LOGO

  OCTOBER 31, 2021

 

  

2021 Semi-Annual Report

(Unaudited)

 

iShares Trust

 

·  

iShares MSCI KLD 400 Social ETF | DSI | NYSE Arca

·  

iShares MSCI USA ESG Select ETF | SUSA | NYSE Arca

·  

iShares U.S. Basic Materials ETF | IYM | NYSE Arca

·  

iShares U.S. Consumer Discretionary ETF | IYC | NYSE Arca

·  

iShares U.S. Consumer Staples ETF | IYK | NYSE Arca

·  

iShares U.S. Financial Services ETF | IYG | NYSE Arca

·  

iShares U.S. Financials ETF | IYF | NYSE Arca

·  

iShares U.S. Industrials ETF | IYJ | Cboe BZX


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of October 31, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. The United States began the reporting period as the initial reopening-led economic rebound was beginning to slow. Nonetheless, the economy continued to grow at a solid pace for the reporting period, eventually regaining the output lost from the pandemic. However, a rapid rebound in consumer spending pushed up against supply constraints and led to elevated inflation.

Equity prices rose with the broader economy, as the implementation of mass vaccination campaigns and passage of two additional fiscal stimulus packages further boosted stocks, and many equity indices neared or surpassed all-time highs late in the reporting period. In the United States, returns of small-capitalization stocks, which benefited the most from the resumption of in-person activities, outpaced large-capitalization stocks. International equities also gained, as both developed and emerging markets continued to recover from the effects of the pandemic.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) had fallen sharply prior to the beginning of the reporting period, which meant bonds were priced for extreme risk avoidance and economic disruption. Despite expectations of doom and gloom, the economy expanded rapidly, stoking inflation concerns in early 2021, which led to higher yields and a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and led to solid returns for high-yield corporate bonds, outpacing investment-grade corporate bonds.

The Fed remained committed to accommodative monetary policy by maintaining near-zero interest rates and by reiterating that inflation could exceed its 2% target for a sustained period without triggering a rate increase. In response to rising inflation late in the period, the Fed changed its market guidance, raising the possibility of higher rates in 2022 and reducing bond purchasing beginning in late 2021.

Looking ahead, we believe that the global expansion will continue to broaden as Europe and other developed market economies gain momentum, although the Delta variant of the coronavirus remains a threat, particularly in emerging markets. While we expect inflation to remain elevated in the medium-term as the expansion continues, we believe the recent uptick owes more to temporary supply disruptions than a lasting change in fundamentals. The change in Fed policy also means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the economic expansion.

Overall, we favor a moderately positive stance toward risk, with an overweight in equities. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long-term. U.S. small-capitalization stocks and European equities are likely to benefit from the continuing vaccine-led restart, while Chinese equities stand to gain from a more accommodative monetary and fiscal environment as the Chinese economy slows. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

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

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of October 31, 2021

 

     6-Month   12-Month

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

 

  10.91%   42.91%

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

 

 

1.85

 

50.80

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

 

  4.14   34.18

Emerging market equities
(MSCI Emerging Markets Index)

 

  (4.87)   16.96

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

 

  0.01   0.06

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

 

  1.59   (4.77)

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

 

  1.06   (0.48)

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

 

  0.33   2.76

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

 

  2.36   10.53

 

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

 

 

 

2  

H I S  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  

Fund Summary

     4  

About Fund Performance

     12  

Shareholder Expenses

     12  

Schedules of Investments

     13  

Financial Statements

  

Statements of Assets and Liabilities

     45  

Statements of Operations

     47  

Statements of Changes in Net Assets

     49  

Financial Highlights

     53  

Notes to Financial Statements

     61  

Board Review and Approval of Investment Advisory Contract

     71  

Supplemental Information

     79  

General Information

     80  

Glossary of Terms Used in this Report

     81  

 

 

 


Fund Summary as of October 31, 2021    iShares® MSCI KLD 400 Social ETF

 

Investment Objective

The iShares MSCI KLD 400 Social ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics, as represented by the MSCI KLD 400 Social 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  
     6 Months      1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    13.88      47.29      20.02     16.31        47.29      149.04      352.93

Fund Market

    13.91        47.11        20.02       16.30          47.11        149.07        352.66  

Index

    14.03        47.67        20.43       16.80                47.67        153.28        372.44  

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
  Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,138.80          $        1.35               $      1,000.00          $      1,023.90          $       1.28          0.25

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Information Technology

    33.2

Consumer Discretionary

    12.6  

Communication Services

    10.8  

Health Care

    9.4  

Financials

    9.2  

Industrials

    8.5  

Consumer Staples

    6.4  

Real Estate

    3.2  

Materials

    3.0  

Energy

    2.2  

Utilities

    1.5  

 

  (a) 

Excludes money market funds.

 
   

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

Microsoft Corp.

    10.7

Tesla Inc.

    4.1  

Alphabet Inc., Class A

    4.0  

Alphabet Inc., Class C

    3.9  

NVIDIA Corp.

    2.9  

Home Depot Inc. (The)

    1.8  

Visa Inc., Class A

    1.6  

Procter & Gamble Co. (The)

    1.6  

Adobe Inc.

    1.4  

Walt Disney Co. (The)

    1.4  

 

 

4  

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Fund Summary as of October 31, 2021    iShares® MSCI USA ESG Select ETF

 

Investment Objective

The iShares MSCI USA ESG Select ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics, as represented by the MSCI USA Extended ESG Select Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    12.73      44.66      20.33     15.79        44.66      152.25      333.04

Fund Market

    12.69        44.61        20.33       15.79          44.61        152.29        333.15  

Index

    12.89        45.03        20.73       16.27                45.03        156.51        351.70  

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
  Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $       1,000.00          $      1,127.30          $        1.34               $      1,000.00          $       1,023.90          $       1.28          0.25

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Information Technology

    31.6

Financials

    11.3  

Health Care

    11.0  

Industrials

    10.7  

Consumer Discretionary

    9.9  

Communication Services

    8.1  

Consumer Staples

    6.5  

Real Estate

    3.5  

Materials

    2.6  

Utilities

    2.5  

Energy

    2.3  

 

  (a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

   
Security    

Percent of

Total Investments

 

(a) 

Microsoft Corp.

    5.3

Apple Inc.

    4.9  

Alphabet Inc., Class A

    2.9  

NVIDIA Corp.

    2.4  

Tesla Inc.

    2.2  

Home Depot Inc. (The)

    2.0  

BlackRock Inc.

    1.7  

3M Co.

    1.4  

Texas Instruments Inc.

    1.4  

Marsh & McLennan Companies Inc.

    1.4  

 

 

U N D   S U M M A R Y

  5


Fund Summary as of October 31, 2021    iShares® U.S. Basic Materials ETF

 

Investment Objective

The iShares U.S. Basic Materials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the basic materials sector, as represented by the Russell 1000 Basic Materials RIC 22.5/45 Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    2.76      39.54      13.44     9.05        39.54      87.84      137.85

Fund Market

    2.79        39.41        13.45       9.06          39.41        87.96        138.00  

Index(a)

    2.96        40.10        13.86       9.49          40.10        91.36        147.63  

Dow Jones U.S. Basic Materials Index

    2.79        39.85        13.82       9.47          39.85        91.03        147.20  

Russell 1000 Basic Materials RIC 22.5/45 Capped Index(b)

    N/A        N/A        N/A       N/A                N/A        N/A        N/A  

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

 

  (a) 

Index performance through September 19, 2021 reflects the performance of the Dow Jones U.S. Basic Materials IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Basic Materials RIC 22.5/45 Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Basic Materials IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Russell 1000 Basic Materials RIC 22.5/45 Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through October 31, 2021 was 1.70%.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,027.60        $ 1.99             $ 1,000.00        $ 1,023.20        $ 1.99          0.39

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Chemicals

    57.7

Metals & Mining

    29.3  

Containers & Packaging

    6.0  

Trading Companies & Distributors

    5.2  

Other (each representing less than 1%)

    1.8  

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

Air Products & Chemicals Inc.

    9.9

Ecolab Inc.

    8.3  

Freeport-McMoRan Inc.

    8.3  

Newmont Corp.

    6.5  

Dow Inc.

    6.3  

International Flavors & Fragrances Inc.

    5.6  

Fastenal Co.

    4.5  

Nucor Corp.

    4.4  

Albemarle Corp.

    4.1  

LyondellBasell Industries NV, Class A

    3.6  

 

  (a) 

Excludes money market funds.

 

 

 

6  

2 0 2 1   H A R E S   S E M I - 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 October 31, 2021    iShares® U.S. Consumer Discretionary ETF

 

Investment Objective

The iShares U.S. Consumer Discretionary ETF (the “Fund”) (formerly the iShares U.S. Consumer Services ETF) seeks to track the investment results of an index composed of U.S. equities in the consumer discretionary sector, as represented by the Russell 1000 Consumer Discretionary 40 Act 15/22.5 Daily Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    7.81      39.12      19.50     18.02        39.12      143.70      424.39

Fund Market

    7.85        39.21        19.51       18.03          39.21        143.81        424.58  

Index(a)

    8.02        39.69        20.03       18.54          39.69        149.13        447.77  

Dow Jones U.S. Consumer Services Capped (TR) IndexTM(b)

    3.14        33.38        N/A       N/A          33.38        N/A        N/A  

Russell 1000 Consumer Discretionary 40 Act 15/22.5 Daily Capped Index(c)

    N/A        N/A        N/A       N/A                N/A        N/A        N/A  

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

 

  (a) 

Index performance through June 23, 2019 reflects the performance of the Dow Jones U.S. Consumer Services Total Return Index. Index performance beginning on June 24, 2019 through September 19, 2021 reflects the performance of the Dow Jones U.S. Consumer Services Capped (TR) IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Consumer Discretionary 40 Act 15/22.5 Daily Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Consumer Services Capped (TR) IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Dow Jones U.S. Consumer Services Capped (TR) IndexTM was April 15, 2019. The cumulative total return for this index for the period April 15, 2019 through October 31, 2021 was 54.71%.

 
  (c) 

The inception date of the Russell 1000 Consumer Discretionary 40 Act 15/22.5 Daily Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through October 31, 2021 was 6.60%.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.

Expense Example

 

Actual

         

Hypothetical 5% Return

          

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,078.10        $ 2.04             $ 1,000.00        $ 1,023.20        $ 1.99          0.39

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Retailing

    35.4

Consumer Services

    15.1  

Media & Entertainment

    13.6  

Automobiles & Components

    13.5  

Consumer Durables & Apparel

    9.3  

Food & Staples Retailing

    7.1  

Transportation

    3.0  

Household & Personal Products

    1.3  

Other (each representing less than 1%)

    1.7  

 

  (a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

Amazon.com Inc.

    14.2

Tesla Inc.

    9.7  

Home Depot Inc. (The)

    4.5  

Netflix Inc.

    4.1  

Walt Disney Co. (The)

    4.0  

Costco Wholesale Corp.

    3.6  

Walmart Inc.

    3.5  

Nike Inc., Class B

    3.4  

McDonald’s Corp.

    3.0  

Lowe’s Companies Inc.

    2.7  

 

 

U N D   S U M M A R Y

  7


Fund Summary as of October 31, 2021    iShares® U.S. Consumer Staples ETF

 

Investment Objective

The iShares U.S. Consumer Staples ETF (the “Fund”) (formerly the iShares U.S. Consumer Goods ETF) seeks to track the investment results of an index composed of U.S. equities in the consumer staples sector, as represented by the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    2.18      29.42      12.85     12.94        29.42      83.03      237.60

Fund Market

    2.26        29.37        12.86       12.94          29.37        83.13        237.68  

Index(a)

    2.38        29.92        13.32       13.42          29.92        86.88        252.38  

Dow Jones U.S. Consumer Goods IndexTM

    12.31        42.52        15.44       14.48          42.52        105.01        286.57  

Russell 1000 Consumer Staples RIC 22.5/45 Capped Index(b)

    N/A        N/A        N/A       N/A                N/A        N/A        N/A  

 

  (a) 

Index performance through September 19, 2021 reflects the performance of the Dow Jones U.S. Consumer Goods IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Consumer Goods IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through October 31, 2021 was 1.13%.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.

Expense Example

 

Actual

         

Hypothetical 5% Return

          

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,021.80        $ 1.99             $ 1,000.00        $ 1,023.20        $ 1.99          0.39

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Food, Beverage & Tobacco

    58.9

Household & Personal Products

    25.1  

Health Care Equipment & Services

    7.5  

Food & Staples Retailing

    6.8  

Materials

    1.7  

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

Procter & Gamble Co. (The)

    16.7

PepsiCo Inc.

    10.8  

Coca-Cola Co. (The)

    10.6  

Philip Morris International Inc.

    7.2  

CVS Health Corp.

    4.7  

Mondelez International Inc., Class A

    3.8  

Altria Group Inc.

    3.5  

Colgate-Palmolive Co.

    3.1  

Kimberly-Clark Corp.

    2.4  

General Mills Inc.

    2.1  

 

  (a) 

Excludes money market funds.

 

 

 

8  

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Fund Summary as of October 31, 2021    iShares® U.S. Financial Services ETF

 

Investment Objective

The iShares U.S. Financial Services ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the financial services sector, as represented by the Dow Jones U.S. Financial Services 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  
     6 Months      1 Year      5 Years      10 Years            1 Year      5 Years      10 Years  

Fund NAV

    9.94      69.56      19.19      17.38       69.56      140.54      396.68

Fund Market

    9.97        69.68        19.19        17.39         69.68        140.54        396.78  

Index

    10.15        70.18        19.68        17.88               70.18        145.56        418.11  

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.

Expense Example

 

Actual

         

Hypothetical 5% Return

          

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,099.40        $ 2.06             $ 1,000.00        $ 1,023.20        $ 1.99          0.39

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Banks

    43.2

Diversified Financials

    41.7  

Software & Services

    14.8  

Insurance

    0.3  

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

JPMorgan Chase & Co.

    11.6

Visa Inc., Class A

    8.1  

Bank of America Corp.

    8.1  

Mastercard Inc., Class A

    6.7  

Wells Fargo & Co.

    4.8  

Morgan Stanley

    3.4  

Citigroup Inc.

    3.2  

Goldman Sachs Group Inc. (The)

    3.2  

BlackRock Inc.

    3.1  

Charles Schwab Corp. (The)

    2.8  

 

  (a) 

Excludes money market funds.

 

 

 

U N D   S U M M A R Y

  9


Fund Summary as of October 31, 2021    iShares® U.S. Financials ETF

 

Investment Objective

The iShares U.S. Financials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the financials sector, as represented by the Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    12.06      62.96      16.65     15.49        62.96      115.96      321.96

Fund Market

    11.97        62.97        16.64       15.48          62.97        115.87        321.64  

Index(a)

    12.29        63.58        17.11       15.96          63.58        120.29        339.75  

Dow Jones U.S. Financials Capped (TR) Index(b)

    9.84        60.02        N/A       N/A          60.02        N/A        N/A  

Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index(c)

    N/A        N/A        N/A       N/A                N/A        N/A        N/A  

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

 

  (a) 

Index performance through June 23, 2019 reflects the performance of the Dow Jones U.S. Financials Total Return Index. Index performance beginning on June 24, 2019 through September 19, 2021 reflects the performance of the Dow Jones U.S. Financials Capped (TR) IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Financials Capped (TR) IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Dow Jones U.S. Financials Capped (TR) IndexTM was April 15, 2019. The cumulative total return for this index for the period April 15, 2019 through October 31, 2021 was 50.58%.

 
  (c) 

The inception date of the Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through October 31, 2021 was 11.61%.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,120.60        $ 2.08             $ 1,000.00        $ 1,023.20        $ 1.99          0.39

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Diversified Financials

    43.6

Banks

    36.2  

Insurance

    19.7  

Software & Services

    0.5  

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

Berkshire Hathaway Inc., Class B

    8.3

JPMorgan Chase & Co.

    8.0  

Bank of America Corp.

    6.3  

Wells Fargo & Co.

    4.5  

Citigroup Inc.

    3.1  

Morgan Stanley

    3.1  

Goldman Sachs Group Inc. (The)

    3.0  

BlackRock Inc.

    2.9  

Charles Schwab Corp. (The)

    2.7  

S&P Global Inc.

    2.5  

 

  (a) 

Excludes money market funds.

 

 

 

10  

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Fund Summary as of October 31, 2021    iShares® U.S. Industrials ETF

 

Investment Objective

The iShares U.S. Industrials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the industrials sector, as represented by the Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    1.32      36.70      16.26      15.05       36.70      112.41      306.41

Fund Market

    1.25        36.50        16.26        15.05         36.50        112.39        306.39  

Index(a)

    1.52        37.23        16.76        15.55         37.23        116.97        324.42  

Dow Jones U.S. Industrials Index

    2.64        38.76        17.01        15.68         38.76        119.38        329.14  

Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index(b)

    N/A        N/A        N/A        N/A               N/A        N/A        N/A  

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

 

  (a) 

Index performance through September 19, 2021 reflects the performance of the Dow Jones U.S. Industrials IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Industrials IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through October 31, 2021 was -1.89%.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 12 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,013.20        $ 1.98             $ 1,000.00        $ 1,023.20        $ 1.99          0.39

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Capital Goods

    40.4

Software & Services

    29.5  

Transportation

    11.9  

Materials

    6.3  

Commercial & Professional Services

    4.1  

Diversified Financials

    3.6  

Technology Hardware & Equipment

    2.4  

Pharmaceuticals, Biotechnology & Life Sciences

    1.0  

Other (each representing less than 1%)

    0.8  

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

Visa Inc., Class A

    6.3

Mastercard Inc., Class A

    5.1  

PayPal Holdings Inc.

    4.8  

Accenture PLC, Class A

    4.0  

Union Pacific Corp.

    2.8  

United Parcel Service Inc., Class B

    2.7  

Honeywell International Inc.

    2.7  

Raytheon Technologies Corp.

    2.4  

General Electric Co.

    2.0  

American Express Co.

    2.0  

 

  (a) 

Excludes money market funds.

 

 

 

U N D   S U M M A R Y

  11


About Fund Performance        

 

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

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

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

Shareholder Expenses

As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

 

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Schedule of Investments (unaudited)

October 31, 2021

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 0.0%            

Spirit AeroSystems Holdings Inc., Class A

    17,781     $ 734,178  
   

 

 

 
Air Freight & Logistics — 0.8%            

CH Robinson Worldwide Inc.

    22,966       2,227,472  

Echo Global Logistics Inc.(a)

    3,684       177,679  

Expeditors International of Washington Inc.

    29,263       3,606,958  

United Parcel Service Inc., Class B

    124,975       26,678,413  
   

 

 

 
      32,690,522  
Airlines — 0.1%            

Delta Air Lines Inc.(a)

    27,574       1,078,971  

Southwest Airlines Co.(a)

    25,327       1,197,460  
   

 

 

 
      2,276,431  
Auto Components — 0.3%            

Aptiv PLC(a)

    46,810       8,092,981  

Autoliv Inc.

    14,451       1,399,579  

BorgWarner Inc.

    41,731       1,880,816  
   

 

 

 
      11,373,376  
Automobiles — 4.1%            

Harley-Davidson Inc.

    26,526       967,934  

Tesla Inc.(a)

    141,495           157,625,430  
   

 

 

 
      158,593,364  
Banks — 1.9%            

Bank of Hawaii Corp.

    6,953       587,529  

Cathay General Bancorp.

    13,344       562,983  

CIT Group Inc.

    17,028       843,397  

Citizens Financial Group Inc.

    73,241       3,470,159  

Comerica Inc.

    24,320       2,069,389  

First Republic Bank/CA

    30,399       6,576,216  

Heartland Financial USA Inc.

    6,970       349,336  

Huntington Bancshares Inc./OH

    255,356       4,019,304  

International Bancshares Corp.

    9,498       402,715  

KeyCorp.

    167,472       3,897,073  

M&T Bank Corp.

    22,176       3,262,533  

Old National Bancorp./IN

    23,338       398,613  

People’s United Financial Inc.

    72,796       1,247,723  

PNC Financial Services Group Inc. (The)

    73,380       15,485,381  

Regions Financial Corp.

    165,556       3,920,366  

SVB Financial Group(a)

    9,649       6,922,193  

Truist Financial Corp.

    232,232       14,739,765  

Umpqua Holdings Corp.

    38,245       782,110  

Zions Bancorp. NA

    28,499       1,795,152  
   

 

 

 
      71,331,937  
Beverages — 2.2%            

Coca-Cola Co. (The)

    707,769       39,896,938  

Keurig Dr Pepper Inc.

    121,906       4,399,588  

PepsiCo Inc.

    238,730       38,578,768  
   

 

 

 
      82,875,294  
Biotechnology — 2.3%            

AbbVie Inc.

    305,192       34,996,367  

Amgen Inc.

    99,289       20,549,844  

Biogen Inc.(a)

    26,077       6,954,214  

BioMarin Pharmaceutical Inc.(a)

    31,391       2,487,109  

Gilead Sciences Inc.

    216,685       14,058,523  

Vertex Pharmaceuticals Inc.(a)(b)

    44,635       8,254,351  
   

 

 

 
      87,300,408  
Building Products — 0.8%            

A O Smith Corp.

    23,306       1,702,970  
Security   Shares     Value  
Building Products (continued)            

Allegion PLC

    15,558     $ 1,996,092  

Builders FirstSource Inc.(a)

    34,023       1,982,520  

Fortune Brands Home & Security Inc.

    23,944       2,427,922  

Johnson Controls International PLC

    124,108       9,105,804  

Lennox International Inc.

    5,819       1,741,510  

Masco Corp.

    43,944       2,880,529  

Owens Corning

    17,947       1,676,429  

Trane Technologies PLC

    41,409       7,492,130  
   

 

 

 
      31,005,906  
Capital Markets — 4.4%            

Ameriprise Financial Inc.

    20,082       6,067,375  

Bank of New York Mellon Corp. (The)

    144,269       8,540,725  

BlackRock Inc.(c)

    26,346       24,856,397  

Charles Schwab Corp. (The)

    249,797       20,490,848  

CME Group Inc.

    61,991       13,672,115  

FactSet Research Systems Inc.

    6,525       2,896,382  

Franklin Resources Inc.

    51,768       1,630,174  

Intercontinental Exchange Inc.

    97,135       13,449,312  

Invesco Ltd.

    59,930       1,522,821  

Moody’s Corp.

    29,076       11,751,066  

Morgan Stanley

    241,123       24,782,622  

Northern Trust Corp.

    34,226       4,211,167  

S&P Global Inc.

    41,611       19,730,272  

State Street Corp.

    63,309       6,239,102  

T Rowe Price Group Inc.

    39,307       8,524,902  
   

 

 

 
          168,365,280  
Chemicals — 2.3%            

Air Products & Chemicals Inc.

    38,170       11,443,748  

Albemarle Corp.

    20,215       5,063,251  

Axalta Coating Systems Ltd.(a)(b)

    36,329       1,133,101  

Ecolab Inc.

    44,417       9,870,346  

HB Fuller Co.

    8,674       611,604  

International Flavors & Fragrances Inc.

    43,101       6,355,242  

Linde PLC

    89,903       28,697,038  

Minerals Technologies Inc.

    6,009       426,278  

Mosaic Co. (The)

    61,918       2,573,931  

PPG Industries Inc.

    41,074       6,595,252  

Sherwin-Williams Co. (The)

    43,901       13,899,496  
   

 

 

 
      86,669,287  
Commercial Services & Supplies — 0.2%            

ACCO Brands Corp.

    14,722       121,751  

Copart Inc.(a)

    36,887       5,728,182  

Deluxe Corp.

    7,062       251,901  

HNI Corp.

    7,777       290,860  

Interface Inc.

    11,049       158,664  

Steelcase Inc., Class A

    13,821       164,470  

Tetra Tech Inc.

    9,321       1,637,327  
   

 

 

 
      8,353,155  
Communications Equipment — 1.3%            

Cisco Systems Inc.

    728,180       40,756,235  

CommScope Holding Co. Inc.(a)

    35,217       377,174  

F5 Networks Inc.(a)(b)

    10,311       2,177,168  

Motorola Solutions Inc.

    29,390       7,306,060  

Plantronics Inc.(a)

    7,102       190,049  
   

 

 

 
      50,806,686  
Construction & Engineering — 0.1%            

EMCOR Group Inc.

    9,465       1,149,903  

Granite Construction Inc.

    7,676       284,933  

 

 

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

  13


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Construction & Engineering (continued)            

Quanta Services Inc.

    24,023     $ 2,913,509  
   

 

 

 
      4,348,345  
Consumer Finance — 0.6%            

Ally Financial Inc.

    64,187       3,064,287  

American Express Co.

    117,987       20,503,781  
   

 

 

 
      23,568,068  
Containers & Packaging — 0.4%            

Amcor PLC

    266,970       3,222,328  

Avery Dennison Corp.

    14,371       3,128,854  

Ball Corp.

    56,822       5,198,076  

Sealed Air Corp.

    26,310       1,560,709  

Sonoco Products Co.

    17,208       997,204  
   

 

 

 
      14,107,171  
Distributors — 0.2%            

LKQ Corp.(a)

    49,713       2,738,192  

Pool Corp.

    6,937       3,573,665  
   

 

 

 
      6,311,857  
Diversified Financial Services — 0.1%            

Equitable Holdings Inc.

    66,742       2,235,857  

Voya Financial Inc.

    21,000       1,465,170  
   

 

 

 
      3,701,027  
Diversified Telecommunication Services — 1.1%        

Liberty Global PLC, Class A(a)

    27,389       787,160  

Liberty Global PLC, Class C, NVS(a)

    61,084       1,761,663  

Lumen Technologies Inc.

    161,062       1,910,195  

Verizon Communications Inc.

    715,366       37,907,244  
   

 

 

 
      42,366,262  
Electric Utilities — 0.4%            

Alliant Energy Corp.

    43,299       2,449,424  

Eversource Energy

    59,453       5,047,560  

FirstEnergy Corp.

    93,748       3,612,111  

OGE Energy Corp.

    34,360       1,170,645  

PPL Corp.

    133,246       3,837,485  
   

 

 

 
      16,117,225  
Electrical Equipment — 0.5%            

Acuity Brands Inc.

    6,247       1,283,321  

Eaton Corp. PLC

    68,800       11,335,488  

Rockwell Automation Inc.

    20,110       6,423,134  

Sensata Technologies Holding PLC(a)(b)

    27,255       1,501,751  
   

 

 

 
            20,543,694  
Electronic Equipment, Instruments & Components — 0.8%  

Cognex Corp.

    30,463       2,668,254  

Corning Inc.

    140,058       4,981,863  

Flex Ltd.(a)(b)

    84,996       1,436,432  

Itron Inc.(a)

    7,802       606,762  

Keysight Technologies Inc.(a)

    31,957       5,752,899  

TE Connectivity Ltd.

    56,924       8,310,904  

Trimble Inc.(a)

    43,271       3,780,587  

Zebra Technologies Corp., Class A(a)

    9,264       4,946,513  
   

 

 

 
      32,484,214  
Energy Equipment & Services — 0.3%            

Baker Hughes Co.

    127,370       3,194,439  

Core Laboratories NV

    8,132       211,513  

NOV Inc.(a)

    66,883       937,700  

Schlumberger NV

    240,831       7,769,208  

TechnipFMC PLC(a)

    76,002       560,135  
   

 

 

 
      12,672,995  
Security   Shares     Value  
Entertainment — 1.6%            

Electronic Arts Inc.

    49,807     $ 6,985,432  

Walt Disney Co. (The)(a)

    313,950       53,079,526  
   

 

 

 
      60,064,958  
Equity Real Estate Investment Trusts (REITs) — 2.9%  

American Tower Corp.

    78,561       22,151,845  

AvalonBay Communities Inc.

    24,193       5,725,999  

Boston Properties Inc.

    25,654       2,915,321  

Corporate Office Properties Trust

    19,540       529,925  

Digital Realty Trust Inc.

    48,748       7,692,922  

Duke Realty Corp.

    64,421       3,623,037  

Equinix Inc.

    15,453       12,935,243  

Equity Residential

    61,422       5,306,861  

Federal Realty Investment Trust

    12,050       1,450,217  

Healthpeak Properties Inc.

    93,082       3,305,342  

Host Hotels & Resorts Inc.(a)

    122,750       2,065,882  

Iron Mountain Inc.

    49,915       2,278,121  

Macerich Co. (The)

    35,617       644,311  

PotlatchDeltic Corp.

    11,730       613,127  

Prologis Inc.

    127,815       18,528,062  

SBA Communications Corp.

    18,913       6,531,226  

Simon Property Group Inc.

    56,613       8,298,334  

UDR Inc.

    51,334       2,850,577  

Weyerhaeuser Co.

    129,694       4,632,670  
   

 

 

 
          112,079,022  
Food & Staples Retailing — 0.3%            

Kroger Co. (The)

    124,571       4,985,331  

Sysco Corp.

    88,591       6,812,648  

United Natural Foods Inc.(a)

    9,972       432,685  
   

 

 

 
      12,230,664  
Food Products — 1.4%            

Archer-Daniels-Midland Co.

    96,767       6,216,312  

Bunge Ltd.

    24,503       2,269,958  

Campbell Soup Co.

    33,583       1,341,641  

Conagra Brands Inc.

    83,087       2,675,401  

Darling Ingredients Inc.(a)

    28,378       2,398,509  

General Mills Inc.

    105,019       6,490,174  

Hain Celestial Group Inc. (The)(a)

    14,864       666,948  

Hormel Foods Corp.

    51,255       2,169,112  

Ingredion Inc.

    11,611       1,105,715  

JM Smucker Co. (The)

    18,835       2,314,068  

Kellogg Co.

    44,202       2,709,583  

Kraft Heinz Co. (The)

    116,493       4,180,934  

Lamb Weston Holdings Inc.

    25,389       1,433,209  

McCormick & Co. Inc./MD, NVS

    42,930       3,444,274  

Mondelez International Inc., Class A

    242,672       14,739,897  
   

 

 

 
      54,155,735  
Gas Utilities — 0.1%            

Atmos Energy Corp.

    22,422       2,065,515  

New Jersey Resources Corp.

    16,888       638,535  

Northwest Natural Holding Co.

    5,261       237,218  

UGI Corp.

    36,019       1,563,585  
   

 

 

 
      4,504,853  
Health Care Equipment & Supplies — 2.1%            

ABIOMED Inc.(a)

    7,804       2,591,240  

Align Technology Inc.(a)

    12,997       8,114,937  

Becton Dickinson and Co.

    50,243       12,037,720  

Cooper Companies Inc. (The)

    8,497       3,542,569  

DENTSPLY SIRONA Inc.

    37,451       2,142,572  

Dexcom Inc.(a)

    16,739       10,431,912  

 

 

14  

2 0 2 1   H A R E S   S E M I - 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 (unaudited) (continued)

October 31, 2021

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Equipment & Supplies (continued)  

Edwards Lifesciences Corp.(a)

    107,355     $ 12,863,276  

Hologic Inc.(a)

    44,393       3,254,451  

IDEXX Laboratories Inc.(a)

    14,742       9,820,236  

Insulet Corp.(a)

    11,448       3,549,109  

ResMed Inc.

    25,206       6,626,910  

STERIS PLC

    17,233       4,028,041  
   

 

 

 
      79,002,973  
Health Care Providers & Services — 1.6%            

AmerisourceBergen Corp.

    26,685       3,256,104  

Cardinal Health Inc.

    50,268       2,403,313  

Centene Corp.(a)

    100,359       7,149,575  

Cigna Corp.

    59,231       12,652,334  

DaVita Inc.(a)

    11,945       1,233,202  

HCA Healthcare Inc.

    46,528       11,653,403  

Henry Schein Inc.(a)

    24,371       1,860,726  

Humana Inc.

    22,317       10,336,342  

Laboratory Corp. of America Holdings(a)

    16,906       4,852,360  

MEDNAX Inc.(a)(b)

    13,468       366,733  

Patterson Companies Inc.

    14,618       456,959  

Quest Diagnostics Inc.

    22,632       3,321,925  

Select Medical Holdings Corp.

    18,718       621,812  
   

 

 

 
      60,164,788  
Health Care Technology — 0.2%            

Cerner Corp.

    52,187       3,876,972  

Teladoc Health Inc.(a)(b)

    24,107       3,606,166  
   

 

 

 
      7,483,138  
Hotels, Restaurants & Leisure — 2.6%            

Aramark

    39,061       1,424,945  

Booking Holdings Inc.(a)

    7,072       17,119,756  

Choice Hotels International Inc.

    6,186       869,875  

Darden Restaurants Inc.

    22,513       3,245,024  

Domino’s Pizza Inc.

    6,710       3,280,989  

Hilton Worldwide Holdings Inc.(a)

    48,158       6,932,344  

Jack in the Box Inc.

    3,878       383,728  

Marriott International Inc./MD, Class A(a)

    47,896       7,664,318  

McDonald’s Corp.

    128,937       31,660,481  

Royal Caribbean Cruises Ltd.(a)

    39,577       3,341,486  

Starbucks Corp.

    203,594       21,595,216  

Vail Resorts Inc.

    6,958       2,398,492  
   

 

 

 
            99,916,654  
Household Durables — 0.3%            

Ethan Allen Interiors Inc.

    4,295       99,687  

Garmin Ltd.

    26,546       3,812,006  

La-Z-Boy Inc.

    7,798       259,206  

Meritage Homes Corp.(a)

    6,588       716,181  

Mohawk Industries Inc.(a)

    10,252       1,816,757  

Newell Brands Inc.

    66,760       1,528,136  

Whirlpool Corp.

    10,815       2,280,126  
   

 

 

 
      10,512,099  
Household Products — 2.1%            

Clorox Co. (The)

    21,562       3,514,822  

Colgate-Palmolive Co.

    138,697       10,567,324  

Kimberly-Clark Corp.

    58,420       7,564,806  

Procter & Gamble Co. (The)

    423,019       60,487,487  
   

 

 

 
      82,134,439  
Independent Power and Renewable Electricity Producers — 0.1%  

AES Corp. (The)

    114,449       2,876,103  
Security   Shares     Value  
Independent Power and Renewable Electricity Producers (continued)  

Ormat Technologies Inc.

    7,706     $ 557,375  
   

 

 

 
      3,433,478  
Industrial Conglomerates — 0.7%            

3M Co.

    100,171       17,898,555  

Roper Technologies Inc.

    18,245       8,901,188  
   

 

 

 
      26,799,743  
Insurance — 2.2%            

Allstate Corp. (The)

    51,814       6,407,837  

Arthur J Gallagher & Co.

    35,697       5,985,316  

Chubb Ltd.

    77,664       15,173,992  

Hartford Financial Services Group Inc. (The)

    61,839       4,509,918  

Lincoln National Corp.

    31,313       2,259,233  

Loews Corp.

    38,742       2,172,264  

Marsh & McLennan Companies Inc.

    87,825       14,649,210  

Principal Financial Group Inc.

    46,960       3,150,547  

Progressive Corp. (The)

    100,953       9,578,421  

Prudential Financial Inc.

    68,236       7,509,372  

Travelers Companies Inc. (The)

    43,572       7,009,863  

Willis Towers Watson PLC

    22,309       5,405,025  
   

 

 

 
      83,810,998  
Interactive Media & Services — 7.9%            

Alphabet Inc., Class A(a)

    51,981       153,911,582  

Alphabet Inc., Class C, NVS(a)

    50,333       149,257,982  
   

 

 

 
          303,169,564  
IT Services — 6.4%            

Accenture PLC, Class A

    109,825       39,404,112  

Automatic Data Processing Inc.

    73,497       16,499,341  

Cognizant Technology Solutions Corp., Class A

    91,319       7,131,101  

International Business Machines Corp.

    154,390       19,314,189  

Mastercard Inc., Class A

    152,844       51,282,219  

Okta Inc.(a)(b)

    21,539       5,324,010  

PayPal Holdings Inc.(a)

    192,818       44,847,539  

Visa Inc., Class A

    292,315       61,903,547  

Western Union Co. (The)

    69,941       1,274,325  
   

 

 

 
      246,980,383  
Leisure Products — 0.1%            

Callaway Golf Co.(a)

    20,805       562,775  

Hasbro Inc.

    22,641       2,168,102  

Mattel Inc.(a)

    60,688       1,323,606  
   

 

 

 
      4,054,483  
Life Sciences Tools & Services — 1.2%            

Agilent Technologies Inc.

    52,561       8,277,832  

Bio-Techne Corp.

    6,720       3,518,928  

Illumina Inc.(a)

    25,206       10,462,002  

IQVIA Holdings Inc.(a)

    33,041       8,637,578  

Mettler-Toledo International Inc.(a)

    4,018       5,950,176  

Waters Corp.(a)

    10,702       3,933,520  

West Pharmaceutical Services Inc.

    12,776       5,492,147  
   

 

 

 
      46,272,183  
Machinery — 2.6%            

AGCO Corp.

    11,050       1,350,421  

Caterpillar Inc.

    94,643       19,308,118  

Cummins Inc.

    25,318       6,072,269  

Deere & Co.

    51,451       17,612,192  

Dover Corp.

    24,817       4,196,058  

Flowserve Corp.

    22,485       755,946  

Fortive Corp.

    55,589       4,208,643  

Graco Inc.

    29,008       2,180,822  

 

 

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

  15


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Machinery (continued)            

IDEX Corp.

    13,110     $ 2,917,893  

Illinois Tool Works Inc.

    54,551       12,430,536  

Lincoln Electric Holdings Inc.

    9,828       1,399,507  

Meritor Inc.(a)

    12,492       304,055  

Middleby Corp. (The)(a)

    9,592       1,749,965  

PACCAR Inc.

    60,104       5,386,521  

Parker-Hannifin Corp.

    22,324       6,621,075  

Snap-on Inc.

    9,303       1,890,649  

Stanley Black & Decker Inc.

    27,959       5,025,071  

Tennant Co.

    3,170       251,888  

Timken Co. (The)

    12,035       853,883  

Westinghouse Air Brake Technologies Corp.

    30,959       2,808,910  

Xylem Inc./NY

    31,180       4,071,796  
   

 

 

 
          101,396,218  
Media — 0.2%            

Discovery Inc., Class A(a)(b)

    28,819       675,517  

Discovery Inc., Class C, NVS(a)

    54,294       1,224,873  

John Wiley & Sons Inc., Class A

    7,824       423,826  

New York Times Co. (The), Class A

    26,203       1,430,422  

Omnicom Group Inc.

    37,238       2,535,163  

Scholastic Corp.

    4,469       161,733  
   

 

 

 
      6,451,534  
Metals & Mining — 0.4%            

Compass Minerals International Inc.

    5,587       366,507  

Newmont Corp.

    138,715       7,490,610  

Nucor Corp.

    51,798       5,783,247  

Schnitzer Steel Industries Inc., Class A

    4,460       239,948  
   

 

 

 
      13,880,312  
Multi-Utilities — 0.7%            

Avista Corp.

    11,046       439,741  

CenterPoint Energy Inc.

    100,517       2,617,463  

CMS Energy Corp.

    50,105       3,023,837  

Consolidated Edison Inc.

    59,325       4,473,105  

MDU Resources Group Inc.

    34,850       1,070,940  

NiSource Inc.

    67,442       1,663,794  

Sempra Energy

    54,852       7,000,761  

WEC Energy Group Inc.

    54,637       4,920,608  
   

 

 

 
      25,210,249  
Multiline Retail — 0.6%            

Kohl’s Corp.

    27,519       1,335,497  

Nordstrom Inc.(a)

    18,874       542,250  

Target Corp.

    85,481       22,192,577  
   

 

 

 
      24,070,324  
Oil, Gas & Consumable Fuels — 1.9%            

APA Corp.

    65,174       1,708,211  

Cheniere Energy Inc.(a)

    41,652       4,306,817  

ConocoPhillips

    233,103       17,363,842  

Devon Energy Corp.

    110,544       4,430,604  

EQT Corp.(a)

    48,161       958,885  

Hess Corp.

    48,137       3,974,672  

Marathon Oil Corp.

    137,066       2,236,917  

Marathon Petroleum Corp.

    112,946       7,446,530  

Occidental Petroleum Corp.

    160,922       5,395,715  

ONEOK Inc.

    77,131       4,907,074  

Phillips 66

    75,832       5,670,717  

Pioneer Natural Resources Co.

    39,898       7,460,128  

Southwestern Energy Co.(a)

    118,756       579,529  
Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)            

Valero Energy Corp.

    70,791     $ 5,474,268  
   

 

 

 
      71,913,909  
Paper & Forest Products — 0.0%            

Domtar Corp.(a)

    8,101       442,234  
   

 

 

 
Personal Products — 0.3%            

Estee Lauder Companies Inc. (The), Class A

    40,031       12,983,254  
   

 

 

 
Pharmaceuticals — 2.1%            

Bristol-Myers Squibb Co.

    385,985       22,541,524  

Jazz Pharmaceuticals PLC(a)

    10,345       1,376,299  

Merck & Co. Inc.

    437,507       38,522,491  

Zoetis Inc.

    82,022       17,733,157  
   

 

 

 
      80,173,471  
Professional Services — 0.5%            

ASGN Inc.(a)

    9,244       1,106,137  

Exponent Inc.

    8,939       1,026,197  

Heidrick & Struggles International Inc.

    3,047       142,843  

ICF International Inc.

    3,251       326,693  

IHS Markit Ltd.

    65,435       8,553,663  

Kelly Services Inc., Class A, NVS

    5,831       105,133  

ManpowerGroup Inc.

    9,267       895,656  

Resources Connection Inc.

    5,996       104,390  

Robert Half International Inc.

    19,523       2,207,466  

TransUnion

    33,075       3,813,217  

TrueBlue Inc.(a)

    5,922       164,928  
   

 

 

 
      18,446,323  
Real Estate Management & Development — 0.2%  

CBRE Group Inc., Class A(a)

    58,131       6,050,275  

Jones Lang LaSalle Inc.(a)

    8,904       2,299,280  

Realogy Holdings Corp.(a)

    19,185       332,284  
   

 

 

 
      8,681,839  
Road & Rail — 1.7%            

AMERCO

    1,677       1,235,932  

ArcBest Corp.

    4,240       380,964  

Avis Budget Group Inc.(a)(b)

    9,162       1,587,866  

CSX Corp.

    392,280       14,188,768  

Kansas City Southern

    15,764       4,890,781  

Norfolk Southern Corp.

    43,173       12,651,848  

Ryder System Inc.

    9,225       783,664  

Union Pacific Corp.

    114,781       27,708,133  
   

 

 

 
      63,427,956  
Semiconductors & Semiconductor Equipment — 6.9%  

Advanced Micro Devices Inc.(a)

    209,947       25,241,928  

Analog Devices Inc.

    92,930       16,122,426  

Applied Materials Inc.

    158,563       21,667,634  

Intel Corp.

    697,727       34,188,623  

Lam Research Corp.

    24,627       13,879,038  

Microchip Technology Inc.

    94,720       7,017,805  

NVIDIA Corp.

    430,583       110,087,156  

ON Semiconductor Corp.(a)

    73,963       3,555,401  

Skyworks Solutions Inc.

    28,595       4,779,082  

Texas Instruments Inc.

    159,568       29,915,809  
   

 

 

 
          266,454,902  
Software — 17.2%            

Adobe Inc.(a)

    82,596       53,717,134  

ANSYS Inc.(a)

    15,065       5,718,373  

Autodesk Inc.(a)

    37,980       12,062,828  

Cadence Design Systems Inc.(a)

    47,969       8,303,913  

 

 

16  

2 0 2 1   H A R E S   S E M I - 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 (unaudited) (continued)

October 31, 2021

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Software (continued)            

Citrix Systems Inc.

    21,455     $ 2,032,432  

Fortinet Inc.(a)

    24,014       8,076,869  

Intuit Inc.

    47,217       29,557,370  

Microsoft Corp.

    1,236,312       409,985,785  

NortonLifeLock Inc.

    100,295       2,552,508  

Oracle Corp.

    323,871       31,072,184  

Paycom Software Inc.(a)

    8,833       4,839,159  

salesforce.com Inc.(a)

    167,869       50,308,661  

ServiceNow Inc.(a)

    34,110       23,800,593  

Splunk Inc.(a)

    28,418       4,683,855  

Teradata Corp.(a)

    18,788       1,062,649  

VMware Inc., Class A(a)

    14,388       2,182,660  

Workday Inc., Class A(a)

    32,613       9,457,118  
   

 

 

 
          659,414,091  
Specialty Retail — 3.1%            

AutoNation Inc.(a)

    9,021       1,092,623  

Best Buy Co. Inc.

    39,012       4,768,827  

Buckle Inc. (The)

    4,751       197,736  

CarMax Inc.(a)(b)

    28,092       3,846,357  

Foot Locker Inc.

    15,684       747,656  

GameStop Corp., Class A(a)(b)

    11,286       2,071,094  

Gap Inc. (The)

    38,775       879,805  

Home Depot Inc. (The)

    183,727       68,298,675  

Lowe’s Companies Inc.

    122,151       28,561,347  

ODP Corp. (The)(a)

    9,183       397,624  

Signet Jewelers Ltd.

    8,965       799,499  

Tractor Supply Co.

    19,976       4,338,188  

Ulta Beauty Inc.(a)

    9,025       3,315,424  
   

 

 

 
      119,314,855  
Technology Hardware, Storage & Peripherals — 0.4%  

Dell Technologies Inc., Class C(a)

    48,070       5,287,219  

Hewlett Packard Enterprise Co.

    225,317       3,300,894  

HP Inc.

    216,552       6,568,022  

Xerox Holdings Corp.

    27,861       495,926  
   

 

 

 
      15,652,061  
Textiles, Apparel & Luxury Goods — 1.3%  

Capri Holdings Ltd.(a)

    26,373       1,404,098  

Columbia Sportswear Co.

    5,808       603,103  

Deckers Outdoor Corp.(a)

    4,831       1,909,743  

Hanesbrands Inc.

    59,633       1,016,146  

Nike Inc., Class B

    220,303       36,854,489  

PVH Corp.(a)

    12,172       1,330,765  

Under Armour Inc., Class A(a)

    32,569       715,215  

Under Armour Inc., Class C, NVS(a)

    33,273       628,194  
Security   Shares     Value  
Textiles, Apparel & Luxury Goods (continued)  

VF Corp.

    57,538     $ 4,193,369  

Wolverine World Wide Inc.

    14,604       484,415  
   

 

 

 
      49,139,537  
Thrifts & Mortgage Finance — 0.0%            

New York Community Bancorp. Inc.

    79,214       984,630  
   

 

 

 
Trading Companies & Distributors — 0.4%  

Air Lease Corp.

    18,577       744,009  

Applied Industrial Technologies Inc.

    6,659       649,119  

Fastenal Co.

    99,465       5,677,462  

H&E Equipment Services Inc.

    5,806       261,735  

United Rentals Inc.(a)

    12,484       4,732,809  

WW Grainger Inc.

    7,666       3,550,201  
   

 

 

 
      15,615,335  
Water Utilities — 0.2%            

American Water Works Co. Inc.

    31,413       5,471,517  

Essential Utilities Inc.

    40,533       1,907,888  
   

 

 

 
      7,379,405  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $2,395,370,736)

 

    3,826,399,276  
   

 

 

 

Short-Term Investments

 

Money Market Funds — 0.7%            

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

    17,984,847       17,993,839  

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

    7,290,000       7,290,000  
   

 

 

 
      25,283,839  
   

 

 

 

Total Short-Term Investments — 0.7%
(Cost: $25,283,070)

 

    25,283,839  
   

 

 

 

Total Investments in Securities — 100.4%
(Cost: $2,420,653,806)

 

    3,851,683,115  

Other Assets, Less Liabilities — (0.4)%

 

    (15,011,440
   

 

 

 

Net Assets — 100.0%

    $  3,836,671,675  
   

 

 

 

 

(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   I N V E S T M E N T S

  17


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® MSCI KLD 400 Social ETF

    

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 13,210,182     $ 4,781,651 (a)    $     $ 1,688     $ 318     $ 17,993,839       17,984,847     $ 13,145 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    8,780,000             (1,490,000 )(a)                  7,290,000       7,290,000       149        

BlackRock Inc.

    20,060,560       2,791,636       (1,165,461     547,695       2,621,967       24,856,397       26,346       204,146        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 549,383     $ 2,622,285     $ 50,140,236       $ 217,440     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 

Long Contracts

           

S&P 500 E-Mini Index

     41        12/17/21      $ 9,424      $ 291,844  
           

 

 

 

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:

 

 

 
     Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 291,844  
  

 

 

 

 

  (a) 

Net cumulative 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 October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 522,753  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 261,954  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 7,309,182  

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

 

 

18  

2 0 2 1   H A R E S   S E M I - 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 (unaudited) (continued)

October 31, 2021

  

iShares® MSCI KLD 400 Social 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

   $ 3,826,399,276      $                 —      $                 —      $ 3,826,399,276  

Money Market Funds

     25,283,839                      25,283,839  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 3,851,683,115      $      $      $ 3,851,683,115  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 291,844      $      $      $ 291,844  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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   I N V E S T M E N T S

  19


Schedule of Investments (unaudited)

October 31, 2021

  

iShares® MSCI USA ESG Select ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks            
Air Freight & Logistics — 1.6%            

CH Robinson Worldwide Inc.

    161,940     $ 15,706,560  

Expeditors International of Washington Inc.

    417,149       51,417,786  
   

 

 

 
      67,124,346  
Auto Components — 0.5%            

Aptiv PLC(a)

    127,417       22,029,125  
   

 

 

 
Automobiles — 2.2%            

Tesla Inc.(a)

    80,420       89,587,880  
   

 

 

 
Banks — 1.8%            

Huntington Bancshares Inc./OH

    1,020,181       16,057,649  

KeyCorp

    268,700       6,252,649  

PNC Financial Services Group Inc. (The)

    54,587       11,519,495  

Regions Financial Corp.

    744,299       17,625,000  

SVB Financial Group(a)

    23,615       16,941,401  

Truist Financial Corp.

    115,080       7,304,127  
   

 

 

 
      75,700,321  
Beverages — 2.4%            

Coca-Cola Co. (The)

    677,945       38,215,760  

Keurig Dr Pepper Inc.

    199,982       7,217,350  

PepsiCo Inc.

    316,099       51,081,598  
   

 

 

 
      96,514,708  
Biotechnology — 1.7%            

Amgen Inc.

    112,576       23,299,855  

Biogen Inc.(a)

    29,873       7,966,531  

Gilead Sciences Inc.

    330,307       21,430,318  

Vertex Pharmaceuticals Inc.(a)

    92,145       17,040,375  
   

 

 

 
      69,737,079  
Building Products — 2.6%            

Carrier Global Corp.

    92,476       4,830,021  

Fortune Brands Home & Security Inc.

    40,156       4,071,818  

Johnson Controls International PLC

    768,670       56,397,318  

Owens Corning

    81,312       7,595,354  

Trane Technologies PLC

    177,174       32,056,092  
   

 

 

 
          104,950,603  
Capital Markets — 5.4%            

Bank of New York Mellon Corp. (The)

    416,508       24,657,274  

BlackRock Inc.(b)

    72,351       68,260,274  

CME Group Inc.

    20,127       4,439,010  

FactSet Research Systems Inc.

    16,077       7,136,420  

Invesco Ltd.

    318,520       8,093,593  

Moody’s Corp.

    20,027       8,093,912  

Morgan Stanley

    359,199       36,918,473  

Northern Trust Corp.

    222,971       27,434,352  

S&P Global Inc.

    19,644       9,314,399  

State Street Corp.

    178,345       17,575,900  

T Rowe Price Group Inc.

    52,763       11,443,239  
   

 

 

 
      223,366,846  
Chemicals — 2.1%            

DuPont de Nemours Inc.

    56,350       3,921,960  

Ecolab Inc.

    166,461       36,990,963  

International Flavors & Fragrances Inc.

    83,058       12,246,902  

Linde PLC

    62,764       20,034,269  

Mosaic Co. (The)

    213,287       8,866,341  

PPG Industries Inc.

    25,206       4,047,327  
   

 

 

 
      86,107,762  
Security   Shares     Value  
Communications Equipment — 1.2%            

Cisco Systems Inc.

    788,678     $ 44,142,308  

Motorola Solutions Inc.

    18,883       4,694,125  
   

 

 

 
      48,836,433  
Consumer Finance — 1.6%            

Ally Financial Inc.

    285,572       13,633,207  

American Express Co.

    297,236       51,653,672  
   

 

 

 
      65,286,879  
Containers & Packaging — 0.4%            

Amcor PLC

    935,977       11,297,242  

Ball Corp.

    42,247       3,864,756  
   

 

 

 
      15,161,998  
Distributors — 0.2%            

LKQ Corp.(a)

    164,594       9,065,838  
   

 

 

 
Diversified Telecommunication Services — 0.6%  

AT&T Inc.

    297,646       7,518,538  

Verizon Communications Inc.

    301,520       15,977,545  
   

 

 

 
      23,496,083  
Electric Utilities — 1.3%            

Eversource Energy

    312,703       26,548,485  

Southern Co. (The)

    58,878       3,669,277  

Xcel Energy Inc.

    376,163       24,296,368  
   

 

 

 
      54,514,130  
Electronic Equipment, Instruments & Components — 1.2%  

Cognex Corp.

    49,102       4,300,844  

Keysight Technologies Inc.(a)

    73,962       13,314,639  

TE Connectivity Ltd.

    26,566       3,878,636  

Teledyne Technologies Inc.(a)

    8,857       3,978,742  

Trimble Inc.(a)

    175,009       15,290,536  

Zebra Technologies Corp., Class A(a)

    12,283       6,558,508  
   

 

 

 
      47,321,905  
Energy Equipment & Services — 0.6%            

Baker Hughes Co.

    473,568       11,877,085  

Schlumberger NV

    379,010       12,226,863  
   

 

 

 
      24,103,948  
Entertainment — 1.5%            

Activision Blizzard Inc.

    46,989       3,674,070  

Electronic Arts Inc.

    35,050       4,915,763  

Netflix Inc.(a)

    21,639       14,937,618  

Roku Inc.(a)

    11,661       3,555,439  

Walt Disney Co. (The)(a)

    206,621       34,933,412  
   

 

 

 
      62,016,302  
Equity Real Estate Investment Trusts (REITs) — 2.8%  

American Tower Corp.

    66,821       18,841,517  

Crown Castle International Corp.

    21,370       3,853,011  

Equinix Inc.

    29,961       25,079,454  

Healthpeak Properties Inc.

    579,048       20,561,994  

Iron Mountain Inc.

    85,385       3,896,971  

Prologis Inc.

    229,988       33,339,061  

Ventas Inc.

    111,037       5,926,045  

Welltower Inc.

    55,062       4,426,985  
   

 

 

 
          115,925,038  
Food & Staples Retailing — 0.3%            

Kroger Co. (The)

    168,959       6,761,739  

Walgreens Boots Alliance Inc.

    82,225       3,866,220  
   

 

 

 
      10,627,959  
Food Products — 2.0%            

Bunge Ltd.

    197,105       18,259,807  

 

 

20  

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Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® MSCI USA ESG Select ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Food Products (continued)            

Campbell Soup Co.

    235,297     $ 9,400,115  

General Mills Inc.

    315,211       19,480,040  

Kellogg Co.

    548,522       33,624,399  
   

 

 

 
      80,764,361  
Health Care Equipment & Supplies — 2.5%            

Align Technology Inc.(a)

    6,865       4,286,300  

Dexcom Inc.(a)

    19,947       12,431,170  

Edwards Lifesciences Corp.(a)

    219,754       26,330,924  

Hologic Inc.(a)

    103,684       7,601,074  

IDEXX Laboratories Inc.(a)

    40,041       26,672,912  

Insulet Corp.(a)

    42,383       13,139,578  

ResMed Inc.

    32,855       8,637,908  

STERIS PLC

    18,967       4,433,346  
   

 

 

 
          103,533,212  
Health Care Providers & Services — 1.3%            

DaVita Inc.(a)

    56,549       5,838,119  

HCA Healthcare Inc.

    62,671       15,696,578  

Humana Inc.

    19,894       9,214,105  

Laboratory Corp. of America Holdings(a)

    15,694       4,504,492  

Quest Diagnostics Inc.

    119,892       17,597,748  
   

 

 

 
      52,851,042  
Health Care Technology — 0.4%            

Cerner Corp.

    84,750       6,296,078  

Teladoc Health Inc.(a)(c)

    58,455       8,744,283  
   

 

 

 
      15,040,361  
Hotels, Restaurants & Leisure — 0.9%            

Booking Holdings Inc.(a)

    2,188       5,296,667  

Darden Restaurants Inc.

    33,264       4,794,673  

Hilton Worldwide Holdings Inc.(a)

    71,187       10,247,369  

McDonald’s Corp.

    24,027       5,899,830  

Vail Resorts Inc.

    33,002       11,376,119  
   

 

 

 
      37,614,658  
Household Durables — 0.1%            

Newell Brands Inc.

    160,995       3,685,176  
   

 

 

 
Household Products — 1.9%            

Clorox Co. (The)

    72,054       11,745,523  

Colgate-Palmolive Co.

    169,454       12,910,700  

Kimberly-Clark Corp.

    113,320       14,673,807  

Procter & Gamble Co. (The)

    272,957       39,030,121  
   

 

 

 
      78,360,151  
Independent Power and Renewable Electricity Producers — 0.2%  

AES Corp. (The)

    369,294       9,280,358  
   

 

 

 
Industrial Conglomerates — 1.4%            

3M Co.

    323,105       57,732,401  
   

 

 

 
Insurance — 2.4%            

American International Group Inc.

    118,310       6,990,938  

Chubb Ltd.

    21,099       4,122,323  

Marsh & McLennan Companies Inc.

    340,325       56,766,210  

Prudential Financial Inc.

    157,687       17,353,454  

Travelers Companies Inc. (The)

    83,477       13,429,780  
   

 

 

 
      98,662,705  
Interactive Media & Services — 5.3%            

Alphabet Inc., Class A(a)

    40,578       120,148,212  

Alphabet Inc., Class C, NVS(a)

    18,105       53,688,748  

Meta Platforms Inc, Class A(a)

    122,599       39,669,358  
Security   Shares     Value  
Interactive Media & Services (continued)            

Snap Inc., Class A, NVS(a)

    67,491     $ 3,548,677  
   

 

 

 
      217,054,995  
Internet & Direct Marketing Retail — 0.4%            

eBay Inc.

    58,966       4,523,872  

Etsy Inc.(a)

    22,038       5,524,706  

MercadoLibre Inc.(a)

    5,723       8,475,877  
   

 

 

 
      18,524,455  
IT Services — 5.6%            

Accenture PLC, Class A

    128,912       46,252,336  

Automatic Data Processing Inc.

    190,465       42,757,488  

Fiserv Inc.(a)

    33,637       3,312,908  

International Business Machines Corp.

    215,836       27,001,084  

Mastercard Inc., Class A

    88,392       29,657,284  

Okta Inc.(a)

    27,742       6,857,267  

PayPal Holdings Inc.(a)

    116,742       27,153,022  

Square Inc., Class A(a)(c)

    37,122       9,447,549  

Twilio Inc., Class A(a)

    16,838       4,905,920  

Visa Inc., Class A(c)

    153,195       32,442,105  
   

 

 

 
          229,786,963  
Leisure Products — 0.3%            

Hasbro Inc.

    120,906       11,577,959  
   

 

 

 
Life Sciences Tools & Services — 3.8%            

Agilent Technologies Inc.

    280,372       44,155,786  

Illumina Inc.(a)

    21,393       8,879,378  

Mettler-Toledo International Inc.(a)

    14,810       21,931,833  

Thermo Fisher Scientific Inc.

    7,086       4,485,934  

Waters Corp.(a)

    81,772       30,055,299  

West Pharmaceutical Services Inc.

    107,391       46,165,243  
   

 

 

 
      155,673,473  
Machinery — 2.7%            

Caterpillar Inc.

    103,150       21,043,631  

Cummins Inc.

    124,020       29,744,957  

Deere & Co.

    23,667       8,101,451  

Xylem Inc./NY

    402,257       52,530,742  
   

 

 

 
      111,420,781  
Media — 0.7%            

Cable One Inc.

    6,883       11,778,259  

Discovery Inc., Class C, NVS(a)

    147,647       3,330,916  

Interpublic Group of Companies Inc. (The)

    218,439       7,988,314  

Omnicom Group Inc.

    54,950       3,740,996  
   

 

 

 
      26,838,485  
Metals & Mining — 0.1%            

Newmont Corp.

    89,293       4,821,822  
   

 

 

 
Multi-Utilities — 0.9%            

CMS Energy Corp.

    270,988       16,354,126  

Consolidated Edison Inc.

    74,935       5,650,099  

Public Service Enterprise Group Inc.

    145,469       9,280,922  

Sempra Energy

    41,578       5,306,600  
   

 

 

 
      36,591,747  
Multiline Retail — 0.5%            

Target Corp.

    82,109       21,317,139  
   

 

 

 
Oil, Gas & Consumable Fuels — 1.7%            

Cheniere Energy Inc.(a)

    47,059       4,865,901  

ConocoPhillips

    424,226       31,600,595  

Hess Corp.

    238,016       19,652,981  

Kinder Morgan Inc.

    245,998       4,120,466  

 

 

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

  21


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® MSCI USA ESG Select ETF

(Percentages shown are based on Net Assets)

 

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

ONEOK Inc.

    174,047     $ 11,072,870  
   

 

 

 
      71,312,813  
Pharmaceuticals — 1.3%            

Eli Lilly & Co.

    34,170       8,705,149  

Merck & Co. Inc.

    165,882       14,605,910  

Zoetis Inc.

    144,670       31,277,654  
   

 

 

 
      54,588,713  
Professional Services — 0.6%            

IHS Markit Ltd.

    130,447       17,052,032  

Robert Half International Inc.

    56,731       6,414,574  
   

 

 

 
      23,466,606  
Real Estate Management & Development — 0.6%  

CBRE Group Inc., Class A(a)

    240,533       25,034,675  
   

 

 

 
Road & Rail — 0.8%            

CSX Corp.

    162,803       5,888,585  

Kansas City Southern

    56,812       17,625,923  

Norfolk Southern Corp.

    30,742       9,008,943  
   

 

 

 
      32,523,451  
Semiconductors & Semiconductor Equipment — 6.2%  

Applied Materials Inc.

    302,273       41,305,605  

Intel Corp.

    534,183       26,174,967  

Lam Research Corp.

    28,276       15,935,505  

Marvell Technology Inc.

    84,987       5,821,610  

Micron Technology Inc.

    78,930       5,454,063  

NVIDIA Corp.

    381,746       97,601,000  

ON Semiconductor Corp.(a)

    113,077       5,435,611  

Texas Instruments Inc.

    305,723       57,316,948  
   

 

 

 
          255,045,309  
Software — 11.7%            

Adobe Inc.(a)

    84,528       54,973,630  

ANSYS Inc.(a)

    27,069       10,274,851  

Autodesk Inc.