LOGO

  MARCH 31, 2022

 

 

   

  

2022 Annual Report

 

 

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


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of March 31, 2022 saw a continuation of the resurgent growth that followed the initial coronavirus (or “COVID-19”) pandemic reopening, albeit at a slower pace. The global economy weathered the emergence of several variant strains and the resulting peaks and troughs in infections amid optimism that increasing vaccinations and economic adaptation could help contain the pandemic’s disruptions. However, rapid changes in consumer spending led to supply constraints and elevated inflation. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the invasion has presented challenges for both investors and policymakers.

Equity prices were mixed, as persistently high inflation drove investors’ expectations for higher interest rates, which particularly weighed on relatively high valuation growth stocks and economically sensitive small-capitalization stocks. Overall, small-capitalization U.S. stocks declined, while large-capitalization U.S. stocks posted a strong advance. International equities from developed markets gained slightly, although emerging market stocks declined, 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 during the reporting period as the economy expanded rapidly and inflation reached its highest annualized reading in decades. The corporate bond market also faced inflationary headwinds, although the improving economy assuaged credit concerns and high-yield corporate bonds consequently declined less than investment-grade corporate bonds.

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is growing faster than expected, raised interest rates in March 2022, the first increase of this business cycle. Furthermore, the Fed wound down its bond-buying programs and raised the prospect of reversing the flow and reducing its balance sheet. Continued high inflation and the Fed’s new tone led many analysts to anticipate that the Fed will continue to raise interest rates multiple times throughout the year.

Looking ahead, however, the horrific war in Ukraine has significantly clouded the outlook for the global economy, leading to major volatility in energy and metal markets. Sanctions on Russia, Europe’s top energy supplier, and general wartime disruption are likely to drive already-high commodity prices even higher. Sharp increases in energy prices will exacerbate inflationary pressure while also constraining economic growth. Combating inflation without stifling a recovery, while buffering against ongoing supply and price shocks amid the ebb and flow of the pandemic, 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 err on the side of protecting employment, even at the expense of higher inflation.

In this environment, we favor an overweight to equities, as valuations have become more attractive and inflation-adjusted interest rates remain low. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long term. We favor U.S. equities due to strong earnings momentum, while Japanese equities should benefit from supportive monetary and fiscal policy. We are underweight credit overall, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities for additional yield. We believe that international diversification and a focus on sustainability and quality can help provide portfolio resilience.

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.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

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

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

     5.92%    15.65%
   

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

  (5.55)   (5.79)
   

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

  (3.38)   1.16
   

Emerging market equities
(MSCI Emerging Markets Index)

  (8.20)   (11.37) 
   

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

  0.05   0.07
   

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

  (6.04)   (3.31)
   

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

  (5.92)   (4.15)
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

  (5.55)   (4.47)
   

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

  (4.16)   (0.66)
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

2  

T H I S   P A G 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

 

 

      Page  

The Markets in Review

     2  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     25  

Shareholder Expenses

     25  

Schedules of Investments

     26  

Financial Statements

  

Statements of Assets and Liabilities

     62  

Statements of Operations

     65  

Statements of Changes in Net Assets

     68  

Financial Highlights

     73  

Notes to Financial Statements

     83  

Report of Independent Registered Public Accounting Firm

     95  

Important Tax Information (Unaudited)

     96  

Statement Regarding Liquidity Risk Management Program

     97  

Supplemental Information

     98  

Trustee and Officer Information

     100  

General Information

     103  

Glossary of Terms Used in this Report

     104  

 

 

 


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.

 

 

4  

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


Fund Summary as of March 31, 2022    iShares® Global Comm Services ETF

 

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 IndexTM (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

    (6.03 )%       7.12      6.96       (6.03 )%       41.03      95.93

Fund Market

    (6.37      7.10        6.92         (6.37      40.94        95.27  

Index

    (5.40      7.36        6.99               (5.40      42.63        96.57  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(10/01/21)

      

Ending
      Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
  Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

    Annualized
Expense
Ratio
 
 
 
   

$      1,000.00

       $       887.00          $        2.12               $      1,000.00          $      1,022.70          $        2.27          0.45

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (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 “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  5


Fund Summary as of March 31, 2022  (continued)    iShares® Global Comm Services ETF

 

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

 

ALLOCATION BY SECTOR

 

   
Sector  

Percent of   

Total Investments(a)

Interactive Media & Services

  46.3%

Diversified Telecommunication Services

  19.2   

Entertainment

  15.7   

Media

  11.0   

Wireless Telecommunication Services

  7.8   

TEN LARGEST GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region  

Percent of   

Total Investments(a)

United States

  67.2%

China

  8.4   

Japan

  7.5   

Canada

  3.0   

United Kingdom

  3.0   

South Korea

  1.7   

Germany

  1.6   

Spain

  1.4   

France

  1.3   

Netherlands

  1.2   
  (a) 

Excludes money market funds.

 

 

 

6  

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


Fund Summary as of March 31, 2022    iShares® Global Consumer Discretionary ETF

 

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 IndexTM (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

    (3.13 )%       11.42      11.76       (3.13 )%       71.72      204.13

Fund Market

    (3.23      11.47        11.75         (3.23      72.08        203.71  

Index

    (2.26      11.70        11.84               (2.26      73.91        206.14  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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 IndexTM. Index performance beginning on September 23, 2019 reflects the performance of the S&P Global 1200 Consumer Discretionary (Sector) 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

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(10/01/21)

      

Ending

      Account Value

(03/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

           

Beginning

Account Value

(10/01/21)

 

 

 

      

Ending

  Account Value

(03/31/22)


 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

      

    Annualized

Expense

Ratio

 

 

 

   

$      1,000.00

       $        953.50          $          1.95               $      1,000.00          $      1,022.90          $          2.02          0.40

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (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 “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  7


Fund Summary as of March 31, 2022  (continued)    iShares® Global Consumer Discretionary ETF

 

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

 

ALLOCATION BY SECTOR

 

   
Sector  

Percent of   

Total Investments(a)

Retailing

  37.6%

Automobiles & Components

  27.4   

Consumer Durables & Apparel

  19.1   

Consumer Services

  15.9   

TEN LARGEST GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region  

Percent of   

Total Investments(a)

United States

  59.6%

Japan

  12.3   

China

  6.7   

France

  6.6   

Germany

  3.8   

United Kingdom

  2.7   

Netherlands

  1.5   

Switzerland

  1.3   

Australia

  1.2   

Canada

  1.2   
  (a) 

Excludes money market funds.

 

 

 

8  

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


Fund Summary as of March 31, 2022    iShares® Global Consumer Staples ETF

 

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 IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    9.42      7.14      8.32       9.42      41.18      122.41

Fund Market

    9.42        7.13        8.33         9.42        41.11        122.62  

Index

    9.62        7.13        8.29               9.62        41.09        121.74  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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 IndexTM. Index performance beginning on June 24, 2019 reflects the performance of the S&P Global 1200 Consumer Staples (Sector) 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

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(10/01/21)

      

Ending

      Account Value

(03/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

           

Beginning

Account Value

(10/01/21)

 

 

 

      

Ending

  Account Value

(03/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

      

    Annualized

Expense

Ratio

 

 

 

   

$      1,000.00

       $     1,051.40          $        2.05               $      1,000.00          $      1,022.90          $        2.02          0.40

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (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 “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  9


Fund Summary as of March 31, 2022  (continued)    iShares® Global Consumer Staples ETF

 

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

 

ALLOCATION BY SECTOR

 

   
Sector  

Percent of   

Total Investments(a)

Packaged Foods & Meats

  22.1%

Household Products

  15.9   

Hypermarkets & Super Centers

  11.3   

Tobacco

  10.4   

Soft Drinks

  10.4   

Personal Products

  8.9   

Food Retail

  7.7   

Distillers & Vintners

  5.9   

Brewers

  4.0   

Agricultural Products

  1.4   

Food Distributors

  1.1   

Drug Retail

  0.9   

TEN LARGEST GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region  

Percent of   

Total Investments(a)

United States

  55.1%

United Kingdom

  12.5   

Switzerland

  9.8   

Japan

  5.7   

France

  5.1   

Canada

  2.1   

Australia

  1.7   

Netherlands

  1.7   

Belgium

  1.4   

Germany

  1.0   
  (a) 

Excludes money market funds.

 

 

 

10  

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


Fund Summary as of March 31, 2022    iShares® Global Energy ETF

 

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 IndexTM (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

    52.61      6.30      2.73       52.61      35.70      30.85

Fund Market

    52.63        6.29        2.71         52.63        35.65        30.64  

Index

    52.42        5.92        2.49               52.42        33.34        27.92  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

Index performance through 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

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(10/01/21)

      


Ending

Account Value
(03/31/22)

 


 

      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
  Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

    Annualized
Expense
Ratio
 
 
 
   

$      1,000.00

       $       1,379.90          $      2.37               $      1,000.00          $      1,022.90          $        2.02          0.40

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (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 “Shareholder Expenses” for more information.

 

 

 

  11


Fund Summary as of March 31, 2022  (continued)    iShares® Global Energy ETF

 

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

 

ALLOCATION BY SECTOR

 

Sector   Percent of   
Total Investments(a)

Integrated Oil & Gas

  55.6%

Oil & Gas Exploration & Production

  21.1   

Oil & Gas Storage & Transportation

  11.1   

Oil & Gas Refining & Marketing

  6.8   

Oil & Gas Equipment & Services

  5.0   

Coal & Consumable Fuels

  0.4   

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region   Percent of   
Total Investments(a)

United States

  59.1%

Canada

  13.2   

United Kingdom

  12.2   

France

  4.9   

Brazil

  2.4  

Australia

  1.8   

Norway

  1.6   

Italy

  1.5   

Japan

  1.0   

Finland

  0.8   

 

  (a) 

Excludes money market funds.

 

 

 

12  

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


Fund Summary as of March 31, 2022    iShares® Global Financials ETF

 

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 IndexTM (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

    10.48      8.15      9.17       10.48      47.97      140.48

Fund Market

    10.12        8.09        9.10         10.12        47.56        138.85  

Index

    10.92        8.27        9.27               10.92        48.78        142.64  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(10/01/21)

      

Ending
      Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
  Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

    Annualized
Expense
Ratio
 
 
 
   

$        1,000.00

       $         1,030.20          $        2.02               $      1,000.00          $      1,022.90          $        2.02          0.40

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (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 “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  13


Fund Summary as of March 31, 2022  (continued)    iShares® Global Financials ETF

 

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

 

ALLOCATION BY SECTOR

 

   
Sector   Percent of   
Total Investments(a)

Banks

  45.5%

Insurance

  22.0   

Capital Markets

  20.6   

Diversified Financial Services

  9.2   

Consumer Finance

  2.7   

Equity Real Estate Investment Trusts (REITs)

  0.0(b)

TEN LARGEST GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region   Percent of   
Total Investments(a)

United States

  51.9%

Canada

  9.1   

United Kingdom

  5.4   

Australia

  5.3   

Japan

  4.1   

Switzerland

  3.2   

China

  2.7   

Germany

  2.6   

Hong Kong

  2.2   

France

  2.1   

 

  (a) 

Excludes money market funds.

 
  (b) 

Rounds to less than 0.1%

 

 

 

14  

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


Fund Summary as of March 31, 2022    iShares® Global Healthcare ETF

 

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 IndexTM (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

    14.94      12.91      13.25       14.94      83.50      246.95

Fund Market

    15.07        12.96        13.27         15.07        83.93        247.77  

Index

    15.23        13.02        13.34               15.23        84.45        249.85  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(10/01/21)

      

Ending
      Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
  Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

    Annualized
Expense
Ratio
 
 
 
   

$        1,000.00

       $         1,050.20          $        2.04               $      1,000.00          $      1,022.90          $        2.02          0.40

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (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 “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  15


Fund Summary as of March 31, 2022  (continued)    iShares® Global Healthcare ETF

 

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

 

ALLOCATION BY SECTOR

 

   
Sector  

Percent of   

Total Investments(a)

Pharmaceuticals

  40.1%

Health Care Equipment & Supplies

  19.2   

Health Care Providers & Services

  16.6   

Biotechnology

  12.3   

Life Sciences Tools & Services

  11.2   

Health Care Technology

  0.6   

TEN LARGEST GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region  

Percent of   

Total Investments(a)

United States

  71.2%

Switzerland

  8.9   

United Kingdom

  4.5   

Japan

  4.3   

Denmark

  3.2   

Germany

  2.1   

France

  1.9   

Australia

  1.8   

Netherlands

  0.7   

China

  0.3   
  (a) 

Excludes money market funds.

 

 

 

16  

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


Fund Summary as of March 31, 2022    iShares® Global Industrials ETF

 

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 IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    1.54      9.36   9.87%       1.54      56.39      156.30

Fund Market

    1.57        9.39     9.86          1.57        56.66        156.05  

Index

    2.12        9.51     9.91                2.12        57.51        157.28  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(10/01/21)

      

Ending

      Account Value

(03/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

           

Beginning

Account Value

(10/01/21)

 

 

 

      

Ending

  Account Value

(03/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

      

    Annualized

Expense

Ratio

 

 

 

   

$    1,000.00

       $        993.90          $        2.04               $      1,000.00          $      1,022.90          $        2.07          0.41

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (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 “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  17


Fund Summary as of March 31, 2022  (continued)    iShares® Global Industrials ETF

 

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

 

ALLOCATION BY SECTOR

 

Sector  

Percent of   

Total Investments(a)

Capital Goods

  67.3%

Transportation

  21.0   

Commercial & Professional Services

  11.7   

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region  

Percent of   

Total Investments(a)

United States

  52.7%

Japan

  14.4   

France

  6.8   

United Kingdom

  5.0   

Canada

  4.0   

Germany

  3.6   

Sweden

  3.4   

Switzerland

  2.7   

Denmark

  1.7   

Netherlands

  1.1   
  (a) 

Excludes money market funds.

 

 

 

18  

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


Fund Summary as of March 31, 2022      iShares® Global Materials ETF

 

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 IndexTM (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

    12.19      12.55   6.68%       12.19      80.63      90.86

Fund Market

    12.17        12.61     6.64          12.17        81.11        90.20  

Index

    12.74        12.77     6.86                12.74        82.34        94.07  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(10/01/21)

      

Ending

      Account Value

(03/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

           

Beginning

Account Value

(10/01/21)

 

 

 

      

Ending

  Account Value

(03/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

      

    Annualized

Expense

Ratio

 

 

 

   

$        1,000.00

       $        1,128.20          $        2.12               $      1,000.00          $      1,022.90          $        2.02          0.40

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (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 “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  19


Fund Summary as of March 31, 2022  (continued)    iShares® Global Materials ETF

 

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

 

ALLOCATION BY SECTOR

 

Sector  

Percent of   

Total Investments(a)

Chemicals

  47.2%

Metals & Mining

  40.7   

Containers & Packaging

  5.2   

Construction Materials

  5.0   

Paper & Forest Products

  1.9   

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region  

Percent of   

Total Investments(a)

United States

  36.4%

Australia

  17.4   

Canada

  8.6   

Japan

  6.1   

United Kingdom

  4.5   

Switzerland

  4.0   

France

  3.4   

Brazil

  3.2   

Germany

  3.2   

Ireland

  2.1   
  (a) 

Excludes money market funds.

 

 

 

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


Fund Summary as of March 31, 2022    iShares® Global Tech ETF

 

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 IndexTM (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

    13.89      23.94   18.43%       13.89      192.49      442.84

Fund Market

    13.84        23.98     18.45          13.84        192.89        443.47  

Index

    14.39        24.17     18.60                14.39        195.16        450.55  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(10/01/21)

      

Ending
      Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
  Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

    Annualized
Expense
Ratio
 
 
 
   

$      1,000.00

       $       1,025.50          $        2.02               $      1,000.00          $      1,022.90          $        2.02          0.40

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (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 “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  21


Fund Summary as of March 31, 2022  (continued)    iShares® Global Tech ETF

 

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

 

ALLOCATION BY SECTOR

 

Sector   Percent of    
Total Investments(a)

Software

  27.8%

Semiconductors & Semiconductor Equipment

  25.2   

Technology Hardware, Storage & Peripherals

  24.8   

IT Services

  15.1   

Electronic Equipment, Instruments & Components

  4.1   

Communications Equipment

  3.0   

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region   Percent of    
Total Investments(a)

United States

  81.4%

Taiwan

  4.0   

Japan

  3.4   

South Korea

  3.2   

Netherlands

  3.0   

Germany

  1.3   

Canada

  1.1   

France

  0.9   

Sweden

  0.4   

Finland

  0.2   
  (a) 

Excludes money market funds.

 

 

 

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


Fund Summary as of March 31, 2022    iShares® Global Utilities ETF

 

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

 

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

Fund NAV

    11.59      9.85   8.29%       11.59      59.99      121.70

Fund Market

    11.97        9.90     8.29          11.97        60.33        121.77  

Index(a)

    11.45        9.56     7.99          11.45        57.85        115.77  

S&P Global 1200 Utilities Index

    11.29        9.53     7.98          11.29        57.62        115.54  

S&P Global 1200 Utilities (Sector) Capped Index(b)

    11.45        N/A     N/A                11.45        N/A        N/A  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

  (a) 

Index performance through May 2, 2021 reflects the performance of the S&P Global 1200 Utilities Index. Index performance beginning on May 3, 2021 reflects the performance of the S&P Global 1200 Utilities (Sector) Capped Index, which, effective as of May 3, 2021, replaced the S&P Global 1200 Utilities Index as the underlying index of the fund.

 
  (b) 

The inception date of the S&P Global 1200 Utilities (Sector) Capped Index was February 15, 2021. The cumulative total return for this index for the period February 15, 2021 through March 31, 2022 was 13.06%.

 

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

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(10/01/21)

      

Ending
      Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
  Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

    Annualized
Expense
Ratio
 
 
 
   

$      1,000.00

       $       1,133.00          $        2.34               $      1,000.00          $      1,022.70          $        2.22          0.44

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (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 “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  23


Fund Summary as of March 31, 2022  (continued)    iShares® Global Utilities ETF

 

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

 

ALLOCATION BY SECTOR

 

Sector   Percent of    
Total Investments(a)

Electric Utilities

  59.5%

Multi-Utilities

  31.5   

Gas Utilities

  4.9   

Water Utilities

  3.1   

Independent Power and Renewable Electricity Producers

  1.0   

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region   Percent of    
Total Investments(a)

United States

  64.0%

United Kingdom

  6.4   

Spain

  5.8   

Italy

  4.6   

Canada

  4.6   

Germany

  3.4   

France

  3.0   

Japan

  1.8   

Hong Kong

  1.8   

Denmark

  1.4   
  (a) 

Excludes money market funds.

 

 

 

24  

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


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.

 

 

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

  25


Schedule of Investments

March 31, 2022

  

iShares® Global Comm Services ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Australia — 1.1%            

SEEK Ltd.

    21,579     $ 475,225  

Telstra Corp. Ltd.

    703,893       2,079,623  
   

 

 

 
      2,554,848  
Canada — 3.0%            

BCE Inc.

    54,462       3,019,011  

Rogers Communications Inc., Class B, NVS

    20,997       1,188,456  

Shaw Communications Inc., Class B, NVS

    26,787       831,369  

TELUS Corp.

    82,108           2,145,060  
   

 

 

 
      7,183,896  
China — 8.4%            

Baidu Inc.(a)

    135,950       2,399,337  

NetEase Inc.

    120,100       2,166,936  

Tencent Holdings Ltd.

    339,800       15,662,858  
   

 

 

 
      20,229,131  
Finland — 0.2%            

Elisa OYJ

    9,082       547,705  
   

 

 

 
France — 1.3%            

Orange SA

    113,156       1,339,914  

Publicis Groupe SA

    14,123       857,176  

Ubisoft Entertainment SA(a)

    5,652       248,365  

Vivendi SE

    48,160       629,186  
   

 

 

 
      3,074,641  
Germany — 1.6%            

Deutsche Telekom AG, Registered

    203,803       3,795,652  
   

 

 

 
Italy — 0.1%            

Telecom Italia SpA/Milano

    606,182       222,546  
   

 

 

 
Japan — 7.5%            

Dentsu Group Inc.

    14,800       604,822  

KDDI Corp.

    99,400       3,258,990  

Nexon Co. Ltd.

    28,000       669,864  

Nintendo Co. Ltd.

    7,000       3,533,333  

Nippon Telegraph & Telephone Corp.

    132,400       3,846,735  

SoftBank Corp.

    166,400       1,940,740  

SoftBank Group Corp.

    75,400       3,371,106  

Z Holdings Corp.

    156,000       674,402  
   

 

 

 
      17,899,992  
Mexico — 0.7%            

America Movil SAB de CV, Series L, NVS

    1,353,380       1,437,073  

Grupo Televisa SAB, CPO

    150,109       352,896  
   

 

 

 
      1,789,969  
Netherlands — 1.2%            

Koninklijke KPN NV

    207,812       721,103  

Universal Music Group NV

    79,312       2,117,164  
   

 

 

 
      2,838,267  
Norway — 0.2%            

Telenor ASA

    38,803       556,805  
   

 

 

 
South Korea — 1.7%            

Kakao Corp.

    18,704       1,625,724  

NAVER Corp.

    8,846       2,458,559  
   

 

 

 
      4,084,283  
Spain — 1.3%            

Cellnex Telecom SA(b)

    34,189       1,645,325  
Security   Shares     Value  
Spain (continued)            

Telefonica SA

    328,935     $ 1,594,103  
   

 

 

 
      3,239,428  
Sweden — 0.6%            

Embracer Group AB(a)

    40,256       336,023  

Tele2 AB, Class B

    29,940       452,567  

Telia Co. AB

    150,318       602,731  
   

 

 

 
          1,391,321  
Switzerland — 0.4%            

Swisscom AG, Registered

    1,521       913,826  
   

 

 

 
Taiwan — 0.4%            

Chunghwa Telecom Co. Ltd.

    228,120       1,010,314  
   

 

 

 
United Kingdom — 3.0%            

Auto Trader Group PLC(b)

    57,657       475,975  

BT Group PLC

    525,565       1,253,108  

Informa PLC(a)

    90,743       710,972  

ITV PLC(a)

    223,163       238,834  

Pearson PLC

    45,106       442,266  

Rightmove PLC

    52,461       433,571  

Vodafone Group PLC

    1,605,681       2,632,970  

WPP PLC

    73,917       967,432  
   

 

 

 
      7,155,128  
United States — 67.1%            

Activision Blizzard Inc.

    46,677       3,739,294  

Alphabet Inc., Class A(a)

    10,112       28,125,011  

Alphabet Inc., Class C, NVS(a)

    9,339       26,083,734  

AT&T Inc.

    428,409       10,123,305  

Charter Communications Inc., Class A(a)

    7,141       3,895,558  

Comcast Corp., Class A

    225,435       10,554,867  

Discovery Inc., Class A(a)

    10,476       261,062  

Discovery Inc., Class C, NVS(a)

    18,162       453,505  

DISH Network Corp., Class A(a)

    14,973       473,895  

Electronic Arts Inc.

    16,849       2,131,567  

Fox Corp., Class A, NVS

    18,921       746,433  

Fox Corp., Class B

    8,922       323,690  

Interpublic Group of Companies Inc. (The)

    23,583       836,017  

Live Nation Entertainment Inc.(a)

    8,093       952,061  

Lumen Technologies Inc.

    55,004       619,895  

Match Group Inc.(a)

    16,961       1,844,339  

Meta Platforms Inc, Class A(a)

    129,705       28,841,204  

Netflix Inc.(a)

    26,635       9,977,205  

News Corp., Class A, NVS

    23,579       522,275  

News Corp., Class B

    7,242       163,090  

Omnicom Group Inc.

    12,522       1,062,867  

Paramount Global, Class B, NVS

    36,350       1,374,394  

Take-Two Interactive Software Inc.(a)

    6,915       1,063,112  

T-Mobile U.S. Inc.(a)

    35,273       4,527,290  

Twitter Inc.(a)

    47,908       1,853,561  

Verizon Communications Inc.

    195,876       9,977,923  

Walt Disney Co. (The)(a)

    77,793       10,670,088  
   

 

 

 
      161,197,242  
   

 

 

 

Total Common Stocks — 99.8%
(Cost: $247,803,338)

      239,684,994  
   

 

 

 

 

 

26  

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


Schedule of Investments  (continued)

March 31, 2022

  

iShares® Global Comm Services ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Preferred Stocks

   

Italy — 0.0%

   

Telecom Italia SpA/Milano, Preference Shares, NVS

    351,856     $ 119,339  
   

 

 

 

Total Preferred Stocks — 0.0%
(Cost: $320,628)

      119,339  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 0.1%

   

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.25%(c)(d)

    330,000       330,000  
   

 

 

 

Total Short-Term Investments — 0.1%
(Cost: $330,000)

      330,000  
   

 

 

 

Total Investments in Securities — 99.9%
(Cost: $248,453,966)

      240,134,333  

Other Assets, Less Liabilities — 0.1%

      135,614  
   

 

 

 

Net Assets — 100.0%

    $  240,269,947  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 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

03/31/21

    

Purchases

at Cost

    Proceeds
from Sales
   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

03/31/22

    

Shares

Held at

03/31/22

     Income    

Capital

Gain

Distributions

from

Underlying

Funds

   

    

 

 

   
 

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

   $ 2,744,057      $     $ (2,743,129 )(b)    $
 
 
 
(928) 
  $
 
 
 
 
   $             $ 3,656 (c)    $
 
 
 
 
 
 

BlackRock Cash Funds: Treasury, SL Agency Shares

     173,000        157,000 (b)                         330,000        330,000        59          
           

 

 

   

 

 

    

 

 

       

 

 

   

 

 

   
            $ (928   $      $ 330,000         $ 3,715     $    
           

 

 

   

 

 

    

 

 

       

 

 

   

 

 

   

 

  (a) 

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

 
  (b) 

Represents net amount purchased (sold).

 
  (c) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description   

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Long Contracts

           

Mini-TOPIX Index

     5        06/09/22      $ 79      $ 99  

E-Mini S&P Communication Services Select Sector Index

     3        06/17/22        270        (6,119

Euro Stoxx 50 Index

     1        06/17/22        42        (795
           

 

 

 
            $ (6,815
           

 

 

 

 

 

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

  27


Schedule of Investments  (continued)

March 31, 2022

  

iShares® Global Comm Services 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:

 

 

 
    

Equity

Contracts

 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts Unrealized appreciation on futures contracts(a)

   $ 99  
  

 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts
Unrealized depreciation on futures contracts(a)

   $ 6,914  
  

 

 

 

 

  (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 March 31, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Equity

Contracts

 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 44,873  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (4,234
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

     $647,967       

 

 

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

   $ 171,511,021      $ 68,173,973      $      $ 239,684,994  

Preferred Stocks

            119,339               119,339  

Money Market Funds

     330,000                      330,000  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 171,841,021      $ 68,293,312      $      $ 240,134,333  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $      $ 99      $      $ 99  

Liabilities

           

Futures Contracts

     (6,119      (795             (6,914
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ (6,119    $ (696    $      $ (6,815
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

28  

2 0 2 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


Schedule of Investments

March 31, 2022

  

iShares® Global Consumer Discretionary ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Australia — 1.2%            

Aristocrat Leisure Ltd.

    40,663     $ 1,103,676  

Tabcorp Holdings Ltd.

    135,730       540,762  

Wesfarmers Ltd.

    69,778           2,618,389  
   

 

 

 
      4,262,827  
Brazil — 0.2%            

Lojas Renner SA

    58,701       339,059  

Magazine Luiza SA

    170,740       244,578  
   

 

 

 
      583,637  
Canada — 1.2%            

Canadian Tire Corp. Ltd., Class A, NVS

    3,421       516,536  

Dollarama Inc.

    17,013       964,861  

Gildan Activewear Inc.

    11,860       444,839  

Magna International Inc.

    17,213       1,105,080  

Restaurant Brands International Inc.

    19,268       1,125,733  
   

 

 

 
      4,157,049  
Chile — 0.0%            

Falabella SA

    45,857       146,576  
   

 

 

 
China — 6.7%            

Alibaba Group Holding Ltd.(a)

    904,800       12,347,544  

ANTA Sports Products Ltd.

    69,400       860,907  

BYD Co. Ltd., Class H

    49,000       1,362,949  

JDcom Inc., Class A(a)

    128,250       3,644,207  

Li Ning Co. Ltd.

    143,500       1,218,509  

Meituan, Class B(a)(b)

    247,100       4,681,047  
   

 

 

 
      24,115,163  
Denmark — 0.2%            

Pandora A/S

    6,093       580,446  
   

 

 

 
France — 6.6%            

Accor SA(a)

    10,249       330,215  

Cie. Generale des Etablissements Michelin SCA

    10,955       1,484,572  

EssilorLuxottica SA

    18,486       3,380,914  

Hermes International

    2,134       3,020,348  

Kering SA

    4,510       2,847,286  

LVMH Moet Hennessy Louis Vuitton SE

    16,413       11,715,578  

Renault SA(a)

    12,701       332,004  

Sodexo SA

    4,926       400,858  

Valeo

    14,101       260,459  
   

 

 

 
      23,772,234  
Germany — 2.9%            

adidas AG

    10,979       2,558,391  

Bayerische Motoren Werke AG

    19,569       1,691,105  

Continental AG(a)

    6,557       470,046  

Delivery Hero SE(a)(b)

    11,685       509,277  

Mercedes-Benz Group AG

    51,281       3,599,387  

Puma SE

    6,232       529,981  

Volkswagen AG

    1,818       449,081  

Zalando SE(a)(b)

    12,005       607,863  
   

 

 

 
      10,415,131  
Ireland — 0.3%            

Flutter Entertainment PLC, Class DI(a)

    9,398       1,083,068  
   

 

 

 
Italy — 0.7%            

Ferrari NV

    7,849       1,709,979  

Moncler SpA

    13,073       725,314  
   

 

 

 
      2,435,293  
Security   Shares     Value  
Japan — 12.2%            

Aisin Corp.

    11,300     $ 386,207  

Bandai Namco Holdings Inc.

    13,600       1,031,281  

Bridgestone Corp.

    36,900       1,432,302  

Denso Corp.

    32,100       2,047,983  

Fast Retailing Co. Ltd.

    4,000       2,050,628  

Honda Motor Co. Ltd.

    105,643       2,994,539  

Isuzu Motors Ltd.

    38,600       498,636  

Koito Manufacturing Co. Ltd.

    8,100       327,803  

Nissan Motor Co. Ltd.(a)

    146,200       649,614  

Nitori Holdings Co. Ltd.

    5,400       679,389  

Oriental Land Co. Ltd./Japan

    14,000       2,679,674  

Pan Pacific International Holdings Corp.

    32,600       521,617  

Panasonic Corp.

    142,600       1,384,942  

Rakuten Group Inc.

    56,200       441,885  

Sekisui House Ltd.

    40,000       773,727  

Shimano Inc.

    5,100       1,167,943  

Sony Group Corp.

    77,300       7,952,286  

Subaru Corp.

    37,688       598,598  

Sumitomo Electric Industries Ltd.

    48,800       580,099  

Suzuki Motor Corp.

    30,200       1,034,960  

Toyota Motor Corp.

    790,700       14,262,643  

Yamaha Motor Co. Ltd.

    19,413       435,117  
   

 

 

 
          43,931,873  
Netherlands — 1.5%            

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

    9,176       307,744  

Prosus NV

    53,591       2,890,045  

Stellantis NV

    137,088       2,219,382  
   

 

 

 
      5,417,171  
South Korea — 0.6%            

Hyundai Motor Co.

    8,814       1,300,426  

Kia Corp.

    16,521       1,000,646  
   

 

 

 
      2,301,072  
Spain — 0.4%            

Industria de Diseno Textil SA

    68,728       1,498,612  
   

 

 

 
Sweden — 0.6%            

Electrolux AB, Class B

    15,508       234,675  

Evolution AB(b)

    11,132       1,132,506  

H & M Hennes & Mauritz AB, Class B

    45,215       607,131  
   

 

 

 
      1,974,312  
Switzerland — 1.3%            

Cie. Financiere Richemont SA, Class A, Registered

    32,050       4,062,490  

Swatch Group AG (The), Bearer

    1,778       504,105  

Swatch Group AG (The), Registered

    3,171       172,554  
   

 

 

 
      4,739,149  
United Kingdom — 2.7%            

Aptiv PLC(a)

    16,543       1,980,363  

Barratt Developments PLC

    62,448       425,134  

Berkeley Group Holdings PLC

    7,005       341,679  

Burberry Group PLC

    24,907       543,712  

Compass Group PLC

    109,442       2,355,201  

Entain PLC(a)

    35,696       764,645  

InterContinental Hotels Group PLC

    11,471       775,836  

Kingfisher PLC

    129,306       431,578  

Next PLC

    8,143       640,452  

Persimmon PLC

    19,517       547,283  

Taylor Wimpey PLC

    224,204       381,800  

Whitbread PLC(a)

    12,368       460,505  
   

 

 

 
      9,648,188  

 

 

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

  29


Schedule of Investments  (continued)

March 31, 2022

  

iShares® Global Consumer Discretionary ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

United States — 59.4%

   

Advance Auto Parts Inc.

    3,855     $ 797,831  

Amazon.com Inc.(a)

    11,945           38,940,103  

AutoZone Inc.(a)

    1,268       2,592,527  

Bath & Body Works Inc.

    16,008       765,182  

Best Buy Co. Inc.

    13,283       1,207,425  

Booking Holdings Inc.(a)

    2,515       5,906,352  

BorgWarner Inc.

    14,647       569,768  

Caesars Entertainment Inc.(a)

    13,187       1,020,146  

CarMax Inc.(a)

    9,890       954,187  

Carnival Corp.(a)

    49,588       1,002,669  

Chipotle Mexican Grill Inc.(a)

    1,723       2,725,838  

Darden Restaurants Inc.

    7,912       1,051,900  

Dollar General Corp.

    14,265       3,175,817  

Dollar Tree Inc.(a)(c)

    13,755       2,202,863  

Domino’s Pizza Inc.

    2,226       906,004  

DR Horton Inc.

    19,743       1,471,051  

eBay Inc.

    38,278       2,191,798  

Etsy Inc.(a)

    7,774       966,153  

Expedia Group Inc.(a)

    9,232       1,806,425  

Ford Motor Co.

    241,718       4,087,451  

Garmin Ltd.

    9,221       1,093,703  

General Motors Co.(a)

    89,292       3,905,632  

Genuine Parts Co.

    8,695       1,095,744  

Hasbro Inc.

    7,857       643,645  

Hilton Worldwide Holdings Inc.(a)

    17,061       2,588,836  

Home Depot Inc. (The)

    47,205       14,129,873  

Las Vegas Sands Corp.(a)

    20,868       811,139  

Lennar Corp., Class A

    16,062       1,303,753  

LKQ Corp.

    16,412       745,269  

Lowe’s Companies Inc.

    41,323       8,355,097  

Marriott International Inc./MD, Class A(a)

    16,740       2,942,055  

McDonald’s Corp.

    45,844       11,336,304  

MGM Resorts International

    23,108       969,150  

Mohawk Industries Inc.(a)

    3,358       417,064  

Newell Brands Inc.

    23,256       497,911  

Nike Inc., Class B

    78,297       10,535,644  

Norwegian Cruise Line Holdings Ltd.(a)

    25,619       560,544  

NVR Inc.(a)

    201       897,921  

O’Reilly Automotive Inc.(a)

    4,122       2,823,405  

Penn National Gaming Inc.(a)

    10,228       433,872  

Pool Corp.

    2,472       1,045,285  

PulteGroup Inc.

    15,544       651,294  

PVH Corp.

    4,332       331,875  

Ralph Lauren Corp.

    2,952       334,875  

Ross Stores Inc.

    21,872       1,978,541  

Royal Caribbean Cruises Ltd.(a)

    13,640       1,142,759  

Starbucks Corp.

    70,689       6,430,578  

Tapestry Inc.

    16,196       601,681  

Target Corp.

    29,443       6,248,394  

Tesla Inc.(a)

    38,737       41,742,991  

TJX Companies Inc. (The)

    73,184       4,433,487  

Tractor Supply Co.

    6,934       1,618,188  

Ulta Salon Cosmetics & Fragrance Inc.(a)

    3,324       1,323,683  
Security   Shares     Value  

 

 

United States (continued)

   

Under Armour Inc., Class A(a)

    11,497     $ 195,679  

Under Armour Inc., Class C, NVS(a)

    12,821       199,495  

VF Corp.

    19,735       1,122,132  

Whirlpool Corp.

    3,619       625,291  

Wynn Resorts Ltd.(a)

    6,505       518,709  

Yum! Brands Inc.

    17,730       2,101,537  
   

 

 

 
          213,074,525  
   

 

 

 

Total Common Stocks — 98.7%
(Cost: $374,753,665)

      354,136,326  
   

 

 

 

Preferred Stocks

   
Germany — 0.8%            

Bayerische Motoren Werke AG, Preference Shares, NVS

    3,507       271,645  

Porsche Automobil Holding SE, Preference Shares, NVS

    9,325       897,008  

Volkswagen AG, Preference Shares, NVS

    11,240       1,931,609  
   

 

 

 
      3,100,262  
South Korea — 0.1%            

Hyundai Motor Co.

   

Preference Shares, NVS

    1,402       99,173  

Series 2, Preference Shares, NVS

    2,287       162,534  
   

 

 

 
      261,707  
   

 

 

 

Total Preferred Stocks — 0.9%
(Cost: $4,070,031)

      3,361,969  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 0.7%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.34%(d)(e)(f)

    2,229,314       2,228,868  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.25%(d)(e)

    370,000       370,000  
   

 

 

 
      2,598,868  
   

 

 

 

Total Short-Term Investments — 0.7%
(Cost: $2,598,868)

 

    2,598,868  
   

 

 

 

Total Investments in Securities — 100.3%
(Cost: $381,422,564)

 

    360,097,163  

Other Assets, Less Liabilities — (0.3)%

      (1,232,200
   

 

 

 

Net Assets — 100.0%

    $ 358,864,963  
   

 

 

 

 

(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) 

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.

 

 

30  

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


Schedule of Investments  (continued)

March 31, 2022

  

iShares® Global Consumer Discretionary ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 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

03/31/21

   

Purchases

at Cost

   

Proceeds

from Sales

   

Net Realized

Gain (Loss)

    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
03/31/22
    Shares
Held at
03/31/22
    Income    

Capital

Gain

Distributions

from

Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 796,179     $ 1,434,505 (a)    $     $ (1,816   $     $ 2,228,868       2,229,314     $ 4,066 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    270,000       100,000 (a)                        370,000       370,000       94        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (1,816   $     $ 2,598,868       $ 4,160     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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

       

TOPIX Index

    1       06/09/22     $ 158     $ 13,557  

Euro Stoxx 50 Index

    8       06/17/22       336       6,660  

S&P Consumer Discretionary Select Sector E-Mini Index

    4       06/17/22       749       53,541  
       

 

 

 
        $ 73,758  
       

 

 

 

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:

 

 

 
    

Equity

Contracts

 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 73,758  
  

 

 

 

 

  (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 March 31, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 1,938  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 54,406  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

  

Average notional value of contracts — long

   $ 963,945  

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

  31


Schedule of Investments  (continued)

March 31, 2022

  

iShares® Global Consumer Discretionary 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

   $ 219,942,150      $ 134,194,176      $      $ 354,136,326  

Preferred Stocks

            3,361,969               3,361,969  

Money Market Funds

     2,598,868                      2,598,868  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 222,541,018      $ 137,556,145      $      $ 360,097,163  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 53,541      $ 20,217      $      $ 73,758  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

32  

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


Schedule of Investments

March 31, 2022

  

iShares® Global Consumer Staples ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Australia — 1.7%

   

Coles Group Ltd.

    364,025     $ 4,865,355  

Endeavour Group Ltd./Australia

    350,171       1,904,857  

Treasury Wine Estates Ltd.

    197,650       1,707,308  

Woolworths Group Ltd.

    330,415       9,173,911  
   

 

 

 
      17,651,431  
Belgium — 1.4%            

Anheuser-Busch InBev SA/NV

    236,800       14,157,816  
   

 

 

 
Brazil — 0.6%            

Ambev SA, ADR

    1,201,832       3,881,917  

BRF SA, ADR(a)(b)

    206,228       818,725  

Natura & Co. Holding SA(a)

    233,100       1,275,403  
   

 

 

 
      5,976,045  
Canada — 2.1%            

Alimentation Couche-Tard Inc.

    226,628       10,209,726  

George Weston Ltd.

    19,039       2,344,562  

Loblaw Companies Ltd.

    44,704       4,011,434  

Metro Inc.

    66,041       3,801,392  

Saputo Inc.

    65,760       1,557,536  
   

 

 

 
          21,924,650  
Chile — 0.1%            

Cencosud SA

    377,157       743,001  
   

 

 

 
Denmark — 0.3%            

Carlsberg A/S, Class B

    27,501       3,376,061  
   

 

 

 
Finland — 0.2%            

Kesko OYJ, Class B

    73,901       2,040,413  
   

 

 

 
France — 5.1%            

Carrefour SA

    169,223       3,682,639  

Danone SA

    187,478       10,356,839  

L’Oreal SA

    64,372       25,713,078  

Pernod Ricard SA

    54,973       12,078,171  
   

 

 

 
      51,830,727  
Germany — 0.7%            

Beiersdorf AG

    27,007       2,837,191  

HelloFresh SE(a)

    47,640       2,138,260  

Henkel AG & Co. KGaA

    27,078       1,787,272  
   

 

 

 
      6,762,723  
Ireland — 0.4%            

Kerry Group PLC, Class A

    41,944       4,691,095  
   

 

 

 
Japan — 5.7%            

Aeon Co. Ltd.

    237,717       5,068,719  

Ajinomoto Co. Inc.

    149,600       4,246,061  

Asahi Group Holdings Ltd.

    138,198       5,033,236  

Japan Tobacco Inc.

    299,900       5,121,567  

Kao Corp.

    129,300       5,279,399  

Kikkoman Corp.

    52,700       3,490,654  

Kirin Holdings Co. Ltd.

    226,596       3,384,586  

MEIJI Holdings Co. Ltd.

    40,100       2,174,700  

Nissin Foods Holdings Co. Ltd.

    23,000       1,612,649  

Seven & i Holdings Co. Ltd.

    218,637       10,424,000  

Shiseido Co. Ltd.

    109,000       5,505,422  

Unicharm Corp.

    121,700       4,372,179  

Yakult Honsha Co. Ltd.

    44,020       2,348,197  
   

 

 

 
      58,061,369  
Security   Shares     Value  
Mexico — 1.0%            

Fomento Economico Mexicano SAB de CV

    502,012     $ 4,173,590  

Wal-Mart de Mexico SAB de CV

    1,380,481       5,685,722  
   

 

 

 
      9,859,312  
Netherlands — 1.7%            

Heineken Holding NV

    27,331       2,140,104  

Heineken NV

    64,381       6,156,741  

Koninklijke Ahold Delhaize NV

    285,091       9,170,093  
   

 

 

 
      17,466,938  
Norway — 0.5%            

Mowi ASA

    122,803       3,307,810  

Orkla ASA

    204,342       1,815,474  
   

 

 

 
      5,123,284  
Sweden — 0.7%            

Essity AB, Class B

    164,257       3,876,303  

Swedish Match AB

    434,123       3,264,619  
   

 

 

 
      7,140,922  
Switzerland — 9.7%            

Chocoladefabriken Lindt & Spruengli AG, Participation Certificates, NVS

    290       3,451,554  

Chocoladefabriken Lindt & Spruengli AG, Registered

    30       3,628,752  

Nestle SA, Registered

    711,995       92,572,638  
   

 

 

 
          99,652,944  
United Kingdom — 12.4%            

Associated British Foods PLC

    96,595       2,098,345  

British American Tobacco PLC

    622,855       26,158,157  

Diageo PLC

    636,616       32,292,049  

Imperial Brands PLC

    258,828       5,452,139  

J Sainsbury PLC

    474,547       1,570,647  

Marks & Spencer Group PLC(a)

    533,680       1,077,157  

Ocado Group PLC(a)

    176,198       2,690,476  

Reckitt Benckiser Group PLC

    201,489       15,370,771  

Tesco PLC

    2,085,580       7,550,431  

Unilever PLC

    717,936       32,596,269  
   

 

 

 
      126,856,441  
United States — 54.8%            

Altria Group Inc.

    498,038       26,022,485  

Archer-Daniels-Midland Co.

    153,093       13,818,174  

Brown-Forman Corp., Class B, NVS

    49,820       3,338,936  

Campbell Soup Co.

    55,223       2,461,289  

Church & Dwight Co. Inc.

    66,163       6,575,279  

Clorox Co. (The)

    33,548       4,664,178  

Coca-Cola Co. (The)

    747,991       46,375,442  

Colgate-Palmolive Co.

    229,782       17,424,369  

Conagra Brands Inc.

    130,777       4,390,184  

Constellation Brands Inc., Class A

    44,802       10,318,797  

Costco Wholesale Corp.

    83,540       48,106,509  

Estee Lauder Companies Inc. (The), Class A

    63,362       17,254,740  

General Mills Inc.

    164,454       11,136,825  

Hershey Co. (The)

    39,636       8,586,347  

Hormel Foods Corp.

    76,914       3,964,148  

JM Smucker Co. (The)

    29,542       4,000,282  

Kellogg Co.

    69,749       4,498,113  

Kimberly-Clark Corp.

    91,822       11,308,798  

Kraft Heinz Co. (The)

    193,548       7,623,856  

Kroger Co. (The)

    182,926       10,494,465  

Lamb Weston Holdings Inc.

    39,828       2,386,095  

McCormick & Co. Inc./MD, NVS

    68,084       6,794,783  

Molson Coors Beverage Co., Class B

    51,361       2,741,650  

 

 

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

  33


Schedule of Investments  (continued)

March 31, 2022

  

iShares® Global Consumer Staples ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United States (continued)            

Mondelez International Inc., Class A

    379,329     $ 23,814,275  

Monster Beverage Corp.(a)

    102,425       8,183,757  

PepsiCo Inc.

    280,015       46,868,911  

Philip Morris International Inc.

    423,086       39,744,699  

Procter & Gamble Co. (The)

    606,287       92,640,654  

Sysco Corp.

    138,353       11,296,522  

Tyson Foods Inc., Class A

    79,977       7,168,338  

Walgreens Boots Alliance Inc.

    195,348       8,745,730  

Walmart Inc.

    316,123       47,077,037  
   

 

 

 
      559,825,667  
   

 

 

 

Total Common Stocks — 99.1%
(Cost: $966,983,989)

          1,013,140,839  
   

 

 

 

Preferred Stocks

   
Germany — 0.3%            

Henkel AG & Co. KGaA, Preference Shares, NVS

    48,570       3,250,872  
   

 

 

 

Total Preferred Stocks — 0.3%
(Cost: $4,961,042)

 

    3,250,872  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 0.2%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.34%(c)(d)(e)

    404,240       404,159  
Security   Shares     Value  
Money Market Funds (continued)            

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.25%(c)(d)

    1,390,000     $ 1,390,000  
   

 

 

 
      1,794,159  
   

 

 

 

Total Short-Term Investments — 0.2%
(Cost: $1,794,140)

 

    1,794,159  
   

 

 

 

Total Investments in Securities — 99.6%
(Cost: $973,739,171)

 

    1,018,185,870  

Other Assets, Less Liabilities — 0.4%

      3,589,053  
   

 

 

 

Net Assets — 100.0%

    $   1,021,774,923  
   

 

 

 

 

(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.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 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

03/31/21

   

Purchases

at Cost

    Proceeds
from Sales
   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

    Value at
03/31/22
   

Shares

Held at

03/31/22

    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 1,545,992     $     $ (1,141,239 )(a)    $ (613   $ 19     $ 404,159       404,240     $ 5,675 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    847,000       543,000 (a)                        1,390,000       1,390,000       215        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (613   $ 19     $ 1,794,159       $ 5,890     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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

       

E-Mini Consumer Staples Index

    53       06/17/22     $ 4,037     $ 197,145  

Euro Stoxx 50 Index

    9       06/17/22       378       7,295  

 

 

34  

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


Schedule of Investments  (continued)

March 31, 2022

  

iShares® Global Consumer Staples ETF

 

Futures Contracts (continued)

 

 

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

 

 

FTSE 100 Index

    7       06/17/22     $ 685     $ 21,035  
       

 

 

 
        $ 225,475  
       

 

 

 

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:

 

 

 
     Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments