MARCH
31,
2023
2023
Annual
Report
iShares
Trust
iShares
Biotechnology
ETF
|
IBB
|
NASDAQ
iShares
Expanded
Tech
Sector
ETF
|
IGM
|
NYSE
Arca
iShares
Expanded
Tech-Software
Sector
ETF
|
IGV
|
Cboe
BZX
iShares
North
American
Natural
Resources
ETF
|
IGE
|
Cboe
BZX
iShares
North
American
Tech-Multimedia
Networking
ETF
|
IGN
|
NYSE
Arca
iShares
Semiconductor
ETF
|
SOXX
|
NASDAQ
Dear
Shareholder,
Significant
economic
headwinds
emerged
during
the
12-month
reporting
period
ended
March
31,
2023,
as
investors
navigated
changing
economic
conditions
and
volatile
markets.
The
U.S.
economy
shrank
in
the
first
half
of
2022
before
returning
to
modest
growth
in
the
second
half
of
the
year,
marking
a
shift
to
a
more
challenging
post-reopening
economic
environment.
Changes
in
consumer
spending
patterns
and
a
tight
labor
market
led
to
elevated
inflation,
which
reached
a
40-year
high
before
beginning
to
moderate.
Equity
prices
fell
as
interest
rates
rose,
particularly
during
the
first
half
of
the
reporting
period.
Both
large-
and
small-capitalization
U.S.
stocks
declined,
although
equities
began
to
recover
in
the
second
half
of
the
period
as
inflation
eased
and
economic
growth
resumed.
Emerging
market
stocks
and
international
equities
from
developed
markets
declined
overall,
pressured
by
rising
interest
rates
and
volatile
commodities
prices.
The
10-year
U.S.
Treasury
yield
rose
during
the
reporting
period,
driving
its
price
down,
as
investors
reacted
to
fluctuating
inflation
data
and
attempted
to
anticipate
its
impact
on
future
interest
rate
changes.
The
corporate
bond
market
also
faced
inflationary
headwinds,
and
higher
interest
rates
led
to
rising
borrowing
costs
for
corporate
issuers.
The
U.S.
Federal
Reserve
(the
“Fed”),
acknowledging
that
inflation
has
been
more
persistent
than
expected,
raised
interest
rates
eight
times.
Furthermore,
the
Fed
wound
down
its
bond-buying
programs
and
accelerated
the
reduction
of
its
balance
sheet.
Restricted
labor
supply
kept
inflation
elevated
even
as
other
inflation
drivers,
such
as
goods
prices
and
energy
costs,
moderated.
While
economic
growth
slowed
in
the
last
year,
we
believe
that
taming
inflation
requires
a
more
substantial
decline
that
lowers
demand
to
a
level
more
in
line
with
the
economy’s
productive
capacity.
Although
the
Fed
has
decelerated
the
pace
of
interest
rate
hikes,
we
believe
that
it
still
seems
determined
to
get
inflation
back
to
target.
With
this
in
mind,
we
believe
the
possibility
of
a
U.S.
recession
in
the
near-term
is
high,
but
the
dimming
economic
outlook
has
not
yet
been
fully
reflected
in
current
market
prices.
We
believe
investors
should
expect
a
period
of
higher
volatility
as
markets
adjust
to
the
new
economic
reality
and
policymakers
attempt
to
adapt
to
rapidly
changing
conditions.
Turmoil
in
the
banking
sector
late
in
the
period
highlighted
the
potential
for
the
knock-on
effects
of
substantially
higher
interest
rates
to
disrupt
markets
with
little
warning.
While
we
favor
an
overweight
to
equities
in
the
long
term,
we
prefer
an
underweight
stance
on
equities
overall
in
the
near
term.
Expectations
for
corporate
earnings
remain
elevated,
which
seems
inconsistent
with
the
possibility
of
a
recession.
Nevertheless,
we
are
overweight
on
emerging
market
stocks
as
we
believe
a
weakening
U.S.
dollar
provides
a
supportive
backdrop.
We
also
see
long-term
opportunities
in
credit,
where
we
believe
that
valuations
are
appealing
and
higher
yields
provide
attractive
income,
although
we
are
neutral
on
credit
in
the
near
term,
as
we’re
concerned
about
tightening
credit
and
financial
conditions.
However,
we
believe
there
are
still
some
strong
opportunities
for
a
six-
to
twelve-month
horizon,
particularly
short-term
U.S.
Treasuries,
global
inflation-linked
bonds,
and
emerging
market
bonds
denominated
in
local
currency.
Overall,
our
view
is
that
investors
need
to
think
globally,
position
themselves
to
be
prepared
for
a
decarbonizing
economy,
and
be
nimble
as
market
conditions
change.
We
encourage
you
to
talk
with
your
financial
advisor
and
visit
iShares.com
for
further
insight
about
investing
in
today’s
markets.
Sincerely,
Rob
Kapito
President,
BlackRock,
Inc.
The
Markets
in
Review
Rob
Kapito
President,
BlackRock,
Inc.
Past
performance
is
not
an
indication
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
Total
Returns
as
of
March
31,
2023
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
15.62
%
(7.73
)%
U.S.
small
cap
equities
(Russell
2000
®
Index)
9.14
(11.61
)
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
27.27
(1.38
)
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
14.04
(10.70
)
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
1.93
2.52
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
4.38
(6.90
)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
4.89
(4.78
)
Tax-exempt
municipal
bonds
(Bloomberg
Municipal
Bond
Index)
7.00
0.26
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
7.88
(3.35
)
This
Page
is
not
Part
of
Your
Fund
Report
2
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Annual
Report:
Market
Overview
.......................................................................................................
4
Fund
Summary
........................................................................................................
5
About
Fund
Performance
..................................................................................................
17
Disclosure
of Expenses
...................................................................................................
17
Schedules
of
Investments
.................................................................................................
18
Financial
Statements:
Statements
of
Assets
and
Liabilities
.........................................................................................
39
Statements
of
Operations
................................................................................................
41
Statements
of
Changes
in
Net
Assets
........................................................................................
43
Financial
Highlights
.....................................................................................................
46
Notes
to
Financial
Statements
...............................................................................................
52
Report
of
Independent
Registered
Public
Accounting
Firm
..............................................................................
62
Important
Tax
Information
.................................................................................................
63
Statement
Regarding
Liquidity
Risk
Management
Program
.............................................................................
64
Supplemental
Information
.................................................................................................
65
Trustee
and
Officer
Information
..............................................................................................
67
General
Information
.....................................................................................................
69
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
70
Market
Overview
2023
iShares
Annual
Report
To
Shareholders
4
iShares
Trust
Domestic
Market
Overview
U.S.
stocks declined
for
the
12
months
ended March
31,
2023
(“reporting
period”),
when
the
Russell
3000
®
Index,
a
broad
measure
of
U.S.
equity
market
performance,
returned
-8.58%.
Elevated
inflation
and
rapid
tightening
of
monetary
policy
dampened
growth
and
weighed
on
equities.
Higher
interest
rates
drove
bond
yields
higher
and
increased
borrowing
costs
for
businesses
and
consumers.
Equities
began
to
recover
in
the
second
half
of
the
reporting
period,
as
the
broader
economy
remained
resilient
and
the
pace
of
inflation
declined.
In
March
2023,
two
banks
suddenly
failed,
representing
the
second
and
third
largest
bank
failures
in
U.S.
history
by
asset
value.
This
drove
concern
among
investors
about
the
resiliency
of
the
financial
system
in
the
face
of
rapidly
rising
interest
rates.
However,
government
agencies
acted
swiftly
to
organize
a
sale
of
the
failed
banks’
assets
and
inject
liquidity,
and
equity
prices
recovered.
Inflation
was
a
significant
driver
of
the
economic
outlook.
As
the
reporting
period
began,
the
consumer
price
index,
a
widely
followed
measure
of
inflation,
stood
at
multi-
decade
highs.
Strong
consumer
spending
and
a
tight
labor
market,
along
with
continued
supply
chain
disruptions
in
Asia,
combined
to
drive
prices
higher.
But
the
rate
of
inflation
began
to
decline
as
the
reporting
period
wore
on,
decelerating
for
nine
consecutive
months
beginning
in
July
2022.
Nonetheless,
inflation
remained
elevated
by
historic
standards,
and
higher
prices
negatively
impacted
both
consumers
and
businesses.
The
U.S.
economy
recovered
from
a
decline
in
the
first
half
of
2022
to
post
modest
growth
in
the
third
and
fourth
quarters
of
2022.
Consumers
continued
to
power
the
economy
with
growing
spending,
despite
higher
prices
for
many
consumer
goods
and
services.
The
strong
labor
market
supported
spending,
as
unemployment
remained
very
low,
at
one
point
dropping
to
the
lowest
recorded
level
since
1969.
Furthermore,
the
labor
force
participation
rate—which
measures
the
total
proportion
of
employed
persons
of
working
age—rose,
indicating
that
more
people
were
being
drawn
into
the
labor
force.
Amid
tightening
labor
supply,
wages
rose
significantly,
with
the
largest
gains
at
the
lower
end
of
the
wage
spectrum.
To
contain
inflation,
the
U.S.
Federal
Reserve
(“Fed”)
tightened
monetary
policy
rapidly,
raising
short-term
interest
rates
eight
times
over
the
course
of
the
reporting
period.
The
pace
of
tightening
accelerated
as
the
Fed
twice
stepped
up
the
increment
of
increase
before
reducing
it
again
as
inflation
began
to
subside.
The
Fed
also
started
to
reduce
the
size
of
its
balance
sheet
by
reducing
the
store
of
U.S.
Treasuries
it
had
accumulated
to
stabilize
markets
in
the
early
phases
of
the
coronavirus
pandemic.
While
the
Fed
indicated
that
more
tightening
could
be
needed
to
achieve
its
long-term
inflation
goal,
it
sounded
a
more
cautious
note
about
the
potential
for
further
interest
rate
increases
near
the
end
of
the
reporting
period.
Despite
economic
headwinds,
corporate
profits
remained
robust,
and
many
companies
were
able
to
sufficiently
raise
prices
to
preserve
profit
margins
even
in
the
face
of
rising
labor
and
input
costs.
Nonetheless,
profits
declined
overall
in
the
fourth
quarter
of
2022,
and
the
yield
curve
(a
graphical
representation
of
U.S.
Treasury
rates
at
different
maturities)
inverted,
a
sign
that
markets
were
concerned
about
the
impact
of
higher
borrowing
costs
on
the
economy.
Furthermore,
dwindling
personal
savings
and
rising
household
debt
raised
questions
about
the
sustainability
of
consumer
spending
as
an
engine
of
economic
growth.
Fund
Summary
as
of
March
31,
2023
5
Fund
Summary
iShares
®
Biotechnology
ETF
Investment
Objective
The
iShares
Biotechnology
ETF
(the
“Fund”)
seeks
to
track
the
investment
results
of
an
index
composed
of
U.S.-listed
equities
in
the
biotechnology
sector,
as
represented
by
the
ICE
Biotechnology
Index
(the
Index
).
The
Fund
invests
in
a
representative
sample
of
securities
included
in
the
Index
that
collectively
has
an
investment
profile
similar
to
the
Index.
Due
to
the
use
of
representative
sampling,
the
Fund
may
or
may
not
hold
all
of
the
securities
that
are
included
in
the
Index.
Performance
GROWTH
OF
$10,000
INVESTMENT
(AT
NET
ASSET
VALUE)
Index
performance
through
June
20,
2021
reflects
the
performance
of
the
NASDAQ
Biotechnology
Index.
Index
performance
beginning
on
June
21,
2021
reflects
the
performance
of
the
ICE
Biotechnology
Index.
Past
performance
is
not
an indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
See
“About
Fund
Performance” for
more
information.
Expense
Example
Average
Annual
Total
Returns
Cumulative
Total
Returns
1
Year
5
Years
10
Years
1
Year
5
Years
10
Years
Fund
NAV
.
.
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.
.
.
.
.
.
.
(0.46‌)%
4.15‌%
9.47‌%
(0.46‌)%
22.54‌%
147.13‌%
Fund
Market
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
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.
.
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.
.
.
(0.58‌)
4.13‌
9.47‌
(0.58‌)
22.44‌
147.07‌
Index
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
.
(0.09‌)
4.51‌
9.81‌
(0.09‌)
24.71‌
154.96‌
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(10/01/22)
Ending
Account
Value
(03/31/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(10/01/22)
Ending
Account
Value
(03/31/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00‌
$
1,105.30‌
$
2.36‌
$
1,000.00‌
$
1,022.69‌
$
2.27‌
0.45‌%
(a)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
182/365
(to
reflect
the
one-half
year
period
shown).
Other
fees,
such
as
brokerage
commissions
and
other
fees
to
financial
intermediaries,
may
be
paid
which
are
not
reflected
in
the
tables
and
examples
above.
See
“Disclosure
of
Expenses”
for
more
information.
Fund
Summary
as
of
March
31,
2023
(continued)
2023
iShares
Annual
Report
To
Shareholders
6
iShares
®
Biotechnology
ETF
Portfolio
Management
Commentary
Biotechnology
stocks
ended
flat
for
the
reporting
period.
Rising
interest
rates
increased
financing
costs
for
many
biotechnology
companies,
as
they
typically
carry
high
debt
levels
to
fund
research
into
new
drugs.
The
higher
interest
rates
and
mounting
inflation
pressures
also
increased
companies’
operating
costs,
weakening
their
ability
to
attract
capital
investments,
particularly
for
those
researching
drugs
with
longer
development
periods
before
commercialization.
Stocks
in
the
biotechnology
sector,
which
constituted
78%
of
the
Index
on
average
during
the
reporting
period,
contributed
the
most
to
the
Index’s
performance.
Strong
drug
sales
and
positive
clinical
trials
from
a
few
companies
raised
the
Index
overall.
Biotechnology
stocks
are
often
volatile,
as
positive
performance
from
long
and
costly
clinical
studies
can
potentially
yield
large
sales
opportunities,
while
poor
outcomes
can
result
in
significant
losses.
The
stock
price
of
one
biotechnology
company
climbed
sharply
after
posting
stronger
sales
for
HIV
and
cancer
drugs
and
positive
revenues
from
its
COVID-19
antiviral
drug.
The
stock
price
of
another
biotechnology
company
rose
due
to
strong
sales
of
its
cystic
fibrosis
drug,