|
OCTOBER 31, 2021 |
2021 Annual Report |
iShares U.S. ETF Trust
· |
BlackRock Short Maturity Bond ETF | NEAR | Cboe BZX |
· |
BlackRock Short Maturity Municipal Bond ETF | MEAR | Cboe BZX |
· |
BlackRock Ultra Short-Term Bond ETF | ICSH | Cboe BZX |
Dear Shareholder,
The 12-month reporting period as of October 31, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. The United States began the reporting period as the initial reopening-led economic rebound was beginning to slow. Nonetheless, the economy continued to grow at a solid pace for the reporting period, eventually regaining the output lost from the pandemic. However, a rapid rebound in consumer spending pushed up against supply constraints and led to elevated inflation.
Equity prices rose with the broader economy, as the implementation of mass vaccination campaigns and passage of two additional fiscal stimulus packages further boosted stocks, and many equity indices neared or surpassed all-time highs late in the reporting period. In the United States, returns of small-capitalization stocks, which benefited the most from the resumption of in-person activities, outpaced large-capitalization stocks. International equities also gained, as both developed and emerging markets continued to recover from the effects of the pandemic.
The 10-year U.S. Treasury yield (which is inversely related to bond prices) had fallen sharply prior to the beginning of the reporting period, which meant bonds were priced for extreme risk avoidance and economic disruption. Despite expectations of doom and gloom, the economy expanded rapidly, stoking inflation concerns in early 2021, which led to higher yields and a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and led to solid returns for high-yield corporate bonds, outpacing investment-grade corporate bonds.
The Fed remained committed to accommodative monetary policy by maintaining near-zero interest rates and by reiterating that inflation could exceed its 2% target for a sustained period without triggering a rate increase. In response to rising inflation late in the period, the Fed changed its market guidance, raising the possibility of higher rates in 2022 and reducing bond purchasing beginning in late 2021.
Looking ahead, we believe that the global expansion will continue to broaden as Europe and other developed market economies gain momentum, although the Delta variant of the coronavirus remains a threat, particularly in emerging markets. While we expect inflation to remain elevated in the medium-term as the expansion continues, we believe the recent uptick owes more to temporary supply disruptions than a lasting change in fundamentals. The change in Fed policy also means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the economic expansion.
Overall, we favor a moderately positive stance toward risk, with an overweight in equities. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long-term. U.S. small-capitalization stocks and European equities are likely to benefit from the continuing vaccine-led restart, while Chinese equities stand to gain from a more accommodative monetary and fiscal environment as the Chinese economy slows. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.
In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of October 31, 2021 | ||||
6-Month
|
12-Month
| |||
U.S.
large cap equities
|
10.91% |
42.91% | ||
U.S.
small cap equities
|
1.85 | 50.80 | ||
International
equities
|
4.14 | 34.18 | ||
Emerging market equities
|
(4.87) | 16.96 | ||
3-month Treasury bills
|
0.01 | 0.06 | ||
U.S.
Treasury securities
|
1.59 | (4.77) | ||
U.S. investment grade bonds
|
1.06 | (0.48) | ||
Tax-exempt municipal bonds
|
0.33 | 2.76 | ||
U.S.
high yield bonds
|
2.36 | 10.53 | ||
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
|
2 |
T H I S P A G E I S N O T P A R T O F Y O U R F U N D R E P O R T |
Table of Contents
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5 | ||||
11 | ||||
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12 | ||||
Financial Statements |
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35 | ||||
36 | ||||
38 | ||||
41 | ||||
50 | ||||
51 | ||||
52 | ||||
58 | ||||
59 | ||||
61 | ||||
62 |
iShares U.S. ETF Trust
U.S. Bond Market Overview
The U.S. bond market declined slightly for the 12 months ended October 31, 2021 (“reporting period”). The Bloomberg U.S. Aggregate Bond Index, a broad measure of U.S. fixed-income performance, returned -0.48%.
The U.S. economy continued to recover from the effects of the coronavirus pandemic, growing at a brisk pace during the reporting period. Driven by strong consumer spending and significant fiscal and monetary stimulus, U.S. growth outpaced most other developed economies. An ongoing COVID-19 vaccination program helped accelerate the easing of pandemic-related restrictions, and consumers returned to activities that were previously curtailed, such as travel, restaurant dining, and in-person shopping. Spending on goods also remained elevated, leading imports to rise to an all-time high.
However, this robust consumer demand combined with continued pandemic-related disruptions to the global supply chain led to significantly higher inflation. Similarly, in the labor market, the reopening economy and pent-up demand meant that hiring accelerated, and the unemployment rate fell substantially. Nonetheless, total employment remained notably below pre-pandemic levels and job openings reached a record high despite rising wages. Elevated demand drove an increase in industrial production, although rising commodities prices and supply delays constrained growth, particularly late in the reporting period. The emergence of the highly contagious Delta variant, which was responsible for a significant rise in cases beginning late in summer 2021, also weighed on the economy.
The U.S. Federal Reserve Bank (“Fed”) continued to keep short-term interest rates at near-zero levels and maintained a significant bond-buying program for U.S. Treasuries and mortgage-backed securities, although it discontinued its corporate bond purchasing program. The Fed indicated that it would begin slowing its bond buying activities late in 2021 and signaled that an interest rate increase could be possible in 2022. However, the improving employment environment and a sharp rise in inflation led investors to anticipate a more accelerated tightening of monetary policy. Trading activity showed that investors view multiple interest rate increases as probable in 2022.
U.S. Treasuries declined, as inflation increased, and investors moved toward equities and lower-rated bonds. Rising domestic inflation expectations pressured U.S. Treasuries, which typically lose value in an inflationary environment. U.S. Treasury yields (which move inversely to prices) began the reporting period near historic lows, but generally rose as inflation increased and the economy continued to strengthen. Yields of U.S. Treasuries with intermediate- and long-term maturities, which are more sensitive to inflation, generally increased more than short-term U.S. Treasuries. However, long-term U.S. Treasury yields rose less than intermediate-term U.S. Treasury yields, with two-year, 10-year, and 30-year U.S. Treasury yields rising by 0.34%, 0.67%, and 0.28%, respectively.
Mortgage-backed securities (“MBS”) declined slightly, despite ongoing support from Fed bond purchasing. MBS performance was constrained by prepayments, as homeowners took advantage of low mortgage rates to refinance their mortgages at a lower interest rate.
On the upside, most corporate bonds advanced for the reporting period, particularly lower-rated corporate bonds. A narrowing yield spread (the difference between yields on corporate bonds and U.S. Treasuries) buoyed the performance of corporate bonds compared to U.S. Treasuries. Investors’ ongoing search for yield in a low interest rate environment drove the decline in the yield spread and supported corporate bond prices. High-yield bonds gained the most, as investors’ concerns about solvency abated alongside the growing economy, and the Fed’s support led to high investor confidence. Corporate bond issuance was elevated by historical standards as companies took advantage of low yields to refinance and lock in advantageous borrowing costs.
4 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of October 31, 2021 | BlackRock Short Maturity Bond ETF |
Investment Objective
The BlackRock Short Maturity Bond ETF (the “Fund”) (formerly the iShares Short Maturity Bond ETF) seeks to maximize current income by investing, under normal circumstances, at least 80% of its net assets in a portfolio of U.S. dollar-denominated investment-grade fixed income securities and maintain a weighted average maturity that is less than three years. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
1 Year | 5 Years |
Since |
1 Year | 5 Years |
Since |
|||||||||||||||||||||||
Fund NAV |
0.70 | % | 1.75 | % | 1.45 | % | 0.70 | % | 9.05 | % | 12.35 | % | ||||||||||||||||
Fund Market |
0.70 | 1.74 | 1.45 | 0.70 | 9.00 | 12.33 | ||||||||||||||||||||||
Bloomberg Short-Term Government/Corporate Index |
0.17 | 1.43 | 1.03 | 0.17 | 7.37 | 8.67 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 9/25/13. The first day of secondary market trading was 9/26/13.
The Bloomberg Short-Term Government/Corporate Index (formerly the Bloomberg Barclays Short-Term Government/Corporate Index) is an unmanaged index that measures the performance of government and corporate securities with less than 1 year remaining to maturity.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning |
|
|
Ending |
|
|
Expenses |
|
|
Beginning |
|
|
Ending |
|
|
Expenses |
|
|
Annualized |
| ||||||||||
$ | 1,000.00 | $ | 1,001.30 | $ | 1.26 | $ | 1,000.00 | $ | 1,023.90 | $ | 1.28 | 0.25 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 11 for more information. |
F U N D S U M M A R Y |
5 |
Fund Summary as of October 31, 2021 (continued) | BlackRock Short Maturity Bond ETF |
Portfolio Management Commentary
Short-term investment-grade bonds posted a slightly positive return for the reporting period. Most short-term U.S. Treasury yields (which move inversely to prices) were relatively unchanged due to the Fed’s near-zero interest rate policy, which meant price gains for corporate and other higher-yielding bonds, as well as bond income, drove the Fund’s return. High consumer savings rates also supported demand for short-term bonds. Investment-grade corporate bonds, especially lower-quality securities, also benefited from narrowing spreads, or a decrease in the interest rate premium that corporate bonds carry relative to U.S. Treasuries, as fewer public health restrictions led to stronger economic growth and increased risk-taking by investors.
In terms of relative performance, the Fund outperformed the broader market, as represented by the Bloomberg Short-Term Government/Corporate Index. During the reporting period, the Fund increased its exposure to short-term investment-grade corporate bonds and reduced its exposure to U.S. Treasuries. Within corporate bonds, the Fund added to Baa-rated bonds to capitalize on their high yields. The Fund’s overweight position to investment-grade corporate bonds was a significant contributor to the Fund’s performance relative to the broader market. Positions in asset-backed securities also added to relative performance, as those bonds posted positive returns during the reporting period.
From a total return perspective, short-term investment-grade corporate bonds and asset-backed securities were the top contributors to the Fund’s performance. In particular, bonds issued by banks advanced strongly. Banks, which were flush with cash, issued record totals of debt in 2021, reflecting strong investor demand for yield. The automotive industry also contributed, as strong demand for cars and trucks drove bond prices higher, even as microchip shortages led to declining inventories and slower sales late in the reporting period. Energy sector bonds were another large contributor to the Fund’s return, as oil and gas prices more than doubled during the reporting period.
Portfolio Information
ALLOCATION BY INVESTMENT TYPE
Investment Type |
|
Percent of |
| |
Corporate Bonds & Notes |
|
62.7 |
% | |
Asset-Backed Securities |
20.8 | |||
Collaterized Mortgage Obligations |
7.2 | |||
Commercial Paper |
5.5 | |||
Repurchase Agreements |
2.7 | |||
Certificates of Deposit |
1.1 |
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Rating* |
|
Percent of |
| |
Aaa |
|
18.0 |
% | |
Aa |
2.3 | |||
A |
26.5 | |||
Baa |
31.7 | |||
Ba |
2.3 | |||
P-1 |
3.8 | |||
P-2 |
4.3 | |||
P-3 |
1.2 | |||
Not Rated |
9.9 |
* |
Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) |
Excludes money market funds. |
6 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of October 31, 2021 | BlackRock Short Maturity Municipal Bond ETF |
Investment Objective
The BlackRock Short Maturity Municipal Bond ETF (the “Fund”) (formerly the iShares Short Maturity Municipal Bond ETF) seeks to maximize tax-free current income by investing, under normal circumstances, at least 80% of its net assets in municipal securities such that the interest on each bond is exempt from U.S. federal income taxes and the federal alternative minimum tax. Under normal circumstances, the effective duration of the Fund’s portfolio is expected to be 1.2 years or less, as calculated by the management team, and is not expected to exceed 1.5 years. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
1 Year | 5 Years |
Since |
1 Year | 5 Years |
Since |
|||||||||||||||||||||||
Fund NAV |
0.19 | % | 1.10 | % | 1.00 | % | 0.19 | % | 5.64 | % | 6.89 | % | ||||||||||||||||
Fund Market |
0.15 | 1.13 | 1.00 | 0.15 | 5.79 | 6.87 | ||||||||||||||||||||||
Bloomberg Municipal Bond: 1 Year (1-2) Index |
0.50 | 1.38 | 1.18 | 0.50 | 7.11 | 8.10 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 3/3/15. The first day of secondary market trading was 3/5/15.
The Bloomberg Municipal Bond: 1 Year (1-2) Index (formerly the Bloomberg Barclays Municipal Bond: 1 Year (1-2) Index) is an unmanaged index comprised of national municipal bond issues having a maturity of at least one year and less than two years.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning |
|
|
Ending Account Value |
|
|
Expenses |
|
|
Beginning |
|
|
Ending |
|
|
Expenses |
|
|
Annualized |
| ||||||||||
$ | 1,000.00 | $ | 999.30 | $ | 1.26 | $ | 1,000.00 | $ | 1,023.90 | $ | 1.28 | 0.25 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 11 for more information. |
F U N D S U M M A R Y |
7 |
Fund Summary as of October 31, 2021 (continued) | BlackRock Short Maturity Municipal Bond ETF |
Portfolio Management Commentary
Short-term municipal bonds posted a modest positive return for the reporting period. Continued uncertainty around the coronavirus pandemic led the Fed to maintain accommodative monetary policy, anchoring short-term interest rates near zero. As economies reopened from pandemic-related shutdowns, government tax revenues rose meaningfully, boosting municipal bonds. High consumer savings rates and investors’ concern over potentially rising tax rates supported demand for short-term municipal bonds.
In terms of relative performance, the Fund underperformed the broader market, as represented by the Bloomberg Municipal Bond: 1-2 Year Index. The short-term municipal bond market followed the same broad pattern as most fixed-income markets — bonds with higher risk and lower credit ratings generally outperformed comparable maturity, lower-risk, higher-rated bonds. Consequently, the Fund’s conservative positioning with a large overweight in floating-rate variable-rate demand notes (“VRDNs”) and other cash equivalents detracted from the Fund’s relative performance, as low short-term interest rates limited the yield available on VRDNs.
Additionally, the Fund carried an underweight allocation to bonds from the transportation sector given their sensitivity to pandemic-related closures. As economies reopened during the reporting period, these bonds rallied, resulting in underperformance relative to the broader market. To capitalize on the improving credit environment, the Fund carried an overweight allocation to Baa-rated bonds, which proved beneficial. From a state perspective, overweight positions in New Jersey and Georgia boosted relative return as those states outperformed, while security selection within New York and Illinois detracted from relative performance.
From a total return perspective, municipal bonds generally performed well during the reporting period, as the Fund’s investments in the corporate municipal sector, as well as bonds in the tobacco, housing, and healthcare industries, contributed to the Fund’s return. From a credit quality perspective, all ratings categories posted positive returns, with Baa-rated bonds contributing the most to the Fund’s performance.
Portfolio Information
ALLOCATION BY CREDIT QUALITY
S&P Credit Rating* |
|
Percent of |
| |
AAA |
|
3.3 |
% | |
AA+ |
5.1 | |||
AA |
9.2 | |||
AA- |
8.2 | |||
A+ |
5.7 | |||
A |
14.5 | |||
A- |
8.2 | |||
BBB+ |
3.4 | |||
BBB |
11.2 | |||
BB+ |
0.7 | |||
Not Rated |
30.5 |
TEN LARGEST STATES
State |
|
Percent of |
| |
New Jersey |
|
16.0 |
% | |
New York |
10.4 | |||
Georgia |
9.0 | |||
Texas |
7.9 | |||
Kentucky |
7.9 | |||
Pennsylvania |
4.5 | |||
Alabama |
3.6 | |||
District of Columbia |
3.5 | |||
North Carolina |
3.5 | |||
Mississippi |
3.4 |
* |
Credit quality ratings shown reflect the ratings assigned by S&P Global Ratings, a widely used independent, nationally recognized statistical rating organization. S&P credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of BBB or higher. Below investment grade ratings are credit ratings of BB or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) |
Excludes money market funds. |
8 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of October 31, 2021 | BlackRock Ultra Short-Term Bond ETF |
Investment Objective
The BlackRock Ultra Short-Term Bond ETF (the “Fund”) (formerly the iShares Ultra Short-Term Bond ETF) seeks to provide current income consistent with preservation of capital by investing, under normal circumstances, at least 80% of its net assets in a portfolio of U.S. dollar-denominated investment-grade fixed- and floating-rate debt securities and maintain a dollar-weighted average maturity that is less than 180 days. The Fund is an actively managed exchange-traded fund that does not seek to replicate the performance of a specified index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||
1 Year | 5 Years |
Since |
1 Year | 5 Years |
Since |
|||||||||||||||||||||||
Fund NAV |
0.29 | % | 1.78 | % | 1.34 | % | 0.29 | % | 9.23 | % | 11.07 | % | ||||||||||||||||
Fund Market |
0.31 | 1.78 | 1.34 | 0.31 | 9.21 | 11.09 | ||||||||||||||||||||||
ICE BofA US 6-Month Treasury Bill Index |
0.12 | 1.32 | 0.96 | 0.12 | 6.80 | 7.83 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 12/11/13. The first day of secondary market trading was 12/13/13.
On 3/1/2021 the Fund began referencing the 4pm pricing variant of the ICE BofA US 6-Month Treasury Bill Index. Historical index data prior to 3/1/2021 is for the 3pm pricing variant of the ICE BofA US 6-Month Treasury Bill Index. Index data on and after 3/1/2021 is for the 4pm pricing variant of the ICE BofA US 6-Month Treasury Bill Index.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 11 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning |
|
|
Ending |
|
|
Expenses |
|
|
Beginning |
|
|
Ending |
|
|
Expenses |
|
|
Annualized |
| ||||||||||
$ | 1,000.00 | $ | 1,001.00 | $ | 0.40 | $ | 1,000.00 | $ | 1,024.80 | $ | 0.41 | 0.08 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 11 for more information. |
F U N D S U M M A R Y |
9 |
Fund Summary as of October 31, 2021 (continued) | BlackRock Ultra Short-Term Bond ETF |
Portfolio Management Commentary
Ultra-short-term bonds posted a slightly positive return for the reporting period. Rising yields for longer-term maturities created demand for short-term bonds, as investors sought to reduce interest rate sensitivity by buying shorter maturities. High consumer savings rates also supported demand for short-term bonds. As the economy and coronavirus dynamics improved, credit spreads, or the difference in yields relative to U.S. Treasuries, on short-term investment-grade corporate bonds decreased, which helped the performance of short-term corporate bonds.
The Fund increased its exposure to short-term investment-grade corporate bonds and reduced its exposure to cash equivalents during the reporting period. Within corporate bonds, the Fund added to Baa-rated bonds during the reporting period to capitalize on their additional yield.
In terms of relative performance, the Fund outperformed the broader market, as represented by the Bloomberg Short-Term Government/Corporate Index. The Fund’s overweight positions to commercial paper and certificates of deposit contributed to relative performance. Short-term corporate bonds, particularly in the financial sector, were also additive to relative return. Furthermore, the Fund’s underweight position to U.S. Treasury bonds proved beneficial as those positions underperformed the broader market.
From a total return perspective, corporate bonds contributed the most to the Fund’s total return. Low yields among short-term fixed-income securities drove demand for corporate bonds, which offer additional income compared to cash equivalents and U.S. Treasuries. Within corporate bonds, bank bonds were the most significant contributors as some banks’ earnings benefited from borrowing at low short-term interest rates and lending at higher longer-term interest rates. The automotive industry also contributed, as strong demand for cars and trucks drove bond prices higher, even as microchip shortages led to declining inventories and slower sales late in the reporting period.
From a credit quality perspective, bonds from each rating category contributed to the Fund’s total return. Bonds rated Baa were the top performers, and A-rated bonds contributed the most to the Fund’s performance.
Portfolio Information
ALLOCATION BY INVESTMENT TYPE
Investment Type |
|
Percent of |
| |
Corporate Bonds & Notes |
|
42.1 |
% | |
Commercial Paper |
35.4 | |||
Certificates of Deposit |
13.8 | |||
Repurchase Agreements |
4.3 | |||
Municipal Debt Obligations |
3.5 | |||
Asset-Backed Securities |
0.7 | |||
U.S. Government & Agency Obligations |
0.2 |
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Rating* |
|
Percent of |
| |
Aaa |
|
0.5 |
% | |
Aa |
8.8 | |||
A |
26.7 | |||
Baa |
9.4 | |||
P-1 |
27.1 | |||
P-2 |
23.3 | |||
Not Rated |
4.2 |
* |
Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) |
Excludes money market funds. |
10 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
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 by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
A B O U T F U N D P E R F O R M A N C E / S H A R E H O L D E R E X P E N S E S |
11 |
October 31, 2021 |
BlackRock Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||||||
Asset-Backed Securities |
||||||||||||
AGL
Core CLO 4 Ltd., 1.20%, 04/20/33 (Call 04/20/22), |
USD | 650 | $ | 650,324 | ||||||||
AIG
CLO Ltd., 1.25%, 04/20/32 (Call 04/20/22), |
USD | 1,000 | 1,001,600 | |||||||||
American
Express Credit Account Master Trust, Series 2018-9, Class A,
0.47%, 04/15/26, |
USD | 17,650 | 17,763,197 | |||||||||
AmeriCredit Automobile Receivables Trust, Series 2021-1, Class A2, 0.28%, 06/18/24 (Call 02/18/24) |
USD | 9,238 | 9,236,569 | |||||||||
AmeriCredit Automobile Receivables Trust 2020-2, Series 2020-2, Class A2B, 0.44%, 12/18/23 (Call 09/18/23), (1 mo. LIBOR US + 0.350%)(b) |
USD | 2,128 | 2,129,001 | |||||||||
Anchorage
Capital CLO 4-R Ltd., Series 2014-4RA, Class A,
1.19%, 01/28/31 (Call 01/28/22), |
USD | 4,500 | 4,500,004 | |||||||||
Anchorage
Capital CLO 7 Ltd., Series 2015-7A, Class AR2,
1.23%, 01/28/31 (Call 01/28/22), |
USD | 13,840 | 13,836,995 | |||||||||
Anchorage
Capital CLO 8 Ltd., Series 2016-8A, Class AR, 1.14%, 07/28/28
(Call 01/28/22), |
USD | 3,962 | 3,961,260 | |||||||||
Apidos
CLO XII, 1.20%, 04/15/31 (Call 01/15/22), |
USD | 500 | 500,326 | |||||||||
Apidos
CLO XXI, 1.05%, 07/18/27 (Call 01/18/22), |
USD | 1,647 | 1,646,359 | |||||||||
Arbor
Realty Commercial Real Estate Notes Ltd., 1.16%, 08/15/34
(Call 03/15/24), |
USD | 14,450 | 14,413,876 | |||||||||
ASSURANT
CLO Ltd., Series 2018-2A,
Class A, 1.17%, 04/20/31 (Call 01/20/22), |
USD | 250 | 249,882 | |||||||||
Atlas
Senior Loan Fund III Ltd., Series 2013-1A, Class AR,
0.95%, 11/17/27 (Call 11/17/21), |
USD | 8,410 | 8,411,648 | |||||||||
Atrium
XIII, Series 13A, Class A1, 1.30%,
11/21/30 |
USD | 2,500 | 2,501,250 | |||||||||
Autoflorence
of Amyloids 0.14%, 12/24/44 |
EUR | 10,320 | 12,057,807 | |||||||||
0.19%, 12/24/44 (Call 12/24/26)(b)(c) |
EUR | 898 | 1,037,076 | |||||||||
Bain
Capital Credit CLO Ltd., Series 2017-1A, Class A1R,
1.10%, 07/20/30 (Call 01/20/22), |
USD | 3,200 | 3,199,309 | |||||||||
Barings
Clo Ltd., 1.45%, 01/15/33 (Call 01/15/22), |
USD | 3,850 | 3,852,848 | |||||||||
Barings
CLO Ltd., 1.20%, 04/20/31 (Call 04/20/22), |
USD | 550 | 550,384 | |||||||||
BDS
2021-FL9 Ltd., 1.17%, 11/16/38
(Call 10/16/23), |
USD | 8,750 | 8,747,637 | |||||||||
Beechwood
Park CLO Ltd., 1.45%, 01/17/33 |
USD | 3,450 | 3,450,003 | |||||||||
Benefit
Street Partners CLO III Ltd., Series 2013-IIIA, |
USD | 456 | 455,909 | |||||||||
Benefit
Street Partners CLO VIII Ltd., Series 2015-8A, |
USD | 750 | 750,375 | |||||||||
Benefit
Street Partners Clo XII Ltd., 1.07%, 10/15/30, |
USD | 1,678 | 1,677,070 |
Security | Par (000) |
Value | ||||||||||
BlueMountain
CLO Ltd., Series 2012-2A,
Class AR2, 1.18%, 11/20/28 (Call 11/20/21), |
USD | 2,061 | $ | 2,061,292 | ||||||||
Canyon
Capital CLO Ltd., Series 2019-1A, Class A1R,
1.22%, 04/15/32 (Call 01/15/22), |
USD | 5,800 | 5,795,891 | |||||||||
Carlyle
C17 CLO Ltd., Series C17A, Class A1AR, 1.16%, 04/30/31
(Call 10/30/21), |
USD | 1,000 | 1,000,499 | |||||||||
Carlyle Global Market Strategies CLO Ltd. |
||||||||||||
Series 2013-2A, Class AR,
1.01%, 01/18/29 |
USD | 5,879 | 5,878,834 | |||||||||
Series 2014-1A, Class A1R2,
1.09%, 04/17/31 |
USD | 5,234 | 5,234,848 | |||||||||
CarMax Auto Owner Trust, Series 2021-2, Class A2A, 0.27%, 06/17/24 (Call 03/15/24) |
USD | 14,340 | 14,340,928 | |||||||||
Cbam
Ltd., Series 2018-7A,
Class A, 1.23%, 07/20/31 |
USD | 750 | 749,277 | |||||||||
Cedar
Funding IX CLO Ltd., 1.11%, 04/20/31 |
USD | 2,130 | 2,131,182 | |||||||||
Chesapeake
Funding II LLC, Series 2020-1A, |
USD | 9,171 | 9,210,905 | |||||||||
CIFC Funding Ltd. |
||||||||||||
Series 2014-2RA, Class A1,
1.17%, 04/24/30 |
USD | 250 | 250,225 | |||||||||
Series 2015-2A, Class AR2,
1.13%, 04/15/30 |
USD | 17,000 | 16,993,534 | |||||||||
Series 2018-1A, Class A,
1.12%, 04/18/31 |
USD | 16,610 | 16,609,985 | |||||||||
Series 2018-2A, Class A1,
1.17%, 04/20/31 |
USD | 1,250 | 1,249,999 | |||||||||
Citibank
Credit Card Issuance Trust, Series 2019-A5, |
USD | 40,505 | 40,966,275 | |||||||||
College
Ave Student Loans LLC, Series 2021-A, |
USD | 292 | 295,043 | |||||||||
Credit Acceptance Auto Loan Trust |
||||||||||||
Series 2019-1A, Class A,
3.33%, 02/15/28 |
USD | 419 | 419,185 | |||||||||
Series 2021-3A, Class A,
1.00%, 05/15/30 |
USD | 4,130 | 4,112,975 | |||||||||
Donlen
Fleet Lease Funding 2 LLC, Series 2021-2, |
USD | 14,030 | 14,027,855 | |||||||||
Dowson PLC |
||||||||||||
Series 2021-2, Class A,
0.73%, 10/20/28 |
GBP | 10,900 | 14,924,065 | |||||||||
Series 2021-2, Class B,
1.00%, 10/20/28 |
GBP | 1,600 | 2,192,090 | |||||||||
Drive Auto Receivables Trust, Series 2021-1, Class A3, 0.44%, 11/15/24 (Call 05/15/24) |
USD | 9,070 | 9,075,104 | |||||||||
Dryden
49 Senior Loan Fund, Series 2017-49A, |
USD | 10,750 | 10,762,670 | |||||||||
Dryden
77 CLO Ltd., Series 2020-77A, Class XR,
1.13%, 05/20/34 (Call 05/20/23), |
USD | 250 | 250,069 |
12 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||||||
Dryden
XXVI Senior Loan Fund, Series 2013-26A, |
USD | 15,854 | $ | 15,851,555 | ||||||||
Elevation
CLO Ltd., Series 2014-2A,
Class A1R, |
USD | 500 | 500,345 | |||||||||
Elmwood
CLO X Ltd., Series 2021-3A,
Class A, 1.13%, 10/20/34, |
USD | 23,000 | 22,994,896 | |||||||||
Enterprise
Fleet Funding LLC, Series 2021-1, |
USD | 12,780 | 12,743,384 | |||||||||
Ford Credit Floorplan Master Owner Trust, Series 2019-1, Class A, 2.84%, 03/15/24 |
USD | 26,550 | 26,809,168 | |||||||||
Ford
Credit Floorplan Master Owner Trust A, Series 2019-3, Class A2, 0.69%,
09/15/24, |
USD | 59,321 | 59,598,634 | |||||||||
Galaxy
XV CLO Ltd., Series 2013-15A,
Class ARR, 1.09%, 10/15/30 (Call 01/15/22), |
USD | 670 | 670,194 | |||||||||
Globaldrive
Auto Receivables, Series 2019-UKA, |
GBP | 875 | 1,200,244 | |||||||||
GM
Financial Consumer Automobile Receivables Trust, |
USD | 14,753 | 14,754,602 | |||||||||
GoldenTree
Loan Opportunities IX Ltd., Series 2014-9A, Class AR2, 1.24%,
10/29/29 |
USD | 16,680 | 16,677,253 | |||||||||
Halcyon
Loan Advisors Funding Ltd., Series 2015-2A, |
USD | 435 | 435,327 | |||||||||
HGI
CRE CLO Ltd., 1.09%, 09/17/36 (Call 10/17/23), |
USD | 5,380 | 5,359,862 | |||||||||
Highbridge
Loan Management, Series 3A-2014, |
USD | 1,100 | 1,099,745 | |||||||||
John
Deere Owner Trust, Series 2020-B,
Class A2, 0.41%, 03/15/23 |
USD | 4,129 | 4,129,726 | |||||||||
KKR
CLO 21 Ltd., 1.12%, 04/15/31 (Call 01/15/22), |
USD | 5,590 | 5,590,024 | |||||||||
LCM
29 Ltd., Series 29A, Class AR, 1.19%, 04/15/31 |
USD | 2,600 | 2,599,996 | |||||||||
LoanCore Issuer Ltd. |
||||||||||||
1.39%,
11/15/38 (Call 11/15/23), |
USD | 2,640 | 2,640,000 | |||||||||
Series
2018-CRE1, Class A, 1.22%, 05/15/28 |
USD | 2,673 | 2,672,919 | |||||||||
Madison
Park Funding X Ltd., Series 2012-10A, |
USD | 6,121 | 6,119,849 | |||||||||
Madison
Park Funding XIII Ltd., Series 2014-13A, |
USD | 3,935 | 3,934,528 | |||||||||
Madison
Park Funding XVII Ltd., Series 2015-17A, |
USD | 800 | 799,813 | |||||||||
Madison
Park Funding XXIII Ltd., Series 2017-23A, |
USD | 13,200 | 13,197,361 | |||||||||
Madison
Park Funding XXVI Ltd., Series 2007-4A, |
USD | 4,875 | 4,881,285 |
Security | Par (000) |
Value | ||||||||||
Madison
Park Funding XXXVII Ltd., 1.19%, 07/15/33 |
USD | 1,750 | $ | 1,749,309 | ||||||||
Marathon
CRE Ltd., Series 2018-FL1,
Class A, 1.24%, 06/15/28 (Call 11/11/21), |
USD | 1,563 | 1,564,467 | |||||||||
Mariner
CLO LLC, Series 2016-3A,
Class AR2, 1.11%, 07/23/29 (Call 01/23/22), |
USD | 1,222 | 1,222,628 | |||||||||
MF1
Multifamily Housing Mortgage Loan Trust, 1.19%, 07/16/36 (Call
07/16/23), |
USD | 4,520 | 4,509,824 | |||||||||
Navient
Private Education Loan Trust |
||||||||||||
Series
2017-A, Class A2B, 0.99%,
12/16/58 |
USD | 721 | 721,842 | |||||||||
Series
2020-IA, Class A1B, 1.09%,
04/15/69 |
USD | 7,760 | 7,796,573 | |||||||||
Navient Private Education Refi Loan Trust |
||||||||||||
Series
2020-A, Class A1, 0.44%,
11/15/68 |
USD | 487 | 486,770 | |||||||||
Series
2021-BA, Class A, 0.94%,
07/15/69 |
USD | 7,897 | 7,837,374 | |||||||||
Series
2021-DA, Class A, 1.26%,
04/15/60, |
USD | 9,903 | 9,903,993 | |||||||||
Nelnet
Student Loan Trust |
USD | 7,493 | 7,496,992 | |||||||||
0.98%, 04/20/62, (1 mo. LIBOR US + 0.690%)(a)(b) |
USD | 3,797 | 3,797,000 | |||||||||
Series
2021-A, Class A1, 0.89%,
04/20/62 |
USD | 9,567 | 9,607,399 | |||||||||
Series
2021-BA, Class AFL, 0.87%,
04/20/62 |
USD | 16,351 | 16,372,618 | |||||||||
Neuberger
Berman CLO Ltd., Series 2013-14A, |
USD | 500 | 499,910 | |||||||||
Neuberger Berman Loan Advisers CLO 33 Ltd., 1.20%, 10/16/33, (3 mo. LIBOR US + 1.080%)(a)(b)(d) |
USD | 2,050 | 2,050,000 | |||||||||
Nissan Master Owner Trust Receivables |
||||||||||||
Series
2019-A, Class A, 0.65%,
02/15/24, |
USD | 23,950 | 23,985,602 | |||||||||
Series
2019-B, Class A, 0.52%,
11/15/23, |
USD | 24,000 | 24,003,401 | |||||||||
NLY
Commercial Mortgage Trust, Series 2019-FL2, |
USD | 4,774 | 4,772,226 | |||||||||
OCP CLO Ltd. |
||||||||||||
1.12%,
04/10/33 (Call 04/10/22), |
USD | 4,000 | 3,999,994 | |||||||||
Series
2016-12A, Class A1R, 1.24%,
10/18/28 |
USD | 15,440 | 15,440,639 | |||||||||
Series
2017-13A, 1.08%, 07/15/30 (Call
04/15/22), |
USD | 2,350 | 2,349,998 | |||||||||
Octagon
Investment Partners XVII Ltd., Series 2013-1A, Class A1R2, 1.12%,
01/25/31 |
USD | 3,000 | 3,001,500 | |||||||||
OneMain
Financial Issuance Trust, Series 2016-3A, |
USD | 850 | 855,054 | |||||||||
Palmer Square CLO Ltd. |
||||||||||||
1.12%,
10/17/31 (Call 07/19/22), |
USD | 1,800 | 1,801,256 | |||||||||
Series
2015-2, 1.23%, 07/20/30 (Call
01/20/22), |
USD | 3,650 | 3,650,834 |
S C H E D U L E O F I N V E S T M E N T S |
13 |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||||||
Series 2021-3A, Class A1, 1.00%, 01/15/35(a) |
USD | 500 | $ | 500,000 | ||||||||
Palmer Square Loan Funding Ltd. |
||||||||||||
Series
2018-4A, Class A1, 1.02%,
11/15/26 |
USD | 3,241 | 3,241,738 | |||||||||
Series
2018-5A, Class A1, 0.98%,
01/20/27 |
USD | 4,519 | 4,518,904 | |||||||||
PFS Financing Corp. |
||||||||||||
Series
2019-A, Class A1, 0.64%,
04/15/24, |
USD | 40,000 | 40,074,844 | |||||||||
Series 2020-F, Class A, 0.93%, 08/15/24(a) |
USD | 3,274 | 3,288,192 | |||||||||
Pikes
Peak CLO 1, Series 2018-1A,
Class A, 1.30%, 07/24/31 (Call 01/24/22), |
USD | 1,500 | 1,499,816 | |||||||||
Prodigy
Finance CM2021-1 DAC, Series 2021-1A, |
USD | 2,423 | 2,431,416 | |||||||||
Red & Black Auto Germany 8 UG, Class B, 0.18%, 09/15/30 (Call 10/15/25)(b)(c) |
EUR | 400 | 463,556 | |||||||||
Red &
Black Auto Italy S.r.l., Class A, 1.00%, 12/28/31 |
EUR | 19,902 | 23,143,215 | |||||||||
Romark
WM-R Ltd., Series 2018-1A, Class A1, 1.16%, 04/20/31
(Call 01/20/22), |
USD | 3,879 | 3,880,867 | |||||||||
RR
3 Ltd., Series 2018-3A,
Class A1R2, 1.21%, 01/15/30 (Call 01/15/22), |
USD | 2,000 | 2,003,652 | |||||||||
Santander Drive Auto Receivables Trust |
||||||||||||
Series
2020-4, Class A3, 0.48%,
07/15/24 |
USD | 6,225 | 6,228,083 | |||||||||
Series
2021-1, Class A3, 0.32%,
09/16/24 |
USD | 19,870 | 19,874,441 | |||||||||
Shackleton
Clo Ltd., Series 2017-11A, 1.21%,
08/15/30 |
USD | 2,750 | 2,748,672 | |||||||||
Shackleton
CLO Ltd., Series 2015-7R, 1.27%,
07/15/31 (Call 07/15/22), |
USD | 2,750 | 2,748,742 | |||||||||
Signal Peak CLO 2 LLC, Series 2015-1A, Class AR2, 1.11%, 04/20/29 (Call 01/20/22), (3 mo. LIBOR US + 0.98%(a)(b) |
USD | 1,752 | 1,753,500 | |||||||||
Silver
Creek CLO Ltd., 1.37%, 07/20/30 |
USD | 7,489 | 7,488,955 | |||||||||
SLM Private Credit Student Loan Trust |
||||||||||||
Series
2004-A, Class A3, 0.52%,
06/15/33 |
USD | 4,259 | 4,227,704 | |||||||||
Series
2004-B, Class A3, 0.45%,
03/15/24 |
USD | 5,285 | 5,278,003 | |||||||||
Series
2005-A, Class A4, 0.43%,
12/15/38 |
USD | 8,531 | 8,426,874 | |||||||||
Series
2005-B, Class A4, 0.45%,
06/15/39 |
USD | 5,884 | 5,796,373 | |||||||||
Series
2006-A, Class A5, 0.41%,
06/15/39 |
USD | 12,926 | 12,672,301 | |||||||||
Series
2006-B, Class A5, 0.39%,
12/15/39 |
USD | 9,268 | 9,099,810 | |||||||||
SLM
Student Loan Trust, Series 2011-2, Class A1, 0.69%, 11/25/27
(Call 08/25/32), |
USD | 9 | 9,440 | |||||||||
SMB Private Education Loan Trust |
||||||||||||
Series
2015-A, Class A2A,
2.49%, 06/15/27 |
USD | 771 | 774,025 |
Security |
Par (000) |
Value | ||||||||||
Series
2017-A, Class A2B, 0.99%,
09/15/34, |
USD | 14,646 | $ | 14,730,325 | ||||||||
Series
2021-C, Class A1, 0.49%,
01/15/53, |
USD | 5,226 | 5,228,508 | |||||||||
SoFi
Professional Loan Program LLC, Series 16-C, |
USD | 736 | 738,153 | |||||||||
Sound
Point Clo XV Ltd., Series 2017-1A, Class ARR,
1.02%, 01/23/29 (Call 01/23/22), |
USD | 2,845 | 2,842,787 | |||||||||
Sound
Point CLO XXVIII Ltd., Series 2020 3A, |
USD | 1,250 | 1,250,306 | |||||||||
Southwick
Park CLO LLC, Series 2019-4A, Class A1,
1.43%, 07/20/32 (Call 01/20/22), |
USD | 8,760 | 8,760,361 | |||||||||
Symphony
CLO XVI Ltd., Series 2015-16A, Class AR,
1.27%, 10/15/31 (Call 01/15/22), |
USD | 500 | 500,186 | |||||||||
Tagus
STC/Ulisses Finance No.2, 0.15%, 09/23/38 |
EUR | 12,100 | 14,158,247 | |||||||||
TCI-Symphony CLO Ltd. |
||||||||||||
1.14%,
10/13/32 (Call 01/13/22), |
USD | 5,235 | 5,235,000 | |||||||||
Series 2016-1A, Class AR,
1.28%, 10/13/29 |
USD | 5,235 | 5,232,847 | |||||||||
Tesla Auto Lease Trust, Series 2020-A, Class A, 0.55%, 05/22/23 (Call 04/20/23)(a) |
USD | 3,662 | 3,664,501 | |||||||||
TICP
CLO IX Ltd., Series 2017-9A,
Class A, 1.27%, 01/20/31 (Call 01/20/22), |
USD | 500 | 500,874 | |||||||||
Verizon
Owner Trust, Series 2020-A,
Class A1B, 0.36%, 07/22/24 (Call 04/20/23), |
USD | 9,290 | 9,302,231 | |||||||||
VOYA
CLO, Series 2017-2A,
Class A1R, 1.10%, 06/07/30 (Call 01/15/22), |
USD | 5,330 | 5,328,764 | |||||||||
Voya
CLO Ltd., Series 2015-2A,
Class AR, 1.09%, 07/23/27 (Call 01/23/22), |
USD | 5,102 | 5,107,566 | |||||||||
Voya
Ltd., Series 2012-4, 1.12%,
10/15/30 |
USD | 16,523 | 16,518,556 | |||||||||
Wellfleet
CLO Ltd., Series 2016-1A,
Class AR, 1.04%, 04/20/28 (Call 01/20/22), |
USD | 1,125 | 1,125,127 | |||||||||
Westlake
Automobile Receivables Trust, Series 2021-1A, Class A2A, 0.39%,
10/15/24 |
USD | 13,770 | 13,769,079 | |||||||||
|
|
|||||||||||
Total
Asset-Backed Securities — 19.9% |
|
966,017,893 | ||||||||||
|
|
|||||||||||
Certificates of Deposit |
||||||||||||
Barclays Bank PLC, 0.33%, 02/01/22 |
$ | 23,000 | 23,011,993 | |||||||||
Sumitomo Mitsui Banking Corp./New York, 0.70%, 07/15/22 |
30,000 | 30,089,051 | ||||||||||
|
|
|||||||||||
Total
Certificates of Deposit — 1.1% |
53,101,044 | |||||||||||
|
|
14 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||||||
Collaterized Mortgage Obligations |
| |||||||||||
Mortgage-Backed Securities — 6.9% |
||||||||||||
280
Park Avenue Mortgage Trust, Series 2017-280P, Class A, 0.97%,
09/15/34, |
USD | 12,100 | $ | 12,088,857 | ||||||||
AREIT Trust, Series 2019-CRE3, Class A, 1.18%, 09/14/36, (1 mo. LIBOR US + 1.020%)(a)(b) |
USD | 24,290 | 24,242,552 | |||||||||
B.A.T.
International Finance, Series 2018-TALL, Class A, 0.81%,
03/15/37, |
USD | 8,630 | 8,581,152 | |||||||||
BAMLL
Commercial Mortgage Securities Trust, Series 2018-DSNY, Class A,
0.94%, 09/15/34, |
USD | 19,220 | 19,183,532 | |||||||||
BBCMS
Mortgage Trust, Series 2019-BWAY, Class A, 1.05%, 11/15/34, |
USD | 11,305 | 11,276,158 | |||||||||
BX
Commercial Mortgage Trust 0.79%, 10/15/36, |
USD | 9,780 | 9,731,242 | |||||||||
Series
2018-BIOA, Class A, 0.76%, 03/15/37, |
USD | 23,190 | 23,190,021 | |||||||||
Series
2020-BXLP, Class A, 0.89%, 12/15/36, |
USD | 7,388 | 7,383,423 | |||||||||
BX
Trust 0.98%, 10/15/36, |
USD | 8,520 | 8,501,322 | |||||||||
Series
2019-CALM, Class A, 0.97%, 11/15/32, |
USD | 6,798 | 6,793,895 | |||||||||
Series
2021, Class A, 1.37%, 06/15/23, |
USD | 2,070 | 2,069,999 | |||||||||
Chase
Home Lending Mortgage Trust, Series 2019-ATR2, Class A11, 0.99%,
07/25/49 |
USD | 1,769 | 1,777,648 | |||||||||
Cold Storage Trust, Series 2020-ICE5, Class A, 0.99%, 11/15/37, (1 mo. LIBOR US + 0.900%)(a)(b) |
USD | 1,843 | 1,842,551 | |||||||||
COMM Mortgage Trust, Series 2014-CR15, Class A2, 2.93%, 02/10/47 (Call 11/10/21) |
USD | 310 | 310,170 | |||||||||
Commercial Mortgage Pass Through Certificates, |
||||||||||||
Series
2021-LBA, Class A, 0.78%,
03/15/38 |
USD | 2,800 | 2,778,093 | |||||||||
Commission, Series 2013- GAM, Class A2, 3.37%, 02/10/28 (Call 02/10/22)(a) |
USD | 6,626 | 6,574,983 | |||||||||
Commission
Mortgage Trust, Series 2013-CR6,
Class A3FL, 0.72%, 03/10/46 (Call 12/10/22), |
USD | 788 | 787,940 | |||||||||
DBGS
Mortgage Trust, Series 2018-5BP,
Class A, 0.89%, 06/15/33 (Call 11/15/21), |
USD | 4,200 | 4,194,929 | |||||||||
Dutch Property Finance, Series 2021-2, Class A, 0.16%, 04/28/59 (Call 04/28/26)(b)(c) |
EUR | 6,477 | 7,518,110 | |||||||||
Elvet Mortgages PLC, Series 2021-1, Class A, 0.05%, 10/22/63 (Call 10/22/26)(b)(c) |
GBP | 11,586 | 15,871,131 | |||||||||
Extended
Stay America Trust, Series 2021-ESH, Class A, 1.17%,
07/15/38, |
USD | 6,198 | 6,209,529 | |||||||||
GCT
Commercial Mortgage Trust, Series 2021-GCT, |
USD | 8,600 | 8,608,163 | |||||||||
Gosforth
Funding PLC, Series 2018-1A,
Class A1, 0.58%, 08/25/60 (Call 08/25/23), |
USD | 2,376 | 2,377,600 | |||||||||
GS Mortgage Securities Corportation Trust, 1.05%, 10/15/36, (1 mo. LIBOR US + 0.95%)(a)(b) |
USD | 10,360 | 10,363,136 |
Security |
Par (000) |
Value | ||||||||||
Mortgage-Backed Securities (continued) | ||||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2019-BKWD, Class A, 1.09%, 09/15/29, (1 mo. LIBOR US + 1.000%)(a)(b) |
USD | 1,911 | $ | 1,909,779 | ||||||||
KNDL Mortgage Trust, Series 2019-KNSQ, Class A, 0.89%, 05/15/36, (1 mo. LIBOR US + 0.800%)(a)(b) |
USD | 8,533 | 8,532,998 | |||||||||
MED Trust LLC, 1.00%, 11/15/26(a) |
USD | 4,260 | 4,260,000 | |||||||||
Morgan Stanley Capital I Trust |
||||||||||||
Series
2017-CLS, Class A,
0.79%, 11/15/34, |
USD | 14,512 | 14,503,177 | |||||||||
Series
2018-BOP, Class A,
0.94%, 08/15/33, |
USD | 6,609 | 6,605,229 | |||||||||
Series
2018-SUN, Class A,
0.99%, 07/15/35 |
USD | 19,045 | 19,038,955 | |||||||||
Natixis
Commercial Mortgage Securities Trust, Series 2018-RIVA, Class A,
0.84%, 02/15/33, |
USD | 6,486 | 6,482,658 | |||||||||
Taurus
CMBS, 1.00%, 08/17/31 (Call 08/17/26), |
GBP | 7,159 | 9,809,865 | |||||||||
Together
Asset Backed Securitisation, 0.75%, 07/12/63 |
GBP | 3,369 | 4,611,154 | |||||||||
TPGI Trust, Series 2021 DGWD, Class A, 0.79%, 06/15/26, (1 mo. LIBOR US + 0.700%)(a)(b) |
USD | 6,320 | 6,316,081 | |||||||||
Wells
Fargo Commercial Mortgage Trust, Series 2017-SMP, Class A, 0.97%,
12/15/34, |
USD | 17,280 | 17,259,383 | |||||||||
WFRBS Commercial Mortgage Trust |
||||||||||||
Series
2012-C6, Class AS, 3.84%,
04/15/45 |
USD | 12,986 | 13,044,002 | |||||||||
Series
2012-C8, Class AFL, 1.09%,
08/15/45 |
USD | 18,999 | 19,001,397 | |||||||||
|
|
|||||||||||
Total
Collaterized Mortgage Obligations — 6.9% |
|
333,630,814 | ||||||||||
|
|
|||||||||||
Commercial Paper |
||||||||||||
AT&T Inc., 0.41%, 12/14/21(e) |
$ | 23,000 | 22,995,268 | |||||||||
CIGNA Corp., 0.16%, 12/01/21(e) |
25,000 | 24,996,425 | ||||||||||
Enel
Finance America |
20,000 | 19,985,436 | ||||||||||
0.33%, 06/27/22(e) |
13,800 | 13,769,421 | ||||||||||
0.36%, 07/08/22(e) |
20,000 | 19,951,560 | ||||||||||
0.38%, 08/09/22(e) |
16,000 | 15,952,414 | ||||||||||
0.41%, 04/22/22(e) |
25,000 | 24,966,337 | ||||||||||
ENI Finance USA Inc., 0.30%, 04/13/22(e) |
21,000 | 20,971,144 | ||||||||||
General Motors Financial Co. Inc., 0.34%, 12/14/21(e) |
20,000 | 19,991,413 | ||||||||||
Viatris
Inc. |
15,000 | 14,989,615 | ||||||||||
0.40%, 12/31/21(e) |
20,000 | 19,985,895 | ||||||||||
Volkswagen Group America Finance LLC, 0.31%, 11/12/21(e) |
22,000 | 21,997,322 | ||||||||||
VW CR Inc., 0.21%, 02/16/22(e) |
15,000 | 14,990,513 | ||||||||||
|
|
|||||||||||
Total
Commercial Paper — 5.3% |
255,542,763 | |||||||||||
|
|
|||||||||||
Corporate Bonds & Notes |
||||||||||||
Aerospace & Defense — 0.3% | ||||||||||||
Boeing Co. (The), 2.13%, 03/01/22 (Call 02/01/22)(f) |
9,550 | 9,587,536 |
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 (continued) October 31, 2021 |
BlackRock Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security |
Par (000) |
Value | ||||||
Aerospace & Defense (continued) |
||||||||
L3Harris
Technologies Inc., 3.85%, 06/15/23 |
$ | 5,000 | $ | 5,241,365 | ||||
|
|
|||||||
14,828,901 | ||||||||
Agriculture — 0.2% | ||||||||
BAT
Capital Corp., 1.00%, 08/15/22 (Call 07/15/22), |
10,000 | 10,049,646 | ||||||
|
|
|||||||
Auto Manufacturers — 7.9% | ||||||||
American
Honda Finance Corp. |
15,023 | 15,155,617 | ||||||
2.20%, 06/27/22(f) |
6,136 | 6,213,680 | ||||||
BMW Finance NV, 2.25%, 08/12/22(a)(f) |
16,350 | 16,588,252 | ||||||
BMW
U.S. Capital LLC, 0.43%, 08/12/24, |
22,230 | 22,367,381 | ||||||
Daimler
Finance North America LLC |
9,005 | 8,966,930 | ||||||
1.01%, 02/22/22, (3 mo. LIBOR US + 0.880%)(a)(b) |
24,623 | 24,681,516 | ||||||
2.55%, 08/15/22(a)(f) |
19,691 | 20,019,355 | ||||||
Ford
Motor Credit Co. LLC, 3.34%, 03/28/22 |
10,000 | 10,057,000 | ||||||
General
Motors Financial Co. Inc. |
15,000 | 15,008,895 | ||||||
1.05%, 03/08/24(f) |
20,000 | 19,957,056 | ||||||
3.45%, 04/10/22 (Call 02/10/22) |
19,400 | 19,563,234 | ||||||
4.20%, 11/06/21(f) |
44,465 | 44,482,823 | ||||||
Hyundai
Capital America |
17,710 | 17,703,436 | ||||||
1.00%, 09/17/24(a) |
8,105 | 8,025,444 | ||||||
Nissan Motor Acceptance Co. LLC, 1.13%, 09/16/24(a) |
10,520 | 10,436,810 | ||||||
Nissan
Motor Acceptance Corp. |
4,375 | 4,376,972 | ||||||
1.05%, 03/08/24(a) |
12,515 | 12,432,306 | ||||||
Stellantis NV, 5.25%, 04/15/23 |
9,400 | 9,989,944 | ||||||
Volkswagen
Group of America Finance LLC |
44,345 | 44,373,539 | ||||||
2.70%, 09/26/22(a) |
2,145 | 2,187,061 | ||||||
2.90%, 05/13/22(a) |
35,500 | 35,967,644 | ||||||
4.25%, 11/13/23(a) |
13,000 | 13,864,314 | ||||||
|
|
|||||||
382,419,209 | ||||||||
Banks — 23.2% | ||||||||
Banco
Santander SA |
21,200 | 21,135,188 | ||||||
1.24%, 04/12/23, (3 mo. LIBOR US + 1.120%)(b) |
10,000 | 10,127,851 | ||||||
3.85%, 04/12/23 |
9,291 | 9,705,858 | ||||||
Bank
of America Corp. |
||||||||
1.12%,
04/24/23 (Call 04/24/22), |
12,500 | 12,553,760 | ||||||
1.29%,
01/20/23 (Call 01/20/22), |
24,475 | 24,533,099 | ||||||
3.00%,
12/20/23 (Call 12/20/22), |
59,185 | 60,734,365 | ||||||
3.55%, 03/05/24 (Call 03/05/23)(b) |
30,000 | 31,115,645 | ||||||
Banque Federative du Credit Mutuel SA, 2.13%, 11/21/22(a) |
20,000 | 20,357,670 | ||||||
Barclays Bank PLC, 1.70%, 05/12/22 (Call 04/12/22)(f) |
15,000 | 15,092,937 | ||||||
Barclays PLC |
||||||||
1.50%,
05/16/24 (Call 05/16/23), |
41,000 | 41,641,951 | ||||||
1.55%,
02/15/23 (Call 02/15/22), |
20,000 | 20,067,357 |
Security |
Par (000) |
Value | ||||||
Banks (continued) |
||||||||
BPCE
SA |
$ | 15,000 | $ | 15,264,393 | ||||
3.00%, 05/22/22(a) |
17,993 | 18,249,102 | ||||||
Canadian Imperial Bank of Commerce, 0.45%, 06/22/23 |
27,680 | 27,578,644 | ||||||
Citigroup Inc. |
||||||||
0.82%,
10/27/22 (Call 09/27/22), |
10,000 | 10,053,784 | ||||||
2.31%,
11/04/22 (Call 11/04/21), |
10,000 | 10,000,898 | ||||||
2.70%, 10/27/22 (Call 09/27/22) |
34,100 | 34,788,171 | ||||||
2.88%,
07/24/23 (Call 07/24/22), |
10,000 | 10,162,064 | ||||||
2.90%, 12/08/21 (Call 11/08/21) |
18,350 | 18,358,370 | ||||||
Citizens
Bank N.A./Providence RI, 0.84%, 02/14/22 |
30,000 | 30,029,828 | ||||||
Cooperatieve
Rabobank UA, 0.99%, 09/26/23, |
10,000 | 10,123,682 | ||||||
Credit Suisse AG/New York NY, 0.52%, 08/09/23(f) |
25,000 | 24,949,478 | ||||||
Credit
Suisse Group AG |
10,000 | 10,054,821 | ||||||
3.80%, 06/09/23 |
8,500 | 8,898,501 | ||||||
Credit Suisse Group Funding Guernsey Ltd., 3.80%, 09/15/22 |
15,000 | 15,426,694 | ||||||
Danske
Bank A/S |
15,000 | 15,112,605 | ||||||
5.00%, 01/12/22(a) |
23,888 | 24,089,729 | ||||||
Federation des Caisses Desjardins du Quebec, 0.48%, 05/21/24, (SOFR + 0.430%)(a)(b) |
20,000 | 20,036,000 | ||||||
Goldman
Sachs Group Inc. (The) |
25,000 | 24,954,091 | ||||||
1.12%,
07/24/23 (Call 07/24/22), |
5,000 | 5,024,535 | ||||||
1.72%, 11/29/23, (3 mo. LIBOR US + 1.600%)(b) |
14,100 | 14,469,136 | ||||||
3.20%, 02/23/23 (Call 01/23/23) |
7,583 | 7,812,000 | ||||||
0.48%, 01/27/23 (Call 01/27/22) |
26,400 | 26,328,062 | ||||||
HSBC
Holdings PLC |
11,120 | 11,071,958 | ||||||
1.34%,
03/11/25 (Call 03/11/24), |
13,000 | 13,241,228 | ||||||
3.60%, 05/25/23(f) |
10,000 | 10,452,348 | ||||||
Huntington
National Bank (The), 2.50%, 08/07/22 |
15,430 | 15,662,843 | ||||||
ING
Groep NV, 1.28%, 03/29/22, |
3,500 | 3,516,992 | ||||||
JPMorgan Chase & Co. |
||||||||
1.02%,
04/25/23 (Call 04/25/22), |
9,175 | 9,212,929 | ||||||
2.78%,
04/25/23 (Call 04/25/22), |
16,000 | 16,173,121 | ||||||
3.25%, 09/23/22 |
5,000 | 5,129,461 | ||||||
3.56%,
04/23/24 (Call 04/23/23), |
29,700 | 30,911,034 | ||||||
Lloyds
Banking Group PLC, 2.86%, 03/17/23 |
32,000 | 32,274,462 | ||||||
Mitsubishi UFJ Financial Group Inc. |
||||||||
0.91%, 07/25/22, (3 mo. LIBOR US + 0.790%)(b) |
3,250 | 3,265,250 | ||||||
2.62%, 07/18/22(f) |
5,000 | 5,077,648 | ||||||
2.67%, 07/25/22(f) |
5,000 | 5,081,350 | ||||||
3.00%, 02/22/22(f) |
5,000 | 5,040,859 |
16 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security |
Par (000) |
Value | ||||||
Banks (continued) |
||||||||
Mizuho Financial Group Inc. |
||||||||
0.76%,
05/25/24 (Call 05/25/23), |
$ | 10,000 | $ | 10,059,368 | ||||
0.91%, 03/05/23, (3 mo. LIBOR US + 0.790%)(b) |
3,000 | 3,028,570 | ||||||
0.96%,
09/13/23 (Call 09/13/22), |
25,000 | 25,157,799 | ||||||
3.55%, 03/05/23(f) |
20,000 | 20,773,526 | ||||||
Morgan Stanley |
||||||||
0.53%,
01/25/24 (Call 01/25/23), |
20,000 | 19,957,916 | ||||||
1.52%,
10/24/23 (Call 10/24/22), |
24,025 | 24,316,915 | ||||||
3.75%, 02/25/23(f) |
25,000 | 26,013,460 | ||||||
MUFG Americas Holdings Corp., 3.50%, 06/18/22 |
2,885 | 2,942,548 | ||||||
National
Bank of Canada, 0.54%, 08/06/24, |
8,695 | 8,719,259 | ||||||
Natwest Group PLC |
||||||||
1.59%,
05/15/23 (Call 05/15/22), |
9,895 | 9,961,797 | ||||||
1.68%,
06/25/24 (Call 06/25/23), |
3,000 | 3,060,520 | ||||||
3.50%, 05/15/23 (Call 05/15/22), (3 mo. LIBOR US + 1.48%(b)(f) |
8,500 | 8,625,061 | ||||||
3.88%, 09/12/23 |
20,000 | 21,079,178 | ||||||
Santander
Holdings USA Inc., 4.45%, 12/03/21 |
1,278 | 1,281,658 | ||||||
Skandinaviska
Enskilda Banken AB, 0.76%, 12/12/22, |
15,000 | 15,086,246 | ||||||
Sumitomo
Mitsui Financial Group Inc. |
4,000 | 4,049,282 | ||||||
2.78%, 07/12/22(f) |
5,000 | 5,084,534 | ||||||
UBS
AG/London |
15,725 | 15,808,500 | ||||||
1.75%, 04/21/22 (Call 03/21/22)(a)(f) |
12,680 | 12,744,832 | ||||||
UBS Group AG |
||||||||
1.35%,
05/23/23 (Call 05/23/22), |
20,000 | 20,124,818 | ||||||
3.49%, 05/23/23 (Call 05/23/22)(a)(f) |
20,000 | 20,315,351 | ||||||
UniCredit SpA, 3.75%, 04/12/22(a) |
17,595 | 17,835,954 | ||||||
Wells
Fargo & Co., 1.36%, 10/31/23 |
14,250 | 14,408,036 | ||||||
|
|
|||||||
1,125,376,880 | ||||||||
Beverages — 0.2% | ||||||||
Keurig
Dr Pepper Inc., 0.75%, 03/15/24 |
11,955 | 11,900,235 | ||||||
|
|
|||||||
Biotechnology — 0.7% | ||||||||
Gilead
Sciences Inc., 0.75%, 09/29/23 |
34,250 | 34,178,127 | ||||||
|
|
|||||||
Building Materials — 0.2% | ||||||||
Martin
Marietta Materials Inc., 0.65%, 07/15/23 |
8,800 | 8,798,163 | ||||||
|
|
|||||||
Chemicals — 0.4% | ||||||||
DuPont
de Nemours Inc., 4.21%, 11/15/23 |
2,000 | 2,132,032 | ||||||
International
Flavors & Fragrances Inc. |
5,500 | 5,504,593 | ||||||
3.20%, 05/01/23 (Call 02/01/23)(f) |
9,000 | 9,271,732 |
Security |
Par (000) |
Value | ||||||
Chemicals (continued) |
||||||||
Sherwin-Williams
Co. (The), 2.75%, 06/01/22 |
$ | 1,254 | $ | 1,267,339 | ||||
|
|
|||||||
18,175,696 | ||||||||
Computers — 1.0% | ||||||||
Dell
International LLC/EMC Corp., 5.45%, 06/15/23 |
39,100 | 41,637,229 | ||||||
International Business Machines Corp., 2.85%, 05/13/22 |
7,500 | 7,603,439 | ||||||
|
|
|||||||
49,240,668 | ||||||||
Diversified Financial Services — 5.8% | ||||||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 1.15%, 10/29/23(f) |
35,000 | 34,999,512 | ||||||
Air Lease Corp. |
||||||||
0.47%, 12/15/22, (3 mo. LIBOR US + 0.350%)(b)(f) |
28,600 | 28,603,709 | ||||||
0.70%, 02/15/24 (Call 01/15/24)(f) |
4,940 | 4,883,757 | ||||||
3.88%, 07/03/23 (Call 06/03/23) |
6,138 | 6,418,268 | ||||||
Ally Financial Inc., 4.13%, 02/13/22(f) |
25,510 | 25,775,061 | ||||||
American Express Co. |
||||||||
0.77%,
02/27/23 (Call 01/27/23), |
4,000 | 4,024,816 | ||||||
2.50%, 08/01/22 (Call 07/01/22) |
15,000 | 15,202,570 | ||||||
3.40%, 02/27/23 (Call 01/27/23) |
22,632 | 23,425,675 | ||||||
Aviation
Capital Group LLC, 3.88%, 05/01/23 |
20,340 | 21,137,844 | ||||||
Capital
One Bank USA N.A., 2.01%, 01/27/23 |
10,000 | 10,034,999 | ||||||
Capital One Financial Corp. |
||||||||
1.07%,
03/09/22 (Call 02/09/22), |
24,635 | 24,690,177 | ||||||
2.60%, 05/11/23 (Call 04/11/23)(f) |
14,250 | 14,646,235 | ||||||
3.20%, 01/30/23 (Call 12/30/22)(f) |
10,000 | 10,304,777 | ||||||
Charles
Schwab Corp. (The), 0.55%, 03/18/24 |
34,625 | 34,755,814 | ||||||
International Lease Finance Corp., 5.88%, 08/15/22 |
22,025 | 22,936,602 | ||||||
|
|
|||||||
281,839,816 | ||||||||
Electric — 3.2% | ||||||||
Dominion
Energy Inc., Series D, 0.65%, 09/15/23 |
11,125 | 11,127,822 | ||||||
Duke
Energy Corp., 0.30%, 06/10/23, |
13,865 | 13,867,204 | ||||||
NextEra Energy Capital Holdings Inc. |
||||||||
0.40%,
02/22/23 (Call 11/29/21), |
26,954 | 26,955,056 | ||||||
0.59%, 03/01/23, (SOFR + 0.540%)(b) |
5,580 | 5,601,762 | ||||||
0.65%, 03/01/23(f) |
24,795 | 24,822,884 | ||||||
1.00%,
11/03/23 (Call 05/03/22), |
24,300 | 24,313,851 | ||||||
2.90%, 04/01/22(f) |
13,665 | 13,805,987 | ||||||
Pacific
Gas and Electric Co., 1.50%, 11/15/21, |
10,865 | 10,866,007 | ||||||
Southern California Edison Co., 0.70%, 04/03/23 |
26,380 | 26,354,119 | ||||||
|
|
|||||||
157,714,692 | ||||||||
Food — 0.4% |
||||||||
General Mills Inc. 1.13%, 10/17/23, (3 mo. LIBOR US + 1.010%)(b) |
2,696 | 2,746,794 | ||||||
2.60%, 10/12/22 (Call 09/12/22) |
9,135 | 9,299,217 | ||||||
Tyson Foods Inc., 4.50%, 06/15/22 (Call 03/15/22)(f) |
7,930 | 8,051,716 | ||||||
|
|
|||||||
20,097,727 |
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 (continued) October 31, 2021 |
BlackRock Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security |
Par (000) |
Value | ||||||
Gas — 0.6% | ||||||||
Atmos Energy Corp., 0.63%, 03/09/23 (Call 11/15/21) |
$ | 7,875 | $ | 7,871,117 | ||||
ONE Gas Inc., 0.85%, 03/11/23 (Call 11/29/21) |
20,000 | 20,005,369 | ||||||
|
|
|||||||
27,876,486 | ||||||||
Health Care - Products — 0.3% | ||||||||
Thermo
Fisher Scientific Inc., 0.58%, 10/18/24 |
12,850 | 12,869,162 | ||||||
|
|
|||||||
Health Care - Services — 0.9% | ||||||||
Anthem Inc., 3.13%, 05/15/22 |
27,841 | 28,245,938 | ||||||
Humana
Inc., 0.65%, 08/03/23 |
13,100 | 13,085,972 | ||||||
|
|
|||||||
41,331,910 | ||||||||
Household Products & Wares — 0.2% | ||||||||
Avery
Dennison Corp., 0.85%, 08/15/24 |
10,440 | 10,369,592 | ||||||
|
|
|||||||
Machinery — 0.3% | ||||||||
Caterpillar
Financial Services Corp., 0.63%, 05/15/23, |
9,700 | 9,752,457 | ||||||
Rockwell
Automation Inc., 0.35%, 08/15/23 |
3,870 | 3,861,042 | ||||||
|
|
|||||||
13,613,499 | ||||||||
Manufacturing — 0.2% | ||||||||
Carlisle
Companies Inc., 0.55%, 09/01/23 |
9,115 | 9,080,668 | ||||||
|
|
|||||||
Media — 1.9% | ||||||||
Charter
Communications Operating LLC/Charter |
18,300 | 18,754,557 | ||||||
4.46%, 07/23/22 (Call 05/23/22) |
74,455 | 75,970,792 | ||||||
|
|
|||||||
94,725,349 | ||||||||
Oil & Gas — 0.4% | ||||||||
Phillips 66, 0.90%, 02/15/24 (Call 11/29/21) |
19,550 | 19,499,521 | ||||||
|
|
|||||||
Pharmaceuticals — 5.6% | ||||||||
AbbVie
Inc. |
24,400 | 24,420,910 | ||||||
2.30%, 11/21/22 |
10,000 | 10,173,203 | ||||||
2.90%, 11/06/22(f) |
35,000 | 35,795,502 | ||||||
3.45%, 03/15/22 (Call 01/15/22)(f) |
34,625 | 34,838,136 | ||||||
Bayer U.S. Finance II LLC |
||||||||
1.13%,
12/15/23 (Call 11/15/23), |
32,500 | 32,923,168 | ||||||
3.88%, 12/15/23 (Call 11/15/23)(a) |
15,000 | 15,835,926 | ||||||
Bristol-Myers Squibb Co., 2.60%, 05/16/22(f) |
10,400 | 10,531,064 | ||||||
Cigna Corp., 0.61%, 03/15/24 (Call 03/15/22) |
9,510 | 9,449,178 | ||||||
CVS
Health Corp. |
15,000 | 15,271,787 | ||||||
3.50%, 07/20/22 (Call 05/20/22) |
33,590 | 34,128,068 | ||||||
Shire Acquisitions Investments Ireland DAC, 2.88%, 09/23/23 (Call 07/23/23)(f) |
24,550 | 25,440,332 | ||||||
Takeda
Pharmaceutical Co. Ltd., 4.40%, 11/26/23 |
20,000 | 21,405,111 | ||||||
|
|
|||||||
270,212,385 | ||||||||
Pipelines — 1.7% | ||||||||
Enbridge Inc. |
||||||||
0.45%, 02/17/23, (SOFR + 0.400%)(b) |
3,130 | 3,136,032 | ||||||
0.55%, 10/04/23(f) |
2,805 | 2,796,723 | ||||||
4.00%, 10/01/23 (Call 07/01/23) |
6,000 | 6,310,236 |
Security |
Par (000) |
Value | ||||||
Pipelines (continued) | ||||||||
Energy
Transfer LP |
$ | 10,000 | $ | 10,233,198 | ||||
3.60%, 02/01/23 (Call 11/01/22)(f) |
6,400 | 6,573,664 | ||||||
4.25%, 03/15/23 (Call 12/15/22) |
8,250 | 8,552,698 | ||||||
Williams
Companies Inc. (The), 3.60%, 03/15/22 |
43,799 | 44,069,341 | ||||||
|
|
|||||||
81,671,892 | ||||||||
Retail — 0.7% | ||||||||
7-Eleven Inc., 0.63%, 02/10/23 |
34,250 | 34,192,391 | ||||||
|
|
|||||||
Semiconductors — 0.1% | ||||||||
Analog
Devices Inc., 0.30%, 10/01/24, |
5,025 | 5,030,106 | ||||||
|
|
|||||||
Software — 1.6% | ||||||||
Fidelity National Information Services Inc., 0.38%, 03/01/23 |
32,759 | 32,655,235 | ||||||
Fiserv Inc., 3.80%, 10/01/23 (Call 09/01/23) |
4,000 | 4,219,620 | ||||||
Oracle Corp., 2.40%, 09/15/23 (Call 07/15/23) |
8,000 | 8,220,843 | ||||||
VMware Inc., 0.60%, 08/15/23(f) |
34,000 | 33,933,601 | ||||||
|
|
|||||||
79,029,299 | ||||||||
Telecommunications — 1.2% | ||||||||
AT&T Inc. |
||||||||
0.69%,
03/25/24 (Call 03/25/22), |
22,000 | 22,020,731 | ||||||
1.29%, 06/12/24, (3 mo. LIBOR US + 1.180%)(b) |
15,000 | 15,323,997 | ||||||
Verizon Communications Inc. |
||||||||
0.55%, 03/22/24, (SOFR + 0.500%)(b) |
12,565 | 12,625,563 | ||||||
1.22%,
05/15/25 (Call 03/15/25), |
10,000 | 10,221,280 | ||||||
|
|
|||||||
60,191,571 | ||||||||
Transportation — 0.6% | ||||||||
Ryder
System Inc. |
5,000 | 5,030,326 | ||||||
3.65%, 03/18/24 (Call 02/18/24)(f) |
19,250 | 20,443,967 | ||||||
3.88%, 12/01/23 (Call 11/01/23) |
5,000 | 5,302,439 | ||||||
|
|
|||||||
30,776,732 | ||||||||
Trucking & Leasing — 0.3% | ||||||||
Penske
Truck Leasing Co. LP/PTL Finance Corp. |
10,000 | 10,242,240 | ||||||
4.88%, 07/11/22(a) |
4,901 | 5,045,554 | ||||||
|
|
|||||||
15,287,794 | ||||||||
Total
Corporate Bonds & Notes — 60.1% |
|
2,920,378,117 | ||||||
|
|
|||||||
Repurchase Agreements(b)(g) |
||||||||
Goldman Sachs & Co., 0.57%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $125,005,938, collateralized by non-agency mortgage-backed security, 0.30% to 7.75%, due 09/30/22 to 01/25/41, par and fair value of $154,034,408 and $131,250,000, respectively) (Call 11/27/21) |
125,000 | 125,000,000 | ||||||
|
|
|||||||
Total
Repurchase Agreements — 2.6% |
|
125,000,000 | ||||||
|
|
18 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Short Maturity Bond ETF (Percentages shown are based on Net Assets) |
Security | Shares (000) |
Value | ||||||
Money Market Funds | ||||||||
BlackRock
Cash Funds: Institutional, |
49,864 | $ | 49,889,059 | |||||
BlackRock
Cash Funds: Treasury, |
208,310 | 208,310,000 | ||||||
|
|
|||||||
Total
Money Market Funds — 5.3% |
|
258,199,059 | ||||||
|
|
|||||||
Total
Investments in Securities — 101.2% |
|
4,911,869,690 | ||||||
Other Assets, Less Liabilities — (1.2)% |
|
(57,669,658 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
$ | 4,854,200,032 | ||||||
|
|
(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) |
Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
(c) |
This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(d) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(e) |
Rates are discount rates or a range of discount rates as of period end. |
(f) |
All or a portion of this security is on loan. |
(g) |
Maturity date represents next reset date. |
(h) |
Affiliate of the Fund. |
(i) |
Annualized 7-day yield as of period end. |
(j) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
|
||||||||||||||||||||||||||||||||||||
Affiliated Issuer | Value
at 10/31/20 |
Purchases
at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value
at 10/31/21 |
Shares Held at 10/31/21 (000) |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 27,236,958 | $ | 22,659,842 | (a) | $ | — | $ | (5,160 | ) | $ | (2,581 | ) | $ | 49,889,059 | 49,864 | $ | 69,595 | (b) | $ | — | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
66,830,000 | 141,480,000 | (a) | — | — | — | 208,310,000 | 208,310 | 63,163 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (5,160 | ) | $ | (2,581 | ) | $ | 258,199,059 | $ | 132,758 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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. |
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 (continued) October 31, 2021 |
BlackRock Short Maturity Bond ETF
|
Derivative Financial Instruments Outstanding as of Period End
Forward Foreign Currency Exchange Contracts
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) |
||||||||||||||||||||
USD | 13,115,162 | EUR | 11,333,000 | BBP | 12/15/21 | $ | 637 | |||||||||||||||||
USD | 22,443,996 | EUR | 19,131,000 | SSB | 12/15/21 | 305,642 | ||||||||||||||||||
USD | 4,649,842 | GBP | 3,369,000 | GS | 12/15/21 | 38,506 | ||||||||||||||||||
USD | 28,324,931 | GBP | 20,536,000 | SSB | 12/15/21 | 216,180 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
560,965 | ||||||||||||||||||||||||
|
|
|||||||||||||||||||||||
USD | 15,767,795 | GBP | 11,585,000 | SSB | 12/15/21 | (89,230 | ) | |||||||||||||||||
|
|
|||||||||||||||||||||||
Net unrealized appreciation | $ | 471,735 | ||||||||||||||||||||||
|
|
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:
|
||||
Foreign Currency Exchange Contracts |
||||
|
||||
Assets — Derivative Financial Instruments |
||||
Forward foreign currency exchange contracts |
||||
Unrealized appreciation on forward foreign currency exchange contracts |
$ | 560,965 | ||
|
|
|||
Liabilities — Derivative Financial Instruments |
||||
Forward foreign currency exchange contracts |
||||
Unrealized depreciation on forward foreign currency exchange contracts |
$ | 89,230 | ||
|
|
For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||
Foreign Currency Exchange Contracts |
||||
|
||||
Net Realized Gain (Loss) from: |
||||
Forward foreign currency exchange contracts |
$ | (3,524,633 | ) | |
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Forward foreign currency exchange contracts |
$ | 1,145,432 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Forward foreign currency exchange contracts: |
||||
Average amounts sold — in USD |
$ | 43,550,635 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments - Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
|
||||||||
Assets | Liabilities | |||||||
|
||||||||
Derivative Financial Instruments: |
||||||||
Forward foreign currency exchange contracts |
$ | 560,965 | $ | 89,230 | ||||
|
|
|
|
|||||
Total derivative assets and liabilities in the Statement of Assets and Liabilities |
560,965 | 89,230 | ||||||
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) |
— | — | ||||||
|
|
|
|
|||||
Total derivative assets and liabilities subject to an MNA |
560,965 | 89,230 | ||||||
|
|
|
|
20 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Short Maturity Bond ETF
|
The following tables present the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
|
||||||||||||||||||||
Counterparty |
Derivative an MNA by |
Derivatives Available for Offset(a) |
Non-Cash Collateral Received |
Cash Collateral Received |
Net Amount of Derivative Assets(b)(c) |
|||||||||||||||
|
||||||||||||||||||||
Barclays Bank PLC Wholesale |
$ | 637 | $ | — | $ | — | $ | — | $ | 637 | ||||||||||
Goldman Sachs & Co. |
38,506 | — | — | — | 38,506 | |||||||||||||||
State Street Bank and Trust Co. |
521,822 | (89,230 | ) | — | — | 432,592 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 560,965 | $ | (89,230 | ) | $ | — | $ | — | $ | 471,735 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Counterparty |
|
Derivative an MNA by |
|
|
Derivatives Available for Offset(a) |
|
|
Non-Cash Collateral Pledged |
|
|
Cash Collateral Pledged |
|
|
Net Amount of Derivative Liabilities |
| |||||
|
||||||||||||||||||||
State Street Bank and Trust Co. |
$ | 89,230 | $ | (89,230 | ) | $ | — | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA. |
(b) |
Net amount represents the net amount receivable from the counterparty in the event of default. |
(c) |
Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized. |
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 |
||||||||||||||||
Asset-Backed Securities |
$ | — | $ | 963,967,893 | $ | 2,050,000 | $ | 966,017,893 | ||||||||
Certificates of Deposit |
— | 53,101,044 | — | 53,101,044 | ||||||||||||
Collaterized Mortgage Obligations |
— | 333,630,814 | — | 333,630,814 | ||||||||||||
Commercial Paper |
— | 255,542,763 | — | 255,542,763 | ||||||||||||
Corporate Bonds & Notes |
— | 2,920,378,117 | — | 2,920,378,117 | ||||||||||||
Repurchase Agreements |
— | 125,000,000 | — | 125,000,000 | ||||||||||||
Money Market Funds |
258,199,059 | — | — | 258,199,059 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 258,199,059 | $ | 4,651,620,631 | $ | 2,050,000 | $ | 4,911,869,690 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Forward Foreign Currency Exchange Contracts |
$ | — | $ | 560,965 | $ | — | $ | 560,965 | ||||||||
Liabilities |
||||||||||||||||
Forward Foreign Currency Exchange Contracts |
— | (89,230 | ) | — | (89,230 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | — | $ | 471,735 | $ | — | $ | 471,735 | |||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are forward foreign currency exchange contracts. Forward foreign currency exchange 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 October 31, 2021 |
BlackRock Short Maturity Municipal Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||
Municipal Debt Obligations |
||||||||
Alabama — 3.6% | ||||||||
Black
Belt Energy Gas District RB |
$ | 485 | $ | 486,404 | ||||
4.00%, 06/01/22 |
170 | 173,536 | ||||||
4.00%, 12/01/22 |
240 | 249,236 | ||||||
4.00%, 06/01/23 |
240 | 253,360 | ||||||
4.00%, 12/01/24 |
1,250 | 1,378,989 | ||||||
Series
A, VRDN, 4.00%, 08/01/47 |
4,000 | 4,079,904 | ||||||
Lower Alabama Gas District (The) RB, 4.00%, 12/01/21 |
200 | 200,586 | ||||||
Southeast Alabama Gas Supply District (The) RB, Series A, 4.00%, 06/01/22 |
1,500 | 1,532,053 | ||||||
Southeast Energy Authority A Cooperative District RB |
||||||||
Series A, 4.00%, 10/01/22 |
355 | 367,022 | ||||||
Series A, 4.00%, 10/01/23 |
450 | 480,921 | ||||||
Series B, 4.00%, 06/01/24 |
1,200 | 1,309,680 | ||||||
|
|
|||||||
10,511,691 | ||||||||
Alaska — 0.1% | ||||||||
Alaska Municipal Bond Bank Authority RB, 5.00%, 12/01/21 |
400 | 401,477 | ||||||
|
|
|||||||
California — 0.7% | ||||||||
California County Tobacco Securitization Agency RB, Series A, 4.00%, 06/01/22 |
545 | 556,050 | ||||||
State of California GO, 5.00%, 12/01/24 |
1,190 | 1,357,458 | ||||||
|
|
|||||||
1,913,508 | ||||||||
Colorado — 0.1% | ||||||||
City & County of Denver Co. Airport System Revenue RB, Series A, 5.00%, 11/15/23 |
250 | 273,515 | ||||||
|
|
|||||||
Connecticut — 2.2% | ||||||||
Connecticut State Health & Educational Facilities Authority RB, 4.00%, 07/01/22 |
500 | 510,814 | ||||||
State of Connecticut GO |
||||||||
Series A, 3.00%, 01/15/23 |
2,000 | 2,064,320 | ||||||
Series
C, VRDN, 0.07%, 05/15/34 |
1,920 | 1,920,000 | ||||||
Series C, 3.00%, 06/01/22 |
900 | 914,333 | ||||||
Series C, 5.00%, 07/15/22 |
900 | 929,938 | ||||||
State of Connecticut Special Tax Revenue ST, Series A, 5.00%, 05/01/22 |
200 | 204,803 | ||||||
|
|
|||||||
6,544,208 | ||||||||
District of Columbia — 3.5% | ||||||||
District
of Columbia RB, 0.12%, 04/01/38 |
2,890 | 2,890,000 | ||||||
Metropolitan Washington Airports Authority RB, 5.00%, 10/01/22 |
1,200 | 1,251,144 | ||||||
Tender
Option Bond Trust Receipts/Certificates RB, Series 2019, 0.10%,
10/01/53 |
6,135 | 6,135,000 | ||||||
|
|
|||||||
10,276,144 | ||||||||
Florida — 2.5% | ||||||||
Alachua County Health Facilities Authority RB, 5.00%, 12/01/21 |
390 | 391,515 | ||||||
County of Miami-Dade FL Aviation Revenue RB, Series A, 5.00%, 10/01/23 |
2,500 | 2,721,357 | ||||||
County
of Palm Beach FL RB, 0.07%, 07/01/32 |
2,800 | 2,800,000 | ||||||
Miami-Dade County Industrial Development Authority RB, 0.40%, 08/01/23 |
1,000 | 996,967 | ||||||
Tender
Option Bond Trust Receipts/Certificates RB, Series 2020, 0.09%,
07/01/49 |
500 | 500,000 | ||||||
|
|
|||||||
7,409,839 |
Security |
Par (000) |
Value | ||||||
Georgia — 9.1% | ||||||||
Atlanta Urban Residential Finance Authority RB, 1.36%, 12/01/22 (Put 12/01/21)(a)(b) |
$ | 2,000 | $ | 2,001,648 | ||||
Bartow County Development Authority RB, 1.55%, 08/01/43 (Put 08/19/22)(a)(b) |
2,000 | 2,018,132 | ||||||
Burke County Development Authority RB, 2.25%, 10/01/32 (Put 05/25/23)(a)(b) |
2,000 | 2,053,526 | ||||||
Main Street Natural Gas Inc. RB |
||||||||
Series
A, VRDN, 4.00%, 04/01/48 |
5,685 | 6,026,731 | ||||||
Series
D, VRDN, 0.89%, 08/01/48 |
5,000 | 5,057,415 | ||||||
Monroe County Development Authority RB, 0.08%, 06/01/49(a)(b) |
3,700 | 3,700,000 | ||||||
Municipal Electric Authority of Georgia RB |
||||||||
5.00%, 01/01/22 |
3,000 | 3,023,094 | ||||||
Series
B, VRDN, 0.06%, 01/01/48 |
1,000 | 1,000,000 | ||||||
Tender Option Bond Trust Receipts/Certificates RB, Series 2019, 0.10%, 01/01/44 (Put 07/01/28) (AGM)(a)(b)(c) |
1,700 | 1,700,000 | ||||||
|
|
|||||||
26,580,546 | ||||||||
Illinois — 2.4% | ||||||||
Illinois Development Finance Authority RB |
||||||||
VRDN, 0.05%, 02/01/33 (Put 11/05/21)(a)(b) |
2,000 | 2,000,000 | ||||||
VRDN, 0.06%, 06/01/29 (Put 11/05/21)(a)(b) |
1,100 | 1,100,000 | ||||||
Tender
Option Bond Trust Receipts/Certificates GO, Series 2015, 0.09%,
03/01/33 |
4,000 | 4,000,000 | ||||||
|
|
|||||||
7,100,000 | ||||||||
Indiana — 2.8% | ||||||||
City
of Rockport IN RB, Series B, 1.35%, 07/01/25 |
2,250 | 2,262,157 | ||||||
Indiana Finance Authority RB |
||||||||
Series
A1, VRDN, 0.07%, 02/01/35 |
2,500 | 2,500,000 | ||||||
Series B, VRDN, 0.03%, 11/01/39 (a)(b) |
1,400 | 1,400,000 | ||||||
Indianapolis Local Public Improvement Bond Bank RB, Series A, 5.00%, 06/01/23 |
1,800 | 1,928,669 | ||||||
|
|
|||||||
8,090,826 | ||||||||
Iowa — 3.2% | ||||||||
Iowa
Finance Authority RB, 0.09%, 04/01/22 |
9,405 | 9,405,000 | ||||||
|
|
|||||||
Kansas — 2.4% | ||||||||
City of Burlington KS RB |
||||||||
Series
A, VRDN, 0.15%, 09/01/35 |
4,000 | 4,000,000 | ||||||
Series
B, VRDN, 0.15%, 09/01/35 |
3,000 | 3,000,000 | ||||||
|
|
|||||||
7,000,000 | ||||||||
Kentucky — 7.9% | ||||||||
County of Meade KY RB |
||||||||
0.06%, 08/01/61 (a)(b) |
10,000 | 9,999,891 | ||||||
VRDN, 0.06%, 08/01/61 (a)(b) |
2,500 | 2,500,000 | ||||||
Kentucky Public Energy Authority RB, Series A, 4.00%, 04/01/48 (Put 04/01/24)(a)(b) |
3,930 | 4,231,647 | ||||||
Kentucky State Property & Building Commission RB, Series A, 5.00%, 11/01/22 |
1,000 | 1,047,204 | ||||||
Louisville/Jefferson
County Metropolitan Government RB, 0.07%, 06/01/33 |
5,000 | 5,000,000 | ||||||
Tender Option Bond Trust Receipts/Certificates RB, Series 2018, 0.08%, 12/01/41 (Put 12/01/27) (AGM)(a)(b)(c) |
500 | 500,000 | ||||||
|
|
|||||||
23,278,742 | ||||||||
Louisiana — 2.0% | ||||||||
Consolidated Govt of the City of Baton Rouge & Parish of E Baton Rouge Sales Tax RB, 5.00%, 08/01/22 (AGM) |
465 | 481,018 |
22 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Short Maturity Municipal Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||
Louisiana (continued) | ||||||||
Louisiana Offshore Terminal Authority RB, 1.65%, 09/01/27 (Put 12/01/23)(a)(b) |
$ | 400 | $ | 407,875 | ||||
Louisiana Stadium & Exposition District RB, 4.00%, 07/03/23 (Call 04/01/23) |
2,325 | 2,441,413 | ||||||
Parish
of St Charles LA RB, 4.00%, 12/01/40 |
2,345 | 2,393,781 | ||||||
|
|
|||||||
5,724,087 | ||||||||
Massachusetts — 0.7% | ||||||||
Massachusetts Housing Finance Agency RB |
||||||||
Series A, 0.30%, 12/01/23 (Call 06/01/22) |
1,000 | 999,493 | ||||||
Series A, 0.40%, 06/01/24 (Call 06/01/23) |
1,000 | 999,761 | ||||||
|
|
|||||||
1,999,254 | ||||||||
Michigan — 1.4% | ||||||||
Michigan Finance Authority RB |
||||||||
VRDN, 0.40%, 10/15/23 |
665 | 666,227 | ||||||
5.00%, 11/01/22 |
240 | 251,014 | ||||||
5.00%, 12/01/22 |
1,390 | 1,461,311 | ||||||
Series A, 4.00%, 06/01/22 |
1,000 | 1,020,502 | ||||||
Wayne-Westland Community Schools GO, 4.00%, 11/01/21 (Q-SBLF) |
780 | 780,160 | ||||||
|
|
|||||||
4,179,214 | ||||||||
Mississippi — 3.4% | ||||||||
Mississippi Business Finance Corp. RB, Series A, 0.06%, 12/01/30 (Put 11/01/21)(a)(b) |
10,000 | 10,000,000 | ||||||
|
|
|||||||
Missouri — 0.9% | ||||||||
City of Washington MO COP, 5.00%, 03/01/22 |
350 | 355,438 | ||||||
County of Greene MO COP, Series A, 3.00%, 03/01/23 |
350 | 362,196 | ||||||
RBC Municipal Products Inc. Trust RB, Series C, 0.11%, 09/01/39 (Put 11/05/21)(a)(b)(c) |
2,000 | 2,000,000 | ||||||
|
|
|||||||
2,717,634 | ||||||||
Nebraska — 0.4% | ||||||||
Central Plains Energy Project RB, 5.00%, 03/01/50 (Put 10/01/23)(a)(b) |
1,000 | 1,089,235 | ||||||
Douglas County Hospital Authority No. 2 RB, 5.00%, 11/15/21 |
120 | 120,203 | ||||||
|
|
|||||||
1,209,438 | ||||||||
Nevada — 0.8% | ||||||||
County of Clark Department of Aviation RB, 5.00%, 07/01/22 . |
2,165 | 2,233,578 | ||||||
|
|
|||||||
New Jersey — 16.1% | ||||||||
Borough of Park Ridge NJ GO, 1.00%, 04/29/22 |
800 | 802,344 | ||||||
Jersey City Municipal Utilities Authority RB, 3.00%, 07/01/22 |
4,000 | 4,072,004 | ||||||
New Jersey Economic Development Authority RB 5.00%, 06/15/22 |
200 | 205,726 | ||||||
5.25%, 09/01/24 (c) |
7,600 | 8,576,045 | ||||||
Series A, 4.00%, 07/01/22 |
2,000 | 2,047,220 | ||||||
Series AAA, 5.00%, 06/15/22 |
1,000 | 1,028,629 | ||||||
Series B, 5.00%, 11/01/23 (SAP) |
1,450 | 1,580,555 | ||||||
Series B, 5.00%, 11/01/24 |
1,010 | 1,141,061 | ||||||
Series NN, 5.00%, 03/01/22 |
3,875 | 3,934,539 | ||||||
Series NN, 5.00%, 03/01/23 |
1,000 | 1,060,653 | ||||||
Series UU, 5.00%, 06/15/22 |
2,000 | 2,057,258 | ||||||
Series UU, 5.00%, 06/15/23 |
1,575 | 1,690,660 | ||||||
New Jersey Health Care Facilities Financing Authority RB, 5.00%, 10/01/23 |
1,500 | 1,629,473 | ||||||
New Jersey Transportation Trust Fund Authority RB |
||||||||
Series A, 5.00%, 06/15/22 |
220 | 226,357 | ||||||
Series A, 5.00%, 06/15/22 |
750 | 771,670 |
Security | Par (000) |
Value | ||||||
New Jersey (continued) | ||||||||
Series A, 5.00%, 06/15/24 |
$ | 1,575 | $ | 1,757,571 | ||||
Series A, 5.50%, 12/15/21 |
425 | 427,617 | ||||||
Series A, 5.50%, 12/15/22 |
1,430 | 1,511,447 | ||||||
Series A, 5.50%, 12/15/22 (AGM-CR) |
190 | 201,141 | ||||||
Series A, 5.50%, 12/15/23 |
155 | 171,351 | ||||||
Series B, 5.25%, 12/15/22 (AMBAC) |
910 | 959,271 | ||||||
Series B, 5.50%, 12/15/21 (NPFGC) |
2,475 | 2,490,805 | ||||||
Series D, 5.00%, 12/15/23 |
470 | 514,627 | ||||||
Series D, 5.25%, 12/15/23 |
1,275 | 1,402,319 | ||||||
State of New Jersey GO, Series A, 4.00%, 06/01/23 |
1,290 | 1,361,465 | ||||||
Tobacco Settlement Financing Corp. RB, Series A, 5.00%, 06/01/22 |
3,000 | 3,075,384 | ||||||
Township of Deptford NJ RB, Series A, 1.00%, 07/13/22 |
1,478 | 1,485,724 | ||||||
Township of Evesham NJ GO, 1.00%, 06/14/22 |
988 | 991,734 | ||||||
|
|
|||||||
47,174,650 | ||||||||
New Mexico — 0.2% | ||||||||
New Mexico Municipal Energy Acquisition Authority RB, Series A, 4.00%, 05/01/22 |
600 | 610,789 | ||||||
|
|
|||||||
New York — 10.4% | ||||||||
Albany Industrial Development Agency RB, Series A, 0.16%, 07/01/32 (Put 11/04/21)(a)(b) |
900 | 900,000 | ||||||
Amherst Development Corp. RB, Series A, 0.15%, 02/01/35 (Put 11/05/21)(a)(b) |
1,730 | 1,730,000 | ||||||
Monroe County Industrial Development Corp./NY RB, 5.00%, 12/01/21 |
575 | 577,047 | ||||||
Nassau Health Care Corp. RB, Series C, 5.00%, 08/01/23 (GTD) |
1,425 | 1,539,262 | ||||||
New York City Housing Development Corp. RB, 0.45%, 11/01/25 (FHA) |
1,560 | 1,548,949 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue RB, Series A4, 0.04%, 08/01/39(a)(b) |
9,400 | 9,400,000 | ||||||
New York City Water & Sewer System RB |
||||||||
VRDN, 0.04%, 06/15/50 (a)(b) |
2,000 | 2,000,000 | ||||||
Series AA1, VRDN, 0.03%, 06/15/50 (a)(b) |
4,200 | 4,200,000 | ||||||
New York Transportation Development Corp. RB |
||||||||
5.00%, 12/01/22 |
495 | 517,768 | ||||||
Series A, 5.00%, 12/01/23 |
1,250 | 1,358,190 | ||||||
Tender
Option Bond Trust Receipts/Certificates GO, Series 2020, 0.08%,
09/01/26 |
2,195 | 2,195,000 | ||||||
Tender
Option Bond Trust Receipts/Certificates RB, Series 2020, 0.07%,
07/01/50 |
2,000 | 2,000,000 | ||||||
Town of Newburgh NY GOL, 1.00%, 05/18/22 |
820 | 822,709 | ||||||
Town of Oyster Bay NY GOL, 4.00%, 03/01/23 |
425 | 444,922 | ||||||
Village of Kings Point NY RB, 1.00%, 07/22/22 |
1,300 | 1,306,897 | ||||||
|
|
|||||||
30,540,744 | ||||||||
North Carolina — 3.5% | ||||||||
North Carolina Capital Facilities Finance Agency RB, |
||||||||
Series A, 0.15%, 07/01/34 (Put 12/01/21)(a)(b) |
10,000 | 10,000,000 | ||||||
North Carolina Turnpike Authority RB, 5.00%, 01/01/22 |
215 | 216,541 | ||||||
|
|
|||||||
10,216,541 | ||||||||
North Dakota — 2.7% | ||||||||
North Dakota Housing Finance Agency RB, 0.06%, 07/01/36 (Put 11/05/21)(a)(b) |
7,915 | 7,915,000 | ||||||
|
|
|||||||
Ohio — 2.2% | ||||||||
City of Cleveland OH GOL |
||||||||
Series A, 2.00%, 12/01/21 |
300 | 300,429 | ||||||
Series A, 2.00%, 12/01/22 |
300 | 305,626 |
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 (continued) October 31, 2021 |
BlackRock Short Maturity Municipal Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||
Ohio (continued) |
||||||||
Ohio Higher Educational Facility Commission RB, Series B-1, 0.05%, 01/01/39 (Put 11/08/21)(a)(b) |
$ | 5,975 | $ | 5,975,000 | ||||
|
|
|||||||
6,581,055 | ||||||||
Pennsylvania — 4.5% | ||||||||
Allegheny County Hospital Development Authority RB, Series A, 5.00%, 04/01/22 |
2,000 | 2,038,050 | ||||||
Connellsville Area School District GOL, 4.00%, 08/15/22 (BAM SAW) |
500 | 514,532 | ||||||
DuBois Area School District GOL, Series B, 3.00%, 11/01/21 (BAM SAW) |
175 | 175,026 | ||||||
Ephrata Area School District GO, 3.00%, 03/01/24 |
1,000 | 1,060,360 | ||||||
Geisinger Authority RB, 5.00%, 04/01/22 |
2,000 | 2,039,440 | ||||||
Muhlenberg School District GOL, 4.00%, 05/15/22 (SAW) |
700 | 713,953 | ||||||
Pennsylvania Economic Development Financing Authority RB |
||||||||
VRDN, 0.18%, 12/01/37 (Put 11/05/21)(a)(b) |
3,000 | 3,000,000 | ||||||
Series A, 2.15%, 11/01/21 |
1,000 | 1,000,101 | ||||||
Pennsylvania Housing Finance Agency RB |
||||||||
5.00%, 10/01/25 |
500 | 582,035 | ||||||
Series 133, 5.00%, 10/01/22 |
380 | 395,620 | ||||||
Philadelphia Gas Works Co. RB, Series A, 5.00%, 08/01/22 |
1,315 | 1,361,613 | ||||||
Southeastern Pennsylvania Transportation Authority RB, 5.00%, 06/01/22 |
360 | 370,005 | ||||||
|
|
|||||||
13,250,735 | ||||||||
Puerto Rico — 1.1% | ||||||||
Puerto Rico Housing Finance Authority RB, 5.00%, 12/01/22 |
3,000 | 3,141,423 | ||||||
|
|
|||||||
South Carolina — 0.3% | ||||||||
South Carolina Public Service Authority RB, Series A, 0.09%, 01/01/36 (Put 11/05/21)(a)(b) |
900 | 900,000 | ||||||
|
|
|||||||
Tennessee — 0.7% | ||||||||
Metropolitan Government Nashville & Davidson County Health & Educational Facility RB, 5.00%, 05/01/22 |
535 | 547,559 | ||||||
Tennergy Corp./TN |
||||||||
Series A, 4.00%, 09/01/22 |
335 | 345,095 | ||||||
Series A, 4.00%, 03/01/23 |
375 | 392,928 | ||||||
Series A, 4.00%, 09/01/23 |
320 | 340,799 | ||||||
Tennessee Energy Acquisition Corp. RB, Series A, 5.00%, 11/01/23 |
250 | 272,452 | ||||||
|
|
|||||||
1,898,833 | ||||||||
Texas — 7.9% | ||||||||
Harris County Cultural Education Facilities Finance Corp. RB, 5.00%, 06/01/32 (Put 09/01/22)(a)(b) |
4,000 | 4,203,181 |
Security | Par (000) |
Value | ||||||
Texas (continued) |
||||||||
North East Independent School District/TX GO, 0.23%, 12/16/21(d) |
$ | 8,900 | $ | 8,900,109 | ||||
Port of Arthur Navigation District Industrial Development Corp. RB, 0.09%, 06/01/41 (Put 11/01/21)(a)(b) |
2,000 | 2,000,000 | ||||||
State of Texas GO |
||||||||
Series
A, VRDN, 0.06%, 06/01/44 |
410 | 410,000 | ||||||
Series
A, VRDN, 0.06%, 06/01/45 |
2,910 | 2,910,000 | ||||||
Tender
Option Bond Trust Receipts/Certificates RB, Series 2019, 0.11%,
06/15/27 |
1,500 | 1,500,000 | ||||||
Texas Municipal Gas Acquisition & Supply Corp. III RB |
||||||||
5.00%, 12/15/22 |
2,000 | 2,101,356 | ||||||
5.00%, 12/15/23 |
1,150 | 1,258,544 | ||||||
|
|
|||||||
23,283,190 | ||||||||
Washington — 0.1% | ||||||||
King County Housing Authority RB, 3.00%, 06/01/22 |
250 | 253,619 | ||||||
|
|
|||||||
Wisconsin — 0.5% | ||||||||
Public Finance Authority RB |
||||||||
5.00%, 01/01/22 |
200 | 201,499 | ||||||
5.00%, 06/01/22 |
175 | 179,802 | ||||||
Wisconsin
Housing & Economic Development Authority RB, Series B, 0.05%,
03/01/41 |
1,000 | 1,000,000 | ||||||
|
|
|||||||
1,381,301 | ||||||||
|
|
|||||||
Total
Municipal Debt Obligations — 100.3% |
|
293,996,581 | ||||||
|
|
|||||||
Total
Investments in Securities — 100.3% |
|
293,996,581 | ||||||
Other Assets, Less Liabilities — (0.3)% |
|
(827,580 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
|
$ | 293,169,001 | |||||
|
|
(a) |
Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
(b) |
Variable rate security. Rate as of period end and maturity is the date the principal owed can be recovered through demand. |
(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) |
Rates are discount rates or a range of discount rates as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of
1940, as amended, were as follows:
Affiliated Issuer | Value at 10/31/20 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 10/31/21 |
Shares Held at 10/31/21 (000) |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Liquidity Funds: MuniCash(a) |
$ | 117,575 | $ | — | $ | (116,312 | )(b) | $ | (1,263 | ) | — | $ | — | — | $ | 507 | $ | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
As of period end, the entity is no longer held. |
(b) |
Represents net amount purchased (sold). |
24 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Short Maturity Municipal Bond 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 |
||||||||||||||||
Municipal Debt Obligations |
$ | — | $ | 293,996,581 | $ | — | $ | 293,996,581 | ||||||||
|
|
|
|
|
|
|
|
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 |
25 |
Schedule of Investments October 31, 2021 |
BlackRock Ultra Short-Term Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||
Asset-Backed Securities |
||||||||
CarMax Auto Owner Trust |
||||||||
Series 2020-1, Class A2, 1.87%, 04/17/23 (Call 10/15/23) |
$ | 120 | $ | 119,837 | ||||
Series 2020-3, Class A2A, 0.49%, 06/15/23 (Call 11/15/23) |
1,288 | 1,288,192 | ||||||
Series 2020-3, Class A2B, 0.34%, 06/15/23 (Call 11/15/23), (1 mo. LIBOR US + 0.250%)(a) |
364 | 364,337 | ||||||
Series 20-4, Class A2A, 0.31%, 01/16/24 (Call 04/15/24) . |
7,186 | 7,188,375 | ||||||
Ford Credit Auto Lease Trust |
||||||||
0.24%, 04/15/24 (Call 01/15/24) |
8,670 | 8,654,340 | ||||||
Series 2020-B, Class A2A, 0.50%, 12/15/22 (Call 01/15/23) |
2,878 | 2,878,934 | ||||||
Ford Credit Auto Owner Trust, Series 2020-B, Class A2, 0.50%, 02/15/23 (Call 11/15/23) |
596 | 596,431 | ||||||
Honda Auto Receivables Owner Trust |
||||||||
Series 2020-2, Class A2, 0.74%, 11/15/22 (Call 07/15/23) |
393 | 392,967 | ||||||
Series 20-3, Class A2, 0.27%, 02/21/23 (Call 09/18/23) |
5,020 | 5,021,191 | ||||||
Hyundai Auto Lease Securitization Trust, 0.24%, 01/16/24 (Call 03/15/24)(b) |
17,150 | 17,128,118 | ||||||
|
|
|||||||
Total
Asset-Backed Securities — 0.7% |
|
43,632,722 | ||||||
|
|
|||||||
Certificates of Deposit |
||||||||
Banco Santander SA |
||||||||
0.18%, 12/03/21 |
10,000 | 10,000,680 | ||||||
0.28%, 11/08/21 |
25,000 | 25,001,081 | ||||||
Bank of America N.A., 0.21%, 07/08/22 |
3,250 | 3,249,825 | ||||||
Bank
of Montreal/Chicago IL, 0.22%, 11/18/21, |
5,000 | 5,000,389 | ||||||
Barclays Bank PLC 0.24%, 04/08/22 |
13,000 | 13,004,348 | ||||||
0.27%, 03/03/22 |
17,000 | 17,007,541 | ||||||
0.30%, 11/10/21 |
5,000 | 5,000,343 | ||||||
0.30%, 03/30/22 |
10,000 | 10,006,191 | ||||||
0.31%, 04/19/22 |
10,000 | 10,006,239 | ||||||
0.33%, 02/01/22 |
10,000 | 10,005,214 | ||||||
0.36%, 12/31/21 |
15,250 | 15,256,608 | ||||||
Bayerische Landesbank/New York |
||||||||
0.29%,
01/27/23, (3 mo. LIBOR US + |
22,500 | 22,502,962 | ||||||
0.59%,
02/03/22, (3 mo. LIBOR US + |
20,000 | 20,018,968 | ||||||
0.90%, 06/27/23 |
15,000 | 15,129,423 | ||||||
BNP Paribas NY, 0.20%, 09/08/22 |
35,000 | 34,974,705 | ||||||
Canadian Imperial Bank of Commerce/New York |
||||||||
0.18%,
11/08/21, (3 mo. LIBOR US |
5,000 | 5,000,113 | ||||||
0.21%,
12/13/21, (3 mo. LIBOR US |
3,000 | 3,000,550 | ||||||
Credit Agricole Corporate and Investment Bank/New York, 0.45%, 11/15/21, (SOFR + 0.400%)(a) |
6,500 | 6,500,705 | ||||||
Credit Industriel et Commercial, 0.01%, 02/22/22 |
22,000 | 21,988,380 | ||||||
Credit Industriel et Commercial/New York, 0.17%, 05/06/22, (3 mo. LIBOR US + 0.5000%)(a) |
7,000 | 7,000,702 | ||||||
Credit Suisse AG/New York NY |
||||||||
0.28%, 04/08/22, (SOFR + 0.220%)(a) |
5,000 | 5,002,815 | ||||||
0.30%, 12/29/21 |
4,000 | 4,001,144 | ||||||
0.34%, 11/01/21 |
20,000 | 20,000,366 | ||||||
0.34%, 11/16/21, (SOFR + 0.300%)(a) |
8,000 | 8,001,000 | ||||||
0.50%, 10/28/22 |
15,000 | 14,987,701 | ||||||
Deutsche Bank AG, 0.36%, 11/19/21 |
54,000 | 54,006,922 | ||||||
HSBC Bank USA N.A., 0.38%, 11/17/21 |
8,000 | 8,001,220 |
Security | Par (000) |
Value | ||||||
Kookmin Bank/New York |
||||||||
0.30%,
10/24/22, (3 mo. LIBOR US + |
$ | 5,000 | $ | 4,999,899 | ||||
0.32%,
02/07/22, (1 mo. LIBOR US + |
10,000 | 10,002,963 | ||||||
0.34%,
02/07/22, (1 mo. LIBOR US + |
4,500 | 4,501,592 | ||||||
1.00%, 11/03/22 |
11,000 | 11,000,000 | ||||||
Landesbank Baden-Wuerttemberg, 0.34%, 10/21/22 |
10,000 | 9,998,813 | ||||||
Lloyds Bank Corp., 0.23%, 08/17/22 |
6,700 | 6,696,306 | ||||||
Lloyds Bank Corporate Markets PLC, 0.23%, 06/30/22 |
15,000 | 15,000,490 | ||||||
Mizuho Bank Ltd. |
||||||||
0.23%, 11/18/21 |
12,000 | 12,001,099 | ||||||
0.24%, 11/03/21 |
5,000 | 5,000,118 | ||||||
Mizuho Bank Ltd./New York NY, 0.23%, 01/28/22 |
10,000 | 10,002,498 | ||||||
MUFG Bank Ltd. |
||||||||
0.23%, 07/15/22 |
7,000 | 6,997,478 | ||||||
0.30%, 10/31/22 |
7,500 | 7,494,513 | ||||||
National Westminster Bank PLC, 0.01%, 11/01/21 |
25,000 | 24,999,760 | ||||||
Natixis SA/New York NY |
||||||||
0.25%,
12/09/21, (3 mo. LIBOR US + |
3,000 | 3,000,595 | ||||||
0.34%, 11/16/21 |
10,000 | 10,001,279 | ||||||
Natixis/New York, 0.23%, 06/17/22, (SOFR + 0.180%)(a) |
12,000 | 12,004,863 | ||||||
Nordea Bank Abp/New York NY |
||||||||
0.24%,
02/28/22, (3 mo. LIBOR US + |
12,500 | 12,505,528 | ||||||
0.38%,
01/07/22, (3 mo. LIBOR US + |
6,500 | 6,504,000 | ||||||
Norinchukin Bank |
||||||||
0.24%, 11/16/21 |
18,000 | 18,001,439 | ||||||
0.25%, 01/20/22 |
7,000 | 7,001,966 | ||||||
Norinchukin Bank/New York, 0.23%, 11/18/21, (SOFR + 0.180%)(a) |
8,250 | 8,250,550 | ||||||
Oversea Chinese Bannking Corp. |
||||||||
0.17%, 06/03/22 |
10,130 | 10,126,216 | ||||||
0.18%, 03/09/22 |
15,000 | 14,999,776 | ||||||
Royal Bank of Canada, 0.20%, 08/16/22 |
18,000 | 17,988,950 | ||||||
Royal Bank of Canada/New York NY |
||||||||
0.18%, 05/24/22, (SOFR + 0.130%)(a) |
10,000 | 10,001,281 | ||||||
0.31%, 11/16/21 |
10,000 | 10,001,149 | ||||||
Shinhan Bank New York |
||||||||
0.33%, 02/10/22 |
5,000 | 5,002,463 | ||||||
0.33%, 02/11/22 |
10,750 | 10,755,316 | ||||||
Standard Chartered Bank/New York |
||||||||
0.18%,
03/18/22, (3 mo. LIBOR US |
3,900 | 3,900,101 | ||||||
0.22%,
04/25/22, (3 mo. LIBOR US + |
15,000 | 15,002,457 | ||||||
0.28%, 04/14/22, (FEDL01 + 0.2000%)(a) |
10,000 | 10,004,559 | ||||||
0.37%, 11/23/21, (SOFR + 0.320%)(a) |
20,000 | 20,003,554 | ||||||
Sumitomo Mitsui Banking Corp., 0.17%, 01/18/22 |
20,000 | 20,002,201 | ||||||
Sumitomo Mitsui Banking Corp./New York |
||||||||
0.47%,
11/05/21, (3 mo. LIBOR US + |
23,500 | 23,500,795 | ||||||
0.70%, 07/15/22 |
10,000 | 10,029,684 | ||||||
Svenska Handelsbanken/New York NY |
||||||||
0.28%, 11/22/21 |
5,000 | 5,000,666 | ||||||
0.39%,
01/06/22, (3 mo. LIBOR US + |
14,500 | 14,508,335 | ||||||
Toronto-Dominion Bank/NY |
||||||||
0.25%, 02/16/22 (Call 11/16/21), (3 mo. LIBOR US + 0.200%)(a) |
17,000 | 17,007,534 | ||||||
0.34%, 10/28/22 |
7,000 | 7,000,770 | ||||||
|
|
|||||||
Total
Certificates of Deposit — 13.9% |
|
804,457,691 | ||||||
|
|
|||||||
Commercial Paper |
||||||||
Abb Treasury Centre Inc., 0.15%, 11/03/21 |
10,000 | 9,999,828 |
26 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Ultra Short-Term Bond ETF (Percentages shown are based on Net Assets) |
Security |
Par (000) |
Value | ||||||
Amcor
Flexibles North America, |
$ | 5,000 | $ | 4,999,653 | ||||
American Electric Power Inc. |
||||||||
0.18%, 11/08/21 |
38,049 | 38,047,626 | ||||||
0.20%, 11/15/21 |
21,000 | 20,998,681 | ||||||
Antalis SA, 0.19%, 03/01/22 |
12,500 | 12,493,508 | ||||||
ASB Finance Ltd., 0.21%, 09/12/22 |
15,000 | 14,969,525 | ||||||
AT&T Inc. |
||||||||
0.18%, 02/14/22 |
8,500 | 8,495,308 | ||||||
0.21%, 01/20/22 |
10,000 | 9,995,735 | ||||||
0.41%, 12/14/21 |
74,000 | 73,984,777 | ||||||
0.43%, 12/16/21 |
12,000 | 11,997,408 | ||||||
Australia & New Zealand Banking Group Ltd., 0.24%, 07/28/22 |
10,000 | 9,983,302 | ||||||
Avery
Dennison Corp. |
15,000 | 14,999,621 | ||||||
0.18%, 12/13/21 |
10,920 | 10,917,952 | ||||||
Banco Santander SA, 0.25%, 04/18/22 |
5,000 | 4,994,989 | ||||||
Barclays Bank PLC, |
||||||||
Series
10-10.28%, 07/22/22, |
10,000 | 10,005,910 | ||||||
Barclays Capital Inc., 0.38%, 01/18/22 |
25,000 | 24,993,587 | ||||||
Bedford
Row Funding Corp., 0.19%, 06/27/22, |
15,000 | 15,000,000 | ||||||
BNZ Financial Funding Ltd., 0.18%, 06/13/22 |
7,500 | 7,490,731 | ||||||
BNZ
International Funding Ltd., |
10,600 | 10,597,902 | ||||||
BPCE
SA |
12,000 | 11,999,252 | ||||||
0.34%, 12/09/21 |
8,000 | 7,999,380 | ||||||
Brighthouse
Financial Short Term Funding |
29,750 | 29,716,125 | ||||||
0.21%, 04/27/22 |
13,900 | 13,884,015 | ||||||
Brookfield
Infrastructure Partners LP |
7,750 | 7,748,438 | ||||||
0.31%, 01/04/22 |
3,750 | 3,748,499 | ||||||
Brookfield
Renewable |
15,750 | 15,748,937 | ||||||
0.25%, 11/17/21 |
16,250 | 16,248,825 | ||||||
0.25%, 12/06/21 |
15,000 | 14,997,546 | ||||||
CenterPoint
Energy Resources Corp., |
30,000 | 29,999,675 | ||||||
Collateralized Commercial Paper Flex Co. LLC, 0.27%, 08/18/22(b) |
15,000 | 14,993,682 | ||||||
Collateralized Commpercial Paper Flex Co. LLC, 0.34%, 12/06/21 |
6,000 | 5,999,379 | ||||||
Commonwealth
Bank of Australi, |
5,000 | 4,984,828 | ||||||
Concord Minutemen Capital, 0.32%, 03/01/22 |
24,000 | 23,985,896 | ||||||
Crown Point Capital Co., 0.30%, 10/04/22 (Call 07/01/22)(b) |
10,000 | 9,993,463 | ||||||
Danaher
Corp. |
16,000 | 15,999,769 | ||||||
0.20%, 11/15/21 |
23,985 | 23,983,494 | ||||||
0.22%, 12/01/21 |
8,315 | 8,313,841 | ||||||
0.22%, 12/02/21 |
15,165 | 15,162,809 | ||||||
Disney (walt) Co. (The), 0.23%, 09/30/22 |
5,000 | 4,988,660 | ||||||
DNB Bank ASA, 0.34%, 10/19/22 |
5,000 | 4,984,074 | ||||||
Dominion
Resources Inc. |
25,000 | 24,998,083 | ||||||
0.20%, 11/15/21 |
12,000 | 11,999,246 | ||||||
0.20%, 12/01/21 |
7,000 | 6,999,025 | ||||||
Enbridge
Inc. |
15,000 | 14,999,621 | ||||||
0.22%, 12/02/21 |
22,000 | 21,996,821 | ||||||
0.22%, 01/07/22 |
23,000 | 22,991,637 | ||||||
0.31%, 04/18/22 |
6,000 | 5,992,961 |
Security |
Par (000) |
Value | ||||||
Enel
Finance America |
$ | 2,000 | $ | 1,999,048 | ||||
0.34%, 06/08/22 |
8,860 | 8,842,626 | ||||||
0.34%, 06/10/22 |
10,000 | 9,980,151 | ||||||
0.35%, 11/16/21 |
1,250 | 1,249,916 | ||||||
0.36%, 07/08/22 |
12,000 | 11,970,936 | ||||||
0.36%, 09/07/22 |
10,000 | 9,965,570 | ||||||
0.40%, 08/03/22 |
15,100 | 15,056,390 | ||||||
0.40%, 09/15/22 |
28,000 | 27,899,634 | ||||||
0.41%, 04/20/22 |
4,400 | 4,394,185 | ||||||
0.41%, 04/22/22 |
10,600 | 10,585,727 | ||||||
0.52%, 10/21/22 |
15,500 | 15,434,674 | ||||||
Fidelity
National Information Services Inc. |
27,500 | 27,499,615 | ||||||
0.22%, 11/01/21 |
12,770 | 12,769,868 | ||||||
0.22%, 11/08/21 |
7,895 | 7,894,715 | ||||||
0.23%, 12/06/21 |
22,000 | 21,996,401 | ||||||
0.28%, 01/07/22 |
18,000 | 17,993,700 | ||||||
Fiserv Inc., 0.20%, 12/14/21 |
10,000 | 9,997,687 | ||||||
Goldman
Sachs Bank USA/New York NY |
8,400 | 8,397,718 | ||||||
0.35%, 12/22/21 |
12,000 | 11,998,020 | ||||||
Hitachi Capital America Corp., 0.23%, 12/27/21 |
42,000 | 41,987,679 | ||||||
Hitachi Intrnl Trsy, 0.12%, 11/01/21 |
40,000 | 39,999,567 | ||||||
HSBC Bank PLC |
||||||||
0.26%, 11/05/21, (3 mo. LIBOR US + 0.140%)(a)(b) |
12,000 | 12,000,160 | ||||||
0.27%, 02/02/22 |
10,000 | 9,994,560 | ||||||
0.33%, 01/03/22 |
13,000 | 12,995,805 | ||||||
Hyundai
Capital America |
800 | 799,742 | ||||||
0.23%, 01/11/22 |
9,200 | 9,196,993 | ||||||
0.25%, 01/19/22 |
4,365 | 4,363,360 | ||||||
0.26%, 02/22/22 |
5,000 | 4,997,116 | ||||||
0.35%, 12/16/21 |
9,600 | 9,598,285 | ||||||
ING U.S Funding LLC., 0.18%, 05/17/22 |
10,000 | 9,989,611 | ||||||
Intercontinental
Exchange Inc. |
4,000 | 3,999,856 | ||||||
0.17%, 11/09/21 |
15,000 | 14,998,800 | ||||||
0.18%, 11/19/21 |
10,000 | 9,998,660 | ||||||
Ionic
Capital II |
5,200 | 5,199,847 | ||||||
0.23%, 03/25/22 |
5,000 | 4,996,774 | ||||||
Ionic Capital II Trust, 1.00%, 03/04/22 |
4,200 | 4,197,883 | ||||||
J.P. Morgan Securities, 0.22%, 09/30/22(b) |
10,000 | 9,993,630 | ||||||
Kookmin Bank, 0.21%, 04/14/22 |
8,000 | 7,991,724 | ||||||
LMA
SA and LMA Americas LLC, |
20,000 | 19,984,990 | ||||||
Mackinac Funding, 0.20%, 05/03/22 |
7,000 | 6,991,284 | ||||||
Macquarie
Bank Ltd. |
5,000 | 5,000,221 | ||||||
0.23%, 09/20/22, (SOFR + 0.180%)(a)(b) |
10,000 | 10,000,004 | ||||||
0.27%, 04/29/22 |
15,000 | 14,982,483 | ||||||
0.35%, 11/18/21 |
10,000 | 9,999,428 | ||||||
0.35%, 11/19/21 |
15,000 | 14,999,090 | ||||||
Mitsubishi
HC Capital America Inc. |
10,000 | 9,999,717 | ||||||
0.23%, 11/16/21 |
20,000 | 19,998,200 | ||||||
0.24%, 11/19/21 |
7,785 | 7,784,137 | ||||||
National
Australia Bank Ltd., 0.17%, 03/25/22, |
10,000 | 10,001,508 | ||||||
Natwest
Market PLC |
13,050 | 13,046,964 |
S C H E D U L E O F I N V E S T M E N T S |
27 |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Ultra Short-Term Bond ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||
0.40%, 01/27/22 |
$ | 20,000 | $ | 19,993,000 | ||||
NextEra
Energy Capital Holdings Inc., |
16,000 | 15,999,787 | ||||||
Nordea Bank Abp, 0.31%, 10/21/22 |
10,000 | 9,970,746 | ||||||
Nutrien
Ltd. |
4,175 | 4,174,666 | ||||||
0.17%, 12/23/21 |
15,000 | 14,996,173 | ||||||
0.18%, 11/30/21 |
4,121 | 4,120,447 | ||||||
0.19%, 12/10/21 |
14,900 | 14,897,253 | ||||||
0.19%, 12/20/21 |
8,235 | 8,233,037 | ||||||
Ontario
Power Generation Inc. |
20,310 | 20,309,650 | ||||||
0.19%, 11/23/21 |
8,600 | 8,599,236 | ||||||
PPG
Industries Inc. |
28,000 | 27,998,241 | ||||||
0.19%, 11/23/21 |
4,245 | 4,244,576 | ||||||
Regatta Funding Co. LLC, 0.45%, 10/28/22 |
5,000 | 4,983,405 | ||||||
Ridgefield
Funding Co. LLC |
10,000 | 9,994,173 | ||||||
0.23%, 11/02/21 |
7,000 | 6,999,931 | ||||||
Rockwell
Automation Inc. |
4,650 | 4,649,516 | ||||||
0.15%, 01/25/22 |
14,500 | 14,494,045 | ||||||
Salisbury
Receivables Co. LLC, |
10,000 | 10,002,954 | ||||||
Skandinaviska
Enskilda Banken AB, |
7,000 | 6,990,724 | ||||||
Societe Generale SA |
||||||||
0.23%,
01/31/22, (3 mo. LIBOR US + |
10,000 | 10,002,970 | ||||||
0.24%, 09/19/22 |
10,000 | 9,975,190 | ||||||
0.31%, 05/03/22 |
10,000 | 9,992,270 | ||||||
0.35%, 01/10/22 |
10,000 | 9,999,030 | ||||||
0.37%, 12/13/21 |
15,000 | 14,999,565 | ||||||
Spire Inc., 0.16%, 11/04/21 |
10,000 | 9,999,783 | ||||||
Sumitomo
Mitsui Banking Corp., |
15,000 | 14,970,408 | ||||||
Suncor
Energy Inc. |
26,110 | 26,107,247 | ||||||
0.20%, 12/06/21 |
9,295 | 9,293,479 | ||||||
0.21%, 12/01/21 |
12,760 | 12,758,222 | ||||||
0.22%, 11/01/21 |
12,000 | 11,999,870 | ||||||
Svenska Handelsbanken/New York NY, 0.30%, 12/08/21 |
8,000 | 7,999,351 | ||||||
Telstra Corp. Ltd., 0.31%, 02/10/22 |
19,200 | 19,189,739 | ||||||
Telus
Corp. |
34,000 | 33,980,541 | ||||||
0.22%, 03/03/22 |
20,200 | 20,184,920 | ||||||
0.23%, 03/09/22 |
9,030 | 9,022,738 | ||||||
Toronto Dominion Bank, 0.20%, 08/03/22 |
20,000 | 19,960,462 | ||||||
TransCanada
PipeLines Ltd |
12,500 | 12,499,042 | ||||||
0.22%, 11/22/21 |
35,000 | 34,996,663 | ||||||
TransCanada PipeLines Ltd., 0.25%, 02/10/22 |
10,000 | 9,994,078 | ||||||
UBS
AG/London |
11,500 | 11,491,114 | ||||||
0.25%, 08/18/22 |
10,000 | 9,978,025 | ||||||
0.30%, 03/11/22 |
2,500 | 2,498,439 | ||||||
Volkswagen
Group of America Finance LLC |
15,000 | 14,998,975 | ||||||
0.52%, 11/10/21 |
8,000 | 7,999,256 | ||||||
VW
Credit Inc. |
19,500 | 19,452,382 | ||||||
0.35%, 08/24/22 |
10,000 | 9,975,499 |
Security |
Par (000) |
Value | ||||||
Walt Disney Co. (The) |
||||||||
0.24%,06/15/22 |
$ | 16,940 | $ | 16,916,724 | ||||
0.25%,07/15/22 |
10,950 | 10,932,196 | ||||||
Waste Management Inc. |
||||||||
0.18%,12/17/21 |
7,500 | 7,498,336 | ||||||
0.31%,08/02/22 |
4,805 | 4,795,092 | ||||||
0.31%,08/09/22 |
19,720 | 19,665,494 | ||||||
0.31%,09/08/22 |
25,000 | 24,932,185 | ||||||
0.32%,07/25/22 |
21,600 | 21,558,197 | ||||||
WEC Energy Group Inc., 0.15%, 11/04/21 |
34,000 | 33,999,263 | ||||||
Wells Fargo Securities, 0.15%, 11/01/21 |
19,000 | 18,999,774 | ||||||
Westpac
Banking Corp./NY, |
5,000 | 4,985,319 | ||||||
|
|
|||||||
Total
Commercial Paper — 35.6% |
2,066,692,081 | |||||||
|
|
|||||||
Corporate Bonds & Notes |
||||||||
Aerospace & Defense — 0.1% | ||||||||
Raytheon
Technologies Corp., |
4,000 | 4,197,976 | ||||||
|
|
|||||||
Agriculture — 0.2% | ||||||||
Cargill Inc., 0.40%, 02/02/24 (Call 01/02/24)(b)(c) |
10,165 | 10,078,582 | ||||||
|
|
|||||||
Auto Manufacturers — 5.7% | ||||||||
American Honda Finance Corp. |
||||||||
0.25%,01/21/22, (3 mo. LIBOR US + 0.120%)(a) |
7,000 | 7,003,675 | ||||||
0.28%,02/22/23, (3 mo. LIBOR US + 0.150%)(a) |
8,820 | 8,830,006 | ||||||
0.53%,09/08/23, (3 mo. LIBOR US + 0.420%)(a) |
5,790 | 5,826,138 | ||||||
0.57%,02/15/22, (3 mo. LIBOR US + 0.450%)(a) |
14,400 | 14,418,285 | ||||||
0.65%,09/08/23 |
20,000 | 20,001,045 | ||||||
0.75%,08/09/24 |
3,235 | 3,214,490 | ||||||
0.88%,07/07/23 |
5,025 | 5,051,221 | ||||||
2.20%,06/27/22 |
10,100 | 10,227,863 | ||||||
BMW Finance NV, 2.25%, 08/12/22(b) |
1,890 | 1,917,541 | ||||||
BMW U.S. Capital LLC |
||||||||
0.43%,08/12/24, (SOFR + 0.380%)(a)(b) |
19,960 | 20,083,353 | ||||||
0.58%,04/01/24, (SOFR + 0.530%)(a)(b) |
15,615 | 15,747,790 | ||||||
0.75%,08/12/24(b) |
2,925 | 2,910,949 | ||||||
0.80%,04/01/24(b) |
3,350 | 3,339,181 | ||||||
2.70%,04/06/22 (Call 03/06/22)(b) |
5,000 | 5,037,517 | ||||||
2.95%,04/14/22(b)(c) |
5,000 | 5,055,320 | ||||||
Daimler Finance North America LLC |
||||||||
0.75%,03/01/24(b) |
26,690 | 26,577,163 | ||||||
2.55%,08/15/22(b) |
2,247 | 2,284,470 | ||||||
3.40%,02/22/22(b) |
5,000 | 5,046,652 | ||||||
Hyundai Capital America |
||||||||
0.80%,04/03/23(b) |
21,620 | 21,611,986 | ||||||
2.38%,02/10/23(b)(c) |
7,560 | 7,694,797 | ||||||
2.85%,11/01/22(b) |
3,440 | 3,507,795 | ||||||
Hyundai
Capital Services Inc., |
20,000 | 19,898,500 | ||||||
PACCAR Financial Corp., 0.80%, 06/08/23 |
2,760 | 2,766,967 | ||||||
Toyota Motor Credit Corp. |
||||||||
0.25%,02/13/23(a)(c) |
22,277 | 22,277,000 | ||||||
0.27%,02/14/22, (3 mo. LIBOR US + 0.150%)(a) |
16,790 | 16,793,019 | ||||||
0.34%,06/13/22, (SOFR + 0.300%)(a) |
15,000 | 15,015,993 | ||||||
0.34%,09/13/24, (SOFR + 0.290%)(a) |
12,000 | 12,032,933 | ||||||
0.39%,10/14/22, (SOFR + 0.340%)(a) |
13,000 | 13,028,730 | ||||||
0.45%,07/22/22 |
6,580 | 6,584,110 | ||||||
0.50%,06/18/24 |
4,000 | 3,956,181 | ||||||
2.90%,03/30/23(c) |
10,000 | 10,343,636 |
28 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Ultra Short-Term Bond ETF (Percentages shown are based on Net Assets) |
Security |
Par (000) |
Value | ||||||
Auto Manufacturers (continued) | ||||||||
Volkswagen Group of America Finance LLC, 0.75%, 11/23/22(b) |
$ | 15,025 | $ | 15,034,670 | ||||
|
|
|||||||
333,118,976 | ||||||||
Auto Parts & Equipment — 0.0% | ||||||||
Toyota Industries Corp., 3.11%, 03/12/22 (Call 02/12/22)(b) |
1,000 | 1,007,431 | ||||||
|
|
|||||||
Banks — 15.4% | ||||||||
Australia &
New Zealand Banking Group Ltd./ |
2,000 | 2,002,719 | ||||||
Banco Santander SA, 0.70%, 06/30/24 (Call 06/30/23)(a) |
8,200 | 8,174,931 | ||||||
Bank
of America Corp. |
18,580 | 18,489,883 | ||||||
2.82%,
07/21/23 (Call 07/21/22), |
20,834 | 21,158,310 | ||||||
3.00%,
12/20/23 (Call 12/20/22), |
10,000 | 10,261,783 | ||||||
3.12%,
01/20/23 (Call 01/20/22), |
1,615 | 1,624,364 | ||||||
BNZ
International Funding Ltd./London, |
3,700 | 3,728,991 | ||||||
BPCE SA |
||||||||
0.43%,
01/14/22, (3 mo. LIBOR US + |
9,319 | 9,324,642 | ||||||
0.49%, 02/17/22, (SOFR + 0.440%)(a)(b) |
7,300 | 7,306,913 | ||||||
2.75%, 12/02/21 |
11,945 | 11,970,180 | ||||||
2.75%, 01/11/23(b) |
4,000 | 4,108,305 | ||||||
Canadian
Imperial Bank of Commerce, |
3,480 | 3,495,090 | ||||||
Citigroup Inc. |
||||||||
0.92%,
11/04/22 (Call 11/04/21), (SOFR + |
5,000 | 5,035,943 | ||||||
2.31%, 11/04/22 (Call 11/04/21), (SOFR + 0.867%)(a) |
31,997 | 31,999,874 | ||||||
2.75%, 04/25/22 (Call 03/25/22) |
5,000 | 5,046,491 | ||||||
2.88%,
07/24/23 (Call 07/24/22), |
20,000 | 20,324,128 | ||||||
Cooperatieve
Rabobank U.A., |
1,925 | 1,943,120 | ||||||
Credit Agricole Corporate & Investment Bank SA, 0.40%, 01/15/23 (Call 01/15/22) |
12,000 | 11,977,162 | ||||||
Credit
Suisse AG/New York NY |
15,000 | 14,973,310 | ||||||
0.50%, 02/04/22, (SOFR + 0.450%)(a) |
16,000 | 16,013,280 | ||||||
0.50%, 02/02/24 |
5,335 | 5,291,398 | ||||||
1.00%, 05/05/23 |
5,000 | 5,025,211 | ||||||
2.10%, 11/12/21 |
6,855 | 6,858,320 | ||||||
2.80%, 04/08/22(c) |
6,300 | 6,367,375 | ||||||
DBS
Group Holdings Ltd., |
3,267 | 3,297,666 | ||||||
DNB Bank ASA |
||||||||
0.74%,
12/02/22, (3 mo. LIBOR US + |
5,000 | 5,029,578 | ||||||
2.15%, 12/02/22(b)(c) |
14,382 | 14,656,445 | ||||||
DZ Bank AG Deutsche Zentral-Genossenschaftsbank/ New York, 0.32%, 02/17/22, (3 mo. LIBOR US + 0.200%)(a) |
27,000 | 27,008,433 | ||||||
Fifth Third Bank NA, 1.80%, 01/30/23 (Call 12/30/22) |
4,560 | 4,626,444 | ||||||
Goldman
Sachs Group Inc. (The) |
20,000 | 19,963,273 | ||||||
0.48%, 01/27/23 (Call 01/27/22) |
5,000 | 4,986,375 | ||||||
0.59%, 11/17/23 (Call 11/17/22), (SOFR + 0.540%)(a) |
7,000 | 7,011,043 | ||||||
0.63%, 11/17/23 (Call 11/17/22), (SOFR + 0.538%)(a) |
10,000 | 9,988,492 | ||||||
Series
FRN, 0.45%, 01/27/23 (Call 01/27/22), (SOFR + |
12,000 | 12,005,872 | ||||||
JPMorgan Chase & Co. |
||||||||
0.63%,
03/16/24 (Call 03/16/23), (SOFR + |
20,000 | 20,067,348 | ||||||
0.70%,
03/16/24 (Call 03/16/23), (SOFR + |
4,000 | 4,000,827 | ||||||
2.97%, 01/15/23 (Call 01/15/22) |
7,000 | 7,036,586 |
Security |
Par (000) |
Value | ||||||
Banks (continued) | ||||||||
3.21%,
04/01/23 (Call 04/01/22), |
$ | 8,698 | $ | 8,793,845 | ||||
KeyBank N.A./Cleveland OH |
||||||||
0.37%,
06/14/24 (Call 06/14/23), (SOFR + |
15,565 | 15,590,466 | ||||||
0.43%, 06/14/24 (Call 06/14/23)(a) |
10,000 | 9,954,290 | ||||||
3.30%, 02/01/22 |
2,115 | 2,131,255 | ||||||
Kookmin
Bank/Seoul, 0.50%, 08/03/22, |
10,535 | 10,539,916 | ||||||
Korea Development Bank (The) |
||||||||
0.47%, 02/18/23, (3 mo. LIBOR US + 0.350%)(a) |
16,455 | 16,481,175 | ||||||
0.60%, 03/21/22, (SOFR + 0.550%)(a)(b) |
12,500 | 12,517,036 | ||||||
Macquarie
Bank Ltd. |
15,000 | 14,990,547 | ||||||
0.58%, 11/24/21, (3 mo. LIBOR US + 0.450%)(a)(b) |
26,000 | 26,006,818 | ||||||
2.10%, 10/17/22(b) |
9,450 | 9,591,745 | ||||||
Mitsubishi
UFJ Financial Group Inc. |
8,400 | 8,530,448 | ||||||
2.67%, 07/25/22 |
25,137 | 25,545,981 | ||||||
3.00%, 02/22/22 |
4,975 | 5,015,654 | ||||||
Morgan Stanley |
||||||||
0.53%,
01/25/24 (Call 01/25/23), (SOFR + |
10,000 | 9,978,958 | ||||||
0.56%,
11/10/23 (Call 11/10/22), (SOFR + |
15,000 | 14,986,613 | ||||||
0.73%,
01/20/23 (Call 01/20/22), (SOFR + |
32,000 | 32,053,744 | ||||||
0.73%,
04/05/24 (Call 04/05/23), (SOFR + |
30,000 | 29,964,407 | ||||||
2.63%, 11/17/21 |
6,000 | 6,005,929 | ||||||
MUFG Union Bank N.A., 3.15%, 04/01/22 (Call 03/01/22) |
4,000 | 4,037,981 | ||||||
National
Australia Bank Ltd., 0.52%, 12/13/22, |
3,500 | 3,513,124 | ||||||
National
Australia Bank Ltd./New York |
4,460 | 4,535,846 | ||||||
3.70%, 11/04/21 |
3,035 | 3,035,516 | ||||||
National
Westminster Bank PLC, |
16,000 | 15,985,665 | ||||||
Nordea Bank Abp, 1.00%, 06/09/23(b) |
3,135 | 3,158,531 | ||||||
Nordea
Bank Abp/New York NY |
8,000 | 8,004,329 | ||||||
0.37%, 01/28/22, (3 mo. LIBOR US + 0.230%)(a) |
10,000 | 10,007,636 | ||||||
Santander
UK PLC |
2,105 | 2,144,226 | ||||||
3.75%, 11/15/21(c) |
5,000 | 5,006,471 | ||||||
Skandinaviska Enskilda Banken AB |
||||||||
0.76%, 12/12/22, (3 mo. LIBOR US + 0.645%)(a)(b) |
3,000 | 3,017,249 | ||||||
2.20%, 12/12/22(b)(c) |
2,845 | 2,901,935 | ||||||
3.05%, 03/25/22(b) |
3,000 | 3,030,660 | ||||||
Sumitomo
Mitsui Banking Corp., |
2,000 | 2,014,059 | ||||||
Sumitomo
Mitsui Banking Corp./New York |
5,000 | 5,000,565 | ||||||
0.49%, 11/05/21, (3 mo. LIBOR US + 0.370%)(a) |
2,000 | 2,000,071 | ||||||
Sumitomo
Mitsui Financial Group Inc. |
3,580 | 3,550,148 | ||||||
3.10%, 01/17/23 |
2,659 | 2,738,272 | ||||||
Sumitomo Mitsui Trust Bank Ltd. |
||||||||
0.49%,
09/16/24, (SOFR + |
15,000 | 15,040,153 | ||||||
0.80%, 09/12/23(b) |
12,744 | 12,759,974 | ||||||
0.80%, 09/16/24(b)(c) |
12,000 | 11,899,833 | ||||||
Suncorp-Metway Ltd., 2.80%, 05/04/22(b) |
895 | 905,420 | ||||||
Svenska Handelsbanken AB, 0.63%, 06/30/23(b) |
6,310 | 6,317,520 | ||||||
Swedbank
AB |
14,500 | 14,462,004 | ||||||
1.30%, 06/02/23(b) |
6,680 | 6,746,401 |
S C H E D U L E O F I N V E S T M E N T S |
29 |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Ultra Short-Term Bond ETF (Percentages shown are based on Net Assets) |
Security |
Par (000) |
Value | ||||||
Banks (continued) | ||||||||
Truist
Bank |
||||||||
0.25%,
01/17/24 (Call 01/17/23), |
$ | 45,000 | $ | 44,998,295 | ||||
1.25%, 03/09/23 (Call 02/09/23) |
15,000 | 15,147,749 | ||||||
U.S. Bank NA/Cincinnati OH, |
||||||||
0.57%,
05/23/22 (Call 04/22/22), |
4,750 | 4,758,786 | ||||||
UBS AG/London |
||||||||
0.37%,
06/01/23, (SOFR + |
8,470 | 8,494,123 | ||||||
0.38%, 06/01/23(b) |
4,440 | 4,417,316 | ||||||
0.41%,
02/09/24, (SOFR + |
5,000 | 5,012,600 | ||||||
0.45%, 02/09/24(b) |
7,000 | 6,914,985 | ||||||
0.50%,
08/09/24, (SOFR + |
8,470 | 8,514,976 | ||||||
0.70%, 08/09/24(b) |
4,330 | 4,302,431 | ||||||
1.75%, 04/21/22 (Call 03/21/22)(b) |
6,085 | 6,116,112 | ||||||
Westpac Banking Corp., |
||||||||
2.00%, 01/13/23 |
2,375 | 2,418,867 | ||||||
|
|
|||||||
893,768,761 | ||||||||
Beverages — 0.7% | ||||||||
Coca-Cola Europacific Partners PLC, 0.50%, 05/05/23(b) |
42,000 | 41,807,857 | ||||||
PepsiCo Inc., 0.75%, 05/01/23 |
1,615 | 1,622,728 | ||||||
|
|
|||||||
43,430,585 | ||||||||
Biotechnology — 0.6% | ||||||||
Gilead Sciences Inc. |
||||||||
0.65%,
09/29/23 (Call 11/08/21), |
10,800 | 10,800,447 | ||||||
0.75%, 09/29/23 (Call 11/09/21) |
21,295 | 21,250,313 | ||||||
|
|
|||||||
32,050,760 | ||||||||
Cosmetics & Personal Care — 0.1% | ||||||||
Unilever
Capital Corp., |
5,975 | 5,920,933 | ||||||
|
|
|||||||
Diversified Financial Services — 0.1% | ||||||||
LSEGA
Financing PLC, |
3,895 | 3,858,986 | ||||||
|
|
|||||||
Electric — 5.3% | ||||||||
Dominion Energy Inc., |
||||||||
Series
D, 0.65%, 09/15/23 |
30,560 | 30,567,752 | ||||||
Duke Energy Corp. |
||||||||
0.30%,
06/10/23, (SOFR + |
14,765 | 14,767,347 | ||||||
2.40%, 08/15/22 (Call 07/15/22) |
6,610 | 6,702,036 | ||||||
Duke Energy Florida LLC, Series A, |
||||||||
0.37%, 11/26/21, (3 mo. LIBOR US + 0.250%)(a) |
9,703 | 9,704,863 | ||||||
Duke Energy Progress LLC, Series A, |
||||||||
0.30%,
02/18/22 (Call 11/09/21), |
37,641 | 37,634,976 | ||||||
Eversource
Energy |
23,850 | 23,811,363 | ||||||
Series K, 2.75%, 03/15/22 (Call 02/15/22) |
22,627 | 22,782,611 | ||||||
Florida
Power & Light Co., |
11,020 | 11,018,348 | ||||||
National Rural Utilities Cooperative Finance Corp., |
||||||||
Series D, 0.38%, 10/18/24, (SOFR + 0.330%)(a) |
5,000 | 5,004,197 | ||||||
NextEra Energy Capital Holdings Inc. |
||||||||
0.40%,
02/22/23 (Call 11/29/21), |
45,000 | 45,001,763 | ||||||
0.59%,
03/01/23, (SOFR + |
9,305 | 9,341,289 | ||||||
0.85%, 02/25/22, (3 mo. LIBOR US + 0.720%)(a) |
3,000 | 3,005,526 | ||||||
1.00%, 11/03/23 (Call 05/03/22), (SOFR + 0.400%)(a) |
30,000 | 30,017,100 | ||||||
1.95%, 09/01/22 |
15,000 | 15,188,943 | ||||||
2.90%, 04/01/22 |
2,260 | 2,283,317 | ||||||
PPL Electric Utilities Corp. |
||||||||
0.38%,
09/28/23 (Call 11/09/21), |
8,710 | 8,710,214 | ||||||
0.38%,
06/24/24 (Call 06/24/22), |
8,065 | 8,070,484 |
Security |
Par (000) |
Value | ||||||
Electric (continued) | ||||||||
WEC Energy Group Inc., 0.55%, 09/15/23 |
$ | 16,705 | $ | 16,649,936 | ||||
Xcel Energy Inc., 0.50%, 10/15/23 (Call 09/15/23) |
7,560 | 7,526,341 | ||||||
|
|
|||||||
307,788,406 | ||||||||
Electronics — 0.1% | ||||||||
Honeywell
International Inc., 0.48%, 08/19/22 |
3,666 | 3,665,701 | ||||||
|
|
|||||||
Food — 0.8% | ||||||||
Hormel Foods Corp., 0.65%, 06/03/24 (Call 06/03/22) |
12,125 | 12,085,825 | ||||||
Nestle Holdings Inc., 0.61%, 09/14/24 (Call 09/14/23)(b)(c) |
35,000 | 34,841,383 | ||||||
|
|
|||||||
46,927,208 | ||||||||
Gas — 0.9% | ||||||||
Atmos Energy Corp. |
||||||||
0.50%,
03/09/23 (Call 11/29/21), |
23,770 | 23,774,579 | ||||||
0.63%, 03/09/23 (Call 11/15/21) |
8,175 | 8,170,969 | ||||||
CenterPoint
Energy Resources Corp. |
15,935 | 15,890,521 | ||||||
3.55%, 04/01/23 (Call 03/01/23) |
6,164 | 6,394,870 | ||||||
|
|
|||||||
54,230,939 | ||||||||
Health Care - Products — 1.0% | ||||||||
Thermo Fisher Scientific Inc. 0.38%, 04/18/23 (Call 04/18/22), (SOFR + 0.350%)(a) |
20,000 | 19,986,976 | ||||||
0.58%, 10/18/24 (Call 10/18/22), (SOFR + 0.530%)(a) |
9,215 | 9,228,741 | ||||||
0.80%, 10/18/23 (Call 10/18/22) |
30,000 | 30,009,675 | ||||||
|
|
|||||||
59,225,392 | ||||||||
Health Care - Services — 0.4% | ||||||||
Roche
Holdings Inc., 0.29%, 03/05/24, |
5,370 | 5,382,721 | ||||||
UnitedHealth Group Inc., 0.55%, 05/15/24 (Call 05/15/22) |
15,135 | 15,027,220 | ||||||
|
|
|||||||
20,409,941 | ||||||||
Household Products & Wares — 0.1% | ||||||||
Church & Dwight Co. Inc., 2.45%, 08/01/22 (Call 07/01/22) |
2,000 | 2,027,285 | ||||||
Reckitt
Benckiser Treasury Services PLC, |
3,000 | 3,031,903 | ||||||
|
|
|||||||
5,059,188 | ||||||||
Insurance — 2.7% | ||||||||
Brighthouse Financial Global Funding, |
||||||||
0.36%, 02/24/23, (SOFR + 0.310%)(a)(b)(c) |
23,890 | 23,940,732 | ||||||
Jackson National Life Global Funding, |
||||||||
0.65%, 01/06/23, (SOFR + 0.600%)(a)(b) |
26,000 | 26,117,212 | ||||||
MassMutual
Global Funding II, |
8,328 | 8,357,671 | ||||||
MET
Tower Global Funding, |
22,000 | 22,102,300 | ||||||
Metropolitan
Life Global Funding I |
27,000 | 27,122,427 | ||||||
0.40%, 09/08/22, (SOFR + 0.350%)(a)(b) |
23,000 | 23,060,244 | ||||||
0.55%, 06/07/24(b)(c) |
3,590 | 3,560,083 | ||||||
0.62%, 01/13/23, (SOFR + 0.570%)(a)(b) |
16,460 | 16,525,854 | ||||||
Principal
Life Global Funding II |
635 | 636,081 | ||||||
0.75%, 08/23/24(b)(c) |
660 | 654,480 | ||||||
Protective Life Global Funding, 0.63%, 10/13/23(b) |
4,820 | 4,819,327 | ||||||
|
|
|||||||
156,896,411 | ||||||||
Internet — 0.2% | ||||||||
Amazon.com Inc., 0.25%, 05/12/23 |
9,205 | 9,186,974 | ||||||
|
|
30 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Ultra Short-Term Bond ETF (Percentages shown are based on Net Assets) |
Security |
Par (000) |
Value | ||||||
Machinery — 1.6% | ||||||||
Caterpillar Financial Services Corp. |
||||||||
0.30%, 05/17/24, (SOFR + 0.245%)(a) |
$ | 10,000 | $ | 10,000,509 | ||||
0.32%,
11/12/21, (3 mo. LIBOR US + |
7,000 | 7,000,419 | ||||||
0.32%, 09/13/24, (SOFR + 0.270%)(a) |
15,620 | 15,660,612 | ||||||
0.35%,
01/06/22, (3 mo. LIBOR US + |
2,085 | 2,085,901 | ||||||
0.86%,
05/13/22, (3 mo. LIBOR US + |
5,000 | 5,018,306 | ||||||
0.95%, 05/13/22 |
12,000 | 12,042,212 | ||||||
John Deere Capital Corp. |
||||||||
0.17%, 07/10/23, (SOFR + 0.120%)(a) |
7,330 | 7,332,490 | ||||||
0.25%, 10/11/24, (SOFR + 0.200%)(a) |
14,290 | 14,324,010 | ||||||
0.55%, 07/05/22 |
11,060 | 11,077,435 | ||||||
Rockwell Automation Inc., 0.35%, 08/15/23 (Call 08/15/22) |
9,050 | 9,029,052 | ||||||
|
|
|||||||
93,570,946 | ||||||||
Manufacturing — 0.3% | ||||||||
Siemens Financieringsmaatschappij NV, |
||||||||
0.48%, 03/11/24, (SOFR + 0.43%)(a)(b) |
18,980 | 19,111,948 | ||||||
|
|
|||||||
Oil & Gas — 0.7% | ||||||||
Chevron Corp., 1.14%, 05/11/23 |
4,510 | 4,552,672 | ||||||
Chevron USA Inc., |
||||||||
0.33%,
08/11/23, (3 mo. LIBOR US + |
37,065 | 37,138,758 | ||||||
|
|
|||||||
41,691,430 | ||||||||
Oil & Gas Services — 0.0% | ||||||||
Schlumberger
Finance Canada Ltd., |
||||||||
(Call 10/20/22)(b) |
2,500 | 2,551,995 | ||||||
|
|
|||||||
Pharmaceuticals — 1.2% | ||||||||
AbbVie
Inc. |
23,000 | 23,019,710 | ||||||
3.25%, 10/01/22 (Call 07/01/22) |
12,685 | 12,906,334 | ||||||
3.45%, 03/15/22 (Call 01/15/22) |
5,442 | 5,475,498 | ||||||
AstraZeneca
PLC |
24,000 | 23,926,649 | ||||||
2.38%, 06/12/22 (Call 05/12/22) |
764 | 772,257 | ||||||
Merck & Co. Inc., 2.35%, 02/10/22 |
1,998 | 2,010,054 | ||||||
|
|
|||||||
68,110,502 | ||||||||
Pipelines — 1.0% | ||||||||
Enbridge
Inc. |
11,350 | 11,371,871 | ||||||
0.55%, 10/04/23 |
5,380 | 5,364,125 | ||||||
2.90%, 07/15/22 (Call 06/15/22) |
5,000 | 5,073,992 | ||||||
Enterprise
Products Operating LLC, |
7,565 | 7,623,672 | ||||||
TransCanada PipeLines Ltd., 1.00%, 10/12/24 |
||||||||
(Call 09/12/24) |
27,205 | 27,095,221 | ||||||
|
|
|||||||
56,528,881 | ||||||||
Retail — 0.4% | ||||||||
7-Eleven Inc., 0.58%, 08/10/22 (Call 11/29/21), |
||||||||
(3 mo. LIBOR US + 0.450%)(a)(b) |
25,620 | 25,625,374 | ||||||
|
|
|||||||
Savings & Loans — 0.6% | ||||||||
Nationwide
Building Society |
16,520 | 16,360,855 | ||||||
2.00%, 01/27/23(b) |
15,890 | 16,180,014 | ||||||
|
|
|||||||
32,540,869 | ||||||||
Semiconductors — 0.8% | ||||||||
Analog Devices Inc., 0.30%, 10/01/24, (SOFR + 0.250%)(a) |
15,330 | 15,345,579 |
Security | Par (000) |
Value | ||||||
Semiconductors (continued) | ||||||||
NVIDIA
Corp. |
$ | 28,000 | $ | 27,919,552 | ||||
0.58%, 06/14/24 (Call 06/14/23) |
5,305 | 5,280,613 | ||||||
|
|
|||||||
48,545,744 | ||||||||
Software — 0.3% | ||||||||
Adobe Inc., 1.70%, 02/01/23 |
4,010 | 4,073,077 | ||||||
Roper Technologies Inc., 0.45%, 08/15/22 |
2,390 | 2,389,994 | ||||||
salesforce.com Inc., 0.63%, 07/15/24 (Call 07/15/22) |
9,415 | 9,397,239 | ||||||
|
|
|||||||
15,860,310 | ||||||||
Telecommunications — 1.0% | ||||||||
Bell Canada, Series US-3, 0.75%, 03/17/24 |
15,081 | 15,007,181 | ||||||
NTT Finance Corp., 0.58%, 03/01/24(b) |
6,005 | 5,961,690 | ||||||
Rogers Communications Inc., 0.73%, 03/22/22, |
||||||||
(3 mo. LIBOR US + 0.600%)(a) |
18,675 | 18,713,178 | ||||||
Verizon
Communications Inc. |
16,955 | 17,036,723 | ||||||
0.75%, 03/22/24 |
3,580 | 3,570,172 | ||||||
|
|
|||||||
60,288,944 | ||||||||
Transportation — 0.1% | ||||||||
Ryder System Inc., 2.88%, 06/01/22 (Call 05/01/22) |
4,899 | 4,957,068 | ||||||
|
|
|||||||
Total
Corporate Bonds & Notes — 42.4% |
2,460,207,161 | |||||||
|
|
|||||||
Municipal Debt Obligations |
||||||||
Alabama — 0.1% | ||||||||
Alabama
Federal Aid Highway Finance Authority |
3,035 | 3,034,141 | ||||||
0.45%, 09/01/23 |
3,545 | 3,535,152 | ||||||
|
|
|||||||
6,569,293 | ||||||||
Arizona — 0.1% | ||||||||
County
of Pima AZ COP |
1,950 | 1,950,337 | ||||||
0.48%, 12/01/22 |
1,020 | 1,021,812 | ||||||
|
|
|||||||
2,972,149 | ||||||||
California — 0.4% | ||||||||
California Health Facilities Financing Authority RB, 0.42%, 06/01/22 |
2,400 | 2,401,953 | ||||||
County of Fresno CA, 0.25%, 06/30/22 |
19,900 | 19,898,786 | ||||||
Port of Oakland RB, 0.82%, 05/01/23 |
480 | 482,115 | ||||||
|
|
|||||||
22,782,854 | ||||||||
Connecticut — 0.0% | ||||||||
Connecticut
Housing Finance Authority RB, Class A4, |
580 | 579,862 | ||||||
|
|
|||||||
Hawaii — 0.1% | ||||||||
State of Hawaii GO, 0.43%, 10/01/22 |
4,945 | 4,953,748 | ||||||
|
|
|||||||
New York — 2.8% | ||||||||
City of New York NY GO |
||||||||
Class B2 0.40%, 11/01/21 |
4,990 | 4,990,035 | ||||||
Class D 0.43%, 08/01/22 |
5,575 | 5,579,912 | ||||||
Deutsche
Bank Spears/Lifers Trust, |
||||||||
(Call 11/08/21)(a)(b)(d) |
51,500 | 51,500,000 | ||||||
Long
Island Power Authority RB |
6,800 | 6,775,432 | ||||||
0.76%, 03/01/23 (Call 06/01/22) |
1,290 | 1,290,899 | ||||||
Mizuho Floater/Residual Trust RB |
||||||||
VRDN, 0.34%, 02/01/23 (Put 12/06/21)(a)(b)(d) |
13,000 | 13,000,000 |
S C H E D U L E O F I N V E S T M E N T S |
31 |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Ultra Short-Term Bond ETF (Percentages shown are based on Net Assets) |
Security |
Par |
Value | ||||||
New York (continued) | ||||||||
VRDN, 0.34%, 07/01/25 (Put 12/01/21)(a)(b)(d) |
$ | 5,000 | $ | 5,000,000 | ||||
VRDN, 0.34%, 09/01/27 (Put 12/01/21)(a)(b)(d) |
11,000 | 11,000,000 | ||||||
VRDN, 0.34%, 12/01/58 (Put 12/01/21)(a)(b)(d) |
3,500 | 3,500,000 | ||||||
VRDN, 0.34%, 03/01/31 (Put 12/01/21)(a)(b)(d) |
18,000 | 18,000,000 | ||||||
VRDN, 0.34%, 03/01/31 (Put 12/01/21)(a)(b)(d) |
8,675 | 8,675,000 | ||||||
VRDN, 0.34%, 02/15/41 (Put 11/29/21)(a)(b)(d) |
6,057 | 6,056,633 | ||||||
VRDN, 0.34%, 11/01/56 (Put 03/01/22)(a)(b)(d) |
250 | 250,000 | ||||||
VRDN, 0.49%, 09/01/26 (Put 11/29/21)(a)(b)(d) |
6,000 | 6,000,000 | ||||||
Port Authority of New York & New Jersey RB, Series AAA, 1.09%, 07/01/23 |
12,570 | 12,666,776 | ||||||
Taxable Municipal Funding Trust RB |
||||||||
VRDN, 0.27%, 01/16/25 (Put 10/29/21)(a)(b)(d) |
2,170 | 2,170,000 | ||||||
VRDN, 0.27%, 04/01/25 (Put 11/05/21)(a)(b)(d) |
350 | 350,000 | ||||||
VRDN, 0.27%, 09/01/30 (Put 05/01/25)(a)(b)(d) |
6,980 | 6,980,000 | ||||||
VRDN, 0.27%, 02/01/31 (Put 12/01/21)(a)(b)(d) |
400 | 400,000 | ||||||
VRDN, 0.27%, 11/15/54 (Put 11/15/26)(a)(b)(d) |
1,050 | 1,050,000 | ||||||
|
|
|||||||
165,234,687 | ||||||||
Texas — 0.0% | ||||||||
City of Houston Texas Airport System Revenue RB, 0.88%, 07/01/22 |
690 | 692,427 | ||||||
|
|
|||||||
Total
Municipal Debt Obligations — 3.5% |
203,785,020 | |||||||
|
|
|||||||
Repurchase Agreements(a)(e) |
||||||||
Bank of America Securities Inc., 0.39%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $35,001,138, collateralized by non-agency mortgage-backed security, 0.84% to 4.49%, due 01/25/24 to 09/25/51, par and fair value of $287,244,010 and $38,807,623, respectively) |
35,000 | 35,000,000 | ||||||
Bank of America Securities Inc., 0.67%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $7,000,391, collateralized by non-agency mortgage-backed security, 3.00% , due 10/25/58, par and fair value of $10,126,493 and $8,400,000, respectively) |
7,000 | 7,000,000 | ||||||
Barclays Bank PLC, 0.27%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $15,000,338, collateralized by non-agency mortgage-backed security, 4.41%, due 07/25/49, par and fair value of $44,978,788 and $17,250,000, respectively) |
15,000 | 15,000,000 | ||||||
BNP Paribas, 0.42%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $20,000,700, collateralized by non-agency mortgage-backed security, 2.65% to 11.00%, due 03/15/23 to 12/31/79, par and fair value of $21,549,685 and $21,977,836, respectively) |
20,000 | 20,000,000 | ||||||
Citigroup Global Markets Inc., 0.36%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $9,000,270, collateralized by non-agency mortgage-backed security, 1.25% to 3.54%, due 01/15/26 to 11/19/31, par and fair value of $9,657,000 and $9,270,166, respectively) |
9,000 | 9,000,000 | ||||||
Citigroup Global Markets Inc., 0.38%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $12,000,380, collateralized by non-agency mortgage-backed security, 0.65% to 3.54%, due 06/18/22 to 11/19/31, par and fair value of $12,753,000 and $12,505,619, respectively) |
12,000 | 12,000,000 |
Security |
Par (000) |
Value | ||||||
Credit Suisse Securities (USA) LLC, 0.66%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $35,001,925, collateralized by non-agency mortgage-backed security, 0.00% to 19.05%, due 11/01/24 to 07/16/40, par and fair value of $56,958,915 and $40,250,000, respectively) |
$ | 35,000 | $ | 35,000,000 | ||||
Goldman Sachs & Co., 0.57%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $60,002,850, collateralized by non-agency mortgage-backed security, 0.00% to 5.35%, due 04/25/22 to 08/01/41, par and fair value of $63,495,577 and $63,000,001, respectively) |
60,000 | 60,000,000 | ||||||
Mizuho Securities USA Inc., 0.49%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $6,000,245, collateralized by non-agency mortgage-backed security, 4.00% to 5.00%, due 08/01/35 to 04/01/48, par and fair value of $5,370,000 and $6,301,166, respectively) |
6,000 | 6,000,000 | ||||||
Mizuho Securities USA Inc., 0.53%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $11,000,486, collateralized by non-agency mortgage-backed security, 0.00% to 6.31%, due 02/25/22 to 02/15/54, par and fair value of $62,769,000 and $12,620,262, respectively) |
11,000 | 11,000,000 | ||||||
Wells Fargo Securities, 0.27%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $10,000,225, collateralized by non-agency mortgage-backed security, 0.08%, due 06/17/26, par and fair value of $10,304,000 and $10,200,376, respectively) |
10,000 | 10,000,000 | ||||||
Wells Fargo Securities, 0.27%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $11,000,248, collateralized by non-agency mortgage-backed security, 1.83% to 3.84%, due 03/15/50 to 05/25/65, par and fair value of $13,245,419 and $12,282,983, respectively) |
11,000 | 11,000,000 | ||||||
Wells Fargo Securities, 0.47%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $18,000,705, collateralized by non-agency mortgage-backed security, 0.00% to 5.82%, due 10/15/27 to 05/15/48, par and fair value of $26,198,502 and $20,700,000, respectively) |
18,000 | 18,000,000 | ||||||
Wells Fargo Securities, 0.47%, 11/01/21 (Purchased on 10/29/21 to be repurchased at $3,000,118, collateralized by non-agency mortgage-backed security, 7.88% to 8.75%, due 09/15/23 to 04/30/25, par and fair value of $2,948,000 and $3,300,721, respectively) |
3,000 | 3,000,000 | ||||||
|
|
|||||||
Total
Repurchase Agreements — 4.3% |
252,000,000 | |||||||
|
|
|||||||
U.S. Government Obligations |
||||||||
U.S. Government Obligations — 0.2% | ||||||||
U.S. Treasury Note/Bond, 0.25%, 09/30/23(c) |
10,000 | 9,959,375 | ||||||
|
|
|||||||
Total
U.S. Government Obligations — 0.2% |
9,959,375 | |||||||
|
|
32 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) October 31, 2021 |
BlackRock Ultra Short-Term Bond ETF (Percentages shown are based on Net Assets) |
Security | Shares (000) |
Value | ||||||
Money Market Funds |
||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(f)(g)(h) |
17,711 | $ | 17,719,634 | |||||
|
|
|||||||
Total
Money Market Funds — 0.3% |
17,719,634 | |||||||
|
|
|||||||
Total
Investments in Securities — 100.9% |
5,858,453,684 | |||||||
Other Assets, Less Liabilities — (0.9)% |
(51,791,702 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 5,806,661,982 | ||||||
|
|
(a) |
Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
(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) |
Variable rate security. Rate as of period end and maturity is the date the principal owed can be recovered through demand. |
(e) |
Maturity date represents next reset date. |
(f) |
Affiliate of the Fund. |
(g) |
Annualized 7-day yield as of period end. |
(h) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 10/31/20 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 10/31/21 |
Shares Held at 10/31/21 (000) |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | — | $ | 17,719,662 | (a) | $ | — | $ | (28 | ) | $ | — | $ | 17,719,634 | 17,711 | $ | 7,134 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares(c) |
53,040,000 | — | (53,040,000 | )(a) | — | — | — | — | 4,492 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (28 | ) | $ | — | $ | 17,719,634 | $ | 11,626 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
(c) |
As of period end, the entity is no longer held. |
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 |
||||||||||||||||
Asset-Backed Securities |
$ | — | $ | 43,632,722 | $ | — | $ | 43,632,722 | ||||||||
Certificates of Deposit |
— | 804,457,691 | — | 804,457,691 | ||||||||||||
Commercial Paper |
— | 2,066,692,081 | — | 2,066,692,081 | ||||||||||||
Corporate Bonds & Notes |
— | 2,460,207,161 | — | 2,460,207,161 | ||||||||||||
Municipal Debt Obligations |
— | 203,785,020 | — | 203,785,020 | ||||||||||||
Repurchase Agreements |
— | 252,000,000 | — | 252,000,000 | ||||||||||||
U.S. Government Obligations |
— | 9,959,375 | — | 9,959,375 | ||||||||||||
Money Market Funds |
17,719,634 | — | — | 17,719,634 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 17,719,634 | $ | 5,840,734,050 | $ | — | $ | 5,858,453,684 | |||||||||
|
|
|
|
|
|
|
|
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 |
33 |
Statements of Assets and Liabilities
October 31, 2021
BlackRock Short Maturity Bond ETF |
BlackRock Short Maturity Municipal Bond ETF |
BlackRock Ultra Short-Term Bond ETF |
||||||||||
ASSETS |
||||||||||||
Investments in securities, at value (including securities on loan)(a): |
||||||||||||
Unaffiliated(b) |
$ | 4,528,670,631 | $ | 293,996,581 | $ | 5,588,734,050 | ||||||
Affiliated(c) |
258,199,059 | — | 17,719,634 | |||||||||
Repurchase agreements, at value — Unaffiliated(d) |
125,000,000 | — | 252,000,000 | |||||||||
Cash |
10,408,155 | 67,894 | 1,198,981 | |||||||||
Foreign currency, at value(e) |
147,908 | — | — | |||||||||
Receivables: |
||||||||||||
Investments sold |
30,010,983 | — | — | |||||||||
Securities lending income — Affiliated |
7,399 | — | 3,823 | |||||||||
Dividends |
127,415 | 2,698 | 926,111 | |||||||||
Interest |
16,119,051 | 1,691,306 | 5,190,698 | |||||||||
Unrealized appreciation on: |
||||||||||||
Forward foreign currency exchange contracts |
560,965 | — | — | |||||||||
|
|
|
|
|
|
|||||||
Total assets |
4,969,251,566 | 295,758,479 | 5,865,773,297 | |||||||||
|
|
|
|
|
|
|||||||
LIABILITIES |
||||||||||||
Collateral on securities loaned, at value |
49,853,919 | — | 17,719,662 | |||||||||
Payables: |
||||||||||||
Investments purchased |
64,087,848 | 2,527,573 | 41,000,000 | |||||||||
Investment advisory fees |
1,020,537 | 61,905 | 391,653 | |||||||||
Unrealized depreciation on: |
||||||||||||
Forward foreign currency exchange contracts |
89,230 | — | — | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
115,051,534 | 2,589,478 | 59,111,315 | |||||||||
|
|
|
|
|
|
|||||||
NET ASSETS |
$ | 4,854,200,032 | $ | 293,169,001 | $ | 5,806,661,982 | ||||||
|
|
|
|
|
|
|||||||
NET ASSETS CONSIST OF: |
||||||||||||
Paid-in capital |
$ | 4,881,553,299 | $ | 292,852,123 | $ | 5,804,634,296 | ||||||
Accumulated earnings (loss) |
(27,353,267 | ) | 316,878 | 2,027,686 | ||||||||
|
|
|
|
|
|
|||||||
NET ASSETS |
$ | 4,854,200,032 | $ | 293,169,001 | $ | 5,806,661,982 | ||||||
|
|
|
|
|
|
|||||||
Shares outstanding |
96,950,000 | 5,850,000 | 115,100,000 | |||||||||
|
|
|
|
|
|
|||||||
Net asset value |
$ | 50.07 | $ | 50.11 | $ | 50.45 | ||||||
|
|
|
|
|
|
|||||||
Shares authorized |
Unlimited | Unlimited | Unlimited | |||||||||
|
|
|
|
|
|
|||||||
Par value |
None | None | None | |||||||||
|
|
|
|
|
|
|||||||
(a) Securities loaned, at value |
$ | 48,399,538 | $ | — | $ | 17,312,255 | ||||||
(b) Investments, at cost — Unaffiliated |
$ | 4,525,010,611 | $ | 293,587,118 | $ | 5,586,815,571 | ||||||
(c) Investments, at cost — Affiliated |
$ | 258,190,345 | $ | — | $ | 17,719,634 | ||||||
(d) Repurchase agreements, at cost — Unaffiliated |
$ | 125,000,000 | $ | — | $ | 252,000,000 | ||||||
(e) Foreign currency, at cost |
$ | 145,664 | $ | — | $ | — |
See notes to financial statements.
34 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Year Ended October 31, 2021
BlackRock Short Maturity Bond ETF |
BlackRock Short Maturity Municipal Bond ETF |
BlackRock Ultra Short-Term Bond ETF |
||||||||||
INVESTMENT INCOME |
||||||||||||
Dividends — Affiliated |
$ | 63,163 | $ | 507 | $ | 4,492 | ||||||
Interest — Unaffiliated |
46,783,783 | 1,672,710 | 28,109,648 | |||||||||
Securities lending income — Affiliated — net |
69,595 | — | 7,134 | |||||||||
Other income — Unaffiliated |
7,209 | — | — | |||||||||
|
|
|
|
|
|
|||||||
Total investment income |
46,923,750 | 1,673,217 | 28,121,274 | |||||||||
|
|
|
|
|
|
|||||||
EXPENSES |
||||||||||||
Investment advisory fees |
11,644,353 | 708,852 | 4,298,193 | |||||||||
Miscellaneous |
173 | 173 | 173 | |||||||||
|
|
|
|
|
|
|||||||
Total expenses |
11,644,526 | 709,025 | 4,298,366 | |||||||||
Less: |
||||||||||||
Investment advisory fees waived |
(165,839 | ) | — | — | ||||||||
|
|
|
|
|
|
|||||||
Total expenses after fees waived |
11,478,687 | 709,025 | 4,298,366 | |||||||||
|
|
|
|
|
|
|||||||
Net investment income |
35,445,063 | 964,192 | 23,822,908 | |||||||||
|
|
|
|
|
|
|||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||
Net realized gain (loss) from: |
||||||||||||
Investments — Unaffiliated |
7,346,466 | (3,492 | ) | 115,948 | ||||||||
Investments — Affiliated |
(5,160 | ) | (1,263 | ) | (28 | ) | ||||||
In-kind redemptions — Unaffiliated |
124,644 | — | — | |||||||||
Forward foreign currency exchange contracts |
(3,524,633 | ) | — | — | ||||||||
Foreign currency transactions |
1,899,314 | — | — | |||||||||
|
|
|
|
|
|
|||||||
Net realized gain (loss) |
5,840,631 | (4,755 | ) | 115,920 | ||||||||
|
|
|
|
|
|
|||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||
Investments — Unaffiliated |
(10,670,239 | ) | (395,104 | ) | (9,452,665 | ) | ||||||
Investments — Affiliated |
(2,581 | ) | — | — | ||||||||
Forward foreign currency exchange contracts |
1,145,432 | — | — | |||||||||
Foreign currency translations |
(23,133 | ) | — | — | ||||||||
|
|
|
|
|
|
|||||||
Net change in unrealized appreciation (depreciation) |
(9,550,521 | ) | (395,104 | ) | (9,452,665 | ) | ||||||
|
|
|
|
|
|
|||||||
Net realized and unrealized loss |
(3,709,890 | ) | (399,859 | ) | (9,336,745 | ) | ||||||
|
|
|
|
|
|
|||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 31,735,173 | $ | 564,333 | $ | 14,486,163 | ||||||
|
|
|
|
|
|
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
35 |
Statements of Changes in Net Assets
BlackRock Short Maturity Bond ETF |
BlackRock Short Maturity Municipal Bond ETF |
|||||||||||||||||||
Year Ended 10/31/21 |
Year Ended 10/31/20 |
Year Ended 10/31/21 |
Year Ended 10/31/20 |
|||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 35,445,063 | $ | 110,901,012 | $ | 964,192 | $ | 2,385,820 | ||||||||||||
Net realized gain (loss) |
5,840,631 | (36,619,969 | ) | (4,755 | ) | 10,098 | ||||||||||||||
Net change in unrealized appreciation (depreciation) |
(9,550,521 | ) | (3,420,150 | ) | (395,104 | ) | 293,177 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase in net assets resulting from operations |
31,735,173 | 70,860,893 | 564,333 | 2,689,095 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(39,578,305 | ) | (120,510,021 | ) | (1,005,763 | ) | (2,591,109 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
464,293,661 | (1,812,860,054 | ) | 2,519,567 | 80,460,402 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
456,450,529 | (1,862,509,182 | ) | 2,078,137 | 80,558,388 | |||||||||||||||
Beginning of year |
4,397,749,503 | 6,260,258,685 | 291,090,864 | 210,532,476 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of year |
$ | 4,854,200,032 | $ | 4,397,749,503 | $ | 293,169,001 | $ | 291,090,864 | ||||||||||||
|
|
|
|
|
|
|
|
(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
See notes to financial statements.
36 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
BlackRock Ultra Short-Term Bond ETF |
||||||||
Year Ended 10/31/21 |
Year Ended 10/31/20 |
|||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||
OPERATIONS |
||||||||
Net investment income |
$ | 23,822,908 | $ | 45,288,500 | ||||
Net realized gain (loss) |
115,920 | (948,450 | ) | |||||
Net change in unrealized appreciation (depreciation) |
(9,452,665 | ) | 6,306,873 | |||||
|
|
|
|
|||||
Net increase in net assets resulting from operations |
14,486,163 | 50,646,923 | ||||||
|
|
|
|
|||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||
Decrease in net assets resulting from distributions to shareholders |
(24,852,336 | ) | (47,122,114 | ) | ||||
|
|
|
|
|||||
CAPITAL SHARE TRANSACTIONS |
||||||||
Net increase in net assets derived from capital share transactions |
894,302,572 | 2,723,809,626 | ||||||
|
|
|
|
|||||
NET ASSETS |
||||||||
Total increase in net assets |
883,936,399 | 2,727,334,435 | ||||||
Beginning of year |
4,922,725,583 | 2,195,391,148 | ||||||
|
|
|
|
|||||
End of year |
$ | 5,806,661,982 | $ | 4,922,725,583 | ||||
|
|
|
|
(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 |
37 |
(For a share outstanding throughout each period)
BlackRock Short Maturity Bond ETF | ||||||||||||||||||||
Year Ended 10/31/21 |
Year Ended 10/31/20 |
Year Ended 10/31/19 |
Year Ended 10/31/18 |
Year Ended 10/31/17 |
||||||||||||||||
|
||||||||||||||||||||
Net asset value, beginning of year |
$ | 50.15 | $ | 50.36 | $ | 50.12 | $ | 50.25 | $ | 50.17 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income(a) |
0.38 | 0.91 | 1.37 | 1.11 | 0.74 | |||||||||||||||
Net realized and unrealized gain (loss)(b) |
(0.03 | ) | (0.16 | ) | 0.21 | (0.23 | ) | 0.04 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net increase from investment operations |
0.35 | 0.75 | 1.58 | 0.88 | 0.78 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Distributions(c) |
||||||||||||||||||||
From net investment income |
(0.43 | ) | (0.96 | ) | (1.34 | ) | (1.01 | ) | (0.70 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions |
(0.43 | ) | (0.96 | ) | (1.34 | ) | (1.01 | ) | (0.70 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value, end of year |
$ | 50.07 | $ | 50.15 | $ | 50.36 | $ | 50.12 | $ | 50.25 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Return(d) |
||||||||||||||||||||
Based on net asset value |
0.70 | % | 1.51 | % | 3.19 | % | 1.78 | % | 1.57 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||
Total expenses |
0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total expenses after fees waived |
0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income |
0.76 | % | 1.81 | % | 2.73 | % | 2.21 | % | 1.47 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||||||||
Net assets, end of year (000) |
$ | 4,854,200 | $ | 4,397,750 | $ | 6,260,259 | $ | 4,981,818 | $ | 2,909,738 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio turnover rate(e) |
55 | % | 67 | %(f) | 58 | %(f) | 48 | % | 56 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(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) |
Portfolio turnover rate excludes in-kind transactions. |
(f) |
Includes mortgage dollar roll transactions (“MDRs”). |
See notes to financial statements.
38 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
BlackRock Short Maturity Municipal Bond ETF | ||||||||||||||||||||
Year Ended 10/31/21 |
Year Ended 10/31/20 |
Year Ended 10/31/19 |
Year Ended 10/31/18 |
Year Ended 10/31/17 |
||||||||||||||||
|
||||||||||||||||||||
Net asset value, beginning of year |
$ | 50.19 | $ | 50.13 | $ | 49.85 | $ | 50.01 | $ | 50.02 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income(a) |
0.17 | 0.51 | 0.81 | 0.68 | 0.49 | |||||||||||||||
Net realized and unrealized gain (loss)(b) |
(0.07 | ) | 0.13 | 0.26 | (0.21 | ) | (0.03 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net increase from investment operations |
0.10 | 0.64 | 1.07 | 0.47 | 0.46 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Distributions(c) |
||||||||||||||||||||
From net investment income |
(0.18 | ) | (0.58 | ) | (0.79 | ) | (0.63 | ) | (0.47 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions |
(0.18 | ) | (0.58 | ) | (0.79 | ) | (0.63 | ) | (0.47 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value, end of year |
$ | 50.11 | $ | 50.19 | $ | 50.13 | $ | 49.85 | $ | 50.01 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Return(d) |
||||||||||||||||||||
Based on net asset value |
0.19 | % | 1.29 | % | 2.16 | % | 0.95 | % | 0.93 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||
Total expenses |
0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total expenses after fees waived |
0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income |
0.34 | % | 1.02 | % | 1.63 | % | 1.35 | % | 0.99 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||||||||
Net assets, end of year (000) |
$ | 293,169 | $ | 291,091 | $ | 210,532 | $ | 127,111 | $ | 52,507 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio turnover rate(e) |
52 | % | 108 | % | 170 | % | 221 | % | 163 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(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) |
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 |
39 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
BlackRock Ultra Short-Term Bond ETF | ||||||||||||||||||||
Year Ended 10/31/21 |
Year Ended 10/31/20 |
Year Ended 10/31/19 |
Year Ended 10/31/18 |
Year Ended 10/31/17 |
||||||||||||||||
|
||||||||||||||||||||
Net asset value, beginning of year |
$ | 50.54 | $ | 50.41 | $ | 50.15 | $ | 50.12 | $ | 50.04 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income(a) |
0.22 | 0.69 | 1.38 | 1.16 | 0.71 | |||||||||||||||
Net realized and unrealized gain (loss)(b) |
(0.07 | ) | 0.25 | 0.23 | (0.16 | ) | 0.02 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net increase from investment operations |
0.15 | 0.94 | 1.61 | 1.00 | 0.73 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Distributions(c) |
||||||||||||||||||||
From net investment income |
(0.24 | ) | (0.81 | ) | (1.35 | ) | (0.97 | ) | (0.65 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions |
(0.24 | ) | (0.81 | ) | (1.35 | ) | (0.97 | ) | (0.65 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value, end of year |
$ | 50.45 | $ | 50.54 | $ | 50.41 | $ | 50.15 | $ | 50.12 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Return(d) |
||||||||||||||||||||
Based on net asset value |
0.29 | % | 1.89 | % | 3.25 | % | 2.02 | % | 1.47 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||
Total expenses |
0.08 | % | 0.08 | % | 0.08 | % | 0.08 | % | 0.09 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income |
0.44 | % | 1.36 | % | 2.74 | % | 2.33 | % | 1.43 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||||||||
Net assets, end of year (000) |
$ | 5,806,662 | $ | 4,922,726 | $ | 2,195,391 | $ | 601,794 | $ | 187,932 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio turnover rate(e) |
47 | % | 54 | % | 16 | % | 32 | % | 11 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(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) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
40 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
1. |
ORGANIZATION |
iShares U.S. ETF 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”):
BlackRock ETF | Diversification Classification |
|||
Short Maturity Bond(a) |
Diversified | |||
Short Maturity Municipal Bond(b) |
Diversified | |||
Ultra Short-Term Bond(c) |
Diversified |
(a) |
Formerly the iShares Short Maturity Bond ETF |
(b) |
Formerly the iShares Short Maturity Municipal Bond ETF |
(c) |
Formerly the iShares Ultra Short-Term Bond ETF |
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 (the “trade dates”). 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. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis.
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.
Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g.,forward foreign currency exchange contracts) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and record cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, 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 or obligations.
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.
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.
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 |
41 |
Notes to Financial Statements (continued)
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. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). 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 a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• |
Fixed-income investments for which market quotations are readily available are generally valued using the last available bid price or current market quotations provided by independent dealers or third-party pricing services. Pricing services generally value fixed income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value. |
• |
Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
• |
Forward foreign currency exchange contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. |
• |
Repurchase agreements are valued at amortized cost, which approximates market value. |
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 Global Valuation Committee, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global 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 Global Valuation Committee, or its delegate, 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 Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.
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 Global 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 Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies 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 |
Repurchase Agreements: Repurchase agreements are commitments to purchase a security from a counterparty who agrees to repurchase the same security at a mutually agreed upon date and price. On a daily basis, the counterparty is required to maintain collateral subject to the agreement and in value no less than the agreed upon repurchase amount. Repurchase agreements may be traded bilaterally, in a tri-party arrangement or may be centrally cleared through a sponsoring agent. Subject to the custodial undertaking associated with a tri-party repurchase arrangement and for centrally cleared agreements, a third party custodian maintains accounts to hold collateral
42 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (continued)
for a fund and its counterparties. Typically, a fund and counterparty are not permitted to sell, re-pledge or use the collateral absent a default by the counterparty or the fund. In the event the counterparty defaults and the fair value of the collateral declines, a fund could experience losses, delays and costs in liquidating the collateral.
Repurchase agreements are entered into by a fund under Master Repurchase Agreements (each, an “MRA”). The MRA permits the fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables with collateral held by and/or posted to the counterparty. As a result, one single net payment is created. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Based on the terms of the MRA, the fund receives securities as collateral with a market value in excess of the repurchase price at maturity. Upon a bankruptcy or insolvency of the MRA counterparty, the fund would recognize a liability with respect to such excess collateral. The liability reflects the fund’s obligation under bankruptcy law to return the excess to the counterparty.
The following table summarizes the open repurchase agreements as of October 31, 2021 which are subject to offset under an MRA:
BlackRock ETF and Counterparty |
|
Market Value of Repurchase Agreements |
|
Cash Collateral Received |
|
Non-Cash Collateral Received |
(a) |
Net Amount | ||||||||
Short Maturity Bond |
||||||||||||||||
Goldman Sachs Inc. |
$ | 125,000,000 | $ | — | $ | 125,000,000 | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Ultra Short-Term Bond |
||||||||||||||||
Bank of America Securities Inc. |
$ | 42,000,000 | $ | — | $ | 42,000,000 | $ | — | ||||||||
Barclays Bank PLC |
15,000,000 | — | 15,000,000 | — | ||||||||||||
BNP Paribas |
20,000,000 | — | 20,000,000 | — | ||||||||||||
Citigroup Global Markets Inc. |
21,000,000 | — | 21,000,000 | — | ||||||||||||
Credit Suisse Securities (USA) LLC |
35,000,000 | — | 35,000,000 | — | ||||||||||||
Goldman Sachs Inc. |
60,000,000 | — | 60,000,000 | — | ||||||||||||
Mizuho Securities USA Inc. |
17,000,000 | — | 17,000,000 | — | ||||||||||||
Wells Fargo Securities LLC |
42,000,000 | — | 42,000,000 | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 252,000,000 | $ | — | $ | 252,000,000 | $ | — | |||||||||
|
|
|
|
|
|
|
|
(a) |
Collateral received in excess of the market value of repurchase agreements 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. |
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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, 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.
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 |
43 |
Notes to Financial Statements (continued)
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:
BlackRock ETF and Counterparty | |
Market Value of Securities on Loan |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received |
|
Net Amount | ||||||
Short Maturity Bond |
||||||||||||||||
Barclays Bank PLC |
$ | 2,032,926 | $ | 2,032,926 | $ | — | $ | — | ||||||||
BNP Paribas SA |
3,992,425 | 3,992,425 | — | — | ||||||||||||
BofA Securities, Inc. |
2,119,619 | 2,119,619 | — | — | ||||||||||||
Citigroup Global Markets, Inc. |
111,346 | 111,346 | — | — | ||||||||||||
Deutsche Bank Securities, Inc. |
2,845,562 | 2,845,562 | — | — | ||||||||||||
Goldman Sachs & Co. LLC |
2,424,347 | 2,424,347 | — | — | ||||||||||||
HSBC Securities (USA), Inc. |
9,596,300 | 9,596,300 | — | — | ||||||||||||
J.P. Morgan Securities LLC |
13,547,074 | 13,547,074 | — | — | ||||||||||||
Mitsubishi UFJ Securities Holdings Co., Ltd. |
7,849,711 | 7,849,711 | — | — | ||||||||||||
Morgan Stanley |
3,109,246 | 3,109,246 | — | — | ||||||||||||
Wells Fargo Securities LLC |
770,982 | 770,982 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 48,399,538 | $ | 48,399,538 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Ultra Short-Term Bond |
||||||||||||||||
Barclays Capital, Inc |
$ | 4,381,999 | $ | 4,381,999 | $ | — | $ | — | ||||||||
BofA Securities, Inc |
4,407,989 | 4,407,989 | — | — | ||||||||||||
Nomura Securities International, Inc |
203,566 | 203,566 | — | — | ||||||||||||
Toronto Dominion Bank |
3,230,037 | 3,230,037 | — | — | ||||||||||||
Wells Fargo Securities LLC |
5,088,664 | 5,088,664 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 17,312,255 | $ | 17,312,255 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
(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 |
Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange contracts are entered into to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).
A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a specified date. These contracts help to manage the overall exposure to the currencies in which some of the investments held by the Funds are denominated and in some cases, may be used to obtain exposure to a particular market.The contracts are traded over-the-counter (“OTC”) and not on an organized exchange.
The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation 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 value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a contract changes unfavorably due to movements in the value of the referenced foreign currencies, and such value may exceed the amount(s) reflected in the Statements of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the Statements of Assets and Liabilities. A Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Fund.
Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.
For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a Fund and the counterparty.
44 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (continued)
Cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately in the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Funds, if any, is noted in the Schedules of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Funds. Any additional required collateral is delivered to/pledged by the Funds on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. A Fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Funds from the counterparty are not fully collateralized, each Fund bears the risk of loss from counterparty non-performance. Likewise, to the extent the Funds have delivered collateral to a counterparty and stand ready to perform under the terms of their agreement with such counterparty, each Fund bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.
For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statements of Assets and Liabilities.
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).
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 the average daily net assets of each Fund as follows:
BlackRock ETF | Investment Advisory Fee | |||
Short Maturity Bond |
0.25 | % | ||
Short Maturity Municipal Bond |
0.25 | |||
Ultra Short-Term Bond |
0.08 |
Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses, if any, is a fund’s total annual operating expenses. Total expenses as shown in the Statement of Operations does not include acquired fund fees and expenses.
Effective December 17, 2020, BFA has contractually agreed to waive a portion of its investment advisory fees for the BlackRock Short Maturity Bond ETF through February 28, 2025 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other registered investment companies advised by BFA or its affiliates.
This amount is included in investment advisory fees waived in the Statements of Operations. For the year ended October 31, 2021, the amounts waived in investment advisory fees pursuant to this arrangement were as follows:
BlackRock ETF | Amounts waived | |||
Short Maturity Bond |
$ | 165,839 |
Effective April 27, 2021, BFA has entered into a sub-advisory agreement with BlackRock International Limited (the “Sub-Adviser”), an affiliate of BFA, under which BFA pays the Sub-Adviser for services it provides to the BlackRock Ultra Short-Term Bond ETF.
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. 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.
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 |
45 |
Notes to Financial Statements (continued)
Pursuant to the current securities lending agreement, each Fund 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 that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, 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 year ended October 31, 2021, the Funds paid BTC the following amounts for securities lending agent services:
BlackRock ETF | Fees Paid to BTC |
|||
Short Maturity Bond |
$ | 29,033 | ||
Ultra Short-Term Bond |
2,923 |
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
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 year ended October 31, 2021, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
BlackRock ETF | Purchases | Sales | Net Realized Gain (Loss) |
|||||||||
Short Maturity Municipal Bond |
$ | — | $ | 700,007 | $ | — | ||||||
Ultra Short-Term Bond |
— | 6,775,672 | — |
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.
7. |
PURCHASES AND SALES |
For the year ended October 31, 2021, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:
U.S. Government Securities | Other Securities | |||||||||||||||
BlackRock ETF | Purchases | Sales |
Purchases |
Sales | ||||||||||||
Short Maturity Bond |
$ | — | $ | — | $ | 2,640,319,479 | $ | 2,125,525,465 | ||||||||
Short Maturity Municipal Bond |
— | — | 168,442,560 | 128,920,576 | ||||||||||||
Ultra Short-Term Bond |
9,988,046 | 25,000,000 | 1,793,450,194 | 903,776,300 |
For the year ended October 31, 2021, in-kind transactions were as follows:
BlackRock ETF | In-kind Purchases |
In-kind Sales |
||||||
Short Maturity Bond |
$ | — | $ | 25,891,499 |
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.
Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2021, 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.
46 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (continued)
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of October 31, 2021, permanent differences attributable to realized gains (losses) from in-kind redemptions were reclassified to the following accounts:
BlackRock ETF | Paid-in Capital | Accumulated Earnings (Loss) |
||||||
Short Maturity Bond |
$ | 124,644 | $ | (124,644 | ) |
The tax character of distributions paid was as follows:
BlackRock ETF | Year
Ended 10/31/21 |
Year
Ended 10/31/20 |
||||||
Short Maturity Bond |
||||||||
Ordinary income |
$ | 39,578,305 | $ | 120,510,021 | ||||
|
|
|
|
|||||
Short Maturity Municipal Bond |
||||||||
Tax-exempt income(a) |
$ | 1,005,763 | $ | 2,591,109 | ||||
|
|
|
|
|||||
Ultra Short-Term Bond |
||||||||
Ordinary income |
$ | 24,852,336 | $ | 47,122,114 | ||||
|
|
|
|
(a) |
The Funds designate these amounts paid during the fiscal year ended October 31, 2021, as exempt-interest dividends. |
As of October 31, 2021, the tax components of accumulated net earnings (losses) were as follows:
BlackRock ETF | |
Undistributed Ordinary Income |
|
|
Undistributed Tax Exempt Income |
|
|
Non-expiring Capital Loss Carryforwards |
(a) |
|
Net Unrealized Gains (Losses) |
(b) |
Total | |||||||
Short Maturity Bond |
$ | 2,213,254 | $ | — | $ | (31,169,742 | ) | $ | 1,603,221 | $ | (27,353,267 | ) | ||||||||
Short Maturity Municipal Bond |
— | 47,551 | (119,615 | ) | 388,942 | 316,878 | ||||||||||||||
Ultra Short-Term Bond |
1,842,986 | — | (1,276,656 | ) | 1,461,356 | 2,027,686 |
(a) |
Amounts available to offset future realized capital gains. |
(b) |
The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain foreign currency contracts and amortization methods for premiums and discounts on fixed income securities. |
For the year ended October 31, 2021, the Funds listed below utilized the following amounts of their respective capital loss carryforwards:
BlackRock ETF | Utilized | |||
Short Maturity Bond |
$ | 4,504,306 |
As of October 31, 2021, 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:
BlackRock ETF | Tax Cost | Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation (Depreciation) |
||||||||||||
Short Maturity Bond |
$ | 4,910,269,718 | $ | 8,434,847 | $ | (6,834,875 | ) | $ | 1,599,972 | |||||||
Short Maturity Municipal Bond |
293,607,639 | 493,341 | (104,399 | ) | 388,942 | |||||||||||
Ultra Short-Term Bond |
5,856,992,328 | 4,769,858 | (3,308,502 | ) | 1,461,356 |
9. |
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.
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.
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 |
47 |
Notes to Financial Statements (continued)
Market Risk: Each Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Fund to reinvest in lower yielding securities. Each Fund may also be exposed to reinvestment risk, which is the risk that income from each Fund’s portfolio will decline if each Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Fund portfolio’s current earnings rate.
Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest or otherwise affect the value of such securities. Municipal securities can be significantly affected by political or economic changes, including changes made in the law after issuance of the securities, as well as uncertainties in the municipal market related to, taxation, legislative changes or the rights of municipal security holders, including in connection with an issuer insolvency. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the tax benefits supporting the project or assets or the inability to collect revenues for the project or from the assets. Municipal securities may be less liquid than taxable bonds, and there may be less publicly available information on the financial condition of municipal security issuers than for issuers of other securities.
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. The duration of this pandemic and its effects cannot be determined with certainty.
Valuation Risk: 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 the Manager 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.
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 high yield securities. High yield securities that are rated below investment-grade (commonly referred to as “junk bonds”) or are unrated may be deemed speculative, involve greater levels of risk than higher-rated securities of similar maturity and are more likely to default. High yield securities may be issued by less creditworthy issuers, and issuers of high yield securities may be unable to meet their interest or principal payment obligations. High yield securities are subject to extreme price fluctuations, may be less liquid than higher rated fixed-income securities, even under normal economic conditions, and frequently have redemption features.
The Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates.
LIBORTransition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates will be phased out by the end of 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.
10. |
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.
48 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (continued)
|
||||||||||||||||
Year Ended 10/31/21 |
Year Ended 10/31/20 |
|||||||||||||||
BlackRock ETF | Shares | Amount | Shares | Amount | ||||||||||||
|
||||||||||||||||
Short Maturity Bond |
||||||||||||||||
Shares sold |
18,900,000 | $ | 948,305,065 | 31,750,000 | $ | 1,591,851,892 | ||||||||||
Shares redeemed |
(9,650,000 | ) | (484,011,404 | ) | (68,350,000 | ) | (3,404,711,946 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
9,250,000 | $ | 464,293,661 | (36,600,000 | ) | $ | (1,812,860,054 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Short Maturity Municipal Bond |
||||||||||||||||
Shares sold |
1,250,000 | $ | 62,769,891 | 2,700,000 | $ | 135,259,060 | ||||||||||
Shares redeemed |
(1,200,000 | ) | (60,250,324 | ) | (1,100,000 | ) | (54,798,658 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
50,000 | $ | 2,519,567 | 1,600,000 | $ | 80,460,402 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ultra Short-Term Bond |
||||||||||||||||
Shares sold |
30,000,000 | $ | 1,515,394,891 | 65,500,000 | $ | 3,306,802,714 | ||||||||||
Shares redeemed |
(12,300,000 | ) | (621,092,319 | ) | (11,650,000 | ) | (582,993,088 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
17,700,000 | $ | 894,302,572 | 53,850,000 | $ | 2,723,809,626 | ||||||||||
|
|
|
|
|
|
|
|
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.
11. |
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 |
49 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of iShares U.S. ETF Trust and Shareholders of BlackRock Short Maturity Bond
ETF, BlackRock Short Maturity Municipal Bond ETF and BlackRock Ultra Short-Term Bond ETF
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of BlackRock Short Maturity Bond ETF, BlackRock Short Maturity Municipal Bond ETF and BlackRock Ultra Short-Term Bond ETF (three of the funds constituting iShares U.S. ETF Trust, hereafter collectively referred to as the “Funds”) as of October 31, 2021, the related statements of operations for the year ended October 31, 2021, the statements of changes in net assets for each of the two years in the period ended October 31, 2021, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2021, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended October 31, 2021 and each of the financial highlights for each of the five years in the period ended October 31, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 21, 2021
We have served as the auditor of one or more BlackRock investment companies since 2000.
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Important Tax Information (unaudited)
The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest income eligible to be treated as a Section 163(j) interest dividend for the fiscal year ended October 31, 2021:
iShares ETF | Interest Dividends | |||
Short Maturity Bond |
$ | 37,846,199 | ||
Ultra Short-Term Bond |
24,431,586 |
The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended October 31, 2021:
iShares ETF | Interest-Related Dividends |
|||
Short Maturity Bond |
$ | 28,611,897 | ||
Ultra Short-Term Bond |
20,284,395 |
The Funds hereby designate the following amounts, or maximum amounts allowable by law, of distributions from direct federal obligation interest for the fiscal year ended October 31, 2021:
iShares ETF | Federal Obligation Interest |
|||
Short Maturity Bond |
$ | 31,001 | ||
Ultra Short-Term Bond |
4,757 |
The law varies in each state as to whether and what percent of ordinary income dividends attribute to federal obligations is exempt from state income tax. Shareholders are advised to check with their tax advisers to determine if any portion of the dividends received is exempt from state income tax.
I M P O R T A N T T A X I N F O R M A T I O N |
51 |
Board Review and Approval of Investment Advisory Contract
BlackRock Short Maturity Bond 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”) 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 7, 2021 and May 14, 2021, 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 15-16, 2021, 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 (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable 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 overall fund expenses (net of waivers and reimbursements) for the Fund were higher than the median of overall fund expenses (net of waivers and reimbursements ) of the funds in its Peer Group, excluding iShares funds.
The Board noted that the Fund is an actively managed ETF that does not seek to track the performance of a specified index and that the management team for the Fund manages the Fund’s portfolio in accordance with its investment objective. The Board further noted that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its reference benchmark. 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 expectations relative to the Fund’s peer group (where applicable) and reference benchmark.
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 and proposed enhancements 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, which were provided at the May 7, 2021 meeting and throughout the year.
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 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
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Board Review and Approval of Investment Advisory Contract (continued)
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 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, were within a reasonable range in light of the factors and other information considered.
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 did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board would continue to assess the appropriateness of adding 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 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 manage Other Accounts with a similar investment strategy or investment mandate 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 also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board 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 (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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.
BlackRock Short Maturity Municipal Bond 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”) 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
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 |
53 |
Board Review and Approval of Investment Advisory Contract (continued)
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 7, 2021 and May 14, 2021, 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 15-16, 2021, 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 (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable 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 overall fund expenses (net of waivers and reimbursements) for the Fund were lower than the median of the overall fund expenses (net of waivers and reimbursements ) of the funds in its Peer Group, excluding iShares funds.
The Board noted that the Fund is an actively managed ETF that does not seek to track the performance of a specified index and that the management team for the Fund manages the Fund’s portfolio in accordance with its investment objective. The Board further noted that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its reference benchmark. 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 expectations relative to the Fund’s peer group (where applicable) and reference benchmark.
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 and proposed enhancements 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, which were provided at the May 7, 2021 meeting and throughout the year.
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 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 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, were within a reasonable range in light of the factors and other information considered.
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Board Review and Approval of Investment Advisory Contract (continued)
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 did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board would continue to assess the appropriateness of adding 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 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 manage Other Accounts with a similar investment strategy or investment mandate 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 also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board 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 (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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.
BlackRock Ultra Short-Term Bond 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 Contract between the Trust and BFA (the “Advisory Contract”), and the Sub-Advisory Agreement between BFA and BlackRock International Limited (BIL), (together the Advisory Agreements”) 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 Agreements. At meetings on May 7, 2021 and May 14, 2021, 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 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
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 |
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Board Review and Approval of Investment Advisory Contract (continued)
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreements 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 Agreements 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 and BlackRock International Limited (BIL); (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 Agreements 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 (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable 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 fund expenses (net of waivers and reimbursements) for the Fund were lower than the median of the overall fund expenses (net of waivers and reimbursements ) of the funds in its Peer Group, excluding iShares funds. The Board further noted that BFA pays BlackRock International Limited (BIL) for sub-advisory services, and there are no additional fees imposed on the Fund in respect of the services provided under the Sub-Advisory Agreement(s).
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, 2020, to that of 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 Agreements for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about recent and proposed enhancements 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 and BlackRock International Limited (BIL) under the Advisory Agreements for the coming year as compared to 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. 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, including those of the Sub-Advisor(s), 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 investment performance, investment and risk management processes and strategies for BFA and BlackRock International Limited (BIL), which were provided at the May 7, 2021 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 Agreements supported the Board’s approval of the continuance of the Advisory Agreements 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 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 profits realized by BFA and its affiliates under the Advisory Agreements and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information considered.
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Board Review and Approval of Investment Advisory Contract (continued)
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 did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board further noted that it would continue to assess the appropriateness of adding 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 Agreements for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 manage Other Accounts with a similar investment strategy or investment mandate 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 also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board 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 (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 Agreements 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 Agreements for the coming year.
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Supplemental Information (unaudited)
Regulation Regarding Derivatives
On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Funds will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.
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.
October 31, 2021
Total Cumulative
Distributions for the Fiscal Year |
% Breakdown of the Total
Cumulative Distributions for the Fiscal Year |
|||||||||||||||||||||||||||||||
BlackRock 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 |
||||||||||||||||||||||||
Short Maturity Bond |
$ | 0.429884 | $ | — | $ | — | $ | 0.429884 | 100 | % | — | % | — | % | 100 | % | ||||||||||||||||
Short Maturity Municipal Bond |
0.177534 | — | — | 0.177534 | 100 | — | — | 100 | ||||||||||||||||||||||||
Ultra Short-Term Bond |
0.237095 | — | — | 0.237095 | 100 | — | — | 100 |
Premium/Discount Information
Information on the Fund’s net asset value, market price, premiums and discounts, and bid-ask spreads can be found at iShares.com.
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Trustee and Officer Information
The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. The President, Chief Compliance Officer, Treasurer and Secretary shall each hold office until their successors are chosen and qualify, and all other officers shall hold office until he or she resigns or is removed. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).
The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of open-end equity, multi-asset, index and money market funds and ETFs (the “BlackRock Multi-Asset Complex”), one complex of closed-end funds and open-end non-index fixed-income funds (including ETFs) (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares Trust, and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 375 funds as of October 31, 2021. With the exception of Robert S. Kapito, Salim Ramji and Charles Park, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji and Mr. Park is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).
Interested Trustees | ||||||
Name (Age) | Position(s) |
Principal Occupation(s) During the Past 5 Years |
Other Directorships Held by Trustee | |||
Robert
S. Kapito(a) (64) |
Trustee (since 2011). | President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002). | Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares Trust (since 2009). | |||
Salim Ramji(b) (51) |
Trustee (since 2019). | Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014). | Director of iShares, Inc. (since 2019); Trustee of iShares Trust (since 2019). |
(a) |
Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. |
(b) |
Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. |
Independent Trustees | ||||||
Name (Age) | Position(s) |
Principal Occupation(s) During the Past 5 Years |
Other Directorships Held by Trustee | |||
Cecilia
H. Herbert (72) |
Trustee (since 2011); Independent Board Chair (since 2016). | Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Audit and Quality Committees of Stanford Health Care (since 2016); Trustee of WNET, New York’s public media company (since 2011) and Member of the Audit Committee (since 2018) and Investment Committee (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015-2018); Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Director of the Senior Center of Jackson Hole (since 2020). | Director of iShares, Inc. (since 2005); Trustee of iShares Trust (since 2005); Independent Board Chair of iShares, Inc. and iShares Trust (since 2016); Trustee of Thrivent Church Loan and Income Fund (since 2019). | |||
Jane D. Carlin (65) |
Trustee (since 2015); Risk Committee Chair (since 2016). | Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012). | Director of iShares, Inc. (since 2015); Trustee of iShares Trust (since 2015); Member of the Audit Committee (since 2016), Chair of the Audit Committee (since 2020) and Director of The Hanover Insurance Group, Inc. (since (2016). | |||
Richard
L. Fagnani (66) |
Trustee (since 2017); Audit Committee Chair (since 2019). | Partner, KPMG LLP (2002-2016). | Director of iShares, Inc. (since 2017); Trustee of iShares Trust (since 2017). |
T R U S T E E A N D O F F I C E R I N F O R M A T I O N |
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Trustee and Officer Information (continued)
Independent Trustees (continued) | ||||||
Name (Age) | Position(s) |
Principal Occupation(s) During the Past 5 Years |
Other Directorships Held by Trustee | |||
John E. Kerrigan (66) |
Trustee (since 2011); Nominating and Governance and Equity Plus Committee Chairs (since 2019). | Chief Investment Officer, Santa Clara University (since 2002). | Director of iShares, Inc. (since 2005); Trustee of iShares Trust (since 2005). | |||
Drew E. Lawton (62) |
Trustee (since 2017); 15(c) Committee Chair (since 2017). | Senior Managing Director of New York Life Insurance Company (2010-2015). | Director of iShares, Inc. (since 2017); Trustee of iShares Trust (since 2017). | |||
John E. Martinez (60) |
Trustee (since 2011); Securities Lending Committee Chair (since 2019). | Director of Real Estate Equity Exchange, Inc. (since 2005); Director of Cloudera Foundation (2017-2020); and Director of Reading Partners (2012-2016). | Director of iShares, Inc. (since 2003); Trustee of iShares Trust (since 2003). | |||
Madhav V. Rajan (57) |
Trustee (since 2011); Fixed Income Plus Committee Chair (since 2019). | Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Advisory Board Member (since 2016) and Director (since 2020) of C.M. Capital Corporation; Chair of the Board for the Center for Research in Security Prices, LLC (since 2020); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016). | Director of iShares, Inc. (since 2011); Trustee of iShares Trust (since 2011). |
Officers | ||||
Name (Age) | Position(s) |
Principal Occupation(s) During the Past 5 Years | ||
Armando Senra (50) |
President (since 2019). | Managing Director, BlackRock, Inc. (since 2007); Head of U.S., Canada and Latam iShares, BlackRock, Inc. (since 2019); Head of Latin America Region, BlackRock, Inc. (2006-2019); Managing Director, Bank of America Merrill Lynch (1994-2006). | ||
Trent Walker (47) |
Treasurer and Chief Financial Officer (since 2020). | Managing Director, BlackRock, Inc. (since September 2019); Chief Financial Officer of iShares Delaware Trust Sponsor LLC, BlackRock Funds, BlackRock Funds II, BlackRock Funds IV, BlackRock Funds V and BlackRock Funds VI (since 2021); Executive Vice President of PIMCO (2016-2019); Senior Vice President of PIMCO (2008-2015); Treasurer (2013-2019) and Assistant Treasurer (2007-2017) of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds. | ||
Charles Park (54) |
Chief Compliance Officer (since 2011). | Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006). | ||
Deepa
Damre Smith (46) |
Secretary (since 2019). | Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2009-2013). | ||
Scott Radell (52) |
Executive Vice President (since 2012). | Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009). | ||
Alan Mason (60) |
Executive Vice President (since 2016). | Managing Director, BlackRock, Inc. (since 2009). | ||
Marybeth Leithead (58) |
Executive Vice President (since 2019). | Managing Director, BlackRock, Inc. (since 2017); Chief Operating Officer of Americas iShares (since 2017); Portfolio Manager, Municipal Institutional & Wealth Management (2009-2016). |
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Electronic Delivery
Shareholders can sign up for email 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 Company’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 Abbreviations - Fixed Income
AGM | Assured Guaranty Municipal Corp. | |
AGM-CR | AGM Insured Custodial Receipt | |
AMBAC | Ambac Assurance Corp. | |
BAM | Build America Mutual Assurance Co. | |
CLO | Collateralized Loan Obligation | |
COP | Certificates of Participation | |
CR | Custodian Receipt | |
FHA | Federal Housing Administration | |
GO | General Obligation | |
GOL | General Obligation Limited | |
GTD | Guaranteed | |
LIBOR | London Interbank Offered Rate | |
NPFGC | National Public Finance Guarantee Corp. |
Currency Abbreviations
EUR | Euro | |
GBP | British Pound | |
USD | United States Dollar |
Portfolio Abbreviations - Fixed Income (continued)
Q-SBLF | Qualified School Bond Loan Fund | |
RB | Revenue Bond | |
SAP | Subject to Appropriations | |
SAW | State Aid Withholding | |
SOFR | Secured Overnight Financing Rate | |
ST | Special Tax |
Counterparty Abbreviations
BBP | Barclays Bank PLC Wholesale | |
BNP | BNP Paribas SA | |
GS | Goldman Sachs & Co. | |
SSB | State Street Bank and Trust Co. |
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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”).
©2021 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-AR-1008-1021
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