2 0 2 2   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


Fund Summary as of July 31, 2022    iShares® Self-Driving EV and Tech ETF

 

Investment Objective

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

Performance

 

   

Average Annual Total Returns

 

       

  Cumulative Total Returns

 

 
    

1 Year

 

    

Since
Inception

 

        

1 Year

 

   

Since
Inception

 

 

Fund NAV

    (16.54 )%       17.21       (16.54 )%      68.70

Fund Market

    (16.54      17.22         (16.54     68.74  

Index

    (16.59      17.27           (16.59     68.85  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

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

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

Expense Example

 

   

Actual

 

   

Hypothetical 5% Return

 

          
 

 

 

     

 

 

      
     

 

        Beginning
Account Value
      (02/01/22)

 

 
 
 

 

      

 

Ending
Account Value
(07/31/22)

 

 
 
 

 

      

 

Expenses
Paid During
the Period

 

 
 
(a)  

 

           

 

Beginning
Account Value
(02/01/22)

 

 
 
 

 

      

 

Ending
Account Value
(07/31/22)

 

 
 
 

 

      

 

Expenses
Paid During
the Period

 

 
 
(a)  

 

      

 

Annualized
Expense
Ratio

 

 
 
 

 

     

 

$      1,000.00        

 

 

 

     $

 

826.70

 

 

 

     $

 

2.13

 

 

 

          $

 

1,000.00

 

 

 

     $

 

1,022.50

 

 

 

     $

 

2.36

 

 

 

      

 

0.47

 

 

 

  (a)

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

 

 

 

U N D    U M M A R Y

  15


Fund Summary as of July 31, 2022   (continued)    iShares® Self-Driving EV and Tech ETF

 

Portfolio Management Commentary

Stocks of companies related to innovation in electric vehicles (“EVs”) and self-driving cars declined significantly for the reporting period. Although demand for EVs continued to rise, bolstered by the introduction of lower-priced models and government subsidies, limited supply constrained industry growth. Ongoing supply chain disruptions, including coronavirus-related restrictions in China, led to decreased EV production. In addition, rising input costs led some manufacturers to increase vehicle prices. The conflict between Russia and Ukraine exacerbated higher materials costs, especially for the metals used in the production of batteries, a key bottleneck in EV production.

Stocks in the U.S., which represented about 54% of the Index on average, detracted the most from the Index’s return, driven by the automobiles industry. Disruptions to supply chains and an ongoing shortage of semiconductors impeded overall automobile production, keeping EV production well below factory capacity. Rising interest rates increased the cost of automobile loans and clouded the outlook for automobile sales. Manufacturing defects that created a risk of an electric car battery catching fire led to a costly recall and steep price cuts, despite limited supply. In addition, new fuel efficiency regulations requiring manufacturers to build a larger fraction of EVs, which are more costly to produce, pressured automakers.

German automobile stocks also weighed on the Index’s performance. While demand for automobiles, and EVs in particular, remained strong, chip shortages and difficulties with European energy supplies led to reduced production volumes and sales in the automobiles industry. The conflict in Ukraine created a shortage of parts that German automobiles companies use to run their plants, forcing temporary factory closures, which further constrained production.

The South Korean information technology sector also detracted significantly from the Index’s return. In the technology hardware and equipment industry, a semiconductor manufacturer declined sharply amid decreased demand for smartphones and other consumer electronics due to slowing economic growth and new pandemic-related restrictions in Asia. Amid shrinking demand, the price of memory chips declined, reducing profits.

Portfolio Information

 

SECTOR ALLOCATION

 

Sector

 

 

 


 

 

 

Percent of
Total Investments

 

 


(a)
 

 

Consumer Discretionary

    45.5

Information Technology

    35.4  

Industrials

    9.5  

Materials

    5.5  

Communication Services

 

   

 

4.1

 

 

 

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region

 

 

 


 

 

 

Percent of
Total Investments

 

 


(a)
 

 

United States

    49.2

Japan

    10.3  

Germany

    9.8  

South Korea

    7.4  

China

    6.3  

Switzerland

    4.9  

Sweden

    3.2  

Netherlands

    3.0  

Taiwan

    1.5  

Canada

 

   

 

1.3

 

 

 

 

  (a) 

Excludes money market funds.

 

 

 

16  

2 0 2 2   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


Fund Summary as of July 31, 2022     iShares® U.S. Tech Breakthrough Multisector ETF

 

Investment Objective

The iShares U.S. Tech Breakthrough Multisector ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. companies that could benefit from various breakthrough technologies, including robotics and artificial intelligence, cloud and data tech, cybersecurity, genomics and immunology, and financial technology, as represented by the NYSE® FactSet® U.S. Tech Breakthrough IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

   

  Average Annual Total Returns

 

       

  Cumulative Total Returns

 

 
    

1 Year

 

    

Since
Inception

 

        

1 Year

 

   

Since
Inception

 

 

Fund NAV

    (24.71 )%       8.92       (24.71 )%      24.49

Fund Market

    (24.72      8.92         (24.72     24.50  

Index

    (24.50      9.27           (24.50     25.50  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was January 8, 2020. The first day of secondary market trading was January 10, 2020.

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

Expense Example

 

   

Actual

 

   

Hypothetical 5% Return

 

          
 

 

 

     

 

 

      
     

 

        Beginning
Account Value
      (02/01/22)

 

 
 
 

 

      

 

Ending
Account Value
(07/31/22)

 

 
 
 

 

      

 

Expenses
Paid During
the Period

 

 
 
(a)  

 

           

 

Beginning
Account Value
(02/01/22)

 

 
 
 

 

      

 

Ending
Account Value
(07/31/22)

 

 
 
 

 

      

Expenses
Paid During
the Period
 
 
(a)  
      

 

Annualized
Expense
Ratio

 

 
 
 

 

     

 

$      1,000.00        

 

 

 

     $

 

 

823.50

 

 

 

 

 

     $ 1.36             $

 

1,000.00

 

 

 

     $

 

1,023.30

 

 

 

     $

 

1.51

 

 

 

      

 

0.30

 

 

 

  (a) 

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

 

 

 

U N D    U M M A R Y

  17


Fund Summary as of July 31, 2022   (continued)    iShares® U.S. Tech Breakthrough Multisector ETF

 

Portfolio Management Commentary

U.S. stocks poised to benefit from breakthrough technologies declined sharply for the reporting period. As consumers and workers continued to return to in-person shopping and offices, sales growth for some software and online services abated. Amid rising global inflation, higher interest rates negatively impacted high valuation growth-oriented stocks by decreasing demand and raising financing costs.

The information technology sector detracted the most from the Index’s return, driven by the software industry. At the beginning of the coronavirus pandemic, a shift to remote work strengthened demand for software for creating and signing digital documents. However, as pandemic-related restrictions eased and businesses returned to in-person work, the need for digital document solutions diminished. The Russian invasion of Ukraine led some companies in the industry to suspend operations in Russia, further reducing software sales. The information technology services industry was also a substantial detractor. A large online payment company declined due to ongoing disruptions to supply chains and a decrease in online shopping. Earnings growth slowed amid reduced government stimulus spending and labor shortages. Additionally, the high-interest-rate environment constrained the growth of small businesses, lowering the demand for loans from financial technology companies. A sharp decline in the price of Bitcoin negatively impacted financial technology companies holding cryptocurrencies on their balance sheet. While demand for software to combat ransomware attacks grew, the stock of a user authentication company declined sharply after the company experienced a data breach.

The communication services sector also detracted significantly from the Index’s performance. Growth in demand for digital advertisements in the interactive media and services industry slowed considerably amid the Russian invasion of Ukraine and the broader global economic slowdown. As inflation rose, prices for online ads dropped and revenues declined. Stocks of social media platform companies were also challenged by increased competition for digital advertising and a mobile device maker’s new user privacy policy that made targeted advertisements more difficult.

Portfolio Information

 

SECTOR ALLOCATION

 

Sector

 

   

 

Percent of
Total Investments

 

 
(a)
 

 

Information Technology

    64.9

Communication Services

    12.7  

Health Care

    11.5  

Consumer Discretionary

    6.7  

Real Estate

    2.4  

Industrials

    1.4  

Financials

 

    0.4  

TEN LARGEST HOLDINGS

 

Security

 

   

 

Percent of
Total Investments

 

 
(a)
 

 

Apple Inc.

    4.5

Amazon.com Inc.

    4.4  

Microsoft Corp.

    4.2  

Alphabet Inc., Class A

    4.1  

Salesforce Inc.

    4.0  

Nvidia Corp.

    3.9  

Meta Platforms Inc, Class A

    3.4  

Gilead Sciences Inc.

    3.3  

Adobe Inc.

    2.9  

Walt Disney Co. (The)

   

 

2.9

 

 

 

 

  (a)

Excludes money market funds.

 

 

 

18  

2 0 2 2   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


Fund Summary as of July 31, 2022    iShares® Virtual Work and Life Multisector ETF

 

Investment Objective

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

Performance

 

   

  Average Annual Total Returns

 

       

Cumulative Total Returns

 

 
    

1 Year

 

    

Since
Inception

 

        

1 Year

 

   

Since
Inception

 

 

Fund NAV

    (47.89 )%       (25.35 )%        (47.89 )%      (41.58 )% 

Fund Market

    (47.89      (25.39       (47.89     (41.64

Index

 

   

 

(47.86

 

 

    

 

(25.24

 

 

       

 

(47.86

 

 

   

 

(41.38

 

 

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

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

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

Expense Example

 

   

Actual

 

   

Hypothetical 5% Return

 

          
 

 

 

     

 

 

      
     

 

        Beginning
Account Value
      (02/01/22)

 

 
 
 

 

      

 

Ending
Account Value
(07/31/22)

 

 
 
 

 

      

 

Expenses
Paid During
the Period

 

 
 
(a)  

 

           

 

Beginning
Account Value
(02/01/22)

 

 
 
 

 

      

 

Ending
Account Value
(07/31/22)

 

 
 
 

 

      

Expenses
Paid During
the Period
 
 
(a)  
      

 

Annualized
Expense
Ratio

 

 
 
 

 

      $      1,000.00                $ 734.90        $ 2.02             $ 1,000.00        $ 1,022.50        $ 2.36          0.47

 

  (a) 

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

 

 

 

U N D    U M M A R Y

  19


Fund Summary as of July 31, 2022   (continued)    iShares® Virtual Work and Life Multisector ETF

 

Portfolio Management Commentary

Stocks of companies that help people work, play, or study from home declined sharply during the reporting period as consumers shifted back from working and shopping online to in-person experiences. As global inflation increased, rising interest rates negatively impacted the highest valuation growth-oriented technology stocks by decreasing demand and raising financing costs.

U.S. equities, which represented approximately 62% of the Index on average during the reporting period, detracted the most from the Index’s return, led by the information technology sector. At the beginning of the coronavirus pandemic, the software industry benefited from the need for remote work and school, leading to strong demand for related software, such as tools for securely signing digital documents and videoconferencing. However, as restrictions eased, businesses and schools returned to in-person work, sharply weighing on demand. Competition from other makers of remote meeting solutions intensified, pressuring profits. In addition, the stocks of a company that manages information during emergencies declined sharply amid a disruptive leadership change.

The U.S. communication services sector also detracted significantly from the Index’s return. In the entertainment industry, despite increasing revenues, media streaming technology companies declined as relatively high valuations led investors to scrutinize earnings growth. Additionally, growth in consumer spending on digital entertainment slowed as inflation grew. In the interactive media and services industry, demand for digital advertisements declined amid the broader global economic slowdown and the war in Ukraine, which also adversely affected subscriber growth.

Chinese stocks also detracted from the Index’s return, particularly in the communication services sector. New government regulations restricted certain financial transactions and limited content on livestreaming platforms. Revenues declined in the entertainment industry amid reduced online advertising and lower subscriptions due to increased competition. New video-gaming regulations negatively impacted profits in the interactive media and services industry, and slowing economic growth weighed on advertising revenue. The German consumer discretionary sector also detracted from the Index’s performance as easing pandemic-related restrictions reduced demand for online delivery services.

Portfolio Information

 

SECTOR ALLOCATION

 

 

Sector

 

   

 

Percent of
Total Investments

 

 
(a) 

 

 

Information Technology

    36.1
 

Communication Services

    34.8  
 

Consumer Discretionary

    23.8  
 

Health Care

    4.2  
 

Consumer Staples

 

    1.1  

TEN LARGEST HOLDINGS

 

Security

 

   

 

Percent of
Total Investments

 

 
(a) 

 

Delivery Hero SE

    2.6

JD Health International Inc.

    2.6  

Netflix Inc.

    2.4  

New Oriental Education & Technology Group Inc.

    2.3  

Nice Ltd.

    2.3  

Five9 Inc.

    2.3  

Teladoc Health Inc.

    2.3  

Take-Two Interactive Software Inc.

    2.3  

Activision Blizzard Inc.

    2.2  

DoorDash Inc., Class A

 

    2.2  

 

  (a) 

Excludes money market funds.

 

 

 

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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 a 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.

 

 

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

  21


Schedule of Investments

July 31, 2022

  

iShares® Cloud 5G and Tech ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Chemicals — 2.8%            

DuPont de Nemours Inc.

    3,240     $ 198,385  
   

 

 

 
Communications Equipment — 17.6%            

Arista Networks Inc.(a)

    2,028       236,526  

Ciena Corp.(a)

    4,108       211,973  

F5 Inc.(a)

    1,112       186,104  

Juniper Networks Inc.

    7,844       219,867  

Nokia OYJ

    43,452       226,323  

Telefonaktiebolaget LM Ericsson, Class B

    24,796       188,605  
   

 

 

 
      1,269,398  
Construction & Engineering — 2.5%  

China Communications Services Corp. Ltd., Class H

    80,000       32,525  

COMSYS Holdings Corp.

    4,400       88,397  

EXEO Group Inc.

    3,600       60,321  
   

 

 

 
      181,243  
Diversified Telecommunication Services — 1.7%  

Cogent Communications Holdings Inc.

    1,455       92,844  

NOS SGPS SA

    7,196       27,168  
   

 

 

 
      120,012  
Electronic Equipment, Instruments & Components — 7.2%  

Murata Manufacturing Co. Ltd.

    3,200       186,914  

Quectel Wireless Solutions Co. Ltd., Class A

    520       12,103  

Taiyo Yuden Co. Ltd.

    4,400       156,376  

Yageo Corp.

    14,000       161,645  
   

 

 

 
      517,038  
Equity Real Estate Investment Trusts (REITs) — 0.9%  

Keppel DC REIT

    42,900       64,322  
   

 

 

 
IT Services — 2.0%  

Computacenter PLC

    3,136       99,142  

Kingsoft Cloud Holdings Ltd., ADR(a)

    3,465       11,365  

Megaport Ltd.(a)

    5,304       36,417  
   

 

 

 
      146,924  
Media — 1.9%  

DISH Network Corp., Class A(a)

    7,864       136,598  
   

 

 

 
Semiconductors & Semiconductor Equipment — 36.3%  

Analog Devices Inc.

    1,364       234,554  

Broadcom Inc.

    432       231,327  

Infineon Technologies AG

    5,513       151,191  

Intel Corp.

    4,940       179,371  

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

    1,546       89,575  

MediaTek Inc.

    6,000       138,241  

Microchip Technology Inc.

    2,916       200,796  

NXP Semiconductors NV

    1,112       204,475  
Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

Qorvo Inc.(a)

    1,576     $ 164,014  

Qualcomm Inc.

    1,396       202,504  

Skyworks Solutions Inc.

    1,588       172,901  

STMicroelectronics NV

    5,200       196,786  

Taiwan Semiconductor Manufacturing Co. Ltd.

    12,000       205,795  

Win Semiconductors Corp.

    13,000       69,057  

Wolfspeed Inc.(a)

    2,052       170,932  
   

 

 

 
      2,611,519  
Software — 22.7%  

C3.ai Inc., Class A(a)

    2,676       49,265  

Cadence Design Systems Inc.(a)

    1,379       256,604  

Citrix Systems Inc.

    3,084       312,748  

Datadog Inc., Class A(a)(b)

    1,396       142,406  

Dropbox Inc., Class A(a)

    10,132       230,402  

New Relic Inc.(a)

    2,153       130,623  

Nutanix Inc., Class A(a)

    6,964       105,365  

Synopsys Inc.(a)

    700       257,250  

Teradata Corp.(a)

    3,792       145,196  
   

 

 

 
      1,629,859  
Technology Hardware, Storage & Peripherals — 4.1%  

Pure Storage Inc., Class A(a)

    7,672       217,501  

Wiwynn Corp.

    3,000       74,210  
   

 

 

 
      291,711  
   

 

 

 

Total Long-Term Investments — 99.7%
(Cost: $8,622,711)

 

    7,167,009  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 1.8%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 1.93%(c)(d)(e)

    133,735       133,722  
   

 

 

 

Total Short-Term Securities — 1.8%
(Cost: $133,722)

 

    133,722  
   

 

 

 

Total Investments in Securities — 101.5%
(Cost: $8,756,433)

 

    7,300,731  

Liabilities in Excess of Other Assets — (1.5)%

 

    (110,344
   

 

 

 

Net Assets — 100.0%

 

  $   7,190,387  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan. (c) Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

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

 

 

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Schedule of Investments  (continued)

July 31, 2022

  

iShares® Cloud 5G and Tech ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended July 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
07/31/21
     Purchases
at Cost
     Proceeds
from Sale
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
07/31/22
     Shares
Held at
07/31/22
     Income      Capital
Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

     $       —        $ 133,703(a)        $         —      $  19      $  —      $ 133,722        133,735      $  84 (b)     $  —  

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

     10,000               (10,000 )(a)                                   10         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ 19      $      $ 133,722         $ 94      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 
  (c) 

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

 

For the period ended July 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

   $      $      $ (1,011    $      $      $      $ (1,011
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Fair Value Hierarchy as of Period End

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

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

 

         
      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Common Stocks

   $ 5,117,780        $ 2,049,229        $        $ 7,167,009  

Money Market Funds

     133,722                               —          133,722  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 5,251,502        $ 2,049,229        $        $ 7,300,731  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

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

  23


Schedule of Investments

July 31, 2022

  

iShares® Cybersecurity and Tech ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Communications Equipment — 9.1%            

Accton Technology Corp.

    1,476,000     $   12,318,510  

ADTRAN Holdings Inc. (a)

    149,134       3,592,638  

Calix Inc.(a)(b)

    175,224       9,994,777  

Juniper Networks Inc.

    730,135       20,465,684  

Radware Ltd.(a)

    125,003       2,891,319  
   

 

 

 
      49,262,928  
IT Services — 9.2%            

Akamai Technologies Inc.(a)(b)

    221,970       21,357,953  

Change Inc.

    136,700       2,070,640  

My EG Services Bhd

    13,791,000       2,407,263  

Okta Inc.(a)

    228,200       22,466,290  

Secunet Security Networks AG

    4,116       1,190,604  
   

 

 

 
      49,492,750  
Professional Services — 13.1%            

Booz Allen Hamilton Holding Corp.

    255,292       24,502,926  

CACI International Inc., Class A(a)(b)

    70,815       21,406,666  

ManTech International Corp./VA, Class A

    84,380       8,085,292  

Science Applications International Corp.

    170,907       16,555,761  
   

 

 

 
      70,550,645  
Software — 68.5%            

A10 Networks Inc.

    201,096       2,998,341  

Absolute Software Corp.

    165,825       1,529,338  

Ahnlab Inc.

    18,982       1,301,624  

Alarm.com Holdings Inc.(a)(b)

    147,030       10,405,313  

BlackBerry Ltd.(a)(b)

    1,768,410       10,868,288  

Check Point Software Technologies Ltd.(a)

    171,696       21,393,322  

Citrix Systems Inc.

    219,622       22,271,867  

Clear Secure Inc., Class A(a)

    176,988       4,481,336  

Crowdstrike Holdings Inc., Class A(a)

    137,593       25,262,075  

CyberArk Software Ltd.(a)

    122,892       15,991,936  

Darktrace PLC(a)

    856,435       3,932,427  

Digital Arts Inc.

    7,000       346,513  

DocuSign Inc.(a)(b)

    270,235       17,289,635  

Everbridge Inc.(a)

    79,534       1,999,485  

Fortinet Inc.(a)

    375,916       22,423,389  

Kape Technologies PLC(a)

    495,962       1,805,908  

KnowBe4 Inc., Class A(a)

    222,558       3,180,354  

Mandiant Inc.(a)(b)

    695,729       15,848,707  

Micro Focus International PLC

    1,053,112       3,668,638  

Netcompany Group A/S(a)(c)

    139,356       7,814,706  
Security   Shares     Value  
Software (continued)            

OneSpan Inc.(a)(b)

    122,270     $ 1,353,529  

Palo Alto Networks Inc.(a)(b)

    43,366       21,643,971  

Ping Identity Holding Corp.(a)

    218,148       3,741,238  

Qualys Inc.(a)

    106,722       13,054,235  

Rapid7 Inc.(a)(b)

    176,249       11,274,649  

SailPoint Technologies Holdings Inc.(a)

    283,122       18,054,690  

SentinelOne Inc., Class A(a)

    564,774       14,034,634  

TeamViewer AG(a)(c)

    470,694       4,900,712  

Telos Corp.(a)(b)

    159,433       1,265,898  

Tenable Holdings Inc.(a)

    323,694       12,510,773  

Trend Micro Inc/Japan

    398,000       23,129,453  

Varonis Systems Inc.(a)(b)

    332,740       8,461,578  

VMware Inc., Class A

    169,186       19,659,413  

Zscaler Inc.(a)(b)

    142,300       22,065,038  
   

 

 

 
      369,963,013  
   

 

 

 

Total Long-Term Investments — 99.9%
(Cost: $575,150,643)

 

    539,269,336  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 10.5%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 1.93%(d)(e)(f)

    56,054,306       56,048,701  

BlackRock Cash Funds: Treasury, SL Agency Shares, 1.81%(d)(e)

    510,000       510,000  
   

 

 

 

Total Short-Term Securities — 10.5%
(Cost: $56,545,001)

 

    56,558,701  
   

 

 

 

Total Investments in Securities — 110.4%
(Cost: $631,695,644)

 

    595,828,037  

Liabilities in Excess of Other Assets — (10.4)%

 

    (55,939,440
   

 

 

 

Net Assets — 100.0%

 

  $   539,888,597  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 

 

24  

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Schedule of Investments  (continued)

July 31, 2022

  

iShares® Cybersecurity and Tech ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended July 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
07/31/21
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
07/31/22
    Shares
Held at
07/31/22
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 62,729,133     $     $ (6,666,685 )(a)    $ (26,861   $ 13,114     $ 56,048,701       56,054,306     $ 635,215 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    790,000             (280,000 )(a)                   510,000       510,000       2,292        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (26,861   $ 13,114     $ 56,558,701       $ 637,507     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

Long Contracts

              

E-Mini Technology Select Sector Index

   3        09/16/22        $ 437     $ 59,639  
              

 

 

 

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)

   $      $      $ 59,639      $      $      $      $ 59,639  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

For the period ended July 31, 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

   $      $      $ (139,381    $      $      $      $ (139,381
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 1,219      $      $      $      $ 1,219  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts

  

Average notional value of contracts — long

   $ 644,944    

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

 

 

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

  25


Schedule of Investments   (continued)

July 31, 2022

  

iShares® Cybersecurity and Tech ETF

 

Fair Value Hierarchy as of Period End

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

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

 

         
      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Common Stocks

   $ 476,188,246        $ 63,081,090        $             —        $ 539,269,336  

Money Market Funds

     56,558,701                            56,558,701  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 532,746,947        $  63,081,090        $        $ 595,828,037  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 59,639        $        $        $ 59,639  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

26  

2 0 2 2   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


Schedule of Investments

July 31, 2022

  

iShares® Exponential Technologies ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Australia — 3.7%  

IRESS Ltd.

    2,243,753     $ 17,992,731  

Megaport Ltd.(a)

    1,400,746       9,617,431  

Nanosonics Ltd.(a)(b)

    4,878,522       16,230,642  

Netwealth Group Ltd.

    1,825,618       16,585,600  

NEXTDC Ltd.(a)

    2,332,152       19,414,099  

Technology One Ltd.

    2,282,974       18,942,446  

WiseTech Global Ltd.

    545,898       19,332,766  
   

 

 

 
          118,115,715  
Canada — 1.2%  

Bausch Health Companies Inc.(a)

    1,066,098       4,911,935  

BlackBerry Ltd.(a)(b)

    2,556,225       15,710,039  

Descartes Systems Group Inc. (The)(a)

    134,943       9,321,821  

Shopify Inc., Class A(a)

    209,375       7,293,912  
   

 

 

 
      37,237,707  
China — 5.1%  

3SBio Inc.(c)

    23,256,000       15,479,803  

Alibaba Group Holding Ltd.(a)

    1,303,500       14,655,861  

Baidu Inc.(a)

    1,084,200       18,739,744  

China Datang Corp. Renewable Power Co. Ltd.,

   

Class H(b)

    57,367,000       15,570,282  

China Longyuan Power Group Corp. Ltd., Class H

    10,866,000       17,456,876  

China Resources Power Holdings Co. Ltd.

    2,610,000       4,913,956  

Genscript Biotech Corp.(a)

    4,474,000       16,198,747  

I-Mab, ADR(a)

    276,480       2,897,511  

Innovent Biologics Inc.(a)(c)

    956,500       3,998,218  

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

    2,425,884       22,058,391  

Tencent Holdings Ltd.

    352,000       13,604,382  

Wuxi Biologics Cayman Inc., New(a)(c)

    1,749,000       16,741,627  
   

 

 

 
      162,315,398  
Denmark — 1.1%  

Orsted A/S(c)

    166,950       19,435,756  

Vestas Wind Systems A/S

    633,947       16,662,489  
   

 

 

 
      36,098,245  
Finland — 1.0%  

Nokia OYJ

    3,514,678       18,306,481  

Wartsila OYJ Abp

    1,578,600       13,870,419  
   

 

 

 
      32,176,900  
France — 1.7%  

Capgemini SE

    88,381       16,857,512  

Dassault Systemes SE

    362,412       15,544,456  

Sanofi

    210,892       20,957,080  
   

 

 

 
      53,359,048  
Germany — 1.9%  

Infineon Technologies AG

    434,831       11,925,008  

Merck KGaA

    80,430       15,318,747  

QIAGEN NV(a)

    373,641       18,725,681  

SAP SE

    150,895       14,074,385  
   

 

 

 
      60,043,821  
India — 1.5%  

Infosys Ltd.

    867,908       17,025,076  

Tata Consultancy Services Ltd.

    419,511       17,547,633  

Wipro Ltd.

    2,416,739       12,895,259  
   

 

 

 
      47,467,968  
Israel — 0.5%  

Nice Ltd.(a)

    66,801       14,261,834  
   

 

 

 
Security   Shares     Value  
Japan — 6.8%  

Chugai Pharmaceutical Co. Ltd.

    659,600     $ 18,530,001  

Denso Corp.

    295,300       16,151,452  

FANUC Corp.

    104,900       18,091,102  

Harmonic Drive Systems Inc.(b)

    534,900       20,394,044  

Murata Manufacturing Co. Ltd.

    295,000       17,231,155  

Nabtesco Corp.

    347,900       8,337,824  

Nidec Corp.

    115,600       8,033,512  

Rakuten Group Inc.

    329,800       1,634,996  

SoftBank Group Corp.

    463,711       19,479,003  

Taiyo Yuden Co. Ltd.

    403,100       14,326,188  

Takeda Pharmaceutical Co. Ltd.

    794,904       23,322,636  

TDK Corp.

    556,700       17,533,070  

Tokyo Electron Ltd.

    42,200       14,524,963  

Yaskawa Electric Corp.(b)

    453,900       15,897,344  
   

 

 

 
          213,487,290  
Netherlands — 2.5%  

Adyen NV(a)(c)

    7,201       12,952,956  

ASM International NV

    48,160       14,793,386  

ASML Holding NV

    25,218       14,494,244  

NXP Semiconductors NV

    90,732       16,683,800  

TomTom NV(a)(b)

    2,228,066       20,141,040  
   

 

 

 
      79,065,426  
Singapore — 0.5%  

Keppel DC REIT

    11,444,700       17,159,718  
   

 

 

 
South Korea — 0.9%  

Samsung SDI Co. Ltd.

    33,389       14,676,120  

SK Hynix Inc.

    199,266       15,063,871  
   

 

 

 
      29,739,991  
Spain — 0.5%  

Siemens Gamesa Renewable Energy SA(a)

    817,982       15,050,261  
   

 

 

 
Sweden — 0.5%  

Telefonaktiebolaget LM Ericsson, Class B

    1,939,612       14,753,161  
   

 

 

 
Switzerland — 3.4%  

ABB Ltd., Registered

    544,819       16,562,280  

CRISPR Therapeutics AG(a)(b)

    261,067       19,580,025  

Novartis AG, Registered

    247,603       21,276,434  

Roche Holding AG, NVS

    49,880       16,560,385  

STMicroelectronics NV

    430,256       16,282,403  

TE Connectivity Ltd.

    133,854       17,900,296  
   

 

 

 
      108,161,823  
Taiwan — 1.7%  

Hon Hai Precision Industry Co. Ltd.

    5,846,000       21,365,642  

MediaTek Inc.

    588,000       13,547,566  

Taiwan Semiconductor Manufacturing Co. Ltd.

    1,039,000       17,818,398  

Win Semiconductors Corp.

    302,000       1,604,253  
   

 

 

 
      54,335,859  
United Kingdom — 3.4%  

AstraZeneca PLC

    195,930       25,772,869  

GSK PLC

    1,001,445       21,040,563  

Ocado Group PLC(a)

    70,986       729,754  

Sage Group PLC (The)

    2,066,353       17,808,063  

Spirax-Sarco Engineering PLC

    106,563       15,548,493  

Subsea 7 SA

    2,790,457       25,149,209  
   

 

 

 
      106,048,951  
United States — 60.6%  

AbbVie Inc.

    165,437       23,741,864  

Accenture PLC, Class A

    59,202       18,131,204  

 

 

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

  27


Schedule of Investments   (continued)

July 31, 2022

  

iShares® Exponential Technologies ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United States (continued)  

Advanced Micro Devices Inc.(a)

    145,836     $     13,777,127  

Agilent Technologies Inc.

    128,986       17,297,023  

Akamai Technologies Inc.(a)

    187,978       18,087,243  

Albemarle Corp.(b)

    76,186       18,613,002  

Alnylam Pharmaceuticals Inc.(a)(b)

    115,950       16,469,538  

Alphabet Inc., Class A(a)

    142,320       16,554,662  

Amazon.com Inc.(a)

    129,207       17,436,485  

Analog Devices Inc.

    112,910       19,416,004  

Ansys Inc.(a)(b)

    51,718       14,428,805  

Apple Inc.

    115,475       18,765,842  

Applied Materials Inc.

    143,077       15,163,300  

Aptiv PLC(a)

    51,999       5,454,175  

Arista Networks Inc.(a)

    162,308       18,929,982  

Aspen Technology Inc.(a)(b)

    56,383       11,507,206  

Autodesk Inc.(a)

    73,991       16,005,733  

Beam Therapeutics Inc.(a)(b)

    254,151       16,006,430  

Biogen Inc.(a)

    86,277       18,554,732  

BioMarin Pharmaceutical Inc.(a)

    246,171       21,183,015  

Blackbaud Inc.(a)

    282,898       17,347,305  

BlackRock Inc.(d)

    21,823       14,603,515  

Block Inc.(a)(b)

    53,361       4,058,638  

Bristol-Myers Squibb Co.

    355,191       26,205,992  

Broadcom Inc.

    36,210       19,389,731  

Broadridge Financial Solutions Inc.(b)

    118,614       19,043,478  

Cadence Design Systems Inc.(a)

    110,293       20,523,321  

CF Industries Holdings Inc.

    335,547       32,041,383  

Cisco Systems Inc.

    388,285       17,616,490  

Citrix Systems Inc.

    246,272       24,974,443  

Cogent Communications Holdings Inc.

    288,009       18,377,854  

Cognizant Technology Solutions Corp., Class A

    255,799       17,384,100  

Coupa Software Inc.(a)

    142,833       9,344,135  

Crowdstrike Holdings Inc., Class A(a)

    98,619       18,106,448  

Denali Therapeutics Inc.(a)(b)

    250,975       8,538,169  

DISH Network Corp., Class A(a)(b)

    204,908       3,559,252  

Dropbox Inc., Class A(a)

    823,333       18,722,592  

DuPont de Nemours Inc.

    257,972       15,795,626  

Edwards Lifesciences Corp.(a)(b)

    183,679       18,467,087  

Eli Lilly & Co.

    82,522       27,206,678  

Enphase Energy Inc.(a)

    89,366       25,396,030  

Envestnet Inc.(a)(b)

    232,373       13,540,375  

Exelixis Inc.(a)(b)

    1,199,855       25,100,967  

F5 Inc.(a)

    88,098       14,744,081  

Fastly Inc., Class A(a)

    613,253       6,972,687  

First Solar Inc.(a)

    221,308       21,947,114  

Fortinet Inc.(a)

    321,122       19,154,927  

Gilead Sciences Inc.

    289,224       17,281,134  

Guardant Health Inc.(a)(b)

    231,891       11,633,971  

Guidewire Software Inc.(a)(b)

    177,278       13,778,046  

Hewlett Packard Enterprise Co.

    1,404,083       19,994,142  

Hubbell Inc.

    101,682       22,270,392  

Illumina Inc.(a)(b)

    56,940       12,337,759  

Incyte Corp.(a)

    196,034       15,227,921  

Intel Corp.

    389,599       14,146,340  

Intellia Therapeutics Inc.(a)(b)

    200,169       12,962,944  

International Business Machines Corp.

    163,893       21,435,565  

Intuit Inc.

    31,095       14,184,606  

Intuitive Surgical Inc.(a)

    61,392       14,130,597  

Ionis Pharmaceuticals Inc.(a)(b)

    627,789       23,579,755  

Jazz Pharmaceuticals PLC(a)

    172,192       26,872,283  

Johnson & Johnson

    122,684       21,410,812  
Security   Shares     Value  
United States (continued)  

Juniper Networks Inc.

    674,596     $ 18,908,926  

KLA Corp.

    52,148       20,000,844  

Lam Research Corp.

    28,453       14,241,011  

Livent Corp.(a)(b)

    709,037       17,647,931  

Lumen Technologies Inc.

    1,675,469       18,245,857  

Mandiant Inc.(a)

    1,271,852       28,972,789  

Manhattan Associates Inc.(a)

    130,221       18,318,188  

Marqeta Inc., Class A(a)(b)

    213,424       2,046,736  

MercadoLibre Inc.(a)(b)

    7,713       6,276,145  

Merck & Co. Inc.

    282,108       25,203,529  

Meta Platforms Inc, Class A(a)

    65,312       10,391,139  

Microchip Technology Inc.

    237,266       16,338,137  

Micron Technology Inc.

    237,368       14,683,584  

Microsoft Corp.

    60,190       16,897,741  

Moderna Inc.(a)

    62,683       10,285,653  

MongoDB Inc.(a)

    20,842       6,512,500  

Myriad Genetics Inc.(a)(b)

    812,836       21,442,614  

NortonLifeLock Inc.

    828,766       20,329,630  

Nvidia Corp.

    73,555       13,359,795  

Okta Inc.(a)

    101,653       10,007,738  

Oracle Corp.

    247,439       19,260,652  

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

    698,599       7,230,500  

Palo Alto Networks Inc.(a)(b)

    37,996       18,963,804  

Paylocity Holding Corp.(a)(b)

    88,073       18,136,873  

PayPal Holdings Inc.(a)

    124,460       10,769,524  

Pegasystems Inc.

    95,952       3,852,473  

PTC Inc.(a)

    167,881       20,713,158  

Qorvo Inc.(a)

    139,395       14,506,838  

Qualcomm Inc.

    110,736       16,063,364  

Regeneron Pharmaceuticals Inc.(a)(b)

    31,209       18,153,963  

RingCentral Inc., Class A(a)

    125,714       6,221,586  

Rocket Companies Inc., Class A(b)

    1,391,317       13,245,338  

Sabre Corp.(a)(b)

    2,218,644       13,644,661  

Salesforce Inc.(a)

    76,553       14,087,283  

Seagen Inc.(a)

    137,391       24,727,632  

SEI Investments Co.

    335,005       18,545,877  

Sensata Technologies Holding PLC

    349,134       15,525,989  

ServiceNow Inc.(a)

    31,441       14,043,437  

Shoals Technologies Group Inc., Class A(a)

    709,008       16,753,859  

Skyworks Solutions Inc.

    140,249       15,270,311  

Snowflake Inc., Class A(a)(b)

    66,147       9,916,097  

SoFi Technologies Inc.(a)(b)

    1,702,619       10,743,526  

SolarEdge Technologies Inc.(a)

    60,993       21,965,409  

Splunk Inc.(a)

    168,817       17,541,774  

SS&C Technologies Holdings Inc.

    261,854       15,493,901  

Synaptics Inc.(a)

    14,028       2,033,359  

Synopsys Inc.(a)

    55,335       20,335,612  

Teladoc Health Inc.(a)(b)

    226,218       8,336,133  

Tesla Inc.(a)(b)

    20,759       18,505,611  

Texas Instruments Inc.

    104,493       18,692,753  

Thermo Fisher Scientific Inc.

    34,284       20,515,888  

Twilio Inc., Class A(a)

    93,343       7,915,486  

Tyler Technologies Inc.(a)

    42,212       16,842,588  

VMware Inc., Class A

    175,656       20,411,227  

Zendesk Inc.(a)

    194,990       14,706,146  

Zscaler Inc.(a)(b)

    33,912       5,258,395  
   

 

 

 
        1,913,973,571  
   

 

 

 

Total Common Stocks — 98.5%
(Cost: $2,875,339,532)

 

    3,112,852,687  
   

 

 

 

 

 

28  

2 0 2 2   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


Schedule of Investments   (continued)

July 31, 2022

  

iShares® Exponential Technologies ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Preferred Stocks

 

Chile — 1.1%

 

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

    352,556     $ 35,016,546  
   

 

 

 

Total Preferred Stocks — 1.1%
(Cost: $20,339,304)

 

    35,016,546  
   

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $2,895,678,836)

 

    3,147,869,233  
   

 

 

 

Short-Term Securities

 

Money Market Funds — 5.4%

 

BlackRock Cash Funds: Institutional, SL Agency Shares, 1.93%(d)(e)(f)

    164,947,374       164,930,879  

BlackRock Cash Funds: Treasury, SL Agency Shares, 1.81%(d)(e)

    5,890,000       5,890,000  
   

 

 

 

Total Short-Term Securities — 5.4%
(Cost: $170,796,470)

 

    170,820,879  
   

 

 

 

Total Investments in Securities — 105.0%
(Cost: $3,066,475,306)

 

    3,318,690,112  

Liabilities in Excess of Other Assets — (5.0)%

 

    (159,048,185
   

 

 

 

Net Assets — 100.0%

 

  $   3,159,641,927  
   

 

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 

 

Affiliates

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

 

                   
Affiliated Issuer   Value at
07/31/21
   

Purchases

at Cost

    Proceeds
from Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
07/31/22
   

Shares

Held at
07/31/22

    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 29,091,609     $ 135,905,406 (a)    $     $ (77,850   $ 11,714     $ 164,930,879       164,947,374       $329,907 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    12,950,000             (7,060,000 )(a)                  5,890,000       5,890,000       7,619        

BlackRock Inc.

    21,333,249       1,890,928       (4,143,749     498,259       (4,975,172     14,603,515       21,823       430,956        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 420,409     $ (4,963,458   $ 185,424,394         $768,482     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End Futures Contracts

 

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

Euro STOXX 50 Index

     18        09/16/22      $     685    $   31,249  

MSCI Emerging Markets Index

     43        09/16/22      2,147      10,521  

S&P 500 E-Mini Index

     36        09/16/22      7,440      363,998  
           

 

 

 
            $  405,768  
           

 

 

 

 

 

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

  29


Schedule of Investments   (continued)

July 31, 2022

  

iShares® Exponential Technologies ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 405,768      $      $      $      $ 405,768  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

For the period ended July 31, 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

   $      $      $ 507,872      $      $      $      $ 507,872  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 349,704      $      $      $      $ 349,704  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments    

 

   

Futures contracts

  

Average notional value of contracts — long

   $ 9,001,403    

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

Fair Value Hierarchy as of Period End

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

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

 

         
      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Common Stocks

   $ 2,030,331,301        $ 1,082,521,386        $        $ 3,112,852,687  

Preferred Stocks

     35,016,546                            35,016,546  

Money Market Funds

     170,820,879                            170,820,879  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,236,168,726        $ 1,082,521,386        $             —        $ 3,318,690,112  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 374,519        $ 31,249        $        $ 405,768  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

30  

2 0 2 2   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


Schedule of Investments

July 31, 2022

  

iShares® Genomics Immunology and Healthcare ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
China — 4.2%            

BeiGene Ltd.(a)(b)

    650,700     $ 8,370,212  
   

 

 

 
Denmark — 4.2%            

Genmab A/S(a)

    23,526       8,371,019  
   

 

 

 
France — 4.4%            

Sanofi

    62,099       6,170,996  

Valneva SE(a)(b)

    254,499       2,531,140  
   

 

 

 
      8,702,136  
Germany — 7.1%            

BioNTech SE, ADR(b)

    45,176       7,460,816  

Evotec SE(a)

    259,852       6,751,267  
   

 

 

 
      14,212,083  
Japan — 7.4%            

Ono Pharmaceutical Co. Ltd.

    270,600       7,608,974  

Takeda Pharmaceutical Co. Ltd.

    240,700       7,062,184  
   

 

 

 
      14,671,158  
Netherlands — 1.1%            

CureVac NV(a)(b)

    168,210       2,186,730  
   

 

 

 
Switzerland — 3.3%            

Roche Holding AG, NVS

    19,990       6,636,770  
   

 

 

 
Taiwan — 2.3%            

Adimmune Corp.

    969,000       1,303,203  

Medigen Vaccine Biologics Corp.(a)

    476,000       3,274,974  
   

 

 

 
      4,578,177  
United Kingdom — 0.4%            

Adaptimmune Therapeutics PLC, ADR(a)

    431,774       798,782  
   

 

 

 
United States — 65.4%            

Agenus Inc.(a)(b)

    760,299       1,961,571  

Allogene Therapeutics Inc.(a)(b)

    247,278       3,209,669  

Arcturus Therapeutics Holdings Inc.(a)

    63,188       1,108,949  

Arcus Biosciences Inc.(a)

    137,976       3,668,782  

Beam Therapeutics Inc.(a)(b)

    177,969       11,208,488  

Blueprint Medicines Corp.(a)

    120,037       6,129,089  

Coherus Biosciences Inc.(a)(b)

    226,659       1,919,802  

Editas Medicine Inc.(a)(b)

    213,796       3,401,494  

Exelixis Inc.(a)

    374,167       7,827,574  

Fate Therapeutics Inc.(a)(b)

    283,319       8,649,729  

FibroGen Inc.(a)

    267,419       3,364,131  
Security   Shares     Value  
United States (continued)  

Gilead Sciences Inc.

    112,280     $ 6,708,730  

Gossamer Bio Inc.(a)

    151,453       1,700,817  

Inovio Pharmaceuticals Inc.(a)(b)

    703,462       1,392,855  

Intellia Therapeutics Inc.(a)(b)

    147,036       9,522,051  

Invitae Corp.(a)(b)

    702,810       1,335,339  

Iovance Biotherapeutics Inc.(a)(b)

    435,923       5,078,503  

Ligand Pharmaceuticals Inc.(a)

    50,163       4,616,501  

Maravai LifeSciences Holdings Inc., Class A(a)

    218,867       5,710,240  

Moderna Inc.(a)

    51,944       8,523,491  

NGM Biopharmaceuticals Inc.(a)

    64,311       931,223  

Novavax Inc.(a)

    159,163       8,675,975  

RAPT Therapeutics Inc.(a)(b)

    71,340       1,314,083  

Regeneron Pharmaceuticals Inc.(a)(b)

    10,570       6,148,463  

Sangamo Therapeutics Inc.(a)

    338,310       1,451,350  

Twist Bioscience Corp.(a)(b)

    159,658       6,983,441  

Vaxart Inc.(a)

    392,771       1,445,397  

Vir Biotechnology Inc.(a)

    226,587       6,301,385  
   

 

 

 
      130,289,122  
   

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $269,066,195)

 

    198,816,189  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 14.9%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 1.93%(c)(d)(e)

    29,525,562       29,522,610  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 1.81%(c)(d)

    210,000       210,000  
   

 

 

 

Total Short-Term Securities — 14.9%
(Cost: $29,732,537)

 

    29,732,610  
   

 

 

 

Total Investments in Securities — 114.7%
(Cost: $298,798,732)

 

    228,548,799  

Liabilities in Excess of Other Assets — (14.7)%

 

    (29,214,560
   

 

 

 

Net Assets — 100.0%

 

  $   199,334,239  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

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

 

 

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

  31


Schedule of Investments  (continued)

July 31, 2022

  

iShares® Genomics Immunology and Healthcare ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended July 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
07/31/21
 
 
   
Purchases
at Cost
 
 
   
Proceeds
from Sale
 
 
   
Net Realized
Gain (Loss)
 
 
   


Change in
Unrealized
Appreciation
(Depreciation)
 
 
 
 
   
Value at
07/31/22
 
 
   

Shares
Held at
07/31/22

 
 
    Income      



Capital Gain
Distributions
from
Underlying
Funds
 
 
 
 
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 14,270,396     $ 15,264,632 (a)    $     $ (11,804   $ (614   $ 29,522,610       29,525,562     $ 329,402 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    200,000       10,000 (a)                         210,000       210,000       1,124        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (11,804   $ (614   $ 29,732,610       $ 330,526     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a)

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 

Description

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

 

 

Long Contracts

              

E-Mini Health Care Sector Index

   3        09/16/22        $ 402     $ 38,347  
              

 

 

 

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)

   $        $        $ 38,347   $        $        $        $ 38,347  
  

 

 

      

 

 

      

 

 

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

For the period ended July 31, 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

   $        $        $(51,454)   $        $        $        $ (51,454
  

 

 

      

 

 

      

 

 

 

 

      

 

 

      

 

 

      

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                             

Futures contracts

   $        $        $ 30,937   $        $        $        $ 30,937  
  

 

 

      

 

 

      

 

 

 

 

      

 

 

      

 

 

      

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — long

   $ 478,702  

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

 

 

32  

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


Schedule of Investments  (continued)

July 31, 2022

  

iShares® Genomics Immunology and Healthcare ETF

 

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Investments

                 

Assets

                 

Common Stocks

   $ 144,010,424        $ 54,805,765        $        $ 198,816,189  

Money Market Funds

     29,732,610                            29,732,610  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 173,743,034        $ 54,805,765        $                 —        $ 228,548,799  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 38,347        $        $        $ 38,347  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

C H E D U L E   O F  N V&