February
28,
2023
iShares
Trust
iShares
ESG
Advanced
MSCI
USA
ETF
|
USXF
|
NASDAQ
2023
Semi-Annual
Report
(Unaudited)
Dear
Shareholder,
Significant
economic
headwinds
emerged
during
the
12-month
reporting
period
ended
February
28,
2023,
as
investors
navigated
changing
economic
conditions
and
volatile
markets.
The
U.S.
economy
shrank
in
the
first
half
of
2022
before
returning
to
modest
growth
in
the
second
half
of
the
year,
marking
a
shift
to
a
more
challenging
post-reopening
economic
environment.
Changes
in
consumer
spending
patterns
and
a
tight
labor
market
led
to
elevated
inflation,
which
reached
a
40-year
high
before
beginning
to
moderate.
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
during
the
first
half
of
the
reporting
period.
Both
large-
and
small-capitalization
U.S.
stocks
fell,
although
equities
began
to
recover
in
the
second
half
of
the
period
as
inflation
eased
and
economic
growth
resumed.
Emerging
market
stocks
and
international
equities
from
developed
markets
declined
overall,
pressured
by
rising
interest
rates
and
a
strong
U.S.
dollar.
The
10-year
U.S.
Treasury
yield
rose
notably
during
the
reporting
period,
driving
its
price
down,
as
investors
reacted
to
fluctuating
inflation
data
and
attempted
to
anticipate
its
impact
on
future
interest
rate
changes.
The
corporate
bond
market
also
faced
inflationary
headwinds,
and
higher
interest
rates
led
to
rising
borrowing
costs
for
corporate
issuers.
The
U.S.
Federal
Reserve
(the
“Fed”),
acknowledging
that
inflation
has
been
more
persistent
than
expected,
raised
interest
rates
eight
times.
Furthermore,
the
Fed
wound
down
its
bond-buying
programs
and
accelerated
the
reduction
of
its
balance
sheet.
Restricted
labor
supply
kept
inflation
elevated
even
as
other
inflation
drivers,
such
as
goods
prices
and
energy
costs,
moderated.
While
economic
growth
slowed
in
the
last
year,
we
believe
that
taming
inflation
requires
a
more
substantial
decline
that
lowers
demand
to
a
level
more
in
line
with
the
economy’s
productive
capacity.
Although
the
Fed
has
decelerated
the
pace
of
interest
rate
hikes,
it
still
seems
determined
to
get
inflation
back
to
target.
With
this
in
mind,
we
believe
the
possibility
of
a
U.S.
recession
in
the
near-term
is
high,
but
the
dimming
economic
outlook
has
not
yet
been
fully
reflected
in
current
market
prices.
We
believe
investors
should
expect
a
period
of
higher
volatility
as
markets
adjust
to
the
new
economic
reality
and
policymakers
attempt
to
adapt
to
rapidly
changing
conditions.
Turmoil
in
the
banking
sector
shortly
following
the
end
of
the
period
highlighted
the
potential
for
the
knock-on
effects
of
substantially
higher
interest
rates
to
disrupt
markets
with
little
warning.
While
we
favor
an
overweight
to
equities
in
the
long
term,
several
factors
lead
us
to
take
an
underweight
stance
on
equities
overall
in
the
near
term.
Expectations
for
corporate
earnings
remain
elevated,
which
seems
inconsistent
with
the
possibility
of
a
recession
in
a
business
environment
characterized
by
higher
costs
and
reduced
pricing
power.
Nevertheless,
we
are
overweight
on
emerging
market
stocks
as
a
weaker
U.S.
dollar
provides
a
supportive
backdrop.
We
also
see
long-term
opportunities
in
credit,
where
valuations
are
appealing
and
higher
yields
provide
attractive
income,
although
we
are
neutral
on
credit
in
the
near
term,
as
we
believe
that
troubles
in
the
banking
sector
will
likely
lead
to
reduced
lending.
However,
we
believe
there
are
still
some
strong
opportunities
for
a
six-
to
twelve-month
horizon,
particularly
short-term
U.S.
Treasuries,
global
inflation-linked
bonds,
and
emerging
market
bonds
denominated
in
local
currency.
Overall,
our
view
is
that
investors
need
to
think
globally,
position
themselves
to
be
prepared
for
a
decarbonizing
economy,
and
be
nimble
as
market
conditions
change.
We
encourage
you
to
talk
with
your
financial
advisor
and
visit
iShares.com
for
further
insight
about
investing
in
today’s
markets.
Sincerely,
Rob
Kapito
President,
BlackRock,
Inc.
The
Markets
in
Review
Rob
Kapito
President,
BlackRock,
Inc.
Total
Returns
as
of
February
28,
2023
Past
performance
is
not
an
indication
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
1.26%
(7.69)%
U.S.
small
cap
equities
(Russell
2000
®
Index)
3.63
(6.02)
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
12.58
(3.14)
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
(2.29)
(15.28)
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
1.74
2.11
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
(4.81)
(14.06)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
(2.13)
(9.72)
Tax-exempt
municipal
bonds
(Bloomberg
Municipal
Bond
Index)
0.66
(5.10)
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
2.52
(5.45)
2
This
Page
is
not
Part
of
Your
Fund
Report
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Semi-Annual
Report:
Fund
Summary
........................................................................................................
4
About
Fund
Performance
..................................................................................................
5
Disclosure
of Expenses
...................................................................................................
5
Schedule
of
Investments
..................................................................................................
6
Financial
Statements:
Statement
of
Assets
and
Liabilities
..........................................................................................
12
Statement
of
Operations
................................................................................................
13
Statements
of
Changes
in
Net
Assets
........................................................................................
14
Financial
Highlights
.....................................................................................................
15
Notes
to
Financial
Statements
...............................................................................................
16
Statement
Regarding
Liquidity
Risk
Management
Program
.............................................................................
22
General
Information
.....................................................................................................
23
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
24
iShares
®
ESG
Advanced
MSCI
USA
ETF
4
2023
iShares
Semi-Annual
Report
to
Shareholders
Fund
Summary
as
of
February
28,
2023
Investment
Objective
The
iShares
ESG
Advanced
MSCI
USA
ETF
(the
“Fund”)
seeks
to
track
the
investment
results
of
an
index
composed
of
large-
and
mid-capitalization
U.S.
companies
that
have
a
favorable
environmental,
social
and
governance
rating
while
applying
extensive
screens
for
company
involvement
in
controversial
activities,
as
represented
by
the
MSCI
USA
Choice
ESG
Screened
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
The
inception
date
of
the
Fund
was
June
16,
2020.
The
first
day
of
secondary
market
trading
was
June
18,
2020.
The
performance
for
the
Index
shown
is
calculated
with
gross
dividends
reinvested
since
inception.
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
Portfolio
Information
Average
Annual
Total
Returns
Cumulative
Total
Returns
6-Month
Total
Returns
1
Year
Since
Inception
1
Year
Since
Inception
Fund
NAV
...............................................
4.73
%
(6.83
)
%
10.20
%
(6.83
)
%
30.06
%
Fund
Market
.............................................
4.89
(7.09
)
10.14
%
(7.09
)
29.88
Index
..................................................
4.79
(6.74
)
10.36
(6.74
)
30.56
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(09/01/22)
Ending
Account
Value
(02/28/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(09/01/22)
Ending
Account
Value
(02/28/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00
$
1,047.30
$
0.51
$
1,000.00
$
1,024.30
$
0.50
0.10
%
(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.
SECTOR
ALLOCATION
Sector
Percent
of
Total
Investments
(a)
Information
Technology
............................
40.6‌
%
Health
Care
...................................
12.6‌
Financials
.....................................
12.1‌
Industrials
.....................................
9.0‌
Consumer
Discretionary
...........................
8.7‌
Consumer
Staples
...............................
5.4‌
Real
Estate
....................................
4.9‌
Materials
.....................................
3.7‌
Communication
Services
...........................
2.8‌
Utilities
.......................................
0.2‌
a
a
(a)
Excludes
money
market
funds.
TEN
LARGEST
HOLDINGS
Security
Percent
of
Total
Investments
(a)
Microsoft
Corp.
.................................
10.8‌
%
NVIDIA
Corp.
..................................
3.5‌
Visa,
Inc.,
Class
A
...............................
2.2‌
Mastercard
,
Inc.,
Class
A
...........................
1.9‌
Home
Depot,
Inc.
(The)
...........................
1.8‌
Eli
Lilly
&
Co.
..................................
1.5‌
Broadcom,
Inc.
.................................
1.5‌
Coca-Cola
Co.
(The)
.............................
1.5‌
PepsiCo,
Inc.
..................................
1.5‌
Cisco
Systems,
Inc.
..............................
1.2‌
aaa
aa
About
Fund
Performance
5
About
Fund
Performance/Disclosure
of
Expenses
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
the
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
the
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
example
shown
(which
is
based
on
a
hypothetical
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
through
the
end
of
the
period)
is
intended
to
assist
shareholders
both
in
calculating
expenses
based
on
an
investment
in
the
Fund
and
in
comparing
these
expenses
with
similar
costs
of
investing
in
other
funds.
The
expense
example
provides
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
example
also
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
a
fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses.
In
order
to
assist
shareholders
in
comparing
the
ongoing
expenses
of
investing
in the
Fund
and
other
funds,
compare
the
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds.
The
expenses
shown
in
the
expense
example
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
example
is
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.
Schedule
of
Investments
(unaudited)
February
28,
2023
iShares
®
ESG
Advanced
MSCI
USA
ETF
(Percentages
shown
are
based
on
Net
Assets)
6
2023
iShares
Semi-Annual
Report
to
Shareholders
Security
Shares
Value
a
Common
Stocks
Aerospace
&
Defense
 — 0.3%
Axon
Enterprise,
Inc.
(a)
.....................
2,631
$
527,016
HEICO
Corp.
...........................
1,698
281,138
HEICO
Corp.,
Class
A
......................
2,861
372,359
Howmet
Aerospace,
Inc.
....................
14,502
611,694
1,792,207
a
Air
Freight
&
Logistics
 — 0.2%
CH
Robinson
Worldwide,
Inc.
................
4,581
457,917
Expeditors
International
of
Washington,
Inc.
.......
6,193
647,540
1,105,457
a
Auto
Components
 — 0.3%
Aptiv
PLC
(a)
.............................
10,563
1,228,266
BorgWarner,
Inc.
.........................
9,187
461,922
Lear
Corp.
.............................
2,293
320,217
2,010,405
a
Automobiles
 — 0.1%
Lucid
Group,
Inc.
(a)(b)
.......................
16,193
147,842
Rivian
Automotive,
Inc.,
Class
A
(a)(b)
.............
12,548
242,176
390,018
a
Banks
 — 2.0%
Citizens
Financial
Group,
Inc.
................
19,213
802,335
First
Horizon
Corp.
........................
20,816
515,612
First
Republic
Bank
.......................
7,141
878,414
Huntington
Bancshares,
Inc.
.................
56,206
861,076
KeyCorp
...............................
36,104
660,342
PNC
Financial
Services
Group,
Inc.
(The)
........
15,697
2,478,870
Regions
Financial
Corp.
....................
36,243
845,187
SVB
Financial
Group
(a)
.....................
2,302
663,229
Truist
Financial
Corp.
......................
51,637
2,424,357
U.S.
Bancorp
...........................
54,868
2,618,850
Webster
Financial
Corp.
....................
6,821
362,332
13,110,604
a
Beverages
 — 3.1%
Coca-Cola
Co.
(The)
......................
159,891
9,515,113
Keurig
Dr
Pepper,
Inc.
.....................
30,219
1,044,067
PepsiCo,
Inc.
...........................
53,619
9,304,505
19,863,685
a
Biotechnology
 — 3.0%
Alnylam
Pharmaceuticals,
Inc.
(a)
...............
4,788
916,663
Amgen,
Inc.
............................
20,763
4,809,957
Biogen,
Inc.