iShares U.S. ETF Trust

Table of Contents

Market Overview

iShares U.S. ETF Trust

Global Market Overview

Commodities finished the 12-month reporting period ended October 31, 2023 (the “reporting period”) lower, based on the -9.40% return for the S&P GSCI Index, a broad measure of commodity market performance.

Commodity prices chopped lower through the first half of the reporting period. During this time, the asset class came under pressure from the combination of rising interest rates and worries that the banking crisis of March 2023 would weigh on economic growth. In addition, China’s economy did not recover to the extent that investors had been expecting following the end of the nation’s extended COVID-19 lockdowns. The market experienced uneven trading over the subsequent three months and finished July only slightly above its March low. However, a rally over the final three months of the period helped the index make up for its earlier losses. The gains were driven by supply constraints, particularly in the energy market, as well as the prospect of instability in the Middle East. Commodities also benefited from renewed demand for inflation protection in this time, as well as signs that the world’s major central banks were moving closer to the point at which they could shift to neutral monetary policies.

Despite continued supply discipline by both energy companies and OPEC+Russia, crude oil underperformed the index. Still, it finished October 2023 well off of its previous lows thanks to a late rally that was driven by declining supplies and tension in the Middle East. Natural gas lagged considerably, due largely to elevated supply and weaker-than-expected demand.

Industrial metals, after performing very well in the first three months of the period on optimism related to China’s reopening, subsequently declined due to concerns about the potential impact slowing growth could have on demand. In addition, China’s economy did not rebound to the extent investors had been anticipating. Still, the category finished in positive territory and slightly outpaced the index.

Precious metals were the top performing major segment of the commodity market, with gold and silver both logging meaningful gains. The bulk of the positive return occurred in the first half of the period, when the U.S. Dollar weakened, and investors were looking ahead to the point at which the U.S. Federal Reserve (Fed) could stop raising interest rates. Precious metals lagged somewhat in the span from May to September 2023 due to the prospect of additional Fed tightening, a recovery in the Dollar, and rising real (after-inflation) interest rates. However, the category recaptured some of its previous outperformance in October following the outbreak of violence in the Middle East and ultimately closed with a solid gain.

Agricultural commodities also delivered a positive return and outpaced the index. Generally speaking, the category was supported by the combination of weaker-than-expected production and solid demand. It also has lower sensitivity to broader economic trends, which was a tailwind in the environment of slowing growth.

Investment Objective

The iShares Bloomberg Roll Select Commodity Strategy ETF (the “Fund”) seeks to track the investment results of an index composed of a broad range of commodity exposures with enhanced roll selection, on a total return basis, as represented by the Bloomberg Roll Select Commodity Total Return 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

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was April 3, 2018. The first day of secondary market trading was April 5, 2018.

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

Expense Example

Portfolio Management Commentary

The Fund uses a mix of commodities futures designed to provide total returns consistent with investment in a broad variety of commodities.

Given continued strength in economic growth and inflation that remained above its 2% target, the U.S. Federal Reserve (the Fed) raised its benchmark overnight lending rate six times over the course of the 12-month period, bringing the fed funds target from a range of 3.0-3.25% to 5.25%-5.50%. Against this policy backdrop, U.S. consumer price inflation generally moved lower over the period, posting a year-over-year increase of 3.7% in September of 2023 versus 8.2% 12 months earlier.

Significant portfolio shifts during the period included increased exposure to gold, along with reduced exposure to natural gas, corn and soybeans. At the end of the period, the largest exposures were to gold, West Texas Intermediate crude oil, natural gas and Brent crude oil.

The Fund’s exposure to natural gas was the most significant driver of negative performance for the 12 months ended October 31, 2023. Following their price peak in November of 2022, natural gas prices began to collapse due to warmer than average U.S. temperatures and increased U.S. natural gas production. Agriculture was also down for the period, most notably corn and wheat. Heavy rains in Argentina boosted corn supply prospects while U.S. corn harvesting levels surpassed five-year averages. In addition, U.S. corn shipments to China weakened as China increased its corn sourcing from Brazil. Wheat supply has been strong, with Russia’s push to export the grain helping to drive prices to a three-year low.

Portfolio Information

Investment Objective

The iShares Commodity Curve Carry Strategy ETF (the “Fund”) seeks to track the investment results of an index composed of commodities with the top ten highest ranking roll yields, on a total return basis, selected from a broad commodity universe, as represented by the ICE BofA Commodity Enhanced Carry Total Return 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

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was September 1, 2020. The first day of secondary market trading was September 3, 2020.

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

Expense Example

Portfolio Management Commentary

The Fund finished the reporting period in positive territory, reflecting higher prices for many commodities against a backdrop of historically high inflation. The Fund gains exposure to a concentrated mix of commodities futures exhibiting positive carry (the difference between the price of an expiring futures contract and its replacement) by investing in commodity total return swaps. During the reporting period, the Fund decreased its exposure to “hard” commodities used in agricultural production while increasing exposure to “soft” commodities such as wheat, corn and soybeans. At the end of the reporting period, the Fund’s largest exposures included Brent crude oil, copper, and soybeans.

Given continued strength in economic growth and inflation that remained above its 2% target, the U.S. Federal Reserve (the Fed) raised its benchmark overnight lending rate six times over the course of the 12-month period, bringing the fed funds target from a range of 3.0-3.25% to 5.25%-5.50%. Against this policy backdrop, U.S. consumer price inflation generally moved lower over the period, posting a year-over-year increase of 3.7% in September of 2023 versus 8.2% 12 months earlier.

Exposure via energy futures to commodities such as Brent crude oil, gasoil and West Texas crude oil were the largest contributors to the Fund’s performance over the 12 months, as energy prices were supported by OPEC Plus member production cuts.

Portfolio Information

Investment Objective

The iShares Gold Strategy ETF (the “Fund”) seeks to track the investment results of an index that provides exposure, on a total return basis, to the price performance of gold, as represented by the Bloomberg Composite Gold 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

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was June 6, 2018. The first day of secondary market trading was June 8, 2018.

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

Expense Example

Portfolio Management Commentary

The Fund finished the reporting period in positive territory, reflecting the increase in the price of gold over the 12 months. The Fund’s performance was approximately in line with the broader gold market, as represented by the Bloomberg Composite Gold Index, due to its composition as a mix of gold futures and exchange-traded products linked to or backed by gold.

Given continued strength in economic growth and inflation that remained above its 2% target, the U.S. Federal Reserve (the Fed) raised its benchmark overnight lending rate six times over the course of the 12-month period, bringing the fed funds target from a range of 3.0-3.25% to 5.25%-5.50%. In addition, the Fed indicated that rates were likely to stay “higher for longer”. Against this backdrop, Treasury yields finished the period higher across the maturity spectrum. To illustrate, the two-year Treasury yield rose from 4.51% to 5.07% while the 10-year yield rose from 4.10% to 4.88%. U.S. consumer price inflation generally moved lower over the period, posting a year-over-year increase of 3.7% in September of 2023 versus 8.2% 12 months earlier.

The price of gold finished the period higher despite rising yields on U.S. bonds, which generally reduce gold’s relative attractiveness as an investment as the metal does not pay interest. Gold was supported by a relative stabilizing of the U.S. dollar relative to other currencies. Because gold is priced in U.S. dollars, a rising dollar makes it more expensive for foreign investors to purchase gold. The demand backdrop for gold was mixed over the period, while gold ETFs saw outflows. Gold prices spiked late in the period as the conflict between Israel and Hamas escalated.

Portfolio Information

Investment Objective

The iShares GSCI Commodity Dynamic Roll Strategy ETF (the “Fund”) seeks to track the investment results of an index composed of a broad range of commodity exposures with enhanced roll selection, on a total return basis, as represented by the S&P GSCI Dynamic Roll (USD) Total Return 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

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was October 15, 2014. The first day of secondary market trading was October 16, 2014.

Index performance through January 30, 2020 reflects the performance of the S&P GSCI Dynamic Roll Reduced Energy 70/30 Futures/Equity Blend Total Return Index. Index performance beginning on January 31, 2020 reflects the performance of the S&P GSCI Dynamic Roll (USD) Total Return 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

Portfolio Management Commentary

The Fund uses a mix of commodities futures designed to provide total returns consistent with investment in a broad variety of commodities.

Given continued strength in economic growth and inflation that remained above its 2% target, the U.S. Federal Reserve (the Fed) raised its benchmark overnight lending rate six times over the course of the 12-month period, bringing the fed funds target from a range of 3.0-3.25% to 5.25%-5.50%. Against this policy backdrop, U.S. consumer price inflation generally moved lower over the period, posting a year-over-year increase of 3.7% in September of 2023 versus 8.2% 12 months earlier.

Exposure via futures to commodities such as sugar, live cattle and gold were the largest contributors to the Fund’s performance over the 12 months. Conversely, exposure to natural gas, wheat and corn weighed most heavily on performance. Adverse weather and supply concerns have impacted agricultural commodity futures; in this vein, poor growing conditions sustained higher prices for sugar. Gold performed well despite a stronger dollar, positive stock market performance and rising interest rates. The performance leadership of gold relative to industrial metals, grains and energy suggested a recessionary path for the economy.

Portfolio Information

The iShares Transition-Enabling Metals ETF (the “Fund”) seeks to track the investment results of an index that provides exposure to metals that are essential to a wide range of clean energy technologies supporting the transition to a low-carbon economy, as represented by the ICE Clean Energy Transition Metals 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

For the fiscal period ended October 31, 2023, the Fund did not have six months of performance and therefore line graphs are not presented.

The inception date of the Fund was September 26, 2023. The first day of secondary market trading was September 28, 2023.

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

Expense Example

Portfolio Information

About Fund Performance

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

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

Disclosure of Expenses

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

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

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

Affiliates

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

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Derivative Financial Instruments Categorized by Risk Exposure

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

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

Average Quarterly Balances of Outstanding Derivative Financial Instruments

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

See notes to Consolidated Financial Statements

Affiliates

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

OTC Total Return Swaps

Reference Entity

The ICE BofA Commodity Enhanced Carry Total Return Index consists of futures contracts under each counterparty. The following table represents the individual long positions and related weighting of the future contracts underlying the ICE BofA Commodity Enhanced Carry Total Return Index as of October 31, 2023.

Balances Reported in the Statements of Assets and Liabilities for Total Return Swaps

Derivative Financial Instruments Categorized by Risk Exposure

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