LOGO

  OCTOBER 31, 2021

 

  

2021 Annual Report

 

 

iShares, Inc.

 

·  

iShares International High Yield Bond ETF | HYXU | Cboe BZX

 

·  

iShares J.P. Morgan EM Corporate Bond ETF | CEMB | Cboe BZX

 

·  

iShares J.P. Morgan EM High Yield Bond ETF | EMHY | Cboe BZX

 

·  

iShares J.P. Morgan EM Local Currency Bond ETF | LEMB | NYSE Arca

 

·  

iShares US & Intl High Yield Corp Bond ETF | GHYG | Cboe BZX


The Markets in Review

Dear Shareholder,

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

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

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

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

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

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

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

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of October 31, 2021
    

6-Month

 

12-Month

   

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

  10.91%   42.91%
   

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

  1.85   50.80
   

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

  4.14   34.18
   

Emerging market equities
(MSCI Emerging Markets Index)

  (4.87)   16.96
   

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

  0.01   0.06
   

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

  1.59   (4.77)
   

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

  1.06   (0.48)
   

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

  0.33   2.76
   

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

  2.36   10.53
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

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Table of Contents

 

      Page  

The Markets in Review

     2  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     15  

Shareholder Expenses

     15  

Schedules of Investments

     16  

Financial Statements

  

Statements of Assets and Liabilities

     73  

Statements of Operations

     75  

Statements of Changes in Net Assets

     77  

Financial Highlights

     80  

Notes to Financial Statements

     85  

Report of Independent Registered Public Accounting Firm

     95  

Important Tax Information (Unaudited)

     96  

Board Review and Approval of Investment Advisory Contract

     97  

Supplemental Information

     102  

Director and Officer Information

     104  

General Information

     106  

Glossary of Terms Used in this Report

     107  

 

 

    


Market Overview

 

iShares, Inc.

Global Bond Market Overview

Global investment-grade bonds declined slightly for the 12 months ended October 31, 2021 (“reporting period”). The Bloomberg Global Aggregate Index, a broad measure of global bond market performance, returned -1.24% in U.S. dollar terms for the reporting period.

While the global economy continued its rebound from the impact of the coronavirus pandemic, the recovery was uneven and beset with challenges. The creation of multiple COVID-19 vaccines and the implementation of vaccination programs globally helped to mitigate the pandemic’s impact and led to the lifting of restrictions in many countries. However, while nearly half of the world’s population received at least one vaccine dose by the end of the reporting period, vaccine distribution varied substantially. The spread of the highly contagious Delta variant led to swift case increases in some areas, causing renewed restrictions and constraining global growth.

Bond performance differed by type, but in general corporate bonds gained more than government bonds, and lower-rated bonds gained more than higher-rated bonds. The improving economic environment and vaccination progress led to investor optimism about the lower-rated segments of the market. However, a notable rise in global inflation pressured bonds, which typically lose value in an inflationary environment.

Bonds in the U.S. established these global patterns, as corporate bonds, particularly high-yield bonds, posted solid returns, backed by strong investor demand for yield, while U.S. Treasuries declined, largely due to rising inflation. Bond issuance was high by historical standards, as corporations were eager to take advantage of low borrowing costs, while the federal government issued debt to finance stimulus and other spending. The U.S. Federal Reserve Bank (“Fed”) continued to keep short-term interest rates at near-zero levels and maintained a significant bond-buying program for U.S. Treasuries and mortgage-backed securities, although it discontinued its corporate bond purchase program. The Fed indicated that it would begin slowing its bond buying activities late in 2021, and their forecast showed that an interest rate increase is possible in 2022. However, the improving employment environment and a sharp rise in inflation led investors to anticipate a more accelerated tightening of monetary policy. Trading activity showed that investors view multiple interest rate increases as probable in 2022.

European bond prices declined overall, as supply chain frictions and increasing commodities prices, particularly for energy commodities, led to the highest Eurozone inflation rate in 13 years. In response, the European Central Bank (“ECB”) slowed the pace of its bond purchases, while keeping its benchmark interest rate at 0%. The E.U. issued 20 billion in common European bonds to partially finance its pandemic recovery fund, attracting high investor interest. Bond prices also declined in the U.K. amid a relatively early vaccination push and robust economic recovery. While the Bank of England kept interest rates at record lows, it signaled that it would soon raise interest rates to counter growing inflation.

In contrast, bonds in the Asia/Pacific region posted a solid gain overall, although gains were mostly concentrated in corporate bonds, particularly the lower-rated segment of the market. Japanese government bonds were nearly flat, as inflation concerns were much less prominent in Japan compared to other regions, and the Bank of Japan showed no signs of tightening monetary policy. Emerging market bonds also advanced, benefiting from higher yields compared with developed economies, as investors sought income in a low interest rate environment. However, concerns late in the reporting period surrounding China’s highly indebted property companies weighed on returns of some emerging market bonds.

 

 

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Fund Summary  as of October 31, 2021    iShares® International High Yield Bond ETF

 

Investment Objective

The iShares International High Yield Bond ETF (the “Fund”) seeks to track the investment results of an index composed of euro, British pound sterling and Canadian dollar-denominated, high yield corporate bonds, as represented by the Markit iBoxx® Global Developed Markets ex-US High Yield 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

    6.90      4.72      3.69       6.90      25.94      41.53

Fund Market

    6.91        4.67        3.68         6.91        25.62        41.36  

Index

    7.34        5.12        3.93               7.34        28.35        44.62  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

 

LOGO

The inception date of the Fund was 4/3/12. The first day of secondary market trading was 4/3/12.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 15 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
Beginning
Account Value
(05/01/21)
       Ending
Account Value
(10/31/21)
       Expenses    
Paid During    
the Period  (a)
           Beginning
Account Value
(05/01/21)
       Ending
Account Value
(10/31/21)
       Expenses    
Paid During    
the Period  (a)
       Annualized
Expense
Ratio
 
  $ 1,000.00          $ 967.30          $ 1.98                   $ 1,000.00          $ 1,023.20          $ 2.04              0.40

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 15 for more information.

 

 

 

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  5


Fund Summary  as of October 31, 2021    (continued)    iShares® International High Yield Bond ETF

 

Portfolio Management Commentary

International high-yield bonds advanced strongly during the reporting period, supported by accommodative monetary policies from many central banks. Investor demand for higher yielding debt was strong despite investment grade corporate yields (which move inversely to prices) declining to historically low levels. Toward the end of the reporting period, concerns about rising inflation and investors’ anticipation of tightening monetary policies eroded part of the Index’s advance.

From a country perspective, euro-denominated, high-yield corporate bonds contributed the most to the Index’s return. The ECB implemented a program purchasing higher quality corporate debt, leading investors to lower quality bonds, driving down yields, which in some cases were negative. In France, despite concerns about the effects of the Delta variant of COVID-19, the country’s economy grew robustly, as widespread COVID-19 vaccination led to rising consumer spending. High yield corporate bonds in the U.K. also benefited from a successful COVID-19 vaccine rollout, as well as rising demand as the economy reopened. Amid the economic recovery, companies that issued high yield bonds benefited from investor optimism that reduced restrictions, especially for travel, would help restore revenues.

In the U.S., corporate bond yields declined to record lows due to strong corporate balance sheets combined with robust investor demand. Bond issuance reached historically high levels as companies sought to capitalize on rising investor demand to shore up their balance sheets.

From a bond quality perspective, higher rated bonds contributed more to the Index’s performance than lower rated bonds. Bonds rated Ba and B, which represented approximately 52% and 22% of the Index on average, respectively, during the reporting period, contributed the most to the Index’s return.

Portfolio Information

 

ALLOCATION BY CREDIT QUALITY

 

Moody’s Credit Rating*    
Percent of
Total Investments
 
(a) 

Baa

    5.0

Ba

    52.5  

B

    22.4  

Caa

    6.7  

Ba3u

    0.2  

Not Rated

    13.2  

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

Italy

    20.7

United States

    15.3  

France

    11.7  

United Kingdom

    11.1  

Germany

    10.0  

Spain

    7.1  

Luxembourg

    3.9  

Sweden

    3.4  

Netherlands

    2.8  

Canada

    2.3  
  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary  as of October 31, 2021    iShares® J.P. Morgan EM Corporate Bond ETF

 

Investment Objective

The iShares J.P. Morgan EM Corporate Bond ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated, emerging market corporate bonds, as represented by the J.P. Morgan CEMBI Broad Diversified Core 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

    3.88      4.57      4.44       3.88      25.02      51.37

Fund Market

    4.16        4.55        4.48         4.16        24.89        51.90  

Index

    4.64        5.20        5.06               4.64        28.86        60.15  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

 

LOGO

The inception date of the Fund was 4/17/12. The first day of secondary market trading was 4/19/12.

Index Performance through May 31, 2017 reflects the performance of the Morningstar® Emerging Markets Corporate Bond IndexSM. Index performance beginning on June 1, 2017 reflects the performance of the J.P. Morgan CEMBI Broad Diversified Core Index.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 15 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
  Beginning
  Account Value
  (05/01/21)
       Ending
Account Value
(10/31/21)
       Expenses    
Paid During    
the Period  (a)
           Beginning
Account Value
(05/01/21)
       Ending
Account Value
(10/31/21)
       Expenses    
Paid During    
the Period  (a)
       Annualized
Expense
Ratio
 
  $ 1,000.00        $ 1,007.60        $ 2.53                 $ 1,000.00        $ 1,022.70        $ 2.55              0.50

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 15 for more information.

 

 

 

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  7


Fund Summary  as of October 31, 2021    (continued)    iShares® J.P. Morgan EM Corporate Bond ETF

 

Portfolio Management Commentary

Emerging market high-yield bonds advanced for the reporting period, benefiting from investors’ search for yield in a low interest rate environment and rising energy prices. Brazilian bonds contributed the most to the Index’s return. High and rising inflation led to a series of interest rate increases by the Central Bank of Brazil, but annual inflation still registered 10.67% as of October 2021. Nevertheless, the bonds of a large, state-owned oil company posted gains, as rising oil and gas prices drove strong cash flows.

Turkish bonds also contributed to the Index’s return, as investors were enticed by extremely high yields despite the country’s high inflation rate and accommodative monetary policy. Bonds issued by Turkish banks generally benefited from the rebound in economic growth, as earnings rose substantially during the coronavirus pandemic due to a steep increase in lending within the country and continued demand for banking services.

Argentinian bonds were strong contributors to the Index’s return, as the country moved from a sharp economic contraction into expansion. In particular, bonds issued by a state-run oil company benefited from rising revenue due to higher oil and gas prices. Mexican corporate bonds also contributed to the Index’s return despite higher interest rates and rising inflation, as bonds issued by a wide variety of Mexican companies advanced due to investors’ increasing appetite for risk and the country’s economic rebound.

On the downside, Chinese bonds detracted from the Index’s performance, as investors became concerned about potential defaults on debt issued by two large, heavily indebted real estate developers. From a credit quality perspective, higher-yielding, lower-rated corporate bonds contributed the most to the Index’s return for the reporting period.

Portfolio Information

 

ALLOCATION BY CREDIT QUALITY

 

Moody’s Credit Rating*    
Percent of
Total Investments
 
(a) 

Aa

    5.2

A

    16.3  

Baa

    39.2  

Ba

    11.9  

B

    7.4  

Caa

    1.9  

C

    0.1  

Not Rated

    18.0  

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

China

    7.7

Brazil

    5.5  

Mexico

    5.2  

Hong Kong

    4.9  

India

    4.6  

United Arab Emirates

    4.5  

Russia

    4.5  

Saudi Arabia

    4.5  

South Korea

    4.2  

Singapore

    4.2  
  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary  as of October 31, 2021    iShares® J.P. Morgan EM High Yield Bond ETF

 

Investment Objective

The iShares J.P. Morgan EM High Yield Bond ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated, emerging market high yield sovereign and corporate bonds, as represented by the J.P. Morgan USD Emerging Markets High Yield Bond 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

    7.16      3.25      4.57       7.16      17.33      53.50

Fund Market

    6.90        3.25        4.58         6.90        17.31        53.64  

Index

    7.77        3.65        4.96               7.77        19.65        58.90  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

 

LOGO

The inception date of the Fund was 4/3/12. The first day of secondary market trading was 4/3/12.

Index performance through March 01, 2020 reflects the performance of the Morningstar Emerging Markets High Yield Bond IndexSM which terminated on April 01, 2020. Index performance beginning on March 02, 2020 reflects the performance of the J.P. Morgan USD Emerging Markets High Yield Bond Index.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 15 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
  Beginning
  Account Value
  (05/01/21)
       Ending
Account Value
(10/31/21)
       Expenses    
Paid During    
the Period  (a)
           Beginning
Account Value
(05/01/21)
       Ending
Account Value
(10/31/21)
       Expenses    
Paid During    
the Period  (a)
       Annualized
Expense
Ratio
 
  $ 1,000.00        $ 992.30        $ 2.51                 $ 1,000.00        $ 1,022.70        $ 2.55              0.50

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 15 for more information.

 

 

 

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  9


Fund Summary  as of October 31, 2021    (continued)    iShares® J.P. Morgan EM High Yield Bond ETF

 

Portfolio Management Commentary

Emerging market high-yield bonds posted solid gains for the reporting period, benefiting from investors’ search for yield in the low interest rate environment and rising energy prices. Despite higher interest rates and rising inflation, Mexican bonds were the largest contributors to the Index’s return, largely reflecting the performance of bonds issued by a large, state-owned oil company, which primarily benefited from rising oil and gas prices.

Turkish government bonds, which are rated below investment grade by Moody’s, also contributed to the Index’s performance, as investors were enticed by extremely high yields despite the country’s elevated inflation rate and uncertainty surrounding governance at the Central Bank of the Republic of Turkey. Annual inflation in Turkey rose to 19.89% in October 2021, but the country’s central bank lowered interest rates late in the reporting period, reflecting a divergence from conventional monetary policy. Despite high inflation, Turkey’s growth-oriented monetary policy drove the Turkish lira lower, but relatively high yields ultimately led to the positive performance of Turkish bonds.

Omani bonds were solid contributors to the Index’s return. The Omani government sought to lower its relatively large budget deficit by seeking spending cuts and tax increases amid stronger revenue from rising oil prices. The government also issued an additional $3.25 billion in debt, which was met with strong demand.

South African bonds also contributed to the Index’s return, as interest payments offset a modest increase in 10-year government bond yields (which move inversely to prices). Similarly, the South African rand benefited from record trade and rising demand for the country’s precious metals. On the downside, Chinese bonds detracted from the Index’s performance, as investors became concerned about potential defaults on debt issued by two large, heavily indebted real estate developers.

Portfolio Information

 

ALLOCATION BY CREDIT QUALITY

 

Moody’s Credit Rating*    
Percent of
Total Investments
 
(a) 

Baa

    12.5

Ba

    36.5  

B

    28.4  

Caa

    4.6  

Ca

    0.3  

C

    0.2  

Not Rated

    17.5  

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

Brazil

    15.3

Turkey

    10.6  

Mexico

    7.7  

Colombia

    6.7  

China

    3.9  

Oman

    3.7  

South Africa

    3.7  

Argentina

    3.5  

Egypt

    2.8  

Dominican Republic

    2.8  
  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary  as of October 31, 2021    iShares® J.P. Morgan EM Local Currency Bond ETF

 

Investment Objective

The iShares J.P. Morgan EM Local Currency Bond ETF (the “Fund”) seeks to track the investment results of an index composed of local currency denominated, emerging market sovereign bonds, as represented by the J.P. Morgan GBI-EM Global Diversified 15% Cap 4.5% Floor Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    0.12      (0.02 )%       (0.20 )%        0.12      (0.09 )%       (1.95 )% 

Fund Market

    0.46        0.09        (0.16       0.46        0.44        (1.58

Index

    0.48        0.56        0.29               0.48        2.82        2.92  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

 

LOGO

The inception date of the Fund was 10/18/11. The first day of secondary market trading was 10/20/11.

Index performance through May 31, 2017 reflects the performance of the Bloomberg Emerging Markets Broad Local Currency Bond Index. Index performance beginning on June 1, 2017 reflects the performance of the J.P. Morgan GBI-EM Global Diversified 15% Cap 4.5% Floor Index.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 15 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
  Beginning
  Account Value
  (05/01/21)
       Ending
Account Value
(10/31/21)
       Expenses    
Paid During    
the Period  (a)
           Beginning
Account Value
(05/01/21)
       Ending
Account Value
(10/31/21)
       Expenses    
Paid During    
the Period  (a)
       Annualized
Expense
Ratio
 
  $ 1,000.00        $ 964.60        $ 1.49                 $ 1,000.00        $ 1,023.70        $ 1.53              0.30

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 15 for more information.

 

 

 

U N D    U M M A R Y

  11


Fund Summary  as of October 31, 2021    (continued)    iShares® J.P. Morgan EM Local Currency Bond ETF

 

Portfolio Management Commentary

As represented by the Index, local currency emerging market bonds posted a modest return for the reporting period. Emerging market bonds generally offer higher yields relative to bonds issued by developed market countries. However, gains from interest payments were mostly offset by higher bond yields (which are inversely related to prices), which generally rose amid growth-oriented monetary policy and rising inflation in many countries. The U.S. dollar advanced relative to many local emerging market currencies, as rising U.S. Treasury yields weighed on emerging markets. From a credit quality perspective, higher-rated bonds detracted from the Index’s performance while lower-rated bonds contributed, reflecting demand for higher-yielding investments.

Chinese bonds were the largest contributors to the Index’s return, as interest rates fell and the Chinese yuan strengthened relative to the U.S. dollar. The Chinese economy was one of the first to emerge from the global recession brought on by pandemic-related restrictions, which led to record foreign direct investment and capital flows into Chinese bonds. The comparatively higher yields of Chinese bonds also drove demand from investors. South African bonds also contributed to the Index’s return, as relatively high yields offset a modest increase in interest rates. The South African rand advanced relative to the U.S. dollar amid record trade and rising demand for the country’s precious metals. Indonesian bonds also benefited from high yields and a rising currency.

On the downside, Chilean bonds were the largest detractors from the Index’s return. Rising inflation drove local interest rates higher, while the Chilean peso declined relative to the U.S. dollar. Peruvian bonds also detracted from the Index’s performance. The election of a new president, rising inflation, and the highest COVID-19 mortality rate in the world weighed on the Peruvian sol.

Portfolio Information

 

ALLOCATION BY CREDIT QUALITY

 

Moody’s Credit Rating*    
Percent of
Total Investments
 
(a) 

Aa

    0.7

A

    5.7  

Baa

    24.0  

Ba

    10.5  

Not Rated

    59.1  

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

China

    14.8

Peru

    4.7  

Malaysia

    4.6  

Philippines

    4.6  

Indonesia

    4.6  

Thailand

    4.6  

Russia

    4.6  

Dominican Republic

    4.5  

Poland

    4.5  

Hungary

    4.5  
  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a)

Excludes money market funds.

 

 

 

12  

2 0 2 1    H A R E S     N N U A L    E P O R T    T O    H A R E  H O L D E R S


Fund Summary  as of October 31, 2021    iShares® US & Intl High Yield Corp Bond ETF

 

Investment Objective

The iShares US & Intl High Yield Corp Bond ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar, euro, British pound sterling and Canadian dollar-denominated, high yield corporate bonds, as represented by the Markit iBoxx® Global Developed Markets High Yield 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

    8.56      5.36      4.98       8.56      29.86      59.31

Fund Market

    8.63        5.30        4.98         8.63        29.48        59.37  

Index

    8.72        5.46        5.13               8.72        30.46        61.42  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

 

LOGO

The inception date of the Fund was 4/3/12. The first day of secondary market trading was 4/5/12.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 15 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
  Beginning
  Account Value
  (05/01/21)
       Ending
Account Value
(10/31/21)
       Expenses    
Paid During    
the Period  (a)
           Beginning
Account Value
(05/01/21)
       Ending
Account Value
(10/31/21)
       Expenses    
Paid During    
the Period  (a)
       Annualized
Expense
Ratio
 
  $ 1,000.00        $ 1,001.80        $ 2.02                 $ 1,000.00        $ 1,023.20        $ 2.04              0.40

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 15 for more information.

 

 

 

U N D    U M M A R Y

  13


Fund Summary  as of October 31, 2021    (continued)    iShares® US & Intl High Yield Corp Bond ETF

 

Portfolio Management Commentary

High-yield corporate bonds advanced during the reporting period amid a strong economic recovery from the disruptions of the coronavirus pandemic and elevated investor demand for higher-yield investments in a low interest rate environment. Corporate earnings recovered as economies reopened, pushing the ratio of debt to profits back to pre-pandemic levels, driving investor optimism of credit quality. On the supply side, high-yield bond issuance reached historically high levels as companies sought to capitalize on rising investor demand and lower interest rates to refinance existing, higher-cost debt. Bonds issued to finance mergers and acquisitions further bolstered supply.

Corporate bonds issued by companies in the U.S. led contribution to the Index’s return despite increasing concerns regarding ongoing inflation. High-yield credit spreads, the difference in yield between high-yield bonds and U.S. Treasuries, declined during the reporting period. While the Fed maintained interest rates at historically low levels, high-yield corporate bond yields (which move inversely to prices) declined to record lows due to strong corporate balance sheets combined with strong investor demand.

High-yield corporate bonds in the U.K. were also contributors to the Index’s return. The U.K. benefited from a successful coronavirus vaccine rollout and rising consumer demand as the economy reopened. Canadian corporate bonds similarly showed strength amid economic recovery and strong investor demand, bolstered by strengthening of the Canadian dollar relative to the U.S. dollar. In France, despite concerns about the effects of a new variant of the coronavirus, the country’s economy grew robustly, supported by rising consumer spending. From a bond quality perspective, bonds rated Ba, which represented approximately 49% of the Index on average for the reporting period, contributed the most to the Index’s return, though all bond rating categories were contributors.

Portfolio Information

 

ALLOCATION BY CREDIT QUALITY

 

Moody’s Credit Rating*    
Percent of
Total Investments
 
(a) 

Baa

    3.8

Ba

    50.0  

B

    32.1  

Caa

    9.5  

Not Rated

    4.6  

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

United States

    65.0

Italy

    7.2  

United Kingdom

    5.0  

Germany

    4.0  

France

    3.9  

Canada

    2.9  

Spain

    1.8  

Netherlands

    1.6  

Luxembourg

    1.6  

Israel

    1.2  
  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

14  

2 0 2 1    H A R E S     N N U A L    E P O R T    T O    H A R E  H O L D E R S


About Fund Performance

 

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

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

Shareholder Expenses

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

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

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

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

 

 

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

  15


Schedule of Investments  

October 31, 2021

  

iShares® International High Yield Bond ETF

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

 

Corporate Bonds & Notes

 

Australia — 0.6%  

Commerzbank Ag Subordinated, 1.38%, 12/29/31 (Call 09/29/26)(a)(b)

    EUR       100     $ 112,459  

Energias De Portugal SA, 1.88%, 03/14/82
(Call 06/14/29)(a)(b)

    EUR       100       111,761  

Eurobank SA, 2.25%, 03/14/28
(Call 03/14/27)(a)(b)

    EUR       100             111,405  

Kaixo Bondco Telecom SA, 5.13%, 09/30/29
(Call 09/30/24)(a)

    EUR       100       114,412  
   

 

 

 
     

 

 

 

450,037

 

 

Austria — 0.2%  

ams AG, 6.00%, 07/31/25 (Call 07/31/22)(a)

    EUR       100       122,037  
   

 

 

 
Belgium — 0.2%  

Telenet Finance Luxembourg Notes Sarl, 3.50%, 03/01/28 (Call 12/01/22)(a)

    EUR       100       118,581  
   

 

 

 
Canada — 2.2%  

ADLER Group SA, 2.25%, 01/14/29
(Call 10/14/28)(a)

    EUR       200       197,589  

Air Canada, 4.63%, 08/15/29 (Call 02/15/26)(c)

    CAD       325       261,128  

Brookfield Property Finance ULC, 3.93%, 08/24/25 (Call 07/24/25)

    CAD       100       81,601  

Iccrea Banca SpA, 2.25%, 10/20/25
(Call 10/20/24)(a)(b)

    EUR       100       117,975  

Mattamy Group Corp., 4.63%, 03/01/28
(Call 03/01/23)(a)

    CAD       50       41,011  

Parkland Corp./Canada

     

3.88%, 06/16/26 (Call 06/16/23)(c)

    CAD       100       80,973  

4.38%, 03/26/29 (Call 03/26/24)

    CAD       100       81,234  

Parts Europe SA, 6.50%, 07/16/25
(Call 01/15/22)(a)

    EUR       100       120,090  

Southern Pacific Resource Corp., 8.75%, 01/25/18(c)(d)(e)(f)

    CAD       50        

Videotron Ltd.

     

3.13%, 01/15/31 (Call 01/15/26)

    CAD       50       37,337  

3.63%, 06/15/28 (Call 06/15/24)(c)

    CAD       150       119,880  

4.50%, 01/15/30 (Call 10/15/24)

    CAD       150       124,232  

5.63%, 06/15/25 (Call 03/15/25)

    CAD       50       43,633  

5.75%, 01/15/26 (Call 09/15/22)(a)

    CAD       50       41,268  

VZ Vendor Financing II BV, 2.88%, 01/15/29
(Call 12/18/23)(a)

    EUR       200       225,546  
   

 

 

 
     

 

 

 

1,573,497

 

 

Cayman Islands — 0.2%  

UPCB Finance VII Ltd., 3.63%, 06/15/29
(Call 06/15/22)(a)

    EUR       100       117,628  
   

 

 

 
Cyprus — 0.2%  

Bank of Cyprus PCL, 2.50%, 06/24/27
(Call 06/24/26)(a)(b)

    EUR       100       112,472  
   

 

 

 
Denmark — 0.5%  

DKT Finance ApS, 7.00%, 06/17/23
(Call 11/29/21)(a)

    EUR       200       235,035  

TDC AS, 6.88%, 02/23/23(a)

    GBP       100       146,024  
   

 

 

 
     

 

 

 

381,059

 

 

Finland — 1.4%  

Nokia OYJ

     

2.00%, 03/15/24 (Call 12/15/23)(a)

    EUR       100       119,485  

2.00%, 03/11/26 (Call 12/11/25)(a)

    EUR       150       180,825  

2.38%, 05/15/25 (Call 02/15/25)(a)

    EUR       200       243,367  

Teollisuuden Voima Oyj, 1.38%, 06/23/28
(Call 03/23/28)(a)

    EUR       200       227,859  

Teollisuuden Voima OYJ, 1.13%, 03/09/26
(Call 12/09/25)(a)

    EUR       200       230,854  
   

 

 

 
     

 

 

 

1,002,390

 

 

France — 11.4%  

Accor SA

     

2.50%, 01/25/24(a)

    EUR       100       119,983  

3.00%, 02/04/26 (Call 11/04/25)(a)

    EUR       200       241,997  

Altice France SA/France

     

2.13%, 02/15/25 (Call 02/15/22)(a)

    EUR       150       168,050  

3.38%, 01/15/28 (Call 09/15/22)(a)

    EUR       200       221,443  
Security  

Par

(000)

    Value  

 

France (continued)

 

4.25%, 10/15/29 (Call 10/15/24)(a)

    EUR       100     $ 114,463  

5.88%, 02/01/27 (Call 02/01/22)(a)

    EUR       150       181,154  

Banijay Entertainment SASU, 3.50%, 03/01/25
(Call 03/01/22)(a)

    EUR       200       230,886  

CAB SELAS, 3.38%, 02/01/28 (Call 02/01/24)(a)

    EUR       200             229,699  

Casino Guichard Perrachon SA

     

3.58%, 02/07/25 (Call 11/07/24)(a)

    EUR       200       213,466  

4.50%, 03/07/24 (Call 12/07/23)(a)

    EUR       100       112,668  

4.56%, 01/25/23(a)

    EUR       100       115,133  

5.25%, 04/15/27 (Call 04/15/23)(a)

    EUR       100       109,518  

Chrome Bidco SASU, Series OCT, 3.50%, 05/31/28 (Call 05/31/24)(a)

    EUR       100       115,590  

Chrome Holdco SASU, 5.00%, 05/31/29
(Call 05/31/24)(a)

    EUR       100       115,455  

Elis SA

     

1.00%, 04/03/25 (Call 01/03/25)(a)

    EUR       100       114,668  

1.63%, 04/03/28 (Call 01/03/28)(a)

    EUR       100       114,492  

1.75%, 04/11/24 (Call 01/11/24)(a)

    EUR       100       118,211  

Elis Sa Co., 1.63%, 04/03/28 (Call 01/03/28)(a)

    EUR       100       114,492  

Faurecia SE

     

2.63%, 06/15/25 (Call 11/29/21)(a)

    EUR       250       292,135  

3.13%, 06/15/26 (Call 06/15/22)(a)

    EUR       100       117,678  

3.75%, 06/15/28 (Call 06/15/23)(a)

    EUR       200       239,530  

Iliad Holding SAS

     

5.13%, 10/15/26 (Call 10/15/23)(a)

    EUR       150       178,246  

5.63%, 10/15/28 (Call 10/15/24)(a)

    EUR       100       119,302  

Kapla Holding SAS, 3.38%, 12/15/26
(Call 12/15/22)(a)

    EUR       100       114,006  

La Financiere Atalian SASU, 4.00%, 05/15/24
(Call 11/08/21)(a)

    EUR       200       227,214  

Loxam SAS

     

2.88%, 04/15/26 (Call 04/15/22)(a)

    EUR       100       113,568  

3.25%, 01/14/25 (Call 11/08/21)(a)

    EUR       100       115,541  

3.50%, 05/03/23 (Call 11/08/21)(a)

    EUR       200       230,790  

Orano SA

     

2.75%, 03/08/28 (Call 12/08/27)(a)

    EUR       100       119,047  

3.13%, 03/20/23 (Call 12/20/22)(a)

    EUR       100       119,287  

3.38%, 04/23/26 (Call 01/23/26)(a)

    EUR       100       124,078  

4.88%, 09/23/24

    EUR       100       129,043  

Paprec Holding SA

     

3.50%, 07/01/28 (Call 07/01/24)(a)

    EUR       100       115,406  

4.00%, 03/31/25 (Call 11/29/21)(a)

    EUR       100       116,943  

Picard Bondco SA, 5.38%, 07/01/27
(Call 07/01/24)(a)

    EUR       100       113,972  

Picard Groupe SA, 3.88%, 07/01/26
(Call 07/01/23)(a)

    EUR       100       115,855  

Quatrim SASU, 5.88%, 01/15/24
(Call 11/29/21)(a)

    EUR       100       118,724  

RCI Banque SA, 2.63%, 02/18/30
(Call 02/18/25)(a)(b)

    EUR       200       232,099  

Renault SA

     

1.00%, 03/08/23 (Call 12/08/22)(a)

    EUR       100       116,456  

1.00%, 04/18/24 (Call 01/18/24)(a)

    EUR       100       115,855  

1.00%, 11/28/25 (Call 08/28/25)(a)

    EUR       100       115,076  

1.13%, 10/04/27 (Call 07/04/27)(a)

    EUR       100       107,873  

1.25%, 06/24/25 (Call 03/24/25)(a)

    EUR       100       114,073  

2.00%, 09/28/26 (Call 06/28/26)(a)

    EUR       100       114,881  

2.38%, 05/25/26 (Call 02/25/26)(a)

    EUR       200       234,395  

2.50%, 04/01/28 (Call 01/01/28)(a)

    EUR       100       115,537  

Rexel SA, 2.13%, 06/15/28 (Call 06/15/24)(a)

    EUR       100       116,992  

SPCM SA, 2.63%, 02/01/29 (Call 09/15/23)(a)

    EUR       100       116,789  

SPIE SA

     

2.63%, 06/18/26 (Call 12/18/25)(a)

    EUR       100       119,822  

3.13%, 03/22/24 (Call 09/22/23)(a)    

    EUR       100       120,720  

 

 

16  

2 0 2 1    H A R E S     N N U A L    E P O R T    T O    H A R E  H O L D E R S


Schedule of Investments  (continued)

October 31, 2021

  

iShares® International High Yield Bond ETF

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

 

France (continued)

 

Tereos Finance Groupe I SA

     

4.13%, 06/16/23 (Call 03/16/23)(a)

    EUR       100     $ 117,339  

7.50%, 10/30/25 (Call 10/30/22)(a)

    EUR       100       124,217  

Valeo

     

0.63%, 01/11/23 (Call 10/11/22)(a)

    EUR       100             116,210  

1.50%, 06/18/25 (Call 03/18/25)(a)

    EUR       200       236,551  

3.25%, 01/22/24(a)

    EUR       100       123,180  

Valeo SA, 1.00%, 08/03/28 (Call 05/03/28)(a)

    EUR       100       110,977  
   

 

 

 
        8,140,775  
Germany — 9.8%  

ADLER Group SA

     

1.50%, 07/26/24 (Call 04/26/24)(a)

    EUR       100       106,063  

1.88%, 01/14/26 (Call 10/14/25)(a)

    EUR       100       101,716  

3.25%, 08/05/25 (Call 05/05/25)(a)

    EUR       100       106,778  

ADLER Real Estate AG

     

1.88%, 04/27/23 (Call 03/27/23)(a)

    EUR       100       109,848  

3.00%, 04/27/26 (Call 02/27/26)(a)

    EUR       100       108,979  

Bayer AG

     

2.38%, 11/12/79 (Call 02/12/25)(a)(b)

    EUR       200       230,868  

3.13%, 11/12/79 (Call 08/12/27)(a)(b)

    EUR       100       117,637  

3.75%, 07/01/74 (Call 07/01/24)(a)(b)

    EUR       200       241,144  

Bertelsmann SE & Co. KGaA

     

3.00%, 04/23/75 (Call 04/23/23)(a)(b)

    EUR       100       118,898  

3.50%, 04/23/75 (Call 04/23/27)(a)(b)

    EUR       100       124,631  

Commerzbank AG

     

4.00%, 03/23/26(a)

    EUR       200       255,468  

4.00%, 03/30/27(a)

    EUR       100       129,417  

4.00%, 12/05/30 (Call 09/05/25)(a)(b)

    EUR       100       125,266  

Deutsche Bank AG

     

2.75%, 02/17/25(a)

    EUR       125       152,227  

4.50%, 05/19/26(a)

    EUR       200       264,469  

5.63%, 05/19/31 (Call 02/19/26)(a)(b)

    EUR       200       271,273  

Deutsche Lufthansa AG

     

0.25%, 09/06/24

    EUR       50       56,212  

3.00%, 05/29/26 (Call 02/28/26)(a)

    EUR       300       352,485  

3.50%, 07/14/29 (Call 04/14/29)(a)

    EUR       100       116,892  

Evonik Industries AG, 1.38%, 09/02/81
(Call 09/02/26)(a)(b)

    EUR       100       115,447  

Gruenenthal GMBH, 4.13%, 05/15/28
(Call 05/15/24)(a)

    EUR       150       179,387  

K+S AG, 2.63%, 04/06/23
(Call 01/06/23)(a)

    EUR       100       117,246  

LANXESS AG, 4.50%, 12/06/76
(Call 06/06/23)(a)(b)

    EUR       75       91,496  

Nidda BondCo GmbH, 5.00%, 09/30/25
(Call 11/29/21)(a)

    EUR       200       227,854  

Nidda Healthcare Holding GmbH, 3.50%, 09/30/24 (Call 11/08/21)(a)

    EUR       200       227,556  

Schaeffler AG

     

1.88%, 03/26/24 (Call 12/26/23)(a)

    EUR       100       118,144  

2.75%, 10/12/25 (Call 07/12/25)(a)

    EUR       200       244,676  

3.38%, 10/12/28 (Call 07/12/28)(a)

    EUR       100       127,737  

Techem Verwaltungsgesellschaft 674 mbH, 6.00%, 07/30/26 (Call 11/08/21)(a)

    EUR       88       104,160  

Techem Verwaltungsgesellschaft 675 mbH, 2.00%, 07/15/25 (Call 01/15/22)(a)

    EUR       150       169,879  

thyssenkrupp AG

     

    1.88%, 03/06/23 (Call 02/06/23)(a)
2.88%, 02/22/24 (Call 11/22/23)(a)

   
EUR
EUR
 
 
   
250
300
 
 
   
289,582
351,763
 
 

TK Elevator Midco GmbH, 4.38%, 07/15/27
(Call 07/15/23)(a)

    EUR       100       118,884  

Vertical Holdco GmbH, 6.63%, 07/15/28
(Call 07/15/23)(a)

    EUR       180       217,406  

ZF Europe Finance BV

     

2.00%, 02/23/26 (Call 12/23/25)(a)

    EUR       200       231,586  

2.50%, 10/23/27 (Call 07/23/27)(a)    

    EUR       100       116,896  
Security  

Par

(000)

    Value  

 

Germany (continued)

 

ZF Finance GmbH

     

2.00%, 05/06/27 (Call 02/06/27)(a)

    EUR       100     $ 115,514  

2.25%, 05/03/28 (Call 02/03/28)(a)

    EUR       100       115,054  

2.75%, 05/25/27 (Call 02/25/27)(a)

    EUR       100             118,104  

3.00%, 09/21/25 (Call 06/21/25)(a)

    EUR       100       121,056  

3.75%, 09/21/28 (Call 06/21/28)(a)

    EUR       100       124,745  

ZF North America Capital Inc., 2.75%, 04/27/23(a)

    EUR       200       238,019  
   

 

 

 
     

 

 

 

6,972,462

 

 

Greece — 1.0%  

Alpha Bank SA, 2.50%, 03/23/28
(Call 03/23/27)(a)(b)

    EUR       100       111,218  

Eurobank SA, 2.00%, 05/05/27
(Call 05/05/26)(a)(b)

    EUR       100       111,533  

Mytilineos SA, 2.25%, 10/30/26(a)

    EUR       100       116,327  

Piraeus Financial Holdings SA, 9.75%, 06/26/29 (Call 06/26/24)(a)(b)

    EUR       100       125,828  

Public Power Corp. SA

     

3.38%, 07/31/28 (Call 07/31/24)(a)

    EUR       100       117,477  

3.88%, 03/30/26 (Call 03/30/23)(a)

    EUR       100       119,116  
   

 

 

 
     

 

 

 

701,499

 

 

Ireland — 1.2%  

AIB Group PLC

     

1.88%, 11/19/29 (Call 11/19/24)(a)(b)

    EUR       200       235,558  

2.88%, 05/30/31 (Call 05/30/26)(a)(b)

    EUR       100       121,937  

Bank of Ireland Group PLC

     

1.38%, 08/11/31 (Call 05/11/26)(a)(b)

    EUR       100       114,144  

2.38%, 10/14/29 (Call 10/14/24)(a)(b)

    EUR       100       119,363  

eircom Finance DAC

     

1.75%, 11/01/24 (Call 11/29/21)(a)

    EUR       100       115,634  

3.50%, 05/15/26 (Call 05/15/22)(a)

    EUR       100       117,293  
   

 

 

 
     

 

 

 

823,929

 

 

Israel — 1.5%  

Teva Pharmaceutical Finance Netherlands II BV

     

1.13%, 10/15/24(a)

    EUR       300       334,097  

1.25%, 03/31/23 (Call 12/31/22)(a)

    EUR       200       230,074  

1.63%, 10/15/28(a)

    EUR       150       155,116  

3.25%, 04/15/22 (Call 01/15/22)

    EUR       100       116,001  

4.50%, 03/01/25 (Call 12/01/24)

    EUR       200       237,623  
   

 

 

 
     

 

 

 

1,072,911

 

 

Italy — 20.3%  

ADLER Group SA, 2.25%, 04/27/27
(Call 01/27/27)(a)

    EUR       100       100,176  

Alpha Services and Holdings SA, 4.25%, 02/13/30 (Call 02/13/25)(a)(b)

    EUR       100       113,737  

Altice Financing SA, 2.25%, 01/15/25
(Call 01/15/22)(a)

    EUR       100       111,398  

Altice France SA/France, 4.00%, 07/15/29
(Call 04/15/24)(a)

    EUR       100       112,759  

Atlantia SpA

     

1.63%, 02/03/25(a)

    EUR       100       118,442  

1.88%, 07/13/27 (Call 04/13/27)(a)

    EUR       275       329,565  

1.88%, 02/12/28 (Call 11/12/27)(a)

    EUR       100       119,604  

Autostrade per l’Italia SpA

     

1.75%, 06/26/26(a)

    EUR       100       119,494  

1.75%, 02/01/27(a)

    EUR       100       119,544  

1.88%, 09/26/29 (Call 06/26/29)(a)

    EUR       200       240,387  

2.00%, 01/15/30 (Call 10/15/29)(a)

    EUR       400       485,380  

4.38%, 09/16/25(a)

    EUR       100       131,283  

Banca IFIS SpA, 2.00%, 04/24/23(a)

    EUR       100       117,177  

Banca Monte dei Paschi di Siena SpA

     

2.63%, 04/28/25(a)

    EUR       100       116,683  

3.63%, 09/24/24(a)

    EUR       300       355,604  

4.00%, 07/10/22(a)

    EUR       100       116,131  

5.38%, 01/18/28 (Call 01/18/23)(a)(b)    

    EUR       100       83,738  

 

 

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

  17


Schedule of Investments  (continued)

October 31, 2021

  

iShares® International High Yield Bond ETF

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

 

Italy (continued)

 

10.50%, 07/23/29(a)

    EUR       100     $ 104,708  

Banca Popolare di Sondrio SCPA,
2.38%, 04/03/24(a)

    EUR       100       119,856  

Banco BPM SpA

     

0.88%, 07/15/26(a)

    EUR       100       114,071  

1.75%, 04/24/23(a)

    EUR       109             128,697  

1.75%, 01/28/25(a)

    EUR       200       237,427  

3.25%, 01/14/31 (Call 01/14/26)(a)(b)

    EUR       100       117,599  

4.25%, 10/01/29 (Call 10/01/24)(a)(b)

    EUR       200       244,468  

BPER Banca

     

1.38%, 03/31/27 (Call 03/31/26)(a)(b)

    EUR       100       115,057  

1.88%, 07/07/25(a)

    EUR       100       119,181  

Brunello Bidco SpA, 3.50%, 02/15/28
(Call 02/15/24)(a)

    EUR       100       114,519  

Catalent Pharma Solutions Inc., 2.38%, 03/01/28 (Call 03/01/23)(a)

    EUR       150       173,195  

CGG SA, 7.75%, 04/01/27 (Call 04/01/24)(a)

    EUR       100       114,872  

Cheplapharm Arzneimittel GmbH,
4.38%, 01/15/28 (Call 01/15/24)(a)

    EUR       150       178,117  

Deutsche Lufthansa AG

     

2.00%, 07/14/24 (Call 06/14/24)(a)

    EUR       100       115,938  

2.88%, 02/11/25 (Call 01/11/25)(a)

    EUR       200       235,461  

Douglas GmbH, 6.00%, 04/08/26
(Call 04/15/23)(a)

    EUR       200       229,291  

Energizer Gamma Acquisition BV,
3.50%, 06/30/29 (Call 06/30/24)(a)

    EUR       100       111,869  

Esselunga SpA, 0.88%, 10/25/23
(Call 07/25/23)(a)

    EUR       100       116,968  

Faurecia SE, 2.38%, 06/15/27 (Call 06/15/23)(a)

    EUR       100       114,871  

Gamma Bidco SpA, 5.13%, 07/15/25
(Call 07/15/22)(a)

    EUR       200       233,014  

Grifols SA, 2.25%, 11/15/27 (Call 11/15/22)(a)

    EUR       100       115,561  

Iccrea Banca SpA, 4.13%, 11/28/29
(Call 11/28/24)(a)(b)

    EUR       100       116,657  

IMA Industria Macchine Automatiche SpA,
3.75%, 01/15/28 (Call 01/15/23)(a)

    EUR       100       114,762  

INEOS Quattro Finance 2 PLC, 2.50%, 01/15/26 (Call 01/15/23)(a)

    EUR       100       115,194  

Infrastrutture Wireless Italiane SpA

     

1.63%, 10/21/28 (Call 07/21/28)(a)

    EUR       100       116,526  

1.75%, 04/19/31 (Call 01/19/31)(a)

    EUR       100       114,388  

1.88%, 07/08/26 (Call 04/08/26)(a)

    EUR       150       179,043  

International Consolidated Airlines Group SA, 2.75%, 03/25/25 (Call 12/25/24)(a)

    EUR       100       115,156  

Intesa Sanpaolo SpA

     

2.93%, 10/14/30(a)

    EUR       100       120,439  

3.93%, 09/15/26(a)

    EUR       175       224,278  

6.63%, 09/13/23(a)

    EUR       100       128,539  

Leonardo SpA, 2.38%, 01/08/26
(Call 10/08/25)(a)

    EUR       100       119,810  

Mahle GmbH, 2.38%, 05/14/28
(Call 02/14/28)(a)

    EUR       200       224,094  

Mediobanca Banca di Credito Finanziario SpA

     

3.75%, 06/16/26

    EUR       75       94,809  

5.75%, 04/18/23

    EUR       50       62,276  

National Bank of Greece SA, 2.75%, 10/08/26
(Call 10/08/25)(a)(b)

    EUR       200       232,736  

Nexi SpA

     

1.63%, 04/30/26 (Call 01/30/26)(a)

    EUR       200       229,810  

1.75%, 10/31/24 (Call 07/31/24)(a)

    EUR       100       117,405  

2.13%, 04/30/29 (Call 01/30/29)(a)

    EUR       150       171,206  

PPF Telecom Group BV, 3.50%, 05/20/24
(Call 02/20/24)(a)

    EUR       100       122,625  

Rossini Sarl, 6.75%, 10/30/25 (Call 11/29/21)(a)

    EUR       100       119,482  

Saipem Finance International BV

     

2.63%, 01/07/25(a)

    EUR       100       118,158  

3.75%, 09/08/23(a)

    EUR       200       241,189  

Telecom Italia SpA/Milano

     

1.63%, 01/18/29 (Call 10/18/28)(a)

    EUR       100       109,778  

2.38%, 10/12/27 (Call 07/12/27)(a)

    EUR       300       349,446  
Security  

Par

(000)

    Value  

 

Italy (continued)

 

2.50%, 07/19/23(a)

    EUR       100     $ 119,455  

2.88%, 01/28/26 (Call 10/28/25)(a)

    EUR       418       505,095  

3.25%, 01/16/23(a)

    EUR       150       179,096  

3.63%, 01/19/24(a)

    EUR       307             375,871  

3.63%, 05/25/26(a)

    EUR       100       126,246  

4.00%, 04/11/24 (Call 01/11/24)(a)

    EUR       125       153,188  

5.25%, 02/10/22(a)

    EUR       100       117,184  

Teva Pharmaceutical Finance Netherlands II BV, 6.00%, 01/31/25 (Call 10/31/24)

    EUR       100       124,064  

UniCredit SpA

     

2.00%, 09/23/29 (Call 09/23/24)(a)(b)

    EUR       200       232,362  

2.73%, 01/15/32 (Call 01/15/27)(a)(b)

    EUR       200       234,949  

4.38%, 01/03/27 (Call 01/03/22)(a)(b)

    EUR       100       116,372  

6.95%, 10/31/22(a)

    EUR       300       369,911  

Unione di Banche Italiane SpA

     

4.38%, 07/12/29 (Call 07/12/24)(a)(b)

    EUR       150       187,750  

5.88%, 03/04/29 (Call 03/04/24)(a)(b)

    EUR       150       192,433  

Unipol Gruppo SpA

     

3.00%, 03/18/25(a)

    EUR       175       219,127  

3.25%, 09/23/30 (Call 06/23/30)(a)

    EUR       200       265,974  

Verisure Holding AB, 3.88%, 07/15/26
(Call 07/15/22)(a)

    EUR       100       117,728  

Vodafone Group PLC

     

2.63%, 08/27/80 (Call 05/27/26)(a)(b)

    EUR       200       236,677  

3.00%, 08/27/80 (Call 05/27/30)(a)(b)

    EUR       250       294,135  

Webuild SpA, 1.75%, 10/26/24(a)

    EUR       250       288,639  

ZF Europe Finance BV, 3.00%, 10/23/29
(Call 07/23/29)(a)

    EUR       100       119,287  

Ziggo Bond Co. BV, 3.38%, 02/28/30
(Call 02/15/25)(a)

    EUR       150       170,595  
   

 

 

 
     

 

 

 

14,449,786

 

 

Japan — 2.0%  

SoftBank Group Corp.

     

2.13%, 07/06/24 (Call 04/06/24)(a)

    EUR       175       200,308  

2.88%, 01/06/27 (Call 10/06/26)(a)

    EUR       100       112,063  

3.13%, 09/19/25 (Call 06/21/25)(a)

    EUR       250       289,730  

3.38%, 07/06/29 (Call 04/06/29)(a)

    EUR       125       138,713  

3.88%, 07/06/32 (Call 04/06/32)(a)

    EUR       100       110,628  

4.00%, 04/20/23 (Call 01/20/23)(a)

    EUR       100       118,293  

4.00%, 09/19/29 (Call 06/21/29)(a)

    EUR       100       115,533  

5.00%, 04/15/28 (Call 01/16/28)(a)

    EUR       250       304,853  
   

 

 

 
     

 

 

 

1,390,121

 

 

Luxembourg — 3.8%  

Albion Financing 1 SARL/Aggreko Holdings Inc., 5.25%, 10/15/26 (Call 10/15/23)(a)

    EUR       100       116,069  

Altice Financing SA

     

3.00%, 01/15/28 (Call 01/15/23)(a)

    EUR       200       219,127  

4.25%, 08/15/29 (Call 08/15/24)(a)

    EUR       100       113,371  

Altice Finco SA, 4.75%, 01/15/28
(Call 10/15/22)(a)

    EUR       100       109,841  

Altice France Holding SA

     

4.00%, 02/15/28 (Call 02/15/23)(a)

    EUR       100       107,904  

8.00%, 05/15/27 (Call 05/15/22)(a)

    EUR       200       245,158  

Garfunkelux Holdco 3 SA

     

6.75%, 11/01/25 (Call 11/01/22)(a)

    EUR       100       119,748  

7.75%, 11/01/25 (Call 11/01/22)(a)

    GBP       100       141,759  

INEOS Finance PLC

     

2.13%, 11/15/25 (Call 11/08/21)(a)

    EUR       100       114,615  

2.88%, 05/01/26 (Call 05/01/22)(a)

    EUR       300       350,059  

Matterhorn Telecom SA, 3.13%, 09/15/26 (Call 09/15/22)(a)

    EUR       200       228,461  

Mytilineos Financial Partners SA, 2.50%, 12/01/24 (Call 06/01/24)(a)

    EUR       100       118,394  

PLT VII Finance Sarl, 4.63%, 01/05/26 (Call 07/15/22)(a)    

    EUR       100       117,612  

 

 

18  

2 0 2 1    H A R E S     N N U A L    E P O R T    T O    H A R E  H O L D E R S


Schedule of Investments  (continued)

October 31, 2021

  

iShares® International High Yield Bond ETF

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

 

Luxembourg (continued)

 

SIG Combibloc Purchase Co. Sarl, 2.13%, 06/18/25 (Call 03/18/25)(a)

    EUR       100     $ 120,808  

Summer BC Holdco A Sarl, 9.25%, 10/31/27
(Call 10/31/22)(a)

    EUR       90       112,624  

Summer BC Holdco B Sarl, 5.75%, 10/31/26
(Call 10/31/22)(a)

    EUR       150       180,766  

Vivion Investments Sarl

     

3.00%, 08/08/24(a)

    EUR       100       110,619  

3.50%, 11/01/25(a)

    EUR       100       111,110  
   

 

 

 
     

 

 

 

2,738,045

 

 

Netherlands — 2.7%  

Lincoln Financing Sarl, 3.63%, 04/01/24
(Call 11/29/21)(a)

    EUR       200       232,284  

OCI NV, 3.13%, 11/01/24 (Call 11/29/21)(a)

    EUR       200       234,206  

PPF Telecom Group BV

     

2.13%, 01/31/25 (Call 10/31/24)(a)

    EUR       200       237,119  

3.25%, 09/29/27 (Call 06/29/27)(a)

    EUR       100       124,816  

Q-Park Holding I BV, 2.00%, 03/01/27
(Call 03/01/23)(a)

    EUR       100       109,425  

Sigma Holdco BV, 5.75%, 05/15/26
(Call 11/08/21)(a)

    EUR       100       106,760  

SNS Bank NV, 6.25%, 10/26/20(e)

    EUR       50        

Trivium Packaging Finance BV, 3.75%, 08/15/26 (Call 08/15/22)(a)

    EUR       100             116,022  

United Group BV

     

3.13%, 02/15/26 (Call 02/15/22)(a)

    EUR       100       111,112  

3.63%, 02/15/28 (Call 02/15/23)(a)

    EUR       200       221,615  

4.63%, 08/15/28 (Call 08/15/24)(a)

    EUR       100       114,458  

4.88%, 07/01/24 (Call 11/29/21)(a)

    EUR       100       116,781  

UPC Holding BV, 3.88%, 06/15/29
(Call 06/15/22)(a)

    EUR       100       117,510  

Ziggo BV, 4.25%, 01/15/27 (Call 01/15/22)(a)

    EUR       80       94,565  
   

 

 

 
     

 

 

 

1,936,673

 

 

Norway — 0.3%  

Adevinta ASA, 2.63%, 11/15/25
(Call 11/15/22)(a)

    EUR       200       235,181  
   

 

 

 
Portugal — 1.8%  

Banco Comercial Portugues SA

     

1.13%, 02/12/27 (Call 02/12/26)(a)(b)

    EUR       100       111,884  

4.50%, 12/07/27 (Call 12/07/22)(a)(b)

    EUR       100       118,795  

Banco Commercial Portugues, 1.75%, 04/07/28 (Call 04/07/27)(a)(b)

    EUR       100       112,675  

Caixa Geral de Depositos SA, 5.75%, 06/28/28 (Call 06/28/23)(a)(b)

    EUR       200       250,058  

EDP - Energias de Portugal SA

     

1.70%, 07/20/80 (Call 04/20/25)(a)(b)

    EUR       100       115,783  

1.88%, 08/02/81 (Call 05/02/26)(a)(b)

    EUR       100       115,796  

4.50%, 04/30/79 (Call 01/30/24)(a)(b)

    EUR       200       249,008  

Energias De Portugal SA, 1.50%, 03/14/82
(Call 12/14/26)(a)(b)

    EUR       100       112,830  

Novo Banco SA, 8.50%, 07/06/28
(Call 07/06/23)(a)(b)

    EUR       100       118,013  
   

 

 

 
     

 

 

 

1,304,842

 

 

Spain — 7.0%  

Abanca Corp. Bancaria SA, 4.63%, 04/07/30
(Call 04/07/25)(a)(b)

    EUR       100       124,763  

Banco de Sabadell SA

     

0.88%, 06/16/28 (Call 06/16/27)(a)(b)

    EUR       100       111,850  

1.13%, 03/27/25(a)

    EUR       200       232,909  

1.75%, 05/10/24(a)

    EUR       100       118,757  

2.50%, 04/15/31 (Call 01/15/26)(a)(b)

    EUR       100       115,520  

5.38%, 12/12/28 (Call 12/12/23)(a)(b)

    EUR       100       126,011  

5.63%, 05/06/26(a)

    EUR       100       134,565  

Banco do Brasil SA/Cayman

     

1.75%, 03/09/28 (Call 03/09/27)(a)(b)

    EUR       100       113,254  

5.25%, 11/27/31 (Call 05/27/26)(a)(b)

    EUR       100       121,597  
Security  

Par

(000)

    Value  

 

Spain (continued)

 

Cellenex Finance Co.

     

1.00%, 09/15/27 (Call 06/15/27)(a)

    EUR       100     $ 111,781  

2.00%, 09/15/32 (Call 06/15/32)(a)

    EUR       200       221,785  

Cellnex Finance Co. SA

     

0.75%, 11/15/26 (Call 08/15/26)(a)

    EUR       100       113,121  

1.25%, 01/15/29 (Call 10/15/28)(a)

    EUR       200       221,225  

1.50%, 06/08/28 (Call 03/08/28)(a)

    EUR       100       113,638  

2.00%, 02/15/33 (Call 11/15/32)(a)

    EUR       300       329,936  

Cellnex Telecom SA

     

1.00%, 04/20/27 (Call 01/20/27)(a)

    EUR       100       112,742  

1.88%, 06/26/29 (Call 03/26/29)

    EUR       100       115,006  

2.38%, 01/16/24 (Call 10/16/23)(a)

    EUR       100       120,361  

2.88%, 04/18/25 (Call 01/18/25)(a)

    EUR       100       123,450  

Cirsa Finance International, 4.50%, 03/15/27
(Call 09/15/23)(a)

    EUR       100       113,864  

Cirsa Finance International Sarl, 6.25%, 12/20/23 (Call 11/08/21)(a)

    EUR       85       99,351  

ContourGlobal Power Holdings SA

     

2.75%, 01/01/26 (Call 01/01/23)(a)

    EUR       100       114,491  

4.13%, 08/01/25 (Call 11/29/21)(a)

    EUR       100       117,136  

El Corte Ingles SA

     

3.00%, 03/15/24 (Call 11/08/21)(a)

    EUR       100             116,165  

3.63%, 03/15/24 (Call 03/15/22)(a)

    EUR       100       118,796  

Grifols Escrow Issuer SA, 3.88%, 10/15/28
(Call 10/15/24)(a)

    EUR       250       289,300  

Grifols SA

     

1.63%, 02/15/25 (Call 02/15/22)(a)

    EUR       150       172,804  

3.20%, 05/01/25 (Call 11/29/21)(a)

    EUR       200       231,371  

Ibercaja Banco SA, 2.75%, 07/23/30
(Call 07/23/25)(a)(b)

    EUR       100       116,420  

Lorca Telecom Bondco, 4.00%, 09/18/27
(Call 09/30/23)(a)

    EUR       200       232,446  

Lorca Telecom Bondco SA, 4.00%, 09/18/27
(Call 09/30/23)(a)

    EUR       100       116,264  

Repsol International Finance BV, 4.50%, 03/25/75 (Call 03/25/25)(a)(b)

    EUR       175       218,156  

Unicaja Banco SA, 2.88%, 11/13/29
(Call 11/13/24)(a)(b)

    EUR       100       118,355  
     

 

 

 
     

 

 

 

4,957,190

 

 

Sweden — 3.3%  

Akelius Residential Property AB

     

2.25%, 05/17/81 (Call 02/17/26)(a)(b)

    EUR       100       113,641  

3.88%, 10/05/78 (Call 07/08/23)(a)(b)

    EUR       100       120,924  

Dometic Group AB

     

2.00%, 09/29/28 (Call 06/29/28)(a)

    EUR       100       113,227  

3.00%, 09/13/23 (Call 08/13/23)(a)

    EUR       100       120,371  

Fastighets AB Balder

     

2.87%, 06/02/81 (Call 03/02/26)(a)(b)

    EUR       100       110,475  

3.00%, 03/07/78 (Call 03/07/23)(a)(b)

    EUR       100       115,885  

Intrum AB

     

3.00%, 09/15/27 (Call 09/15/22)(a)

    EUR       100       111,788  

3.13%, 07/15/24 (Call 11/29/21)(a)

    EUR       100       115,627  

3.50%, 07/15/26 (Call 07/15/22)(a)

    EUR       175       201,734  

4.88%, 08/15/25 (Call 08/15/22)(a)

    EUR       200       238,875  

Verisure Holding AB

     

3.25%, 02/15/27 (Call 02/15/23)(a)

    EUR       150       172,818  

3.50%, 05/15/23 (Call 11/08/21)(a)

    EUR       100       116,314  

Verisure Midholding AB, 5.25%, 02/15/29
(Call 02/15/24)(a)

    EUR       300       351,418  

Volvo Car AB

     

2.00%, 01/24/25 (Call 10/24/24)(a)

    EUR       200       239,407  

2.13%, 04/02/24 (Call 01/02/24)(a)

    EUR       100       119,257  
   

 

 

 
     

 

 

 

2,361,761

 

 

Switzerland — 0.5%  

Dufry One BV

     

2.00%, 02/15/27 (Call 02/15/23)(a)

    EUR       100       108,940  

2.50%, 10/15/24 (Call 11/29/21)(a)    

    EUR       100       113,737  

 

 

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

  19


Schedule of Investments  (continued)

October 31, 2021

  

iShares® International High Yield Bond ETF

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

 

Switzerland (continued)

 

3.38%, 04/15/28 (Call 04/15/24)(a)

    EUR       100     $ 113,542  
   

 

 

 
     

 

 

 

336,219

 

 

United Kingdom — 10.8%  

Arqiva Broadcast Finance PLC, 6.75%, 09/30/23 (Call 11/29/21)(a)

    GBP       150       208,384  

BCP Modular Services, 4.75%, 11/30/28
(Call 11/30/24)(a)

    EUR       200       230,786  

BCP V Modular Services Finance II PLC,
6.13%, 11/30/28 (Call 11/30/24)(a)

    GBP       100       136,725  

Bellis Acquisition Co. PLC, 3.25%, 02/16/26
(Call 02/24/23)(a)

    GBP       300       392,764  

Bellis Finco PLC, 4.00%, 02/16/27 (Call 02/24/23)(a)

    GBP       200       258,217  

British Telecommunications PLC, 1.87%, 08/18/80 (Call 05/18/25)(a)(b)

    EUR       100       109,377  

Cidron Aida Finco Sarl, 5.00%, 04/01/28
(Call 04/01/24)(a)

    EUR       100       113,417  

Deuce Finco PLC, 5.50%, 06/15/27
(Call 06/15/23)(a)

    GBP       100       135,950  

eG Global Finance PLC, 4.38%, 02/07/25
(Call 11/29/21)(a)

    EUR       225       256,233  

GKN Holdings Ltd., 4.63%, 05/12/32(a)

    GBP       100       146,452  

Heathrow Finance PLC

     

4.38%, 03/01/27(a)(g)

    GBP       100       138,354  

4.75%, 03/01/24 (Call 12/01/23)(a)(g)

    GBP       100       142,095  

Iceland Bondco PLC, 4.38%, 05/15/28
(Call 02/15/24)(a)

    GBP       100       119,209  

INEOS Styrolution Group GmbH, 2.25%, 01/16/27 (Call 01/15/23)(a)

    EUR       200             224,774  

International Consolidated Airlines Group SA

     

1.50%, 07/04/27 (Call 04/04/27)(a)

    EUR       100       105,010  

3.75%, 03/25/29 (Call 12/25/28)(a)

    EUR       100       114,685  

Jaguar Land Rover Automotive PLC

     

2.20%, 01/15/24(a)

    EUR       100       113,569  

3.88%, 03/01/23(a)

    GBP       100       137,577  

4.50%, 01/15/26 (Call 10/15/25)(a)

    EUR       150       176,116  

4.50%, 07/15/28 (Call 07/15/24)(a)

    EUR       100       114,833  

5.88%, 11/15/24 (Call 08/15/24)(a)

    EUR       100       123,521  

Jerrold Finco PLC, 5.25%, 01/15/27
(Call 01/15/23)(a)

    GBP       100       139,324  

Marks & Spencer PLC

     

3.75%, 05/19/26 (Call 02/19/26)(a)

    GBP       100       140,848  

6.00%, 06/12/25(a)

    GBP       100       150,453  

Modulaire Global Finance PLC, 6.50%, 02/15/23 (Call 11/08/21)(a)

    EUR       100       117,341  

Motion Finco Sarl, 7.00%, 05/15/25
(Call 05/15/22)(a)

    EUR       100       120,652  

NGG Finance PLC

     

1.63%, 12/05/79 (Call 09/05/24)(a)(b)

    EUR       100       116,305  

2.13%, 09/05/82 (Call 06/05/27)(a)(b)

    EUR       100       116,094  

5.63%, 06/18/73 (Call 06/18/25)(a)(b)

    GBP       200       297,305  

Pinewood Finance Co. Ltd., 3.25%, 09/30/25
(Call 11/29/21)(a)

    GBP       100       136,979  

Pinnacle Bidco PLC, 5.50%, 02/15/25
(Call 01/15/22)(a)

    EUR       100       117,530  

Rolls-Royce PLC

     

0.88%, 05/09/24 (Call 02/09/24)(a)

    EUR       100       114,822  

1.63%, 05/09/28 (Call 02/09/28)(a)

    EUR       100       111,369  

4.63%, 02/16/26 (Call 11/16/25)(a)

    EUR       100       128,344  

5.75%, 10/15/27 (Call 07/15/27)(a)

    GBP       100       152,108  

Stonegate Pub Co. Financing 2019 PLC,
8.25%, 07/31/25 (Call 07/31/22)(a)

    GBP       200       283,664  

Thames Water Utilities Finance PLC, 2.88%, 05/03/27(a)

    GBP       200       278,923  

Virgin Media Finance PLC, 3.75%, 07/15/30
(Call 07/15/25)(a)

    EUR       100       114,664  

Virgin Media Secured Finance PLC

     

4.13%, 08/15/30 (Call 08/15/25)(a)

    GBP       100       135,565  

4.25%, 01/15/30 (Call 10/15/24)(a)

    GBP       100       136,125  

5.00%, 04/15/27 (Call 04/15/22)(a)

    GBP       200       282,164  

Vmed O2 UK Financing I PLC

     

3.25%, 01/31/31 (Call 01/31/26)(a)

    EUR       100       115,776  

4.00%, 01/31/29 (Call 01/31/24)(a)    

    GBP       100       135,050  
Security  

Par

(000)

    Value  

 

United Kingdom (continued)

 

4.50%, 07/15/31 (Call 07/15/26)(a)

    GBP       200     $ 274,477  

Vodafone Group PLC

     

3.10%, 01/03/79 (Call 10/03/23)(a)(b)

    EUR       300       358,112  

4.88%, 10/03/78 (Call 07/03/25)(a)(b)

    GBP       100       144,504  
   

 

 

 
     

 

 

 

7,716,546

 

 

United States — 15.0%  

Adient Global Holdings Ltd., 3.50%, 08/15/24
(Call 05/15/24)(a)

    EUR       175       204,576  

Allied Universal Holdco LLC/Allied Universal Finance Corp/Atlas Luxco 4 Sarl

     

3.63%, 06/01/28 (Call 06/01/24)(a)

    EUR       100       113,259  

4.88%, 06/01/28 (Call 06/01/24)(a)

    GBP       100       133,485  

Alpha Services and Holdings SA, 5.50%, 06/11/31 (Call 03/11/26)(a)(b)

    EUR       100       117,644  

Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC

     

2.00%, 09/01/28 (Call 05/15/24)(a)

    EUR       100       114,079  

3.00%, 09/01/29 (Call 05/15/24)(a)

    EUR       100       113,138  

Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc.

     

2.13%, 08/15/26 (Call 08/15/22)(a)

    EUR       200       227,938  

4.75%, 07/15/27 (Call 07/15/22)(a)

    GBP       100       138,227  

Ashland Services BV, 2.00%, 01/30/28
(Call 11/01/27)(a)

    EUR       100       118,532  

Avantor Funding Inc., 2.63%, 11/01/25
(Call 11/01/22)(a)

    EUR       200       236,186  

Avis Budget Finance PLC

     

4.13%, 11/15/24 (Call 11/29/21)(a)

    EUR       100       116,719  

4.75%, 01/30/26 (Call 11/29/21)(a)

    EUR       100       117,234  

Axalta Coating Systems Dutch Holding B BV, 3.75%, 01/15/25 (Call 11/08/21)(a)

    EUR       100       116,759  

Ball Corp.

     

0.88%, 03/15/24 (Call 12/15/23)

    EUR       100       115,697  

1.50%, 03/15/27 (Call 12/15/26)

    EUR       100       117,224  

4.38%, 12/15/23

    EUR       100       124,932  

Banff Merger Sub Inc., 8.38%, 09/01/26
(Call 11/08/21)(a)

    EUR       100       120,172  

Belden Inc., 3.88%, 03/15/28 (Call 03/15/23)(a)

    EUR       250       298,860  

Boxer Parent Co. Inc., 6.50%, 10/02/25
(Call 06/01/22)(a)

    EUR       100       120,976  

Carnival PLC, 1.00%, 10/28/29 (Call 07/28/29)

    EUR       100       90,104  

Chemours Co. (The), 4.00%, 05/15/26
(Call 11/29/21)

    EUR       100       116,562  

Clarios Global LP/Clarios US Finance Co., 4.38%, 05/15/26 (Call 05/15/22)(a)

    EUR       125       148,022  

Cogent Communications Group Inc.,
4.38%, 06/30/24 (Call 11/08/21)(a)

    EUR       100       117,753  

Constellium SE, 3.13%, 07/15/29
(Call 07/15/24)(a)

    EUR       100       113,463  

Coty Inc.

     

3.88%, 04/15/26 (Call 04/15/23)(a)

    EUR       100       117,592  

4.75%, 04/15/26 (Call 11/29/21)(a)

    EUR       100       115,247  

Crown European Holdings SA

     

0.75%, 02/15/23 (Call 01/15/23)(a)

    EUR       100             115,631  

2.25%, 02/01/23 (Call 11/01/22)(a)

    EUR       100       117,388  

2.63%, 09/30/24 (Call 03/31/24)(a)

    EUR       125       149,748  

2.88%, 02/01/26 (Call 08/01/25)(a)

    EUR       100       122,008  

Darling Global Finance BV, 3.63%, 05/15/26
(Call 11/08/21)(a)

    EUR       100       117,272  

Encore Capital Group Inc., 5.38%, 02/15/26
(Call 11/15/22)(a)

    GBP       100       141,256  

Ford Credit Canada Co, 2.96%, 09/16/26
(Call 08/16/26)

    CAD       100       78,844  

Ford Credit Canada Co.

     

3.50%, 11/30/23

    CAD       100       81,620  

3.74%, 05/08/23

    CAD       75       61,602  

4.46%, 11/13/24

    CAD       100       83,761  

Ford Motor Credit Co. LLC

     

1.36%, 02/07/25

    EUR       100       115,427  

1.51%, 02/17/23

    EUR       100       116,790  

1.74%, 07/19/24

    EUR       100       117,430  

 

 

20  

2 0 2 1    H A R E S     N N U A L    E P O R T    T O    H A R E  H O L D E R S


Schedule of Investments  (continued)

October 31, 2021

  

iShares® International High Yield Bond ETF

(Percentages shown are based on Net Assets)

 

Security         

    

Par
(000)

    Value  
United States (continued)                  

2.33%, 11/25/25

    EUR       100     $       119,273  

2.39%, 02/17/26

    EUR       225       268,748  

2.75%, 06/14/24

    GBP       200       274,051  

3.02%, 03/06/24

    EUR       100       120,224  

3.25%, 09/15/25

    EUR       100       123,283  

Goodyear Europe BV Co., 2.75%, 08/15/28 (Call 08/15/24)(a)

    EUR       100       116,457  

Hanesbrands Finance Luxembourg SCA, 3.50%, 06/15/24 (Call 03/15/24)(a)

    EUR       100       121,550  

International Game Technology PLC

     

3.50%, 07/15/24 (Call 01/15/24)(a)

    EUR       225       273,036  

3.50%, 06/15/26 (Call 06/15/22)(a)

    EUR       150       177,431  

IQVIA Inc.

     

1.75%, 03/15/26 (Call 03/15/23)(a)

    EUR       100       115,869  

2.25%, 01/15/28 (Call 07/15/22)(a)

    EUR       150       172,808  

2.25%, 03/15/29 (Call 03/15/24)(a)

    EUR       200       228,623  

2.88%, 09/15/25 (Call 11/08/21)(a)

    EUR       100       116,245  

Iron Mountain UK PLC, 3.88%, 11/15/25 (Call 11/08/21)(a)

    GBP       100       137,535  

Kraft Heinz Foods Co.

     

2.00%, 06/30/23 (Call 03/30/23)(a)

    EUR       200       237,372  

2.25%, 05/25/28 (Call 02/25/28)(a)

    EUR       200       247,879  

4.13%, 07/01/27 (Call 04/01/27)(a)

    GBP       100       150,893  

Levi Strauss & Co., 3.38%, 03/15/27 (Call 03/15/22)

    EUR       100       117,934  

Liberty Mutual Group Inc., 3.63%, 05/23/59 (Call 05/23/24)(a)(b)

    EUR       100       119,445  

Mauser Packaging Solutions Holding Co., 4.75%, 04/15/24 (Call 11/29/21)(a)

    EUR       100       114,360  

MPT Operating Partnership LP/MPT Finance Corp.

     

0.99%, 10/15/26 (Call 09/15/26)

    EUR       100       114,461  

2.50%, 03/24/26 (Call 02/24/26)

    GBP       100       137,966  

3.33%, 03/24/25 (Call 12/24/24)

    EUR       100       124,592  

3.38%, 04/24/30 (Call 01/24/30)

    GBP       100       140,869  

3.69%, 06/05/28 (Call 04/06/28)

    GBP       100       144,750  

Novelis Sheet Ingot GmbH, 3.38%, 04/15/29
(Call 04/15/24)(a)

    EUR       100       117,742  

OI European Group BV, 3.13%, 11/15/24 (Call 08/15/24)(a)

    EUR       200       236,113  

Organon & Co./Organon Foreign Debt Co-Issuer BV., 2.88%, 04/30/28
(Call 04/30/24)(a)

    EUR       200       233,102  

Playtech PLC, 3.75%, 10/12/23
(Call 11/29/21)(a)

    EUR       100       116,803  

Primo Water Holdings Inc., 3.88%, 10/31/28
(Call 10/31/23)(a)

    EUR       100       118,065  

Scientific Games International Inc., 5.50%, 02/15/26 (Call 11/29/21)(a)

    EUR       100       119,274  

Sealed Air Corp., 4.50%, 09/15/23
(Call 06/15/23)(a)

    EUR       100       122,585  

Silgan Holdings Inc.

     

2.25%, 06/01/28 (Call 03/01/23)

    EUR       100       115,573  

3.25%, 03/15/25 (Call 11/29/21)

    EUR       100       116,153  

Spectrum Brands Inc., 4.00%, 10/01/26 (Call 11/29/21)(a)

    EUR       100       117,256  
Security          Par/
Shares
(000)
    Value  
United States (continued)                  

Standard Industries Inc./NJ,
2.25%, 11/21/26 (Call 08/21/26)(a)

    EUR   100     $ 111,789  

WMG Acquisition Corp.,
2.25%, 08/15/31 (Call 08/15/26)(a)

    EUR   100       115,107  
     

 

 

 
        10,658,373  
     

 

 

 

Total Corporate Bonds & Notes — 97.9%
(Cost: $69,738,973)

        69,674,014  
     

 

 

 

Common Stocks

     
South Africa — 0.0%                  

Sentry Holdings Ltd.Class A

      0 (h)       
     

 

 

 

Total Common Stocks — 0.0%
(Cost: $159,437)

         
     

 

 

 

Short-Term Investments

     
Money Market Funds — 0.0%                  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(i)(j)

      20       20,000  
     

 

 

 

Total Short-Term Investments — 0.0%
(Cost: $20,000)

        20,000  
     

 

 

 

Total Investments in Securities — 97.9%
(Cost: $69,918,410)

        69,694,014  

Other Assets, Less Liabilities — 2.1%

        1,466,531  
     

 

 

 

Net Assets — 100.0%

      $  71,160,545  
     

 

 

 

 

(a) 

This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

(b) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(c) 

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

(d) 

Issuer filed for bankruptcy and/or is in default.

(e) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(f) 

Non-income producing security.

(g) 

Step coupon security. Coupon rate will either increase (step-up bond) or decrease (step-down bond) at regular intervals until maturity. Interest rate shown reflects the rate currently in effect.

(h) 

Rounds to less than 1,000.

(i) 

Affiliate of the Fund.

(j) 

Annualized 7-day yield as of period end.

 

Affiliates

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

 

                   
Affiliated Issuer   Value at
10/31/20
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
(000)
    Income     Capital Gain
Distributions from
Underlying Funds
 

BlackRock Cash Funds: Treasury, SL Agency Shares

  $ 40,000     $       $(20,000 )(a)    $     $     $ 20,000       20     $ 5     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) 

Represents net amount purchased (sold).

 

 

 

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

  21


Schedule of Investments  (continued)

October 31, 2021

  

iShares® International High Yield Bond 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

                 

Corporate Bonds & Notes

   $        $ 69,674,014        $        $ 69,674,014  

Common Stocks

                                 

Money Market Funds

     20,000                            20,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $       20,000        $ 69,674,014        $               —        $ 69,694,014  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

22  

2 0 2 1    H A R E S     N N U A L    E P O R T    T O    H A R E  H O L D E R S


Schedule of Investments  

October 31, 2021

  

iShares® J.P. Morgan EM Corporate Bond ETF

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

 

Corporate Bonds & Notes(a)

   

 

Argentina — 1.3%

   

Agua y Saneamientos Argentinos SA, 6.63%, 02/01/23 (Call 11/08/21)(b)

  $ 300     $ 170,588  

Arcor SAIC, 6.00%, 07/06/23 (Call 12/13/21)(b)

    525       509,631  

Arcos Dorados Holdings Inc., 5.88%, 04/04/27 (Call 04/04/22)(b)

    400       412,200  

MercadoLibre Inc., 3.13%, 01/14/31
(Call 10/14/30)(c)

    200       187,760  

MSU Energy SA/UGEN SA/UENSA SA, 6.88%, 02/01/25 (Call 02/01/22)(b)

    650       527,637  

Pampa Energia SA, 7.50%, 01/24/27 (Call 01/24/22)(b)

    600       530,925  

Stoneway Capital Corp., 10.00%, 03/01/27 (Call 03/01/22)(b)(d)(e)

    266       70,487  

Transportadora de Gas del Sur SA, 6.75%, 05/02/25 (Call 05/02/22)(b)

        450       418,866  

YPF SA

   

6.95%, 07/21/27(b)

    660       475,736  

7.00%, 12/15/47 (Call 06/15/47)(b)

    500       323,750  

8.50%, 07/28/25(b)

    1,045       837,502  

8.75%, 04/04/24(b)

    730       658,369  

YPF Sociedad Anonima

   

1.50%, 09/30/33 (Call 03/30/33)(b)(f)

    550       305,250  

2.50%, 06/30/29 (Call 12/30/28)(b)(f)

    725       483,620  

4.00%, 02/12/26 (Call 11/12/25)(b)(f)

        700             602,350  
   

 

 

 
   

 

 

 

6,514,671

 

 

Azerbaijan — 0.2%            

International Bank of Azerbaijan OJSC, 3.50%, 09/01/24(b)

    850       855,791  
   

 

 

 
Bahrain — 0.3%            

AUB Sukuk Ltd., 2.62%, 09/09/26(b)

    400       398,400  

BBK BSC, 5.50%, 07/09/24(b)

    400       407,950  

GFH Sukuk Ltd., 7.50%, 01/28/25(b)

    600       621,488  
   

 

 

 
      1,427,838  
Brazil — 5.4%            

Adecoagro SA, 6.00%, 09/21/27 (Call 09/21/22)(b)

    150       155,419  

Amaggi Luxembourg International Sarl, 5.25%, 01/28/28 (Call 01/28/25)(b)

    200       200,163  

Atento Luxco 1 SA, 8.00%, 02/10/26 (Call 02/10/24)(b)

    150       159,075  

Azul Investments LLP, 7.25%, 06/15/26 (Call 06/15/24)(g)

    200       185,413  

B2W Digital Lux Sarl, 4.38%, 12/20/30 (Call 09/20/30)(b)(c)

    200       185,850  

Banco Bradesco SA/Cayman Islands, 3.20%, 01/27/25(b)

    400       404,000  

Banco BTG Pactual SA/Cayman Islands

   

2.75%, 01/11/26 (Call 12/11/25)(b)

    200       192,563  

4.50%, 01/10/25 (Call 12/10/24)(b)(c)

    200       204,100  

Banco do Brasil SA/Cayman

   

4.63%, 01/15/25(b)

    400       419,700  

4.75%, 03/20/24(b)

    400       419,825  

4.88%, 04/19/23(b)

    200       208,600  

6.25%, (Call 04/15/24)(b)(h)(i)

    400       393,150  

9.00%, (Call 06/18/24)(b)(c)(h)(i)

    400       433,200  

9.25%, 10/29/49 (Call 04/15/23)(b)(h)(i)

    200       211,662  

Banco Votorantim SA, 4.38%, 07/29/25(b)

    200       203,063  

Braskem Finance Ltd., 6.45%, 02/03/24(c)

    200       218,537  

Braskem Netherlands Finance BV

   

4.50%, 01/10/28 (Call 10/10/27)(b)

    400       409,450  

4.50%, 01/31/30(b)

    400       405,825  

5.88%, 01/31/50(b)

    200       212,850  

8.50%, 01/23/81 (Call 10/24/25)(b)(i)

    200       223,287  

BRF SA

   

4.88%, 01/24/30 (Call 10/24/29)(b)

    200       198,452  

5.75%, 09/21/50 (Call 03/21/50)(b)

    200       186,538  
Security   Par
(000)
    Value  

 

Brazil (continued)

           

Cemig Geracao e Transmissao SA, 9.25%, 12/05/24 (Call 12/05/23)(b)

  $ 200     $ 222,912  

Centrais Eletricas Brasileiras SA, 4.63%, 02/04/30(b)

    400       390,700  

Cosan Luxembourg SA, 7.00%, 01/20/27 (Call 01/20/22)(b)

    200       207,600  

Cosan SA, 5.50%, 09/20/29 (Call 09/20/24)(b)

    200       209,038  

CSN Inova Ventures, 6.75%, 01/28/28 (Call 01/28/24)(b)

    400       424,300  

CSN Resources SA

   

4.63%, 06/10/31 (Call 06/10/26)(b)

        200             196,200  

7.63%, 04/17/26 (Call 04/17/22)(b)

    200       210,600  

Embraer Netherlands Finance BV

   

5.05%, 06/15/25

    227       235,413  

5.40%, 02/01/27

    250       260,875  

Fibria Overseas Finance Ltd., 5.50%, 01/17/27(c)

    200       223,260  

FS Luxembourg Sarl, 10.00%, 12/15/25 (Call 12/15/23)(b)

    200       219,875  

Gerdau Trade Inc., 4.88%, 10/24/27(b)

    200       217,750  

Globo Comunicacao e Participacoes SA, 4.88%, 01/22/30(b)

    200       193,000  

Gol Finance SA, 7.00%, 01/31/25 (Call 01/31/22)(b)

    150       135,591  

GTL Trade Finance Inc., 7.25%, 04/16/44 (Call 10/16/43)(b)

    200       265,537  

Guara Norte Sarl, 5.20%, 06/15/34(b)

    196       192,566  

Hidrovias International Finance SARL, 4.95%, 02/08/31 (Call 02/08/26)(b)

    200       187,725  

InterCement Financial Operations BV, 5.75%, 07/17/24 (Call 11/29/21)(b)

    200       185,750  

Itau Unibanco Holding SA/Cayman Island

   

3.25%, 01/24/25(b)(c)

        200             202,100  

4.50%, 11/21/29 (Call 11/21/24)(b)(c)(i)

    400       398,325  

4.63%, (Call 02/27/25)(b)(h)(i)

    200       187,163  

5.13%, 05/13/23(b)(c)

    200       209,040  

6.13%, (Call 12/12/22)(b)(h)(i)

    200       198,100  

6.50%, (Call 03/19/23)(b)(c)(h)(i)

    200       199,913  

JBS Finance Luxembourg Co., 3.63%, 01/15/32
(Call 01/15/27)(b)

    200       197,000  

JBS Finance Luxembourg Sarl, 3.63%, 01/15/32
(Call 01/15/27)(g)

    200       197,000  

JBS USA Food Co.

   

5.75%, 01/15/28 (Call 07/15/22)(b)

    200       207,750  

7.00%, 01/15/26 (Call 01/15/22)(b)

    200       208,400  

JBS USA LUX SA/JBS USA Food Co./JBS USA Finance Inc., 3.75%, 12/01/31 (Call 12/01/26)(b)

    100       102,375  

JSM Global Sarl, 4.75%, 10/20/30 (Call 07/20/30)(b)

    200       190,225  

Klabin Austria GmbH

   

3.20%, 01/12/31 (Call 10/12/30)(b)

    200       183,250  

5.75%, 04/03/29 (Call 01/03/29)(b)

    200       216,560  

7.00%, 04/03/49 (Call 10/03/48)(b)

    200       230,000  

Light Servicos Energia Co., 4.38%, 06/18/26 (Call 06/18/24)(b)

    200       195,163  

MARB BondCo PLC, 3.95%, 01/29/31 (Call 01/29/26)(b)

    400       378,500  

MC Brazil Downstream Trading SARL, 7.25%, 06/30/31(g)

    400       389,500  

Minerva Luxembourg SA, 4.38%, 03/18/31 (Call 03/18/26)(b)

    400       378,900  

Movida Europe SA, 5.25%, 02/08/31
(Call 02/08/26)(b)

    200       188,500  

Natura Cosmeticos SA, 4.13%, 05/03/28 (Call 03/03/28)(b)

    200       197,960  

NBM U.S. Holdings Inc.

   

6.63%, 08/06/29 (Call 08/06/24)(b)

    200       217,600  

7.00%, 05/14/26 (Call 05/14/22)(b)

    200       211,450  

Nexa Resources SA, 5.38%, 05/04/27 (Call 02/04/27)(b)(c)

    600       636,675  

Odebrecht Drilling Norbe VIII/IX Ltd., 7.35%, (7.35% PIK), 12/01/26 (Call 11/29/21)(b)(j)

    267       148,743  

Odebrecht Holdco Finance Ltd., 0.00%, 09/10/58 (Call 11/29/21)(b)(k)

    400       1,000  

Odebrecht Offshore Drilling Finance Ltd., 7.72%, (7.72% PIK), 12/01/26 (Call 12/01/21)(b)(c)(j)

    283       68,614  

 

 

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

  23


Schedule of Investments  (continued)

October 31, 2021

  

iShares® J.P. Morgan EM Corporate Bond ETF

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Brazil (continued)            

OI Movel SA, 8.75%, 07/30/26 (Call 07/30/24)(b)

  $ 200     $ 206,100  

Oi SA, 10.00%, (12.00% PIK), 07/27/25(c)(j)

    400       359,700  

Petrobras Global Finance BV

   

5.09%, 01/15/30(c)

    450       458,212  

5.30%, 01/27/25

    250       271,094  

5.50%, 06/10/51 (Call 12/10/50)(c)

    250       218,817  

5.60%, 01/03/31 (Call 10/03/30)

    600       626,100  

5.75%, 02/01/29

    250       270,031  

6.00%, 01/27/28

    400       435,000  

6.75%, 01/27/41(c)

        300             321,056  

6.75%, 06/03/50 (Call 12/03/49)

    250       256,156  

6.85%, 06/05/2115(c)

    450       436,444  

6.88%, 01/20/40(c)

    248       269,669  

6.90%, 03/19/49(c)

    300       314,506  

7.25%, 03/17/44

    300       327,056  

7.38%, 01/17/27(c)

    350       410,375  

8.75%, 05/23/26(c)

    100       122,850  

Petrorio Luxembourg SARL, 6.13%, 06/09/26 (Call 06/09/24)(b)

    200       200,750  

Raizen Fuels Finance SA, 5.30%, 01/20/27(b)(c)

    200       219,100  

Rede D’or Finance Sarl, 4.95%, 01/17/28 (Call 10/17/27)(b)

        400             410,575  

Rumo Luxembourg Sarl, 5.88%, 01/18/25 (Call 01/18/22)(b)

    200       206,038  

Simpar Europe SA, 5.20%, 01/26/31
(Call 01/26/26)(b)

    200       192,000  

St. Marys Cement Inc. Canada, 5.75%, 01/28/27 (Call 10/28/26)(b)

    200       225,412  

StoneCo Ltd., 3.95%, 06/16/28 (Call 05/16/28)(b)

    200       178,350  

Suzano Austria GmbH

   

3.13%, 01/15/32 (Call 10/15/31)

    350       329,875  

3.75%, 01/15/31 (Call 10/15/30)

    500       498,750  

5.00%, 01/15/30 (Call 10/15/29)

    400       428,120  

6.00%, 01/15/29 (Call 10/15/28)

    400       457,120  

7.00%, 03/16/47 (Call 09/16/46)(b)

    200       250,460  

Ultrapar International SA

   

5.25%, 10/06/26(b)

    200       212,975  

5.25%, 06/06/29(b)(c)

    200       206,225  

Unigel Luxembourg SA, 8.75%, 10/01/26 (Call 10/01/22)(b)

    200       212,600  

Usiminas International Sarl, 5.88%, 07/18/26 (Call 07/18/23)(b)

    200       209,600  

Vale Overseas Ltd.

   

3.75%, 07/08/30 (Call 04/08/30)

    400       408,000  

6.25%, 08/10/26

    400       464,325  

6.88%, 11/21/36

    400       521,500  

6.88%, 11/10/39(c)

    250       329,734  

Vale SA, 5.63%, 09/11/42(c)

    200       237,280  

XP Inc., 3.25%, 07/01/26 (Call 06/01/26)(b)

    200       190,975  
   

 

 

 
      28,042,150  
Burkina Faso — 0.1%            

Endeavour Mining PLC, 5.00%, 10/14/26 (Call 10/14/23)(g)

    400       402,980  
   

 

 

 
Chile — 4.1%            

AES Andes SA., 7.13%, 03/26/79
(Call 04/07/24)(b)(i)

    600       625,800  

Alfa Desarrollo SpA, 4.55%, 09/27/51 (Call 03/27/51)(g)

    1,000       973,350  

Antofagasta PLC, 2.38%, 10/14/30
(Call 07/14/30)(b)

    400       376,075  

Banco de Credito e Inversiones SA

   

2.88%, 10/14/31 (Call 07/14/31)(g)

    200       195,800  

3.50%, 10/12/27(b)(c)

    800       849,400  

4.00%, 02/11/23(b)

    200       207,413  

Banco Santander Chile

   

2.70%, 01/10/25 (Call 12/10/24)(b)(c)

    600       616,260  

3.18%, 10/26/31 (Call 07/28/31)(g)

    400       399,800  
Security   Par
(000)
    Value  
Chile (continued)            

Celulosa Arauco y Constitucion SA

   

4.20%, 01/29/30 (Call 10/29/29)(b)(c)

  $ 400     $ 423,880  

4.25%, 04/30/29 (Call 01/30/29)(b)

    600       636,187  

4.50%, 08/01/24 (Call 05/01/24)

    400       425,575  

5.15%, 01/29/50 (Call 07/29/49)(b)

        400             444,130  

5.50%, 04/30/49 (Call 10/30/48)(b)

    400       458,500  

Cencosud SA

   

4.38%, 07/17/27 (Call 04/17/27)(b)

    1,200       1,271,550  

5.15%, 02/12/25 (Call 11/12/24)(b)(c)

    200       217,663  

Colbun SA

   

3.15%, 03/06/30 (Call 12/06/29)(b)

    600       602,175  

3.15%, 01/19/32 (Call 10/19/31)(g)

    400       394,000  

3.95%, 10/11/27 (Call 07/11/27)(b)

    400       426,200  

Empresa Electrica Guacolda SA, 4.56%, 04/30/25 (Call 01/30/25)(b)(c)

    400       250,375  

Empresa Nacional de Telecomunicaciones SA

   

3.05%, 09/14/32 (Call 06/14/32)(g)

    600       582,937  

4.75%, 08/01/26 (Call 05/03/26)(b)

    600       648,000  

Enel Americas SA, 4.00%, 10/25/26
(Call 07/25/26)(c)

    500       532,662  

Enel Chile SA, 4.88%, 06/12/28 (Call 03/12/28)

    800       899,200  

EnfraGen Energia Sur SA, 5.38%, 12/30/30 (Call 12/30/25)(b)

        800       767,008  

Engie Energia Chile SA, 3.40%, 01/28/30 (Call 10/28/29)(b)

    400       399,700  

Falabella SA, 3.38%, 01/15/32 (Call 10/15/31)(g)

    600             594,000  

GNL Quintero SA, 4.63%, 07/31/29(b)

    941       1,007,790  

Interchile SA, 4.50%, 06/30/56 (Call 12/30/55)(g)

      1,000       1,049,800  

Inversiones CMPC SA

   

3.00%, 04/06/31 (Call 01/06/31)(b)

    400       388,250  

3.85%, 01/13/30 (Call 10/13/29)(b)

    400       413,250  

4.38%, 04/04/27(b)

    600       650,550  

4.75%, 09/15/24 (Call 06/15/24)(b)

    400       427,188  

Inversiones CMPC SA/Cayman Islands Branch, 4.38%, 05/15/23 (Call 02/15/23)(b)(c)

    400       412,700  

Kenbourne Invest SA, 6.88%, 11/26/24 (Call 11/29/21)(b)

    400       418,000  

NagaCorp Ltd., 7.95%, 07/06/24 (Call 07/06/22)(b)

    400       399,575  

Sociedad Quimica y Minera de Chile SA, 3.50%, 09/10/51 (Call 03/10/51)(c)(g)

    600       583,209  

VTR Comunicaciones SpA, 5.13%, 01/15/28 (Call 07/15/23)(b)(c)

    400       415,575  

VTR Finance NV, 6.38%, 07/15/28
(Call 07/15/23)(b)

    600       638,250  
   

 

 

 
        21,021,777  
China — 7.5%            

Agile Group Holdings Ltd., 8.38%,
(Call 12/04/23)(b)(h)(i)

    200       116,000  

Agricultural Bank of China Ltd./Hong Kong, 0.70%, 06/17/24(b)

    200       198,176  

Agricultural Bank of China Ltd./New York, 0.85%, 01/19/24(b)

    200       199,094  

Alibaba Group Holding Ltd.

   

2.13%, 02/09/31 (Call 11/09/30)(c)

    200       191,748  

2.70%, 02/09/41 (Call 08/09/40)

    200       185,404  

3.25%, 02/09/61 (Call 08/09/60)(c)

    400       380,320  

3.40%, 12/06/27 (Call 09/06/27)

    500       529,740  

3.60%, 11/28/24 (Call 08/28/24)(c)

    400       425,200  

4.00%, 12/06/37 (Call 06/06/37)

    200       216,037  

4.20%, 12/06/47 (Call 06/06/47)

    400       443,662  

Amipeace Ltd., 2.50%, 12/05/24(b)

    600       620,394  

Baidu Inc.

   

2.38%, 08/23/31 (Call 05/23/31)(c)

    200       190,500  

3.08%, 04/07/25 (Call 03/07/25)

    400       415,352  

4.13%, 06/30/25

    200       216,037  

Bank of China Ltd., 5.00%, 11/13/24(b)

    400       437,620  

 

 

24  

2 0 2 1    H A R E S     N N U A L    E P O R T    T O    H A R E  H O L D E R S


Schedule of Investments  (continued)

October 31, 2021

  

iShares® J.P. Morgan EM Corporate Bond ETF

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
China (continued)            

Bank of China Ltd./Hong Kong

   

0.96%, 03/08/23, (3 mo. LIBOR US +
0.850%)(b)(i)

  $ 200     $ 200,848  

3.88%, 06/30/25(b)

    200       215,473  

Bank of Communications Co. Ltd., 3.80%, (Call 11/18/25)(b)(h)(i)

    600       621,937  

Bank of Communications Co. Ltd./Hong Kong, 0.97%, 05/17/23, (3 mo. LIBOR US + 0.85%)(b)(i)

        200             200,788  

Bluestar Finance Holdings Ltd., 3.88%, (Call 06/24/23)(b)(h)(i)

    200       202,160  

Bocom International Blossom Ltd.Co., 1.75%, 06/28/26(b)

    200       197,028  

Bocom Leasing Management Hong Kong Co. Ltd., 1.19%, 12/10/24, (3 mo. LIBOR US +
1.075%)(b)(i)

        400             398,700  

CCBL Cayman 1 Corp. Ltd., 1.99%, 07/21/25(b)

    200       199,620  

CCCI Treasure Ltd., 3.43%, (Call 11/21/24)(b)(h)(i)

    200       202,563  

CDBL Funding 2, 2.00%, 03/04/26(b)

    200       198,150  

Central Plaza Development Ltd., 4.65%, 01/19/26 (Call 10/19/25)(b)

    200       186,600  

Chalco HK Investment Co., 2.10%, 07/28/26 (Call 06/28/26)(b)

    200       196,122  

China Cinda 2020 I Management Ltd.

   

2.50%, 03/18/25 (Call 02/18/25)(b)

    200       198,538  

3.00%, 01/20/31 (Call 10/20/30)(b)

    200       192,225  

China Cinda Finance 2015 I Ltd., 4.25%, 04/23/25(b)

    600       631,237  

China Cinda Finance 2017 I Ltd.

   

3.88%, 02/08/23(b)

    200       204,596  

4.75%, 02/21/29(b)

    200       219,100  

China Construction Bank Corp., 4.25%, 02/27/29 (Call 02/27/24)(b)(i)

    600       634,452  

China Construction Bank Corp./Hong Kong, 1.25%, 08/04/25(b)

    400       394,532  

China Everbright Bank Co. Ltd./Hong Kong, 0.93%, 03/11/24(b)

    200       198,848  

China Everbright Bank Co. Ltd./Luxembourg, 0.83%, 09/14/24(b)

    200       198,048  

China Evergrande Group

   

7.50%, 06/28/23 (Call 11/29/21)(b)(d)(e)

    400       96,752  

8.75%, 06/28/25 (Call 11/29/21)(b)(d)(e)

    400       96,000  

10.50%, 04/11/24 (Call 04/11/22)(b)(d)(e)

    200       49,500  

China Great Wall International Holdings V Ltd., 2.38%, 08/18/30(b)

    200       184,100  

China Mengniu Dairy Co. Ltd., 1.88%, 06/17/25 (Call 05/17/25)(b)

    200       198,874  

China Minsheng Banking Corp. Ltd./Hong Kong, 1.17%, 03/09/23, (3 mo. LIBOR US +
1.050%)(b)(i)

    200       200,013  

China Overseas Finance Cayman VI Ltd.

   

5.95%, 05/08/24(b)

    400       440,200  

6.45%, 06/11/34(b)

    200       261,850  

China Overseas Finance Cayman VII Ltd., 4.25%, 04/26/23(b)

    200       207,408  

China Overseas Finance Cayman VIII Ltd., 2.75%, 03/02/30(b)

    200       196,913  

China Resources Land Ltd.

   

3.75%, (Call 12/09/24)(b)(h)(i)

    200       205,312  

4.13%, 02/26/29(b)

    200