iShares Trust

·   iShares Global Comm Services ETF | IXP | NYSE Arca

·   iShares Global Consumer Discretionary ETF | RXI | NYSE Arca

·   iShares Global Consumer Staples ETF | KXI | NYSE Arca

·   iShares Global Energy ETF | IXC | NYSE Arca

·   iShares Global Financials ETF | IXG | NYSE Arca

·   iShares Global Healthcare ETF | IXJ | NYSE Arca

·   iShares Global Industrials ETF | EXI | NYSE Arca

·   iShares Global Materials ETF | MXI | NYSE Arca

·   iShares Global Tech ETF | IXN | NYSE Arca

·   iShares Global Utilities ETF | JXI | NYSE Arca

Table of Contents

Market Overview

iShares Trust

Global Market Overview

Global equity markets advanced during the 12 months ended March 31, 2022 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 7.28% in U.S. dollar terms for the reporting period.

Stocks were supported by economic recovery in most regions of the world, even as significant challenges emerged. The global economy continued to rebound from the impact of restrictions imposed at the beginning of the pandemic, as mitigation and adaptation allowed most activity to continue. Nonetheless, two highly contagious COVID-19 variants appeared during the reporting period, causing sharp increases in cases in many countries and in some instances leading to new restrictions, which acted as a drag on growth. Inflation was high in many countries, reducing consumers’ purchasing power and leading many central banks to tighten monetary policy. Russia’s invasion of Ukraine late in the reporting period presented a further challenge to the global economy, disrupting markets in important commodities such as oil, natural gas, and wheat.

The U.S. economy grew robustly, powered primarily by consumers, who were supported by strong household balance sheets. Prior to the beginning of the reporting period, fiscal stimulus and business closures led to record-high personal savings rates. This allowed consumers to spend at an elevated level throughout much of the reporting period, as pent-up demand was released. The ensuing acceleration in economic activity allowed the U.S. to reach and then surpass its pre-pandemic output level. Hiring increased as businesses restored capacity. Consequently, unemployment decreased substantially, falling to 3.6% in March 2022.

Rising inflation led to a shift in policy from the U.S. Federal Reserve Bank (“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 in the second half of the reporting period in an attempt to prevent runaway inflation. The Fed slowed and then ended its bond-buying activities and discussed plans to begin reducing its balance sheet by selling bonds later in 2022. In March 2022, it raised short-term interest rates, and indicated that further increases could be necessary.

Stocks in Europe posted modest gains, helped by a steadily growing economy and increasing vaccinations. However, inflation increased significantly, and Russia’s invasion of Ukraine negatively impacted equities. Russia is an important trading partner with many other European countries, and new sanctions imposed limits on some 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”) maintained ultra-low interest rates but started to wind down its bond buying programs.

Despite relatively low inflation by global standards, Asia-Pacific stocks declined significantly. Chinese stocks endured substantial declines, driving much of the negative performance in the region. Regulatory interventions by the Chinese government weighed on equity markets, particularly in the information technology sector. While China’s economy continued to expand at a solid pace, COVID-19 cases rose sharply late in the reporting period and analysts became concerned that the subsequent lockdowns would constrain growth.

Investment Objective

The iShares Global Comm Services ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the communication services sector, as represented by the S&P Global 1200 Communication Services 4.5/22.5/45 Capped Index^TM (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

(AT NET ASSET VALUE)

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

Index performance through June 23, 2019 reflects the performance of the S&P Global 1200 Communication Services Sector IndexTM. Index performance beginning on June 24, 2019 reflects the performance of S&P Global 1200 Communication Services 4.5/22.5/45 Capped IndexTM.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 25 for more information.

Expense Example

Portfolio Management Commentary

Global communication services stocks declined markedly during the reporting period amid investor concerns surrounding the effects of government regulatory policies and expectations of tighter monetary policy by central banks. Revenues were negatively impacted by users spending less time on social media platforms, and expenditures on advertising declined amid supply chain disruptions and rising inflation. Investors grew concerned that changes to corporate policies designed to increase user privacy would make targeted advertising more difficult, ultimately reducing sales. Increased competition in the streaming video market led to reduced revenues, weighing on global communication services stocks.

Chinese communication services stocks, which represented 56% of the Index on average during the reporting period, detracted the most from the Index’s return. The media and entertainment industry led the decline amid investor concern surrounding the impact of new regulations designed to address data security and anticompetitive practices on large technology companies. The Chinese government announced a limit to the amount of time that those under 18 years of age were permitted to play video games, weighing heavily on interactive media and services stocks. A resurgence of COVID-19 infections, disruptions from the war in Ukraine, and the possibility of a large fine due to money laundering toward the end of the reporting period further pressured the industry.

Stocks in the U.S. also detracted from the Index’s return, primarily in the diversified telecommunication services industry. Despite broad inflationary trends, strong competition in the market for mobile data plans led to lower prices, reducing user-generated revenues. Investors also grew concerned about the trajectory for customer growth in the industry. Furthermore, regulatory warnings surrounding the possible effects of 5G technology on aviation led to 5G rollout delays.

On the upside, Canadian telecommunication services companies contributed modestly to the Index’s performance. Revenues rose due to an increase in subscriptions for communications services and heightened investor optimism as the industry upgraded to fiber optic technology and continued the rollout of 5G cellular service.

Portfolio Information

Investment Objective

The iShares Global Consumer Discretionary ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the consumer discretionary sector, as represented by the S&P Global 1200 Consumer Discretionary (Sector) Capped Index^TM (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

(AT NET ASSET VALUE)

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

Index performance through September 22, 2019 reflects the performance of the S&P Global 1200 Consumer Discretionary Sector Index^TM. Index performance beginning on September 23, 2019 reflects the performance of the S&P Global 1200 Consumer Discretionary (Sector) Capped Index^TM.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 25 for more information.

Expense Example

Portfolio Management Commentary

Global consumer discretionary stocks declined during the reporting period, led by China, which represented approximately 8% of the Index on average for the reporting period. The country experienced its worst Covid-19 outbreak since the beginning of the coronavirus pandemic. Stocks of Chinese internet and direct marketing companies detracted the most. The nation’s largest online retailer substantially lowered its sales outlook amid expectations for its slowest growth in almost a decade. Sweeping regulatory interventions by the Chinese government weighed heavily on Chinese internet and direct marketing stocks. Online consumer spending on physical goods in China grew at the slowest pace in six years, and overall retail consumption remained subdued as the broader economy continued to operate under strict public health regulations, including lockdowns in coronavirus hot spots.

Stocks in Germany also detracted from the Index’s return, declining late in the reporting period amid Russia’s invasion of Ukraine. Supply chain difficulties weighed on the country’s largest automobile manufacturer, which relies in part on components produced in Ukraine. A German food delivery company also detracted from the Index’s performance, as investors throughout Europe spent significantly less on online food delivery. In addition, the country’s leading shoe company faced a Chinese boycott of certain Western brands and a pandemic-related closure of key factories in Vietnam.

Conversely, stocks in the U.S., representing about 55% of the Index on average for the reporting period, contributed to the Index’s return. In particular, the world’s largest electric car manufacturer advanced significantly as deliveries to dealerships from its plants repeatedly exceeded expectations, boosting the company to the first profitable fiscal year in its history. Overall, U.S. sales of all-electric and hybrid electric vehicles increased by 97% in 2021 compared with the prior year, while light-duty vehicle sales increased just 3%. Most automobile executives expect electric vehicle sales to account for more than half of all U.S. car sales by 2030.

Portfolio Information

Investment Objective

The iShares Global Consumer Staples ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the consumer staples sector, as represented by the S&P Global 1200 Consumer Staples (Sector) Capped Index^TM (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

(AT NET ASSET VALUE)

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

Index performance through June 23, 2019 reflects the performance of the S&P Global 1200 Consumer Staples Sector Index^TM. Index performance beginning on June 24, 2019 reflects the performance of the S&P Global 1200 Consumer Staples (Sector) Capped Index^TM.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 25 for more information.

Expense Example

Portfolio Management Commentary

Global consumer staples stocks advanced for the reporting period, led by large U.S. consumer staples companies amid gains in broader global equity markets. As coronavirus pandemic restrictions slowly but steadily eased in most parts of the world, consumer staples manufacturers and the stores they supply benefited from higher demand for an array of basic consumer goods. As inflation in the U.S. reached its highest level since the early 1980s, producers and manufacturers throughout the sector experienced rising prices for raw materials amid related inventory shortfalls and supply-chain disruptions. Nevertheless, they generally managed to protect their profit margins by passing along the majority of the cost increases to consumers.

U.S. equities, which represented approximately 54% of the Index on average for the reporting period, contributed the most to the Index’s return. U.S. soft drink companies advanced considerably as their sales and profits rebounded from pandemic-weakened demand prior to the reporting period. A large agricultural product conglomerate also advanced amid price increases for grain, meat, sugar, and other food commodities, as high input costs and volatile weather conditions weighed on production. Meanwhile, food product companies and the hypermarkets and supercenters they supply benefited from a steady increase in retail traffic amid loosening pandemic restrictions in many parts of the country.

Stocks in Switzerland and Canada also contributed to the Index’s performance. In Switzerland, a large food products company exceeded sales and earnings expectations as price increases offset rising input costs. In Canada, food retailers, including convenience stores, also reported higher sales and earnings amid strong sales for fresh, prepared foods and packaged beverages, in addition to healthy profit margins on fuel sales.

Conversely, Japanese and German equities detracted from the Index’s return. Japanese makers of personal products detracted from the Index’s performance as Japanese stocks stayed essentially flat, and the population in their primary domestic market continued to shrink. Similarly, German household products companies detracted as supply chain problems led to downgraded earnings expectations.

Portfolio Information

Investment Objective

The iShares Global Energy ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the energy sector, as represented by the S&P Global 1200 Energy Sector Index^TM (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

(AT NET ASSET VALUE)

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

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 25 for more information.

Expense Example

Portfolio Management Commentary

Global energy stocks advanced sharply during the reporting period, as oil prices soared on renewed demand and fears of supply constraints following Russia’s invasion of Ukraine. Oil prices began the reporting period at levels similar to those last seen prior to the beginning of the coronavirus pandemic, having recovered from a sharp decrease as the virus first began to spread. Oil prices rallied as vaccinations against COVID-19 rolled out and the global economy recovered. Prices continued to climb throughout 2021 as pandemic-related restrictions eased, travel increased, and oil stockpiles dropped. Members of OPEC and other oil-producing countries gradually increased oil supply throughout 2021, but demand outstripped supply, sending prices higher. U.S. oil producers, which curtailed output in 2020 when prices slid, were slow to renew production in 2021 when economic activity and demand rebounded. Oil prices briefly faltered when the emergence of new coronavirus variants raised fears of renewed shutdowns and weakened global economic demand.

Oil prices resumed their upward climb in the beginning of 2022, however, and by early March hit their highest levels in 14 years after the U.S. and its European allies began to consider banning oil imports from Russia following the invasion of Ukraine. Russia is the world’s top exporter of oil and oil products.

Oil, gas, and consumable fuels stocks in the U.S., Canada, and the U.K. contributed the most to the Index’s return, as stock prices in the energy sector hit their highest levels in years following the rally in oil prices. In a marked turnaround from 2020, leading energy companies posted stronger earnings and, flush with excess cash, rewarded shareholders by buying back their own stock and raising dividends. The higher oil prices and free cash flow led some companies to expand plans to invest in new oil production over future years although most continued to maintain current output plans. Some companies also set new environmental targets including fewer greenhouse gas emissions and a reduction in freshwater usage in oil extraction operations.

Portfolio Information

Investment Objective

The iShares Global Financials ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the financials sector, as represented by the S&P Global 1200 Financials Sector Index^TM (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

(AT NET ASSET VALUE)

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 25 for more information.

Expense Example

Portfolio Management Commentary

Global financials stocks advanced for the reporting period. Companies in the financials sector benefited from growing economic optimism, along with an improving job market and increased stock market activity, which helped raise revenues. Anticipation of interest rate increases, which benefit depositary institutions and lenders, supported financials stocks later in the year, amid renewed concerns over inflation.

Financials stocks in the U.S., which constituted approximately 52% of the Index on average during the reporting period, were the leading contributor to the Index’s return. Diversified financials companies led the advance, benefiting from exposure to a variety of industries that saw significant post-pandemic recoveries, including railroads and homebuilding and information technology firms. A loosening of global travel restrictions drove a substantial rise in consumer spending via credit cards, which helped increase revenues.

The insurance industry also advanced. Companies specializing in property and casualty insurance were able to maintain rate increases and attract new customers. This growth helped offset the impacts of a return to pre-pandemic transportation habits and financial losses from catastrophes, which negatively affected revenues. Insurance brokers benefited from strong and consistent organic growth across multiple specialties, namely commercially focused products and policies for other insurers.

The U.S. banking industry also contributed to the Index’s return as trading and investment banking activity surged through much of the reporting period. However, increased operating costs and limited revenue growth challenged profits late in the reporting period. Consistent loan repayments from consumers and businesses enabled banks to release billions of dollars in loan default reserves, improving revenues further.

Stocks in the Canadian banking sector advanced for the reporting period. Rising confidence in the economy helped boost commercial and retail lending activity. Canadian banks also benefited from the U.S. economic recovery, as institutions with American retail operations reported notable growth in those business units.

Portfolio Information

Investment Objective

The iShares Global Healthcare ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the healthcare sector, as represented by the S&P Global 1200 Health Care Sector Index^TM (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

(AT NET ASSET VALUE)

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 25 for more information.

Expense Example

Portfolio Management Commentary

Global healthcare stocks advanced strongly during the reporting period. New variants of the coronavirus drove substantial demand for vaccines and treatments, to the benefit of manufacturers and distributors alike.

U.S. healthcare stocks, which comprised, on average, 70% of the index during the reporting period, contributed the most to the Index’s return. Within the U.S. healthcare providers and services industry, managed healthcare companies showed notable revenue growth through higher premiums and an increase in insurance memberships, primarily through programs tied to government benefits. Surges in infection rates linked to new coronavirus variants led to a drop-off in preventive and elective medical procedures, reducing costs and offsetting the fiscal impact of increased COVID-19 care and testing. The healthcare services industry also benefited as pharmacies received a substantial boost in sales from serving as distribution sites for coronavirus vaccines and tests.

U.S. companies specializing in healthcare equipment also reported substantial increases in revenue, namely through the provision of products essential to the manufacturing of tests and vaccines. These companies accounted for a large portion of the market share for coronavirus-related bioprocessing activity. They also benefited from high growth across multiple business lines, while making select acquisitions to expand into new fields.

The U.S. pharmaceuticals industry also advanced, with additional contribution to the Index’s return from Swiss and U.K. drugmakers amid strong global demand for coronavirus vaccines and treatments. U.S. vaccines drove substantial annual sales in 2021, including one vaccine that set a record for the highest single-year sales of any pharmaceutical product. In addition, strong demand for antiviral medications targeted at the coronavirus bolstered revenues. Companies that produced antibody medications also gained, though concerns about efficacy against the Omicron strain impacted sales of some drugs. The Swiss pharmaceuticals industry also benefited from demand for antiviral treatments as well as strength in development of cell-based therapies to treat various diseases. In the U.K., although vaccines added to revenues, existing product strength, acquisition activity, and favorable late-stage trial results drove industry gains. On the downside, Japanese healthcare stocks detracted modestly from performance.

Portfolio Information

Investment Objective

The iShares Global Industrials ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the industrials sector, as represented by the S&P Global 1200 Industrials Sector Index^TM (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

(AT NET ASSET VALUE)

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 25 for more information.

Expense Example

Portfolio Management Commentary

Global industrials stocks advanced modestly for the reporting period as a rebound in manufacturing activity and product demand encountered headwinds from rising costs for raw materials, supply-chain issues, and staffing shortages. U.S. industrials stocks, which comprised approximately 53% of the Index on average during the reporting period, contributed the most to the Index’s performance. U.S. commercial and professional services companies grew steadily, recovering from a slowdown in demand from industrial and commercial customers who required fewer services amid pandemic-related closures. Companies such as waste haulers sustained profitability in part due to diversified revenue streams and limited competition, along with expanding business from residential customers.

U.S. transportation companies contributed meaningfully to the Index’s return. Railroad companies increased revenues through price increases and operational efficiencies, diminishing the impact of reduced carloads stemming from global supply-chain shortages. Firms specializing in air freight and logistics also raised prices to help make residential deliveries more profitable amid increased demand. The U.S. capital goods industry also contributed. Aerospace and defense companies benefited from increased demand for commercial airplane engine sales and maintenance amid an increase in air travel activity from pandemic-induced lows. The war in Ukraine further boosted defense stocks, as the U.S. sent weapons to aid Ukraine, and investors anticipated a rise in global defense budgets.

Companies in the U.K. industrials sector also contributed. The professional services industry benefited from growth across multiple business lines. A return to in-person events led to notable increases in revenue for exhibition-focused divisions.

On the downside, Japanese industrials sector stocks were the leading detractors from the Index’s performance. An acute global semiconductor shortage left companies in the machinery industry unable to meet demand. Electrical equipment makers also felt the impact of chip shortages, while increases in the costs of raw goods, such as copper, created additional headwinds.

German industrials sector stocks also weighed on performance. These conglomerates joined other major global firms in halting deliveries to and new business with Russian companies, which previously formed a small yet notable part of their annual sales.

Portfolio Information

Investment Objective

The iShares Global Materials ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the materials sector, as represented by the S&P Global 1200 Materials Sector Index^TM (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

(AT NET ASSET VALUE)

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 25 for more information.

Expense Example

Portfolio Management Commentary

Global materials stocks advanced during the reporting period amid growing demand for commodities as governments stimulated spending to boost the economic recovery from the coronavirus pandemic and manufacturing activity resumed. Some commodities prices surged late in the reporting period as the Russian invasion of Ukraine and sanctions imposed by Western countries disrupted trade flows.

U.S. stocks contributed the most to the Index’s return, led by the metals and mining sector, particularly copper mining and steel producing companies. Copper prices hit record highs late in the reporting period on concerns over tightening supply. The war in Ukraine added to supply constraints already pressured by weaker output from Chile, which is responsible for more than a quarter of the world’s copper production. Steel prices rallied late in the reporting period as the Russian war in Ukraine disrupted supply from both countries.

The U.S. chemicals industry, particularly fertilizer manufacturers, was another source of strength. Sanctions on Russia sent fertilizer prices to record highs, as Russia is the world’s largest supplier to the global market. Higher prices for natural gas, a key part of nitrogen-based fertilizer production, also raised fertilizer prices.

The U.K. metals and mining sector also contributed to the Index’s performance. U.K. mining companies posted record earnings from rising raw materials prices and used proceeds to reward shareholders with increased dividends and stock buybacks. Higher mining costs, driven by rising energy expenses and the tightening labor market, partly offset the gains from increased commodities prices. Higher energy costs also led some smelting operations to be discontinued.

Canadian metals and mining companies also advanced during the reporting period, including companies involved in fertilizer production and in extracting gold and copper. The war in Ukraine drove up prices for commodities including fertilizer and copper, which soared to record highs. Rising levels of inflation also added to the higher price for gold. On the downside, chemical companies in Germany and Japan detracted from the Index’s return as rising costs for energy and raw materials blunted the outlook for earnings.

Portfolio Information

Investment Objective

The iShares Global Tech ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the technology sector, as represented by the S&P Global 1200 Information Technology Sector Index^TM (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

(AT NET ASSET VALUE)

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 25 for more information.

Expense Example

Portfolio Management Commentary

Global information technology stocks advanced sharply during the reporting period, driven primarily by large companies positioned to benefit from the increasing role that technology played in business and daily life during the pandemic. Increased time at home due to pandemic restrictions and a subsequent shift toward remote work drove strong demand for computing products for working and learning at home, as well as for home entertainment. Investor optimism grew that revenues from digital services would continue to rise as technology became more integrated into daily life. The pandemic accelerated ongoing trends of firms migrating to the cloud, bolstering demand for cloud and computing services and lifting sales of personal and commercial productivity software.

The U.S., which represented approximately 80% of the Index on average for the reporting period, was the largest contributor to the Index’s return, led by the technology hardware and equipment industry. Retail sales of computing devices increased, leading to record earnings despite ongoing supply chain challenges. Increased demand for digital services, including music and streaming video, drove rising subscription revenues, contributing to returns. New product releases, especially cell phones with enhanced features, further supplemented revenues. Strong sales of wearable technologies such as earbuds also contributed to sales growth.

U.S. software and services stocks also contributed solidly to the Index’s return. Growth in video game console sales and investor optimism about new products and services, along with industry consolidation, bolstered gains. Strength in sales of hardware, including personal computers and tablets, drove increased revenue. Volatility in the labor market increased traffic on a web-based career platform, leading to sharply higher advertising revenues.

On the downside, the South Korean technology hardware and equipment industry modestly detracted from the Index’s return. Despite rising chip prices, stocks declined due to reduced smartphone sales amid component shortages and investor concern that prices for memory chips would fall. Growth in demand for some types of consumer electronics slowed as economic reopening continued in many parts of the world.

Portfolio Information

Investment Objective

The iShares Global Utilities ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the utilities sector, as represented by the S&P Global 1200 Utilities (Sector) Capped 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

(AT NET ASSET VALUE)

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 25 for more information.

Expense Example

Portfolio Management Commentary

Global utilities stocks advanced alongside broader equity markets during the reporting period as coronavirus pandemic restrictions generally eased and global economies rebounded. Consequently, demand for electricity and heating sources increased, aiding earnings gains across much of the sector. Stocks in global utilities declined late in the reporting period, amid investors’ concerns that central banks worldwide, including the Fed, would raise interest rates to combat surging global inflation. Indeed, the Fed raised rates near the end of the reporting period for the first time since 2018 and signaled that it would do so again throughout 2022. Higher bond yields can dampen demand for utilities, as utilities, which have relatively high dividend yields, and bonds are both sought after by income-oriented investors.

U.S. equities, which accounted for about 61% of the Index on average for the reporting period, contributed substantially to the Index’s return, led by stocks of electric utilities. U.S. electricity prices reached a 13-year high as pandemic restrictions eased and severe weather led to energy disruptions. Prices for natural gas and coal, primary sources of power generation for U.S. electricity, also rose considerably in 2021 as economic growth recovered and demand increased. Electricity providers’ earnings rose despite rising input costs, as they were able to increase rates while benefiting from investments to improve services.

U.K. and Canadian equities also contributed to the Index’s return. A large U.K. multi-utilities company helped boost the Index’s return as energy prices rose. A Canadian electricity utilities company, which generates the majority of its revenue in the U.S., benefited from similar market conditions as U.S. utilities. Stock in another Canadian utilities company rose in the latter half of the reporting period after it announced its largest-ever capital spending plan, designed to substantially reduce its greenhouse gas emissions. In contrast, energy providers across western and northern Europe detracted from the Index’s performance. In particular, in Italy, costs related to climate protection initiatives raised concerns about the electrical utilities credit profiles.

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. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

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

Shareholder Expenses

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 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 a 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.