LOGO

  AUGUST 31, 2023

 

   2023 Annual Report

 

iShares, Inc.

 

·  

iShares MSCI Brazil ETF | EWZ | NYSE Arca

·  

iShares MSCI Chile ETF | ECH | Cboe BZX

·  

iShares MSCI Israel ETF | EIS | NYSE Arca

·  

iShares MSCI South Africa ETF | EZA | NYSE Arca

·  

iShares MSCI Turkey ETF | TUR | NASDAQ


The Markets in Review

Dear Shareholder,

Despite an uncertain economic landscape during the 12-month reporting period ended August 31, 2023, the resilience of the U.S. economy in the face of ever tighter financial conditions provided an encouraging backdrop for investors. While inflation was near multi-decade highs at the beginning of the period, it declined precipitously as commodity prices dropped. Labor shortages also moderated, although wages continued to grow and unemployment rates reached the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy.

Equity returns were solid, as the durability of consumer sentiment eased investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. Most major classes of equities rose, as large-capitalization U.S. stocks and developed market equities advanced strongly. However, small-capitalization U.S. stocks and emerging market equities posted more modest gains.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market also faced inflationary headwinds, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation has been more persistent than expected, raised interest rates seven times during the 12-month period. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at its June 2023 meeting, the first time it paused its tightening in the current cycle, before again raising rates in July 2023.

Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for two pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.

While we favor an overweight position to developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on emerging market stocks in the near term as growth trends for emerging markets appear brighter. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, U.S. mortgage-backed securities, and hard-currency emerging market bonds.

Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of August 31, 2023

 

    

 

6-Month 

 

 

 

12-Month 

 

 

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

 

  14.50%   15.94%

 

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

 

  0.99   4.65

 

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

 

  4.75   17.92

 

Emerging market equities
(MSCI Emerging Markets Index)

 

  3.62   1.25

 

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

 

  2.47   4.25

 

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

 

  0.11   (4.71)

 

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

 

  0.95   (1.19)

 

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

 

  1.04   1.70

 

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

 

  4.55   7.19

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

 

 

 

2  

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


Table of Contents

 

      Page  

The Markets in Review

     2  

Annual Report:

  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     15  

Disclosure of Expenses

     15  

Schedules of Investments

     16  

Financial Statements

  

Statements of Assets and Liabilities

     33  

Statements of Operations

     35  

Statements of Changes in Net Assets

     37  

Financial Highlights

     40  

Notes to Financial Statements

     45  

Report of Independent Registered Public Accounting Firm

     54  

Important Tax Information

     55  

Board Review and Approval of Investment Advisory Contract

     56  

Supplemental Information

     58  

Director and Officer Information

     60  

General Information

     62  

Glossary of Terms Used in this Report

     63  

 

 

 


Market Overview

 

iShares, Inc.

Global Market Overview

Global equity markets advanced during the 12 months ended August 31, 2023 (“reporting period”), supported by continued economic growth and moderating inflation. The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 13.95% in U.S. dollar terms for the reporting period. Despite concerns about the impact of higher interest rates and rising prices, the global economy continued to grow, albeit at a slower pace than during the initial post-coronavirus pandemic recovery. Inflation began to subside in most regions of the world, and lower energy prices reduced pressure on consumers, leading consumer and business sentiment to improve. While the Russian invasion of Ukraine continued to disrupt trade in Europe and elsewhere, market adaptation lessened the economic impact of the ongoing war. The prices of several key commodities, including oil, natural gas, and wheat, either stabilized or declined during the reporting period, easing pressure on the world’s economies.

The U.S. Federal Reserve (“Fed”) tightened monetary policy rapidly, raising short-term interest rates seven times over the course of the reporting period. The pace of tightening decelerated as the Fed twice lowered the increment of increase before pausing entirely in June 2023, the first time it declined to take action since the tightening cycle began. However, the Fed then raised interest rates again at its July 2023 meeting and stated that it would continue to monitor economic data. The Fed also continued to decrease the size of its balance sheet by reducing the store of U.S. Treasuries it had accumulated to stabilize markets in the early phases of the pandemic.

Despite the tightening financial conditions, the U.S. economy demonstrated continued strength, and U.S. equities advanced. The economy returned to growth in the third quarter of 2022 and showed robust, if slightly slower, growth thereafter. Consumers powered the economy, increasing their spending in both nominal and inflation-adjusted terms. A strong labor market bolstered spending, as unemployment remained low, and the number of employed persons reached an all-time high. Tightness in the labor market drove higher wages, although wage growth slowed as the reporting period continued.

European stocks outpaced their counterparts in most other regions of the globe, advancing strongly for the reporting period despite modest economic growth. European stocks benefited from a solid recovery following the early phases of the war in Ukraine. While the conflict disrupted critical natural gas supplies, new sources were secured and prices declined, while a warm winter helped moderate consumption. The European Central Bank (“ECB”) responded to the highest inflation since the introduction of the euro by raising interest rates eight times and beginning to reduce the size of its debt holdings.

Stocks in the Asia-Pacific region gained, albeit at a slower pace than other regions of the world. Japan returned to growth in the fourth quarter of 2022 and first half of 2023, as strong business investment and exports helped boost the economy and support Japanese equities. However, Chinese stocks were negatively impacted by slowing economic growth. While investors were initially optimistic following China’s lifting of several pandemic-related lockdowns in December 2022, subsequent performance disappointed, and tensions with the U.S. increased. Emerging market stocks advanced modestly, as the resilient global economic environment reassured investors. The declining value of the U.S. dollar relative to many other currencies and the slowing pace of the Fed’s interest rate increases also supported emerging market stocks.

 

 

4  

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Fund Summary  as of August 31, 2023

 

   iShares® MSCI Brazil ETF

 

Investment Objective

The iShares MSCI Brazil ETF (the “Fund”) seeks to track the investment results of an index composed of Brazilian equities, as represented by the MSCI Brazil 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    11.49     5.27     1.04       11.49     29.28     10.89

Fund Market

    11.46       4.99       1.07         11.46       27.59       11.25  

Index

    11.77       6.10       1.75               11.77       34.43       18.99  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

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

 

Expense Example

 

  Actual            Hypothetical 5% Return               
     

Beginning
Account Value
(03/01/23
 
 
   

Ending
Account Value
(08/31/23
 
 
    

Expenses  
Paid During  
the Period(a)
 
 
 
            

Beginning
Account Value
(03/01/23
 
 
   

Ending
Account Value
(08/31/23
 
 
   

Expenses  
Paid During  
the Period(a)
 
 
 
            

Annualized
Expense
Ratio
 
 
 
    $ 1,000.00     $ 1,155.90      $ 3.21                $ 1,000.00     $ 1,022.20     $ 3.01                  0.59

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D  S U M M A R Y

  5


Fund Summary  as of August 31, 2023 (continued)

 

   iShares® MSCI Brazil ETF

 

Portfolio Management Commentary

Brazilian stocks posted robust gains for the reporting period. After contracting in the fourth quarter of 2022, the country’s economy grew faster than anticipated in the first quarter of 2023, driven by a surge in agricultural output. The Brazilian real strengthened notably against the U.S. dollar, and low unemployment and an easing in the inflation rate paved the way for Brazil’s central bank to lower interest rates for the first time in three years.

The energy sector contributed the most to the Index’s return. The integrated oil and gas industry benefited from positive investor reaction to government policies introducing flexibility in the pricing of gasoline and diesel. Companies in the industry reiterated plans to increase investment in renewable energy initiatives over the next five years while still expanding oil production, assuaging investor concerns. In the second quarter of 2023, a reduction in oil prices curbed profits for oil companies in Brazil, but to a lesser extent than in other countries.

The financials sector also contributed meaningfully to the Index’s performance, led by banks. Growth in deposits and operating revenues supported banks’ balance sheets, as did higher loan volumes. In the financial exchanges and data industry, stock and bond exchanges benefited from notable growth in the volume of both traded equities and fixed-income issuance. Strong revenue growth in investment banking supported companies in the diversified capital markets industry.

On the downside, the consumer discretionary sector detracted, as a revelation of accounting fraud at an e-commerce business dampened investor sentiment for the internet and direct marketing retail industry. Another area of weakness was the consumer staples sector, where high levels of consumer debt and lower global commodities prices pressured profits in the food, beverage, and tobacco industry.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector  

Percent of  

 

Total Investments(a)

 

Financials

    25.9%  

Energy

    19.5    

Materials

    18.8    

Industrials

    9.9    

Utilities

    9.4    

Consumer Staples

    8.2    

Health Care

    3.0    

Consumer Discretionary

    2.5    

Communication Services

    2.1    

Information Technology

    0.7    

 

  (a) 

Excludes money market funds.

 
TEN LARGEST HOLDINGS

 

   
Security  

Percent of  

 

Total Investments(a)

 

Vale SA

    13.0%  

Petroleo Brasileiro SA (Preferred)

    8.4    

Itau Unibanco Holding SA (Preferred)

    7.4    

Petroleo Brasileiro SA

    7.1    

Banco Bradesco SA (Preferred)

    4.3    

B3 SA - Brasil, Bolsa, Balcao

    4.2    

WEG SA

    3.6    

Ambev SA

    3.5    

Localiza Rent a Car SA

    3.5    

Itausa SA (Preferred)

    2.5    

 

 

6  

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Fund Summary  as of August 31, 2023

 

   iShares® MSCI Chile ETF

 

Investment Objective

The iShares MSCI Chile ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Chilean equities, as represented by the MSCI Chile IMI 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    9.68 %(a)      (4.53 )%      (2.27 )%        9.68 %(a)      (20.69 )%      (20.50 )% 

Fund Market

    8.28       (4.52     (2.25       8.28       (20.64     (20.39

Index

    8.27       (4.65     (2.31             8.27       (21.20     (20.83

 

  (a) 

The NAV total return presented in the table for the one-year period differs from the same period return disclosed in the financial highlights. The total return in the financial highlights is calculated in the same manner but differs due to certain adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

 

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

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

 

Expense Example

 

  Actual            Hypothetical 5% Return               
     

Beginning
Account Value
(03/01/23
 
 
   

Ending
Account Value
(08/31/23
 
 
    

Expenses  
Paid During  
the Period(a)
 
 
 
            

Beginning
Account Value
(03/01/23
 
 
   

Ending
Account Value
(08/31/23
 
 
   

Expenses  
Paid During  
the Period(a)
 
 
 
            

Annualized
Expense
Ratio
 
 
 
    $ 1,000.00     $ 1,041.30      $ 3.04                $ 1,000.00     $ 1,022.20     $ 3.01                  0.59

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D  S U M M A R Y

  7


Fund Summary  as of August 31, 2023 (continued)

 

   iShares® MSCI Chile ETF

 

Portfolio Management Commentary

Stocks in Chile advanced during the reporting period as economic growth resumed, and the country avoided a recession. The economy contracted in the first three quarters of 2022 as the Central Bank of Chile aggressively increased interest rates to address the highest inflation in almost three decades. It maintained its policy rate near a two-decade high before lowering it late in the reporting period after inflation moderated considerably. Chilean stocks rose steadily after the central bank stopped raising interest rates in late 2022. The Chilean government raised price projections for copper, which accounts for almost half of the country’s exports, twice in four months, further supporting stock prices. In addition, investors reacted favorably as conservatives gained control of a government council in charge of drafting a new constitution.

The utilities sector contributed the most to the Index’s return. Electric utilities companies posted higher revenue and improved profitability. A leading electrical utilities company, benefiting from Chile’s massive expansion of wind and solar power and higher prices, doubled its power generation capacity from renewable sources. Water utilities companies also contributed amid increased earnings, despite various weather challenges, including water shortages and heavy rain that presented service challenges.

The consumer staples sector also contributed to the Index’s performance. Within the consumer staples distribution and retail industry, a large company with operations throughout the Americas exhibited consistent sales growth, partly due to increased market share and business consolidation.

The materials and industrials sectors detracted from the Index’s return. The world’s second-largest producer of lithium for electric batteries straddles both sectors, as it also manufactures batteries and related electrical equipment. Stock in the firm, also a leading producer of industrial chemicals, fell amid declining lithium prices, which pressured earnings.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector  

Percent of  

 

Total Investments(a)

 

Financials

    24.6%  

Industrials

    22.4    

Utilities

    19.3    

Consumer Staples

    14.0    

Materials

    6.1    

Energy

    4.6    

Consumer Discretionary

    3.8    

Real Estate

    3.3    

Communication Services

    1.9    

 

  (a) 

Excludes money market funds.

 
TEN LARGEST HOLDINGS

 

   
Security  

Percent of  

 

Total Investments(a)

 

Sociedad Quimica y Minera de Chile SA (Preferred), Class B

    20.1%  

Banco de Chile

    11.2    

Enel Americas SA

    5.8    

Banco Santander Chile

    4.7    

Empresas COPEC SA

    4.6    

Cencosud SA

    4.6    

Banco de Credito e Inversiones SA

    4.5    

Empresas CMPC SA

    4.5    

Enel Chile SA

    4.2    

Falabella SA

    3.8    

 

 

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Fund Summary  as of August 31, 2023

 

   iShares® MSCI Israel ETF

 

Investment Objective

The iShares MSCI Israel ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Israeli equities, as represented by the MSCI Israel Capped Investable Market 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

    (15.74 )%      0.65     4.18       (15.74 )%      3.28     50.61

Fund Market

    (15.61     0.71       4.32         (15.61     3.62       52.61  

Index

    (15.94     1.14       4.67               (15.94     5.83       57.78  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

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

 

Expense Example

 

  Actual            Hypothetical 5% Return               
     

Beginning
Account Value
(03/01/23
 
 
   

Ending
Account Value
(08/31/23
 
 
    

Expenses  
Paid During  
the Period(a)
 
 
 
            

Beginning
Account Value
(03/01/23
 
 
   

Ending
Account Value
(08/31/23
 
 
   

Expenses  
Paid During  
the Period(a)
 
 
 
            

Annualized
Expense
Ratio
 
 
 
    $ 1,000.00     $ 1,028.00      $ 3.02                $ 1,000.00     $ 1,022.20     $ 3.01                  0.59

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D  S U M M A R Y

  9


Fund Summary  as of August 31, 2023 (continued)

 

   iShares® MSCI Israel ETF

 

Portfolio Management Commentary

Israeli stocks declined substantially for the reporting period amid political turmoil and economic challenges. A November 2022 election brought a change in government, and the new Prime Minister proposed a controversial reform to the powers of Israel’s Supreme Court. This proposal sparked large protests and economic disruption, as some business leaders warned about the impact on Israel’s economy. While the plan was suspended in response to the protests in March 2023, it was later reintroduced and passed in July 2023, driving uncertainty about Israel’s political stability. The declining value of the Israeli shekel relative to the U.S. dollar also weighed on Israeli stocks in U.S. dollar terms, as unrest surrounding the judicial reform negatively impacted Israel’s currency.

Israeli financials stocks were the largest detractors from the Index’s return amid substantial declines in the banking industry. A large Israeli bank’s investment in a U.S. bank declined sharply in the wake of a series of regional bank failures, negatively impacting earnings. While higher interest rates generally benefited Israeli banks, near the end of the reporting period the Bank of Israel declined to raise interest rates for the first time since the tightening cycle began in April 2022.

The real estate sector also detracted from the Index’s performance, particularly the real estate management and development industry. The combination of high real estate prices and rising interest rates led to a softening of real estate activity, and total transactions declined substantially. High interest rates also pressured the construction and engineering industry in the industrials sector, as mortgage lending weakened. Building starts declined notably, and the lower value of the Israeli shekel drove the cost of building materials, which are often imported, significantly higher.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector  

Percent of  

 

Total Investments(a)

 

Information Technology

    32.4%  

Financials

    24.4    

Real Estate

    8.5    

Health Care

    8.5    

Industrials

    8.1    

Consumer Discretionary

    4.6    

Communication Services

    3.3    

Materials

    3.3    

Utilities

    2.6    

Energy

    2.4    

Consumer Staples

    1.9    

 

  (a) 

Excludes money market funds.

 
TEN LARGEST HOLDINGS

 

   
Security  

Percent of  

 

Total Investments(a)

 

Check Point Software Technologies Ltd

    7.2%  

Nice Ltd

    7.1    

Bank Leumi Le-Israel BM

    6.8    

Teva Pharmaceutical Industries Ltd

    6.3    

Bank Hapoalim BM

    6.0    

CyberArk Software Ltd

    4.0    

Israel Discount Bank Ltd., Class A

    3.5    

Wix.com Ltd

    3.0    

Elbit Systems Ltd

    3.0    

Mizrahi Tefahot Bank Ltd

    2.9    

 

 

10  

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Fund Summary  as of August 31, 2023

 

   iShares® MSCI Chile ETF

 

Investment Objective

The iShares MSCI South Africa ETF (the “Fund”) seeks to track the investment results of an index composed of South African equities, as represented by the MSCI South Africa 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    1.62     (1.16 )%      0.08       1.62     (5.66 )%      0.79

Fund Market

    1.40       (1.25     0.12         1.40       (6.10     1.18  

Index

    0.69       (0.87     0.54               0.69       (4.29     5.54  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

Index performance through August 31, 2017 reflects the performance of the MSCI South Africa Index. Index performance beginning on September 1, 2017 reflects the performance of the MSCI South Africa 25/50 Index.

 

 

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

 

Expense Example

 

  Actual            Hypothetical 5% Return               
     

Beginning
Account Value
(03/01/23
 
 
   

Ending
Account Value
(08/31/23
 
 
    

Expenses  
Paid During  
the Period(a)
 
 
 
            

Beginning
Account Value
(03/01/23
 
 
   

Ending
Account Value
(08/31/23
 
 
   

Expenses  
Paid During  
the Period(a)
 
 
 
            

Annualized
Expense
Ratio
 
 
 
    $ 1,000.00     $ 975.80      $ 2.94                $ 1,000.00     $ 1,022.20     $ 3.01                  0.59

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D  S U M M A R Y

  11


Fund Summary  as of August 31, 2023 (continued)

 

   iShares® MSCI South Africa ETF

 

Portfolio Management Commentary

Stocks in South Africa advanced marginally for the reporting period as the nation’s economy expanded despite high inflation and rising interest rates. Stocks rallied in late 2022 to an all-time high amid optimism regarding China’s reopening from coronavirus restrictions. Meanwhile, the South African Reserve Bank raised interest rates five times, reaching a 14-year high. Late in the reporting period, inflation moderated to within the central bank’s target range of 3 – 6%, and the central bank paused interest rate increases. That helped stocks rebound from early 2023, when they fell amid global banking turmoil and recession concerns tied to widespread power outages. The declining value of the South African rand relative to the U.S. dollar also weighed on South African stocks in U.S. dollar terms.

The consumer discretionary sector contributed the most to the Index’s return. The internet and direct marketing retail industry advanced, as a large online retailer and technology investment company benefited from its investment in a major Chinese technology and gaming company, which gained amid China’s post-pandemic reopening.

The financials sector also contributed to the Index’s return. Rising net interest income — the difference between what banks receive from loans and what they pay on deposits — supported the diversified financial services industry. The life and health insurance industry also advanced, reflecting higher cash flow, rising sales, and strong new business volumes.

On the downside, the materials sector detracted the most from the Index’s return. The diversified chemicals industry declined amid higher input costs from supply chain disruptions, while weaker global growth reduced chemical prices. The metals and mining industry declined amid rapidly falling prices for rare earth metals used in catalytic converters to reduce pollution. The communication services sector also detracted, as profit growth slowed in the wireless telecommunications industry.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector  

Percent of  

 

Total Investments(a)

 

Financials

    37.1%  

Materials

    21.3    

Consumer Discretionary

    18.7    

Consumer Staples

    8.7    

Communication Services

    6.9    

Real Estate

    2.4    

Industrials

    2.1    

Health Care

    1.7    

Energy

    1.1    
TEN LARGEST HOLDINGS

 

   
Security  

Percent of  

 

Total Investments(a)

 

Naspers Ltd., Class N

    16.1%  

FirstRand Ltd

    9.5    

Standard Bank Group Ltd

    6.6    

Gold Fields Ltd

    5.5    

MTN Group Ltd

    5.2    

Absa Group Ltd

    3.9    

Bid Corp. Ltd

    3.6    

Sasol Ltd

    3.6    

Capitec Bank Holdings Ltd

    3.5    

AngloGold Ashanti Ltd

    3.5    

 

  (a) 

Excludes money market funds.

 

 

 

12  

2 0 2 3  I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Fund Summary  as of August 31, 2023

 

   iShares® MSCI Turkey ETF

 

Investment Objective

The iShares MSCI Turkey ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Turkish equities, as represented by the MSCI Turkey IMI 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    72.12     16.70     0.03       72.12     116.47     0.30

Fund Market

    73.46       16.65       0.18         73.46       115.98       1.86  

Index

    72.73       17.04       0.33               72.73       119.58       3.30  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

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

 

 

Index performance through May 28, 2019 reflects the performance of MSCI Turkey Investable Market Index. Index performance beginning on May 29, 2019 reflects the performance of the MSCI Turkey IMI 25/50 Index.

 

 

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

 

Expense Example

 

  Actual            Hypothetical 5% Return               
     

Beginning
Account Value
(03/01/23
 
 
   

Ending
Account Value
(08/31/23
 
 
    

Expenses  
Paid During  
the Period(a)
 
 
 
            

Beginning
Account Value
(03/01/23
 
 
   

Ending
Account Value
(08/31/23
 
 
   

Expenses  
Paid During  
the Period(a)
 
 
 
            

Annualized
Expense
Ratio
 
 
 
    $ 1,000.00     $ 1,085.50      $ 3.10                $ 1,000.00     $ 1,022.20     $ 3.01                  0.59

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D  S U M M A R Y

  13


Fund Summary  as of August 31, 2023 (continued)

 

   iShares® MSCI Turkey ETF

 

Portfolio Management Commentary

Turkish stocks advanced sharply for the reporting period, as investors were encouraged by signs of improvement in Turkish monetary and fiscal policy. Long beset by an inflation rate significantly higher than most other countries, the Central Bank of the Republic of Turkey took the unorthodox approach of lowering interest rates early in the reporting period, even as inflation exceeded 50%. However, following elections in May 2023, President Erdogan installed new officials in key finance posts in a signal that Turkey was committed to a more traditional approach to economic policy. Turkish stocks surged in response, and inflows from international investors reached the highest level in nearly three years. The Turkish central bank reversed its policy of interest rate decreases and began raising interest rates again in June 2023, followed by two additional increases. Turkey also relaxed its policy to support the value of the Turkish lira, which declined substantially relative to the U.S. dollar for the reporting period. While the currency’s weakness reduced the value of Turkish equities in U.S. dollar terms, it also made Turkish stocks more attractive to foreign investors.

The Turkish industrials sector contributed the most to the Index’s return, led by the industrial conglomerates industry. Strong automotive demand domestically combined with rising exports benefited auto manufacturing operations in the industry. Lending activities also bolstered the industry’s revenues, as rising loans, deposits, and substantial fee growth drove significantly higher income.

The financials sector was a source of strength, particularly the banking industry. Turkish banks benefited from the return to more conventional fiscal and monetary policies and the end of rules related to special foreign exchange-protected bank accounts. The consumer staples sector also contributed, as food retailers gained amid solid consumer spending.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector  

Percent of  

 

Total Investments(a)

 

Industrials

    30.0%  

Materials

    16.1    

Financials

    15.5    

Consumer Staples

    11.4    

Consumer Discretionary

    9.8    

Energy

    6.9    

Communication Services

    3.8    

Utilities

    3.2    

Real Estate

    1.6    

Health Care

    1.3    

Information Technology

    0.4    
TEN LARGEST HOLDINGS

 

   
Security  

Percent of  

 

Total Investments(a)

 

Turkiye Petrol Rafinerileri AS

    6.9%  

Turk Hava Yollari AO

    6.8    

BIM Birlesik Magazalar AS

    5.8    

KOC Holding AS

    5.5    

Akbank TAS

    4.6    

Turkcell Iletisim Hizmetleri AS

    3.8    

Turkiye Is Bankasi AS, Class C

    3.7    

Turkiye Sise ve Cam Fabrikalari AS

    3.6    

Ford Otomotiv Sanayi AS

    3.4    

Haci Omer Sabanci Holding AS

    3.1    

 

  (a) 

Excludes money market funds.

 

 

 

14  

2 0 2 3  I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


About Fund Performance

 

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

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

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

Disclosure of Expenses

Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.

The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

 

 

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

  15


Schedule of Investments

August 31, 2023

  

iShares® MSCI Brazil ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Banks — 4.1%  

Banco Bradesco SA

    18,526,160     $ 49,532,286  

Banco do Brasil SA

    13,062,012        124,235,572  

Banco Santander Brasil SA

    6,649,625       36,403,375  
   

 

 

 
      210,171,233  
Beverages 3.5%            

Ambev SA

    63,498,620       177,466,080  
   

 

 

 
Broadline Retail 0.5%            

Magazine Luiza SA(a)

    43,319,922       24,144,139  
   

 

 

 
Capital Markets 6.0%            

B3 SA - Brasil, Bolsa, Balcao

    79,590,356       207,813,593  

Banco BTG Pactual SA

    15,043,581       98,638,963  
   

 

 

 
      306,452,556  
Consumer Staples Distribution & Retail 2.9%        

Atacadao SA

    8,969,338       18,583,295  

Raia Drogasil SA

    17,554,024       97,411,088  

Sendas Distribuidora SA

    13,732,295       32,195,141  
   

 

 

 
      148,189,524  
Containers & Packaging 1.0%            

Klabin SA

    11,773,762       54,113,109  
   

 

 

 
Diversified Telecommunication Services 1.2%        

Telefonica Brasil SA

    7,422,362       61,977,296  
   

 

 

 
Electric Utilities 5.1%            

Centrais Eletricas Brasileiras SA

    15,603,923       111,104,356  

CPFL Energia SA

    3,210,458       22,139,748  

Energisa SA

    2,483,111       23,115,965  

Equatorial Energia SA

    16,138,658       103,179,474  
   

 

 

 
      259,539,543  
Electrical Equipment 3.5%            

WEG SA

    24,637,502       178,510,631  
   

 

 

 
Food Products 0.9%            

JBS SA

    12,183,542       45,269,570  
   

 

 

 
Ground Transportation 5.2%            

Localiza Rent a Car SA

    13,504,939       172,491,674  

Rumo SA

    20,353,557       91,861,350  
   

 

 

 
      264,353,024  
Health Care Providers & Services 1.9%            

Hapvida Participacoes e Investimentos
SA(a)(b)

    67,615,637       58,166,338  

Rede D’Or Sao Luiz SA(b)

    6,851,617       39,653,748  
   

 

 

 
      97,820,086  
Independent Power and Renewable Electricity Producers  1.0%  

Eneva SA(a)

    8,386,866       20,187,890  

Engie Brasil Energia SA

    3,866,087       32,883,268  
   

 

 

 
      53,071,158  
Insurance 1.3%            

BB Seguridade Participacoes SA

    11,102,743       68,113,475  
   

 

 

 
Metals & Mining 13.2%            

Cia. Siderurgica Nacional SA

    10,992,125       26,880,713  

Vale SA

    49,633,544       652,285,628  
   

 

 

 
      679,166,341  
Oil, Gas & Consumable Fuels 10.7%            

Cosan SA

    16,631,463       58,840,931  

Petroleo Brasileiro SA

    51,038,068       355,984,869  
Security   Shares      Value  
Oil, Gas & Consumable Fuels (continued)  

PRIO SA(a)

    9,504,326      $ 89,092,560  

Ultrapar Participacoes SA

    12,790,073        46,903,348  
    

 

 

 
       550,821,708  
Paper & Forest Products 2.2%             

Suzano SA

    11,324,507        114,684,631  
    

 

 

 
Personal Care Products 0.8%             

Natura & Co. Holding SA(a)

    13,417,370        41,129,568  
    

 

 

 
Pharmaceuticals 1.0%             

Hypera SA

    6,528,562        51,402,678  
    

 

 

 
Software 0.7%             

TOTVS SA

    6,016,927        33,705,143  
    

 

 

 
Specialty Retail 2.0%             

Lojas Renner SA

    15,157,254        49,064,687  

Vibra Energia SA

    14,493,829        54,029,358  
    

 

 

 
       103,094,045  
Transportation Infrastructure 1.0%         

CCR SA

    19,951,925        50,201,631  
    

 

 

 
Water Utilities 1.3%             

Cia. de Saneamento Basico do Estado de Sao Paulo

    5,627,149        65,816,070  
    

 

 

 
Wireless Telecommunication Services  0.9%         

Tim SA

    15,285,872        44,480,450  
    

 

 

 

Total Common Stocks 71.9%
(Cost: $2,422,064,214)

 

     3,683,693,689  
    

 

 

 

Preferred Stocks

 

Banks 13.9%  

Banco Bradesco SA, Preference Shares, NVS

    71,938,025        217,177,426  

Itau Unibanco Holding SA, Preference Shares, NVS

    66,759,693        369,789,962  

Itausa SA, Preference Shares, NVS

    67,005,112        125,024,431  
    

 

 

 
       711,991,819  
Electric Utilities 1.8%  

Centrais Eletricas Brasileiras SA, Class B, Preference Shares, NVS

    4,365,636        34,152,470  

Cia. Energetica de Minas Gerais, Preference Shares, NVS

    22,795,733        56,758,593  
    

 

 

 
       90,911,063  
Metals & Mining 1.8%             

Gerdau SA, Preference Shares, NVS

    17,851,793        93,187,437  
    

 

 

 
Oil, Gas & Consumable Fuels 8.2%  

Petroleo Brasileiro SA, Preference Shares, NVS

    65,495,915        422,439,096  
    

 

 

 

Total Preferred Stocks 25.7%
(Cost: $874,075,561)

 

     1,318,529,415  
    

 

 

 

Rights

 

Banks 0.0%  

Itausa SA (Expires 09/29/23, Strike Price BRL 6.50)(a)

    929,472        519,914  
    

 

 

 

Total Rights 0.0%
(Cost: $0)

 

     519,914  
    

 

 

 

Total Long-Term Investments 97.6%
(Cost: $3,296,139,775)

 

     5,002,743,018  
    

 

 

 

 

 

16  

2 0 2 3  I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Brazil ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Short-Term Securities            
Money Market Funds — 0.2%            

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(d)

    12,030,000     $ 12,030,000  
   

 

 

 

Total Short-Term Securities — 0.2%
(Cost: $12,030,000)

 

    12,030,000  
   

 

 

 

Total Investments — 97.8%
(Cost: $3,308,169,775)

 

    5,014,773,018  
Other Assets Less Liabilities — 2.2%         111,847,682  
   

 

 

 
Net Assets — 100.0%         $ 5,126,620,700  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
  Affiliated Issuer   Value at
08/31/22
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
   

Change in
Unrealized
Appreciation

(Depreciation)

    Value at
08/31/23
    Shares
Held at
08/31/23
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

        
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    $6,880,000       $5,150,000 (a)    $     $     $       $12,030,000       12,030,000       $606,830     $ 11     
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

    

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

Long Contracts

           

Bclear MSCI Brazil Index

     2,156        09/15/23        $116,977      $ (2,209,504
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Liabilities — Derivative Financial Instruments

 

                 

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 2,209,504      $      $      $      $ 2,209,504  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

 

 

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

  17


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Brazil ETF

 

For the period ended August 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

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

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ 8,264,127      $      $      $      $ 8,264,127  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 3,349,849      $      $      $      $ 3,349,849  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 92,316,322   

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1            Level 2            Level 3            Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 3,683,693,689            $      —            $      —            $ 3,683,693,689  

Preferred Stocks

     1,318,529,415                            1,318,529,415  

Rights

     519,914                            519,914  

Short-Term Securities

                 

Money Market Funds

     12,030,000                            12,030,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 5,014,773,018        $        $        $ 5,014,773,018  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Liabilities

                 

Equity Contracts

   $ (2,209,504      $        $        $ (2,209,504
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

18  

2 0 2 3  I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments

August 31, 2023

  

iShares® MSCI Chile ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks            
Banks — 23.7%            

Banco de Chile

    638,292,272     $ 69,626,576  

Banco de Credito e Inversiones SA

    968,554       27,863,827  

Banco Itau Chile SA, NVS

    1,120,407       12,313,681  

Banco Santander Chile

    605,496,829       28,976,407  

Grupo Security SA

    32,638,954       8,351,873  
   

 

 

 
      147,132,364  
Beverages — 4.7%            

Cia. Cervecerias Unidas SA

    2,270,466       16,780,194  

Vina Concha y Toro SA

    9,969,233       12,622,835  
   

 

 

 
      29,403,029  
Broadline Retail — 3.8%            

Falabella SA

    9,673,350       23,828,098  
   

 

 

 
Capital Markets — 0.9%            

Sociedad de Inversiones Oro Blanco SA

    677,407,665       5,442,685  
   

 

 

 
Consumer Staples Distribution & Retail — 6.3%        

Cencosud SA

    13,177,958       28,208,727  

SMU SA

    60,029,251       11,160,013  
   

 

 

 
      39,368,740  
Electric Utilities — 11.7%            

Enel Americas SA(a)

    301,510,928       35,831,974  

Enel Chile SA

    388,983,099       26,211,584  

Engie Energia Chile SA(a)

    10,835,488       10,675,796  
   

 

 

 
      72,719,354  
Independent Power and Renewable Electricity Producers — 3.4%  

Colbun SA

    135,736,504       21,295,872  
   

 

 

 
Marine Transportation — 2.3%            

Cia. Sud Americana de Vapores SA

    216,784,540       14,468,152  
   

 

 

 
Metals & Mining — 1.7%            

CAP SA

    1,450,783       10,210,011  
   

 

 

 
Oil, Gas & Consumable Fuels — 4.6%            

Empresas COPEC SA

    3,917,921       28,298,789  
   

 

 

 
Security   Shares      Value  
Paper & Forest Products — 4.5%             

Empresas CMPC SA

    15,203,688      $ 27,605,296  
    

 

 

 
Real Estate Management & Development — 3.3%         

Parque Arauco SA

    10,905,855        16,181,648  

Plaza SA

    2,614,394        4,026,319  
    

 

 

 
       20,207,967  
Water Utilities — 4.1%             

Aguas Andinas SA, Class A

    49,007,434        16,726,787  

Inversiones Aguas Metropolitanas SA

    11,087,630        8,999,478  
    

 

 

 
       25,726,265  
Wireless Telecommunication Services — 1.9%         

Empresa Nacional de Telecomunicaciones SA

    3,090,980        11,583,131  
    

 

 

 

Total Common Stocks — 76.9%
(Cost: $434,320,908)

 

     477,289,753  
    

 

 

 
Preferred Stocks             
Beverages — 2.8%             

Embotelladora Andina SA, Class B, Preference Shares, NVS

    7,039,148        17,751,337  
    

 

 

 
Electrical Equipment — 20.0%             

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

    2,004,655        124,149,811  
    

 

 

 

Total Preferred Stocks — 22.8%
(Cost: $113,795,470)

 

     141,901,148  
    

 

 

 

Total Investments — 99.7%
(Cost: $548,116,378)

 

     619,190,901  
Other Assets Less Liabilities — 0.3%          1,818,762  
    

 

 

 
Net Assets — 100.0%          $621,009,663  
    

 

 

 

(a)   Non-income producing security.

    

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
08/31/22
     Purchases
at Cost
     Proceeds
from Sale
     Net Realized
Gain (Loss)
    

Change in
Unrealized
Appreciation

(Depreciation)

     Value at
08/31/23
     Shares
Held at
08/31/23
     Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

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

   $      $ 0 (b)     $      $      $      $             $ 47,851      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

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

 
  (b) 

Represents net amount purchased (sold).

 

 

 

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

  19


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Chile ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

Long Contracts

           

MSCI Emerging Markets Index

     30        09/15/23      $ 1,469      $ (63,479
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 63,479      $      $      $      $ 63,479  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

For the period ended August 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

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

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ (118,673    $      $      $      $ (118,673
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (30,716    $      $      $      $ (30,716
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 1,701,125   

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1             Level 2             Level 3             Total  

 

 

Assets

                    

Investments

                    

Long-Term Investments

                    

Common Stocks

     $477,289,753         $     —             $     —               $477,289,753  

Preferred Stocks

     141,901,148                                   141,901,148  
  

 

 

       

 

 

       

 

 

       

 

 

 
     $619,190,901         $         $           $619,190,901  
  

 

 

       

 

 

       

 

 

       

 

 

 

 

 

20  

2 0 2 3  I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Chile ETF

 

Fair Value Hierarchy as of Period End (continued)

 

               
      Level 1              Level 2              Level 3              Total  

Derivative Financial Instruments(a)

                    

Liabilities

                    

Equity Contracts

   $   (63,479       $     —         $     —         $   (63,479
  

 

 

       

 

 

       

 

 

       

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  21


Schedule of Investments

August 31, 2023

  

iShares® MSCI Israel ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 3.0%  

Elbit Systems Ltd.

    21,655     $ 4,250,287  
   

 

 

 
Banks — 20.9%            

Bank Hapoalim BM

    1,033,905       8,559,850  

Bank Leumi Le-Israel BM

    1,249,148       9,696,532  

FIBI Holdings Ltd.

    14,426       627,725  

First International Bank Of Israel Ltd. (The)

    44,909       1,815,931  

Israel Discount Bank Ltd., Class A

    1,006,728       5,035,036  

Mizrahi Tefahot Bank Ltd.

    125,680       4,132,407  
   

 

 

 
       29,867,481  
Broadline Retail — 2.0%            

Global-e Online Ltd.(a)

    73,522       2,913,677  
   

 

 

 
Capital Markets — 0.3%            

Altshuler Shaham Penn Ltd.

    57,941       92,955  

Tel Aviv Stock Exchange Ltd.(a)

    75,948       398,862  
   

 

 

 
      491,817  
Chemicals — 3.2%            

ICL Group Ltd.

    629,595       3,762,337  

Israel Corp Ltd.

    3,134       869,623  
   

 

 

 
      4,631,960  
Communications Equipment — 0.6%            

Ituran Location and Control Ltd.

    12,274       371,657  

Radware Ltd.(a)

    32,096       554,619  
   

 

 

 
      926,276  
Construction & Engineering — 2.2%            

Ashtrom Group Ltd.(b)

    37,072       508,355  

Elco Ltd.

    7,732       249,303  

Electra Ltd./Israel

    1,714       663,181  

Kvutzat Acro Ltd., NVS

    18,731       190,804  

Shapir Engineering and Industry Ltd.

    116,299       798,055  

Shikun & Binui Ltd.(a)

    267,068       668,090  
   

 

 

 
      3,077,788  
Consumer Finance — 0.5%            

Isracard Ltd.

    162,966       660,667  
   

 

 

 
Consumer Staples Distribution & Retail — 1.1%        

M Yochananof & Sons Ltd.

    4,127       169,505  

Rami Levy Chain Stores Hashikma Marketing 2006 Ltd.

    7,287       421,183  

Shufersal Ltd.(a)

    216,209       1,005,345  
   

 

 

 
      1,596,033  
Distributors — 0.1%            

Tadiran Group Ltd.

    2,446       173,125  
   

 

 

 
Diversified REITs — 0.7%            

Reit 1 Ltd.

    157,850       673,214  

Sella Capital Real Estate Ltd.

    177,819       373,192  
   

 

 

 
      1,046,406  
Diversified Telecommunication Services — 1.6%        

Bezeq The Israeli Telecommunication Corp. Ltd.

    1,688,748       2,285,711  
   

 

 

 
Electronic Equipment, Instruments & Components — 0.3%  

Innoviz Technologies Ltd.(a)(b)

    105,594       241,810  

Nayax Ltd.(a)

    6,705       150,920  
   

 

 

 
      392,730  
Food Products — 0.7%            

Mehadrin Ltd.(a)

    0       23  
Security   Shares     Value  
Food Products (continued)            

Neto Malinda Trading Ltd.(a)

    9,185     $ 128,221  

Strauss Group Ltd.(a)

    42,674       925,950  
   

 

 

 
      1,054,194  
Health Care Equipment & Supplies — 2.0%            

Inmode Ltd.(a)

    60,846       2,378,470  

Nano-X Imaging Ltd.(a)(b)

    40,395       336,289  

Sisram Medical Ltd.(c)

    112,000       94,055  
   

 

 

 
       2,808,814  
Hotels, Restaurants & Leisure — 0.6%            

Fattal Holdings 1998 Ltd.(a)

    6,015       589,201  

NEOGAMES SA(a)

    10,948       293,406  
   

 

 

 
      882,607  
Household Durables — 0.7%            

Azorim-Investment Development & Construction Co. Ltd.(a)

    60,028       183,796  

Danya Cebus Ltd.

    6,361       167,336  

Electra Consumer Products 1970 Ltd.(b)

    9,658       211,320  

Maytronics Ltd.

    40,169       434,610  
   

 

 

 
      997,062  
Independent Power and Renewable Electricity Producers — 2.6%  

Doral Group Renewable Energy Resources
Ltd.(a)

    72,319       154,895  

Energix-Renewable Energies Ltd.

    222,932       694,188  

Enlight Renewable Energy Ltd.(a)

    95,746       1,557,024  

Kenon Holdings Ltd./Singapore

    17,545       416,881  

OPC Energy Ltd.(a)

    91,328       563,327  

OY Nofar Energy Ltd.(a)

    14,462       328,128  
   

 

 

 
      3,714,443  
Industrial Conglomerates — 0.2%            

Arad Investment & Industrial Development Ltd.

    3,126       349,996  
   

 

 

 
Insurance — 2.6%            

Clal Insurance Enterprises Holdings Ltd.(a)

    54,671       809,562  

Harel Insurance Investments & Financial Services Ltd.

    94,040       684,439  

Menora Mivtachim Holdings Ltd.

    17,627       371,650  

Migdal Insurance & Financial Holdings Ltd.

    343,085       398,153  

Phoenix Holdings Ltd. (The)

    144,497       1,447,804  
   

 

 

 
      3,711,608  
Interactive Media & Services — 0.3%            

Taboola.com Ltd.(a)

    109,119       409,196  
   

 

 

 
IT Services — 4.2%            

Formula Systems 1985 Ltd.

    8,111       601,370  

Matrix IT Ltd.

    28,433       577,219  

One Software Technologies Ltd.

    37,832       481,342  

Wix.com Ltd.(a)

    43,931       4,339,065  
   

 

 

 
      5,998,996  
Machinery — 0.6%            

Kornit Digital Ltd.(a)

    40,693       905,826  
   

 

 

 
Marine Transportation — 0.7%            

ZIM Integrated Shipping Services Ltd.(b)

    78,248       944,453  
   

 

 

 
Media — 0.9%            

Perion Network Ltd.(a)

    38,264       1,272,056  
   

 

 

 
Oil, Gas & Consumable Fuels — 2.4%            

Delek Group Ltd.

    7,508       1,077,117  

Equital Ltd.(a)

    19,219       599,228  

Naphtha Israel Petroleum Corp. Ltd.

    26,071       123,740  

Oil Refineries Ltd.

    2,066,998       673,169  

 

 

22  

2 0 2 3  I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Israel ETF

(Percentages shown are based on Net Assets)

 

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

Paz Ashdod Refinery Ltd.(a)

    8,490     $ 231,502  

Paz Oil Co. Ltd.(a)

    8,220       679,628  
   

 

 

 
       3,384,384  
Pharmaceuticals — 6.4%            

Taro Pharmaceutical Industries Ltd.(a)

    7,647       302,974  

Teva Pharmaceutical Industries Ltd., ADR(a)

    911,803       8,899,197  
   

 

 

 
      9,202,171  
Professional Services — 1.2%            

Danel Adir Yeoshua Ltd.

    4,495       360,464  

Fiverr International Ltd.(a)(b)

    26,119       735,250  

Hilan Ltd.

    13,064       669,862  
   

 

 

 
      1,765,576  
Real Estate Management & Development — 7.8%        

AFI Properties Ltd.(a)

    0       19  

Africa Israel Residences Ltd.

    5,145       242,162  

Airport City Ltd.(a)

    55,609       851,538  

Alony Hetz Properties & Investments Ltd.

    124,325       944,133  

Amot Investments Ltd.

    191,296       904,943  

Aura Investments Ltd.

    104,314       207,416  

Azrieli Group Ltd.

    34,539       1,851,504  

Big Shopping Centers Ltd.(a)

    9,990       834,209  

Blue Square Real Estate Ltd.

    4,468       263,461  

Brack Capital Properties NV(a)

    0       24  

Electra Real Estate Ltd.

    20,642       227,298  

G City Ltd.

    72,652       231,608  

Gav-Yam Lands Corp. Ltd.

    0       1  

Israel Canada T.R Ltd.

    123,127       275,042  

Isras Investment Co. Ltd.

    1,520       285,005  

Mega Or Holdings Ltd.

    19,309       358,898  

Melisron Ltd.

    21,262       1,331,754  

Mivne Real Estate KD Ltd.

    522,203       1,250,164  

Prashkovsky Investments and Construction Ltd.

    5,959       134,546  

Property & Building Corp. Ltd.(a)

    2,449       96,571  

Summit Real Estate Holdings Ltd.

    33,074       435,411  

YH Dimri Construction & Development Ltd.

    6,090       376,776  
   

 

 

 
      11,102,483  
Semiconductors & Semiconductor Equipment — 4.9%  

Camtek Ltd./Israel(a)

    23,579       1,434,354  

Nova Ltd.(a)

    23,377       3,014,534  

Tower Semiconductor Ltd.(a)

    89,623       2,614,595  
   

 

 

 
      7,063,483  
Software — 21.7%            

Cellebrite DI Ltd.(a)(b)

    39,612       318,877  

Check Point Software Technologies Ltd.(a)(b)

    76,171       10,251,855  

CyberArk Software Ltd.(a)(b)

    33,990       5,643,700  

Magic Software Enterprises Ltd.

    21,975       254,253  

Monday.com Ltd.(a)

    17,681       3,137,317  

Nice Ltd.(a)

    51,493       10,036,164  

Riskified Ltd.(a)

    70,236       358,906  
Security   Shares     Value  
Software (continued)            

Sapiens International Corp. NV

    24,689     $ 735,331  

SimilarWeb Ltd.(a)

    22,205       151,882  

WalkMe Ltd.(a)

    17,955       181,525  
   

 

 

 
       31,069,810  
Specialty Retail — 0.9%            

Carasso Motors Ltd.

    26,530       114,964  

Delek Automotive Systems Ltd.

    47,354       296,013  

Fox Wizel Ltd.

    6,726       486,753  

Retailors Ltd.

    15,770       320,952  
   

 

 

 
      1,218,682  
Technology Hardware, Storage & Peripherals — 0.5%  

Nano Dimension Ltd., ADR(a)(b)

    206,069       655,299  
   

 

 

 
Textiles, Apparel & Luxury Goods — 0.3%            

Delta Galil Industries Ltd.(b)

    9,415       367,883  
   

 

 

 
Trading Companies & Distributors — 0.1%            

Scope Metals Group Ltd.(a)

    5,975       190,890  
   

 

 

 
Wireless Telecommunication Services — 0.5%        

Cellcom Israel Ltd.(a)

    87,462       289,784  

Partner Communications Co. Ltd.(a)

    113,684       475,812  
   

 

 

 
      765,596  
   

 

 

 

Total Long-Term Investments — 99.3%
(Cost: $174,916,534)

      142,149,466  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 8.3%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 5.52%(d)(e)(f)

    11,742,795       11,746,318  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 5.31%(d)(e)

    150,000       150,000  
   

 

 

 

Total Short-Term Securities — 8.3%
(Cost: $11,895,786)

 

    11,896,318  
   

 

 

 

Total Investments — 107.6%
(Cost: $186,812,320)

 

    154,045,784  

Liabilities in Excess of Other Assets — (7.6)%

 

    (10,930,050
   

 

 

 

Net Assets — 100.0%

    $ 143,115,734  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 

 

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

  23


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Israel ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
    Affiliated Issuer   Value at
08/31/22
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
   

Change in
Unrealized
Appreciation
(Depreciation)

    Value at
08/31/23
    Shares
Held at
08/31/23
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $  7,068,470     $  4,677,663 (a)    $     $ 3,882       $ (3,697   $ 11,746,318       11,742,795     $ 228,653 (b)    $  
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    80,000       70,000 (a)                          150,000       150,000       5,815        
         

 

 

     

 

 

   

 

 

     

 

 

   

 

 

 
          $ 3,882       $ (3,697   $ 11,896,318       $ 234,468     $  
         

 

 

     

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

Long Contracts

           

Euro STOXX 50 Index

     18        09/15/23      $ 840      $ 568  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 568      $      $      $      $ 568  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

For the period ended August 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

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

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ 70,332      $      $      $      $ 70,332  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 42,600      $      $      $      $ 42,600  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 609,232   

 

 

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

 

 

24  

2 0 2 3  I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Israel 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  

 

 

Assets

                    

Investments

                                         

Long-Term Investments

                    

Common Stocks

   $ 46,906,836         $ 95,242,630         $    —         $ 142,149,466  

Short-Term Securities

                    

Money Market Funds

     11,896,318                               11,896,318  
  

 

 

       

 

 

       

 

 

       

 

 

 
   $  58,803,154         $ 95,242,630         $         $ 154,045,784  
  

 

 

       

 

 

       

 

 

       

 

 

 

Derivative Financial Instruments(a)

                    

Assets

                    

Equity Contracts

   $         $ 568         $         $ 568  
  

 

 

       

 

 

       

 

 

       

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  25


Schedule of Investments

August 31, 2023

  

iShares® MSCI South Africa ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Banks — 16.4%            

Absa Group Ltd.

    1,103,273     $ 10,637,233  

Capitec Bank Holdings Ltd.

    113,320       9,509,039  

Nedbank Group Ltd.

    572,276       6,539,735  

Standard Bank Group Ltd.

    1,744,723       17,850,036  
   

 

 

 
       44,536,043  
Broadline Retail — 17.8%            

Naspers Ltd., Class N

    255,051       43,446,996  

Woolworths Holdings Ltd.

    1,222,366       4,801,435  
   

 

 

 
      48,248,431  
Capital Markets — 1.4%            

Reinet Investments SCA

    178,500       3,822,178  
   

 

 

 
Chemicals — 3.5%            

Sasol Ltd.

    742,980       9,574,164  
   

 

 

 
Consumer Staples Distribution & Retail — 8.7%        

Bid Corp. Ltd.

    436,499       9,819,320  

Clicks Group Ltd.

    315,050       4,562,678  

Shoprite Holdings Ltd.

    654,139       9,138,549  
   

 

 

 
      23,520,547  
Diversified REITs — 1.0%            

Growthpoint Properties Ltd.

    4,464,870       2,792,169  
   

 

 

 
Financial Services — 11.5%            

FirstRand Ltd.

    6,570,233       25,528,085  

Remgro Ltd.

    688,730       5,764,034  
   

 

 

 
      31,292,119  
Industrial Conglomerates — 2.1%            

Bidvest Group Ltd. (The)

    376,412       5,679,566  
   

 

 

 
Insurance — 7.5%            

Discovery Ltd.(a)

    700,833       5,445,233  

Old Mutual Ltd.

    6,339,968       4,260,217  

OUTsurance Group Ltd., NVS

    1,096,863       2,323,247  

Sanlam Ltd.

    2,293,522       8,276,596  
   

 

 

 
      20,305,293  
Metals & Mining — 17.6%            

African Rainbow Minerals Ltd.

    146,192       1,385,669  

Anglo American Platinum Ltd.

    86,314       3,010,139  

AngloGold Ashanti Ltd.

    546,106       9,296,324  

Gold Fields Ltd.

    1,162,865       14,877,316  

Harmony Gold Mining Co. Ltd.

    723,930       2,999,887  
Security   Shares     Value  
Metals & Mining (continued)            

Impala Platinum Holdings Ltd.

    1,127,574     $ 5,804,895  

Kumba Iron Ore Ltd.

    83,833       1,843,927  

Northam Platinum Holdings Ltd.(a)

    464,545       3,062,529  

Sibanye Stillwater Ltd.

    3,683,736       5,558,157  
   

 

 

 
       47,838,843  
Oil, Gas & Consumable Fuels — 1.1%            

Exxaro Resources Ltd.

    318,213       2,827,942  
   

 

 

 
Pharmaceuticals — 1.7%            

Aspen Pharmacare Holdings Ltd.

    493,645       4,501,227  
   

 

 

 
Real Estate Management & Development — 1.4%        

NEPI Rockcastle NV

    620,608       3,724,634  
   

 

 

 
Specialty Retail — 0.8%            

Pepkor Holdings Ltd.(b)

    2,624,137       2,264,942  
   

 

 

 
Wireless Telecommunication Services — 6.9%        

MTN Group Ltd.

    2,206,991       14,061,168  

Vodacom Group Ltd.

    811,239       4,633,320  
   

 

 

 
      18,694,488  
   

 

 

 

Total Long-Term Investments — 99.4%
(Cost: $388,365,729)

      269,622,586  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.0%            

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(c)(d)

    150,000       150,000  
   

 

 

 

Total Short-Term Securities — 0.0%
(Cost: $150,000)

      150,000  
   

 

 

 

Total Investments — 99.4%
(Cost: $388,515,729)

      269,772,586  

Other Assets Less Liabilities — 0.6%

      1,525,224  
   

 

 

 

Net Assets — 100.0%

    $ 271,297,810  
   

 

 

 

 

(a) 

Non-income producing security.

 
(b) 

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

 
(c) 

Affiliate of the Fund.

 
(d) 

Annualized 7-day yield as of period end.

 

 

 

26  

2 0 2 3  I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI South Africa ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   

 

Affiliated Issuer

 

Value at

08/31/22

    

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

08/31/23

    

Shares

Held at

08/31/23

    

Income

   

Capital

Gain

Distributions

from

Underlying

Funds

        
 

BlackRock Cash Funds: Institutional, SL Agency
Shares(a)

  $      $  1,256 (b)    $      $ (1,256   $      $             $ 9,130 (c)    $     
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    180,000              (30,000 )(b)                   150,000        150,000        8,906           
          

 

 

   

 

 

    

 

 

       

 

 

   

 

 

    
            $ (1,256   $      $ 150,000         $ 18,036     $     
          

 

 

   

 

 

    

 

 

       

 

 

   

 

 

    

 

  (a)

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

 
  (b)

Represents net amount purchased (sold).

 
  (c)

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description

  

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

Long Contracts

           

FTSE/JSE Top 40 Index

     17        09/21/23      $ 620      $ (21,408
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

               
     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

    

Total

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 21,408      $      $      $      $ 21,408  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

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

 

For the period ended August 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

    

Total

 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ 115,117      $      $      $      $ 115,117  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (3,206    $      $      $      $ (3,206
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 447,678   

 

 

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

 

 

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

  27


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI South Africa 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  

 

 

Assets

                

Investments

                

Long-Term Investments

                

Common Stocks

  $ 182,336,386        $ 87,286,200        $        $ 269,622,586  

Short-Term Securities

                

Money Market Funds

    150,000                            150,000  
 

 

 

      

 

 

      

 

 

      

 

 

 
    $182,486,386          $87,286,200          $   —          $269,772,586  
 

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                

Liabilities

                

Equity Contracts

  $        $ (21,408      $        $ (21,408
 

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

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

 

See notes to financial statements.

 

 

28  

2 0 2 3  I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments

August 31, 2023

  

iShares® MSCI Turkey ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 3.0%            

Aselsan Elektronik Sanayi Ve Ticaret AS

    4,759,069     $  6,840,979  
   

 

 

 
Air Freight & Logistics — 0.3%            

Reysas Tasimacilik ve Lojistik Ticaret AS(a)

    488,383       749,018  
   

 

 

 
Automobile Components — 0.4%            

EGE Endustri VE Ticaret AS

    2,003       539,140  

Kordsa Teknik Tekstil AS(b)

    142,245       435,280  
   

 

 

 
          974,420  
Automobiles — 4.9%            

Ford Otomotiv Sanayi AS

    239,588       7,735,428  

Tofas Turk Otomobil Fabrikasi AS

    331,091       3,341,331  
   

 

 

 
          11,076,759  
Banks — 13.8%            

Akbank TAS(b)

    9,523,227       10,244,592  

Haci Omer Sabanci Holding AS

    3,093,579       6,916,931  

Turkiye Is Bankasi AS, Class C

    10,604,908       8,348,702  

Yapi ve Kredi Bankasi AS

    9,535,028       5,663,096  
   

 

 

 
          31,173,321  
Beverages — 1.4%            

Anadolu Efes Biracilik Ve Malt Sanayii AS

    793,302       3,199,713  
   

 

 

 
Building Products — 0.4%            

Bien Yapi Urunleri Sanayi Turizm ve Ticaret AS, NVS

    154,863       416,132  

Qua Granite Hayal(a)

    1,650,850       429,390  
   

 

 

 
          845,522  
Capital Markets — 1.3%            

Is Yatirim Menkul Degerler AS

    1,356,913       2,159,259  

Oyak Yatirim Menkul Degerler AS, NVS(a)

    312,132       751,682  
   

 

 

 
          2,910,941  
Chemicals — 6.1%            

Hektas Ticaret TAS(a)

    3,674,723       3,523,123  

Kimteks Poliuretan Sanayi VE Ticaret AS, NVS

    221,589       726,460  

Petkim Petrokimya Holding AS(a)

    4,062,635       3,105,950  

Sasa Polyester Sanayi AS(a)

    3,271,528       6,458,514  
   

 

 

 
          13,814,047  
Construction & Engineering — 2.1%            

Enka Insaat ve Sanayi AS

    1       1  

Girisim Elektrik Taahhut Ticaret Ve Sanayi AS(a)

    244,972       850,793  

Kontrolmatik Enerji Ve Muhendislik AS, NVS

    214,526       2,207,863  

Tekfen Holding AS

    885,656       1,581,040  
   

 

 

 
          4,639,697  
Construction Materials — 2.6%            

Cimsa Cimento Sanayi VE Ticaret AS

    94,260       755,272  

Nuh Cimento Sanayi AS

    262,813       1,868,788  

Oyak Cimento Fabrikalari AS(a)

    1,349,005       3,200,828  
   

 

 

 
          5,824,888  
Consumer Staples Distribution & Retail — 8.9%        

BIM Birlesik Magazalar AS

    1,394,555       13,163,727  

Migros Ticaret AS

    335,901       4,360,890  

Sok Marketler Ticaret AS

    1,121,132       2,607,698  
   

 

 

 
          20,132,315  
Diversified REITs — 0.5%            

Is Gayrimenkul Yatirim Ortakligi AS(a)

    833,638       594,447  

Ziraat Gayrimenkul Yatirim Ortakligi AS(a)

    2,308,220       472,524  
   

 

 

 
          1,066,971  
Security   Shares      Value  
Electric Utilities — 1.7%             

Can2 Termik AS(a)

    612,575      $   428,248  

Enerjisa Enerji AS(c)