Table of Contents

 

LOGO

  AUGUST 31, 2022

 

 

   

 

   2022 Annual Report

 

iShares, Inc.

 

·  

iShares MSCI Austria ETF | EWO | NYSE Arca

 

·  

iShares MSCI Belgium ETF | EWK | NYSE Arca

 

·  

iShares MSCI France ETF | EWQ | NYSE Arca

 

·  

iShares MSCI Netherlands ETF | EWN | NYSE Arca

 

·  

iShares MSCI Sweden ETF | EWD | NYSE Arca


Table of Contents

The Markets in Review

Dear Shareholder,

The 12-month reporting period as of August 31, 2022 saw the emergence of significant challenges that disrupted the economic recovery and strong financial markets of 2021. The U.S. economy shrank in the first half of 2022, ending the run of robust growth that followed the reopening of global economies and the development of COVID-19 vaccines. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the ongoing war continued to present challenges for both investors and policymakers.

Equity prices fell as interest rates rose, particularly weighing on relatively high-valuation growth stocks and economically sensitive small-capitalization stocks. While both large- and small-capitalization U.S. stocks fell, declines for small-capitalization U.S. stocks were steeper. Both emerging market stocks and international equities from developed markets fell significantly, pressured by rising interest rates and a strengthening U.S. dollar.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose notably during the reporting period as investors reacted to higher inflation and attempted to anticipate its impact on future interest rate changes. The corporate bond market also faced inflationary headwinds, and increasing uncertainty led to higher corporate bond spreads (the difference in yield between U.S. Treasuries and similarly-dated corporate bonds).

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is growing faster than expected, raised interest rates four times while indicating that additional rate hikes were likely. Furthermore, the Fed wound down its bond-buying programs and began to reduce its balance sheet. As investors attempted to assess the Fed’s future trajectory, the Fed’s statements late in the reporting period led markets to believe that additional tightening is likely in the near term.

The horrific war in Ukraine has significantly clouded the outlook for the global economy, leading to major volatility in energy and metals markets. Sanctions on Russia, Europe’s top energy supplier, and general wartime disruption have magnified supply problems for key commodities. We believe elevated energy prices will continue to exacerbate inflationary pressure while also constraining economic growth. Combating inflation without stifling a recovery, while buffering against ongoing supply and price shocks, will be an especially challenging environment for setting effective monetary policy. Despite the likelihood of more rate increases on the horizon, we believe the Fed will ultimately err on the side of protecting employment, even at the expense of higher inflation. In the meantime, however, we are likely to see a period of slowing growth paired with relatively high inflation.

In this environment, while we favor an overweight to equities in the long-term, the market’s concerns over excessive rate hikes from central banks moderate our outlook. Furthermore, the energy shock and a deteriorating economic backdrop in China and Europe are likely to challenge corporate earnings, so we are underweight equities overall in the near term. We take the opposite view on credit, where higher spreads provide near-term opportunities, while the likelihood of higher inflation leads us to take an underweight stance on credit in the long term. We believe that investment-grade corporates, U.K. gilts, local-currency emerging market debt, and inflation-protected bonds (particularly in Europe) offer strong opportunities for a six- to twelve-month horizon.

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

 

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of August 31, 2022  
     
     6-Month     12-Month  
   

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

    (8.84)%       (11.23)%  
   

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

    (9.31)          (17.88)     
   

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

    (13.97)          (19.80)     
   

Emerging market equities
(MSCI Emerging Markets Index)

    (13.30)          (21.80)     
   

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

    0.36           0.39      
   

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

    (9.71)          (13.27)     
   

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

    (7.76)          (11.52)     
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

    (5.72)          (8.63)     
   

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

    (7.78)          (10.61)     
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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T H I S   P A G E   I S   N O T   P A R T   O F   Y O U R   F U N D   R E P O R T


Table of Contents

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

     32  

Statements of Operations

     34  

Statements of Changes in Net Assets

     36  

Financial Highlights

     39  

Notes to Financial Statements

     44  

Report of Independent Registered Public Accounting Firm

     54  

Important Tax Information

     55  

Board Review and Approval of Investment Advisory Contract

     56  

Supplemental Information

     60  

Director and Officer Information

     61  

General Information

     64  

Glossary of Terms Used in this Report

     65  

 

 

 


Table of Contents

Market Overview

 

iShares, Inc.

Global Market Overview

Global equity markets declined in U.S. dollar terms during the 12 months ended August 31, 2022 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned -15.88% in U.S. dollar terms for the reporting period.

For the first third of the reporting period, economic recovery supported stocks in most regions of the world. The global economy continued to rebound from the impact of restrictions imposed at the beginning of the coronavirus pandemic, as mitigation and adaptation allowed most economic activity to continue. However, substantial challenges emerged at the beginning of 2022 which negatively affected stock prices. Inflation rose significantly in many countries, reducing consumers’ purchasing power and leading many central banks to tighten monetary policy. Russia’s invasion of Ukraine presented a further challenge to the global economy, disrupting important commodities markets.

The U.S. economy grew briskly over the final half of 2021, powered primarily by consumer spending. Record-high personal savings rates allowed consumers to spend at an elevated level, releasing pent-up demand for goods and services. Growth subsequently stalled in the first half of 2022, and the economy contracted amid lower inventories and faltering business investment. Despite the economic downturn, unemployment declined substantially, falling to 3.7% in August 2022 while the number of long-term unemployed dropped below the pre-pandemic level. Although high inflation negatively impacted consumer sentiment, which declined significantly, consumer spending continued to grow.

Rising inflation led to a shift in policy from the U.S. Federal Reserve (“the Fed”). As the reporting period began, the Fed was using accommodative monetary policy to stimulate the economy. Short-term interest rates were kept at near-zero levels, and the Fed used bond-buying programs to stabilize debt markets. However, rising prices led the Fed to tighten monetary policy during the reporting period in an attempt to prevent runaway inflation. The Fed slowed and then ended its bond-buying activities, finally reversing course as it began to reduce its balance sheet in June 2022. In March 2022, the Fed began to raise short-term interest rates, followed by three more increases for a total increase of 225 basis points, the most rapid rise in decades. Interest rates rose significantly in response, leading to higher borrowing costs for businesses. In that environment, the U.S. dollar significantly appreciated relative to most foreign currencies.

Stocks declined in Europe in U.S. dollar terms as economic growth stalled and the euro declined sharply relative to the U.S. dollar. Significantly higher inflation and Russia’s invasion of Ukraine negatively impacted equities. Russia is an important trading partner with many European countries, and new sanctions imposed limits on certain types of trade with Russia. Investors became concerned that the sharp rise in energy prices during the reporting period would constrain economic growth, as Europe relies on imported energy for much of its industrial and heating needs. The European Central Bank (“ECB”) responded to elevated inflation by raising interest rates in July 2022, the first such increase in over a decade.

Despite relatively low inflation by global standards, Asia-Pacific stocks declined significantly in U.S. dollar terms. Chinese stocks faced significant headwinds amid regulatory interventions by the Chinese government and strict lockdowns following COVID-19 outbreaks. Japanese stocks also declined amid an economic contraction in the first quarter of 2022 and a sharp decline in the Japanese yen relative to the U.S. dollar. Emerging market stocks declined substantially, as higher interest rates and a strengthening U.S. dollar raised the cost of borrowing in many emerging economies.

 

 

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Table of Contents
Fund Summary as of August 31, 2022    iShares® MSCI Austria ETF

 

Investment Objective

The iShares MSCI Austria ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Austrian equities, as represented by the MSCI Austria 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

    (28.58 )%       (2.80 )%       4.30       (28.58 )%       (13.23 )%       52.35

Fund Market

    (28.42      (2.81      4.38         (28.42      (13.26      53.49  

Index

    (28.36      (2.70      4.44               (28.36      (12.80      54.46  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through February 11, 2013 reflects the performance of the MSCI Austria Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Austria 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

(03/01/22)

 

 

 

      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
         

Beginning

Account Value

(03/01/22)

      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $      1,000.00          $      792.90          $      2.26             $      1,000.00        $      1,022.70          $      2.55          0.50

 

  (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


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Austria ETF

 

Portfolio Management Commentary

Austrian stocks declined substantially for the reporting period amid high inflation and disruption to Europe’s energy supplies. While Austria’s economy rebounded from a late 2021 contraction to grow in the first half of 2022, the war in Ukraine sent Austrian stocks sharply lower. Austria’s reliance on Russian natural gas led the government to institute measures to conserve gas and build its reserves, including allowing a utilities company to convert a gas power plant to run on coal. High inflation also pressured Austrian stocks, as prices grew at the fastest rate in 47 years. In response, the government delayed implementation of a carbon emission tax and passed an aid measure providing rebates to taxpayers. The declining value of the euro relative to the U.S. dollar also significantly diminished the value of Austrian stocks in U.S. dollar terms.

The financials sector was the largest detractor from the Index’s return, particularly the banking industry. The E.U. and other countries instituted economic sanctions on Russia in response to its invasion of Ukraine. These sanctions negatively impacted banks with exposure to Russian-related businesses, and Austrian banks were among the most affected in Europe.

The materials sector also detracted from the Index’s performance, driven primarily by weakness in the steel industry. Steel production is highly energy intensive, and the disruption of Europe’s fuel supplies due to sanctions on Russia forced steelmakers to secure alternative sources of power. In addition, the economic slowdown and China’s renewed COVID-19 lockdowns pressured steel prices amid a sharp decline in European business confidence. The construction materials industry also declined, as rising interest rates and increased costs weighed on European homebuilding and construction activity.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector   Percent of   
Total Investments(a)
 

 

 

Financials

    30.2%  

Utilities

    16.1     

Energy

    14.7     

Industrials

    13.7     

Materials

    11.7     

Real Estate

    7.0     

Information Technology

    2.9     

Communication Services

    2.8     

Consumer Staples

    0.9     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security   Percent of   
Total Investments(a)
 

 

 

Erste Group Bank AG

    16.8%  

Verbund AG

    14.1     

OMV AG

    12.9     

BAWAG Group AG

    4.6     

Wienerberger AG

    4.6     

voestalpine AG

    4.6     

ANDRITZ AG

    4.4     

Raiffeisen Bank International AG

    4.1     

CA Immobilien Anlagen AG

    3.5     

AT&S Austria Technologie & Systemtechnik AG

    2.9     

 

 

 

  (a) 

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary as of August 31, 2022    iShares® MSCI Belgium ETF

 

Investment Objective

The iShares MSCI Belgium ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Belgian equities, as represented by the MSCI Belgium 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

    (24.77 )%       (2.19 )%       5.73       (24.77 )%       (10.48 )%       74.63

Fund Market

    (24.74      (2.22      5.73         (24.74      (10.63      74.58  

Index

    (24.78      (3.06      5.03               (24.78      (14.39      63.35  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through November 8, 2012 reflects the performance of the MSCI Belgium Investable Market Index. Index performance beginning on November 9, 2012 reflects the performance of the MSCI Belgium 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

(03/01/22)

 

 

 

      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
         

Beginning

Account Value

(03/01/22)

      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $      1,000.00          $      814.50          $      2.29             $    1,000.00        $      1,022.70          $      2.55          0.50

 

  (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


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Belgium ETF

 

Portfolio Management Commentary

Belgian stocks declined substantially for the reporting period amid high inflation and disruption to Europe’s energy supplies. While Belgium’s economy continued to grow in the first half of 2022, albeit at a slower pace than 2021, consumer confidence fell substantially amid the country’s highest inflation in 46 years. The Belgian wage system triggered automatic wage increases for many public and private sector employees as prices rose, further exacerbating inflationary pressure. While Belgium has less reliance on Russian natural gas than other European countries, its economy is highly integrated into the European market, and concerns about a wider European economic downturn weighed on Belgian stocks. The declining value of the euro relative to the U.S. dollar also significantly diminished the value of Belgian stocks in U.S. dollar terms.

The financials sector detracted the most from the Index’s return, led by the banking industry. While the industry had relatively little direct exposure to Russia and Ukraine, the war still created a challenging environment by increasing inflation and stifling economic growth in areas where the industry operates. Amid this heightened geopolitical environment, banks increased their reserves, adding to expenses. Stocks in the diversified financial services industry also retreated, pressured by the rising cost of capital and a decline in net asset value of investments.

The consumer staples sector further detracted from the Index’s performance amid weakness in the beverages industry. A large beverage maker was slow to raise prices in some international markets, even as costs rose due to inflation. Meanwhile, shifting consumer tastes in the large U.S. beverage market pressured sales volumes. The materials sector also declined, as customers’ production difficulties weighed on demand for cathode materials in the chemicals industry.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector   Percent of   
Total Investments(a)
 

 

 

Consumer Staples

    23.2%  

Health Care

    20.2     

Financials

    19.8     

Real Estate

    11.0     

Materials

    9.4     

Industrials

    3.5     

Utilities

    3.1     

Communication Services

    2.6     

Consumer Discretionary

    2.6     

Information Technology

    2.6     

Energy

    2.0     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security   Percent of   
Total Investments(a)
 

 

 

Anheuser-Busch InBev SA/NV

    21.8%  

Argenx SE

    12.5     

KBC Group NV

    7.4     

UCB SA

    4.5     

Groupe Bruxelles Lambert SA

    4.5     

Ageas SA/NV

    4.2     

Umicore SA

    4.0     

Solvay SA

    3.7     

Elia Group SA/NV

    3.1     

Warehouses De Pauw CVA

    2.8     

 

 

 

  (a) 

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary as of August 31, 2022    iShares® MSCI France ETF

 

Investment Objective

The iShares MSCI France ETF (the “Fund”) seeks to track the investment results of an index composed of French equities, as represented by the MSCI France 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

    (19.40 )%(a)      2.61      6.37       (19.40 )%(a)      13.75      85.39

Fund Market

    (18.91     2.66        6.46         (18.91     14.01        87.02  

Index

    (20.47     2.30        6.19               (20.47     12.03        82.25  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

  (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.

 

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

(03/01/22)

 

 

 

      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
         

Beginning

Account Value

(03/01/22)

      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $      1,000.00          $      855.80          $      3.65             $      1,000.00        $      1,021.30          $      3.97          0.78

 

  (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


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI France ETF

 

Portfolio Management Commentary

French stocks declined sharply during the reporting period. Russia’s invasion of Ukraine disrupted supply chains across the Eurozone and contributed to high inflation as commodities and energy prices soared. Many nations, including France, imposed sanctions against Russia, and some French companies suspended business operations in the country or stopped buying Russian commodities and products. Rising inflation, which led the ECB to increase interest rates in July 2022 for the first time in 11 years, weakened business confidence and the economic outlook. The declining value of the euro relative to the U.S. dollar also diminished the value of French stocks in U.S. dollar terms.

The industrials sector detracted the most from the Index’s return. Coronavirus-related lockdowns in China disrupted production at a French electrical equipment company with Chinese operations and limited the supply of critical parts. The aerospace and defense industry was also negatively impacted by shortages in the supply of key parts, including engines and microchips.

Consumer discretionary companies further detracted from the Index’s performance, as China’s lockdowns shuttered stores and led to declining sales of luxury brand products in the apparel, accessories, and luxury goods industry. The economic downturn in the U.S., where growth turned negative in the first two quarters of 2022, also weighed on sales of French luxury goods.

The consumer staples sector also weighed on the Index’s return. The personal products industry faced headwinds, as increased marketing costs diminished profit margins and online sales slowed.

Healthcare stocks also detracted from the Index’s performance. The stock of a large pharmaceuticals company retreated after it suspended testing of a new drug following disappointing trial performance. On the upside, stocks in the energy sector contributed to the Index’s performance as soaring oil and gas prices boosted profits.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector   Percent of   
Total Investments(a)
 

 

 

Consumer Discretionary

    22.7%  

Industrials

    21.2     

Consumer Staples

    11.3     

Financials

    9.2     

Energy

    8.3     

Health Care

    8.0     

Information Technology

    6.7     

Materials

    5.5     

Communication Services

    3.1     

Utilities

    2.9     

Real Estate

    1.1     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security   Percent of   
Total Investments(a)
 

 

 

LVMH Moet Hennessy Louis Vuitton SE

    11.9%  

TotalEnergies SE

    8.3     

Sanofi

    6.2     

L’Oreal SA

    5.5     

Air Liquide SA

    4.4     

Schneider Electric SE

    4.3     

Airbus SE

    3.9     

BNP Paribas SA

    3.4     

Vinci SA

    3.3     

AXA SA

    2.9     

 

 

 

 

  (a) 

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary as of August 31, 2022    iShares® MSCI Netherlands ETF

 

Investment Objective

The iShares MSCI Netherlands ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Dutch equities, as represented by the MSCI Netherlands 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

    (34.09 )%       4.13      8.52       (34.09 )%       22.41      126.45

Fund Market

    (34.21      4.06        8.54         (34.21      22.01        126.86  

Index

    (33.58      4.68        8.90               (33.58      25.70        134.60  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through August 31, 2017 reflects the performance of the MSCI Netherlands Investable Market Index. Index performance beginning on September 1, 2017 reflects the performance of the MSCI Netherlands IMI 25/50.

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

(03/01/22)

 

 

 

      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
         

Beginning

Account Value

(03/01/22)

      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $      1,000.00          $      802.10          $      2.27             $      1,000.00        $      1,022.70          $      2.55          0.50

 

  (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


Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Netherlands ETF

 

Portfolio Management Commentary

Stocks in the Netherlands declined sharply during the reporting period. Russia’s invasion of Ukraine disrupted supply chains across the Eurozone and contributed to record-high inflation as commodities and energy prices soared. Many nations, including the Netherlands, imposed sanctions against Russia while some Dutch companies stopped business operations in Russia. Rising inflation, which led the ECB to raise interest rates in July 2022 for the first time in 11 years, weakened business confidence and the economic outlook. The declining value of the euro relative to the U.S. dollar also diminished the value of Dutch stocks in U.S. dollar terms.

The information technology sector detracted the most from the Index’s return. A global supply shortage of microprocessors slowed production for semiconductor equipment manufacturers, while the weakening global economy diminished the sales outlook for many products that use microprocessors, such as personal computers and cell phones. In addition, the U.S. pressured the Netherlands to block chip manufacturers from selling some high-tech equipment to China, citing their use in military applications.

Consumer discretionary stocks also detracted from the Index’s performance. The Chinese assets of a Dutch internet and direct marketing retail company declined when investors became concerned about new Chinese restrictions on technology companies. The stock of a grocery and food delivery company in the industry also fell as consumers increasingly returned to shopping in grocery stores or eating out in restaurants.

In the industrials sector, the capital goods industry also weighed on the Index’s return, as rising costs for raw materials reduced profit margins. Geopolitical disruptions, including the war in Ukraine and coronavirus-related lockdowns in China, negatively impacted supply chains and sales, leading to longer wait times for products to get to market and larger inventory costs.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector   Percent of   
Total Investments(a)
 

 

 

Information Technology

    31.0%  

Industrials

    15.5     

Financials

    12.6     

Consumer Staples

    12.1     

Consumer Discretionary

    10.5     

Materials

    8.0     

Communication Services

    4.7     

Health Care

    3.2     

Real Estate

    1.2     

Energy

    1.1     

Utilities

    0.1     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security   Percent of   
Total Investments(a)
 

 

 

ASML Holding NV

    21.5%  

Prosus NV

    9.1     

ING Groep NV

    5.9     

Adyen NV

    5.8     

Koninklijke Ahold Delhaize NV

    4.7     

Wolters Kluwer NV

    4.4     

Koninklijke DSM NV

    3.9     

Heineken NV

    3.6     

Koninklijke Philips NV

    2.7     

Universal Music Group NV

    2.6     

 

 

 

  (a) 

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary as of August 31, 2022    iShares® MSCI Sweden ETF

 

Investment Objective

The iShares MSCI Sweden ETF (the “Fund”) seeks to track the investment results of an index composed of Swedish equities, as represented by the MSCI Sweden 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

    (33.28 )%       1.04      4.74       (33.28 )%       5.33      58.91

Fund Market

    (33.37      1.00        4.76         (33.37      5.10        59.24  

Index

    (33.26      0.74        4.29               (33.26      3.75        52.18  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through November 30, 2016 reflects the performance of the MSCI Sweden Index. Index performance beginning on December 1, 2016 reflects the performance of the MSCI Sweden 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

(03/01/22)

 

 

 

      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
         

Beginning

Account Value

(03/01/22)

      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $    1,000.00          $      816.10          $      2.56             $      1,000.00        $      1,022.40          $      2.85          0.56

 

  (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

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Table of Contents
Fund Summary as of August 31, 2022   (continued)    iShares® MSCI Sweden ETF

 

Portfolio Management Commentary

Stocks in Sweden declined sharply during the reporting period. Russia’s invasion of Ukraine disrupted supply chains across Europe and contributed to record high inflation as commodities and oil prices soared. Many nations, including Sweden, imposed sanctions against Russia while some Swedish companies halted Russian business operations. Rising inflation led the Swedish central bank to raise interest rates into positive territory for the first time since 2014. The declining value of the Swedish krona relative to the U.S. dollar also diminished the value of Swedish stocks in U.S. dollar terms.

The industrials sector detracted the most from the Index’s performance, led by the machinery industry. Coronavirus-related restrictions and lockdowns in many major cities across China disrupted the supply chain of key products and services and also slowed business operations across Sweden. A global shortage of microprocessors interfered with production and increased costs for truck manufacturers, while shipping bottlenecks impaired deliveries of products and parts. The stock prices of several major companies in the industrials sector dropped sharply following the invasion of Ukraine and their subsequent decision to end business operations in Russia.

The financials sector also detracted from the Index’s performance. The stock prices of investment holding companies with controlling stakes in many businesses fell, following the decline in the broader stock market. Online companies faced headwinds as consumers returned to shopping in stores and investors shifted away from growth-oriented businesses, weakening the performance of the multi-sector holdings industry.

Information technology stocks also weighed on the Index’ return. The electronic equipment, instruments, and components industry faced pressure as the war in Ukraine and the coronavirus-related lockdowns in China disrupted supplies and increased costs.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector   Percent of   
Total Investments(a)
 

 

 

Industrials

    37.5%  

Financials

    28.1     

Information Technology

    9.1     

Consumer Staples

    6.3     

Consumer Discretionary

    6.3     

Materials

    5.0     

Communication Services

    4.3     

Health Care

    1.7     

Real Estate

    1.7     

 

 

TEN LARGEST HOLDINGS

 

 

 
Security   Percent of   
Total Investments(a)
 

 

 

Nordea Bank Abp

    6.9%  

Investor AB, Class B

    6.3     

Atlas Copco AB, Class A

    6.0     

Volvo AB, Class B

    5.2     

Telefonaktiebolaget LM Ericsson, Class B

    4.8     

Assa Abloy AB, Class B

    4.5     

Hexagon AB, Class B

    4.4     

Sandvik AB

    3.6     

Skandinaviska Enskilda Banken AB, Class A

    3.6     

Swedish Match AB

    3.4     

 

 

 

  (a) 

Excludes money market funds.

 

 

 

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Table of Contents

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

  15


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI Austria ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 0.8%  

FACC AG(a)(b)

    66,760     $ 472,988  
   

 

 

 
Air Freight & Logistics — 2.5%  

Oesterreichische Post AG(b)

    55,721       1,555,635  
   

 

 

 
Banks — 25.1%  

BAWAG Group AG(c)

    63,281       2,855,120  

Erste Group Bank AG

    460,384         10,353,000  

Raiffeisen Bank International AG

    198,568       2,507,437  
   

 

 

 
      15,715,557  
Chemicals — 2.5%  

Lenzing AG

    21,244       1,571,234  
   

 

 

 
Commercial Services & Supplies — 1.7%  

DO & CO AG(a)(b)

    13,087       1,035,334  
   

 

 

 
Construction & Engineering — 2.2%  

Porr AG

    49,071       563,165  

Strabag SE

    20,755       797,809  
   

 

 

 
      1,360,974  
Construction Materials — 4.6%  

Wienerberger AG

    121,901       2,850,456  
   

 

 

 
Diversified Telecommunication Services — 2.7%  

Telekom Austria AG

    271,316       1,695,940  
   

 

 

 
Electric Utilities — 15.9%  

EVN AG

    62,007       1,202,877  

Verbund AG

    91,177       8,712,659  
   

 

 

 
      9,915,536  
Electronic Equipment, Instruments & Components — 2.8%  

AT&S Austria Technologie & Systemtechnik AG

    39,876       1,774,871  
   

 

 

 
Energy Equipment & Services — 1.8%  

Schoeller-Bleckmann Oilfield Equipment AG

    19,102       1,155,203  
   

 

 

 
Food Products — 0.9%  

Agrana Beteiligungs AG

    35,607       576,110  
   

 

 

 
Insurance — 4.7%  

UNIQA Insurance Group AG

    208,698       1,379,573  

Vienna Insurance Group AG Wiener Versicherung Gruppe

    65,019       1,541,416  
   

 

 

 
      2,920,989  
Security   Shares     Value  
Machinery — 6.4%            

ANDRITZ AG

    59,343     $ 2,733,121  

Palfinger AG

    30,880       805,303  

Semperit AG Holding(b)

    26,911       489,015  
   

 

 

 
      4,027,439  
Metals & Mining — 4.5%            

voestalpine AG

    140,180       2,820,773  
   

 

 

 
Oil, Gas & Consumable Fuels — 12.7%            

OMV AG

    197,232       7,946,924  
   

 

 

 
Real Estate Management & Development — 7.0%  

CA Immobilien Anlagen AG

    67,171       2,139,368  

IMMOFINANZ AG

    52,074       774,511  

S IMMO AG

    62,833       1,435,760  
   

 

 

 
      4,349,639  
   

 

 

 

Total Long-Term Investments — 98.8%
(Cost: $84,049,823)

 

    61,745,602  
   

 

 

 

Short-Term Securities

 

Money Market Funds — 3.1%  

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.42%(d)(e)(f)

    1,915,593       1,916,168  

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(d)(e)

    20,000       20,000  
   

 

 

 

Total Short-Term Securities — 3.1%
(Cost: $1,935,214)

 

    1,936,168  
   

 

 

 

Total Investments in Securities — 101.9%
(Cost: $85,985,037)

 

    63,681,770  

Liabilities in Excess of Other Assets — (1.9)%

 

    (1,179,311
   

 

 

 

Net Assets — 100.0%

    $   62,502,459  
   

 

 

 

 

(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.

 

 

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Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Austria ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
08/31/21
     Purchases
at Cost
     Proceeds
from Sale
    

Net Realized

Gain (Loss)

    

Change in

Unrealized
Appreciation
(Depreciation)

     Value at
08/31/22
     Shares
Held at
08/31/22
     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 2,252,894      $        $(335,753) (a)     $ (1,603    $ 630      $ 1,916,168        1,915,593      $ 36,201 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     30,000               (10,000) (a)                      20,000        20,000        193         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ (1,603    $ 630      $ 1,936,168         $ 36,394      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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

    21       09/16/22     $ 740     $ 5,469  
       

 

 

 

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)

   $      $      $ 5,469      $      $      $      $ 5,469  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ (92,322    $      $      $      $ (92,322
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (9,370    $      $      $      $ (9,370
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — long

     $948,320  

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

 

 

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

  17


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Austria ETF

 

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

 

Common Stocks

   $ 5,685,826      $ 56,059,776      $      $ 61,745,602  

Money Market Funds

     1,936,168                      1,936,168  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 7,621,994      $ 56,059,776      $      $ 63,681,770  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $      $ 5,469      $      $ 5,469  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI Belgium ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Air Freight & Logistics — 0.5%  

bpost SA

    14,456     $ 87,815  
   

 

 

 
Banks — 8.2%  

KBC Ancora

    4,588       151,042  

KBC Group NV

    27,386       1,306,107  
   

 

 

 
        1,457,149  
Beverages — 21.6%  

Anheuser-Busch InBev SA/NV

    79,703       3,849,218  
   

 

 

 
Biotechnology — 13.9%  

Argenx SE(a)

    5,870       2,210,417  

Galapagos NV(a)

    5,565       279,231  
   

 

 

 
      2,489,648  
Capital Markets — 0.8%  

Gimv NV

    2,672       136,705  
   

 

 

 
Chemicals — 8.5%  

Recticel SA

    6,236       86,894  

Solvay SA

    8,041       649,119  

Tessenderlo Group SA(a)

    2,688       87,275  

Umicore SA

    22,054       701,010  
   

 

 

 
      1,524,298  
Construction & Engineering — 3.0%  

Ackermans & van Haaren NV

    2,749       401,885  

Deme Group NV(a)

    1,117       127,834  
   

 

 

 
      529,719  
Distributors — 2.3%  

D’ieteren Group

    2,703       407,481  
   

 

 

 
Diversified Financial Services — 6.5%  

Groupe Bruxelles Lambert SA

    10,472       791,644  

Sofina SA

    1,799       360,618  
   

 

 

 
      1,152,262  
Diversified Telecommunication Services — 1.3%  

Proximus SADP

    18,463       235,016  
   

 

 

 
Electric Utilities — 3.1%  

Elia Group SA/NV

    3,808       553,194  
   

 

 

 
Electronic Equipment, Instruments & Components — 1.1%  

Barco NV

    8,956       199,586  
   

 

 

 
Entertainment — 0.5%  

Kinepolis Group NV(a)

    2,103       92,203  
   

 

 

 
Equity Real Estate Investment Trusts (REITs) — 9.1%  

Aedifica SA

    3,974       375,995  

Cofinimmo SA

    3,182       322,798  

Intervest Offices & Warehouses NV

    3,395       84,954  

Montea NV

    1,395       125,891  

Retail Estates NV

    1,494       96,728  

Warehouses De Pauw CVA

    16,386       498,578  

Xior Student Housing NV

    2,910       117,613  
   

 

 

 
      1,622,557  
Food & Staples Retailing — 1.0%  

Etablissements Franz Colruyt NV

    6,707       186,408  
   

 

 

 
Health Care Equipment & Supplies — 0.4%  

Ion Beam Applications

    3,949       70,243  
   

 

 

 
Security   Shares     Value  
Health Care Providers & Services — 0.6%  

Fagron

    8,375     $ 107,522  
   

 

 

 
Health Care Technology — 0.4%  

AGFA-Gevaert NV(a)

    22,025       79,637  
   

 

 

 
Insurance — 4.2%  

Ageas SA/NV

    18,409       746,955  
   

 

 

 
IT Services — 0.3%  

Econocom Group SA/NV

    19,181       59,784  
   

 

 

 
Media — 0.5%  

Telenet Group Holding NV

    5,960       84,631  
   

 

 

 
Metals & Mining — 0.8%  

Bekaert SA

    4,751       145,727  
   

 

 

 
Oil, Gas & Consumable Fuels — 2.0%  

Euronav NV

    21,887       352,911  
   

 

 

 
Personal Products — 0.3%  

Ontex Group NV(a)

    10,266       58,946  
   

 

 

 
Pharmaceuticals — 4.6%  

Mithra Pharmaceuticals SA(a)(b)

    3,504       25,057  

UCB SA

    11,377       799,426  
   

 

 

 
      824,483  
Real Estate Management & Development — 1.8%  

Immobel SA

    796       48,099  

Shurgard Self Storage SA

    2,573       124,209  

VGP NV

    973       141,465  
   

 

 

 
      313,773  
Semiconductors & Semiconductor Equipment — 1.1%  

Melexis NV

    2,567       193,569  
   

 

 

 
Textiles, Apparel & Luxury Goods — 0.3%  

Van de Velde NV

    1,456       51,289  
   

 

 

 
Wireless Telecommunication Services — 0.3%  

Orange Belgium SA(a)

    3,002       55,903  
   

 

 

 

Total Long-Term Investments — 99.0%
(Cost: $26,958,919)

 

    17,668,632  
   

 

 

 

Short-Term Securities

 

Money Market Funds — 0.2%  

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.42%(c)(d)(e)

    26,005       26,013  
   

 

 

 

Total Short-Term Securities — 0.2%
(Cost: $25,999)

 

    26,013  
   

 

 

 

Total Investments in Securities — 99.2%
(Cost: $26,984,918)

 

    17,694,645  

Other Assets Less Liabilities — 0.8%

 

    149,900  
   

 

 

 

Net Assets — 100.0%

    $   17,844,545  
   

 

 

 

 

(a) 

Non-income producing security.

 
(b) 

All or a portion of this security is on loan.

 
(c) 

Affiliate of the Fund.

 
(d) 

Annualized 7-day yield as of period end.

 
(e) 

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

 

 

 

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

  19


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Belgium ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   

Value at

08/31/21

    

Purchases

at Cost

    

Proceeds

from Sale

    

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

08/31/22

    

Shares

Held at

08/31/22

     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 125,177      $        $(99,139) (a)     $ (1    $ (24    $ 26,013        26,005      $ 8,349 (b)     $  

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

     10,000               (10,000) (a)                                   32         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ (1    $ (24    $ 26,013         $ 8,381      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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.

 
  (c) 

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

 

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

    5       09/16/22     $ 176     $ 4,795  
       

 

 

 

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)

   $      $      $ 4,795      $      $      $      $ 4,795  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ (5,982    $      $      $      $ (5,982
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 1,999      $      $      $      $ 1,999  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — long

     $158,862  

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

 

 

20  

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


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Belgium ETF

 

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

 

Common Stocks

   $ 408,922      $ 17,259,710      $      $ 17,668,632  

Money Market Funds

     26,013                      26,013  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 434,935      $ 17,259,710      $      $ 17,694,645  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $      $ 4,795      $      $ 4,795  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  21


Table of Contents

Schedule of Investments  

August 31, 2022

  

iShares® MSCI France ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 7.3%  

Airbus SE

    310,417     $ 30,418,723  

Dassault Aviation SA

    13,088       1,797,370  

Safran SA

    179,591       18,310,107  

Thales SA

    56,134       6,767,558  
   

 

 

 
      57,293,758  
Auto Components — 1.4%  

Cie. Generale des Etablissements Michelin SCA(a)

    356,556       8,671,893  

Valeo

    109,227       2,086,422  
   

 

 

 
      10,758,315  
Automobiles — 0.4%  

Renault SA(b)

    101,533       2,891,962  
   

 

 

 
Banks — 5.3%  

BNP Paribas SA

    583,466       27,113,777  

Credit Agricole SA

    636,493       5,858,070  

Societe Generale SA

    417,990       9,214,759  
   

 

 

 
      42,186,606  
Beverages — 2.8%  

Pernod Ricard SA

    110,035       20,190,145  

Remy Cointreau SA(a)

    12,159       2,255,042  
   

 

 

 
      22,445,187  
Building Products — 1.3%  

Cie. de Saint-Gobain

    261,375       10,527,594  
   

 

 

 
Capital Markets — 0.6%  

Amundi SA(c)

    32,314       1,638,440  

Euronext NV(c)

    44,822       3,312,478  
   

 

 

 
      4,950,918  
Chemicals — 4.7%  

Air Liquide SA

    274,654       34,417,678  

Arkema SA

    31,095       2,625,091  
   

 

 

 
      37,042,769  
Construction & Engineering — 4.2%  

Bouygues SA

    120,084       3,527,464  

Eiffage SA

    43,581       3,833,163  

Vinci SA

    280,253       25,854,300  
   

 

 

 
      33,214,927  
Diversified Financial Services — 0.3%  

Eurazeo SE

    23,100       1,379,534  

Wendel SE

    14,009       1,100,715  
   

 

 

 
      2,480,249  
Diversified Telecommunication Services — 1.3%  

Orange SA

    1,047,779       10,611,253  
   

 

 

 
Electric Utilities — 0.5%  

Electricite de France SA

    295,339       3,531,141  
   

 

 

 
Electrical Equipment — 5.6%  

Legrand SA

    140,459       10,162,865  

Schneider Electric SE

    284,916       33,864,361  
   

 

 

 
        44,027,226  
Entertainment — 0.6%  

Bollore SE

    460,826       2,202,192  

Ubisoft Entertainment SA(b)

    49,110       2,264,710  
   

 

 

 
      4,466,902  
Equity Real Estate Investment Trusts (REITs) — 1.1%  

Covivio

    25,021       1,396,862  
Security   Shares     Value  
Equity Real Estate Investment Trusts (REITs) (continued)  

Gecina SA

    23,951     $ 2,131,589  

Klepierre SA

    113,933       2,337,023  

Unibail-Rodamco-Westfield(a)(b)

    61,645       3,169,136  
   

 

 

 
      9,034,610  
Food & Staples Retailing — 0.7%  

Carrefour SA

    317,468       5,298,695  
   

 

 

 
Food Products — 2.3%  

Danone SA

    337,467       17,757,611  
   

 

 

 
Health Care Equipment & Supplies — 0.3%  

BioMerieux

    22,016       2,013,356  
   

 

 

 
Hotels, Restaurants & Leisure — 0.9%  

Accor SA(b)

    88,817       2,118,389  

La Francaise des Jeux SAEM(c)

    55,714       1,807,038  

Sodexo SA

    46,283       3,539,718  
   

 

 

 
      7,465,145  
Household Durables — 0.1%  

SEB SA

    13,175       975,808  
   

 

 

 
Insurance — 2.9%  

AXA SA

    983,273       23,157,672  
   

 

 

 
IT Services — 3.4%  

Capgemini SE

    85,931       14,846,985  

Edenred

    131,222       6,637,127  

Worldline SA/France(b)(c)

    125,659       5,383,568  
   

 

 

 
      26,867,680  
Life Sciences Tools & Services — 1.3%  

Eurofins Scientific SE

    70,406       4,871,264  

Sartorius Stedim Biotech

    14,553       5,322,925  
   

 

 

 
      10,194,189  
Machinery — 0.4%  

Alstom SA(a)

    166,030       3,402,493  
   

 

 

 
Media — 1.2%  

Publicis Groupe SA

    119,345       5,827,055  

Vivendi SE

    377,021       3,417,490  
   

 

 

 
      9,244,545  
Metals & Mining — 0.8%  

ArcelorMittal SA

    278,552       6,611,184  
   

 

 

 
Multi-Utilities — 2.4%  

Engie SA

    959,245       11,393,049  

Veolia Environnement SA

    349,515       7,789,784  
   

 

 

 
      19,182,833  
Oil, Gas & Consumable Fuels — 8.3%  

TotalEnergies SE

    1,302,202       65,930,078  
   

 

 

 
Personal Products — 5.5%  

L’Oreal SA

    126,741       43,528,462  
   

 

 

 
Pharmaceuticals — 6.4%  

Ipsen SA

    19,973       1,914,155  

Sanofi

    598,052       48,890,634  
   

 

 

 
        50,804,789  
Professional Services — 1.6%  

Bureau Veritas SA

    153,852       3,818,592  

Teleperformance

    30,856       8,788,009  
   

 

 

 
      12,606,601  

 

 

22  

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


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI France ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
Semiconductors & Semiconductor Equipment — 1.6%  

STMicroelectronics NV(a)

    358,944     $ 12,509,259  
   

 

 

 
Software — 1.7%  

Dassault Systemes SE

    350,075       13,500,004  
   

 

 

 
Textiles, Apparel & Luxury Goods — 20.0%  

EssilorLuxottica SA

    151,082       22,501,764  

Hermes International

    16,629       21,297,845  

Kering SA

    39,292       19,714,857  

LVMH Moet Hennessy Louis Vuitton SE

    145,808       94,085,058  
   

 

 

 
      157,599,524  
Transportation Infrastructure — 0.8%  

Aeroports de Paris(a)(b)

    15,694       2,148,985  

Getlink SE

    230,227       4,335,412  
   

 

 

 
      6,484,397  
   

 

 

 

Total Long-Term Investments — 100.0%
(Cost: $954,254,582)

        790,597,742  
   

 

 

 

Short-Term Securities

 

Money Market Funds — 1.3%  

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.42%(d)(e)(f)

    2,434,070       2,434,800  
Security   Shares      Value  

 

 
Money Market Funds (continued)  

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(d)(e)

    7,730,000      $ 7,730,000  
    

 

 

 

Total Short-Term Securities — 1.3%
(Cost: $10,163,657)

       10,164,800  
    

 

 

 

Total Investments in Securities — 101.3%
(Cost: $964,418,239)

 

     800,762,542  

Liabilities in Excess of Other Assets — (1.3)%

 

     (10,600,536
    

 

 

 

Net Assets — 100.0%

     $   790,162,006  
    

 

 

 

 

(a) 

All or a portion of this security is on loan.

(b) 

Non-income producing security.

(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.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
08/31/21
     Purchases
at Cost
     Proceeds
from Sale
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
08/31/22
     Shares
Held at
08/31/22
     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 21,424      $ 2,410,618 (a)       $        —      $ 1,615      $ 1,143      $ 2,434,800        2,434,070      $ 40,850 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     350,000        7,380,000 (a)                            7,730,000        7,730,000        37,592         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ 1,615      $ 1,143      $ 10,164,800         $ 78,442      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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

       

CAC 40 10 Euro Index

    6       09/16/22     $ 367     $ (28,983
       

 

 

 

 

 

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

  23


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI France ETF

 

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)

   $             —      $             —      $ 28,983      $             —      $             —      $             —      $ 28,983  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

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

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ (545,219    $             —      $             —      $             —      $ (545,219
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

 

Futures contracts

   $      $      $ 3,410      $             —      $             —      $             —      $ 3,410  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts

  

Average notional value of contracts — long

   $ 1,852,129  

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
    Level 1      Level 2     Level 3      Total  

 

 

Investments

         

Assets

         

Common Stocks

  $      $ 790,597,742     $      $ 790,597,742  

Money Market Funds

    10,164,800                     10,164,800  
 

 

 

    

 

 

   

 

 

    

 

 

 
  $   10,164,800      $ 790,597,742     $                 —      $ 800,762,542  
 

 

 

    

 

 

   

 

 

    

 

 

 

Derivative financial instruments(a)

         

Liabilities

         

Futures Contracts

  $      $ (28,983   $      $ (28,983
 

 

 

    

 

 

   

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

24  

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Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI Netherlands ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

 

Air Freight & Logistics — 0.8%  

InPost SA(a)

    253,617     $ 1,304,807  

PostNL NV

    539,381       1,149,348  
   

 

 

 
      2,454,155  
Banks — 6.9%            

ABN AMRO Bank NV, CVA(b)

    296,907       2,852,352  

ING Groep NV

    2,074,097       18,178,300  
   

 

 

 
      21,030,652  
Beverages — 6.4%  

Coca-Cola Europacific Partners PLC

    121,340       5,966,288  

Heineken Holding NV

    38,800       2,752,395  

Heineken NV

    121,835           10,950,416  
   

 

 

 
      19,669,099  
Biotechnology — 0.5%  

Pharming Group NV(a)(c)

    1,227,430       1,475,895  
   

 

 

 
Capital Markets — 0.7%            

Flow Traders(b)

    55,954       1,119,679  

Van Lanschot Kempen NV

    54,138       1,140,610  
   

 

 

 
      2,260,289  
Chemicals — 7.6%  

Akzo Nobel NV

    104,429       6,579,168  

Corbion NV

    55,969       1,589,196  

Koninklijke DSM NV

    94,474       12,046,922  

OCI NV

    81,451       3,057,901  
   

 

 

 
      23,273,187  
Construction & Engineering — 2.5%  

Arcadis NV

    60,699       1,935,041  

Boskalis Westminster

    71,964       2,386,971  

Fugro NV(a)

    165,931       2,113,563  

Koninklijke BAM Groep NV(a)

    432,544       1,152,950  
   

 

 

 
      7,588,525  
Distributors — 0.1%  

B&S Group Sarl(b)(c)

    60,062       305,181  
   

 

 

 
Diversified Financial Services — 0.0%  

SNS Real NV(c)(d)

    63,320       1  
   

 

 

 
Diversified Telecommunication Services — 2.0%  

Koninklijke KPN NV

    1,977,396       6,292,264  
   

 

 

 
Electric Utilities — 0.1%  

Fastned BV(a)(c)

    8,668       264,731  
   

 

 

 
Electrical Equipment — 2.1%  

Alfen Beheer BV(a)(b)

    20,526       2,320,412  

Signify NV(b)

    91,718       2,607,162  

TKH Group NV

    41,655       1,453,244  
   

 

 

 
      6,380,818  
Energy Equipment & Services — 0.6%  

SBM Offshore NV

    137,088       1,914,416  
   

 

 

 
Entertainment — 2.6%  

Universal Music Group NV

    407,393       8,089,990  
   

 

 

 
Equity Real Estate Investment Trusts (REITs) — 1.2%  

Eurocommercial Properties NV

    59,063       1,236,112  

NSI NV

    34,866       1,051,748  

Vastned Retail NV

    21,887       486,097  
Security   Shares     Value  

 

 
Equity Real Estate Investment Trusts (REITs) (continued)  

Wereldhave NV(c)

    66,632     $ 901,827  
   

 

 

 
      3,675,784  
Food & Staples Retailing — 4.9%  

Koninklijke Ahold Delhaize NV

    517,993       14,248,335  

Sligro Food Group NV(a)

    45,176       748,328  
   

 

 

 
      14,996,663  
Food Products — 0.8%  

JDE Peet’s NV

    76,436       2,356,923  
   

 

 

 
Health Care Equipment & Supplies — 2.7%  

Koninklijke Philips NV

    492,873       8,185,633  
   

 

 

 
Hotels, Restaurants & Leisure — 0.6%  

Basic-Fit NV(a)(b)(c)

    46,856       1,788,524  
   

 

 

 
Insurance — 4.9%  

Aegon NV

    1,084,225       4,845,427  

ASR Nederland NV

    90,164       3,679,975  

NN Group NV

    161,033       6,618,128  
   

 

 

 
      15,143,530  
Internet & Direct Marketing Retail — 9.8%  

Just Eat Takeaway.com NV(a)(b)

    131,477       2,187,178  

Prosus NV

    451,856       27,928,971  
   

 

 

 
      30,116,149  
IT Services — 5.8%  

Adyen NV(a)(b)

    11,516       17,770,853  
   

 

 

 
Machinery — 1.0%  

Aalberts NV

    71,611       2,625,975  

Ebusco Holding NV(a)(c)

    30,293       612,109  
   

 

 

 
      3,238,084  
Metals & Mining — 0.4%  

AMG Advanced Metallurgical Group NV

    43,535       1,111,542  
   

 

 

 
Oil, Gas & Consumable Fuels — 0.5%  

Koninklijke Vopak NV

    71,298       1,569,375  
   

 

 

 
Professional Services — 6.3%  

Brunel International NV

    41,241       386,137  

Intertrust NV(a)(b)

    90,488       1,769,582  

Randstad NV

    77,623       3,614,960  

Wolters Kluwer NV

    137,361       13,432,918  
   

 

 

 
      19,203,597  
Semiconductors & Semiconductor Equipment — 24.6%  

ASM International NV

    26,719       7,264,609  

ASML Holding NV

    134,501       65,652,003  

BE Semiconductor Industries NV

    52,271       2,483,068  
   

 

 

 
      75,399,680  
Software — 0.4%  

CM.Com NV(a)(c)

    26,411       313,363  

TomTom NV(a)

    134,139       1,079,774  
   

 

 

 
      1,393,137  
Trading Companies & Distributors — 2.8%  

AerCap Holdings NV(a)(c)

    85,718       3,775,878  

IMCD NV

    34,841       4,806,518  
   

 

 

 
      8,582,396  
   

 

 

 
Total Long-Term Investments — 99.6%
    (Cost: $411,567,493)
        305,531,073  
   

 

 

 

 

 

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

  25


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Netherlands ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Short-Term Securities

 

Money Market Funds — 1.1%  

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.42%(e)(f)(g)

    3,282,598     $ 3,283,583  

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(e)(f)

    20,000       20,000  
   

 

 

 

Total Short-Term Securities — 1.1%
(Cost: $3,301,854)

 

    3,303,583  
   

 

 

 

Total Investments in Securities — 100.7%
(Cost: $414,869,347)

 

    308,834,656  

Liabilities in Excess of Other Assets — (0.7)%

 

    (2,175,453
   

 

 

 

Net Assets — 100.0%

 

  $   306,659,203  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

All or a portion of this security is on loan.

(d) 

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

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

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

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
08/31/21
     Purchases
at Cost
     Proceeds
from Sale
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
08/31/22
     Shares
Held at
08/31/22
     Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 3,087,917      $ 198,298 (a)     $ —       $ (3,959    $ 1,327      $ 3,283,583        3,282,598      $ 113,628 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     120,000               (100,000) (a)                     20,000        20,000        834         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ (3,959    $ 1,327      $ 3,303,583         $ 114,462      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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

    37       09/16/22     $ 1,304     $ (89,288
       

 

 

 

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)

   $      $      $ 89,288      $      $      $      $ 89,288  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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).

 

 

 

26  

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Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Netherlands ETF

 

Futures Contracts (continued)

For the period ended August 31, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

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

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ (212,104    $      $      $      $ (212,104
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

 

              

Futures contracts

   $      $      $ (89,655    $      $      $      $ (89,655
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — long

   $ 963,849  

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

Fair Value Hierarchy as of Period End

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

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

 

                                                                               

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 10,228,263      $ 295,302,809      $ 1      $ 305,531,073  

Money Market Funds

     3,303,583                      3,303,583  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 13,531,846      $ 295,302,809      $ 1      $ 308,834,656  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Liabilities

           

Futures Contracts

   $      $ (89,288    $      $ (89,288
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  27


Table of Contents

Schedule of Investments  

August 31, 2022

  

iShares® MSCI Sweden ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks            
Automobiles — 0.8%            

Volvo Car AB, Class B(a)(b)

    524,976     $ 3,197,846  
   

 

 

 
Banks — 15.4%            

Nordea Bank Abp

    3,001,041       27,825,189  

Skandinaviska Enskilda Banken AB, Class A

    1,431,558       14,270,763  

Svenska Handelsbanken AB, Class A

    1,282,593       10,504,652  

Swedbank AB, Class A

    796,271       10,291,723  
   

 

 

 
      62,892,327  
Biotechnology — 0.8%            

Swedish Orphan Biovitrum AB(a)

    148,808       3,285,951  
   

 

 

 
Building Products — 7.4%            

Assa Abloy AB, Class B

    881,306       17,849,945  

Nibe Industrier AB, Class B

    1,332,245       12,476,130  
   

 

 

 
      30,326,075  
Capital Markets — 1.4%            

EQT AB

    262,158       5,871,771  
   

 

 

 
Commercial Services & Supplies — 0.6%            

Securitas AB, Class B

    275,852       2,415,551  
   

 

 

 
Communications Equipment — 4.7%            

Telefonaktiebolaget LM Ericsson, Class B

    2,568,159       19,205,778  
   

 

 

 
Construction & Engineering — 1.1%            

Skanska AB, Class B

    299,716       4,427,608  
   

 

 

 
Diversified Financial Services — 10.8%            

Industrivarden AB, Class A

    114,884       2,546,051  

Industrivarden AB, Class C

    135,670       2,976,323  

Investor AB, Class A

    438,202       7,283,223  

Investor AB, Class B

    1,603,245       25,269,067  

Kinnevik AB, Class B(a)

    213,417       3,037,139  

L E Lundbergforetagen AB, Class B

    66,993       2,766,892  
   

 

 

 
      43,878,695  
Diversified Telecommunication Services — 2.0%  

Telia Co. AB

    2,336,337       8,223,284  
   

 

 

 
Electronic Equipment, Instruments & Components — 4.3%  

Hexagon AB, Class B

    1,711,460       17,489,472  
   

 

 

 
Entertainment — 0.9%            

Embracer Group AB(a)(b)

    589,134       3,655,262  
   

 

 

 
Health Care Equipment & Supplies — 0.9%            

Getinge AB, Class B

    200,562       3,714,717  
   

 

 

 
Hotels, Restaurants & Leisure — 3.2%            

Evolution AB(c)

    160,864       12,869,645  
   

 

 

 
Household Durables — 0.6%            

Electrolux AB, Class B(b)

    193,362       2,445,073  
   

 

 

 
Household Products — 2.9%            

Essity AB, Class B

    535,687       11,883,285  
   

 

 

 
Industrial Conglomerates — 1.4%            

Investment AB Latour, Class B

    130,437       2,569,516  

Lifco AB, Class B

    204,155       3,171,159  
   

 

 

 
      5,740,675  
Machinery — 26.3%            

Alfa Laval AB

    255,404       6,810,964  
Security   Shares     Value  
Machinery (continued)            

Atlas Copco AB, Class A

    2,363,756     $ 23,994,539  

Atlas Copco AB, Class B

    1,372,657       12,499,124  

Epiroc AB, Class A

    579,320       8,864,068  

Epiroc AB, Class B

    343,580       4,677,440  

Husqvarna AB, Class B

    369,059       2,483,187  

Indutrade AB

    240,643       4,455,743  

Sandvik AB

    938,141       14,626,086  

SKF AB, Class B

    337,699       5,062,975  

Volvo AB, Class A

    176,416       2,936,017  

Volvo AB, Class B

    1,326,878       21,018,131  
   

 

 

 
      107,428,274  
Metals & Mining — 2.1%            

Alleima AB, NVS

    187,377       752,320  

Boliden AB

    240,883       7,713,591  
   

 

 

 
      8,465,911  
Paper & Forest Products — 2.8%            

Holmen AB, Class B

    82,647       3,545,930  

Svenska Cellulosa AB SCA, Class B

    532,422       7,977,547  
   

 

 

 
      11,523,477  
Real Estate Management & Development — 1.6%  

Fastighets AB Balder, Class B(a)

    555,866       3,069,606  

Sagax AB, Class B

    167,712       3,606,980  
   

 

 

 
      6,676,586  
Specialty Retail — 1.6%            

H & M Hennes & Mauritz AB, Class B

    641,688       6,664,141  
   

 

 

 
Tobacco — 3.3%            

Swedish Match AB

    1,340,911       13,461,591  
   

 

 

 
Wireless Telecommunication Services — 1.3%  

Tele2 AB, Class B

    500,012       5,325,011  
   

 

 

 

Total Long-Term Investments — 98.2%
(Cost: $575,255,659)

      401,068,006  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 3.8%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.42%(d)(e)(f)

    9,746,013       9,748,937  

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(d)(e)

    5,850,000       5,850,000  
   

 

 

 

Total Short-Term Securities — 3.8%
(Cost: $15,595,231)

      15,598,937  
   

 

 

 

Total Investments in Securities — 102.0%
(Cost: $590,850,890)

      416,666,943  

Liabilities in Excess of Other Assets — (2.0)%

 

    (8,112,002
   

 

 

 

Net Assets — 100.0%

    $ 408,554,941  
   

 

 

 

 

(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.

 

 

28  

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


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Sweden ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
08/31/21
     Purchases
at Cost
     Proceeds
from Sale
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
08/31/22
     Shares
Held at
08/31/22
     Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional,
SL Agency Shares

   $      $ 9,746,820 (a)       $        —      $ (1,589    $ 3,706      $ 9,748,937        9,746,013      $ 61,154 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     260,000        5,590,000 (a)                            5,850,000        5,850,000        32,762         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ (1,589    $ 3,706      $ 15,598,937         $ 93,916      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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

           

OMXS30 Index

     420        09/16/22      $ 7,533      $ (532,520
           

 

 

 

Forward Foreign Currency Exchange Contracts

 

           
Currency Purchased      Currency Sold      Counterparty    Settlement Date            Unrealized
Appreciation
(Depreciation)
 

USD

     2,746,911           EUR        2,584,364      Standard Chartered Bank      09/16/22         $ 147,373  

USD

     492,292           SEK        4,886,739      Standard Chartered Bank      09/16/22           33,566  
                       

 

 

 
                          180,939  
                       

 

 

 

EUR

     283,000           USD        294,854      Standard Chartered Bank      09/16/22           (10,192

SEK

     25,160,725           USD        2,529,663      Standard Chartered Bank      09/16/22           (167,788