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SEPTEMBER 30, 2022 |
2022 Semi-Annual Report (Unaudited)
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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 |
Dear Shareholder,
The 12-month reporting period as of September 30, 2022 saw the emergence of significant challenges that disrupted the economic recovery and strong financial markets of 2021. The U.S. economy shrank in the first half of 2022, ending the run of robust growth that followed the reopening of global economies and the development of COVID-19 vaccines. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the ongoing war continued to present challenges for both investors and policymakers.
Equity prices fell as interest rates rose, particularly weighing on relatively high-valuation growth stocks and economically sensitive small-capitalization stocks. While both large- and small-capitalization U.S. stocks fell, declines for small-capitalization U.S. stocks were steeper. Both emerging market stocks and international equities from developed markets fell significantly, pressured by rising interest rates and a strengthening U.S. dollar.
The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose notably during the reporting period as investors reacted to higher inflation and attempted to anticipate its impact on future interest rate changes. The corporate bond market also faced inflationary headwinds, and increasing uncertainty led to higher corporate bond spreads (the difference in yield between U.S. Treasuries and similarly-dated corporate bonds).
The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is proving more persistent than expected, raised interest rates five times while indicating that additional rate hikes were likely. Furthermore, the Fed wound down its bond-buying programs and is accelerating the reduction of its balance sheet. As investors attempted to assess the Fed’s future trajectory, the Fed’s statements late in the reporting period led markets to believe that additional tightening is likely in the near term.
The pandemic’s restructuring of the economy brought an ongoing mismatch between supply and demand, contributing to the current inflationary regime. While growth has slowed in 2022, we believe that taming inflation requires a more dramatic economic decline to bring demand back to a lower level that is more in line with the economy’s capacity. The Fed has been raising interest rates at the fastest pace in decades, and seems set to overtighten in its effort to get inflation back to target. With this in mind, we believe the possibility of a U.S. recession in the near-term is high, and the outlook for Europe and the U.K. is also troubling. Investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt to rapidly changing conditions.
In this environment, while we favor an overweight to equities in the long-term, the market’s concerns over excessive rate hikes from central banks moderate our outlook. Rising input costs and a deteriorating economic backdrop in China and Europe are likely to challenge corporate earnings, so we are underweight equities overall in the near term. However, we see better opportunities in credit, where higher spreads provide income opportunities and partially compensate for inflation risk. We believe that investment-grade corporates, local-currency emerging market debt, and inflation-protected bonds (particularly in Europe) offer strong opportunities for a six- to twelve-month horizon.
Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of September 30, 2022
| ||||
6-Month | 12-Month | |||
U.S.
large cap equities |
(20.20)% | (15.47)% | ||
U.S.
small cap equities |
(19.01) | (23.50) | ||
International
equities |
(22.51) | (25.13) | ||
Emerging market equities (MSCI Emerging Markets Index) |
(21.70) | (28.11) | ||
3-month Treasury bills |
0.58 | 0.63 | ||
U.S.
Treasury securities |
(10.81) | (16.20) | ||
U.S.
investment grade bonds |
(9.22) | (14.60) | ||
Tax-exempt municipal bonds (Bloomberg Municipal Bond Index) |
(6.30) | (11.50) | ||
U.S.
high yield bonds |
(10.42) | (14.15) | ||
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
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T H I S P A G E I S N O T P A R T O F Y O U R F U N D R E P O R T |
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Financial Statements: |
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88 |
Fund Summary as of September 30, 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 | |||||||||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
(28.55 | )% | (36.63 | )% | (0.51 | )% | 2.39 | % | (36.63 | )% | (2.53 | )% | 26.62 | % | ||||||||||||||||||
Fund Market |
(28.41 | ) | (36.55 | ) | (0.48 | ) | 2.41 | (36.55 | ) | (2.39 | ) | 26.88 | ||||||||||||||||||||
Index |
(28.73 | ) | (36.50 | ) | (0.32 | ) | 2.41 | (36.50 | ) | (1.58 | ) | 26.95 |
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 not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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Beginning Account Value (04/01/22) |
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Ending Account Value (09/30/22) |
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Expenses Paid During the Period |
(a) |
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Beginning Account Value (04/01/22) |
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Ending Account Value (09/30/22) |
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Expenses Paid During the Period |
(a) |
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Annualized Expense Ratio |
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$ | 1,000.00 | $ | 714.50 | $ | 1.76 | $ | 1,000.00 | $ | 1,023.00 | $ | 2.08 | 0.41 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
INDUSTRY ALLOCATION
Industry | |
Percent of Total Investments |
(a) | |
Interactive Media & Services |
44.3 | % | ||
Diversified Telecommunication Services |
20.5 | |||
Entertainment |
16.4 | |||
Media |
9.7 | |||
Wireless Telecommunication Services |
9.1 | |||
Industrials |
— | (b) |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent
of Total Investments |
(a) | |
United States |
65.7 | % | ||
China |
9.4 | |||
Japan |
8.6 | |||
Canada |
3.2 | |||
United Kingdom |
2.6 | |||
Germany |
2.1 | |||
France |
1.3 | |||
Spain |
1.3 | |||
Australia |
1.2 | |||
South Korea |
1.1 | |||
Other (each representing less than 1%) |
3.5 |
(a) |
Excludes money market funds. |
(b) |
Rounds to less than 0.1%. |
4 |
2 0 2 2 I S H A R E S S E M I - 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 September 30, 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 | |||||||||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
(21.24 | )% | (24.90 | )% | 4.93 | % | 9.17 | % | (24.90 | )% | 27.18 | % | 140.55 | % | ||||||||||||||||||
Fund Market |
(21.53 | ) | (25.26 | ) | 4.92 | 9.16 | (25.26 | ) | 27.13 | 140.22 | ||||||||||||||||||||||
Index |
(21.59 | ) | (24.74 | ) | 5.09 | 9.17 | (24.74 | ) | 28.18 | 140.41 |
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 not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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Beginning Account Value (04/01/22) |
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Ending Account Value (09/30/22) |
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Expenses Paid During the Period |
(a) |
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Beginning Account Value (04/01/22) |
|
Ending Account Value (09/30/22) |
|
Expenses Paid During the Period |
(a) |
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Annualized Expense Ratio |
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$ | 1,000.00 | $ | 787.60 | $ | 1.84 | $ | 1,000.00 | $ | 1,023.00 | $ | 2.08 | 0.41 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
INDUSTRY ALLOCATION
Industry | |
Percent of Total Investments |
(a) | |
Retailing |
40.6 | % | ||
Automobiles & Components |
25.6 | |||
Consumer Durables & Apparel |
17.0 | |||
Consumer Services |
16.8 |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent
of Total Investments |
(a) | |
United States |
59.7 | % | ||
Japan |
12.0 | |||
China |
8.0 | |||
France |
6.0 | |||
Germany |
3.2 | |||
United Kingdom |
2.1 | |||
Netherlands |
2.0 | |||
Switzerland |
1.3 | |||
Canada |
1.3 | |||
Australia |
1.2 | |||
Other (each representing less than 1%) |
3.2 |
(a) |
Excludes money market funds. |
F U N D S U M M A R Y |
5 |
Fund Summary as of September 30, 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 | |||||||||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
(12.74 | )% | (8.26 | )% | 3.50 | % | 6.27 | % | (8.26 | )% | 18.76 | % | 83.67 | % | ||||||||||||||||||
Fund Market |
(12.81 | ) | (8.59 | ) | 3.49 | 6.25 | (8.59 | ) | 18.70 | 83.43 | ||||||||||||||||||||||
Index |
(12.80 | ) | (8.22 | ) | 3.47 | 6.24 | (8.22 | ) | 18.59 | 83.23 |
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 not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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Beginning Account Value (04/01/22) |
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Ending Account Value (09/30/22) |
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Expenses Paid During the Period |
(a) |
|
Beginning Account Value (04/01/22) |
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Ending Account Value (09/30/22) |
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
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$ | 1,000.00 | $ | 872.60 | $ | 1.92 | $ | 1,000.00 | $ | 1,023.00 | $ | 2.08 | 0.41 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
INDUSTRY ALLOCATION
Industry | |
Percent of Total Investments |
(a) | |
Packaged Foods & Meats |
22.0 | % | ||
Household Products |
15.4 | |||
Soft Drinks |
12.4 | |||
Hypermarkets & Super Centers |
10.3 | |||
Tobacco |
10.3 | |||
Personal Products |
9.4 | |||
Food Retail |
7.1 | |||
Distillers & Vintners |
5.8 | |||
Brewers |
4.1 | |||
Agricultural Products |
1.4 | |||
Food Distributors |
1.1 | |||
Other (each representing less than 1%) |
0.7 |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent
of Total Investments |
(a) | |
United States |
56.3 | % | ||
United Kingdom |
12.6 | |||
Switzerland |
9.3 | |||
Japan |
5.8 | |||
France |
4.8 | |||
Canada |
2.1 | |||
Netherlands |
1.7 | |||
Australia |
1.6 | |||
Belgium |
1.4 | |||
Other (each representing less than 1%) |
4.4 |
(a) |
Excludes money market funds. |
6 |
2 0 2 2 I S H A R E S S E M I - 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 September 30, 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 | |||||||||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
(6.05 | )% | 29.63 | % | 4.15 | % | 2.01 | % | 29.63 | % | 22.52 | % | 22.07 | % | ||||||||||||||||||
Fund Market |
(6.09 | ) | 29.56 | 4.14 | 2.03 | 29.56 | 22.47 | 22.26 | ||||||||||||||||||||||||
Index |
(6.35 | ) | 29.17 | 3.73 | 1.76 | 29.17 | 20.12 | 19.08 |
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 not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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Beginning Account Value (04/01/22) |
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Ending Account Value (09/30/22) |
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Expenses Paid During the Period |
(a) |
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Beginning Account Value (04/01/22) |
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Ending Account Value (09/30/22) |
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Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
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$ | 1,000.00 | $ | 939.50 | $ | 2.14 | $ | 1,000.00 | $ | 1,022.90 | $ | 2.23 | 0.44 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
INDUSTRY ALLOCATION
Industry | |
Percent of Total Investments |
(a) | |
Integrated Oil & Gas |
55.3 | % | ||
Oil & Gas Exploration & Production |
23.4 | |||
Oil & Gas Storage & Transportation |
9.6 | |||
Oil & Gas Refining & Marketing |
7.2 | |||
Oil & Gas Equipment & Services |
4.1 | |||
Other (each representing less than 1%) |
0.4 |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent
of Total Investments |
(a) | |
United States |
59.7 | % | ||
United Kingdom |
12.5 | |||
Canada |
12.1 | |||
France |
5.0 | |||
Australia |
2.5 | |||
Brazil |
2.1 | |||
Norway |
1.9 | |||
Italy |
1.2 | |||
Other (each representing less than 1%) |
3.0 |
(a) |
Excludes money market funds. |
F U N D S U M M A R Y |
7 |
Fund Summary as of September 30, 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 | |||||||||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
(21.19 | )% | (18.80 | )% | 0.98 | % | 6.54 | % | (18.80 | )% | 5.00 | % | 88.44 | % | ||||||||||||||||||
Fund Market |
(21.13 | ) | (19.03 | ) | 0.95 | 6.54 | (19.03 | ) | 4.84 | 88.48 | ||||||||||||||||||||||
Index |
(21.33 | ) | (18.85 | ) | 1.06 | 6.64 | (18.85 | ) | 5.39 | 90.15 |
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 not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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Beginning Account Value (04/01/22) |
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Ending Account Value (09/30/22) |
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Expenses Paid During the Period |
(a) |
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Beginning Account Value (04/01/22) |
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Ending Account Value (09/30/22) |
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Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
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$ | 1,000.00 | $ | 788.10 | $ | 1.84 | $ | 1,000.00 | $ | 1,023.00 | $ | 2.08 | 0.41 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
INDUSTRY ALLOCATION
Industry | |
Percent of Total Investments |
(a) | |
Banks |
45.5 | % | ||
Insurance |
22.8 | |||
Capital Markets |
20.4 | |||
Diversified Financial Services |
8.8 | |||
Consumer Finance |
2.5 | |||
Equity Real Estate Investment Trusts (REITs) |
— | (b) |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent
of Total Investments |
(a) | |
United States |
52.8 | % | ||
Canada |
9.0 | |||
Australia |
5.2 | |||
United Kingdom |
5.1 | |||
Japan |
4.5 | |||
Switzerland |
3.0 | |||
China |
2.6 | |||
Germany |
2.6 | |||
Hong Kong |
2.2 | |||
France |
1.9 | |||
Singapore |
1.6 | |||
Spain |
1.3 | |||
Sweden |
1.3 | |||
Italy |
1.3 | |||
Brazil |
1.2 | |||
Netherlands |
1.1 | |||
Other (each representing less than 1%) |
3.3 |
(a) |
Excludes money market funds. |
(b) |
Rounds to less than 0.1%. |
8 |
2 0 2 2 I S H A R E S S E M I - 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 September 30, 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 | |||||||||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
(13.21 | )% | (8.86 | )% | 7.64 | % | 10.73 | % | (8.86 | )% | 44.52 | % | 177.14 | % | ||||||||||||||||||
Fund Market |
(13.42 | ) | (8.89 | ) | 7.63 | 10.74 | (8.89 | ) | 44.44 | 177.47 | ||||||||||||||||||||||
Index |
(13.23 | ) | (8.79 | ) | 7.74 | 10.83 | (8.79 | ) | 45.17 | 179.64 |
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 not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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Beginning Account Value (04/01/22) |
|
|
Ending Account Value (09/30/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (04/01/22) |
|
|
Ending Account Value (09/30/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 867.90 | $ | 1.92 | $ | 1,000.00 | $ | 1,023.00 | $ | 2.08 | 0.41 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
INDUSTRY ALLOCATION
Industry | |
Percent of Total Investments |
(a) | |
Pharmaceuticals |
41.1 | % | ||
Health Care Providers & Services |
18.1 | |||
Health Care Equipment & Supplies |
16.9 | |||
Biotechnology |
13.1 | |||
Life Sciences Tools & Services |
10.6 | |||
Health Care Technology |
0.2 |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent of Total Investments |
(a) | |
United States |
72.6 | % | ||
Switzerland |
8.2 | |||
Japan |
4.7 | |||
United Kingdom |
3.8 | |||
Denmark |
3.2 | |||
France |
2.3 | |||
Australia |
1.8 | |||
Germany |
1.6 | |||
Other (each representing less than 1%) |
1.8 |
(a) |
Excludes money market funds. |
F U N D S U M M A R Y |
9 |
Fund Summary as of September 30, 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 | |||||||||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
(21.36 | )% | (21.84 | )% | 2.00 | % | 7.50 | % | (21.84 | )% | 10.40 | % | 106.19 | % | ||||||||||||||||||
Fund Market |
(21.65 | ) | (22.09 | ) | 1.94 | 7.52 | (22.09 | ) | 10.07 | 106.50 | ||||||||||||||||||||||
Index |
(21.55 | ) | (21.83 | ) | 2.10 | 7.55 | (21.83 | ) | 10.96 | 107.02 |
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 not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||
|
Beginning Account Value (04/01/22) |
|
|
Ending Account Value (09/30/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (04/01/22) |
|
|
Ending Account Value (09/30/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 786.40 | $ | 1.84 | $ | 1,000.00 | $ | 1,023.00 | $ | 2.08 | 0.41 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
INDUSTRY ALLOCATION
Industry | |
Percent of Total Investments |
(a) | |
Capital Goods |
66.3 | % | ||
Transportation |
20.7 | |||
Commercial & Professional Services |
13.0 |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent of Total Investments |
(a) | |
United States |
53.6 | % | ||
Japan |
14.7 | |||
France |
6.5 | |||
United Kingdom |
5.2 | |||
Canada |
4.3 | |||
Sweden |
3.2 | |||
Germany |
3.1 | |||
Switzerland |
2.5 | |||
Denmark |
1.3 | |||
Ireland |
1.1 | |||
Other (each representing less than 1%) |
4.5 |
(a) |
Excludes money market funds. |
10 |
2 0 2 2 I S H A R E S S E M I - 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 September 30, 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 | |||||||||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
(25.76 | )% | (16.24 | )% | 3.74 | % | 3.96 | % | (16.24 | )% | 20.13 | % | 47.52 | % | ||||||||||||||||||
Fund Market |
(25.87 | ) | (16.29 | ) | 3.71 | 4.01 | (16.29 | ) | 19.95 | 48.12 | ||||||||||||||||||||||
Index |
(25.86 | ) | (16.26 | ) | 3.90 | 4.13 | (16.26 | ) | 21.09 | 49.90 |
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 not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||
|
Beginning Account Value (04/01/22) |
|
|
Ending Account Value (09/30/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (04/01/22) |
|
|
Ending Account Value (09/30/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 742.40 | $ | 1.79 | $ | 1,000.00 | $ | 1,023.00 | $ | 2.08 | 0.41 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
INDUSTRY ALLOCATION
Industry | |
Percent of Total Investments |
(a) | |
Chemicals |
49.9 | % | ||
Metals & Mining |
37.0 | |||
Construction Materials |
5.6 | |||
Containers & Packaging |
5.4 | |||
Paper & Forest Products |
2.1 |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent
of Total Investments |
(a) | |
United States |
31.1 | % | ||
Australia |
17.0 | |||
Ireland |
9.0 | |||
Canada |
8.5 | |||
Japan |
5.8 | |||
Switzerland |
4.4 | |||
United Kingdom |
4.2 | |||
France |
3.9 | |||
Germany |
3.0 | |||
Brazil |
2.9 | |||
Netherlands |
1.5 | |||
South Korea |
1.5 | |||
Finland |
1.3 | |||
Taiwan |
1.2 | |||
Other (each representing less than 1%) |
4.7 |
(a) |
Excludes money market funds. |
F U N D S U M M A R Y |
11 |
Fund Summary as of September 30, 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 | |||||||||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
(26.71 | )% | (24.84 | )% | 13.24 | % | 15.00 | % | (24.84 | )% | 86.18 | % | 304.69 | % | ||||||||||||||||||
Fund Market |
(27.03 | ) | (25.09 | ) | 13.16 | 15.00 | (25.09 | ) | 85.52 | 304.72 | ||||||||||||||||||||||
Index |
(26.70 | ) | (24.70 | ) | 13.42 | 15.16 | (24.70 | ) | 87.72 | 310.27 |
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 not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||
|
Beginning Account Value (04/01/22) |
|
|
Ending Account Value (09/30/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (04/01/22) |
|
|
Ending Account Value (09/30/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 732.90 | $ | 1.78 | $ | 1,000.00 | $ | 1,023.00 | $ | 2.08 | 0.41 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
INDUSTRY ALLOCATION
Industry | |
Percent of Total Investments |
(a) | |
Software |
28.8 | % | ||
Technology Hardware, Storage & Peripherals |
25.6 | |||
Semiconductors & Semiconductor Equipment |
21.8 | |||
IT Services |
16.3 | |||
Electronic Equipment, Instruments & Components |
4.5 | |||
Communications Equipment |
3.0 |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent
of Total Investments |
(a) | |
United States |
82.5 | % | ||
Taiwan |
3.6 | |||
Japan |
3.3 | |||
South Korea |
2.8 | |||
Netherlands |
2.7 | |||
Germany |
1.2 | |||
Other (each representing less than 1%) |
3.9 |
(a) |
Excludes money market funds. |
12 |
2 0 2 2 I S H A R E S S E M I - 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 September 30, 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 | |||||||||||||||||||||||||||||||
6-Month Total Returns |
1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
(15.29 | )% | (4.03 | )% | 4.77 | % | 6.35 | % | (4.03 | )% | 26.22 | % | 85.09 | % | ||||||||||||||||||
Fund Market |
(15.69 | ) | (4.20 | ) | 4.73 | 6.33 | (4.20 | ) | 25.97 | 84.66 | ||||||||||||||||||||||
Index |
(15.52 | ) | (4.29 | ) | 4.45 | 6.06 | (4.29 | ) | 24.35 | 80.14 |
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 not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||
|
Beginning Account Value (04/01/22) |
|
|
Ending Account Value (09/30/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (04/01/22) |
|
|
Ending Account Value (09/30/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 847.10 | $ | 1.90 | $ | 1,000.00 | $ | 1,023.00 | $ | 2.08 | 0.41 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information. |
Portfolio Information
INDUSTRY ALLOCATION
Industry | |
Percent of Total Investments |
(a) | |
Electric Utilities |
61.8 | % | ||
Multi-Utilities |
28.8 | |||
Gas Utilities |
3.8 | |||
Independent Power and Renewable Electricity Producers |
2.9 | |||
Water Utilities |
2.7 |
GEOGRAPHIC ALLOCATION
Country/Geographic Region | |
Percent
of Total Investments |
(a) | |
United States |
67.7 | % | ||
Spain |
5.4 | |||
United Kingdom |
5.2 | |||
Canada |
4.4 | |||
Italy |
3.6 | |||
Germany |
3.1 | |||
France |
3.0 | |||
Japan |
2.0 | |||
Denmark |
1.1 | |||
Australia |
1.0 | |||
Other (each representing less than 1%) |
3.5 |
(a) |
Excludes money market funds. |
F U N D S U M M A R Y |
13 |
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.
Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.
The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
14 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) September 30, 2022 |
iShares® Global Comm Services ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
|
|||||||
Australia — 1.1% | ||||||||
SEEK Ltd. |
23,428 | $ | 284,738 | |||||
Telstra Corp. Ltd. |
763,299 | 1,884,759 | ||||||
|
|
|||||||
2,169,497 | ||||||||
Canada — 3.2% | ||||||||
BCE Inc. |
60,234 | 2,525,611 | ||||||
Rogers Communications Inc., Class B, NVS |
23,146 | 891,591 | ||||||
Shaw Communications Inc., Class B, NVS |
29,619 | 720,239 | ||||||
TELUS Corp. |
93,655 | 1,859,744 | ||||||
|
|
|||||||
5,997,185 | ||||||||
China — 9.4% | ||||||||
Baidu Inc.(a) |
149,550 | 2,201,555 | ||||||
Kuaishou Technology(a)(b) |
128,800 | 826,142 | ||||||
NetEase Inc. |
120,900 | 1,824,311 | ||||||
Tencent Holdings Ltd. |
380,700 | 12,858,641 | ||||||
|
|
|||||||
17,710,649 | ||||||||
Finland — 0.2% | ||||||||
Elisa OYJ |
9,947 | 450,689 | ||||||
|
|
|||||||
France — 1.3% | ||||||||
Orange SA |
124,757 | 1,128,369 | ||||||
Publicis Groupe SA |
15,589 | 738,648 | ||||||
Ubisoft Entertainment SA(a) |
6,314 | 173,525 | ||||||
Vivendi SE |
53,455 | 414,627 | ||||||
|
|
|||||||
2,455,169 | ||||||||
Germany — 2.1% | ||||||||
Deutsche Telekom AG, Registered |
230,582 | 3,924,889 | ||||||
|
|
|||||||
Italy — 0.1% | ||||||||
Telecom Italia SpA/Milano(a) |
682,664 | 126,270 | ||||||
|
|
|||||||
Japan — 8.6% | ||||||||
Dentsu Group Inc. |
16,000 | 454,840 | ||||||
KDDI Corp. |
103,500 | 3,025,954 | ||||||
Nexon Co. Ltd. |
30,700 | 542,400 | ||||||
Nintendo Co. Ltd. |
77,000 | 3,105,739 | ||||||
Nippon Telegraph & Telephone Corp. |
150,700 | 4,064,728 | ||||||
SoftBank Corp. |
182,900 | 1,826,426 | ||||||
SoftBank Group Corp. |
78,500 | 2,660,450 | ||||||
Z Holdings Corp. |
175,200 | 464,396 | ||||||
|
|
|||||||
16,144,933 | ||||||||
Mexico — 0.7% | ||||||||
America Movil SAB de CV, Series L, NVS |
1,269,722 | 1,048,461 | ||||||
Grupo Televisa SAB, CPO |
166,620 | 180,358 | ||||||
Sitios Latinoamerica SAB de CV |
63,486 | 28,339 | ||||||
|
|
|||||||
1,257,158 | ||||||||
Netherlands — 0.8% | ||||||||
Koninklijke KPN NV |
215,496 | 583,211 | ||||||
Universal Music Group NV |
50,305 | 942,214 | ||||||
|
|
|||||||
1,525,425 | ||||||||
Norway — 0.2% | ||||||||
Telenor ASA |
42,520 | 389,148 | ||||||
|
|
|||||||
South Korea — 1.1% | ||||||||
Kakao Corp. |
20,575 | 809,615 | ||||||
NAVER Corp. |
9,851 | 1,312,313 | ||||||
|
|
|||||||
2,121,928 | ||||||||
Spain — 1.3% | ||||||||
Cellnex Telecom SA(b) |
37,691 | 1,162,638 |
Security | Shares | Value | ||||||
Spain (continued) | ||||||||
Telefonica SA |
372,566 | $ | 1,231,672 | |||||
|
|
|||||||
2,394,310 | ||||||||
Sweden — 0.6% | ||||||||
Embracer Group AB(a)(c) |
54,078 | 320,530 | ||||||
Tele2 AB, Class B |
36,306 | 313,305 | ||||||
Telia Co. AB |
162,096 | 466,850 | ||||||
|
|
|||||||
1,100,685 | ||||||||
Switzerland — 0.4% | ||||||||
Swisscom AG, Registered |
1,674 | 783,835 | ||||||
|
|
|||||||
Taiwan — 0.5% | ||||||||
Chunghwa Telecom Co. Ltd. |
251,120 | 898,792 | ||||||
|
|
|||||||
United Kingdom — 2.6% | ||||||||
Auto Trader Group PLC(b) |
64,013 | 363,022 | ||||||
BT Group PLC |
460,955 | 619,662 | ||||||
Informa PLC |
99,297 | 567,571 | ||||||
Pearson PLC |
49,979 | 477,279 | ||||||
Rightmove PLC |
57,837 | 308,555 | ||||||
Vodafone Group PLC |
1,770,425 | 1,981,459 | ||||||
WPP PLC |
80,237 | 662,371 | ||||||
|
|
|||||||
4,979,919 | ||||||||
United States — 65.7% | ||||||||
Activision Blizzard Inc. |
47,027 | 3,495,987 | ||||||
Alphabet Inc., Class A(a) |
229,204 | 21,923,363 | ||||||
Alphabet Inc., Class C, NVS(a) |
204,958 | 19,706,712 | ||||||
AT&T Inc. |
470,752 | 7,221,336 | ||||||
Charter Communications Inc., Class A(a) |
7,315 | 2,219,005 | ||||||
Comcast Corp., Class A |
272,904 | 8,004,274 | ||||||
DISH Network Corp., Class A(a) |
16,579 | 229,288 | ||||||
Electronic Arts Inc. |
17,446 | 2,018,677 | ||||||
Fox Corp., Class A, NVS |
20,244 | 621,086 | ||||||
Fox Corp., Class B |
9,144 | 260,604 | ||||||
Interpublic Group of Companies Inc. (The) |
25,823 | 661,069 | ||||||
Live Nation Entertainment Inc.(a) |
9,382 | 713,407 | ||||||
Lumen Technologies Inc. |
62,914 | 458,014 | ||||||
Match Group Inc.(a) |
18,687 | 892,304 | ||||||
Meta Platforms Inc, Class A(a) |
143,360 | 19,451,085 | ||||||
Netflix Inc.(a) |
29,378 | 6,916,756 | ||||||
News Corp., Class A, NVS |
25,464 | 384,761 | ||||||
News Corp., Class B |
8,019 | 123,653 | ||||||
Omnicom Group Inc. |
13,522 | 853,103 | ||||||
Paramount Global, Class B, NVS |
33,355 | 635,079 | ||||||
Take-Two Interactive Software Inc.(a) |
10,343 | 1,127,387 | ||||||
T-Mobile U.S. Inc.(a) |
39,762 | 5,334,868 | ||||||
Twitter Inc.(a) |
44,407 | 1,946,803 | ||||||
Verizon Communications Inc. |
232,378 | 8,823,393 | ||||||
Walt Disney Co. (The)(a) |
85,347 | 8,050,782 | ||||||
Warner Bros. Discovery Inc.(a)(c) |
145,927 | 1,678,160 | ||||||
|
|
|||||||
123,750,956 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.9% |
|
188,181,437 | ||||||
|
|
S C H E D U L E O F I N V E S T M E N T S |
15 |
Schedule of Investments (unaudited) (continued) September 30, 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(a) |
389,747 | $ | 70,203 | |||||
|
|
|||||||
Total
Preferred Stocks — 0.0% |
|
70,203 | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.9% |
|
188,251,640 | ||||||
|
|
|||||||
Short-Term Securities |
| |||||||
Money Market Funds — 1.1% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 3.18%(d)(e)(f) |
1,940,491 | 1,941,073 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.81%(d)(e) |
190,000 | 190,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 1.1% |
|
2,131,073 | ||||||
|
|
|||||||
Total
Investments — 101.0% |
|
190,382,713 | ||||||
Liabilities in Excess of Other Assets — (1.0)% |
|
(1,937,608 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
$ | 188,445,105 | ||||||
|
|
(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. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
|
||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value
at 03/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/22 |
Shares Held at 09/30/22 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | — | $ | 1,939,801 | (a) | $ | — | $ | 1,272 | $ | — | $ | 1,941,073 | 1,940,491 | $ | 3,582 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
330,000 | — | (140,000 | )(a) | — | — | 190,000 | 190,000 | 1,191 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 1,272 | $ | — | $ | 2,131,073 | $ | 4,773 | $ | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 |
||||||||||||||||
Mini TOPIX Index |
3 | 12/08/22 | $ | 38 | $ | (725 | ) | |||||||||
E-Mini S&P Communication Services Select Sector Index |
2 | 12/16/22 | 126 | (1,581 | ) | |||||||||||
|
|
|||||||||||||||
$ | (2,306 | ) | ||||||||||||||
|
|
16 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 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:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 2,306 | $ | — | $ | — | $ | — | $ | 2,306 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (55,782 | ) | $ | — | $ | — | $ | — | $ | (55,782 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 4,509 | $ | — | $ | — | $ | — | $ | 4,509 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 202,461 |
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 |
$ | 131,005,299 | $ | 57,176,138 | $ | — | $ | 188,181,437 | ||||||||
Preferred Stocks |
— | 70,203 | — | 70,203 | ||||||||||||
Money Market Funds |
2,131,073 | — | — | 2,131,073 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 133,136,372 | $ | 57,246,341 | $ | — | $ | 190,382,713 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (1,581 | ) | $ | (725 | ) | $ | — | $ | (2,306 | ) | |||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
17 |
Schedule of Investments (unaudited) September 30, 2022 |
iShares® Global Consumer Discretionary ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Australia — 1.2% | ||||||||
Aristocrat Leisure Ltd. |
41,460 | $ | 874,250 | |||||
Lottery Corp. Ltd. (The)(a) |
138,752 | 371,848 | ||||||
Wesfarmers Ltd. |
70,683 | 1,932,369 | ||||||
|
|
|||||||
3,178,467 | ||||||||
Brazil — 0.2% | ||||||||
Lojas Renner SA |
61,673 | 318,406 | ||||||
Magazine Luiza SA(a) |
167,029 | 138,717 | ||||||
|
|
|||||||
457,123 | ||||||||
Canada — 1.3% | ||||||||
Canadian Tire Corp. Ltd., Class A, NVS |
3,473 | 369,714 | ||||||
Dollarama Inc. |
17,964 | 1,031,270 | ||||||
Gildan Activewear Inc. |
10,991 | 310,710 | ||||||
Magna International Inc. |
16,753 | 794,747 | ||||||
Restaurant Brands International Inc. |
19,081 | 1,015,001 | ||||||
|
|
|||||||
3,521,442 | ||||||||
Chile — 0.0% | ||||||||
Falabella SA |
44,865 | 89,473 | ||||||
|
|
|||||||
China — 8.0% | ||||||||
Alibaba Group Holding Ltd.(a) |
986,900 | 9,848,606 | ||||||
ANTA Sports Products Ltd. |
68,200 | 715,881 | ||||||
BYD Co. Ltd., Class H |
54,500 | 1,342,637 | ||||||
JD.com Inc., Class A |
147,000 | 3,708,543 | ||||||
Li Ning Co. Ltd. |
145,500 | 1,104,037 | ||||||
Meituan, Class B(a)(b) |
254,200 | 5,342,380 | ||||||
|
|
|||||||
22,062,084 | ||||||||
Denmark — 0.1% | ||||||||
Pandora A/S |
5,954 | 278,446 | ||||||
|
|
|||||||
France — 5.9% | ||||||||
Accor SA(a) |
10,493 | 219,677 | ||||||
Cie Generale des Etablissements Michelin SCA |
44,518 | 997,457 | ||||||
Hermes International |
2,172 | 2,554,532 | ||||||
Kering SA |
4,513 | 2,001,734 | ||||||
LVMH Moet Hennessy Louis Vuitton SE |
16,315 | 9,618,911 | ||||||
Renault SA(a) |
12,937 | 350,024 | ||||||
Sodexo SA |
5,240 | 393,526 | ||||||
Valeo |
13,795 | 208,440 | ||||||
|
|
|||||||
16,344,301 | ||||||||
Germany — 2.4% | ||||||||
adidas AG |
11,138 | 1,280,438 | ||||||
Bayerische Motoren Werke AG |
19,890 | 1,348,095 | ||||||
Continental AG |
6,734 | 298,810 | ||||||
Delivery Hero SE(a)(b) |
11,431 | 417,542 | ||||||
Mercedes-Benz Group AG |
49,110 | 2,483,347 | ||||||
Puma SE |
6,393 | 295,741 | ||||||
Volkswagen AG |
1,779 | 289,922 | ||||||
Zalando SE(a)(b) |
13,891 | 271,332 | ||||||
|
|
|||||||
6,685,227 | ||||||||
Ireland — 0.4% | ||||||||
Flutter Entertainment PLC, Class DI(a) |
9,535 | 1,051,059 | ||||||
|
|
|||||||
Italy — 0.7% | ||||||||
Ferrari NV |
7,979 | 1,477,597 | ||||||
Moncler SpA |
12,967 | 529,372 | ||||||
|
|
|||||||
2,006,969 | ||||||||
Japan — 11.9% | ||||||||
Aisin Corp. |
11,500 | 296,007 |
Security | Shares | Value | ||||||
Japan (continued) | ||||||||
Bandai Namco Holdings Inc. |
13,900 | $ | 905,839 | |||||
Bridgestone Corp. |
38,400 | 1,241,891 | ||||||
Denso Corp. |
31,600 | 1,444,852 | ||||||
Fast Retailing Co. Ltd. |
4,100 | 2,172,771 | ||||||
Honda Motor Co. Ltd. |
106,243 | 2,306,086 | ||||||
Isuzu Motors Ltd. |
38,900 | 430,134 | ||||||
Nissan Motor Co. Ltd. |
147,500 | 475,338 | ||||||
Nitori Holdings Co. Ltd. |
5,500 | 461,560 | ||||||
Oriental Land Co. Ltd./Japan |
14,600 | 1,980,180 | ||||||
Pan Pacific International Holdings Corp. |
33,300 | 587,438 | ||||||
Panasonic Holdings Corp. |
145,400 | 1,021,005 | ||||||
Rakuten Group Inc. |
58,500 | 250,350 | ||||||
Sekisui House Ltd. |
42,800 | 708,866 | ||||||
Shimano Inc. |
5,300 | 829,264 | ||||||
Sony Group Corp. |
78,700 | 5,069,414 | ||||||
Subaru Corp. |
38,488 | 581,644 | ||||||
Sumitomo Electric Industries Ltd. |
49,500 | 502,500 | ||||||
Suzuki Motor Corp. |
30,800 | 958,808 | ||||||
Toyota Motor Corp. |
783,100 | 10,235,464 | ||||||
Yamaha Motor Co. Ltd. |
22,013 | 412,434 | ||||||
|
|
|||||||
32,871,845 | ||||||||
Netherlands — 2.0% | ||||||||
Prosus NV |
74,976 | 3,900,746 | ||||||
Stellantis NV |
134,841 | 1,592,801 | ||||||
|
|
|||||||
5,493,547 | ||||||||
South Korea — 0.7% | ||||||||
Hyundai Motor Co. |
8,792 | 1,072,963 | ||||||
Kia Corp. |
16,679 | 830,146 | ||||||
|
|
|||||||
1,903,109 | ||||||||
Spain — 0.5% | ||||||||
Industria de Diseno Textil SA |
69,944 | 1,443,409 | ||||||
|
|
|||||||
Sweden — 0.6% | ||||||||
Electrolux AB, Class B |
15,171 | 157,678 | ||||||
Evolution AB(b) |
11,935 | 943,433 | ||||||
H & M Hennes & Mauritz AB, Class B |
43,841 | 405,314 | ||||||
|
|
|||||||
1,506,425 | ||||||||
Switzerland — 1.3% | ||||||||
Cie. Financiere Richemont SA, Class A, Registered |
32,541 | 3,071,722 | ||||||
Swatch Group AG (The), Bearer |
1,804 | 405,175 | ||||||
Swatch Group AG (The), Registered |
3,464 | 145,117 | ||||||
|
|
|||||||
3,622,014 | ||||||||
United Kingdom — 2.1% | ||||||||
Barratt Developments PLC |
64,216 | 242,699 | ||||||
Berkeley Group Holdings PLC |
7,005 | 255,931 | ||||||
Burberry Group PLC |
25,241 | 504,201 | ||||||
Compass Group PLC |
111,300 | 2,216,251 | ||||||
Entain PLC |
36,705 | 438,862 | ||||||
InterContinental Hotels Group PLC |
11,702 | 563,590 | ||||||
Kingfisher PLC |
125,720 | 306,030 | ||||||
Next PLC |
8,058 | 427,685 | ||||||
Persimmon PLC |
19,907 | 272,253 | ||||||
Taylor Wimpey PLC |
219,330 | 213,570 | ||||||
Whitbread PLC |
12,624 | 319,999 | ||||||
|
|
|||||||
5,761,071 | ||||||||
United States — 59.5% | ||||||||
Advance Auto Parts Inc. |
3,780 | 590,966 | ||||||
Amazon.com Inc.(a) |
235,300 | 26,588,900 | ||||||
Aptiv PLC(a) |
16,890 | 1,320,967 |
18 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2022 |
iShares® Global Consumer Discretionary ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
AutoZone Inc.(a) |
1,215 | $ | 2,602,445 | |||||
Bath & Body Works Inc. |
14,034 | 457,508 | ||||||
Best Buy Co. Inc. |
12,494 | 791,370 | ||||||
Booking Holdings Inc.(a) |
2,475 | 4,066,945 | ||||||
BorgWarner Inc. |
14,764 | 463,590 | ||||||
Caesars Entertainment Inc.(a)(c) |
13,367 | 431,219 | ||||||
CarMax Inc.(a) |
9,923 | 655,116 | ||||||
Carnival Corp.(a) |
61,534 | 432,584 | ||||||
Chipotle Mexican Grill Inc.(a) |
1,732 | 2,602,780 | ||||||
Darden Restaurants Inc. |
7,643 | 965,464 | ||||||
Dollar General Corp. |
14,152 | 3,394,499 | ||||||
Dollar Tree Inc.(a) |
13,247 | 1,802,917 | ||||||
Domino’s Pizza Inc. |
2,238 | 694,228 | ||||||
DR Horton Inc. |
19,712 | 1,327,603 | ||||||
eBay Inc. |
34,247 | 1,260,632 | ||||||
Etsy Inc.(a) |
7,893 | 790,326 | ||||||
Expedia Group Inc.(a) |
9,479 | 888,088 | ||||||
Ford Motor Co. |
246,200 | 2,757,440 | ||||||
Garmin Ltd. |
9,619 | 772,502 | ||||||
General Motors Co. |
90,895 | 2,916,821 | ||||||
Genuine Parts Co. |
8,818 | 1,316,704 | ||||||
Hasbro Inc. |
8,094 | 545,697 | ||||||
Hilton Worldwide Holdings Inc. |
17,101 | 2,062,723 | ||||||
Home Depot Inc. (The) |
46,089 | 12,717,799 | ||||||
Las Vegas Sands Corp.(a) |
20,235 | 759,217 | ||||||
Lennar Corp., Class A |
15,896 | 1,185,047 | ||||||
LKQ Corp. |
16,250 | 766,187 | ||||||
Lowe’s Companies Inc. |
39,843 | 7,482,914 | ||||||
Marriott International Inc./MD, Class A |
17,198 | 2,410,128 | ||||||
McDonald’s Corp. |
45,864 | 10,582,659 | ||||||
MGM Resorts International |
20,811 | 618,503 | ||||||
Mohawk Industries Inc.(a) |
3,287 | 299,742 | ||||||
Newell Brands Inc., NVS |
23,464 | 325,915 | ||||||
Nike Inc., Class B |
78,776 | 6,547,861 | ||||||
Norwegian Cruise Line Holdings Ltd.(a) |
26,270 | 298,427 | ||||||
NVR Inc.(a)(c) |
193 | 769,506 | ||||||
O’Reilly Automotive Inc.(a) |
3,975 | 2,795,816 | ||||||
Pool Corp.(c) |
2,470 | 785,979 | ||||||
PulteGroup Inc. |
14,433 | 541,237 | ||||||
Ralph Lauren Corp. |
2,757 | 234,152 | ||||||
Ross Stores Inc. |
21,815 | 1,838,350 | ||||||
Royal Caribbean Cruises Ltd.(a) |
13,676 | 518,320 | ||||||
Starbucks Corp. |
71,528 | 6,026,949 | ||||||
Tapestry Inc. |
15,699 | 446,323 | ||||||
Target Corp. |
28,907 | 4,289,510 | ||||||
Tesla Inc.(a) |
107,390 | 28,485,197 | ||||||
TJX Companies Inc. (The) |
73,038 | 4,537,121 | ||||||
Tractor Supply Co. |
6,921 | 1,286,475 | ||||||
Ulta Beauty, Inc.(a) |
3,232 | 1,296,646 | ||||||
VF Corp. |
20,586 | 615,727 |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
Whirlpool Corp. |
3,407 | $ | 459,298 | |||||
Wynn Resorts Ltd.(a) |
6,361 | 400,934 | ||||||
Yum! Brands Inc. |
17,738 | 1,886,259 | ||||||
|
|
|||||||
163,708,232 | ||||||||
|
|
|||||||
Total
Common Stocks — 98.8% |
271,984,243 | |||||||
|
|
|||||||
Preferred Stocks |
||||||||
Germany — 0.8% |
||||||||
Bayerische Motoren Werke AG, Preference Shares, NVS |
3,431 | 222,803 | ||||||
Porsche Automobil Holding SE, Preference Shares, NVS |
9,546 | 537,851 | ||||||
Volkswagen AG, Preference Shares, NVS |
11,441 | 1,397,998 | ||||||
|
|
|||||||
2,158,652 | ||||||||
South Korea — 0.1% | ||||||||
Hyundai Motor Co. |
||||||||
Preference Shares, NVS |
1,372 | 80,211 | ||||||
Series 2, Preference Shares, NVS |
2,238 | 130,116 | ||||||
|
|
|||||||
210,327 | ||||||||
|
|
|||||||
Total
Preferred Stocks — 0.9% |
2,368,979 | |||||||
|
|
|||||||
Total
Long-Term Investments — 99.7% |
274,353,222 | |||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.7% |
||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 3.18%(d)(e)(f) |
1,574,201 | 1,574,673 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.81%(d)(e) |
270,000 | 270,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.7% |
1,844,673 | |||||||
|
|
|||||||
Total
Investments — 100.4% |
276,197,895 | |||||||
Liabilities in Excess of Other Assets — (0.4)% |
|
(969,763 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
$ | 275,228,132 | ||||||
|
|
(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. |
S C H E D U L E O F I N V E S T M E N T S |
19 |
Schedule of Investments (unaudited) (continued) September 30, 2022 |
iShares® Global Consumer Discretionary ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/22 |
Shares Held at 09/30/22 |
Income | Capital Gain Distributions from Underlying Funds |
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BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 2,228,868 | $ | — | $ | (649,364 | )(a) | $ | (4,831 | ) | $ | — | $ | 1,574,673 | 1,574,201 | $ | 7,694 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
370,000 | — | (100,000 | )(a) | — | — | 270,000 | 270,000 | 2,863 | — | ||||||||||||||||||||||||||
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$ | (4,831 | ) | $ | — | $ | 1,844,673 | $ | 10,557 | $ | — | ||||||||||||||||||||||||||
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(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
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Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
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Long Contracts |
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TOPIX Index |
1 | 12/08/22 | $ | 127 | $ | (4,620 | ) | |||||||||
E-Mini Consumer Discretionary Index |
3 | 12/16/22 | 434 | (47,384 | ) | |||||||||||
Euro STOXX 50 Index |
8 | 12/16/22 | 257 | (12,290 | ) | |||||||||||
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$ | (64,294 | ) | ||||||||||||||
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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:
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Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
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Liabilities — Derivative Financial Instruments |
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Futures contracts |
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Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 64,294 | $ | — | $ | — | $ | — | $ | 64,294 | ||||||||||||||
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(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 September 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
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Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
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Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (119,025 | ) | $ | — | $ | — | $ | — | $ | (119,025 | ) | ||||||||||||
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Net Change in Unrealized Appreciation (Depreciation) on |
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Futures contracts |
$ | — | $ | — | $ | (138,052 | ) | $ | — | $ | — | $ | — | $ | (138,052 | ) | ||||||||||||
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Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts |
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Average notional value of contracts — long |
$ | 743,622 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
20 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 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.
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Level 1 | Level 2 | Level 3 | Total | |||||||||||||
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Investments |
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Assets |
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Common Stocks |
$ | 167,686,797 | $ | 104,297,446 | $ | — | $ | 271,984,243 | ||||||||
Preferred Stocks |
— | 2,368,979 | — | 2,368,979 | ||||||||||||
Money Market Funds |
1,844,673 | — | — | 1,844,673 | ||||||||||||
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$ | 169,531,470 | $ | 106,666,425 | $ | — | $ | 276,197,895 | |||||||||
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Derivative financial instruments(a) |
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Liabilities |
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Futures Contracts |
$ | (47,384 | ) | $ | (16,910 | ) | $ | — | $ | (64,294 | ) | |||||
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(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
21 |
Schedule of Investments (unaudited) September 30, 2022 |
iShares® Global Consumer Staples ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
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Australia — 1.6% | ||||||||
Coles Group Ltd. |
470,130 | $ | 4,956,282 | |||||
Endeavour Group Ltd./Australia |
441,069 | 1,982,223 | ||||||
Treasury Wine Estates Ltd. |
256,040 | 2,060,187 | ||||||
Woolworths Group Ltd. |
427,073 | 9,280,572 | ||||||
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18,279,264 | ||||||||
Belgium — 1.4% | ||||||||
Anheuser-Busch InBev SA/NV |
348,368 | 15,779,900 | ||||||
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Brazil — 0.5% | ||||||||
Ambev SA, ADR |
1,551,539 | 4,390,856 | ||||||
BRF SA, ADR(a)(b) |
228,500 | 534,690 | ||||||
Natura & Co. Holding SA |
301,950 | 824,515 | ||||||
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5,750,061 | ||||||||
Canada — 2.1% | ||||||||
Alimentation Couche-Tard Inc. |
278,340 | 11,205,333 | ||||||
George Weston Ltd. |
23,401 | 2,450,130 | ||||||
Loblaw Companies Ltd. |
54,168 | 4,289,207 | ||||||
Metro Inc. |
84,051 | 4,208,787 | ||||||
Saputo Inc. |
85,173 | 2,030,439 | ||||||
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24,183,896 | ||||||||
Chile — 0.0% | ||||||||
Cencosud SA |
447,825 | 566,715 | ||||||
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Denmark — 0.3% | ||||||||
Carlsberg A/S, Class B |
34,758 | 4,064,478 | ||||||
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Finland — 0.2% | ||||||||
Kesko OYJ, Class B |
97,720 | 1,823,159 | ||||||
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France — 4.8% | ||||||||
Carrefour SA |
206,272 | 2,860,804 | ||||||
Danone SA |
223,489 | 10,567,743 | ||||||
L’Oreal SA |
88,930 | 28,434,656 | ||||||
Pernod Ricard SA |
71,976 | 13,204,293 | ||||||
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55,067,496 | ||||||||
Germany — 0.6% | ||||||||
Beiersdorf AG |
34,462 | 3,386,316 | ||||||
HelloFresh SE(a) |
62,149 | 1,300,897 | ||||||
Henkel AG & Co. KGaA |
35,015 | 1,984,412 | ||||||
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6,671,625 | ||||||||
Ireland — 0.4% | ||||||||
Kerry Group PLC, Class A |
54,938 | 4,896,749 | ||||||
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Japan — 5.8% | ||||||||
Aeon Co. Ltd. |
306,717 | 5,727,481 | ||||||
Ajinomoto Co. Inc. |
188,900 | 5,162,880 | ||||||
Asahi Group Holdings Ltd. |
179,898 | 5,608,510 | ||||||
Japan Tobacco Inc. |
387,000 | 6,359,472 | ||||||
Kao Corp. |
167,100 | 6,799,354 | ||||||
Kikkoman Corp. |
68,000 | 3,854,991 | ||||||
Kirin Holdings Co. Ltd. |
291,996 | 4,498,414 | ||||||
MEIJI Holdings Co. Ltd. |
49,400 | 2,192,884 | ||||||
Nissin Foods Holdings Co. Ltd. |
29,000 | 2,015,786 | ||||||
Seven & i Holdings Co. Ltd. |
282,137 | 11,333,453 | ||||||
Shiseido Co. Ltd. |
140,700 | 4,931,141 | ||||||
Unicharm Corp. |
155,100 | 5,088,035 | ||||||
Yakult Honsha Co. Ltd. |
55,720 | 3,235,370 | ||||||
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66,807,771 |
Security | Shares | Value | ||||||
Mexico — 0.9% | ||||||||
Fomento Economico Mexicano SAB de CV |
645,338 | $ | 4,044,517 | |||||
Wal-Mart de Mexico SAB de CV |
1,781,539 | 6,265,618 | ||||||
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10,310,135 | ||||||||
Netherlands — 1.7% | ||||||||
Heineken Holding NV |
38,507 | 2,636,136 | ||||||
Heineken NV |
82,986 | 7,247,255 | ||||||
Koninklijke Ahold Delhaize NV |
367,905 | 9,371,066 | ||||||
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19,254,457 | ||||||||
Norway — 0.3% | ||||||||
Mowi ASA |
161,325 | 2,051,979 | ||||||
Orkla ASA |
264,241 | 1,920,849 | ||||||
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|
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3,972,828 | ||||||||
Sweden — 0.8% | ||||||||
Essity AB, Class B |
212,002 | 4,188,479 | ||||||
Swedish Match AB |
538,085 | 5,322,591 | ||||||
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|
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9,511,070 | ||||||||
Switzerland — 9.2% | ||||||||
Barry Callebaut AG, Registered |
1,255 | 2,365,692 | ||||||
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates, NVS |
366 | 3,537,137 | ||||||
Chocoladefabriken Lindt & Spruengli AG, Registered |
38 | 3,784,281 | ||||||
Nestle SA, Registered |
896,304 | 96,941,831 | ||||||
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106,628,941 | ||||||||
United Kingdom — 12.5% | ||||||||
Associated British Foods PLC |
127,458 | 1,780,921 | ||||||
British American Tobacco PLC |
788,029 | 28,256,776 | ||||||
Diageo PLC |
821,653 | 34,586,244 | ||||||
Haleon PLC(a) |
1,802,690 | 5,620,726 | ||||||
Imperial Brands PLC |
339,115 | 6,973,172 | ||||||
J Sainsbury PLC |
614,706 | 1,190,429 | ||||||
Marks & Spencer Group PLC(a) |
691,301 | 754,079 | ||||||
Ocado Group PLC(a) |
256,478 | 1,330,985 | ||||||
Reckitt Benckiser Group PLC |
259,126 | 17,175,243 | ||||||
Tesco PLC |
2,634,885 | 6,047,250 | ||||||
Unilever PLC |
926,609 | 40,715,058 | ||||||
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144,430,883 | ||||||||
United States — 56.0% | ||||||||
Altria Group Inc. |
635,000 | 25,641,300 | ||||||
Archer-Daniels-Midland Co. |
197,934 | 15,923,790 | ||||||
Brown-Forman Corp., Class B |
64,327 | 4,282,248 | ||||||
Campbell Soup Co. |
70,851 | 3,338,499 | ||||||
Church & Dwight Co. Inc. |
86,078 | 6,149,412 | ||||||
Clorox Co. (The) |
43,331 | 5,563,267 | ||||||
Coca-Cola Co. (The)(b) |
1,120,787 | 62,786,488 | ||||||
Colgate-Palmolive Co. |
294,263 | 20,671,976 | ||||||
Conagra Brands Inc. |
168,905 | 5,511,370 | ||||||
Constellation Brands Inc., Class A |
56,055 | 12,874,712 | ||||||
Costco Wholesale Corp. |
105,179 | 49,672,886 | ||||||
Estee Lauder Companies Inc. (The), Class A(b) |
81,553 | 17,607,293 | ||||||
General Mills Inc. |
210,390 | 16,117,978 | ||||||
Hershey Co. (The) |
51,672 | 11,392,126 | ||||||
Hormel Foods Corp. |
102,550 | 4,659,872 | ||||||
JM Smucker Co. (The) |
37,489 | 5,151,364 | ||||||
Kellogg Co. |
89,623 | 6,243,138 | ||||||
Keurig Dr Pepper Inc. |
298,919 | 10,707,279 | ||||||
Kimberly-Clark Corp. |
118,782 | 13,367,726 | ||||||
Kraft Heinz Co. (The) |
280,236 | 9,345,871 | ||||||
Kroger Co. (The) |
229,090 | 10,022,688 | ||||||
Lamb Weston Holdings Inc. |
50,564 | 3,912,642 |
22 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2022 |
iShares® Global Consumer Staples ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
McCormick & Co. Inc./MD, NVS |
88,121 | $ | 6,280,384 | |||||
Molson Coors Beverage Co., Class B |
66,210 | 3,177,418 | ||||||
Mondelez International Inc., Class A |
483,199 | 26,493,801 | ||||||
Monster Beverage Corp.(a)(b) |
136,015 | 11,827,864 | ||||||
PepsiCo Inc. |
321,542 | 52,494,947 | ||||||
Philip Morris International Inc. |
546,315 | 45,349,608 | ||||||
Procter & Gamble Co. (The) |
778,824 | 98,326,529 | ||||||
Sysco Corp. |
180,021 | 12,729,285 | ||||||
Tyson Foods Inc., Class A |
101,893 | 6,717,806 | ||||||
Walgreens Boots Alliance Inc. |
252,371 | 7,924,449 | ||||||
Walmart Inc. |
410,396 | 53,228,361 | ||||||
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645,494,377 | ||||||||
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Total
Common Stocks — 99.1% |
1,143,493,805 | |||||||
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Preferred Stocks |
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Germany — 0.3% | ||||||||
Henkel AG & Co. KGaA, Preference Shares, NVS |
62,642 | 3,720,122 | ||||||
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Total
Preferred Stocks — 0.3% |
3,720,122 | |||||||
|
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Total
Long-Term Investments — 99.4% |
1,147,213,927 | |||||||
|
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Security | Shares | Value | ||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 3.18%(c)(d)(e) |
3,467,404 | $ | 3,468,445 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.81%(c)(d) |
800,000 | 800,000 | ||||||
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Total
Short-Term Securities — 0.4% |
4,268,445 | |||||||
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Total
Investments — 99.8% |
1,151,482,372 | |||||||
Other Assets Less Liabilities — 0.2% |
|
1,918,413 | ||||||
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Net Assets — 100.0% |
$ | 1,153,400,785 | ||||||
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(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 six months ended September 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
|
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Affiliated Issuer | Value at 03/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 09/30/22 |
Shares Held at 09/30/22 |
Income | Capital Gain Distributions from Underlying Funds |
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BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 404,159 | $ | 3,063,921 | (a) | $ | — | $ | 384 | $ | (19 | ) | $ | 3,468,445 | 3,467,404 | $ | 2,482 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
1,390,000 | — | (590,000 | )(a) | — | — | 800,000 | 800,000 | 9,610 | — | ||||||||||||||||||||||||||
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$ | 384 | $ | (19 | ) | $ | 4,268,445 | $ | 12,092 | $ | — | ||||||||||||||||||||||||||
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(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
|
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Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
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Long Contracts |
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E-Mini Consumer Staples Index |
69 | 12/16/22 | $ | 4,654 | $ | (393,044 | ) | |||||||||
Euro STOXX 50 Index |
2 | 12/16/22 | 64 | (937 | ) | |||||||||||
FTSE 100 Index |
16 | 12/16/22 | 1,223 | (81,618 | ) | |||||||||||
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$ | (475,599 | ) | ||||||||||||||
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S C H E D U L E O F I N V E S T M E N T S |
23 |
Schedule of Investments (unaudited) (continued) September 30, 2022 |
iShares® Global Consumer Staples ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
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Liabilities — Derivative Financial Instruments |
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Futures contracts |
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Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 475,599 | $ | — | $ | — | $ | — | $ | 475,599 | ||||||||||||||
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|
(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 September 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
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Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | 34,243 | $ | — | $ | — | $ | — | $ | 34,243 | ||||||||||||||
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Net Change in Unrealized Appreciation (Depreciation) on |
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Futures contracts |
$ | — | $ | — | $ | (701,074 | ) | $ | — | $ | — | $ | — | $ | (701,074 | ) | ||||||||||||
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|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 5,685,235 |
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.
|
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Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
Common Stocks |
$ | 691,925,910 | $ | 451,567,895 | $ | — | $ | 1,143,493,805 | ||||||||
Preferred Stocks |
— | 3,720,122 | — | 3,720,122 | ||||||||||||
Money Market Funds |
4,268,445 | — | — | 4,268,445 | ||||||||||||
|
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|
|
|
|
|
|
|||||||||
$ | 696,194,355 | $ | 455,288,017 | $ | — | $ | 1,151,482,372 | |||||||||
|
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|
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Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (393,044 | ) | $ | (82,555 | ) | $ | — | $ | (475,599 | ) | |||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
24 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) September 30, 2022 |
iShares® Global Energy ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 2.5% | ||||||||
Ampol Ltd. |
189,487 | $ | 3,504,910 | |||||
Santos Ltd. |
2,696,410 | 12,456,184 | ||||||
Woodside Energy Group Ltd. |
1,525,819 | 31,174,793 | ||||||
|
|
|||||||
47,135,887 | ||||||||
Austria — 0.2% | ||||||||
OMV AG |
117,098 | 4,238,145 | ||||||
|
|
|||||||
Brazil — 1.0% | ||||||||
Petroleo Brasileiro SA, ADR |
1,495,173 | 18,450,435 | ||||||
|
|
|||||||
Canada — 12.0% | ||||||||
Cameco Corp. |
319,553 | 8,480,698 | ||||||
Canadian Natural Resources Ltd. |
902,933 | 42,030,327 | ||||||
Cenovus Energy Inc. |
1,117,302 | 17,163,752 | ||||||
Enbridge Inc. |
1,627,101 | 60,332,366 | ||||||
Imperial Oil Ltd. |
157,338 | 6,812,456 | ||||||
Pembina Pipeline Corp. |
446,165 | 13,552,744 | ||||||
Suncor Energy Inc. |
1,109,052 | 31,231,855 | ||||||
TC Energy Corp. |
813,180 | 32,754,432 | ||||||
Tourmaline Oil Corp. |
253,741 | 13,187,148 | ||||||
|
|
|||||||
225,545,778 | ||||||||
Chile — 0.1% | ||||||||
Empresas COPEC SA |
293,617 | 1,880,949 | ||||||
|
|
|||||||
Colombia — 0.1% | ||||||||
Ecopetrol SA, ADR |
197,911 | 1,767,345 | ||||||
|
|
|||||||
Finland — 0.8% | ||||||||
Neste OYJ |
345,298 | 15,051,368 | ||||||
|
|
|||||||
France — 5.0% | ||||||||
TotalEnergies SE |
1,978,428 | 92,817,050 | ||||||
|
|
|||||||
Italy — 1.1% | ||||||||
Eni SpA |
2,028,197 | 21,557,086 | ||||||
|
|
|||||||
Japan — 0.9% | ||||||||
ENEOS Holdings Inc. |
2,594,220 | 8,366,753 | ||||||
Inpex Corp. |
847,800 | 7,907,499 | ||||||
|
|
|||||||
16,274,252 | ||||||||
Norway — 1.9% | ||||||||
Aker BP ASA |
250,159 | 7,180,699 | ||||||
Equinor ASA |
842,087 | 27,770,945 | ||||||
|
|
|||||||
34,951,644 | ||||||||
Portugal — 0.2% | ||||||||
Galp Energia SGPS SA |
362,121 | 3,484,107 | ||||||
|
|
|||||||
Spain — 0.8% | ||||||||
Repsol SA |
1,227,402 | 14,103,158 | ||||||
|
|
|||||||
United Kingdom — 12.4% | ||||||||
BP PLC |
16,763,857 | 80,104,180 | ||||||
Shell PLC |
6,147,494 | 152,506,601 | ||||||
|
|
|||||||
232,610,781 |
Security | Shares | Value | ||||||
United States — 59.4% | ||||||||
APA Corp. |
262,979 | $ | 8,991,252 | |||||
Baker Hughes Co. |
813,037 | 17,041,255 | ||||||
Chevron Corp. |
1,447,140 | 207,910,604 | ||||||
ConocoPhillips |
1,022,998 | 104,693,615 | ||||||
Coterra Energy Inc. |
639,333 | 16,699,378 | ||||||
Devon Energy Corp. |
526,192 | 31,639,925 | ||||||
Diamondback Energy Inc. |
142,840 | 17,206,506 | ||||||
EOG Resources Inc. |
470,941 | 52,618,238 | ||||||
EQT Corp. |
297,495 | 12,122,921 | ||||||
Exxon Mobil Corp. |
3,349,076 | 292,407,826 | ||||||
Halliburton Co. |
728,812 | 17,943,351 | ||||||
Hess Corp. |
223,924 | 24,405,477 | ||||||
Kinder Morgan Inc. |
1,593,233 | 26,511,397 | ||||||
Marathon Oil Corp. |
544,501 | 12,294,833 | ||||||
Marathon Petroleum Corp. |
400,690 | 39,800,538 | ||||||
Occidental Petroleum Corp. |
598,831 | 36,798,165 | ||||||
ONEOK Inc. |
359,094 | 18,399,977 | ||||||
Phillips 66 |
386,568 | 31,203,769 | ||||||
Pioneer Natural Resources Co. |
191,791 | 41,528,505 | ||||||
Schlumberger NV |
1,136,590 | 40,803,581 | ||||||
Valero Energy Corp. |
316,591 | 33,827,748 | ||||||
Williams Companies Inc. (The) |
979,200 | 28,034,496 | ||||||
|
|
|||||||
1,112,883,357 | ||||||||
|
|
|||||||
Total
Common Stocks — 98.4% |
1,842,751,342 | |||||||
|
|
|||||||
Preferred Stocks |
||||||||
Brazil — 1.1% | ||||||||
Petroleo Brasileiro SA, Preference Shares, ADR |
1,845,719 | 20,450,567 | ||||||
|
|
|||||||
Total
Preferred Stocks — 1.1% |
20,450,567 | |||||||
|
|
|||||||
Total
Long-Term Investments — 99.5% |
1,863,201,909 | |||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.4% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.81%(a)(b) |
7,860,000 | 7,860,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.4% |
7,860,000 | |||||||
|
|
|||||||
Total
Investments — 99.9% |
1,871,061,909 | |||||||
Other Assets Less Liabilities — 0.1% |
|
2,723,705 | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 1,873,785,614 | ||||||
|
|
(a) |
Affiliate of the Fund. |
(b) |
Annualized 7-day yield as of period end. |
S C H E D U L E O F I N V E S T M E N T S |
25 |
Schedule of Investments (unaudited) (continued) September 30, 2022 |
iShares® Global Energy ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
|
||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 09/30/22 |
Shares Held at 09/30/22 |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares(a) |
$ | — | $ | 423 | (b) | $ | — | $ | (423 | ) | $ | — | $ | — | — | $ | 2,470 | (c) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
3,430,000 | 4,430,000 | (b) | — | — | — | 7,860,000 | 7,860,000 | 20,920 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (423 | ) | $ | — | $ | 7,860,000 | $ | 23,390 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 |
||||||||||||||||
E-Mini Energy Select Sector Index |
115 | 12/16/22 | $ | 8,665 | $ | (719,136 | ) | |||||||||
FTSE 100 Index |
18 | 12/16/22 | 1,376 | (110,939 | ) | |||||||||||
|
|
|||||||||||||||
$ | (830,075 | ) | ||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 830,075 | $ | — | $ | — | $ | — | $ | 830,075 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (1,221,323 | ) | $ | — | $ | — | $ | — | $ | (1,221,323 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (895,461 | ) | $ | — | $ | — | $ | — | $ | (895,461 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 9,368,261 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
26 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2022 |
iShares® Global Energy 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 |
$ | 1,360,527,864 | $ | 482,223,478 | $ | — | $ | 1,842,751,342 | ||||||||
Preferred Stocks |
20,450,567 | — | — | 20,450,567 | ||||||||||||
Money Market Funds |
7,860,000 | — | — | 7,860,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 1,388,838,431 | $ | 482,223,478 | $ | — | $ | 1,871,061,909 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (719,136 | ) | $ | (110,939 | ) | $ | — | $ | (830,075 | ) | |||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
27 |
Schedule of Investments (unaudited) September 30, 2022 |
iShares® Global Financials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Australia — 5.1% | ||||||||
ASX Ltd. |
20,290 | $ | 933,811 | |||||
Australia & New Zealand Banking Group Ltd. |
313,308 | 4,586,452 | ||||||
Commonwealth Bank of Australia |
179,815 | 10,460,725 | ||||||
Insurance Australia Group Ltd. |
255,016 | 754,404 | ||||||
Macquarie Group Ltd. |
38,242 | 3,730,895 | ||||||
Medibank Pvt Ltd. |
293,218 | 655,389 | ||||||
National Australia Bank Ltd. |
339,167 | 6,279,909 | ||||||
QBE Insurance Group Ltd. |
159,688 | 1,184,828 | ||||||
Suncorp Group Ltd. |
134,740 | 869,471 | ||||||
Westpac Banking Corp. |
370,447 | 4,901,012 | ||||||
|
|
|||||||
34,356,896 | ||||||||
Austria — 0.1% | ||||||||
Erste Group Bank AG |
35,585 | 780,100 | ||||||
|
|
|||||||
Belgium — 0.5% | ||||||||
Ageas SA/NV |
19,138 | 697,996 | ||||||
Groupe Bruxelles Lambert NV |
10,059 | 703,477 | ||||||
KBC Group NV |
35,395 | 1,679,634 | ||||||
|
|
|||||||
3,081,107 | ||||||||
Brazil — 0.4% | ||||||||
B3 SA - Brasil, Bolsa, Balcao |
640,061 | 1,548,434 | ||||||
Banco do Brasil SA |
148,008 | 1,056,896 | ||||||
|
|
|||||||
2,605,330 | ||||||||
Canada — 8.9% | ||||||||
Bank of Montreal |
71,524 | 6,268,803 | ||||||
Bank of Nova Scotia (The) |
126,251 | 6,004,771 | ||||||
Brookfield Asset Management Inc., Class A |
151,064 | 6,179,916 | ||||||
Canadian Imperial Bank of Commerce |
95,362 | 4,173,878 | ||||||
Intact Financial Corp. |
18,442 | 2,609,930 | ||||||
Manulife Financial Corp. |
204,145 | 3,204,013 | ||||||
National Bank of Canada |
36,147 | 2,265,615 | ||||||
Power Corp. of Canada |
59,422 | 1,339,130 | ||||||
Royal Bank of Canada |
147,555 | 13,285,131 | ||||||
Sun Life Financial Inc. |
62,441 | 2,482,994 | ||||||
Toronto-Dominion Bank (The) |
192,161 | 11,785,485 | ||||||
|
|
|||||||
59,599,666 | ||||||||
Chile — 0.1% | ||||||||
Banco de Chile |
4,500,611 | 395,985 | ||||||
Banco Santander Chile, ADR |
15,512 | 217,323 | ||||||
|
|
|||||||
613,308 | ||||||||
China — 2.6% | ||||||||
Bank of China Ltd., Class H |
8,445,000 | 2,758,096 | ||||||
China Construction Bank Corp., Class H |
10,430,720 | 6,020,626 | ||||||
China Merchants Bank Co. Ltd., Class H |
350,000 | 1,619,750 | ||||||
Industrial & Commercial Bank of China Ltd., Class H |
7,531,000 | 3,532,837 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H |
634,500 | 3,165,390 | ||||||
|
|
|||||||
17,096,699 | ||||||||
Colombia — 0.0% | ||||||||
Bancolombia SA, ADR |
11,820 | 288,053 | ||||||
|
|
|||||||
Denmark — 0.3% | ||||||||
Danske Bank A/S |
71,443 | 889,227 | ||||||
Tryg A/S |
38,237 | 789,360 | ||||||
|
|
|||||||
1,678,587 | ||||||||
Finland — 0.8% | ||||||||
Nordea Bank Abp |
348,571 | 2,983,150 |
Security | Shares | Value | ||||||
Finland (continued) | ||||||||
Sampo OYJ, Class A |
53,530 | $ | 2,285,281 | |||||
|
|
|||||||
5,268,431 | ||||||||
France — 1.9% | ||||||||
AXA SA |
207,670 | 4,534,039 | ||||||
BNP Paribas SA |
120,517 | 5,090,545 | ||||||
Credit Agricole SA |
148,742 | 1,207,492 | ||||||
Societe Generale SA |
85,697 | 1,694,752 | ||||||
|
|
|||||||
12,526,828 | ||||||||
Germany — 2.5% | ||||||||
Allianz SE, Registered |
43,206 | 6,806,425 | ||||||
Commerzbank AG(a) |
116,607 | 830,126 | ||||||
Deutsche Bank AG, Registered |
220,398 | 1,631,821 | ||||||
Deutsche Boerse AG |
19,908 | 3,263,452 | ||||||
Hannover Rueck SE |
6,599 | 989,225 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered |
14,586 | 3,511,151 | ||||||
|
|
|||||||
17,032,200 | ||||||||
Hong Kong — 2.2% | ||||||||
AIA Group Ltd. |
1,270,800 | 10,580,558 | ||||||
Hong Kong Exchanges & Clearing Ltd. |
128,400 | 4,389,021 | ||||||
|
|
|||||||
14,969,579 | ||||||||
Italy — 1.3% | ||||||||
Assicurazioni Generali SpA |
128,184 | 1,750,267 | ||||||
FinecoBank Banca Fineco SpA |
64,746 | 799,645 | ||||||
Intesa Sanpaolo SpA |
1,874,055 | 3,097,841 | ||||||
Mediobanca Banca di Credito Finanziario SpA |
78,045 | 610,680 | ||||||
UniCredit SpA |
213,959 | 2,166,139 | ||||||
|
|
|||||||
8,424,572 | ||||||||
Japan — 4.5% | ||||||||
Dai-ichi Life Holdings Inc. |
109,800 | 1,745,855 | ||||||
Daiwa Securities Group Inc. |
148,500 | 582,847 | ||||||
Japan Exchange Group Inc. |
59,700 | 806,849 | ||||||
Japan Post Holdings Co. Ltd. |
255,600 | 1,693,403 | ||||||
Mitsubishi UFJ Financial Group Inc. |
1,323,000 | 5,993,354 | ||||||
Mizuho Financial Group Inc. |
271,310 | 2,936,830 | ||||||
MS&AD Insurance Group Holdings Inc. |
49,900 | 1,321,487 | ||||||
Nomura Holdings Inc. |
324,200 | 1,074,034 | ||||||
ORIX Corp. |
127,400 | 1,784,754 | ||||||
Resona Holdings Inc. |
247,100 | 904,253 | ||||||
Sompo Holdings Inc. |
38,000 | 1,520,430 | ||||||
Sumitomo Mitsui Financial Group Inc. |
145,500 | 4,033,475 | ||||||
Sumitomo Mitsui Trust Holdings Inc. |
41,927 | 1,192,391 | ||||||
T&D Holdings Inc. |
58,300 | 554,144 | ||||||
Tokio Marine Holdings Inc. |
215,400 | 3,828,332 | ||||||
|
|
|||||||
29,972,438 | ||||||||
Malta — 0.0% | ||||||||
BGP Holdings PLC, NVS(b) |
608,993 | 6 | ||||||
|
|
|||||||
Mexico — 0.2% | ||||||||
Grupo Financiero Banorte SAB de CV, Class O |
258,737 | 1,661,405 | ||||||
|
|
|||||||
Netherlands — 1.1% | ||||||||
ABN AMRO Bank NV, CVA(c) |
44,503 | 398,763 | ||||||
Aegon NV |
147,070 | 584,603 | ||||||
Euronext NV(c) |
10,792 | 682,984 | ||||||
EXOR NV(a) |
12,861 | 825,338 | ||||||
ING Groep NV |
407,809 | 3,494,282 | ||||||
NN Group NV |
31,733 | 1,234,221 | ||||||
|
|
|||||||
7,220,191 |
28 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2022 |
iShares® Global Financials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Norway — 0.2% | ||||||||
DNB Bank ASA |
94,164 | $ | 1,494,199 | |||||
|
|
|||||||
Peru — 0.1% | ||||||||
Credicorp Ltd. |
6,759 | 830,005 | ||||||
|
|
|||||||
Singapore — 1.6% | ||||||||
DBS Group Holdings Ltd.(d) |
194,300 | 4,494,811 | ||||||
Oversea-Chinese Banking Corp. Ltd. |
428,800 | 3,513,536 | ||||||
United Overseas Bank Ltd. |
162,000 | 2,934,237 | ||||||
|
|
|||||||
10,942,584 | ||||||||
South Korea — 0.4% | ||||||||
KB Financial Group Inc., ADR |
41,000 | 1,235,740 | ||||||
Shinhan Financial Group Co. Ltd. |
100 | 2,323 | ||||||
Shinhan Financial Group Co. Ltd., ADR |
54,000 | 1,242,000 | ||||||
|
|
|||||||
2,480,063 | ||||||||
Spain — 1.3% | ||||||||
Banco Bilbao Vizcaya Argentaria SA |
711,090 | 3,189,839 | ||||||
Banco Santander SA |
1,811,310 | 4,214,735 | ||||||
CaixaBank SA |
455,863 | 1,468,278 | ||||||
|
|
|||||||
8,872,852 | ||||||||
Sweden — 1.3% | ||||||||
EQT AB |
29,649 | 572,882 | ||||||
Industrivarden AB, Class A |
20,498 | 412,883 | ||||||
Industrivarden AB, Class C |
17,915 | 357,301 | ||||||
Investor AB, Class B |
191,464 | 2,793,692 | ||||||
Kinnevik AB, Class B(a) |
25,516 | 334,410 | ||||||
Skandinaviska Enskilda Banken AB, Class A |
180,089 | 1,716,384 | ||||||
Svenska Handelsbanken AB, Class A |
160,983 | 1,321,508 | ||||||
Swedbank AB, Class A |
97,856 | 1,284,434 | ||||||
|
|
|||||||
8,793,494 | ||||||||
Switzerland — 3.0% | ||||||||
Baloise Holding AG, Registered |
5,042 | 644,240 | ||||||
Credit Suisse Group AG, Registered |
266,957 | 1,055,970 | ||||||
Julius Baer Group Ltd. |
23,134 | 1,009,546 | ||||||
Partners Group Holding AG |
2,432 | 1,957,235 | ||||||
Swiss Life Holding AG, Registered |
3,336 | 1,473,882 | ||||||
Swiss Re AG |
29,994 | 2,212,177 | ||||||
UBS Group AG, Registered |
372,920 | 5,410,310 | ||||||
Zurich Insurance Group AG |
15,719 | 6,266,388 | ||||||
|
|
|||||||
20,029,748 | ||||||||
Taiwan — 0.6% | ||||||||
Cathay Financial Holding Co. Ltd. |
903,000 | 1,131,760 | ||||||
CTBC Financial Holding Co. Ltd. |
2,022,000 | 1,257,891 | ||||||
Fubon Financial Holding Co. Ltd. |
855,000 | 1,337,063 | ||||||
|
|
|||||||
3,726,714 | ||||||||
United Kingdom — 5.1% | ||||||||
3i Group PLC |
105,726 | 1,269,498 | ||||||
abrdn PLC |
249,087 | 381,031 | ||||||
Admiral Group PLC |
28,994 | 615,938 | ||||||
Aviva PLC |
301,120 | 1,291,455 | ||||||
Barclays PLC |
1,651,016 | 2,626,989 | ||||||
Direct Line Insurance Group PLC |
138,431 | 285,605 | ||||||
Hargreaves Lansdown PLC |
38,306 | 366,858 | ||||||
HSBC Holdings PLC |
2,112,685 | 10,939,184 | ||||||
Intermediate Capital Group PLC |
31,208 | 336,657 | ||||||
Legal & General Group PLC |
626,839 | 1,496,252 | ||||||
Lloyds Banking Group PLC |
7,571,043 | 3,422,015 | ||||||
London Stock Exchange Group PLC |
36,422 | 3,075,797 | ||||||
M&G PLC |
277,130 | 510,507 |
Security | Shares | Value | ||||||
United Kingdom (continued) | ||||||||
NatWest Group PLC, NVS |
539,074 | $ | 1,342,682 | |||||
Phoenix Group Holdings PLC |
90,156 | 525,055 | ||||||
Prudential PLC |
286,893 | 2,808,003 | ||||||
Schroders PLC |
78,482 | 337,340 | ||||||
St. James’s Place PLC |
57,341 | 653,010 | ||||||
Standard Chartered PLC |
258,533 | 1,617,008 | ||||||
|
|
|||||||
33,900,884 | ||||||||
United States — 52.5% | ||||||||
Aflac Inc. |
60,672 | 3,409,766 | ||||||
Allstate Corp. (The) |
28,977 | 3,608,506 | ||||||
American Express Co. |
63,461 | 8,561,523 | ||||||
American International Group Inc. |
80,455 | 3,820,003 | ||||||
Ameriprise Financial Inc. |
11,507 | 2,899,189 | ||||||
Aon PLC, Class A |
22,512 | 6,030,289 | ||||||
Arthur J Gallagher & Co. |
22,380 | 3,831,904 | ||||||
Assurant Inc. |
5,571 | 809,299 | ||||||
Bank of America Corp. |
739,638 | 22,337,068 | ||||||
Bank of New York Mellon Corp. (The) |
77,292 | 2,977,288 | ||||||
Berkshire Hathaway Inc., Class B(a) |
191,125 | 51,034,197 | ||||||
BlackRock Inc.(e) |
15,952 | 8,778,067 | ||||||
Brown & Brown Inc. |
24,800 | 1,499,904 | ||||||
Capital One Financial Corp. |
40,610 | 3,743,024 | ||||||
Cboe Global Markets Inc. |
11,175 | 1,311,610 | ||||||
Charles Schwab Corp. (The) |
161,556 | 11,611,030 | ||||||
Chubb Ltd. |
44,419 | 8,078,928 | ||||||
Cincinnati Financial Corp. |
16,903 | 1,514,002 | ||||||
Citigroup Inc. |
205,176 | 8,549,684 | ||||||
Citizens Financial Group Inc. |
51,434 | 1,767,272 | ||||||
CME Group Inc. |
38,036 | 6,737,317 | ||||||
Comerica Inc. |
13,906 | 988,717 | ||||||
Discover Financial Services |
29,361 | 2,669,502 | ||||||
Everest Re Group Ltd. |
4,165 | 1,093,063 | ||||||
FactSet Research Systems Inc. |
3,979 | 1,592,038 | ||||||
Fifth Third Bancorp. |
71,945 | 2,299,362 | ||||||
First Republic Bank/CA |
19,037 | 2,485,280 | ||||||
Franklin Resources Inc. |
29,652 | 638,111 | ||||||
Globe Life Inc. |
9,538 | 950,939 | ||||||
Goldman Sachs Group Inc. (The) |
36,048 | 10,563,866 | ||||||
Hartford Financial Services Group Inc. (The) |
34,385 | 2,129,807 | ||||||
Huntington Bancshares Inc./OH |
153,527 | 2,023,486 | ||||||
Intercontinental Exchange Inc. |
58,498 | 5,285,294 | ||||||
Invesco Ltd. |
48,132 | 659,408 | ||||||
JPMorgan Chase & Co. |
309,997 | 32,394,686 | ||||||
KeyCorp |
98,325 | 1,575,166 | ||||||
Lincoln National Corp. |
16,954 | 744,450 | ||||||
Loews Corp. |
21,284 | 1,060,795 | ||||||
M&T Bank Corp. |
19,014 | 3,352,548 | ||||||
MarketAxess Holdings Inc. |
3,999 | 889,737 | ||||||
Marsh & McLennan Companies Inc. |
53,202 | 7,942,527 | ||||||
MetLife Inc. |
70,706 | 4,297,511 | ||||||
Moody’s Corp. |
16,828 | 4,091,055 | ||||||
Morgan Stanley |
141,686 | 11,194,611 | ||||||
MSCI Inc. |
8,616 | 3,634,143 | ||||||
Nasdaq Inc. |
36,247 | 2,054,480 | ||||||
Northern Trust Corp. |
21,720 | 1,858,363 | ||||||
PNC Financial Services Group Inc. (The) |
43,793 | 6,543,550 | ||||||
Principal Financial Group Inc. |
24,820 | 1,790,763 | ||||||
Progressive Corp. (The) |
61,847 | 7,187,240 | ||||||
Prudential Financial Inc. |
39,125 | 3,356,142 | ||||||
Raymond James Financial Inc. |
20,320 | 2,008,022 |
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 (unaudited) (continued) September 30, 2022 |
iShares® Global Financials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
Regions Financial Corp. |
97,288 | $ | 1,952,570 | |||||
S&P Global Inc. |
36,048 | 11,007,257 | ||||||
Signature Bank/New York NY |
6,799 | 1,026,649 | ||||||
State Street Corp. |
38,611 | 2,347,935 | ||||||
SVB Financial Group(a) |
6,277 | 2,107,691 | ||||||
Synchrony Financial |
52,352 | 1,475,803 | ||||||
T Rowe Price Group Inc. |
23,898 | 2,509,529 | ||||||
Travelers Companies Inc. (The) |
25,538 | 3,912,422 | ||||||
Truist Financial Corp. |
139,454 | 6,071,827 | ||||||
U.S. Bancorp. |
143,699 | 5,793,944 | ||||||
W R Berkley Corp. |
22,095 | 1,426,895 | ||||||
Wells Fargo & Co. |
402,504 | 16,188,711 | ||||||
Willis Towers Watson PLC |
11,684 | 2,347,783 | ||||||
Zions Bancorp. NA |
15,489 | 787,770 | ||||||
|
|
|||||||
351,221,318 | ||||||||
|
|
|||||||
Total
Common Stocks — 98.6% |
|
659,467,257 | ||||||
|
|
|||||||
Preferred Stocks |
| |||||||
Brazil — 0.8% | ||||||||
Banco Bradesco SA, Preference Shares, ADR |
574,490 | 2,114,123 | ||||||
Itau Unibanco Holding SA, Preference Shares, ADR(d) |
515,801 | 2,666,691 | ||||||
Itausa SA, Preference Shares, NVS |
496,709 | 895,934 | ||||||
|
|
|||||||
5,676,748 | ||||||||
|
|
|||||||
Total
Preferred Stocks — 0.8% |
|
5,676,748 | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.4% |
|
665,144,005 | ||||||
|
|
Security | Shares | Value | ||||||
Short-Term Securities |
| |||||||
Money Market Funds — 0.3% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 3.18%(e)(f)(g) |
252,059 | $ | 252,135 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.81%(e)(f) |
1,440,000 | 1,440,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.3% |
|
1,692,135 | ||||||
|
|
|||||||
Total
Investments — 99.7% |
|
666,836,140 | ||||||
Other Assets Less Liabilities — 0.3% |
|
2,250,498 | ||||||
|
|
|||||||
Net Assets — 100.0% |
|
$ | 669,086,638 | |||||
|
|
(a) |
Non-income producing security. |
(b) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(c) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) |
All or a portion of this security is on loan. |
(e) |
Affiliate of the Fund. |
(f) |
Annualized 7-day yield as of period end. |
(g) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/22 |
Shares Held at 09/30/22 |
Income |
Capital Gain |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 20,641 | $ | 229,935 | (a) | $ | — | $ | 1,551 | $ | 8 | $ | 252,135 | 252,059 | $ | 4,183 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
2,000,000 | — | (560,000 | )(a) | — | — | 1,440,000 | 1,440,000 | 9,091 | — | ||||||||||||||||||||||||||
BlackRock Inc. |
15,373,572 | 662,472 | (3,358,898 | ) | (1,192,472 | ) | (2,706,607 | ) | 8,778,067 | 15,952 | 159,298 | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$
|
(1,190,921
|
)
|
$
|
(2,706,599
|
)
|
$
|
10,470,202
|
|
$
|
172,572
|
|
$
|
—
|
| ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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. |
30 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2022 |
iShares® Global Financials ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description |
Number of
|
Expiration
|
Notional
|
Value/
|
||||||||||||
Long Contracts |
||||||||||||||||
E-Mini Financial Select Sector Index |
29 | 12/16/22 | $ | 2,716 | $ | (354,593 | ) | |||||||||
Euro STOXX 50 Index |
14 | 12/16/22 | 450 | (42,782 | ) | |||||||||||
FTSE 100 Index |
8 | 12/16/22 | 611 | (55,515 | ) | |||||||||||
|
|
|||||||||||||||
$
|
(452,890
|
)
| ||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity
|
Credit
|
Equity
|
Foreign
|
Interest
|
Other
|
Total
|
||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$
|
—
|
|
$
|
—
|
|
$
|
452,890
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
452,890
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity
|
Credit Contracts
|
Equity Contracts
|
Foreign
|
Interest Rate Contracts
|
Other
|
Total
|
||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$
|
—
|
|
$
|
—
|
|
$
|
(630,336
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(630,336
|
)
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$
|
—
|
|
$
|
—
|
|
$
|
(377,665
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(377,665
|
)
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts |
||||
Average notional value of contracts — long |
$ | 4,229,076 |
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.
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 (unaudited) (continued) September 30, 2022 |
iShares® Global Financials ETF |
Fair Value Hierarchy as of Period End (continued)
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 |
$ | 419,296,825 | $ | 240,170,426 | $ | 6 | $ | 659,467,257 | ||||||||
Preferred Stocks |
5,676,748 | — | — | 5,676,748 | ||||||||||||
Money Market Funds |
1,692,135 | — | — | 1,692,135 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 426,665,708 | $ | 240,170,426 | $ | 6 | $ | 666,836,140 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (354,593 | ) | $ | (98,297 | ) | $ | — | $ | (452,890 | ) | |||||
|
|
|
|
|
|
|
|
(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 S E M I - 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 (unaudited) September 30, 2022 |
iShares® Global Healthcare ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 1.8% | ||||||||
Cochlear Ltd. |
35,748 | $ | 4,440,527 | |||||
CSL Ltd. |
264,605 | 48,122,944 | ||||||
Ramsay Health Care Ltd. |
100,957 | 3,705,881 | ||||||
Sonic Healthcare Ltd. |
264,165 | 5,152,591 | ||||||
|
|
|||||||
61,421,943 | ||||||||
Belgium — 0.1% | ||||||||
UCB SA |
68,740 | 4,770,406 | ||||||
|
|
|||||||
Brazil — 0.1% | ||||||||
Rede D’Or Sao Luiz SA(a) |
396,760 | 2,185,937 | ||||||
|
|
|||||||
China — 0.3% | ||||||||
Wuxi Biologics Cayman Inc., New(a)(b) |
1,960,000 | 11,667,570 | ||||||
|
|
|||||||
Denmark — 3.2% | ||||||||
Coloplast A/S, Class B |
64,838 | 6,589,118 | ||||||
Genmab A/S(b) |
36,041 | 11,594,514 | ||||||
GN Store Nord AS |
78,143 | 1,368,787 | ||||||
Novo Nordisk A/S, Class B |
899,517 | 89,607,901 | ||||||
|
|
|||||||
109,160,320 | ||||||||
France — 2.3% | ||||||||
EssilorLuxottica SA |
167,493 | 22,766,120 | ||||||
Eurofins Scientific SE |
69,976 | 4,154,077 | ||||||
Sanofi |
633,569 | 48,244,048 | ||||||
Sartorius Stedim Biotech |
13,284 | 4,074,689 | ||||||
|
|
|||||||
79,238,934 | ||||||||
Germany — 1.5% | ||||||||
Bayer AG, Registered |
538,575 | 24,814,577 | ||||||
Fresenius Medical Care AG & Co. KGaA |
111,477 | 3,140,642 | ||||||
Fresenius SE & Co. KGaA |
222,733 | 4,747,598 | ||||||
Merck KGaA |
71,188 | 11,523,970 | ||||||
Siemens Healthineers AG(a) |
154,018 | 6,606,675 | ||||||
|
|
|||||||
50,833,462 | ||||||||
Ireland — 0.3% | ||||||||
STERIS PLC |
54,756 | 9,104,828 | ||||||
|
|
|||||||
Japan — 4.7% | ||||||||
Astellas Pharma Inc. |
1,005,875 | 13,325,115 | ||||||
Chugai Pharmaceutical Co. Ltd. |
346,600 | 8,659,133 | ||||||
Daiichi Sankyo Co. Ltd. |
1,065,600 | 29,784,426 | ||||||
Eisai Co. Ltd. |
159,400 | 8,553,258 | ||||||
Hoya Corp. |
200,900 | 19,358,431 | ||||||
M3 Inc. |
231,800 | 6,472,263 | ||||||
Olympus Corp. |
703,000 | 13,524,123 | ||||||
Ono Pharmaceutical Co. Ltd. |
258,700 | 6,042,904 | ||||||
Otsuka Holdings Co. Ltd. |
307,000 | 9,721,119 | ||||||
Shionogi & Co. Ltd. |
153,200 | 7,398,659 | ||||||
Sysmex Corp. |
93,300 | 4,985,597 | ||||||
Takeda Pharmaceutical Co. Ltd. |
869,792 | 22,586,569 | ||||||
Terumo Corp. |
414,900 | 11,662,924 | ||||||
|
|
|||||||
162,074,521 | ||||||||
Netherlands — 0.7% | ||||||||
Argenx SE(b) |
30,185 | 10,742,130 | ||||||
Koninklijke Philips NV |
488,363 | 7,519,077 | ||||||
QIAGEN NV(b) |
125,729 | 5,235,922 | ||||||
|
|
|||||||
23,497,129 | ||||||||
South Korea — 0.2% | ||||||||
Celltrion Inc. |
57,040 | 6,922,736 | ||||||
|
|
Security | Shares | Value | ||||||
Spain — 0.0% | ||||||||
Grifols SA(b)(c) |
169,206 | $ | 1,461,829 | |||||
|
|
|||||||
Sweden — 0.1% | ||||||||
Getinge AB, Class B |
116,719 | 1,996,025 | ||||||
|
|
|||||||
Switzerland — 8.1% | ||||||||
Alcon Inc. |
273,925 | 15,911,053 | ||||||
Lonza Group AG, Registered |
40,807 | 19,868,558 | ||||||
Novartis AG, Registered |
1,320,009 | 100,633,422 | ||||||
Roche Holding AG, Bearer |
14,732 | 5,754,770 | ||||||
Roche Holding AG, NVS |
385,813 | 125,594,700 | ||||||
Sonova Holding AG, Registered |
29,341 | 6,456,806 | ||||||
Straumann Holding AG |
64,215 | 5,873,113 | ||||||
|
|
|||||||
280,092,422 | ||||||||
United Kingdom — 3.8% | ||||||||
AstraZeneca PLC |
850,882 | 93,536,966 | ||||||
GSK PLC |
2,196,884 | 31,728,931 | ||||||
Smith & Nephew PLC |
486,738 | 5,618,309 | ||||||
|
|
|||||||
130,884,206 | ||||||||
United States — 72.3% | ||||||||
Abbott Laboratories |
961,686 | 93,052,737 | ||||||
AbbVie Inc. |
970,950 | 130,311,199 | ||||||
Abiomed Inc.(b) |
24,866 | 6,108,582 | ||||||
Agilent Technologies Inc. |
164,550 | 20,001,053 | ||||||
Align Technology Inc.(b) |
39,807 | 8,244,428 | ||||||
AmerisourceBergen Corp. |
85,210 | 11,531,469 | ||||||
Amgen Inc. |
293,749 | 66,211,025 | ||||||
Baxter International Inc. |
276,083 | 14,869,830 | ||||||
Becton Dickinson and Co. |
156,741 | 34,926,597 | ||||||
Biogen Inc.(b) |
79,552 | 21,240,384 | ||||||
Bio-Rad Laboratories Inc., Class A(b) |
11,705 | 4,882,624 | ||||||
Bio-Techne Corp. |
21,589 | 6,131,276 | ||||||
Boston Scientific Corp.(b) |
787,300 | 30,492,129 | ||||||
Bristol-Myers Squibb Co. |
1,172,560 | 83,357,290 | ||||||
Cardinal Health Inc. |
149,338 | 9,957,858 | ||||||
Catalent Inc.(b)(c) |
99,054 | 7,167,547 | ||||||
Centene Corp.(b) |
313,328 | 24,380,052 | ||||||
Charles River Laboratories International Inc.(b) |
28,164 | 5,542,675 | ||||||
Cigna Corp. |
167,270 | 46,412,407 | ||||||
Cooper Companies Inc. (The) |
26,958 | 7,114,216 | ||||||
CVS Health Corp. |
720,925 | 68,754,617 | ||||||
Danaher Corp. |
359,522 | 92,860,937 | ||||||
DaVita Inc.(b) |
30,521 | 2,526,223 | ||||||
DENTSPLY SIRONA Inc. |
119,154 | 3,378,016 | ||||||
Dexcom Inc.(b) |
215,208 | 17,332,852 | ||||||
Edwards Lifesciences Corp.(b) |
340,969 | 28,174,268 | ||||||
Elevance Health Inc. |
131,792 | 59,865,198 | ||||||
Eli Lilly & Co. |
433,065 | 140,031,568 | ||||||
Gilead Sciences Inc. |
688,678 | 42,484,546 | ||||||
HCA Healthcare Inc. |
118,011 | 21,689,242 | ||||||
Henry Schein Inc.(b) |
74,603 | 4,906,639 | ||||||
Hologic Inc.(b) |
137,070 | 8,843,756 | ||||||
Humana Inc. |
69,584 | 33,761,461 | ||||||
IDEXX Laboratories Inc.(b) |
45,616 | 14,861,693 | ||||||
Illumina Inc.(b) |
86,119 | 16,430,644 | ||||||
Incyte Corp.(b) |
101,191 | 6,743,368 | ||||||
Intuitive Surgical Inc.(b) |
196,254 | 36,785,850 | ||||||
IQVIA Holdings Inc.(b) |
102,740 | 18,610,324 | ||||||
Johnson & Johnson |
1,443,808 | 235,860,475 | ||||||
Laboratory Corp. of America Holdings |
49,553 | 10,148,950 |
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 (unaudited) (continued) September 30, 2022 |
iShares® Global Healthcare ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
McKesson Corp. |
79,079 | $ | 26,876,580 | |||||
Medtronic PLC |
729,658 | 58,919,884 | ||||||
Merck & Co. Inc. |
1,391,162 | 119,806,871 | ||||||
Mettler-Toledo International Inc.(b) |
12,325 | 13,361,779 | ||||||
Moderna Inc.(b) |
184,417 | 21,807,310 | ||||||
Molina Healthcare Inc.(b) |
31,829 | 10,498,477 | ||||||
Organon & Co. |
140,703 | 3,292,450 | ||||||
PerkinElmer Inc. |
69,677 | 8,384,233 | ||||||
Pfizer Inc. |
3,082,050 | 134,870,508 | ||||||
Quest Diagnostics Inc. |
63,900 | 7,839,891 | ||||||
Regeneron Pharmaceuticals Inc.(b) |
58,756 | 40,475,246 | ||||||
ResMed Inc. |
80,250 | 17,518,575 | ||||||
Stryker Corp. |
185,042 | 37,478,407 | ||||||
Teleflex Inc. |
25,978 | 5,233,528 | ||||||
Thermo Fisher Scientific Inc. |
215,142 | 109,117,871 | ||||||
UnitedHealth Group Inc. |
513,670 | 259,423,897 | ||||||
Universal Health Services Inc., Class B |
35,842 | 3,160,548 | ||||||
Vertex Pharmaceuticals Inc.(b) |
140,890 | 40,793,291 | ||||||
Viatris Inc. |
670,661 | 5,714,032 | ||||||
Waters Corp.(b) |
32,800 | 8,840,584 | ||||||
West Pharmaceutical Services Inc.(c) |
40,583 | 9,986,665 | ||||||
Zimmer Biomet Holdings Inc. |
114,959 | 12,018,963 | ||||||
Zoetis Inc. |
257,285 | 38,152,793 | ||||||
|
|
|||||||
2,489,558,388 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.5% |
|
3,424,870,656 | ||||||
|
|
|||||||
Preferred Stocks |
| |||||||
Germany — 0.1% | ||||||||
Sartorius AG, Preference Shares, NVS |
14,774 | 5,110,390 | ||||||
|
|
|||||||
Total
Preferred Stocks — 0.1% |
|
5,110,390 | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.6% |
|
3,429,981,046 | ||||||
|
|
Security | Shares | Value | ||||||
Short-Term Securities |
| |||||||
Money Market Funds — 0.2% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 3.18%(d)(e)(f) |
3,552,753 | $ | 3,553,819 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.81%(d)(e) |
4,490,000 | 4,490,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.2% |
|
8,043,819 | ||||||
|
|
|||||||
Total
Investments — 99.8% |
|
3,438,024,865 | ||||||
Other Assets Less Liabilities — 0.2% |
|
5,287,783 | ||||||
|
|
|||||||
Net Assets — 100.0% |
|
$ | 3,443,312,648 | |||||
|
|
(a) |
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. |
(b) |
Non-income producing security. |
(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. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/22 |
Shares Held at 09/30/22 |
Income |
Capital Gain |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 6,065,148 | $ | — | $ | (2,514,342 | )(a) | $ | 4,224 | $ | (1,211 | ) | $ | 3,553,819 | 3,552,753 | $ | 8,995 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
4,860,000 | — | (370,000 | )(a) | — | — | 4,490,000 | 4,490,000 | 32,500 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 4,224 | $ | (1,211 | ) | $ | 8,043,819 | $ | 41,495 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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. |
34 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2022 |
iShares® Global Healthcare ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description
|
Number of
|
Expiration
|
Notional
|
Value/
|
||||||||||||
Long Contracts |
||||||||||||||||
E-Mini Health Care Sector Dec Index |
96 | 12/16/22 | $ | 11,793 | $ | (646,325 | ) | |||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity
|
Credit
|
Equity
|
Foreign
|
Interest
|
Other
|
Total
|
||||||||||||||||||||||
Liabilities — Derivative Financial Instruments | ||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 646,325 | $ | — | $ | — | $ | — | $ | 646,325 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
Commodity
|
Credit
|
Equity
|
Foreign
|
Interest
|
Other
|
Total
|
||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (1,562,141 | ) | $ | — | $ | — | $ | — | $ | (1,562,141 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on | ||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (1,161,865 | ) | $ | — | $ | — | $ | — | $ | (1,161,865 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts |
||||
Average notional value of contracts — long |
$ | 12,642,280 |
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 |
$ | 2,500,849,153 | $ | 924,021,503 | $ | — | $ | 3,424,870,656 | ||||||||
Preferred Stocks |
— | 5,110,390 | — | 5,110,390 | ||||||||||||
Money Market Funds |
8,043,819 | — | — | 8,043,819 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 2,508,892,972 | $ | 929,131,893 | $ | — | $ | 3,438,024,865 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (646,325 | ) | $ | — | $ | — | $ | (646,325 | ) | ||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
35 |
Schedule of Investments (unaudited) September 30, 2022 |
iShares® Global Industrials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 0.9% | ||||||||
Brambles Ltd. |
82,842 | $ | 606,025 | |||||
Qantas Airways Ltd.(a) |
109,497 | 351,389 | ||||||
Transurban Group |
179,037 | 1,413,930 | ||||||
|
|
|||||||
2,371,344 | ||||||||
Brazil — 0.5% | ||||||||
CCR SA |
64,582 | 150,011 | ||||||
Localiza Rent a Car SA |
44,290 | 501,576 | ||||||
WEG SA |
87,901 | 523,722 | ||||||
|
|
|||||||
1,175,309 | ||||||||
Canada — 4.3% | ||||||||
CAE Inc.(a)(b) |
18,423 | 282,610 | ||||||
Canadian National Railway Co. |
36,068 | 3,895,192 | ||||||
Canadian Pacific Railway Ltd. |
54,276 | 3,623,115 | ||||||
SNC-Lavalin Group Inc. |
10,428 | 173,630 | ||||||
Thomson Reuters Corp. |
9,456 | 970,689 | ||||||
Waste Connections Inc. |
15,044 | 2,032,767 | ||||||
|
|
|||||||
10,978,003 | ||||||||
Denmark — 1.3% | ||||||||
AP Moller - Maersk A/S, Class A |
176 | 310,950 | ||||||
AP Moller - Maersk A/S, Class B, NVS |
331 | 601,503 | ||||||
DSV A/S |
11,323 | 1,326,460 | ||||||
Vestas Wind Systems A/S |
58,909 | 1,084,683 | ||||||
|
|
|||||||
3,323,596 | ||||||||
Finland — 0.5% | ||||||||
Kone OYJ, Class B |
23,829 | 918,096 | ||||||
Metso Outotec OYJ |
40,218 | 266,709 | ||||||
Wartsila OYJ Abp |
27,620 | 176,434 | ||||||
|
|
|||||||
1,361,239 | ||||||||
France — 6.5% | ||||||||
Airbus SE |
35,941 | 3,098,127 | ||||||
Alstom SA |
17,946 | 290,290 | ||||||
Bouygues SA |
12,304 | 321,854 | ||||||
Bureau Veritas SA |
17,440 | 390,264 | ||||||
Cie. de Saint-Gobain |
30,241 | 1,081,285 | ||||||
Eiffage SA |
4,616 | 370,171 | ||||||
Getlink SE |
23,507 | 364,531 | ||||||
Legrand SA |
15,800 | 1,021,613 | ||||||
Safran SA |
20,458 | 1,861,468 | ||||||
Schneider Electric SE |
33,436 | 3,776,622 | ||||||
Teleperformance |
3,426 | 869,121 | ||||||
Thales SA |
6,258 | 689,594 | ||||||
Vinci SA |
31,487 | 2,546,061 | ||||||
|
|
|||||||
16,681,001 | ||||||||
Germany — 3.1% | ||||||||
Brenntag SE |
9,063 | 547,876 | ||||||
Daimler Truck Holding AG(a) |
30,355 | 686,249 | ||||||
Deutsche Post AG, Registered |
57,824 | 1,742,795 | ||||||
GEA Group AG |
9,660 | 312,626 | ||||||
MTU Aero Engines AG |
3,183 | 475,714 | ||||||
Siemens AG, Registered |
43,745 | 4,275,761 | ||||||
|
|
|||||||
8,041,021 | ||||||||
Hong Kong — 0.7% | ||||||||
CK Hutchison Holdings Ltd. |
157,520 | 867,344 | ||||||
Techtronic Industries Co. Ltd. |
108,000 | 1,030,549 | ||||||
|
|
|||||||
1,897,893 |
Security | Shares | Value | ||||||
Ireland — 1.1% | ||||||||
Kingspan Group PLC |
8,901 | $ | 401,031 | |||||
Ryanair Holdings PLC, ADR(a)(b) |
5,721 | 334,221 | ||||||
Trane Technologies PLC |
13,641 | 1,975,353 | ||||||
|
|
|||||||
2,710,605 | ||||||||
Italy — 0.4% | ||||||||
Atlantia SpA |
30,014 | 662,279 | ||||||
Prysmian SpA |
15,700 | 449,709 | ||||||
|
|
|||||||
1,111,988 | ||||||||
Japan — 14.6% | ||||||||
AGC Inc. |
13,400 | 417,167 | ||||||
ANA Holdings Inc.(a) |
28,500 | 536,145 | ||||||
Central Japan Railway Co. |
12,000 | 1,408,691 | ||||||
Dai Nippon Printing Co. Ltd. |
15,800 | 316,541 | ||||||
Daifuku Co. Ltd. |
7,200 | 338,667 | ||||||
Daikin Industries Ltd. |
17,100 | 2,631,159 | ||||||
East Japan Railway Co. |
22,000 | 1,128,259 | ||||||
FANUC Corp. |
11,300 | 1,586,681 | ||||||
Hankyu Hanshin Holdings Inc. |
14,600 | 439,405 | ||||||
Hitachi Ltd. |
56,700 | 2,412,929 | ||||||
ITOCHU Corp. |
86,700 | 2,092,757 | ||||||
Japan Airlines Co. Ltd.(a) |
26,300 | 470,980 | ||||||
Kajima Corp. |
27,900 | 264,450 | ||||||
Kintetsu Group Holdings Co. Ltd. |
11,100 | 369,560 | ||||||
Komatsu Ltd. |
56,600 | 1,030,590 | ||||||
Kubota Corp. |
67,700 | 940,819 | ||||||
Makita Corp. |
16,300 | 316,307 | ||||||
Marubeni Corp. |
100,000 | 872,549 | ||||||
Mitsubishi Corp. |
87,300 | 2,387,674 | ||||||
Mitsubishi Electric Corp. |
125,000 | 1,131,006 | ||||||
Mitsubishi Heavy Industries Ltd. |
19,400 | 645,230 | ||||||
Mitsui & Co. Ltd. |
96,100 | 2,044,985 | ||||||
Nidec Corp. |
31,300 | 1,752,052 | ||||||
Nippon Yusen KK |
29,700 | 504,124 | ||||||
Obayashi Corp. |
42,500 | 272,764 | ||||||
Odakyu Electric Railway Co. Ltd. |
21,500 | 277,029 | ||||||
Recruit Holdings Co. Ltd. |
99,100 | 2,854,638 | ||||||
Secom Co. Ltd. |
12,600 | 718,440 | ||||||
SG Holdings Co. Ltd. |
28,500 | 390,353 | ||||||
SMC Corp. |
3,700 | 1,505,790 | ||||||
Sumitomo Corp. |
74,300 | 917,930 | ||||||
Taisei Corp. |
12,200 | 338,350 | ||||||
Tokyu Corp. |
36,600 | 417,405 | ||||||
Toppan Inc. |
20,100 | 299,411 | ||||||
Toshiba Corp. |
25,300 | 901,320 | ||||||
TOTO Ltd. |
9,400 | 313,899 | ||||||
Toyota Industries Corp. |
11,900 | 568,472 | ||||||
Toyota Tsusho Corp. |
13,800 | 427,452 | ||||||
West Japan Railway Co. |
14,400 | 550,427 | ||||||
Yamato Holdings Co. Ltd. |
19,600 | 294,341 | ||||||
Yaskawa Electric Corp. |
15,600 | 448,938 | ||||||
|
|
|||||||
37,535,686 | ||||||||
Netherlands — 0.9% | ||||||||
IMCD NV |
3,257 | 386,155 | ||||||
Randstad NV |
7,450 | 321,548 | ||||||
Wolters Kluwer NV |
15,451 | 1,504,520 | ||||||
|
|
|||||||
2,212,223 | ||||||||
Spain — 0.6% | ||||||||
ACS Actividades de Construccion y Servicios SA |
13,442 | 302,033 | ||||||
Aena SME SA(a)(c) |
4,299 | 446,149 |
36 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2022 |
iShares® Global Industrials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Spain (continued) | ||||||||
Ferrovial SA |
28,842 | $ | 654,673 | |||||
|
|
|||||||
1,402,855 | ||||||||
Sweden — 3.1% | ||||||||
Alfa Laval AB |
17,239 | 427,475 | ||||||
Assa Abloy AB, Class B |
58,510 | 1,096,246 | ||||||
Atlas Copco AB, Class A |
150,600 | 1,399,730 | ||||||
Atlas Copco AB, Class B |
90,702 | 751,830 | ||||||
Epiroc AB, Class A |
36,706 | 525,097 | ||||||
Epiroc AB, Class B |
23,006 | 290,098 | ||||||
Nibe Industrier AB, Class B |
89,772 | 800,786 | ||||||
Sandvik AB |
63,168 | 861,078 | ||||||
Skanska AB, Class B |
23,452 | 291,878 | ||||||
SKF AB, Class B |
22,855 | 306,180 | ||||||
Volvo AB, Class B |
93,582 | 1,324,276 | ||||||
|
|
|||||||
8,074,674 | ||||||||
Switzerland — 2.5% | ||||||||
ABB Ltd., Registered |
99,965 | 2,581,039 | ||||||
Adecco Group AG, Registered |
9,723 | 268,351 | ||||||
Geberit AG, Registered |
2,084 | 893,594 | ||||||
Kuehne + Nagel International AG, Registered |
3,323 | 676,669 | ||||||
Schindler Holding AG, Participation Certificates, NVS |
2,458 | 381,480 | ||||||
Schindler Holding AG, Registered |
1,282 | 193,163 | ||||||
SGS SA, Registered |
360 | 770,308 | ||||||
Siemens Energy AG(a) |
23,269 | 256,209 | ||||||
VAT Group AG(c) |
1,602 | 325,092 | ||||||
|
|
|||||||
6,345,905 | ||||||||
United Kingdom — 5.1% | ||||||||
Ashtead Group PLC |
26,186 | 1,176,008 | ||||||
BAE Systems PLC |
189,738 | 1,667,118 | ||||||
Bunzl PLC |
19,598 | 598,777 | ||||||
CNH Industrial NV |
58,773 | 657,802 | ||||||
DCC PLC |
5,756 | 298,924 | ||||||
Experian PLC |
56,607 | 1,657,033 | ||||||
Ferguson PLC |
13,673 | 1,418,290 | ||||||
IMI PLC |
15,519 | 191,909 | ||||||
Intertek Group PLC |
9,565 | 392,443 | ||||||
Melrose Industries PLC |
238,587 | 266,780 | ||||||
RELX PLC |
115,660 | 2,826,237 | ||||||
Rentokil Initial PLC |
109,512 | 580,465 | ||||||
Rolls-Royce Holdings PLC(a) |
481,113 | 368,461 | ||||||
Smiths Group PLC |
22,002 | 366,487 | ||||||
Spirax-Sarco Engineering PLC |
4,333 | 498,092 | ||||||
Weir Group PLC (The) |
14,754 | 228,410 | ||||||
|
|
|||||||
13,193,236 | ||||||||
United States — 53.3% | ||||||||
3M Co. |
32,367 | 3,576,553 | ||||||
A O Smith Corp. |
7,434 | 361,144 | ||||||
Alaska Air Group Inc.(a) |
7,454 | 291,824 | ||||||
Allegion PLC |
5,136 | 460,596 | ||||||
American Airlines Group Inc.(a) |
38,165 | 459,507 | ||||||
AMETEK Inc. |
13,386 | 1,518,106 | ||||||
Boeing Co. (The)(a) |
32,733 | 3,963,312 | ||||||
Carrier Global Corp. |
49,218 | 1,750,192 | ||||||
Caterpillar Inc. |
30,951 | 5,078,440 | ||||||
CH Robinson Worldwide Inc. |
7,245 | 697,766 | ||||||
Cintas Corp. |
5,030 | 1,952,596 | ||||||
Copart Inc.(a) |
12,463 | 1,326,063 | ||||||
CoStar Group Inc.(a) |
23,182 | 1,614,626 | ||||||
CSX Corp. |
125,675 | 3,347,982 |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
Cummins Inc. |
8,311 | $ | 1,691,372 | |||||
Deere & Co. |
16,305 | 5,444,076 | ||||||
Delta Air Lines Inc.(a) |
37,281 | 1,046,105 | ||||||
Dover Corp. |
8,375 | 976,357 | ||||||
Eaton Corp. PLC |
23,279 | 3,104,487 | ||||||
Emerson Electric Co. |
34,581 | 2,532,021 | ||||||
Equifax Inc. |
7,119 | 1,220,410 | ||||||
Expeditors International of Washington Inc. |
9,711 | 857,578 | ||||||
Fastenal Co. |
33,568 | 1,545,471 | ||||||
FedEx Corp. |
14,018 | 2,081,252 | ||||||
Fortive Corp. |
20,803 | 1,212,815 | ||||||
Fortune Brands Home & Security Inc., NVS |
7,417 | 398,219 | ||||||
Generac Holdings Inc.(a) |
3,735 | 665,353 | ||||||
General Dynamics Corp. |
13,215 | 2,803,827 | ||||||
General Electric Co. |
64,330 | 3,982,670 | ||||||
Honeywell International Inc. |
39,477 | 6,591,475 | ||||||
Howmet Aerospace Inc. |
21,622 | 668,768 | ||||||
Huntington Ingalls Industries Inc. |
2,345 | 519,418 | ||||||
IDEX Corp. |
4,383 | 875,943 | ||||||
Illinois Tool Works Inc. |
16,478 | 2,976,751 | ||||||
Ingersoll Rand Inc. |
23,498 | 1,016,523 | ||||||
Jacobs Solutions Inc., NVS |
7,373 | 799,897 | ||||||
JB Hunt Transport Services Inc. |
4,857 | 759,732 | ||||||
Johnson Controls International PLC |
40,283 | 1,982,729 | ||||||
L3Harris Technologies Inc.(b) |
11,191 | 2,325,826 | ||||||
Leidos Holdings Inc. |
7,994 | 699,235 | ||||||
Lockheed Martin Corp. |
13,837 | 5,345,095 | ||||||
Masco Corp. |
13,189 | 615,794 | ||||||
Nielsen Holdings PLC |
20,718 | 574,303 | ||||||
Nordson Corp. |
3,176 | 674,170 | ||||||
Norfolk Southern Corp. |
13,795 | 2,892,122 | ||||||
Northrop Grumman Corp. |
8,505 | 4,000,072 | ||||||
Old Dominion Freight Line Inc.(b) |
5,371 | 1,336,144 | ||||||
Otis Worldwide Corp. |
24,576 | 1,567,949 | ||||||
PACCAR Inc. |
20,272 | 1,696,564 | ||||||
Parker-Hannifin Corp. |
7,552 | 1,829,925 | ||||||
Pentair PLC |
9,476 | 385,010 | ||||||
Quanta Services Inc. |
8,330 | 1,061,159 | ||||||
Raytheon Technologies Corp. |
86,520 | 7,082,527 | ||||||
Republic Services Inc. |
12,010 | 1,633,840 | ||||||
Robert Half International Inc. |
6,408 | 490,212 | ||||||
Rockwell Automation Inc. |
6,751 | 1,452,208 | ||||||
Rollins Inc.(b) |
13,766 | 477,405 | ||||||
Snap-on Inc. |
3,132 | 630,628 | ||||||
Southwest Airlines Co.(a) |
34,948 | 1,077,796 | ||||||
Stanley Black & Decker Inc. |
8,645 | 650,190 | ||||||
Textron Inc.(b) |
12,357 | 719,919 | ||||||
TransDigm Group Inc. |
3,010 | 1,579,708 | ||||||
Union Pacific Corp. |
36,584 | 7,127,295 | ||||||
United Airlines Holdings Inc.(a) |
19,107 | 621,551 | ||||||
United Parcel Service Inc., Class B |
42,875 | 6,926,027 | ||||||
United Rentals Inc.(a) |
4,094 | 1,105,871 | ||||||
Verisk Analytics Inc. |
9,159 | 1,561,884 | ||||||
Waste Management Inc. |
22,081 | 3,537,597 | ||||||
Westinghouse Air Brake Technologies Corp. |
10,526 | 856,290 | ||||||
WW Grainger Inc. |
2,651 | 1,296,843 |
S C H E D U L E O F I N V E S T M E N T S |
37 |
Schedule of Investments (unaudited) (continued) September 30, 2022 |
iShares® Global Industrials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
Xylem Inc./NY |
10,493 | $ | 916,668 | |||||
|
|
|||||||
136,899,783 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.4% |
|
255,316,361 | ||||||
|
|
|||||||
Rights |
| |||||||
Brazil — 0.0% | ||||||||
Localiza Rent a Car SA, (Expires 10/26/22, Strike Price BRL 50.35) |
135 | 275 | ||||||
|
|
|||||||
Total
Rights — 0.0% |
|
275 | ||||||
|
|
|||||||
Total
Long-Term Investments — 99.4% |
255,316,636 | |||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 2.1% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 3.18%(d)(e)(f) |
4,987,632 | 4,989,128 |
Security | Shares | Value | ||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.81%(d)(e) |
440,000 | $ | 440,000 | |||||
|
|
|||||||
Total
Short-Term Securities — 2.1% |
5,429,128 | |||||||
|
|
|||||||
Total
Investments — 101.5% |
260,745,764 | |||||||
Liabilities in Excess of Other Assets — (1.5)% |
(3,975,636 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 256,770,128 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
(f) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/22 |
Shares Held at 09/30/22 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 2,815,249 | $ | 2,170,178 | (a) | $ | — | $ | 4,162 | $ | (461 | ) | $ | 4,989,128 | 4,987,632 | $ | 8,641 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
310,000 | 130,000 | (a) | — | — | — | 440,000 | 440,000 | 3,010 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 4,162 | $ | (461 | ) | $ | 5,429,128 | $ | 11,651 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 | 12/08/22 | $ | 127 | $ | (4,620 | ) | |||||||||
Euro STOXX 50 Index |
11 | 12/16/22 | 353 | (18,312 | ) | |||||||||||
XAI Industrial Index |
11 | 12/16/22 | 921 | (91,396 | ) | |||||||||||
|
|
|||||||||||||||
$ | (114,328 | ) | ||||||||||||||
|
|
38 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2022 |
iShares® Global Industrials ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
|
||||||||||||||||||||||||||||
Commodity
|
Credit
|
Equity
|
Foreign
|
Interest
|
Other
|
Total
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$
|
—
|
|
$
|
—
|
|
$
|
114,328
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
114,328
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||||||||||||||||||||||||||
Commodity
|
Credit
|
Equity
|
Foreign
|
Interest
|
Other
|
Total
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$
|
—
|
|
$
|
—
|
|
$
|
(170,404
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(170,404
|
)
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on | ||||||||||||||||||||||||||||
Futures contracts |
$
|
—
|
|
$
|
—
|
|
$
|
(135,752
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(135,752
|
)
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts |
||||
Average notional value of contracts — long |
$ | 1,372,357 | ||
|
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 |
$ | 151,362,669 | $ | 103,953,692 | $ | — | $ | 255,316,361 | ||||||||
Rights |
275 | — | — | 275 | ||||||||||||
Money Market Funds |
5,429,128 | — | — | 5,429,128 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$
|
156,792,072
|
|
$
|
103,953,692
|
|
$
|
—
|
|
$
|
260,745,764
|
| |||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$
|
(91,396
|
)
|
$
|
(22,932
|
)
|
$
|
—
|
|
$
|
(114,328
|
)
| ||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
39 |
Schedule of Investments (unaudited) September 30, 2022 |
iShares® Global Materials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 16.9% | ||||||||
BHP Group Ltd. |
674,655 | $ | 16,770,651 | |||||
BlueScope Steel Ltd. |
62,115 | 603,238 | ||||||
Fortescue Metals Group Ltd. |
225,683 | 2,422,786 | ||||||
Glencore PLC |
1,613,437 | 8,478,631 | ||||||
Mineral Resources Ltd. |
22,294 | 935,778 | ||||||
Newcrest Mining Ltd. |
118,380 | 1,299,716 | ||||||
Northern Star Resources Ltd. |
155,622 | 779,245 | ||||||
OZ Minerals Ltd. |
44,708 | 739,617 | ||||||
Rio Tinto Ltd. |
49,472 | 2,992,677 | ||||||
Rio Tinto PLC |
141,389 | 7,649,972 | ||||||
South32 Ltd. |
616,830 | 1,464,298 | ||||||
|
|
|||||||
44,136,609 | ||||||||
Belgium — 0.6% | ||||||||
Solvay SA |
9,799 | 758,660 | ||||||
Umicore SA |
27,425 | 805,124 | ||||||
|
|
|||||||
1,563,784 | ||||||||
Brazil — 2.6% | ||||||||
Vale SA, ADR |
515,874 | 6,871,442 | ||||||
|
|
|||||||
Canada — 8.4% | ||||||||
Agnico Eagle Mines Ltd. |
60,876 | 2,571,921 | ||||||
Barrick Gold Corp. |
235,946 | 3,657,005 | ||||||
CCL Industries Inc., Class B, NVS |
19,452 | 942,922 | ||||||
First Quantum Minerals Ltd. |
74,247 | 1,260,428 | ||||||
Franco-Nevada Corp. |
25,529 | 3,049,397 | ||||||
Kinross Gold Corp. |
172,025 | 647,577 | ||||||
Nutrien Ltd. |
71,823 | 5,989,800 | ||||||
Teck Resources Ltd., Class B |
61,713 | 1,876,833 | ||||||
Wheaton Precious Metals Corp. |
60,197 | 1,949,261 | ||||||
|
|
|||||||
21,945,144 | ||||||||
Chile — 0.8% | ||||||||
Empresas CMPC SA |
147,610 | 224,630 | ||||||
Sociedad Quimica y Minera de Chile SA, ADR |
19,082 | 1,731,692 | ||||||
|
|
|||||||
1,956,322 | ||||||||
Denmark — 0.8% | ||||||||
Chr Hansen Holding A/S |
13,716 | 675,640 | ||||||
Novozymes A/S, Class B |
27,865 | 1,400,275 | ||||||
|
|
|||||||
2,075,915 | ||||||||
Finland — 1.3% | ||||||||
Stora Enso OYJ, Class R |
81,397 | 1,034,022 | ||||||
UPM-Kymmene OYJ |
71,134 | 2,257,397 | ||||||
|
|
|||||||
3,291,419 | ||||||||
France — 3.9% | ||||||||
Air Liquide SA |
69,741 | 7,971,332 | ||||||
ArcelorMittal SA |
76,041 | 1,513,088 | ||||||
Arkema SA |
8,417 | 613,422 | ||||||
|
|
|||||||
10,097,842 | ||||||||
Germany — 3.0% | ||||||||
BASF SE |
122,406 | 4,697,744 | ||||||
Covestro AG(a) |
25,795 | 737,522 | ||||||
HeidelbergCement AG |
19,189 | 758,045 | ||||||
Symrise AG |
17,627 | 1,718,850 | ||||||
|
|
|||||||
7,912,161 | ||||||||
Ireland — 8.9% | ||||||||
CRH PLC |
102,375 | 3,291,546 | ||||||
James Hardie Industries PLC |
59,245 | 1,163,723 | ||||||
Linde PLC |
66,417 | 17,905,359 |
Security | Shares | Value | ||||||
Ireland (continued) | ||||||||
Smurfit Kappa Group PLC |
34,599 | $ | 989,503 | |||||
|
|
|||||||
23,350,131 | ||||||||
Japan — 5.7% | ||||||||
Asahi Kasei Corp. |
184,900 | 1,225,390 | ||||||
JFE Holdings Inc. |
77,400 | 718,691 | ||||||
Mitsubishi Chemical Group Corp. |
189,800 | 869,449 | ||||||
Nippon Paint Holdings Co. Ltd. |
142,700 | 963,926 | ||||||
Nippon Steel Corp. |
126,829 | 1,760,166 | ||||||
Nitto Denko Corp. |
20,000 | 1,082,915 | ||||||
Shin-Etsu Chemical Co. Ltd. |
55,500 | 5,492,103 | ||||||
Sumitomo Chemical Co. Ltd. |
219,000 | 753,271 | ||||||
Sumitomo Metal Mining Co. Ltd. |
36,400 | 1,043,097 | ||||||
Toray Industries Inc. |
216,200 | 1,064,100 | ||||||
|
|
|||||||
14,973,108 | ||||||||
Mexico — 0.8% | ||||||||
Cemex SAB de CV, NVS(b) |
2,025,630 | 698,025 | ||||||
Grupo Mexico SAB de CV, Series B |
415,558 | 1,405,586 | ||||||
|
|
|||||||
2,103,611 | ||||||||
Netherlands — 1.5% | ||||||||
Akzo Nobel NV |
24,101 | 1,365,803 | ||||||
Koninklijke DSM NV |
23,294 | 2,650,636 | ||||||
|
|
|||||||
4,016,439 | ||||||||
Norway — 0.7% | ||||||||
Norsk Hydro ASA |
181,730 | 975,149 | ||||||
Yara International ASA |
21,601 | 758,090 | ||||||
|
|
|||||||
1,733,239 | ||||||||
Peru — 0.2% | ||||||||
Southern Copper Corp. |
11,172 | 500,952 | ||||||
|
|
|||||||
South Korea — 1.5% | ||||||||
LG Chem Ltd. |
6,303 | 2,327,290 | ||||||
POSCO Holdings Inc. |
10,071 | 1,469,034 | ||||||
|
|
|||||||
3,796,324 | ||||||||
Sweden — 0.8% | ||||||||
Boliden AB |
36,366 | 1,123,561 | ||||||
Svenska Cellulosa AB SCA, Class B |
79,894 | 1,013,733 | ||||||
|
|
|||||||
2,137,294 | ||||||||
Switzerland — 4.3% | ||||||||
Givaudan SA, Registered |
1,058 | 3,196,220 | ||||||
Holcim AG |
75,518 | 3,094,768 | ||||||
SIG Group AG |
46,510 | 944,343 | ||||||
Sika AG, Registered |
20,488 | 4,117,918 | ||||||
|
|
|||||||
11,353,249 | ||||||||
Taiwan — 1.2% | ||||||||
Formosa Plastics Corp. |
574,720 | 1,564,370 | ||||||
Nan Ya Plastics Corp. |
747,940 | 1,569,485 | ||||||
|
|
|||||||
3,133,855 | ||||||||
United Kingdom — 4.2% | ||||||||
Amcor PLC |
200,273 | 2,148,929 | ||||||
Anglo American PLC |
178,259 | 5,352,373 | ||||||
Croda International PLC |
18,996 | 1,356,770 | ||||||
DS Smith PLC |
183,644 | 519,354 | ||||||
Johnson Matthey PLC |
26,650 | 538,042 | ||||||
Mondi PLC |
64,664 | 993,396 | ||||||
|
|
|||||||
10,908,864 | ||||||||
United States — 30.9% | ||||||||
Air Products and Chemicals Inc. |
29,559 | 6,879,266 | ||||||
Albemarle Corp. |
15,610 | 4,127,908 |
40 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2022 |
iShares® Global Materials ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
Avery Dennison Corp. |
10,829 | $ | 1,761,878 | |||||
Ball Corp. |
41,757 | 2,017,698 | ||||||
Celanese Corp. |
13,301 | 1,201,612 | ||||||
CF Industries Holdings Inc. |
26,572 | 2,557,555 | ||||||
Corteva Inc. |
95,768 | 5,473,141 | ||||||
Dow Inc. |
95,710 | 4,204,540 | ||||||
DuPont de Nemours Inc. |
66,755 | 3,364,452 | ||||||
Eastman Chemical Co. |
16,390 | 1,164,510 | ||||||
Ecolab Inc. |
33,043 | 4,772,070 | ||||||
FMC Corp. |
16,790 | 1,774,703 | ||||||
Freeport-McMoRan Inc. |
190,576 | 5,208,442 | ||||||
International Flavors & Fragrances Inc. |
33,977 | 3,086,131 | ||||||
International Paper Co. |
48,178 | 1,527,243 | ||||||
LyondellBasell Industries NV, Class A |
33,941 | 2,555,079 | ||||||
Martin Marietta Materials Inc. |
8,315 | 2,678,178 | ||||||
Mosaic Co. (The) |
46,095 | 2,227,771 | ||||||
Newmont Corp. |
105,774 | 4,445,681 | ||||||
Nucor Corp. |
34,888 | 3,732,667 | ||||||
Packaging Corp. of America |
12,493 | 1,402,839 | ||||||
PPG Industries Inc. |
31,318 | 3,466,589 | ||||||
Sealed Air Corp. |
19,456 | 865,987 | ||||||
Sherwin-Williams Co. (The) |
31,433 | 6,435,907 | ||||||
Vulcan Materials Co. |
17,712 | 2,793,360 | ||||||
Westrock Co. |
33,759 | 1,042,816 | ||||||
|
|
|||||||
80,768,023 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.0% |
|
258,625,727 | ||||||
|
|
|||||||
Preferred Stocks |
||||||||
Brazil — 0.2% | ||||||||
Gerdau SA, Preference Shares, ADR |
142,190 | 642,698 | ||||||
|
|
Security | Shares | Value | ||||||
South Korea — 0.1% | ||||||||
LG Chem Ltd., Preference Shares, NVS |
1,008 | $ | 175,553 | |||||
|
|
|||||||
Total
Preferred Stocks — 0.3% |
818,251 | |||||||
|
|
|||||||
Total
Long-Term Investments — 99.3% |
259,443,978 | |||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 2.81%(c)(d |
140,000 | 140,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.1% |
140,000 | |||||||
|
|
|||||||
Total
Investments — 99.4% |
259,583,978 | |||||||
Other Assets Less Liabilities — 0.6% |
1,580,872 | |||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 261,164,850 | ||||||
|
|
(a) |
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. |
(b) |
Non-income producing security. |
(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 six months ended September 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/22 |
Shares Held at 09/30/22 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares(a) |
$ | — | $ | 20 | (b) | $ | — | $ | (20 | ) | $ | — | $ | — | — | $ | 158 | (c) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
2,490,000 | — | (2,350,000 | )(b) | — | — | 140,000 | 140,000 | 2,907 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (20 | ) | $ | — | $ | 140,000 | $ | 3,065 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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. |
S C H E D U L E O F I N V E S T M E N T S |
41 |
Schedule of Investments (unaudited) (continued) September 30, 2022 |
iShares® Global Materials ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description
|
Number of
|
Expiration
|
Notional
|
Value/
|
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
S&P/TSX 60 Index |
2 | 12/15/22 | $ | 323 | $ | (22,888 | ) | |||||||||
FTSE 100 Index |
7 | 12/16/22 | 535 | (39,430 | ) | |||||||||||
MSCI Emerging Markets Index |
7 | 12/16/22 | 305 | (23,780 | ) | |||||||||||
S&P 500 E-Mini Index |
3 | 12/16/22 | 540 | (51,041 | ) | |||||||||||
|
|
|||||||||||||||
$ | (137,139 | ) | ||||||||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
|
||||||||||||||||||||||||||||
Commodity
|
Credit
|
Equity
|
Foreign
|
Interest
|
Other
|
Total
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 137,139 | $ | — | $ | — | $ | — | $ | 137,139 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||||||||||||||||||||||||||
Commodity
|
Credit
|
Equity
|
Foreign
|
Interest
|
Other
|
Total
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (329,672 | ) | $ | — | $ | — | $ | — | $ | (329,672 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on | ||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (395,853 | ) | $ | — | $ | — | $ | — | $ | (395,853 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts |
||||
Average notional value of contracts — long |
$ | 1,586,300 | ||
|
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.
42 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2022 |
iShares® Global Materials ETF |
Fair Value Hierarchy as of Period End (continued)
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 |
$ | 134,199,782 | $ | 124,425,945 | $ | — | $ | 258,625,727 | ||||||||
Preferred Stocks |
642,698 | 175,553 | — | 818,251 | ||||||||||||
Money Market Funds |
140,000 | — | — | 140,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 134,982,480 | $ | 124,601,498 | $ | — | $ | 259,583,978 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (97,709 | ) | $ | (39,430 | ) | $ | — | $ | (137,139 | ) | |||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
43 |
Schedule of Investments (unaudited) September 30, 2022 |
iShares® Global Tech ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 0.1% | ||||||||
Computershare Ltd. |
159,383 | $ | 2,542,170 | |||||
|
|
|||||||
Brazil — 0.0% | ||||||||
Pagseguro Digital Ltd., Class A(a)(b) |
50,604 | 669,491 | ||||||
|
|
|||||||
Canada — 0.8% | ||||||||
CGI Inc.(a) |
61,125 | 4,601,577 | ||||||
Constellation Software Inc. |
5,658 | 7,872,867 | ||||||
Open Text Corp. |
75,778 | 2,002,863 | ||||||
Shopify Inc., Class A(a) |
344,052 | 9,262,891 | ||||||
|
|
|||||||
23,740,198 | ||||||||
China — 0.2% | ||||||||
Xiaomi Corp., Class B(a)(c) |
4,190,600 | 4,745,313 | ||||||
|
|
|||||||
Finland — 0.2% | ||||||||
Nokia OYJ |
1,567,114 | 6,727,715 | ||||||
|
|
|||||||
France — 0.9% | ||||||||
Capgemini SE |
45,904 | 7,349,250 | ||||||
Dassault Systemes SE |
200,750 | 6,930,905 | ||||||
Edenred |
72,971 | 3,361,827 | ||||||
STMicroelectronics NV, New |
189,272 | 5,883,492 | ||||||
Worldline SA/France(a)(c) |
69,776 | 2,757,944 | ||||||
|
|
|||||||
26,283,418 | ||||||||
Germany — 1.2% | ||||||||
Infineon Technologies AG |
377,578 | 8,262,925 | ||||||
SAP SE |
317,064 | 25,839,174 | ||||||
|
|
|||||||
34,102,099 | ||||||||
Ireland — 0.1% | ||||||||
Seagate Technology Holdings PLC |
56,916 | 3,029,639 | ||||||
|
|
|||||||
Italy — 0.1% | ||||||||
Nexi SpA(a)(c) |
246,807 | 1,993,736 | ||||||
|
|
|||||||
Japan — 3.3% | ||||||||
Advantest Corp. |
58,800 | 2,715,422 | ||||||
Canon Inc. |
304,700 | 6,655,418 | ||||||
FUJIFILM Holdings Corp. |
118,300 | 5,403,329 | ||||||
Fujitsu Ltd. |
54,300 | 5,954,100 | ||||||
Keyence Corp. |
58,240 | 19,251,832 | ||||||
Kyocera Corp. |
103,500 | 5,214,198 | ||||||
Lasertec Corp. |
22,800 | 2,293,268 | ||||||
Murata Manufacturing Co. Ltd. |
186,200 | 8,570,259 | ||||||
NEC Corp. |
83,000 | 2,657,681 | ||||||
Nomura Research Institute Ltd. |
131,400 | 3,209,212 | ||||||
NTT Data Corp. |
194,400 | 2,511,083 | ||||||
Obic Co. Ltd. |
19,700 | 2,641,645 | ||||||
Omron Corp. |
62,300 | 2,854,415 | ||||||
Renesas Electronics Corp.(a) |
412,300 | 3,456,409 | ||||||
Ricoh Co. Ltd. |
187,100 | 1,369,984 | ||||||
Rohm Co. Ltd. |
26,500 | 1,736,709 | ||||||
TDK Corp. |
117,500 | 3,627,266 | ||||||
Tokyo Electron Ltd. |
45,700 | 11,260,246 | ||||||
|
|
|||||||
91,382,476 | ||||||||
Netherlands — 2.7% | ||||||||
Adyen NV(a)(c) |
8,917 | 11,120,937 | ||||||
ASM International NV |
13,440 | 3,009,311 | ||||||
ASML Holding NV |
117,879 | 48,834,772 |
Security | Shares | Value | ||||||
Netherlands (continued) | ||||||||
NXP Semiconductors NV |
75,618 | $ | 11,154,411 | |||||
|
|
|||||||
74,119,431 | ||||||||
New Zealand — 0.1% | ||||||||
Xero Ltd.(a) |
38,988 | 1,804,231 | ||||||
|
|
|||||||
South Korea — 2.5% | ||||||||
Samsung Electronics Co. Ltd. |
1,488,790 | 54,667,240 | ||||||
Samsung SDI Co. Ltd. |
16,058 | 6,040,112 | ||||||
SK Hynix Inc. |
154,115 | 8,815,406 | ||||||
|
|
|||||||
69,522,758 | ||||||||
Spain — 0.2% | ||||||||
Amadeus IT Group SA(a) |
128,234 | 5,945,265 | ||||||
|
|
|||||||
Sweden — 0.4% | ||||||||
Hexagon AB, Class B |
602,723 | 5,628,910 | ||||||
Telefonaktiebolaget LM Ericsson, Class B |
890,951 | 5,208,007 | ||||||
|
|
|||||||
10,836,917 | ||||||||
Switzerland — 0.5% | ||||||||
Logitech International SA, Registered |
48,547 | 2,219,449 | ||||||
TE Connectivity Ltd. |
92,779 | 10,239,090 | ||||||
Temenos AG, Registered |
18,469 | 1,245,123 | ||||||
|
|
|||||||
13,703,662 | ||||||||
Taiwan — 3.6% | ||||||||
Delta Electronics Inc. |
567,000 | 4,503,749 | ||||||
Hon Hai Precision Industry Co. Ltd. |
3,605,378 | 11,544,842 | ||||||
MediaTek Inc. |
465,000 | 8,024,229 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
5,491,600 | 72,793,305 | ||||||
United Microelectronics Corp. |
3,353,000 | 3,752,332 | ||||||
|
|
|||||||
100,618,457 | ||||||||
United Kingdom — 0.2% | ||||||||
Halma PLC |
105,953 | 2,383,133 | ||||||
Sage Group PLC (The) |
312,752 | 2,410,249 | ||||||
|
|
|||||||
4,793,382 | ||||||||
United States — 82.3% | ||||||||
Accenture PLC, Class A |
183,436 | 47,198,083 | ||||||
Adobe Inc.(a) |
136,039 | 37,437,933 | ||||||
Advanced Micro Devices Inc.(a) |
466,408 | 29,551,611 | ||||||
Akamai Technologies Inc.(a)(b) |
45,955 | 3,691,106 | ||||||
Amphenol Corp., Class A |
173,130 | 11,592,785 | ||||||
Analog Devices Inc. |
150,533 | 20,975,268 | ||||||
Ansys Inc.(a) |
24,830 | 5,504,811 | ||||||
Apple Inc. |
4,380,647 | 605,405,415 | ||||||
Applied Materials Inc.(b) |
254,720 | 20,869,210 | ||||||
Arista Networks Inc.(a) |
71,476 | 8,068,926 | ||||||
Autodesk Inc.(a) |
62,667 | 11,706,196 | ||||||
Automatic Data Processing Inc. |
120,281 | 27,206,359 | ||||||
Broadcom Inc. |
117,550 | 52,193,375 | ||||||
Broadridge Financial Solutions Inc. |
34,214 | 4,937,764 | ||||||
Cadence Design Systems Inc.(a) |
79,976 | 13,070,478 | ||||||
CDW Corp./DE |
39,388 | 6,147,679 | ||||||
Ceridian HCM Holding Inc.(a) |
44,392 | 2,480,625 | ||||||
Cisco Systems Inc. |
1,201,002 | 48,040,080 | ||||||
Citrix Systems Inc. |
36,950 | 3,839,105 | ||||||
Cognizant Technology Solutions Corp., Class A |
149,328 | 8,577,400 | ||||||
Corning Inc. |
218,831 | 6,350,476 | ||||||
DXC Technology Co.(a) |
73,076 | 1,788,900 | ||||||
Enphase Energy Inc.(a) |
38,916 | 10,798,023 | ||||||
EPAM Systems Inc.(a)(b) |
16,513 | 5,980,843 | ||||||
F5 Inc.(a) |
17,830 | 2,580,536 |
44 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2022 |
iShares® Global Tech ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
Fidelity National Information Services Inc. |
176,193 | $ | 13,314,905 | |||||
Fiserv Inc.(a)(b) |
185,472 | 17,354,615 | ||||||
FleetCor Technologies Inc.(a) |
22,323 | 3,932,643 | ||||||
Fortinet Inc.(a) |
191,734 | 9,419,891 | ||||||
Gartner Inc.(a)(b) |
23,239 | 6,429,999 | ||||||
Global Payments Inc.(b) |
80,837 | 8,734,438 | ||||||
Hewlett Packard Enterprise Co. |
378,488 | 4,534,286 | ||||||
HP Inc. |
263,907 | 6,576,562 | ||||||
Intel Corp. |
1,190,682 | 30,683,875 | ||||||
International Business Machines Corp. |
261,912 | 31,117,765 | ||||||
Intuit Inc. |
81,813 | 31,687,811 | ||||||
Jack Henry & Associates Inc. |
20,590 | 3,752,939 | ||||||
Juniper Networks Inc. |
89,845 | 2,346,751 | ||||||
Keysight Technologies Inc.(a) |
51,799 | 8,151,091 | ||||||
KLA Corp. |
41,124 | 12,445,356 | ||||||
Lam Research Corp. |
39,904 | 14,604,864 | ||||||
Mastercard Inc., Class A |
248,300 | 70,601,622 | ||||||
Microchip Technology Inc. |
161,142 | 9,834,496 | ||||||
Micron Technology Inc. |
321,899 | 16,127,140 | ||||||
Microsoft Corp. |
2,162,670 | 503,685,843 | ||||||
Monolithic Power Systems Inc. |
12,771 | 4,640,981 | ||||||
Motorola Solutions Inc. |
48,210 | 10,797,594 | ||||||
NetApp Inc. |
64,534 | 3,991,428 | ||||||
NortonLifeLock Inc. |
173,405 | 3,492,377 | ||||||
Nvidia Corp. |
726,124 | 88,144,192 | ||||||
ON Semiconductor Corp.(a)(b) |
125,075 | 7,795,925 | ||||||
Oracle Corp. |
440,493 | 26,900,908 | ||||||
Paychex Inc. |
93,228 | 10,461,114 | ||||||
Paycom Software Inc.(a) |
13,669 | 4,510,633 | ||||||
PayPal Holdings Inc.(a) |
333,365 | 28,692,726 | ||||||
PTC Inc.(a) |
31,183 | 3,261,742 | ||||||
Qorvo Inc.(a) |
32,127 | 2,551,205 | ||||||
Qualcomm Inc. |
325,652 | 36,792,163 | ||||||
Roper Technologies Inc. |
30,591 | 11,001,747 | ||||||
Salesforce Inc.(a) |
288,541 | 41,503,737 | ||||||
ServiceNow Inc.(a) |
58,583 | 22,121,527 | ||||||
Skyworks Solutions Inc. |
46,340 | 3,951,412 | ||||||
SolarEdge Technologies Inc.(a) |
15,953 | 3,692,481 | ||||||
Synopsys Inc.(a) |
44,373 | 13,556,395 | ||||||
Teledyne Technologies Inc.(a)(b) |
13,244 | 4,469,453 | ||||||
Teradyne Inc. |
46,118 | 3,465,768 | ||||||
Texas Instruments Inc. |
265,730 | 41,129,689 | ||||||
Trimble Inc.(a) |
70,771 | 3,840,742 |
Security | Shares | Value | ||||||
United States (continued) | ||||||||
Tyler Technologies Inc.(a) |
12,085 | $ | 4,199,538 | |||||
VeriSign Inc.(a) |
27,362 | 4,752,779 | ||||||
Visa Inc., Class A(b) |
474,464 | 84,288,530 | ||||||
Western Digital Corp.(a) |
91,687 | 2,984,412 | ||||||
Zebra Technologies Corp., Class A(a)(b) |
14,969 | 3,922,028 | ||||||
|
|
|||||||
2,282,243,105 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.4% |
2,758,803,463 | |||||||
|
|
|||||||
Preferred Stocks |
||||||||
South Korea — 0.3% |
||||||||
Samsung Electronics Co. Ltd., Preference Shares, NVS |
237,653 | 7,719,654 | ||||||
|
|
|||||||
Total
Preferred Stocks — 0.3% |
7,719,654 | |||||||
|
|
|||||||
Total
Long-Term Investments — 99.7% |
2,766,523,117 | |||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 1.2% |
||||||||
BlackRock
Cash Funds: Institutional, |
28,166,236 | 28,174,686 | ||||||
BlackRock
Cash Funds: Treasury, |
3,270,000 | 3,270,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 1.2% |
31,444,686 | |||||||
|
|
|||||||
Total
Investments — 100.9% |
2,797,967,803 | |||||||
Liabilities in Excess of Other Assets — (0.9)% |
(23,926,135 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 2,774,041,668 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
(f) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
S C H E D U L E O F I N V E S T M E N T S |
45 |
Schedule of Investments (unaudited) (continued) September 30, 2022 |
iShares® Global Tech ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
|
||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value at 03/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 09/30/22 |
Shares Held at 09/30/22 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 1,105,132 | $ | 27,074,044 | (a) | $ | — | $ | (3,876 | ) | $ | (614 | ) | $ | 28,174,686 | 28,166,236 | $ | 15,400 | (b) | $ | — | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
3,810,000 | — | (540,000 | )(a) | — | — | 3,270,000 | 3,270,000 | 19,186 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (3,876 | ) | $ | (614 | ) | $ | 31,444,686 | $ | 34,586 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 Technology Select Sector Index |
91 | 12/16/22 | $ | 10,952 | $ | (1,023,075 | ) | |||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 1,023,075 | $ | — | $ | — | $ | — | $ | 1,023,075 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (895,146 | ) | $ | — | $ | — | $ | — | $ | (895,146 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (1,670,718 | ) | $ | — | $ | — | $ | — | $ | (1,670,718 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts |
||||
Average notional value of contracts — long
|
$
|
9,327,025
|
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
46 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2022 |
iShares® Global Tech 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 |
$ | 2,327,236,829 | $ | 431,566,634 | $ | — | $ | 2,758,803,463 | ||||||||
Preferred Stocks |
— | 7,719,654 | — | 7,719,654 | ||||||||||||
Money Market Funds |
31,444,686 | — | — | 31,444,686 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 2,358,681,515 | $ | 439,286,288 | $ | — | $ | 2,797,967,803 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (1,023,075 | ) | $ | — | $ | — | $ | (1,023,075 | ) | ||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
47 |
Schedule of Investments (unaudited) September 30, 2022 |
iShares® Global Utilities ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 1.0% | ||||||||
APA Group |
127,404 | $ | 783,909 | |||||
Origin Energy Ltd. |
182,639 | 605,990 | ||||||
|
|
|||||||
1,389,899 | ||||||||
Austria — 0.2% | ||||||||
Verbund AG |
3,562 | 304,114 | ||||||
|
|
|||||||
Brazil — 0.8% | ||||||||
Centrais Eletricas Brasileiras SA |
142,631 | 1,136,162 | ||||||
|
|
|||||||
Canada — 4.4% | ||||||||
Algonquin Power & Utilities Corp. |
71,421 | 780,210 | ||||||
Brookfield Infrastructure Partners LP(a) |
48,574 | 1,742,384 | ||||||
Emera Inc. |
28,149 | 1,138,920 | ||||||
Fortis Inc. |
50,749 | 1,928,047 | ||||||
Hydro One Ltd.(b) |
33,642 | 822,693 | ||||||
|
|
|||||||
6,412,254 | ||||||||
Chile — 0.2% | ||||||||
Enel Americas SA |
2,163,089 | 227,926 | ||||||
|
|
|||||||
Colombia — 0.1% | ||||||||
Interconexion Electrica SA ESP |
48,617 | 174,009 | ||||||
|
|
|||||||
Denmark — 1.1% | ||||||||
Orsted AS(b) |
20,056 | 1,598,478 | ||||||
|
|
|||||||
Finland — 0.4% | ||||||||
Fortum OYJ |
46,146 | 620,067 | ||||||
|
|
|||||||
France — 3.0% | ||||||||
Electricite de France SA |
65,928 | 764,596 | ||||||
Engie SA |
196,213 | 2,258,390 | ||||||
Veolia Environnement SA |
69,815 | 1,334,317 | ||||||
|
|
|||||||
4,357,303 | ||||||||
Germany — 3.1% | ||||||||
E.ON SE |
238,017 | 1,828,631 | ||||||
RWE AG |
71,691 | 2,635,073 | ||||||
|
|
|||||||
4,463,704 | ||||||||
Hong Kong — 0.9% | ||||||||
CLP Holdings Ltd. |
178,000 | 1,345,276 | ||||||
|
|
|||||||
Italy — 3.6% | ||||||||
Enel SpA |
819,139 | 3,359,472 | ||||||
Snam SpA |
221,619 | 895,769 | ||||||
Terna - Rete Elettrica Nazionale |
149,162 | 908,475 | ||||||
|
|
|||||||
5,163,716 | ||||||||
Japan — 2.0% | ||||||||
Chubu Electric Power Co. Inc. |
80,400 | 723,084 | ||||||
Kansai Electric Power Co. Inc. (The) |
89,300 | 747,115 | ||||||
Osaka Gas Co. Ltd. |
44,300 | 667,866 | ||||||
Tokyo Gas Co. Ltd. |
43,500 | 734,326 | ||||||
|
|
|||||||
2,872,391 | ||||||||
Portugal — 0.9% | ||||||||
EDP - Energias de Portugal SA |
311,110 | 1,350,221 | ||||||
|
|
|||||||
Spain — 5.4% | ||||||||
Enagas SA |
23,897 | 369,900 | ||||||
Endesa SA |
34,193 | 513,564 | ||||||
Iberdrola SA |
621,053 | 5,790,812 | ||||||
Naturgy Energy Group SA |
20,079 | 464,499 |
Security | Shares | Value | ||||||
Spain (continued) | ||||||||
Red Electrica Corp. SA |
46,224 | $ | 709,335 | |||||
|
|
|||||||
7,848,110 | ||||||||
United Kingdom — 5.2% | ||||||||
National Grid PLC |
410,942 | 4,230,279 | ||||||
Severn Trent PLC |
26,859 | 702,137 | ||||||
SSE PLC |
111,133 | 1,876,591 | ||||||
United Utilities Group PLC |
73,321 | 723,983 | ||||||
|
|
|||||||
7,532,990 | ||||||||
United States — 67.6% | ||||||||
AES Corp. (The) |
70,811 | 1,600,329 | ||||||
Alliant Energy Corp. |
26,604 | 1,409,746 | ||||||
Ameren Corp. |
27,393 | 2,206,506 | ||||||
American Electric Power Co. Inc. |
54,465 | 4,708,499 | ||||||
American Water Works Co. Inc. |
19,274 | 2,508,704 | ||||||
Atmos Energy Corp. |
14,833 | 1,510,741 | ||||||
CenterPoint Energy Inc. |
66,737 | 1,880,649 | ||||||
CMS Energy Corp. |
30,766 | 1,791,812 | ||||||
Consolidated Edison Inc. |
37,592 | 3,223,890 | ||||||
Constellation Energy Corp. |
34,653 | 2,882,783 | ||||||
Dominion Energy Inc. |
88,258 | 6,099,510 | ||||||
DTE Energy Co. |
20,541 | 2,363,242 | ||||||
Duke Energy Corp. |
81,628 | 7,593,037 | ||||||
Edison International |
40,440 | 2,288,095 | ||||||
Entergy Corp. |
21,568 | 2,170,388 | ||||||
Evergy Inc. |
24,333 | 1,445,380 | ||||||
Eversource Energy |
36,731 | 2,863,549 | ||||||
Exelon Corp. |
105,143 | 3,938,657 | ||||||
FirstEnergy Corp. |
57,550 | 2,129,350 | ||||||
NextEra Energy Inc. |
184,022 | 14,429,165 | ||||||
NiSource Inc. |
43,037 | 1,084,102 | ||||||
NRG Energy Inc. |
24,930 | 954,071 | ||||||
PG&E Corp.(a) |
168,464 | 2,105,800 | ||||||
Pinnacle West Capital Corp. |
11,985 | 773,152 | ||||||
PPL Corp. |
78,048 | 1,978,517 | ||||||
Public Service Enterprise Group Inc. |
52,889 | 2,973,948 | ||||||
Sempra Energy |
33,323 | 4,996,451 | ||||||
Southern Co. (The) |
112,694 | 7,663,192 | ||||||
WEC Energy Group Inc. |
33,443 | 2,990,807 | ||||||
Xcel Energy Inc. |
57,989 | 3,711,296 | ||||||
|
|
|||||||
98,275,368 | ||||||||
|
|
|||||||
Total
Long-Term Investments — 99.9% |
|
145,071,988 | ||||||
|
|
|||||||
Short-Term Securities |
||||||||
Money Market Funds — 0.1% |
||||||||
BlackRock
Cash Funds: Treasury, |
180,000 | 180,000 | ||||||
|
|
|||||||
Total
Short-Term Securities — 0.1% |
180,000 | |||||||
|
|
|||||||
Total
Investments — 100.0% |
145,251,988 | |||||||
Other Assets Less Liabilities — 0.0% |
|
25,966 | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 145,277,954 | ||||||
|
|
(a) |
Non-income producing security. |
48 |
2 0 2 2 I S H A R E S S E M I - 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 (unaudited) (continued) September 30, 2022 |
iShares® Global Utilities ETF |
(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 six months ended September 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/22 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/22 |
Shares Held at 09/30/22 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares(a) |
$ | 20,246 | $ | — | $ | (20,092 | )(b) | $ | (151 | ) | $ | (3 | ) | $ | — | — | $ | 1,248 | (c) | $ | — | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
190,000 | — | (10,000 | )(b) | — | — | 180,000 | 180,000 | 2,175 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (151 | ) | $ | (3 | ) | $ | 180,000 | $ | 3,423 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 |
||||||||||||||||
E-Mini Utilities Select Sector Index |
3 | 12/16/22 | $ | 199 | $ | (35,227 | ) | |||||||||
|
|
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
Liabilities — Derivative Financial Instruments |
||||||||||||||||||||||||||||
Futures contracts |
||||||||||||||||||||||||||||
Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | 35,227 | $ | — | $ | — | $ | — | $ | 35,227 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
S C H E D U L E O F I N V E S T M E N T S |
49 |
Schedule of Investments (unaudited) (continued) September 30, 2022 |
iShares® Global Utilities ETF |
Derivative Financial Instruments Categorized by Risk Exposure (continued)
For the period ended September 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||||||||||||||||||||||||||
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net Realized Gain (Loss) from |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (14,812 | ) | $ | — | $ | — | $ | — | $ | (14,812 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on |
||||||||||||||||||||||||||||
Futures contracts |
$ | — | $ | — | $ | (58,323 | ) | $ | — | $ | — | $ | — | $ | (58,323 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts |
||||
Average notional value of contracts — long
|
$
|
531,216
|
|
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 |
$ | 106,225,719 | $ | 38,846,269 | $ | — | $ | 145,071,988 | ||||||||
Money Market Funds |
180,000 | — | — | 180,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 106,405,719 | $ | 38,846,269 | $ | — | $ | 145,251,988 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (35,227 | ) | $ | — | $ | — | $ | (35,227 | ) | ||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
50 |
2 0 2 2 I S H A R E S S E M I - 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 |
Statements of Assets and Liabilities (unaudited)
September 30, 2022
iShares Global Comm Services ETF |
iShares Global Consumer Discretionary ETF |
iShares Global Consumer Staples ETF |
iShares Global Energy ETF |
|||||||||||||
|
||||||||||||||||
ASSETS |
||||||||||||||||
Investments, at value — unaffiliated(a)(b) |
$ | 188,251,640 | $ | 274,353,222 | $ | 1,147,213,927 | $ | 1,863,201,909 | ||||||||
Investments, at value — affiliated(c) |
2,131,073 | 1,844,673 | 4,268,445 | 7,860,000 | ||||||||||||
Cash |
5,056 | 6,781 | 343 | 2,748 | ||||||||||||
Foreign currency, at value(d) |
106,816 | 343,547 | 1,312,878 | 2,812,411 | ||||||||||||
Cash pledged for futures contracts |
11,999 | 45,001 | 269,000 | 837,000 | ||||||||||||
Foreign currency collateral pledged for futures contracts(e) |
— | 39,849 | 87,252 | 90,441 | ||||||||||||
Receivables: |
||||||||||||||||
Investments sold |
— | 118,894 | 1,977 | 11,628,571 | ||||||||||||
Securities lending income — affiliated |
1,160 | 340 | 633 | — | ||||||||||||
Capital shares sold |
205,429 | — | 133,830 | 11,927 | ||||||||||||
Dividends — unaffiliated |
287,886 | 402,327 | 3,261,605 | 5,872,720 | ||||||||||||
Dividends — affiliated |
285 | 968 | 2,798 | 8,882 | ||||||||||||
Tax reclaims |
20,426 | 112,028 | 958,774 | 495,932 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
191,021,770 | 277,267,630 | 1,157,511,462 | 1,892,822,541 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES |
||||||||||||||||
Collateral on securities loaned, at value |
1,939,749 | 1,574,673 | 3,468,445 | — | ||||||||||||
Payables: |
||||||||||||||||
Investments purchased |
205,429 | — | 133,842 | 16,749,042 | ||||||||||||
Variation margin on futures contracts |
2,309 | 12,497 | 90,676 | 71,070 | ||||||||||||
Capital shares redeemed |
— | 345,079 | — | — | ||||||||||||
Investment advisory fees |
69,663 | 107,249 | 417,714 | 685,336 | ||||||||||||
Professional fees |
22,667 | — | — | — | ||||||||||||
IRS compliance fee for foreign withholding tax claims |
336,848 | — | — | 1,531,479 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
2,576,665 | 2,039,498 | 4,110,677 | 19,036,927 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 188,445,105 | $ | 275,228,132 | $ | 1,153,400,785 | $ | 1,873,785,614 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS CONSIST OF |
||||||||||||||||
Paid-in capital |
$ | 374,508,364 | $ | 399,082,938 | $ | 1,292,107,499 | $ | 2,005,570,875 | ||||||||
Accumulated loss |
(186,063,259 | ) | (123,854,806 | ) | (138,706,714 | ) | (131,785,261 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 188,445,105 | $ | 275,228,132 | $ | 1,153,400,785 | $ | 1,873,785,614 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSET VALUE |
||||||||||||||||
Shares outstanding |
3,600,000 | 2,250,000 | 21,500,000 | 56,250,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net asset value |
$ | 52.35 | $ | 122.32 | $ | 53.65 | $ | 33.31 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares authorized |
Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Par value |
None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(a) Investments, at cost — unaffiliated |
$ | 266,193,154 | $ | 366,747,622 | $ | 1,262,424,258 | $ | 1,921,041,809 | ||||||||
(b) Securities loaned, at value |
$ | 1,878,401 | $ | 1,549,233 | $ | 3,332,265 | $ | — | ||||||||
(c) Investments, at cost — affiliated |
$ | 2,131,073 | $ | 1,844,673 | $ | 4,268,445 | $ | 7,860,000 | ||||||||
(d) Foreign currency, at cost |
$ | 107,483 | $ | 348,979 | $ | 1,339,983 | $ | 2,829,123 | ||||||||
(e) Foreign currency collateral pledged, at cost |
$ | 80 | $ | 40,993 | $ | 90,738 | $ | 93,531 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
51 |
Statements of Assets and Liabilities (unaudited) (continued)
September 30, 2022
iShares Global Financials ETF |
iShares Global Healthcare ETF |
iShares Global Industrials ETF |
iShares Global Materials ETF |
|||||||||||||
|
||||||||||||||||
ASSETS |
||||||||||||||||
Investments, at value — unaffiliated(a)(b) |
$ | 656,365,938 | $ | 3,429,981,046 | $ | 255,316,636 | $ | 259,443,978 | ||||||||
Investments, at value — affiliated(c) |
10,470,202 | 8,043,819 | 5,429,128 | 140,000 | ||||||||||||
Cash |
— | 106,825 | 39,181 | 3,561 | ||||||||||||
Foreign currency, at value(d) |
1,419,388 | 2,246,266 | 212,776 | 640,006 | ||||||||||||
Cash pledged for futures contracts |
216,000 | 631,000 | 55,999 | 45,000 | ||||||||||||
Foreign currency collateral pledged for futures contracts(e) |
88,218 | — | 42,791 | 49,693 | ||||||||||||
Receivables: |
||||||||||||||||
Investments sold |
163,738 | 581 | 334 | — | ||||||||||||
Securities lending income — affiliated |
695 | 741 | 5,589 | — | ||||||||||||
Capital shares sold |
— | 1,746,006 | — | — | ||||||||||||
Dividends — unaffiliated |
1,066,288 | 3,844,467 | 527,537 | 648,892 | ||||||||||||
Dividends — affiliated |
2,447 | 9,564 | 753 | 948 | ||||||||||||
Tax reclaims |
942,590 | 2,788,683 | 232,563 | 301,475 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
670,735,504 | 3,449,398,998 | 261,863,287 | 261,273,553 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES |
||||||||||||||||
Bank overdraft |
70,283 | — | — | — | ||||||||||||
Collateral on securities loaned, at value |
250,751 | 3,553,819 | 4,985,917 | — | ||||||||||||
Payables: |
||||||||||||||||
Investments purchased |
713,112 | 1,166,413 | — | 163 | ||||||||||||
Variation margin on futures contracts |
32,149 | 166,052 | 10,580 | 12,575 | ||||||||||||
Capital shares redeemed |
332,822 | — | — | — | ||||||||||||
Investment advisory fees |
249,749 | 1,200,066 | 96,662 | 95,965 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
1,648,866 | 6,086,350 | 5,093,159 | 108,703 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 669,086,638 | $ | 3,443,312,648 | $ | 256,770,128 | $ | 261,164,850 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS CONSIST OF |
||||||||||||||||
Paid-in capital |
$ | 1,037,370,135 | $ | 3,158,309,779 | $ | 371,007,525 | $ | 474,322,554 | ||||||||
Accumulated earnings (loss) |
(368,283,497 | ) | 285,002,869 | (114,237,397 | ) | (213,157,704 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 669,086,638 | $ | 3,443,312,648 | $ | 256,770,128 | $ | 261,164,850 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSET VALUE |
||||||||||||||||
Shares outstanding |
10,900,000 | 45,700,000 | 2,850,000 | 3,850,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net asset value |
$ | 61.38 | $ | 75.35 | $ | 90.09 | $ | 67.84 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares authorized |
Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Par value |
None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(a) Investments, at cost — unaffiliated |
$ | 880,535,809 | $ | 3,119,490,786 | $ | 341,198,491 | $ | 369,400,646 | ||||||||
(b) Securities loaned, at value |
$ | 237,021 | $ | 3,391,609 | $ | 4,814,908 | $ | — | ||||||||
(c) Investments, at cost — affiliated |
$ | 15,534,713 | $ | 8,043,819 | $ | 5,429,128 | $ | 140,000 | ||||||||
(d) Foreign currency, at cost |
$ | 1,448,953 | $ | 2,319,435 | $ | 216,853 | $ | 639,368 | ||||||||
(e) Foreign currency collateral pledged, at cost |
$ | 94,645 | $ | — | $ | 44,586 | $ | 54,471 |
See notes to financial statements.
52 |
2 0 2 2 I S H A R E S S E M I - 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 |
Statements of Assets and Liabilities (unaudited) (continued)
September 30, 2022
iShares Global Tech ETF |
iShares Global Utilities ETF |
|||||||
|
||||||||
ASSETS |
||||||||
Investments, at value — unaffiliated(a)(b) |
$ | 2,766,523,117 | $ | 145,071,988 | ||||
Investments, at value — affiliated(c) |
31,444,686 | 180,000 | ||||||
Cash |
3,682 | 11,185 | ||||||
Foreign currency, at value(d) |
3,165,057 | 196,714 | ||||||
Cash pledged for futures contracts |
556,000 | 23,000 | ||||||
Foreign currency collateral pledged for futures contracts(e) |
— | 9,801 | ||||||
Receivables: |
||||||||
Investments sold |
659,937 | 2,147,673 | ||||||
Securities lending income — affiliated |
2,086 | — | ||||||
Dividends — unaffiliated |
2,026,546 | 197,249 | ||||||
Dividends — affiliated |
6,745 | 602 | ||||||
Tax reclaims |
39,678 | 44,114 | ||||||
Other assets |
10,270 | — | ||||||
|
|
|
|
|||||
Total assets |
2,804,437,804 | 147,882,326 | ||||||
|
|
|
|
|||||
LIABILITIES |
||||||||
Collateral on securities loaned, at value |
28,173,737 | — | ||||||
Payables: |
||||||||
Investments purchased |
1,272 | 2,225,456 | ||||||
Variation margin on futures contracts |
128,131 | 5,665 | ||||||
Capital shares redeemed |
1,042,112 | 240,854 | ||||||
Investment advisory fees |
1,050,884 | 60,951 | ||||||
Professional fees |
— | 22,667 | ||||||
IRS compliance fee for foreign withholding tax claims |
— | 48,779 | ||||||
|
|
|
|
|||||
Total liabilities |
30,396,136 | 2,604,372 | ||||||
|
|
|
|
|||||
NET ASSETS |
$ | 2,774,041,668 | $ | 145,277,954 | ||||
|
|
|
|
|||||
NET ASSETS CONSIST OF |
||||||||
Paid-in capital |
$ | 2,447,578,390 | $ | 223,279,590 | ||||
Accumulated earnings (loss) |
326,463,278 | (78,001,636 | ) | |||||
|
|
|
|
|||||
NET ASSETS |
$ | 2,774,041,668 | $ | 145,277,954 | ||||
|
|
|
|
|||||
NET ASSET VALUE |
||||||||
Shares outstanding |
65,650,000 | 2,650,000 | ||||||
|
|
|
|
|||||
Net asset value |
$ | 42.26 | $ | 54.82 | ||||
|
|
|
|
|||||
Shares authorized |
Unlimited | Unlimited | ||||||
|
|
|
|
|||||
Par value |
None | None | ||||||
|
|
|
|
|||||
(a) Investments, at cost — unaffiliated |
$ | 2,798,293,027 | $ | 178,708,209 | ||||
(b) Securities loaned, at value |
$ | 27,331,213 | $ | — | ||||
(c) Investments, at cost — affiliated |
$ | 31,444,686 | $ | 180,000 | ||||
(d) Foreign currency, at cost |
$ | 3,316,330 | $ | 199,002 | ||||
(e) Foreign currency collateral pledged, at cost |
$ | — | $ | 9,802 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
53 |
Statements of Operations (unaudited)
Six Months Ended September 30, 2022
iShares Global Comm Services ETF |
iShares Global Consumer Discretionary ETF |
iShares Global Consumer Staples ETF |
iShares Global Energy ETF |
|||||||||||||
|
||||||||||||||||
INVESTMENT INCOME |
||||||||||||||||
Dividends — unaffiliated |
$ | 2,097,596 | $ | 2,904,235 | $ | 16,820,744 | $ | 67,902,516 | ||||||||
Dividends — affiliated |
1,191 | 2,863 | 9,610 | 20,920 | ||||||||||||
Non-cash dividends — unaffiliated |
106,557 | — | — | — | ||||||||||||
Securities lending income — affiliated — net |
3,582 | 7,694 | 2,482 | 2,470 | ||||||||||||
Other income — unaffiliated |
— | — | 82 | 884,375 | ||||||||||||
Foreign taxes withheld |
(96,320 | ) | (221,223 | ) | (729,927 | ) | (2,090,717 | ) | ||||||||
Foreign withholding tax claims |
— | — | 44,934 | 2,544,232 | ||||||||||||
IRS compliance fee for foreign withholding tax claims |
(4,798 | ) | — | — | (1,531,479 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total investment income |
2,107,808 | 2,693,569 | 16,147,925 | 67,732,317 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
EXPENSES |
||||||||||||||||
Investment advisory |
500,816 | 656,713 | 2,283,955 | 4,432,970 | ||||||||||||
Commitment costs |
159 | 163 | 176 | 1,534 | ||||||||||||
Professional |
— | — | 4,501 | 342,881 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
500,975 | 656,876 | 2,288,632 | 4,777,385 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income |
1,606,833 | 2,036,693 | 13,859,293 | 62,954,932 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments — unaffiliated |
(6,374,104 | ) | (9,291,218 | ) | (9,261,814 | ) | (23,239,388 | ) | ||||||||
Investments — affiliated |
1,272 | (4,831 | ) | 384 | (423 | ) | ||||||||||
Foreign currency transactions |
(63,679 | ) | (92,249 | ) | (302,054 | ) | (836,638 | ) | ||||||||
Futures contracts |
(55,782 | ) | (119,025 | ) | 34,243 | (1,221,323 | ) | |||||||||
In-kind redemptions — unaffiliated(a) |
6,005,855 | 3,492,248 | — | 142,905,421 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(486,438 | ) | (6,015,075 | ) | (9,529,241 | ) | 117,607,649 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments — unaffiliated |
(69,621,881 | ) | (71,068,999 | ) | (159,657,011 | ) | (298,181,125 | ) | ||||||||
Investments — affiliated |
— | — | (19 | ) | — | |||||||||||
Foreign currency translations |
(6,468 | ) | (17,756 | ) | (120,572 | ) | (197,463 | ) | ||||||||
Futures contracts |
4,509 | (138,052 | ) | (701,074 | ) | (895,461 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
(69,623,840 | ) | (71,224,807 | ) | (160,478,676 | ) | (299,274,049 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized and unrealized loss |
(70,110,278 | ) | (77,239,882 | ) | (170,007,917 | ) | (181,666,400 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (68,503,445 | ) | $ | (75,203,189 | ) | $ | (156,148,624 | ) | $ | (118,711,468 | ) | ||||
|
|
|
|
|
|
|
|
(a) |
See Note 2 of the Notes to Financial Statements. |
See notes to financial statements.
54 |
2 0 2 2 I S H A R E S S E M I - 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 |
Statements of Operations (unaudited) (continued)
Six Months Ended September 30, 2022
iShares Global Financials ETF |
iShares Global Healthcare ETF |
iShares Global Industrials ETF |
iShares Global Materials ETF |
|||||||||||||
|
||||||||||||||||
INVESTMENT INCOME |
||||||||||||||||
Dividends — unaffiliated |
$ | 19,910,173 | $ | 29,748,822 | $ | 3,750,279 | $ | 11,184,401 | ||||||||
Dividends — affiliated |
168,389 | 32,500 | 3,010 | 2,907 | ||||||||||||
Securities lending income — affiliated — net |
4,183 | 8,995 | 8,641 | 158 | ||||||||||||
Foreign taxes withheld |
(1,540,047 | ) | (952,246 | ) | (224,692 | ) | (735,578 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total investment income |
18,542,698 | 28,838,071 | 3,537,238 | 10,451,888 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
EXPENSES |
||||||||||||||||
Investment advisory |
1,786,395 | 7,371,650 | 652,284 | 1,039,788 | ||||||||||||
Commitment costs |
2,288 | — | 37 | 1,220 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
1,788,683 | 7,371,650 | 652,321 | 1,041,008 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income |
16,754,015 | 21,466,421 | 2,884,917 | 9,410,880 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments — unaffiliated |
(12,781,566 | ) | (13,362,264 | ) | (3,348,267 | ) | (4,419,259 | ) | ||||||||
Investments — affiliated |
(45,403 | ) | 4,224 | 4,162 | (20 | ) | ||||||||||
Foreign currency transactions |
(334,013 | ) | (509,226 | ) | (113,564 | ) | (387,672 | ) | ||||||||
Futures contracts |
(630,336 | ) | (1,562,141 | ) | (170,404 | ) | (329,672 | ) | ||||||||
In-kind redemptions — unaffiliated(a) |
(29,230,269 | ) | 63,781,797 | 583,950 | (1,965,836 | ) | ||||||||||
In-kind redemptions — affiliated |
(1,145,518 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
(44,167,105 | ) | 48,352,390 | (3,044,123 | ) | (7,102,459 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments — unaffiliated |
(181,851,660 | ) | (573,443,090 | ) | (73,819,705 | ) | (145,161,584 | ) | ||||||||
Investments — affiliated |
(2,706,599 | ) | (1,211 | ) | (461 | ) | — | |||||||||
Foreign currency translations |
(134,723 | ) | (342,120 | ) | (30,106 | ) | (48,525 | ) | ||||||||
Futures contracts |
(377,665 | ) | (1,161,865 | ) | (135,752 | ) | (395,853 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(185,070,647 | ) | (574,948,286 | ) | (73,986,024 | ) | (145,605,962 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized and unrealized loss |
(229,237,752 | ) | (526,595,896 | ) | (77,030,147 | ) | (152,708,421 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (212,483,737 | ) | $ | (505,129,475 | ) | $ | (74,145,230 | ) | $ | (143,297,541 | ) | ||||
|
|
|
|
|
|
|
|
(a) |
See Note 2 of the Notes to Financial Statements. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
55 |
Statements of Operations (unaudited) (continued)
Six Months Ended September 30, 2022
iShares Global Tech ETF |
iShares Global Utilities ETF |
|||||||
|
||||||||
INVESTMENT INCOME |
||||||||
Dividends — unaffiliated |
$ | 23,361,506 | $ | 3,445,696 | ||||
Dividends — affiliated |
19,186 | 2,175 | ||||||
Non-cash dividends — unaffiliated |
— | 200,653 | ||||||
Securities lending income — affiliated — net |
15,400 | 1,248 | ||||||
Foreign taxes withheld |
(1,238,205 | ) | (170,698 | ) | ||||
IRS compliance fee for foreign withholding tax claims |
— | (510 | ) | |||||
|
|
|
|
|||||
Total investment income |
22,157,887 | 3,478,564 | ||||||
|
|
|
|
|||||
EXPENSES |
||||||||
Investment advisory |
7,533,319 | 380,481 | ||||||
Commitment costs |
10,309 | 17 | ||||||
|
|
|
|
|||||
Total expenses |
7,543,628 | 380,498 | ||||||
|
|
|
|
|||||
Net investment income |
14,614,259 | 3,098,066 | ||||||
|
|
|
|
|||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||
Net realized gain (loss) from: |
||||||||
Investments — unaffiliated |
(6,849,786 | ) | (3,226,109 | ) | ||||
Investments — affiliated |
(3,876 | ) | (151 | ) | ||||
Foreign currency transactions |
(624,208 | ) | (31,938 | ) | ||||
Futures contracts |
(895,146 | ) | (14,812 | ) | ||||
In-kind redemptions — unaffiliated(a) |
423,270,296 | 1,821,975 | ||||||
|
|
|
|
|||||
414,897,280 | (1,451,035 | ) | ||||||
|
|
|
|
|||||
Net change in unrealized appreciation (depreciation) on: |
||||||||
Investments — unaffiliated |
(1,649,139,253 | ) | (31,406,765 | ) | ||||
Investments — affiliated |
(614 | ) | (3 | ) | ||||
Foreign currency translations |
(135,269 | ) | (7,920 | ) | ||||
Futures contracts |
(1,670,718 | ) | (58,323 | ) | ||||
|
|
|
|
|||||
(1,650,945,854 | ) | (31,473,011 | ) | |||||
|
|
|
|
|||||
Net realized and unrealized loss |
(1,236,048,574 | ) | (32,924,046 | ) | ||||
|
|
|
|
|||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (1,221,434,315 | ) | $ | (29,825,980 | ) | ||
|
|
|
|
(a) |
See Note 2 of the Notes to Financial Statements. |
See notes to financial statements.
56 |
2 0 2 2 I S H A R E S S E M I - 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 |
Statements of Changes in Net Assets
iShares Global Comm Services ETF |
iShares Global Consumer Discretionary ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
Six
Months Ended 09/30/22 (unaudited) |
Year Ended 03/31/22 |
Six
Months Ended 09/30/22 (unaudited) |
Year Ended 03/31/22 |
|||||||||||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 1,606,833 | $ | 2,759,004 | $ | 2,036,693 | $ | 2,686,489 | ||||||||||||
Net realized gain (loss) |
(486,438 | ) | 59,321,532 | (6,015,075 | ) | 70,684,647 | ||||||||||||||
Net change in unrealized appreciation (depreciation) |
(69,623,840 | ) | (79,134,138 | ) | (71,224,807 | ) | (98,094,515 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net decrease in net assets resulting from operations |
(68,503,445 | ) | (17,053,602 | ) | (75,203,189 | ) | (24,723,379 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(1,943,469 | ) | (5,514,816 | ) | (1,977,916 | ) | (4,140,498 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
18,622,072 | (57,541,140 | ) | (6,455,726 | ) | (43,016,116 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total decrease in net assets |
(51,824,842 | ) | (80,109,558 | ) | (83,636,831 | ) | (71,879,993 | ) | ||||||||||||
Beginning of period |
240,269,947 | 320,379,505 | 358,864,963 | 430,744,956 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 188,445,105 | $ | 240,269,947 | $ | 275,228,132 | $ | 358,864,963 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
57 |
Statements of Changes in Net Assets (continued)
iShares Global Consumer Staples ETF |
iShares Global Energy ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
Six Months Ended 09/30/22 (unaudited) |
Year Ended 03/31/22 |
Six Months Ended 09/30/22 (unaudited) |
Year Ended 03/31/22 |
|||||||||||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 13,859,293 | $ | 16,123,906 | $ | 62,954,932 | $ | 70,477,381 | ||||||||||||
Net realized gain (loss) |
(9,529,241 | ) | 23,776,879 | 117,607,649 | 113,122,772 | |||||||||||||||
Net change in unrealized appreciation (depreciation) |
(160,478,676 | ) | 6,967,202 | (299,274,049 | ) | 516,085,873 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets resulting from operations |
(156,148,624 | ) | 46,867,987 | (118,711,468 | ) | 699,686,026 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(10,058,458 | ) | (15,010,694 | ) | (44,959,911 | ) | (64,194,482 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
297,832,944 | 464,010,197 | (243,385,726 | ) | 337,330,459 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
131,625,862 | 495,867,490 | (407,057,105 | ) | 972,822,003 | |||||||||||||||
Beginning of period |
1,021,774,923 | 525,907,433 | 2,280,842,719 | 1,308,020,716 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 1,153,400,785 | $ | 1,021,774,923 | $ | 1,873,785,614 | $ | 2,280,842,719 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
58 |
2 0 2 2 I S H A R E S S E M I - 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 |
Statements of Changes in Net Assets (continued)
iShares Global Financials ETF |
iShares Global Healthcare ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
Six Months Ended 09/30/22 (unaudited) |
Year Ended 03/31/22 |
Six Months Ended 09/30/22 (unaudited) |
Year Ended 03/31/22 |
|||||||||||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 16,754,015 | $ | 51,081,838 | $ | 21,466,421 | $ | 41,847,005 | ||||||||||||
Net realized gain (loss) |
(44,167,105 | ) | 76,434,346 | 48,352,390 | 75,337,909 | |||||||||||||||
Net change in unrealized appreciation (depreciation) |
(185,070,647 | ) | (57,062,400 | ) | (574,948,286 | ) | 301,309,666 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets resulting from operations |
(212,483,737 | ) | 70,453,784 | (505,129,475 | ) | 418,494,580 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(19,368,809 | ) | (47,722,673 | ) | (23,730,127 | ) | (39,505,134 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
(261,206,137 | ) | 666,670,761 | 480,166,935 | 407,814,541 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
(493,058,683 | ) | 689,401,872 | (48,692,667 | ) | 786,803,987 | ||||||||||||||
Beginning of period |
1,162,145,321 | 472,743,449 | 3,492,005,315 | 2,705,201,328 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 669,086,638 | $ | 1,162,145,321 | $ | 3,443,312,648 | $ | 3,492,005,315 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
59 |
Statements of Changes in Net Assets (continued)
iShares Global Industrials ETF |
iShares Global Materials ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
Six Months Ended 09/30/22 (unaudited) |
Year Ended 03/31/22 |
Six Months Ended 09/30/22 (unaudited) |
Year Ended 03/31/22 |
|||||||||||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 2,884,917 | $ | 5,417,472 | $ | 9,410,880 | $ | 26,924,199 | ||||||||||||
Net realized gain (loss) |
(3,044,123 | ) | 15,679,431 | (7,102,459 | ) | 92,748,979 | ||||||||||||||
Net change in unrealized appreciation (depreciation) |
(73,986,024 | ) | (14,934,079 | ) | (145,605,962 | ) | (43,739,735 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets resulting from operations |
(74,145,230 | ) | 6,162,824 | (143,297,541 | ) | 75,933,443 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(3,446,052 | ) | (6,438,398 | ) | (17,208,535 | ) | (25,613,809 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net decrease in net assets derived from capital share transactions |
(42,119,704 | ) | (45,709,099 | ) | (305,356,638 | ) | (46,291,020 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
(119,710,986 | ) | (45,984,673 | ) | (465,862,714 | ) | 4,028,614 | |||||||||||||
Beginning of period |
376,481,114 | 422,465,787 | 727,027,564 | 722,998,950 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 256,770,128 | $ | 376,481,114 | $ | 261,164,850 | $ | 727,027,564 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
60 |
2 0 2 2 I S H A R E S S E M I - 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 |
Statements of Changes in Net Assets (continued)
iShares Global Tech ETF |
iShares Global Utilities ETF |
|||||||||||||||
Six Months Ended |
Year Ended 03/31/22 |
Six Months Ended |
Year Ended 03/31/22 |
|||||||||||||
|
||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||
OPERATIONS |
||||||||||||||||
Net investment income |
$ | 14,614,259 | $ | 26,880,272 | $ | 3,098,066 | $ | 4,609,122 | ||||||||
Net realized gain (loss) |
414,897,280 | 1,095,104,060 | (1,451,035 | ) | (1,772,830 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) |
(1,650,945,854 | ) | (517,913,046 | ) | (31,473,011 | ) | 13,096,496 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in net assets resulting from operations |
(1,221,434,315 | ) | 604,071,286 | (29,825,980 | ) | 15,932,788 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(12,275,060 | ) | (32,243,037 | ) | (2,547,249 | ) | (4,448,043 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
(994,212,034 | ) | (616,406,539 | ) | (2,750,486 | ) | 17,649,357 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
||||||||||||||||
Total increase (decrease) in net assets |
(2,227,921,409 | ) | (44,578,290 | ) | (35,123,715 | ) | 29,134,102 | |||||||||
Beginning of period |
5,001,963,077 | 5,046,541,367 | 180,401,669 | 151,267,567 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
End of period |
$ | 2,774,041,668 | $ | 5,001,963,077 | $ | 145,277,954 | $ | 180,401,669 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
61 |
(For a share outstanding throughout each period)
iShares Global Comm Services ETF | ||||||||||||||||||||||||
Six Months Ended 09/30/22 (unaudited) |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
Year Ended 03/31/18 |
|||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 73.93 | $ | 80.09 | $ | 51.81 | $ | 56.22 | $ | 57.19 | $ | 59.45 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(a) |
0.42 | 0.74 | (b) | 0.66 | 0.78 | 1.82 | 2.21 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(21.41 | ) | (5.42 | ) | 28.33 | (3.85 | ) | (0.62 | ) | (2.41 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
(20.99 | ) | (4.68 | ) | 28.99 | (3.07 | ) | 1.20 | (0.20 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions from net investment income(d) |
(0.59 | ) | (1.48 | ) | (0.71 | ) | (1.34 | ) | (2.17 | ) | (2.06 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 52.35 | $ | 73.93 | $ | 80.09 | $ | 51.81 | $ | 56.22 | $ | 57.19 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(e) |
||||||||||||||||||||||||
Based on net asset value |
(28.55 | )%(f) | (6.03 | )%(b) | 56.20 | % | (5.70 | )% | 2.37 | % | (0.46 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||||||
Total expenses |
0.41 | %(h) | 0.43 | % | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
N/A | 0.41 | % | N/A | N/A | N/A | N/A | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
1.32 | %(h) | 0.89 | %(b) | 0.96 | % | 1.34 | % | 3.28 | % | 3.71 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 188,445 | $ | 240,270 | $ | 320,380 | $ | 225,363 | $ | 236,105 | $ | 400,339 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(i) |
6 | % | 18 | % | 13 | % | 24 | % | 79 | % | 3 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2022: |
• |
Net investment income per share by $0.10. |
• |
Total return by 0.15%. |
• |
Ratio of net investment income to average net assets by 0.12%. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
62 |
2 0 2 2 I S H A R E S S E M I - 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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Consumer Discretionary ETF | ||||||||||||||||||||||||
Six Months Ended 09/30/22 (unaudited) |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
Year Ended 03/31/18 |
|||||||||||||||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 156.03 | $ | 162.55 | $ | 95.12 | $ | 113.27 | $ | 111.45 | $ | 96.61 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(a) |
0.88 | 1.02 | (b) | 1.06 | 1.75 | 1.70 | 1.42 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(33.96 | ) | (5.95 | ) | 67.38 | (18.03 | ) | 1.87 | 14.79 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
(33.08 | ) | (4.93 | ) | 68.44 | (16.28 | ) | 3.57 | 16.21 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions from net investment income(d) |
(0.63 | ) | (1.59 | ) | (1.01 | ) | (1.87 | ) | (1.75 | ) | (1.37 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 122.32 | $ | 156.03 | $ | 162.55 | $ | 95.12 | $ | 113.27 | $ | 111.45 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(e) |
||||||||||||||||||||||||
Based on net asset value |
(21.24 | )%(f) | (3.13 | )%(b) | 72.21 | % | (14.71 | )%(g) | 3.32 | % | 16.81 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets(h) |
||||||||||||||||||||||||
Total expenses |
0.41 | %(i) | 0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
N/A | 0.40 | % | N/A | N/A | N/A | N/A | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
1.27 | %(i) | 0.60 | %(b) | 0.75 | % | 1.47 | % | 1.51 | % | 1.35 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 275,228 | $ | 358,865 | $ | 430,745 | $ | 156,949 | $ | 203,889 | $ | 278,617 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(j) |
8 | % | 12 | % | 34 | % | 17 | % | 30 | % | 6 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2022: |
• |
Net investment income per share by $0.03. |
• |
Total return by 0.02%. |
• |
Ratio of net investment income to average net assets by 0.02%. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Includes payment received from an affiliate, which had no impact on the Fund’s total return. |
(h) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(i) |
Annualized. |
(j) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
63 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Consumer Staples ETF | ||||||||||||||||||||||||
|
Six Months Ended 09/30/22 (unaudited) |
|
|
Year Ended 03/31/22 |
|
|
Year Ended 03/31/21 |
|
|
Year Ended 03/31/20 |
|
|
Year Ended 03/31/19 |
(a) |
|
Year Ended 03/31/18 |
(a) | |||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 62.11 | $ | 58.11 | $ | 47.96 | $ | 51.67 | $ | 50.14 | $ | 49.65 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(b) |
0.74 | (c) | 1.37 | 1.34 | 1.18 | 1.20 | 1.12 | |||||||||||||||||
Net realized and unrealized gain (loss)(d) |
(8.60 | ) | 4.09 | 10.17 | (3.69 | ) | 1.70 | 0.52 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
(7.86 | ) | 5.46 | 11.51 | (2.51 | ) | 2.90 | 1.64 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions from net investment income(e) |
(0.60 | ) | (1.46 | ) | (1.36 | ) | (1.20 | ) | (1.37 | ) | (1.15 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 53.65 | $ | 62.11 | $ | 58.11 | $ | 47.96 | $ | 51.67 | $ | 50.14 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(f) |
||||||||||||||||||||||||
Based on net asset value |
(12.74 | )%(c)(g) | 9.42 | % | 24.21 | % | (5.10 | )% | 6.07 | % | 3.19 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets(h) |
||||||||||||||||||||||||
Total expenses |
0.41 | %(i) | 0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.41 | %(i) | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
2.50 | %(c)(i) | 2.22 | % | 2.46 | % | 2.21 | % | 2.43 | % | 2.18 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 1,153,401 | $ | 1,021,775 | $ | 525,907 | $ | 683,380 | $ | 738,832 | $ | 536,507 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(j) |
5 | % | 8 | % | 7 | % | 7 | % | 7 | % | 5 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Per share amounts reflect a two-for-one stock split effective after the close of trading on May 1, 2018. |
(b) |
Based on average shares outstanding. |
(c) |
Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the six months ended September 30, 2022: |
• |
Net investment income per share by $0.00. |
• |
Total return by 0.00%. |
• |
Ratio of net investment income to average net assets by 0.01%. |
(d) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) |
Where applicable, assumes the reinvestment of distributions. |
(g) |
Not annualized. |
(h) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(i) |
Annualized. |
(j) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
64 |
2 0 2 2 I S H A R E S S E M I - 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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Energy ETF | ||||||||||||||||||||||||
|
Six Months Ended 09/30/22 (unaudited) |
|
|
Year Ended 03/31/22 |
|
|
Year Ended 03/31/21 |
|
|
Year Ended 03/31/20 |
|
|
Year Ended 03/31/19 |
|
|
Year Ended 03/31/18 |
| |||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 36.12 | $ | 24.63 | $ | 17.06 | $ | 33.70 | $ | 33.91 | $ | 33.19 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(a) |
1.06 | (b) | 1.22 | 0.94 | 1.13 | 1.11 | 1.14 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(3.11 | ) | 11.37 | 7.62 | (15.61 | ) | (0.29 | ) | 0.66 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
(2.05 | ) | 12.59 | 8.56 | (14.48 | ) | 0.82 | 1.80 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions from net investment income(d) |
(0.76 | ) | (1.10 | ) | (0.99 | ) | (2.16 | ) | (1.03 | ) | (1.08 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 33.31 | $ | 36.12 | $ | 24.63 | $ | 17.06 | $ | 33.70 | $ | 33.91 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(e) |
||||||||||||||||||||||||
Based on net asset value |
(6.05 | )%(b)(f) | 52.61 | % | 51.36 | % | (45.73 | )% | 2.56 | % | 5.56 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||||||
Total expenses |
0.43 | %(h)(i) | 0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
0.41 | %(h) | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
5.84 | %(b)(h) | 4.33 | % | 4.65 | % | 3.78 | % | 3.17 | % | 3.39 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 1,873,786 | $ | 2,280,843 | $ | 1,308,021 | $ | 616,818 | $ | 1,031,245 | $ | 1,154,552 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(j) |
5 | % | 6 | % | 5 | % | 7 | % | 6 | % | 4 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the six months ended September 30, 2022: |
• |
Net investment income per share by $0.04. |
• |
Total return by 0.11%. |
• |
Ratio of net investment income to average net assets by 0.20%. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Professional fees were not annualized in the calculation of the expense ratio. If this expense was annualized, the total expenses would have been 0.44%. |
(j) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
65 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Financials ETF | ||||||||||||||||||||||||
|
Six Months Ended 09/30/22 (unaudited) |
|
|
Year Ended 03/31/22 |
|
|
Year Ended 03/31/21 |
|
|
Year Ended 03/31/20 |
|
|
Year Ended 03/31/19 |
|
|
Year Ended 03/31/18 |
| |||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 79.60 | $ | 73.29 | $ | 47.23 | $ | 61.61 | $ | 68.93 | $ | 60.82 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(a) |
1.36 | 1.65 | (b) | 1.36 | 1.71 | 1.84 | 1.47 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(18.04 | ) | 6.01 | 26.09 | (14.12 | ) | (7.38 | ) | 8.12 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
(16.68 | ) | 7.66 | 27.45 | (12.41 | ) | (5.54 | ) | 9.59 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions from net investment income(d) |
(1.54 | ) | (1.35 | ) | (1.39 | ) | (1.97 | ) | (1.78 | ) | (1.48 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 61.38 | $ | 79.60 | $ | 73.29 | $ | 47.23 | $ | 61.61 | $ | 68.93 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(e) |
||||||||||||||||||||||||
Based on net asset value |
(21.19 | )%(f) | 10.48 | %(b) | 58.99 | % | (20.99 | )%(g) | (8.02 | )% | 15.91 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets(h) |
||||||||||||||||||||||||
Total expenses |
0.41 | %(i) | 0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
N/A | 0.40 | % | 0.43 | % | N/A | 0.46 | % | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
3.85 | %(i) | 2.07 | %(b) | 2.28 | % | 2.66 | % | 2.84 | % | 2.19 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 669,087 | $ | 1,162,145 | $ | 472,743 | $ | 203,073 | $ | 341,918 | $ | 634,120 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(j) |
2 | % | 12 | % | 4 | % | 7 | % | 7 | % | 4 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2022: |
• |
Net investment income per share by $0.01. |
• |
Total return by 0.02%. |
• |
Ratio of net investment income to average net assets by 0.01%. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Includes payment received from an affiliate, which had no impact on the Fund’s total return. |
(h) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(i) |
Annualized. |
(j) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
66 |
2 0 2 2 I S H A R E S S E M I - 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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Healthcare ETF | ||||||||||||||||||||||||
|
Six Months Ended 09/30/22 (unaudited) |
|
|
Year Ended 03/31/22 |
|
|
Year Ended 03/31/21 |
|
|
Year Ended 03/31/20 |
|
|
Year Ended 03/31/19 |
(a) |
|
Year Ended 03/31/18 |
(a) | |||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 87.41 | $ | 76.96 | $ | 60.95 | $ | 61.13 | $ | 55.61 | $ | 51.44 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(b) |
0.49 | 1.07 | 1.02 | 0.96 | 0.92 | 0.79 | ||||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(12.00 | ) | 10.39 | 15.96 | (0.16 | ) | 5.80 | 4.20 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
(11.51 | ) | 11.46 | 16.98 | 0.80 | 6.72 | 4.99 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions from net investment income(d) |
(0.55 | ) | (1.01 | ) | (0.97 | ) | (0.98 | ) | (1.20 | ) | (0.82 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 75.35 | $ | 87.41 | $ | 76.96 | $ | 60.95 | $ | 61.13 | $ | 55.61 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(e) |
||||||||||||||||||||||||
Based on net asset value |
(13.21 | )%(f) | 14.94 | % | 28.03 | % | 1.23 | % | 12.29 | % | 9.70 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||||||
Total expenses |
0.41 | %(h) | 0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
1.20 | %(h) | 1.27 | % | 1.41 | % | 1.52 | % | 1.55 | % | 1.42 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 3,443,313 | $ | 3,492,005 | $ | 2,705,201 | $ | 1,947,392 | $ | 2,121,287 | $ | 1,568,110 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(i) |
2 | % | 4 | % | 5 | % | 5 | % | 8 | % | 4 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Per share amounts reflect a two-for-one stock split effective after the close of trading on May 1, 2018. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
67 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Industrials ETF | ||||||||||||||||||||||||
|
Six Months Ended 09/30/22 (unaudited) |
|
|
Year Ended 03/31/22 |
|
|
Year Ended 03/31/21 |
|
|
Year Ended 03/31/20 |
|
|
Year Ended 03/31/19 |
|
|
Year Ended 03/31/18 |
| |||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 115.84 | $ | 115.74 | $ | 71.50 | $ | 88.88 | $ | 91.22 | $ | 80.47 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(a) |
0.94 | 1.53 | (b) | 1.32 | 1.61 | 1.65 | 1.43 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(25.54 | ) | 0.32 | 44.27 | (17.32 | ) | (2.27 | ) | 10.69 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
(24.60 | ) | 1.85 | 45.59 | (15.71 | ) | (0.62 | ) | 12.12 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions from net investment income(d) |
(1.15 | ) | (1.75 | ) | (1.35 | ) | (1.67 | ) | (1.72 | ) | (1.37 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 90.09 | $ | 115.84 | $ | 115.74 | $ | 71.50 | $ | 88.88 | $ | 91.22 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(e) |
||||||||||||||||||||||||
Based on net asset value |
(21.36 | )%(f) | 1.54 | %(b) | 64.27 | % | (18.08 | )% | (0.59 | )% | 15.14 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||||||
Total expenses |
0.41 | %(h) | 0.41 | % | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
N/A | 0.40 | % | 0.43 | % | N/A | N/A | N/A | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
1.82 | %(h) | 1.27 | %(b) | 1.34 | % | 1.75 | % | 1.87 | % | 1.61 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 256,770 | $ | 376,481 | $ | 422,466 | $ | 146,580 | $ | 217,744 | $ | 360,338 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(i) |
3 | % | 7 | % | 8 | % | 5 | % | 5 | % | 6 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2022: |
• |
Net investment income per share by $0.05. |
• |
Total return by 0.05%. |
• |
Ratio of net investment income to average net assets by 0.04%. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
68 |
2 0 2 2 I S H A R E S S E M I - 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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Materials ETF | ||||||||||||||||||||||||
|
Six Months Ended 09/30/22 (unaudited) |
|
|
Year Ended 03/31/22 |
|
|
Year Ended 03/31/21 |
|
|
Year Ended 03/31/20 |
|
|
Year Ended 03/31/19 |
|
|
Year Ended 03/31/18 |
| |||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 93.81 | $ | 86.59 | $ | 49.67 | $ | 64.22 | $ | 67.34 | $ | 59.25 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(a) |
1.52 | 3.16 | (b) | 2.07 | 1.54 | 1.91 | 1.33 | |||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(25.23 | ) | 7.23 | 35.84 | (13.63 | ) | (3.44 | ) | 7.99 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
(23.71 | ) | 10.39 | 37.91 | (12.09 | ) | (1.53 | ) | 9.32 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions from net investment income(d) |
(2.26 | ) | (3.17 | ) | (0.99 | ) | (2.46 | ) | (1.59 | ) | (1.23 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 67.84 | $ | 93.81 | $ | 86.59 | $ | 49.67 | $ | 64.22 | $ | 67.34 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(e) |
||||||||||||||||||||||||
Based on net asset value |
(25.76 | )%(f) | 12.19 | %(b) | 76.78 | % | (19.66 | )% | (2.14 | )% | 15.84 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||||||
Total expenses |
0.41 | %(h) | 0.40 | % | 0.43 | % | 0.45 | % | 0.46 | % | 0.47 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
N/A | 0.40 | % | N/A | N/A | 0.46 | % | N/A | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
3.71 | %(h) | 3.48 | %(b) | 2.76 | % | 2.43 | % | 2.91 | % | 2.02 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 261,165 | $ | 727,028 | $ | 722,999 | $ | 129,132 | $ | 208,704 | $ | 400,667 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(i) |
5 | % | 6 | % | 4 | % | 12 | % | 11 | % | 8 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2022: |
• |
Net investment income per share by $0.01. |
• |
Total return by (0.01)%. |
• |
Ratio of net investment income to average net assets by 0.01%. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
69 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Tech ETF | ||||||||||||||||||||||||
|
Six Months Ended 09/30/22 (unaudited) |
|
|
Year Ended 03/31/22 |
(a) |
|
Year Ended 03/31/21 |
(a) |
|
Year Ended 03/31/20 |
(a) |
|
Year Ended 03/31/19 |
(a) |
|
Year Ended 03/31/18 |
(a) | |||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 57.86 | $ | 51.13 | $ | 30.49 | $ | 28.48 | $ | 26.31 | $ | 20.68 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(b) |
0.20 | 0.29 | (c) | 0.33 | 0.38 | 0.30 | 0.20 | |||||||||||||||||
Net realized and unrealized gain (loss)(d) |
(15.62 | ) | 6.81 | 20.62 | 2.00 | 2.10 | 5.67 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
(15.42 | ) | 7.10 | 20.95 | 2.38 | 2.40 | 5.87 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions from net investment income(e) |
(0.18 | ) | (0.37 | ) | (0.31 | ) | (0.37 | ) | (0.23 | ) | (0.24 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 42.26 | $ | 57.86 | $ | 51.13 | $ | 30.49 | $ | 28.48 | $ | 26.31 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(f) |
||||||||||||||||||||||||
Based on net asset value |
(26.71 | )%(g) | 13.89 | %(c) | 68.97 | % | 8.33 | % | 9.19 | % | 28.49 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets(h) |
||||||||||||||||||||||||
Total expenses |
0.41 | %(i) | 0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
N/A | 0.40 | % | 0.43 | % | N/A | 0.46 | % | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
0.80 | %(i) | 0.50 | %(c) | 0.75 | % | 1.21 | % | 1.09 | % | 0.82 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 2,774,042 | $ | 5,001,963 | $ | 5,046,541 | $ | 2,752,872 | $ | 2,819,178 | $ | 1,538,998 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(j) |
2 | % | 7 | % | 4 | % | 7 | % | 17 | % | 5 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Per share amounts reflect a six-for-one stock split effective after the close of trading on July 16, 2021. |
(b) |
Based on average shares outstanding. |
(c) |
Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended March 31, 2022: |
• |
Net investment income per share by $0.00. |
• |
Total return by 0.01%. |
• |
Ratio of net investment income to average net assets by 0.00%. |
(d) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) |
Where applicable, assumes the reinvestment of distributions. |
(g) |
Not annualized. |
(h) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(i) |
Annualized. |
(j) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
70 |
2 0 2 2 I S H A R E S S E M I - 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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Global Utilities ETF | ||||||||||||||||||||||||
|
Six Months Ended 09/30/22 (unaudited) |
|
|
Year Ended 03/31/22 |
|
|
Year Ended 03/31/21 |
|
|
Year Ended 03/31/20 |
|
|
Year Ended 03/31/19 |
|
|
Year Ended 03/31/18 |
| |||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 65.60 | $ | 60.51 | $ | 50.71 | $ | 54.08 | $ | 48.78 | $ | 48.09 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(a) |
1.05 | 1.81 | 1.71 | 1.62 | 1.78 | 1.79 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) |
(10.98 | ) | 5.08 | 9.68 | (2.98 | ) | 5.07 | 0.69 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
(9.93 | ) | 6.89 | 11.39 | (1.36 | ) | 6.85 | 2.48 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions from net investment income(c) |
(0.85 | ) | (1.80 | ) | (1.59 | ) | (2.01 | ) | (1.55 | ) | (1.79 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 54.82 | $ | 65.60 | $ | 60.51 | $ | 50.71 | $ | 54.08 | $ | 48.78 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(d) |
||||||||||||||||||||||||
Based on net asset value |
(15.29 | )%(e) | 11.59 | % | 22.70 | % | (2.84 | )% | 14.40 | % | 5.13 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets(f) |
||||||||||||||||||||||||
Total expenses |
0.41 | %(g) | 0.42 | % | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses excluding professional fees for foreign withholding tax claims |
N/A | N/A | N/A | N/A | 0.46 | % | N/A | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
3.35 | %(g) | 2.91 | % | 3.03 | % | 2.87 | % | 3.53 | % | 3.58 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 145,278 | $ | 180,402 | $ | 151,268 | $ | 152,123 | $ | 208,222 | $ | 131,708 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(h) |
5 | % | 9 | % | 7 | % | 6 | % | 8 | % | 4 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Not annualized. |
(f) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
71 |
Notes to Financial Statements (unaudited)
1. |
ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):
iShares ETF |
Diversification Classification | |
Global Comm Services |
Non-diversified | |
Global Consumer Discretionary |
Diversified | |
Global Consumer Staples |
Diversified | |
Global Energy |
Non-diversified | |
Global Financials |
Diversified | |
Global Healthcare |
Diversified | |
Global Industrials |
Diversified | |
Global Materials |
Diversified | |
Global Tech |
Non-diversified | |
Global Utilities |
Diversified |
2. |
SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.
Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of September 30, 2022, if any, are disclosed in the Statements of Assets and Liabilities.
The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
72 |
2 0 2 2 I S H A R E S S E M I - 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 |
Notes to Financial Statements (unaudited) (continued)
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. |
INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• |
Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• |
Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
• |
Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded. |
Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• |
Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access; |
• |
Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and |
• |
Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies
N O T E S T O F I N A N C I A L S T A T E M E N T S |
73 |
Notes to Financial Statements (unaudited) (continued)
or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. |
SECURITIES AND OTHER INVESTMENTS |
Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
iShares ETF and Counterparty | |
Securities Loaned at Value |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received, at Fair Value |
(a) |
Net Amount | ||||||
Global Comm Services |
||||||||||||||||
J.P. Morgan Securities LLC |
$ | 1,661,371 | $ | (1,661,371 | ) | $ | — | $ | — | |||||||
Morgan Stanley |
217,030 | (206,288 | ) | — | 10,742 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 1,878,401 | $ | (1,867,659 | ) | $ | — | $ | 10,742 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Global Consumer Discretionary |
||||||||||||||||
BofA Securities, Inc. |
$ | 1,539,555 | $ | (1,539,555 | ) | $ | — | $ | — | |||||||
ING Financial Markets LLC |
9,678 | (9,678 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 1,549,233 | $ | (1,549,233 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Global Consumer Staples |
||||||||||||||||
Barclays Bank PLC |
$ | 416,183 | $ | (416,183 | ) | $ | — | $ | — | |||||||
Citigroup Global Markets, Inc. |
36,036 | (36,036 | ) | — | — | |||||||||||
Jefferies LLC |
608,134 | (608,134 | ) | — | — | |||||||||||
SG Americas Securities LLC |
2,220,198 | (2,220,198 | ) | — | — | |||||||||||
UBS AG |
8,190 | (8,190 | ) | — | — | |||||||||||
Wells Fargo Bank N.A. |
43,524 | (43,524 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 3,332,265 | $ | (3,332,265 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Global Financials |
||||||||||||||||
Morgan Stanley |
$ | 231,334 | $ | (231,334 | ) | $ | — | $ | — | |||||||
SG Americas Securities LLC |
5,687 | (5,687 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 237,021 | $ | (237,021 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Global Healthcare |
||||||||||||||||
Goldman Sachs & Co. LLC |
$ | 1,401,319 | $ | (1,401,319 | ) | $ | — | $ | — | |||||||
RBC Capital Markets LLC |
123,040 | (123,040 | ) | — | — | |||||||||||
UBS AG |
1,867,250 | (1,867,250 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 3,391,609 | $ | (3,391,609 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
74 |
2 0 2 2 I S H A R E S S E M I - 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 |
Notes to Financial Statements (unaudited) (continued)
iShares ETF and Counterparty | |
Securities Loaned at Value |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received, at Fair Value |
(a) |
Net Amount | ||||||
Global Industrials |
||||||||||||||||
BNP Paribas SA |
$ | 3,422,014 | $ | (3,422,014 | ) | $ | — | $ | — | |||||||
BofA Securities, Inc. |
495,138 | (495,138 | ) | — | — | |||||||||||
Scotia Capital (USA), Inc. |
226,845 | (226,845 | ) | — | — | |||||||||||
UBS Securities LLC |
467,001 | (467,001 | ) | — | — | |||||||||||
Wells Fargo Bank N.A. |
203,910 | (203,910 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 4,814,908 | $ | (4,814,908 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Global Tech |
||||||||||||||||
BNP Paribas SA |
$ | 1,350,733 | $ | (1,350,733 | ) | $ | — | $ | — | |||||||
BofA Securities, Inc. |
4,866,747 | (4,866,747 | ) | — | — | |||||||||||
Goldman Sachs & Co. LLC |
2,664,750 | (2,664,750 | ) | — | — | |||||||||||
Morgan Stanley |
640,147 | (640,147 | ) | — | — | |||||||||||
SG Americas Securities LLC |
3,177,821 | (3,177,821 | ) | — | — | |||||||||||
UBS AG |
13,524,255 | (13,524,255 | ) | — | — | |||||||||||
UBS Securities LLC |
968,415 | (968,415 | ) | — | — | |||||||||||
Wells Fargo Bank N.A. |
138,345 | (138,345 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 27,331,213 | $ | (27,331,213 | ) | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
(a) |
Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. |
DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
6. |
INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
N O T E S T O F I N A N C I A L S T A T E M E N T S |
75 |
Notes to Financial Statements (unaudited) (continued)
For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds as follows:
Aggregate Average Daily Net Assets
|
Investment Advisory Fees
|
|||
First $10 billion |
0.4800 | % | ||
Over $10 billion, up to and including $20 billion |
0.4300 | |||
Over $20 billion, up to and including $30 billion |
0.3800 | |||
Over $30 billion, up to and including $40 billion |
0.3420 | |||
Over $40 billion
|
|
0.3078
|
|
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each of iShares Global Comm Services ETF and iShares Global Tech ETF (the “Group 1 Funds”), retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
Pursuant to the current securities lending agreement, each of iShares Global Consumer Discretionary ETF, iShares Global Consumer Staples ETF, iShares Global Energy ETF, iShares Global Financials ETF, iShares Global Healthcare ETF, iShares Global Industrials ETF, iShares Global Materials ETF and iShares Global Utilities ETF (the “Group 2 Funds”), retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds a specified threshold: (1) each Group 1 Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees, and (2) each Group 2 Fund will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the six months ended September 30, 2022, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF
|
Amounts
|
|||
Global Comm Services |
$ | 1,084 | ||
Global Consumer Discretionary |
3,094 | |||
Global Consumer Staples |
814 | |||
Global Energy |
840 | |||
Global Financials |
1,299 | |||
Global Healthcare |
3,685 | |||
Global Industrials |
2,623 | |||
Global Materials |
68 | |||
Global Tech |
6,444 | |||
Global Utilities |
294 |
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
76 |
2 0 2 2 I S H A R E S S E M I - 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 |
Notes to Financial Statements (unaudited) (continued)
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended September 30, 2022, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF
|
Purchases
|
Sales
|
Net Realized Gain (Loss)
|
|||||||||
Global Comm Services |
$ |
1,828,403 |
|
$ |
4,096,850 |
|
$ |
(2,416,237 |
) | |||
Global Consumer Discretionary |
4,362,783 | 7,889,546 | (3,878,260 | ) | ||||||||
Global Consumer Staples |
14,284,247 | 13,179,351 | (2,363,204 | ) | ||||||||
Global Energy |
15,708,847 | 17,705,081 | (3,038,778 | ) | ||||||||
Global Financials |
1,109,650 | 4,556,346 | (1,515,729 | ) | ||||||||
Global Healthcare |
7,664,412 | 12,043,753 | (3,500,218 | ) | ||||||||
Global Industrials |
2,282,849 | 4,096,463 | (9,621 | ) | ||||||||
Global Materials |
372,972 | 1,528,359 | (280,521 | ) | ||||||||
Global Tech |
12,513,337 | 5,089,476 | (2,885,369 | ) | ||||||||
Global Utilities
|
|
1,676,231
|
|
|
2,265,245
|
|
|
(178,404
|
)
|
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the Statements of Operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. |
PURCHASES AND SALES |
For the six months ended September 30, 2022, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:
iShares ETF
|
Purchases
|
Sales
|
||||||
Global Comm Services |
$ |
29,137,464 |
|
$ |
14,648,064 |
| ||
Global Consumer Discretionary |
39,825,173 | 25,955,067 | ||||||
Global Consumer Staples |
77,289,101 | 59,602,263 | ||||||
Global Energy |
136,156,992 | 97,133,426 | ||||||
Global Financials |
20,448,388 | 38,882,534 | ||||||
Global Healthcare |
96,230,246 | 72,130,899 | ||||||
Global Industrials |
10,034,098 | 12,663,847 | ||||||
Global Materials |
26,675,832 | 39,123,260 | ||||||
Global Tech |
60,418,294 | 159,385,121 | ||||||
Global Utilities
|
|
10,299,195
|
|
|
9,482,142
|
|
For the six months ended September 30, 2022, in-kind transactions were as follows:
iShares ETF
|
In-kind
|
In-kind Sales
|
||||||
Global Comm Services |
$ |
137,473,811 |
|
$ |
133,580,481 |
| ||
Global Consumer Discretionary |
184,503,228 | 204,650,229 | ||||||
Global Consumer Staples |
282,054,250 | — | ||||||
Global Energy |
233,408,080 | 504,418,411 | ||||||
Global Financials |
— | 243,662,336 | ||||||
Global Healthcare |
595,938,041 | 144,877,499 | ||||||
Global Industrials |
14,181,739 | 54,520,841 | ||||||
Global Materials |
8,779,330 | 301,339,204 | ||||||
Global Tech |
115,292,684 | 1,008,439,758 | ||||||
Global Utilities
|
|
31,805,563
|
|
|
34,735,476
|
|
8. |
INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
77 |
Notes to Financial Statements (unaudited) (continued)
Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2022, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of March 31, 2022, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF |
Amounts
|
|||
Global Comm Services |
$ | 103,298,108 | ||
Global Consumer Discretionary |
23,915,694 | |||
Global Consumer Staples |
18,264,523 | |||
Global Energy |
194,620,291 | |||
Global Financials |
95,814,627 | |||
Global Healthcare |
67,956,469 | |||
Global Industrials |
24,121,065 | |||
Global Materials |
89,618,604 | |||
Global Tech |
46,874,482 | |||
Global Utilities
|
|
42,422,177
|
|
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of September 30, 2022, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF
|
Tax Cost
|
Gross Unrealized
|
Gross Unrealized
|
Net Unrealized
|
||||||||||||
Global Comm Services |
$ |
272,498,148 |
|
$ |
1,893,332 |
|
$ |
(84,011,073 |
) |
$ |
(82,117,741 |
) | ||||
Global Consumer Discretionary |
370,690,730 | 2,619,467 | (97,176,596 | ) | (94,557,129 | ) | ||||||||||
Global Consumer Staples |
1,269,858,101 | 36,759,901 | (155,611,229 | ) | (118,851,328 | ) | ||||||||||
Global Energy |
1,958,540,620 | 140,734,653 | (229,043,439 | ) | (88,308,786 | ) | ||||||||||
Global Financials |
899,386,802 | 4,359,144 | (237,362,696 | ) | (233,003,552 | ) | ||||||||||
Global Healthcare |
3,144,519,548 | 579,730,468 | (286,871,476 | ) | 292,858,992 | |||||||||||
Global Industrials |
349,275,301 | 4,838,430 | (93,482,295 | ) | (88,643,865 | ) | ||||||||||
Global Materials |
376,451,144 | 6,112,041 | (123,116,346 | ) | (117,004,305 | ) | ||||||||||
Global Tech |
2,844,844,530 | 337,185,667 | (385,085,469 | ) | (47,899,802 | ) | ||||||||||
Global Utilities
|
|
180,823,230
|
|
|
2,925,044
|
|
|
(38,531,513
|
)
|
|
(35,606,469
|
)
|
9. |
LINE OF CREDIT |
The iShares Global Comm Services ETF, iShares Global Consumer Discretionary ETF, iShares Global Consumer Staples ETF, iShares Global Energy ETF, iShares Global Financials ETF, iShares Global Industrials ETF, iShares Global Materials ETF, iShares Global Tech ETF and iShares Global Utilities ETF, along with certain other iShares funds (“Participating Funds”), are parties to a $800 million credit agreement (“Syndicated Credit Agreement”) with a group of lenders, which expires on August 11, 2023. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Syndicated Credit Agreement. The Syndicated Credit Agreement has the following terms: a commitment fee of 0.15% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) Daily Simple Secured Overnight Financing Rate (“SOFR”) plus 0.10% and 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Syndicated Credit Agreement.
During the six months ended September 30, 2022, the Funds did not borrow under the Syndicated Credit Agreement.
10. |
PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
78 |
2 0 2 2 I S H A R E S S E M I - 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 |
Notes to Financial Statements (unaudited) (continued)
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Market Risk: An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. Although vaccines have been developed and approved for use by various governments, the duration of this pandemic and its effects cannot be determined with certainty.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
Certain Funds invest a significant portion of their assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries as well as acts of war in the region. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Funds’ investments.
Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. The United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching. In addition, Russia launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting future market disruptions in the region are impossible to predict, but could be significant and have a severe adverse effect on the region, including significant negative impacts on the economy and the markets for certain securities and commodities, such as oil and natural gas, as well as other sectors.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
79 |
Notes to Financial Statements (unaudited) (continued)
Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
LIBOR Transition Risk: The United Kingdom’s Financial ConductAuthority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates ceased to be published or no longer are representative of the underlying market they seek to measure after December 31, 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.
11. |
CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
|
||||||||||||||||
Six Months Ended 09/30/22
|
Year Ended 03/31/22
|
|||||||||||||||
|
|
|
|
|||||||||||||
iShares ETF
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||
|
||||||||||||||||
Global Comm Services |
||||||||||||||||
Shares sold |
2,600,000 | $ | 155,399,447 | 2,400,000 | $ | 180,066,363 | ||||||||||
Shares redeemed |
(2,250,000 | ) | (136,777,375 | ) | (3,150,000 | ) | (237,607,503 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
350,000 | $ | 18,622,072 | (750,000 | ) | $ | (57,541,140 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Global Consumer Discretionary |
||||||||||||||||
Shares sold |
1,550,000 | $ | 203,996,878 | 1,350,000 | $ | 226,608,040 | ||||||||||
Shares redeemed |
(1,600,000 | ) | (210,452,604 | ) | (1,700,000 | ) | (269,624,156 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(50,000 | ) | $ | (6,455,726 | ) | (350,000 | ) | $ | (43,016,116 | ) | |||||||
|
|
|
|
|
|
|
|
|||||||||
Global Consumer Staples |
||||||||||||||||
Shares sold |
5,050,000 | $ | 297,832,944 | 9,150,000 | $ | 571,394,685 | ||||||||||
Shares redeemed |
— | — | (1,750,000 | ) | (107,384,488 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
5,050,000 | $ | 297,832,944 | 7,400,000 | $ | 464,010,197 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Global Energy |
||||||||||||||||
Shares sold |
7,650,000 | $ | 275,564,636 | 46,650,000 | $ | 1,309,027,739 | ||||||||||
Shares redeemed |
(14,550,000 | ) | (518,950,362 | ) | (36,600,000 | ) | (971,697,280 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(6,900,000 | ) | $ | (243,385,726 | ) | 10,050,000 | $ | 337,330,459 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Global Financials |
||||||||||||||||
Shares sold |
— | $ | 4,480 | 42,650,000 | $ | 3,390,727,688 | ||||||||||
Shares redeemed |
(3,700,000 | ) | (261,210,617 | ) | (34,500,000 | ) | (2,724,056,927 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(3,700,000 | ) | $ | (261,206,137 | ) | 8,150,000 | $ | 666,670,761 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Global Healthcare |
||||||||||||||||
Shares sold |
7,600,000 | $ | 627,333,218 | 6,950,000 | $ | 589,227,954 | ||||||||||
Shares redeemed |
(1,850,000 | ) | (147,166,283 | ) | (2,150,000 | ) | (181,413,413 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
5,750,000 | $ | 480,166,935 | 4,800,000 | $ | 407,814,541 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Global Industrials |
||||||||||||||||
Shares sold |
150,000 | $ | 14,671,617 | 800,000 | $ | 96,528,258 | ||||||||||
Shares redeemed |
(550,000 | ) | (56,791,321 | ) | (1,200,000 | ) | (142,237,357 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(400,000 | ) | $ | (42,119,704 | ) | (400,000 | ) | $ | (45,709,099 | ) | |||||||
|
|
|
|
|
|
|
|
|||||||||
Global Materials |
||||||||||||||||
Shares sold |
100,000 | $ | 9,205,128 | 3,650,000 | $ | 336,899,964 | ||||||||||
Shares redeemed |
(4,000,000 | ) | (314,561,766 | ) | (4,250,000 | ) | (383,190,984 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(3,900,000 | ) | $ | (305,356,638 | ) | (600,000 | ) | $ | (46,291,020 | ) | |||||||
|
|
|
|
|
|
|
|
80 |
2 0 2 2 I S H A R E S S E M I - 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 |
Notes to Financial Statements (unaudited) (continued)
|
||||||||||||||||
Six Months Ended 09/30/22
|
Year Ended 03/31/22
|
|||||||||||||||
|
|
|
|
|||||||||||||
iShares ETF
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||
|
||||||||||||||||
Global Tech |
||||||||||||||||
Shares sold |
2,700,000 | $ | 140,163,554 | 27,900,000 | (a) | $ | 1,627,576,238 | |||||||||
Shares redeemed |
(23,500,000 | ) | (1,134,375,588 | ) | (40,150,000 | )(a) | (2,243,982,777 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(20,800,000 | ) | $ | (994,212,034 | ) | (12,250,000 | ) | $ | (616,406,539 | ) | |||||||
|
|
|
|
|
|
|
|
|||||||||
Global Utilities |
||||||||||||||||
Shares sold |
500,000 | $ | 32,654,322 | 1,050,000 | $ | 66,190,402 | ||||||||||
Shares redeemed |
(600,000 | ) | (35,404,808 | ) | (800,000 | ) | (48,541,045 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(100,000 | ) | $ | (2,750,486 | ) | 250,000 | $ | 17,649,357 | |||||||||
|
|
|
|
|
|
|
|
(a) |
Share transactions reflect a six-for-one stock split effective after the close of trading on July 16, 2021. |
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.
12. |
FOREIGN WITHHOLDING TAX CLAIMS |
The iShares Global Consumer Staples ETF and iShares Global Energy ETF have filed claims to recover taxes withheld by Sweden on dividend income based upon certain provisions in the Treaty on the Functioning of the European Union. The Funds have recorded a receivable for all recoverable taxes withheld by Sweden based upon determinations made by Swedish tax authorities. Professional and other fees associated with the filing of tax claims in Sweden that result in the recovery of foreign withholding taxes have been approved by the Board as appropriate expenses of the Funds. The Funds continue to evaluate developments in Sweden, for potential impacts to the receivables and associated professional fees payable. Swedish tax claims receivable and related liabilities are disclosed in the Statements of Assets and Liabilities. Collection of this receivable, and any subsequent payment of associated liabilities, depends upon determinations made by Swedish tax authorities.
The Internal Revenue Service (“IRS”) has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior calendar years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid which the iShares Global Consumer Staples ETF is able to pass through to shareholders as a foreign tax credit in the current year, the Fund will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Fund.
The iShares Global Comm Services ETF, iShares Global Energy ETF, iShares Global Financials ETF, iShares Global Industrials ETF and iShares Global Utilities ETF are expected to seek a closing agreement with the Internal Revenue Service (“IRS”) to address any prior years’ U.S. income tax liabilities attributable to Fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the Funds paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by Fund shareholders on their tax returns in prior years. The Funds have accrued a liability for the estimated IRS compliance fee related to foreign withholding tax claims, which is disclosed in the Statements of Assets and Liabilities. The actual IRS compliance fee may differ from the estimate and that difference may be material.
13. |
SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
81 |
Board Review and Approval of Investment Advisory Contract
iShares Global Comm Services ETF, iShares Global Consumer Discretionary ETF, iShares Global Consumer Staples ETF, iShares Global Energy ETF, iShares Global Financials ETF, iShares Global Healthcare ETF, iShares Global Industrials ETF, iShares Global Materials ETF, iShares Global Tech ETF(each the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 3, 2022 and May 18, 2022, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 13-15, 2022, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about recent enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies, provided at the May 3, 2022 meeting and throughout the year, and matters related to BFA’s portfolio compliance program.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
82 |
2 0 2 2 I S H A R E S S E M I - 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 |
Board Review and Approval of Investment Advisory Contract (continued)
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
B O A R D R E V I E W A N D A P P R O V A L O F I N V E S T M E N T A D V I S O R Y C O N T R A C T |
83 |
Board Review and Approval of Investment Advisory Contract (continued)
iShares Global Utilities ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 3, 2022 and May 18, 2022, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 13-15, 2022, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were within range of the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about recent enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies, provided at the May 3, 2022 meeting and throughout the year, and matters related to BFA’s portfolio compliance program.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA
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Board Review and Approval of Investment Advisory Contract (continued)
and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
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Supplemental Information (unaudited)
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
September 30, 2022
Total Cumulative
Distributions for the Fiscal Year-to-Date |
% Breakdown of the Total
Cumulative Distributions for the Fiscal Year-to-Date |
|||||||||||||||||||||||||||||||
iShares ETF | Net Investment Income |
Net Realized Capital Gains |
Return of Capital |
Total Per Share |
Net Investment Income |
Net Realized Capital Gains |
Return of Capital |
Total Per Share |
||||||||||||||||||||||||
Global Comm Services(a) |
$ | 0.330011 | $ | — | $ | 0.258919 | $ | 0.588930 | 56 | % | — | % | 44 | % | 100 | % | ||||||||||||||||
Global Consumer Discretionary(a) |
0.618612 | — | 0.009298 | 0.627910 | 99 | — | 1 | 100 | ||||||||||||||||||||||||
Global Consumer Staples(a) |
0.591013 | — | 0.004162 | 0.595175 | 99 | — | 1 | 100 | ||||||||||||||||||||||||
Global Energy(a) |
0.706877 | — | 0.053866 | 0.760743 | 93 | — | 7 | 100 | ||||||||||||||||||||||||
Global Financials(a) |
1.436879 | — | 0.100328 | 1.537207 | 93 | — | 7 | 100 | ||||||||||||||||||||||||
Global Healthcare(a) |
0.533060 | — | 0.017523 | 0.550583 | 97 | — | 3 | 100 | ||||||||||||||||||||||||
Global Tech(a) |
0.155711 | — | 0.019647 | 0.175358 | 89 | — | 11 | 100 | ||||||||||||||||||||||||
Global Utilities(a) |
0.764932 | — | 0.084151 | 0.849083 | 90 | — | 10 | 100 |
(a) |
The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share. |
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Electronic Delivery
Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• |
Go to icsdelivery.com. |
• |
If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
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Glossary of Terms Used in this Report
Portfolio Abbreviation
ADR | American Depositary Receipt | |
CPO | Certificates of Participation (Ordinary) | |
NVS | Non-Voting Shares |
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Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices LLC, nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.
©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-300-0922
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