LOGO

  JULY 31, 2022

 

  

2022 Annual Report

 

 

iShares Trust

 

·  

iShares China Large-Cap ETF | FXI | NYSE Arca

 

·  

iShares MSCI China A ETF | CNYA | Cboe BZX

 


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  

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


Table of Contents

 

      Page  

The Markets in Review

     2  

Annual Report:

  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     9  

Disclosure of Expenses

     9  

Schedules of Investments

     10  

Financial Statements:

  

Statements of Assets and Liabilities

     20  

Statements of Operations

     21  

Statements of Changes in Net Assets

     22  

Financial Highlights

     23  

Notes to Financial Statements

     25  

Report of Independent Registered Public Accounting Firm

     34  

Important Tax Information

     35  

Board Review and Approval of Investment Advisory Contract

     36  

Supplemental Information

     40  

Trustee and Officer Information

     42  

General Information

     45  

Glossary of Terms Used in this Report

     46  

 

 

  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.

 

 

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Fund Summary as of July 31, 2022    iShares® China Large-Cap ETF

 

Investment Objective

The iShares China Large-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization Chinese equities that trade on the Hong Kong Stock Exchange, as represented by the FTSE China 50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (23.54 )%       (4.35 )%       1.09       (23.54 )%       (19.95 )%       11.46

Fund Market

    (23.86      (4.35      1.16         (23.86      (19.94      12.18  

Index

    (22.86      (3.53      1.90               (22.86      (16.45      20.72  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

Expense Example

 

    Actual     Hypothetical 5% Return  
 

 

 

     

 

 

      
     

Beginning
Account Value
(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          $        808.60          $        3.32               $          1,000.00          $        1,021.10          $        3.71          0.74

 

  (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.

 

 

 

F U N D   S U M M A R Y

  5


Fund Summary as of July 31, 2022  (continued)    iShares® China Large-Cap ETF

 

Portfolio Management Commentary

Large-capitalization Chinese stocks declined significantly for the reporting period as economic growth slowed amid pandemic-related restrictions. A far-reaching regulatory crackdown, mounting stress in the property market, rising unemployment, weakness in consumer spending, inflationary pressures, and supply chain disruptions weighed on Chinese markets.

Technology-related stocks in the consumer discretionary sector drove the majority of detraction from the Index’s return, due to concerns surrounding slowing growth driven by lockdowns, widespread quarantines, and regulatory restrictions. The government’s campaign to rein in large internet firms by lessening their market advantages included billions of dollars in antitrust fines, which continued into July 2022, and development of a state-backed cloud system to compete with private industry. While investor sentiment periodically shifted toward signs of an easing crackdown, further government statements repeatedly reignited uncertainty. The internet and direct marketing industry declined as regulations weakened companies’ competitive advantages, while concerns surrounding new customer growth and slowing consumption pressured margins and earnings. Growth in cloud businesses stagnated amid competition from government-backed rivals. The possibility of delisting from U.S. exchanges amid a cross-border auditing dispute also weighed on Chinese stocks.

Technology-related stocks in the communication services sector also weighed substantially on the Index’s return as COVID-related restrictions and regulatory issues weighed on earnings and forward guidance. The media and entertainment industry declined amid rules limiting video game use and restrictions on key advertisers. Revenue growth slowed for media and videogaming firms, constraining earnings and raising concerns about future growth. While China resumed the approval of video games in April 2022 after a months-long suspension, titles from two of the country’s largest gaming companies were not included.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments

(a) 

Consumer Discretionary

    34.3

Financials

    26.3  

Communication Services

    17.8  

Health Care

    4.6  

Real Estate

    3.9  

Energy

    3.8  

Information Technology

    2.8  

Consumer Staples

    2.6  

Materials

    1.7  

Industrials

    1.5  

Utilities

    0.7  

 

  (a)

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments

(a) 

Meituan, Class B

    8.7

Alibaba Group Holding Ltd.

    7.9  

Tencent Holdings Ltd.

    7.7  

JD.com Inc., Class A

    6.3  

China Construction Bank Corp., Class H

    5.1  

Industrial & Commercial Bank of China Ltd., Class H

    4.6  

Baidu Inc.

    4.3  

Wuxi Biologics Cayman Inc.

    4.1  

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

    4.1  

BYD Co. Ltd., Class H

    3.6  

 

 

6  

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Fund Summary as of July 31, 2022    iShares® MSCI China A ETF

 

Investment Objective

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

Performance

 

      Average Annual Total Returns               Cumulative Total Returns    
     1 Year      5 Years     

Since

Inception

           1 Year      5 Years     

Since

Inception

 

Fund NAV

    (14.18 )%       5.62      8.16       (14.18 )%       31.42      61.80

Fund Market

    (14.81      5.44        8.09         (14.81      30.33        61.17  

Index

    (13.92      4.78        7.17               (13.92      26.27        52.92  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was June 13, 2016. The first day of secondary market trading was June 15, 2016.

Index performance through April 25, 2018 reflects the performance of the MSCI China A International Index. Index performance beginning on April 26, 2018 reflects the performance of the MSCI China A Inclusion Index.

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

Expense Example

 

    Actual     Hypothetical 5% Return  
 

 

 

     

 

 

      
     

Beginning
Account Value
(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          $        883.80          $        1.12               $        1,000.00          $        1,023.60          $        1.20          0.24

 

  (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.

 

 

 

F U N D   S U M M A R Y

  7


Fund Summary as of July 31, 2022  (continued)    iShares® MSCI China A ETF

 

Portfolio Management Commentary

Domestic Chinese equities declined during the reporting period as economic growth slowed and pandemic-related restrictions continued, including widespread lockdowns. Stress mounted in the property market amid falling prices, a debt crisis, and a homebuyer boycott of mortgage payments. Unemployment ran high and consumer spending weakened, while inflationary pressures mounted and supply chain disruptions continued. A regulatory crackdown on large internet firms continued to weigh on investor sentiment. Concerns about delisting from U.S. exchanges arising from audit requirements also weighed on Chinese stocks.

In that environment, the information technology sector detracted from the Index’s return. Weaker demand for consumer electronics raised concerns about future growth as slowing sales of personal computers and smartphones weighed on the technology hardware and equipment industry and the semiconductors and semiconductor equipment industry. Sales and production of microchips in China declined, as did memory prices, and concerns surrounding capacity additions and rising inventory levels raised fears that the mismatch between semiconductor supply and demand had abated.

In the healthcare sector, stocks in the pharmaceuticals, biotechnology, and life sciences industry detracted substantially from the Index’s return, declining as acquisition and initial public offering activity slowed. Tighter regulations, including drug price reductions, weighed on the industry. Oversupply of COVID vaccines weakened producers’ profit margins, while a domestically produced messenger RNA vaccine remained out of reach.

In the materials sector, chemicals stocks detracted from the Index’s return as higher costs compressed margins, demand softened, and manufacturing slowed. In the metals and mining industry, producers of battery metals such as lithium and cobalt declined as prices showed signs of abating after a run-up fueled by electric vehicle battery demand, raising concerns about a correction.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments

(a) 

Financials

    17.0

Industrials

    16.6  

Consumer Staples

    16.6  

Information Technology

    13.2  

Materials

    12.1  

Health Care

    8.6  

Consumer Discretionary

    7.2  

Utilities

    3.1  

Energy

    2.8  

Real Estate

    1.7  

Communication Services

    1.1  

 

  (a)

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments

(a) 

Kweichow Moutai Co. Ltd., Class A

    6.0

Contemporary Amperex Technology Co. Ltd., Class A

    3.0  

China Merchants Bank Co. Ltd., Class A

    1.8  

Wuliangye Yibin Co. Ltd., Class A

    1.7  

BYD Co. Ltd., Class A

    1.4  

China Yangtze Power Co. Ltd., Class A

    1.4  

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

    1.2  

LONGi Green Energy Technology Co. Ltd., Class A

    1.2  

China Tourism Group Duty Free Corp. Ltd., Class A

    1.1  

Industrial Bank Co. Ltd., Class A

    0.9  

 

 

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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.

 

 

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

  9


Schedule of Investments  

July 31, 2022

  

iShares® China Large-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Automobiles — 5.7%            

BYD Co. Ltd., Class H

    5,170,000     $   189,149,473  

Great Wall Motor Co. Ltd., Class H

    19,639,500       31,134,786  

XPeng Inc.(a)

    6,648,800       80,726,834  
   

 

 

 
      301,011,093  
Banks — 18.5%            

Agricultural Bank of China Ltd., Class H

    194,767,000       64,238,448  

Bank of China Ltd., Class H

    482,214,000       171,468,146  

Bank of Communications Co. Ltd., Class H

    46,103,200       27,441,227  

China CITIC Bank Corp. Ltd., Class H

    59,054,000       24,683,397  

China Construction Bank Corp., Class H

    415,717,320       265,481,310  

China Everbright Bank Co. Ltd., Class H

    19,651,000       5,959,841  

China Merchants Bank Co. Ltd., Class H

    23,977,938       129,559,942  

China Minsheng Banking Corp. Ltd., Class H

    40,381,100       13,170,111  

Industrial & Commercial Bank of China Ltd., Class H

    451,801,995       238,862,124  

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

    59,348,000       39,266,074  
   

 

 

 
      980,130,620  
Beverages — 2.5%            

China Resources Beer Holdings Co. Ltd.

    9,968,000       68,756,384  

Nongfu Spring Co. Ltd., Class H(b)(c)

    11,055,200       66,255,881  
   

 

 

 
      135,012,265  
Capital Markets — 1.0%            

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

    9,365,200       17,220,035  

CITIC Securities Co. Ltd., Class H

    14,218,700       29,236,271  

CSC Financial Co. Ltd., Class H(b)

    5,682,500       5,309,529  
   

 

 

 
      51,765,835  
Construction & Engineering — 0.3%            

China Railway Group Ltd., Class H

    25,617,000       15,249,662  
   

 

 

 
Construction Materials — 0.6%            

Anhui Conch Cement Co. Ltd., Class H

    7,496,000       29,659,263  
   

 

 

 
Entertainment — 3.3%            

NetEase Inc.

    9,421,300       176,241,992  
   

 

 

 
Household Durables — 0.9%            

Haier Smart Home Co. Ltd., Class H(c)

    14,652,600       46,895,766  
   

 

 

 
Independent Power and Renewable Electricity Producers — 0.6%        

China Longyuan Power Group Corp. Ltd., Class H

    21,163,000       33,999,620  
   

 

 

 
Industrial Conglomerates — 0.6%            

CITIC Ltd.

    31,095,000       33,631,826  
   

 

 

 
Insurance — 6.3%            

China Life Insurance Co. Ltd., Class H

    47,149,000       70,224,651  

China Pacific Insurance Group Co. Ltd., Class H

    16,352,200       34,928,692  

People’s Insurance Co. Group of China Ltd. (The), Class H

    51,968,000       15,559,563  

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

    36,163,500       212,534,284  
   

 

 

 
      333,247,190  
Interactive Media & Services — 14.2%            

Baidu Inc.(a)

    13,063,000       225,786,090  

Kuaishou Technology(a)(b)

    12,246,500       123,131,736  

Tencent Holdings Ltd.

    10,371,800       400,857,741  
   

 

 

 
      749,775,567  
Internet & Direct Marketing Retail — 22.5%  

Alibaba Group Holding Ltd.(a)

    36,448,500       409,807,560  

JD.com Inc., Class A

    10,899,550       325,161,317  
Security   Shares     Value  

Internet & Direct Marketing Retail (continued)

 

Meituan, Class B(a)(b)

    20,273,100     $ 454,793,527  
   

 

 

 
        1,189,762,404  
Life Sciences Tools & Services — 4.5%            

WuXi AppTec Co. Ltd., Class H(b)

    2,122,752       25,715,398  

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

    22,463,000       215,018,395  
   

 

 

 
      240,733,793  
Marine — 0.6%            

COSCO SHIPPING Holdings Co. Ltd., Class H(c)

    20,587,100       30,886,454  
   

 

 

 
Metals & Mining — 1.1%            

Ganfeng Lithium Co. Ltd., Class H(b)

    1,510,840       13,661,413  

Zijin Mining Group Co. Ltd., Class H

    36,350,000       42,595,338  
   

 

 

 
      56,256,751  
Oil, Gas & Consumable Fuels — 3.7%            

China Petroleum & Chemical Corp., Class H

    161,658,600       76,214,949  

China Shenhua Energy Co. Ltd., Class H

    21,400,500       60,485,074  

PetroChina Co. Ltd., Class H

    131,840,000       61,563,934  
   

 

 

 
      198,263,957  
Real Estate Management & Development — 3.8%  

China Overseas Land & Investment Ltd.

    24,272,000       67,073,707  

China Resources Land Ltd.

    17,439,333       72,831,519  

China Vanke Co. Ltd., Class H

    12,046,200       22,912,793  

Longfor Group Holdings Ltd.(b)

    11,676,500       39,015,471  
   

 

 

 
      201,833,490  
Technology Hardware, Storage & Peripherals — 2.8%        

Xiaomi Corp., Class B(a)(b)

    92,817,600       145,982,153  
   

 

 

 

Textiles, Apparel & Luxury Goods — 4.6%

 

 

ANTA Sports Products Ltd.(c)

    7,181,800       79,077,752  

Li Ning Co. Ltd.

    14,381,500       116,657,423  

Shenzhou International Group Holdings Ltd.

    4,787,300       50,353,591  
   

 

 

 
      246,088,766  
   

 

 

 

Total Long-Term Investments — 98.1%
(Cost: $6,291,316,208)

      5,196,428,467  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 1.1%            

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

    53,502,469       53,497,119  

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

    2,890,000       2,890,000  
   

 

 

 

Total Short-Term Securities — 1.1%
(Cost: $56,385,784)

      56,387,119  
   

 

 

 

Total Investments in Securities — 99.2%
(Cost: $6,347,701,992)

      5,252,815,586  

Other Assets Less Liabilities — 0.8%

      40,879,033  
   

 

 

 

Net Assets — 100.0%

    $   5,293,694,619  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

All or a portion of this security is on loan.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 

10  

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


Schedule of Investments  (continued)

July 31, 2022

  

iShares® China Large-Cap 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

   $ 48,946,269      $ 4,565,176 (a)    $     $ (106    $ (14,220    $ 53,497,119        53,502,469      $ 364,328 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     222,350,000              (219,460,000 )(a)                    2,890,000        2,890,000        13,185        
         

 

 

    

 

 

    

 

 

       

 

 

   

 

 

 
          $ (106    $ (14,220    $ 56,387,119         $ 377,513     $  
         

 

 

    

 

 

    

 

 

       

 

 

   

 

 

 

 

  (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

           

MSCI China Future Index

     3,926        09/16/22      $ 95,886      $ (11,296,936
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

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

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 11,296,936      $      $      $      $ 11,296,936  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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

   $      $      $ (6,121,002    $      $      $      $ (6,121,002
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (6,343,835    $      $      $      $ (6,343,835
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 34,741,134    

 

 

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

 

 

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

  11


Schedule of Investments  (continued)

July 31, 2022

  

iShares® China Large-Cap 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

   $        $ 5,196,428,467        $        $ 5,196,428,467  

Money Market Funds

     56,387,119                            56,387,119  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $   56,387,119        $   5,196,428,467        $        $   5,252,815,586  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $        $ (11,296,936      $        $ (11,296,936
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

12  

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


Schedule of Investments

July 31, 2022

  

iShares® MSCI China A ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 0.7%            

AECC Aero-Engine Control Co. Ltd., Class A

    124,498     $ 503,898  

AECC Aviation Power Co. Ltd., Class A

    249,298       1,840,198  

AVIC Electromechanical Systems Co. Ltd., Class A

    435,499       763,416  

AVICOPTER PLC, Class A

    62,299       404,169  

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

    207,240       552,947  
   

 

 

 
        4,064,628  
Air Freight & Logistics — 1.0%            

SF Holding Co. Ltd., Class A

    466,915       3,451,528  

Sinotrans Ltd., Class A

    436,600       243,736  

YTO Express Group Co. Ltd., Class A

    311,000       890,965  

Yunda Holding Co. Ltd., Class A

    249,200       668,468  
   

 

 

 
      5,254,697  
Airlines — 0.5%            

Air China Ltd., Class A(a)

    622,800       891,663  

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

    874,400       635,400  

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

    1,029,124       976,981  
   

 

 

 
      2,504,044  
Auto Components — 1.5%            

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

    31,197       813,657  

Fuyao Glass Industry Group Co. Ltd., Class A

    186,600       1,133,863  

Huayu Automotive Systems Co. Ltd., Class A

    280,700       912,307  

Huizhou Desay Sv Automotive Co. Ltd., Class A

    45,700       1,324,992  

Ningbo Joyson Electronic Corp., Class A(a)

    124,800       399,706  

Ningbo Tuopu Group Co. Ltd., Class A

    125,105       1,716,460  

Sailun Group Co. Ltd., Class A

    279,900       492,868  

Shandong Linglong Tyre Co. Ltd., Class A

    124,800       531,794  

Shenzhen Kedali Industry Co. Ltd., Class A

    31,100       669,235  
   

 

 

 
      7,994,882  
Automobiles — 2.6%            

BYD Co. Ltd., Class A

    167,273       7,978,139  

Chongqing Changan Automobile Co. Ltd., Class A

    768,938       2,096,488  

FAW Jiefang Group Co. Ltd., Class A

    279,900       361,238  

Great Wall Motor Co. Ltd., Class A

    217,789       1,115,203  

Guangzhou Automobile Group Co. Ltd., Class A

    466,500       1,031,421  

SAIC Motor Corp. Ltd., Class A

    746,806       1,794,981  
   

 

 

 
      14,377,470  
Banks — 9.4%            

Agricultural Bank of China Ltd., Class A

    7,998,700       3,378,533  

Bank of Beijing Co. Ltd., Class A

    2,021,500       1,249,555  

Bank of Changsha Co. Ltd., Class A

    373,200       409,457  

Bank of Chengdu Co. Ltd., Class A

    342,177       781,841  

Bank of China Ltd., Class A

    3,329,700       1,509,966  

Bank of Communications Co. Ltd., Class A

    3,704,902       2,537,063  

Bank of Hangzhou Co. Ltd., Class A

    560,288       1,188,030  

Bank of Jiangsu Co. Ltd., Class A

    1,399,500       1,494,611  

Bank of Nanjing Co. Ltd., Class A

    934,280       1,431,719  

Bank of Ningbo Co. Ltd., Class A

    622,021       2,880,123  

Bank of Shanghai Co. Ltd., Class A

    1,370,469       1,210,932  

China Construction Bank Corp., Class A

    934,200       771,330  

China Everbright Bank Co. Ltd., Class A

    3,924,200       1,687,268  

China Merchants Bank Co. Ltd., Class A

    1,931,002       10,045,232  

China Minsheng Banking Corp. Ltd., Class A

    3,392,380       1,830,017  

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

    1,586,100       761,638  

Chongqing Rural Commercial Bank Co. Ltd., Class A

    870,830       462,213  

Huaxia Bank Co. Ltd., Class A

    1,244,060       944,127  

Industrial & Commercial Bank of China Ltd., Class A

    5,915,000       3,839,258  
Security   Shares     Value  
Banks (continued)            

Industrial Bank Co. Ltd., Class A

    1,928,247     $ 5,083,148  

Ping An Bank Co. Ltd., Class A

    1,803,856       3,393,969  

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

    2,459,700       1,710,746  

Qingdao Rural Commercial Bank Corp., Class A

    562,300       258,530  

Shanghai Pudong Development Bank Co. Ltd., Class A

    2,770,720       2,981,733  
   

 

 

 
        51,841,039  
Beverages — 11.2%            

Anhui Gujing Distillery Co. Ltd., Class A

    31,199       987,471  

Anhui Kouzi Distillery Co. Ltd., Class A

    62,200       461,901  

Anhui Yingjia Distillery Co. Ltd., Class A

    62,200       502,998  

Beijing Shunxin Agriculture Co. Ltd., Class A

    63,000       219,370  

Chongqing Brewery Co. Ltd., Class A

    49,695       905,040  

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

    124,400       807,173  

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

    142,800       3,498,010  

JiuGui Liquor Co. Ltd., Class A

    31,100       680,011  

Kweichow Moutai Co. Ltd., Class A

    117,803       33,121,325  

Luzhou Laojiao Co. Ltd., Class A

    141,600       4,665,030  

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

    96,488       386,557  

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

    112,101       4,552,681  

Sichuan Swellfun Co. Ltd., Class A

    50,100       530,328  

Tsingtao Brewery Co. Ltd., Class A

    67,800       990,658  

Wuliangye Yibin Co. Ltd., Class A

    354,714       9,386,691  
   

 

 

 
      61,695,244  
Biotechnology — 1.8%            

Beijing Tiantan Biological Products Corp. Ltd., Class A

    150,421       446,270  

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

    62,255       1,247,977  

BGI Genomics Co. Ltd., Class A

    36,700       337,278  

Bloomage Biotechnology Corp. Ltd., Class A

    28,498       673,798  

Chongqing Zhifei Biological Products Co. Ltd., Class A

    155,500       2,292,970  

Daan Gene Co. Ltd., Class A

    124,444       346,424  

Hualan Biological Engineering Inc., Class A

    156,748       465,391  

Imeik Technology Development Co. Ltd., Class A

    16,000       1,391,461  

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

    63,308       575,655  

Shanghai RAAS Blood Products Co. Ltd., Class A

    559,800       478,873  

Shenzhen Kangtai Biological Products Co. Ltd., Class A

    105,256       520,775  

Walvax Biotechnology Co. Ltd., Class A

    155,598       1,002,347  

Zhejiang Orient Gene Biotech Co. Ltd., Class A

    13,956       234,683  
   

 

 

 
      10,013,902  
Building Products — 0.3%            

Beijing New Building Materials PLC, Class A

    155,900       665,164  

Guangdong Kinlong Hardware Products Co. Ltd., Class A

    31,120       371,265  

Zhejiang Weixing New Building Materials Co. Ltd., Class A

    124,404       362,692  

Zhuzhou Kibing Group Co. Ltd., Class A

    222,800       378,552  
   

 

 

 
      1,777,673  
Capital Markets — 5.5%            

BOC International China Co. Ltd., Class A

    248,800       465,476  

Caitong Securities Co. Ltd., Class A

    404,351       436,918  

Changjiang Securities Co. Ltd., Class A

    560,200       451,620  

China Galaxy Securities Co. Ltd., Class A

    373,600       481,852  

China Great Wall Securities Co. Ltd., Class A

    218,100       291,028  

China International Capital Corp. Ltd., Class A

    124,400       783,586  

China Merchants Securities Co. Ltd., Class A

    684,207       1,410,493  

CITIC Securities Co. Ltd., Class A

    1,119,670       3,258,333  

CSC Financial Co. Ltd., Class A

    404,739       1,562,942  

Dongxing Securities Co. Ltd., Class A

    342,139       416,526  

East Money Information Co. Ltd., Class A

    1,212,916       4,008,938  

Everbright Securities Co. Ltd., Class A

    373,600       839,748  

 

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

  13


Schedule of Investments  (continued)

July 31, 2022

  

iShares® MSCI China A ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Capital Markets (continued)

 

First Capital Securities Co. Ltd., Class A

    373,200     $ 338,062  

Founder Securities Co. Ltd., Class A

    747,200       728,126  

GF Securities Co. Ltd., Class A

    560,200       1,324,478  

Guangzhou Yuexiu Financial Holdings Group Co. Ltd., Class A

    410,091       389,359  

Guolian Securities Co. Ltd., Class A

    217,700       344,330  

Guosen Securities Co. Ltd., Class A

    574,100       784,078  

Guotai Junan Securities Co. Ltd., Class A

    684,645       1,468,487  

Guoyuan Securities Co. Ltd., Class A

    404,744       388,049  

Haitong Securities Co. Ltd., Class A

    903,500       1,252,287  

Hithink RoyalFlush Information Network Co. Ltd., Class A

    62,200       794,674  

Huatai Securities Co. Ltd., Class A

    654,300       1,287,873  

Huaxi Securities Co. Ltd., Class A

    249,200       274,895  

Industrial Securities Co. Ltd., Class A

    592,160       567,657  

Nanjing Securities Co. Ltd., Class A

    311,462       368,895  

Northeast Securities Co. Ltd., Class A

    218,100       224,500  

Orient Securities Co. Ltd., Class A

    697,621       896,025  

Sealand Securities Co. Ltd., Class A

    498,800       256,747  

Shanxi Securities Co. Ltd., Class A

    342,557       277,177  

Shenwan Hongyuan Group Co. Ltd., Class A

    2,055,000       1,259,321  

Sinolink Securities Co. Ltd., Class A

    342,988       432,219  

SooChow Securities Co. Ltd., Class A

    467,338       457,616  

Southwest Securities Co. Ltd., Class A

    635,600       360,186  

Western Securities Co. Ltd., Class A

    405,520       382,832  

Zheshang Securities Co. Ltd., Class A(a)

    342,527       543,797  

Zhongtai Securities Co. Ltd., Class A

    529,900       573,167  
   

 

 

 
        30,382,297  
Chemicals — 6.0%            

Asia - Potash International Investment Guangzhou Co. Ltd., Class A(a)

    62,200       321,162  

CNGR Advanced Material Co. Ltd., Class A

    31,100       573,802  

CNNC Hua Yuan Titanium Dioxide Co. Ltd., Class A

    272,740       401,400  

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

    63,000       455,002  

Guangzhou Tinci Materials Technology Co. Ltd., Class A

    186,720       1,451,188  

Hangzhou Oxygen Plant Group Co. Ltd., Class A

    93,300       533,571  

Hengli Petrochemical Co. Ltd., Class A

    529,115       1,584,274  

Hengyi Petrochemical Co. Ltd., Class A

    342,976       475,789  

Hoshine Silicon Industry Co. Ltd., Class A

    45,600       664,070  

Huafon Chemical Co. Ltd., Class A

    435,400       490,922  

Hubei Xingfa Chemicals Group Co. Ltd., Class A

    107,800       596,104  

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

    778,300       524,899  

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

    346,600       469,694  

Jiangsu Eastern Shenghong Co. Ltd., Class A

    373,200       1,092,289  

Jiangsu Yangnong Chemical Co. Ltd., Class A

    31,100       530,159  

Jiangsu Yoke Technology Co. Ltd., Class A

    46,100       347,189  

Kingfa Sci & Tech Co. Ltd., Class A

    252,100       377,044  

LB Group Co. Ltd., Class A

    217,709       657,137  

Luxi Chemical Group Co. Ltd., Class A

    186,600       389,767  

Ningbo Shanshan Co. Ltd., Class A

    186,600       785,226  

Ningxia Baofeng Energy Group Co. Ltd., Class A

    557,500       1,112,704  

Rongsheng Petrochemical Co. Ltd., Class A

    934,601       1,981,749  

Satellite Chemical Co. Ltd., Class A

    228,841       768,863  

Shandong Hualu Hengsheng Chemical Co. Ltd., Class A

    187,460       793,625  

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

    132,120       1,387,306  

Shenzhen Capchem Technology Co. Ltd., Class A

    72,820       479,689  

Shenzhen Dynanonic Co. Ltd., Class A

    16,200       861,679  

Shenzhen Senior Technology Co. Ltd., Class A

    124,417       527,129  

Sichuan Hebang Biotechnology Co. Ltd., Class A

    777,500       447,422  
Security   Shares     Value  

Chemicals (continued)

   

Sichuan Yahua Industrial Group Co. Ltd., Class A

    112,700     $ 487,942  

Sinoma Science & Technology Co. Ltd., Class A

    155,500       666,465  

Sinopec Shanghai Petrochemical Co. Ltd., Class A

    653,531       296,954  

Skshu Paint Co. Ltd., Class A(a)

    34,460       541,571  

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

    62,200       719,883  

Tongkun Group Co. Ltd., Class A

    218,597       467,792  

Transfar Zhilian Co. Ltd., Class A

    280,733       238,449  

Wanhua Chemical Group Co. Ltd., Class A

    311,800       3,871,885  

Weihai Guangwei Composites Co. Ltd., Class A

    62,295       647,810  

Xinjiang Zhongtai Chemical Co. Ltd., Class A

    248,800       273,016  

Yunnan Energy New Material Co. Ltd., Class A

    81,615       2,589,014  

Zhejiang Juhua Co. Ltd., Class A

    249,200       639,460  

Zhejiang Yongtai Technology Co. Ltd., Class A

    93,300       425,633  

Zibo Qixiang Tengda Chemical Co. Ltd., Class A(a)

    273,600       305,132  
   

 

 

 
        33,251,860  
Commercial Services & Supplies — 0.3%            

Beijing Originwater Technology Co. Ltd., Class A

    373,200       307,831  

Shanghai M&G Stationery Inc., Class A

    93,300       627,652  

Zhejiang Weiming Environment Protection Co. Ltd., Class A

    155,453       677,054  
   

 

 

 
      1,612,537  
Communications Equipment — 0.7%            

Fiberhome Telecommunication Technologies Co. Ltd., Class A

    93,399       200,052  

Guangzhou Haige Communications Group Inc. Co., Class A

    186,600       247,491  

Hengtong Optic-Electric Co. Ltd., Class A

    223,600       519,113  

Tianjin 712 Communication & Broadcasting Co. Ltd., Class A

    62,600       286,533  

Yealink Network Technology Corp. Ltd., Class A

    93,355       1,050,733  

Zhongji Innolight Co. Ltd., Class A

    62,688       304,827  

ZTE Corp., Class A

    373,200       1,352,263  
   

 

 

 
      3,961,012  
Construction & Engineering — 1.8%            

China Energy Engineering Corp. Ltd., Class A(a)

    3,105,200       1,054,802  

China National Chemical Engineering Co. Ltd., Class A

    559,810       894,378  

China Railway Group Ltd., Class A

    1,928,200       1,651,565  

China State Construction Engineering Corp. Ltd., Class A

    3,918,600       2,925,641  

Metallurgical Corp. of China Ltd., Class A

    1,650,300       796,780  

Power Construction Corp. of China Ltd., Class A

    1,401,500       1,507,028  

Shanghai Construction Group Co. Ltd., Class A

    840,900       365,055  

Sichuan Road & Bridge Co. Ltd., Class A

    442,600       663,392  
   

 

 

 
      9,858,641  
Construction Materials — 0.7%            

Anhui Conch Cement Co. Ltd., Class A

    373,600       1,799,868  

BBMG Corp., Class A

    839,700       327,284  

China Jushi Co. Ltd., Class A

    373,550       827,758  

Huaxin Cement Co. Ltd., Class A

    124,419       331,080  

Tangshan Jidong Cement Co. Ltd., Class A

    248,800       356,130  
   

 

 

 
      3,642,120  
Distributors — 0.1%            

Wuchan Zhongda Group Co. Ltd., Class A

    498,014       354,518  
   

 

 

 
Diversified Financial Services — 0.1%            

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

    870,801       421,001  
   

 

 

 
Electrical Equipment — 7.5%            

Beijing Easpring Material Technology Co. Ltd., Class A

    62,200       885,498  

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

    217,702       16,506,674  

 

14  

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


Schedule of Investments  (continued)

July 31, 2022

  

iShares® MSCI China A ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Electrical Equipment (continued)

 

Dongfang Electric Corp. Ltd., Class A

    249,290     $ 640,948  

Eve Energy Co. Ltd., Class A

    186,682       2,617,335  

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

    342,528       359,174  

Ginlong Technologies Co. Ltd., Class A

    39,100       1,331,085  

Gotion High-tech Co. Ltd., Class A

    157,000       910,928  

Hongfa Technology Co. Ltd., Class A

    101,100       615,743  

Jiangsu Zhongtian Technology Co. Ltd., Class A(a)

    311,400       1,063,674  

Jiangxi Special Electric Motor Co. Ltd., Class A, NVS(a)

    155,500       565,210  

Ming Yang Smart Energy Group Ltd., Class A

    201,200       894,057  

NARI Technology Co. Ltd., Class A

    628,574       2,721,751  

Ningbo Orient Wires & Cables Co. Ltd., Class A

    62,200       737,298  

Ningbo Ronbay New Energy Technology Co. Ltd., Class A

    40,058       826,875  

Shanghai Electric Group Co. Ltd., Class A

    1,152,350       759,940  

Sieyuan Electric Co. Ltd., Class A

    63,000       413,887  

Sungrow Power Supply Co. Ltd., Class A

    140,600       2,585,655  

Sunwoda Electronic Co. Ltd., Class A

    155,599       663,447  

Suzhou Maxwell Technologies Co. Ltd., Class A

    15,360       1,078,036  

TBEA Co. Ltd., Class A

    342,500       1,269,439  

Titan Wind Energy Suzhou Co. Ltd., Class A

    156,300       412,953  

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

    298,751       661,898  

Zhefu Holding Group Co. Ltd., Class A

    440,600       307,641  

Zhejiang Chint Electrics Co. Ltd., Class A

    218,500       1,190,024  

Zhejiang HangKe Technology Inc. Co., Class A

    40,170       445,489  

Zhuzhou CRRC Times Electric Co. Ltd., Class A, NVS

    62,360       511,516  
   

 

 

 
        40,976,175  
Electronic Equipment, Instruments & Components — 4.2%  

Avary Holding Shenzhen Co. Ltd., Class A

    184,400       841,199  

Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd., Class A

    31,100       548,854  

BOE Technology Group Co. Ltd., Class A

    3,455,328       1,992,599  

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

    155,900       620,634  

China Railway Signal & Communication Corp. Ltd., Class A

    628,781       409,173  

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

    53,300       935,945  

Foxconn Industrial Internet Co. Ltd., Class A

    901,906       1,344,101  

GoerTek Inc., Class A

    311,804       1,471,301  

Guangzhou Shiyuan Electronic Technology Co. Ltd., Class A

    62,867       633,893  

Huagong Tech Co. Ltd., Class A

    93,383       305,946  

Lens Technology Co. Ltd., Class A

    435,800       704,791  

Lingyi iTech Guangdong Co., Class A(a)

    624,000       475,940  

Luxshare Precision Industry Co. Ltd., Class A

    654,368       3,293,524  

Maxscend Microelectronics Co. Ltd., Class A

    50,856       726,279  

OFILM Group Co. Ltd., Class A(a)

    280,700       251,931  

Raytron Technology Co. Ltd., Class A

    62,296       350,908  

Shanghai Friendess Electronic Technology Corp. Ltd., Class A

    14,144       519,137  

Shengyi Technology Co. Ltd., Class A

    218,182       514,231  

Shennan Circuits Co. Ltd., Class A

    62,267       800,596  

Shenzhen Sunlord Electronics Co. Ltd., Class A

    80,300       293,527  

Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A

    162,400       643,580  

Tianma Microelectronics Co. Ltd., Class A

    218,500       315,177  

Unisplendour Corp. Ltd., Class A

    251,891       693,903  

Westone Information Industry Inc., Class A

    62,200       404,883  

Wingtech Technology Co. Ltd., Class A

    124,411       1,267,390  

Wuhan Guide Infrared Co. Ltd., Class A

    262,611       484,320  

WUS Printed Circuit Kunshan Co. Ltd., Class A

    155,590       279,603  

Xiamen Faratronic Co. Ltd., Class A

    31,100       963,149  

Zhejiang Dahua Technology Co. Ltd., Class A

    251,300       552,093  
Security   Shares     Value  

Electronic Equipment, Instruments & Components (continued)

 

Zhuzhou Hongda Electronics Corp. Ltd., Class A

    31,100     $ 241,182  
   

 

 

 
        22,879,789  
Energy Equipment & Services — 0.1%            

Offshore Oil Engineering Co. Ltd., Class A

    405,968       254,238  

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

    93,385       497,122  
   

 

 

 
      751,360  
Entertainment — 0.6%            

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

    186,693       541,572  

Beijing Enlight Media Co. Ltd., Class A

    279,900       346,896  

G-Bits Network Technology Xiamen Co. Ltd., Class A

    5,500       289,669  

Giant Network Group Co. Ltd., Class A

    187,412       233,061  

Kunlun Tech Co. Ltd., Class A

    93,300       198,512  

Mango Excellent Media Co. Ltd., Class A

    186,680       869,265  

Perfect World Co. Ltd., Class A

    186,652       412,103  

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

    653,982       434,875  
   

 

 

 
      3,325,953  
Food & Staples Retailing — 0.2%            

DaShenLin Pharmaceutical Group Co. Ltd., Class A

    74,326       354,967  

Yifeng Pharmacy Chain Co. Ltd., Class A

    62,217       477,354  
   

 

 

 
      832,321  
Food Products — 4.9%            

Angel Yeast Co. Ltd., Class A

    93,796       617,254  

Anjoy Foods Group Co. Ltd., Class A

    31,100       677,475  

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

    373,600       401,982  

Chacha Food Co. Ltd., Class A

    62,200       440,386  

Chongqing Fuling Zhacai Group Co. Ltd., Class A

    62,200       274,925  

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

    373,566       4,580,574  

Fujian Sunner Development Co. Ltd., Class A

    124,400       364,894  

Guangdong Haid Group Co. Ltd., Class A

    155,599       1,515,058  

Heilongjiang Agriculture Co. Ltd., Class A

    155,900       324,384  

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

    311,400       1,238,642  

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

    591,700       3,141,257  

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

    279,900       252,103  

Jonjee Hi-Tech Industrial And Commercial Holding Co. Ltd., Class A

    78,562       404,276  

Juewei Food Co. Ltd., Class A

    62,200       482,045  

Muyuan Foods Co. Ltd., Class A

    498,019       4,408,313  

New Hope Liuhe Co. Ltd., Class A(a)

    418,500       987,700  

Toly Bread Co. Ltd., Class A

    132,365       275,208  

Tongwei Co. Ltd., Class A

    435,493       3,475,423  

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

    592,546       2,112,607  

Yihai Kerry Arawana Holdings Co. Ltd., Class A(a)

    125,200       850,643  

Yuan Longping High-Tech Agriculture Co. Ltd., Class A(a)

    124,400       275,074  
   

 

 

 
      27,100,223  
Gas Utilities — 0.1%            

ENN Natural Gas Co. Ltd., Class A

    218,900       559,950  
   

 

 

 
Health Care Equipment & Supplies — 1.3%            

Intco Medical Technology Co. Ltd., Class A

    68,236       232,680  

Jafron Biomedical Co. Ltd., Class A

    79,550       522,267  

Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A

    62,600       250,013  

Lepu Medical Technology Beijing Co. Ltd., Class A

    155,900       414,160  

Ovctek China Inc., Class A

    93,380       660,949  

Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A

    111,734       4,799,466  

 

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

  15


Schedule of Investments  (continued)

July 31, 2022

  

iShares® MSCI China A ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Health Care Equipment & Supplies (continued)

 

Shenzhen New Industries Biomedical Engineering Co. Ltd., Class A

    62,200     $ 371,318  
   

 

 

 
      7,250,853  
Health Care Providers & Services — 1.2%            

Aier Eye Hospital Group Co. Ltd., Class A

    648,149       2,923,224  

Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A

    42,097       434,211  

Huadong Medicine Co. Ltd., Class A

    155,925       1,041,233  

Jointown Pharmaceutical Group Co. Ltd., Class A

    202,570       340,374  

Meinian Onehealth Healthcare Holdings Co. Ltd., Class A(a)

    373,560       280,465  

Shanghai Pharmaceuticals Holding Co. Ltd., Class A

    249,209       634,614  

Topchoice Medical Corp., Class A(a)

    31,100       676,584  
   

 

 

 
      6,330,705  
Health Care Technology — 0.0%            

Winning Health Technology Group Co. Ltd., Class A

    187,088       219,909  
   

 

 

 
Hotels, Restaurants & Leisure — 0.4%            

BTG Hotels Group Co. Ltd., Class A

    93,300       289,156  

Shanghai Jinjiang International Hotels Co. Ltd., Class A

    93,300       855,225  

Shenzhen Overseas Chinese Town Co. Ltd., Class A

    779,156       645,611  

Songcheng Performance Development Co. Ltd., Class A

    248,872       472,396  
   

 

 

 
      2,262,388  
Household Durables — 1.5%            

Beijing Roborock Technology Co. Ltd., Class A

    9,364       452,405  

Ecovacs Robotics Co. Ltd., Class A

    49,300       677,294  

Gree Electric Appliances Inc. of Zhuhai, Class A

    276,500       1,363,752  

Haier Smart Home Co. Ltd., Class A

    591,700       2,175,640  

Hangzhou Robam Appliances Co. Ltd., Class A

    93,364       391,704  

Jason Furniture Hangzhou Co. Ltd., Class A

    81,220       556,277  

Oppein Home Group Inc., Class A

    52,483       936,510  

TCL Technology Group Corp., Class A

    1,307,838       861,371  

Xiamen Intretech Inc., Class A

    67,926       202,536  

Zhejiang Supor Co. Ltd., Class A

    62,298       433,373  
   

 

 

 
      8,050,862  
Independent Power and Renewable Electricity Producers — 3.0%  

CECEP Solar Energy Co. Ltd., Class A(a)

    283,800       375,568  

CECEP Wind Power Corp, Class A

    451,800       365,270  

China National Nuclear Power Co. Ltd., Class A

    1,648,347       1,508,315  

China Three Gorges Renewables Group Co. Ltd., Class A

    2,643,500       2,461,565  

China Yangtze Power Co. Ltd., Class A

    2,114,888       7,488,426  

GD Power Development Co. Ltd., Class A(a)

    1,617,200       914,011  

Huadian Power International Corp. Ltd., Class A

    777,500       498,237  

Huaneng Power International Inc., Class A(a)

    840,900       876,019  

SDIC Power Holdings Co. Ltd., Class A

    684,600       1,048,321  

Shenzhen Energy Group Co. Ltd., Class A

    435,818       413,343  

Sichuan Chuantou Energy Co. Ltd., Class A

    342,100       632,365  
   

 

 

 
      16,581,440  
Industrial Conglomerates — 0.1%            

China Baoan Group Co. Ltd., Class A

    218,100       460,741  
   

 

 

 
Insurance — 1.9%            

China Life Insurance Co. Ltd., Class A

    249,600       1,031,782  

China Pacific Insurance Group Co. Ltd., Class A

    653,416       1,957,765  

New China Life Insurance Co. Ltd., Class A

    187,400       806,298  

People’s Insurance Co. Group of China Ltd. (The), Class A

    685,500       473,781  

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

    1,027,123       6,415,723  
   

 

 

 
        10,685,349  
IT Services — 0.1%            

Beijing Sinnet Technology Co. Ltd., Class A

    155,999       222,102  
Security   Shares     Value  

IT Services (continued)

   

DHC Software Co. Ltd., Class A

    279,900     $ 256,782  
   

 

 

 
      478,884  
Life Sciences Tools & Services — 1.1%            

Hangzhou Tigermed Consulting Co. Ltd., Class A

    36,104       546,395  

Joinn Laboratories China Co. Ltd., Class A

    31,160       511,500  

Pharmaron Beijing Co. Ltd., Class A

    93,300       1,071,129  

Shanghai Medicilon Inc., Class A

    9,506       464,893  

WuXi AppTec Co. Ltd., Class A

    248,848       3,442,715  
   

 

 

 
      6,036,632  
Machinery — 2.7%            

China CSSC Holdings Ltd., Class A

    404,300       1,399,329  

CRRC Corp. Ltd., Class A

    2,292,190       1,750,903  

Jiangsu Hengli Hydraulic Co. Ltd., Class A

    124,424       961,313  

Keda Industrial Group Co. Ltd., Class A

    155,500       463,153  

Luoyang Xinqianglian Slewing Bearing Co. Ltd., Class A

    31,150       445,591  

Ningbo Deye Technology Co. Ltd., Class A, NVS

    14,400       715,422  

North Industries Group Red Arrow Co. Ltd., Class A

    132,900       646,627  

Riyue Heavy Industry Co. Ltd., Class A

    95,982       356,841  

Sany Heavy Industry Co. Ltd., Class A

    778,350       1,965,669  

Shenzhen Inovance Technology Co. Ltd., Class A

    248,811       2,438,686  

Weichai Power Co. Ltd., Class A

    622,000       1,104,392  

Wuxi Shangji Automation Co. Ltd., Class A

    35,380       857,889  

XCMG Construction Machinery Co. Ltd., Class A(a)

    716,100       594,073  

Zhejiang Dingli Machinery Co. Ltd., Class A

    63,098       400,196  

Zoomlion Heavy Industry Science and Technology Co. Ltd., Class A

    654,650       596,355  
   

 

 

 
        14,696,439  
Marine — 0.4%            

COSCO SHIPPING Holdings Co. Ltd., Class A

    1,183,450       2,409,076  
   

 

 

 
Media — 0.2%            

Focus Media Information Technology Co. Ltd., Class A

    1,309,060       1,147,811  
   

 

 

 
Metals & Mining — 5.1%            

Aluminum Corp. of China Ltd., Class A(a)

    1,214,100       842,309  

Anhui Honglu Steel Construction Group Co. Ltd., Class A

    71,230       316,364  

Baoshan Iron & Steel Co. Ltd., Class A

    2,086,570       1,756,424  

Chengtun Mining Group Co. Ltd., Class A

    249,600       291,753  

Chifeng Jilong Gold Mining Co. Ltd., Class A(a)

    156,300       423,096  

China Minmetals Rare Earth Co. Ltd., Class A(a)

    93,300       393,765  

China Northern Rare Earth Group High-Tech Co. Ltd., Class A

    342,500       1,595,281  

CMOC Group Ltd., Class A

    1,619,200       1,294,209  

Ganfeng Lithium Co. Ltd., Class A

    156,670       2,073,544  

GEM Co. Ltd., Class A

    437,096       633,277  

Henan Shenhuo Coal & Power Co. Ltd., Class A

    186,600       398,087  

Hesteel Co. Ltd., Class A

    1,088,500       450,673  

Huaibei Mining Holdings Co. Ltd., Class A

    217,700       420,419  

Hunan Valin Steel Co. Ltd., Class A

    656,040       442,513  

Inner Mongolia BaoTou Steel Union Co. Ltd., Class A

    4,203,300       1,409,440  

Inner Mongolia ERDOS Resources Co. Ltd., Class A

    117,380       317,537  

Jiangxi Copper Co. Ltd., Class A

    187,000       468,091  

Maanshan Iron & Steel Co. Ltd., Class A

    559,800       260,086  

Pangang Group Vanadium Titanium & Resources Co. Ltd., Class A(a)

    778,300       854,894  

Shandong Gold Mining Co. Ltd., Class A

    311,428       844,068  

Shandong Nanshan Aluminum Co. Ltd., Class A

    1,058,600       549,972  

Shanxi Meijin Energy Co. Ltd., Class A

    404,700       682,884  

Shanxi Taigang Stainless Steel Co. Ltd., Class A

    529,100       388,709  

Shenghe Resources Holding Co. Ltd., Class A

    167,800       516,701  

 

16  

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


Schedule of Investments  (continued)

July 31, 2022

  

iShares® MSCI China A ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Metals & Mining (continued)

   

Sinomine Resource Group Co. Ltd., Class A

    44,780     $ 596,320  

Tianshan Aluminum Group Co. Ltd., Class A

    345,000       373,487  

Tibet Summit Resources Co. Ltd., Class A(a)

    94,200       401,596  

Tongling Nonferrous Metals Group Co. Ltd., Class A

    964,900       434,212  

Western Mining Co. Ltd., Class A

    217,700       363,972  

Western Superconducting Technologies Co. Ltd., Class A

    62,368       925,232  

Xiamen Tungsten Co. Ltd., Class A

    124,898       498,007  

Yintai Gold Co. Ltd., Class A

    218,520       351,640  

YongXing Special Materials Technology Co. Ltd., Class A

    31,100       660,579  

Youngy Co. Ltd., Class A(a)

    31,100       603,599  

Yunnan Aluminium Co. Ltd., Class A

    311,000       463,819  

Yunnan Tin Co. Ltd., Class A

    155,500       346,922  

Zhejiang Huayou Cobalt Co. Ltd., Class A

    161,512       2,018,731  

Zijin Mining Group Co. Ltd., Class A

    1,898,700       2,515,158  
   

 

 

 
        28,177,370  
Oil, Gas & Consumable Fuels — 2.6%            

China Petroleum & Chemical Corp., Class A

    3,051,443       1,862,497  

China Shenhua Energy Co. Ltd., Class A

    622,499       2,591,647  

COSCO SHIPPING Energy Transportation Co. Ltd., Class A(a)

    311,049       584,789  

Guanghui Energy Co. Ltd., Class A

    592,083       855,637  

Inner Mongolia Dian Tou Energy Corp. Ltd., Class A

    186,600       369,091  

Jizhong Energy Resources Co. Ltd., Class A

    342,100       341,036  

PetroChina Co. Ltd., Class A

    2,023,900       1,565,523  

Pingdingshan Tianan Coal Mining Co. Ltd., Class A

    217,700       385,652  

Shaanxi Coal Industry Co. Ltd., Class A

    903,501       2,557,381  

Shan Xi Hua Yang Group New Energy Co. Ltd., Class A

    217,700       688,330  

Shanxi Coking Coal Energy Group Co. Ltd., Class A

    388,860       675,214  

Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A

    280,300       571,888  

Yankuang Energy Group Co. Ltd., Class A

    248,800       1,351,268  
   

 

 

 
      14,399,953  
Paper & Forest Products — 0.2%            

Chengxin Lithium Group Co. Ltd., Class A

    93,300       785,563  

Shandong Sun Paper Industry JSC Ltd., Class A

    249,200       433,858  
   

 

 

 
      1,219,421  
Personal Products — 0.3%            

By-health Co. Ltd., Class A

    155,900       427,125  

Proya Cosmetics Co. Ltd., Class A

    16,940       442,479  

Yunnan Botanee Bio-Technology Group Co. Ltd., Class A

    31,100       895,060  
   

 

 

 
      1,764,664  
Pharmaceuticals — 3.2%            

Apeloa Pharmaceutical Co. Ltd., Class A

    93,700       267,857  

Asymchem Laboratories Tianjin Co. Ltd., Class A

    30,380       742,547  

Betta Pharmaceuticals Co. Ltd., Class A

    31,112       230,843  

CanSino Biologics Inc., Class A(a)

    10,138       242,976  

Changchun High & New Technology Industry Group Inc., Class A

    38,540       1,109,044  

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A

    93,300       501,200  

Dong-E-E-Jiao Co. Ltd., Class A

    62,200       330,122  

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A

    124,800       532,957  

Humanwell Healthcare Group Co. Ltd., Class A

    155,500       404,795  

Jiangsu Hengrui Medicine Co. Ltd., Class A

    592,142       3,099,466  

Joincare Pharmaceutical Group Industry Co. Ltd., Class A

    187,000       305,733  

Livzon Pharmaceutical Group Inc., Class A

    62,200       292,664  

Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd., Class A

    161,900       448,563  
Security   Shares     Value  

Pharmaceuticals (continued)

   

Shandong Buchang Pharmaceuticals Co. Ltd., Class A

    96,327     $ 270,515  

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A

    186,663       1,213,511  

Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A

    109,900       391,314  

Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A

    155,960       512,598  

Sichuan Kelun Pharmaceutical Co. Ltd., Class A

    124,800       407,355  

Yunnan Baiyao Group Co. Ltd., Class A

    155,560       1,271,955  

Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A

    62,299       2,732,512  

Zhejiang Huahai Pharmaceutical Co. Ltd., Class A

    125,204       378,959  

Zhejiang Jiuzhou Pharmaceutical Co. Ltd., Class A

    82,800       575,889  

Zhejiang NHU Co. Ltd., Class A

    269,868       824,462  

Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A

    62,200       421,191  
   

 

 

 
        17,509,028  
Real Estate Management & Development — 1.7%  

China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A

    715,300       1,452,434  

China Vanke Co. Ltd., Class A

    901,900       2,297,514  

Gemdale Corp., Class A

    404,718       702,718  

Jinke Properties Group Co. Ltd., Class A(a)

    500,500       194,385  

Poly Developments and Holdings Group Co. Ltd., Class A

    1,090,031       2,690,408  

Seazen Holdings Co. Ltd., Class A(a)

    217,766       675,340  

Shanghai Lingang Holdings Corp. Ltd., Class A

    186,600       337,129  

Shanghai Zhangjiang High-Tech Park Development Co. Ltd., Class A

    155,500       268,088  

Youngor Group Co. Ltd., Class A

    435,494       420,819  

Zhejiang China Commodities City Group Co. Ltd., Class A

    466,500       366,093  
   

 

 

 
      9,404,928  
Road & Rail — 0.7%            

Beijing-Shanghai High Speed Railway Co. Ltd., Class A

    3,797,894       2,615,829  

Daqin Railway Co. Ltd., Class A

    1,399,500       1,254,775  
   

 

 

 
      3,870,604  
Semiconductors & Semiconductor Equipment — 6.3%  

Advanced Micro-Fabrication Equipment Inc., Class A(a)

    62,364       1,124,545  

Amlogic Shanghai Co. Ltd., Class A(a)

    35,362       443,583  

China Resources Microelectronics Ltd., Class A

    99,421       747,539  

Flat Glass Group Co. Ltd., Class A(a)

    155,900       951,246  

GCL System Integration Technology Co. Ltd., Class A(a)

    530,700       347,828  

Gigadevice Semiconductor Beijing Inc., Class A

    62,757       1,104,017  

Hangzhou First Applied Material Co. Ltd., Class A

    131,350       1,361,399  

Hangzhou Lion Electronics Co. Ltd., Class A

    62,200       524,554  

Hangzhou Silan Microelectronics Co. Ltd., Class A

    124,400       769,074  

Ingenic Semiconductor Co. Ltd., Class A

    46,700       617,433  

JA Solar Technology Co. Ltd., Class A

    217,700       2,509,095  

JCET Group Co. Ltd., Class A

    156,700       586,673  

LONGi Green Energy Technology Co. Ltd., Class A

    699,046       6,391,396  

Montage Technology Co. Ltd., Class A

    124,516       1,057,505  

National Silicon Industry Group Co. Ltd., Class A(a)

    197,286       591,712  

NAURA Technology Group Co. Ltd., Class A

    47,900       1,805,930  

SG Micro Corp., Class A

    37,450       893,874  

Shenzhen SC New Energy Technology Corp., Class A

    31,100       615,142  

StarPower Semiconductor Ltd., Class A

    17,700       1,023,458  

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

    279,999       2,112,574  

Tianshui Huatian Technology Co. Ltd., Class A

    217,700       286,187  

TongFu Microelectronics Co. Ltd., Class A(a)

    95,300       233,405  

Trina Solar Co. Ltd., Class A

    198,643       2,450,565  

Unigroup Guoxin Microelectronics Co. Ltd., Class A(a)

    62,200       1,945,555  

Will Semiconductor Co. Ltd. Shanghai, Class A

    125,955       1,968,112  

Yangzhou Yangjie Electronic Technology Co. Ltd., Class A

    62,200       577,489  

 

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

  17


Schedule of Investments  (continued)

July 31, 2022

  

iShares® MSCI China A ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., Class A

    124,401     $ 1,349,960  
   

 

 

 
        34,389,850  
Software — 1.4%  

360 Security Technology Inc., Class A

    654,700       717,100  

Beijing Kingsoft Office Software Inc., Class A

    40,944       1,063,323  

Beijing Shiji Information Technology Co. Ltd., Class A

    174,112       366,978  

Hundsun Technologies Inc., Class A

    125,602       791,177  

Iflytek Co. Ltd., Class A

    217,750       1,358,480  

NavInfo Co. Ltd., Class A

    217,700       451,111  

Sangfor Technologies Inc., Class A

    41,400       591,962  

Shanghai Baosight Software Co. Ltd., Class A

    123,091       734,195  

Thunder Software Technology Co. Ltd., Class A

    42,500       897,754  

Yonyou Network Technology Co. Ltd., Class A

    311,849       965,569  
   

 

 

 
      7,937,649  
Specialty Retail — 1.1%  

China Tourism Group Duty Free Corp. Ltd., Class A

    186,641       5,817,472  

Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A

    342,406       423,654  
   

 

 

 
      6,241,126  
Technology Hardware, Storage & Peripherals — 0.5%  

China Greatwall Technology Group Co. Ltd., Class A

    280,400       402,078  

GRG Banking Equipment Co. Ltd., Class A

    186,600       254,394  

Inspur Electronic Information Industry Co. Ltd., Class A

    126,560       455,899  

Ninestar Corp., Class A

    124,410       926,072  

Shenzhen Transsion Holding Co. Ltd., Class A

    62,295       655,616  
   

 

 

 
      2,694,059  
Textiles, Apparel & Luxury Goods — 0.0%  

Zhejiang Semir Garment Co. Ltd., Class A

    252,100       199,314  
   

 

 

 
Trading Companies & Distributors — 0.4%            

Beijing United Information Technology Co. Ltd., Class A

    48,955       666,488  
Security   Shares     Value  
Trading Companies & Distributors (continued)  

China Meheco Co. Ltd., Class A

    130,520     $ 280,511  

COSCO SHIPPING Development Co. Ltd., Class A

    933,800       389,445  

Sichuan New Energy Power Co. Ltd., Class A(a)

    122,900       427,663  

Xiamen C & D Inc., Class A

    248,800       414,066  
   

 

 

 
      2,178,173  
Transportation Infrastructure — 0.3%  

Liaoning Port Co Ltd., Class A

    1,523,900       381,772  

Shanghai International Airport Co. Ltd., Class A(a)

    93,322       713,708  

Shanghai International Port Group Co. Ltd., Class A

    872,400       709,119  
   

 

 

 
      1,804,599  
Wireless Telecommunication Services — 0.3%  

China United Network Communications Ltd., Class A

    3,073,800       1,567,321  
   

 

 

 

Total Common Stocks — 99.8%
(Cost: $432,965,208)

        549,402,484  
   

 

 

 
Rights            
Pharmaceuticals — 0.0%            

Kangmei Pharmaceutical Co. Ltd., Class A, (Expires 12/31/49)(a)

    30,064        
   

 

 

 

Total Rights — 0.0%
(Cost: $0)

 

     
   

 

 

 

Total Investments in Securities — 99.8%
(Cost: $432,965,208)

 

    549,402,484  

Other Assets Less Liabilities — 0.2%

 

    902,762  
   

 

 

 

Net Assets — 100.0%

 

  $ 550,305,246  
   

 

 

 

 

(a) 

Non-income producing security.

 

 

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

           

FTSE China A50

     26        08/30/22      $ 356      $ (8,123
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

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

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 8,123      $      $      $      $ 8,123  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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).

 

 

 

18  

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


Schedule of Investments  (continued)

July 31, 2022

   iShares® MSCI China A ETF

 

Derivative Financial Instruments Categorized by Risk Exposure (continued)

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

   $      $      $ (180,659    $      $      $      $ (180,659
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 59,587      $      $      $      $ 59,587  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 660,478      

 

 

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

   $ 6,515,771        $ 542,886,713        $        $ 549,402,484  

Rights

                                 
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 6,515,771        $ 542,886,713        $        $ 549,402,484  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $        $ (8,123      $        $ (8,123
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  19


 

Statements of Assets and Liabilities

July 31, 2022

 

   

iShares

China Large-Cap

ETF

   

iShares

MSCI China

A ETF

 

 

 

ASSETS

   

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

  $ 5,196,428,467     $ 549,402,484  

Investments, at value — affiliated(c)

    56,387,119        

Cash

    6,504       119,855  

Foreign currency, at value(d)

    46,247,591       867,825  

Cash pledged for futures contracts

    14,782,000       29,000  

Receivables:

   

Securities lending income — affiliated

    42,100        

Dividends — unaffiliated

    53,331,506       6,547  

Dividends — affiliated

    2,982        
 

 

 

   

 

 

 

Total assets

    5,367,228,269       550,425,711  
 

 

 

   

 

 

 

LIABILITIES

   

Collateral on securities loaned, at value

    53,359,515        

Payables:

   

Investments purchased

    13,037,692        

Variation margin on futures contracts

    3,600,212       4,500  

Investment advisory fees

    3,536,231       115,965  
 

 

 

   

 

 

 

Total liabilities

    73,533,650       120,465  
 

 

 

   

 

 

 

NET ASSETS

  $ 5,293,694,619     $ 550,305,246  
 

 

 

   

 

 

 

NET ASSETS CONSIST OF

   

Paid-in capital

  $ 9,533,354,075     $ 554,306,725  

Accumulated loss

    (4,239,659,456     (4,001,479
 

 

 

   

 

 

 

NET ASSETS

  $ 5,293,694,619     $ 550,305,246  
 

 

 

   

 

 

 

NET ASSET VALUE

   

Shares outstanding

    174,300,000       15,550,000  
 

 

 

   

 

 

 

Net asset value

  $ 30.37     $ 35.39  
 

 

 

   

 

 

 

Shares authorized

    Unlimited       Unlimited  
 

 

 

   

 

 

 

Par value

    None       None  
 

 

 

   

 

 

 

(a) Investments, at cost — unaffiliated

  $ 6,291,316,208     $ 432,965,208  

(b) Securities loaned, at value

  $ 50,943,271     $  

(c)  Investments, at cost — affiliated

  $ 56,385,784     $  

(d) Foreign currency, at cost

  $ 46,248,739     $ 866,126  

See notes to financial statements.

 

 

20  

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


 

Statements of Operations

Year Ended July 31, 2022

 

   

iShares
China Large-Cap

ETF

   

iShares

MSCI China

A ETF

 

 

 

INVESTMENT INCOME

   

Dividends — unaffiliated

  $ 163,107,166     $ 11,295,344  

Dividends — affiliated

    14,876        

Interest — unaffiliated

    11,023       358  

Securities lending income — affiliated — net

    362,637        

Foreign taxes withheld

    (13,591,804     (1,133,329
 

 

 

   

 

 

 

Total investment income

    149,903,898       10,162,373  
 

 

 

   

 

 

 

EXPENSES

   

Investment advisory fees

    38,759,462       4,374,669  

Commitment fees

          8,570  

Professional fees

    217       217  
 

 

 

   

 

 

 

Total expenses

    38,759,679       4,383,456  

Less:

   

Investment advisory fees waived

          (2,633,588
 

 

 

   

 

 

 

Total expenses after fees waived

    38,759,679       1,749,868  
 

 

 

   

 

 

 

Net investment income

    111,144,219       8,412,505  
 

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

   

Net realized gain (loss) from:

   

Investments — unaffiliated

    (693,885,294     (100,068,113

Investments — affiliated

    (106      

In-kind redemptions — unaffiliated(a)

    3,989,018        

Futures contracts

    (6,121,002     (180,659

Foreign currency transactions

    (89,831     55,643  
 

 

 

   

 

 

 
    (696,107,215     (100,193,129
 

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

   

Investments — unaffiliated

    (869,493,954     (67,358,377

Investments — affiliated

    (14,220      

Futures contracts

    (6,343,835     59,587  

Foreign currency translations

    (9,375     (2,069
 

 

 

   

 

 

 
    (875,861,384     (67,300,859
 

 

 

   

 

 

 

Net realized and unrealized loss

    (1,571,968,599     (167,493,988
 

 

 

   

 

 

 

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ (1,460,824,380   $ (159,081,483
 

 

 

   

 

 

 

 

(a)

See Note 2 of the Notes to Financial Statements.

See notes to financial statements.

 

 

F I N A N C I A L    S T A T E M E N T S

  21


 

Statements of Changes in Net Assets

 

    iShares
China Large-Cap ETF
           iShares
MSCI China A ETF
 
                    
   

Year Ended

07/31/22

 

 

      

Year Ended

07/31/21

 

 

      
Year Ended
07/31/22
 
 
      
Year Ended
07/31/21
 
 

 

 

INCREASE (DECREASE) IN NET ASSETS

                

OPERATIONS

                

Net investment income

  $ 111,144,219        $ 77,403,606        $ 8,412,505        $ 7,615,518  

Net realized loss

    (696,107,215        (291,904,538        (100,193,129        (11,951,056

Net change in unrealized appreciation (depreciation)

    (875,861,384        46,397,705          (67,300,859        72,482,786  
 

 

 

      

 

 

      

 

 

      

 

 

 

Net increase (decrease) in net assets resulting from operations

    (1,460,824,380        (168,103,227        (159,081,483        68,147,248  
 

 

 

      

 

 

      

 

 

      

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

                

Decrease in net assets resulting from distributions to shareholders

    (82,196,257        (75,177,990        (8,184,031        (6,046,186
 

 

 

      

 

 

      

 

 

      

 

 

 

CAPITAL SHARE TRANSACTIONS

                

Net increase in net assets derived from capital share transactions

    2,024,227,917          1,626,058,494          90,044,292          81,420,345  
 

 

 

      

 

 

      

 

 

      

 

 

 

NET ASSETS

                

Total increase (decrease) in net assets

    481,207,280          1,382,777,277          (77,221,222        143,521,407  

Beginning of year

    4,812,487,339          3,429,710,062          627,526,468          484,005,061  
 

 

 

      

 

 

      

 

 

      

 

 

 

End of year

  $ 5,293,694,619        $ 4,812,487,339        $ 550,305,246        $ 627,526,468  
 

 

 

      

 

 

      

 

 

      

 

 

 

 

(a)

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

See notes to financial statements.

 

 

22  

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Financial Highlights

(For a share outstanding throughout each period)

 

    iShares China Large-Cap ETF  
 

 

 

 
    Year Ended
07/31/22
     Year Ended
07/31/21
     Year Ended
07/31/20
     Year Ended
07/31/19
     Year Ended
07/31/18
 

 

 

Net asset value, beginning of year

  $ 40.36      $ 41.57      $ 41.63      $ 43.14      $ 42.57  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.75        0.88        0.89        1.07        1.27  

Net realized and unrealized gain (loss)(b)

    (10.16      (1.26      0.17        (1.73      0.80  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    (9.41      (0.38      1.06        (0.66      2.07  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions from net investment income(c)

    (0.58      (0.83      (1.12      (0.85      (1.50
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 30.37      $ 40.36      $ 41.57      $ 41.63      $ 43.14  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return(d)

             

Based on net asset value

    (23.54 )%       (1.13 )%       2.59      (1.44 )%       4.73
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets(e)

             

Total expenses

    0.74      0.74      0.74      0.74      0.74
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    2.12      1.90      2.18      2.55      2.75
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

             

Net assets, end of year (000)

  $ 5,293,695      $ 4,812,487      $ 3,429,710      $ 5,039,411      $ 4,096,070  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(f)

    29      62      18      14      18
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average shares outstanding.

 

(b) 

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

 

(c) 

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

 

(d) 

Where applicable, assumes the reinvestment of distributions.

 

(e) 

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

 

(f) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  23


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI China A ETF  
 

 

 

 
   
Year Ended
07/31/22
 
 
    
Year Ended
07/31/21
 
 
   
Year Ended
07/31/20
 
 
   
Year Ended
07/31/19
 
 
   
Year Ended
07/31/18
 
 

 

 

Net asset value, beginning of year

  $ 41.70      $ 36.39     $ 28.68     $ 27.06     $ 29.19  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    0.46        0.52       0.59       0.84       0.56  

Net realized and unrealized gain (loss)(b)

    (6.29      5.22       7.47       1.67       (2.38
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    (5.83      5.74       8.06       2.51       (1.82
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

          

From net investment income

    (0.48      (0.43     (0.35     (0.19     (0.31

From net realized gain

                       (0.70      
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (0.48      (0.43     (0.35     (0.89     (0.31
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of year

  $ 35.39      $ 41.70     $ 36.39     $ 28.68     $ 27.06  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

          

Based on net asset value

    (14.18 )%       15.79     28.40     9.97     (6.33 )%(e)  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(f)

          

Total expenses

    0.60      0.60     0.63     0.65     0.65
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

    0.24      0.24     0.24     0.24     0.55
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    1.15      1.24     1.98     3.10     1.81
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

          

Net assets, end of year (000)

  $ 550,305      $ 627,526     $ 484,005     $ 141,989     $ 13,529  
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(g)

    64      38 %(h)       31 %(h)       44 %(h)       154
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

(a) Based on average shares outstanding.

 

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

 

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

 

(d) Where applicable, assumes the reinvestment of distributions.

 

(e) Includes payment received from an affiliate, which impacted the Fund’s total return. Excluding the payment from an affiliate, the Fund’s total return would have been -6.54%.

 

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

 

(g) Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”).

  

  

   

  

  

   

  

(h) Portfolio turnover rate excluding cash creations was as follows:

           24     28     22      
 

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

24  

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Notes to Financial Statements

 

1.

ORGANIZATION

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

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

 

   
iShares ETF    Diversification
Classification
 

China Large-Cap

     Non-diversified  

MSCI China A

     Diversified  

 

2.

SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis.

Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of July 31, 2022, if any, are disclosed in the Statements of Assets and Liabilities.

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

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

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

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

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

  25


Notes to Financial Statements  (continued)

 

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

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

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

 

   

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

 

   

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

 

   

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

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

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

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

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

 

   

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

 

   

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

 

   

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

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

 

 

26  

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Notes to Financial Statements  (continued)

 

4.