July
31,
2022
iShares
Trust
iShares
Core
Aggressive
Allocation
ETF
|
AOA
|
NYSE
Arca
iShares
Core
Conservative
Allocation
ETF
|
AOK
|
NYSE
Arca
iShares
Core
Growth
Allocation
ETF
|
AOR
|
NYSE
Arca
iShares
Core
Moderate
Allocation
ETF
|
AOM
|
NYSE
Arca
iShares
Morningstar
Multi-Asset
Income
ETF
|
IYLD
|
Cboe
BZX
2022
Annual
Report
Dear
Shareholder,
The
12-month
reporting
period
as
of
July
31,
2022
saw
the
emergence
of
significant
challenges
that
disrupted
the
economic
recovery
and
strong
financial
markets.
The
U.S.
economy
shrank
in
the
first
half
of
2022,
ending
the
run
of
robust
growth
that
followed
the
reopening
of
global
economies
and
the
development
of
COVID-19
vaccines.
Changes
in
consumer
spending
patterns
and
a
tight
labor
market
led
to
elevated
inflation,
which
reached
a
40-year
high.
Moreover,
while
the
foremost
effect
of
Russia’s
invasion
of
Ukraine
has
been
a
severe
humanitarian
crisis,
the
ongoing
war
continued
to
present
challenges
for
both
investors
and
policymakers.
Equity
prices
fell
as
interest
rates
rose,
particularly
weighing
on
relatively
high-valuation
growth
stocks
and
economically
sensitive
small-capitalization
stocks.
While
both
large-
and
small-capitalization
U.S.
stocks
fell,
declines
for
small-capitalization
U.S.
stocks
were
steeper.
Both
emerging
market
stocks
and
international
equities
from
developed
markets
fell
significantly,
pressured
by
rising
interest
rates
and
a
strengthening
U.S.
dollar.
The
10-year
U.S.
Treasury
yield
(which
is
inversely
related
to
bond
prices)
rose
notably
during
the
reporting
period
as
investors
reacted
to
higher
inflation
and
attempted
to
anticipate
its
impact
on
future
interest
rate
changes.
The
corporate
bond
market
also
faced
inflationary
headwinds,
and
increasing
uncertainty
led
to
higher
corporate
bond
spreads
(the
difference
in
yield
between
U.S.
Treasuries
and
similarly-dated
corporate
bonds).
The
U.S.
Federal
Reserve
(the
“Fed”),
acknowledging
that
inflation
is
growing
faster
than
expected,
raised
interest
rates
four
times
while
indicating
that
additional
rate
hikes
were
likely.
Furthermore,
the
Fed
wound
down
its
bond-buying
programs
and
began
to
reduce
its
balance
sheet.
Continued
high
inflation
and
the
Fed’s
statements
led
many
analysts
to
anticipate
that
interest
rates
have
room
to
rise
before
peaking,
although
investors’
inflation
expectations
began
to
decline
near
the
end
of
the
period.
The
horrific
war
in
Ukraine
has
significantly
clouded
the
outlook
for
the
global
economy,
leading
to
major
volatility
in
energy
and
metals
markets.
Sanctions
on
Russia,
Europe’s
top
energy
supplier,
and
general
wartime
disruption
have
magnified
supply
problems
for
key
commodities.
We
believe
elevated
energy
prices
will
continue
to
exacerbate
inflationary
pressure
while
also
constraining
economic
growth.
Combating
inflation
without
stifling
a
recovery,
while
buffering
against
ongoing
supply
and
price
shocks,
will
be
an
especially
challenging
environment
for
setting
effective
monetary
policy.
Despite
the
likelihood
of
more
rate
increases
on
the
horizon,
we
believe
the
Fed
will
ultimately
err
on
the
side
of
protecting
employment,
even
at
the
expense
of
higher
inflation.
In
the
meantime,
however,
we
believe
that
we
are
likely
to
see
a
period
of
slowing
growth
paired
with
relatively
high
inflation.
In
this
environment,
while
we
favor
an
overweight
to
equities
in
the
long-term,
the
market’s
concerns
over
excessive
rate
hikes
from
central
banks
moderate
our
outlook.
Furthermore,
the
energy
shock
and
a
deteriorating
economic
backdrop
in
China
and
Europe
are
likely
to
challenge
corporate
earnings,
so
we
are
underweight
equities
overall
in
the
near-term.
We
take
the
opposite
view
on
credit,
where
higher
spreads
provide
near-term
opportunities,
while
the
likelihood
of
higher
inflation
leads
us
to
take
an
underweight
stance
on
credit
in
the
long-term.
We
believe
that
investment-grade
corporates,
U.K.
gilts,
local-currency
emerging
market
debt,
and
inflation-protected
bonds
(particularly
in
Europe)
offer
strong
opportunities
for
a
six-
to
twelve-month
horizon.
Overall,
our
view
is
that
investors
need
to
think
globally,
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.
The
Markets
in
Review
Rob
Kapito
President,
BlackRock,
Inc.
Total
Returns
as
of
July
31,
2022
Past
performance
is
not
an
indication
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
(7.81%)
(4.64%)
U.S.
small
cap
equities
(Russell
2000
®
Index)
(6.42)
(14.29)
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
(11.27)
(14.32)
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
(16.24)
(20.09)
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
0.21
0.22
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
(6.38)
(10.00)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
(6.14)
(9.12)
Tax-exempt
municipal
bonds
(Bloomberg
Municipal
Bond
Index)
(3.95)
(6.93)
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
(6.58)
(8.03)
2
This
Page
is
not
Part
of
Your
Fund
Report
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Annual
Report:
Market
Overview
.......................................................................................................
4
Fund
Summary
........................................................................................................
5
About
Fund
Performance
..................................................................................................
15
Disclosure
of
Expenses
...................................................................................................
15
Schedules
of
Investments
.................................................................................................
16
Financial
Statements:
Statements
of
Assets
and
Liabilities
.........................................................................................
27
Statements
of
Operations
................................................................................................
29
Statements
of
Changes
in
Net
Assets
........................................................................................
31
Financial
Highlights
.....................................................................................................
34
Notes
to
Financial
Statements
...............................................................................................
39
Report
of
Independent
Registered
Public
Accounting
Firm
..............................................................................
47
Important
Tax
Information
(Unaudited)
.................................................................................................
48
Board
Review
and
Approval
of
Investment
Advisory
Contract
...........................................................................
49
Supplemental
Information
.................................................................................................
51
Trustee
and
Officer
Information
..............................................................................................
52
General
Information
.....................................................................................................
54
Market
Overview
4
2022
iShares
Annual
Report
to
Shareholders
iShares
Trust
Global
Market
Overview
Global
equity
markets
declined
during
the
12
months
ended
July
31,
2022
(“reporting
period”).
The
MSCI
ACWI,
a
broad
global
equity
index
that
includes
both
developed
and
emerging
markets,
returned
-10.48%
in
U.S.
dollar
terms
for
the
reporting
period.
For
the
first
five
months
of
the
reporting
period,
economic
recovery
supported
stocks
in
most
regions
of
the
world.
The
global
economy
continued
to
rebound
from
the
impact
of
restrictions
imposed
at
the
beginning
of
the
coronavirus
pandemic,
as
mitigation
and
adaptation
allowed
most
economic
activity
to
continue.
However,
substantial
challenges
emerged
at
the
beginning
of
2022,
which
negatively
affected
stock
prices.
Inflation
rose
significantly
in
many
countries,
reducing
consumers’
purchasing
power
and
leading
many
central
banks
to
tighten
monetary
policy.
Russia’s
invasion
of
Ukraine
presented
a
further
challenge
to
the
global
economy,
disrupting
important
commodities
markets.
The
U.S.
economy
grew
briskly
over
the
final
half
of
2021,
powered
primarily
by
consumer
spending.
Record-high
personal
savings
rates
allowed
consumers
to
spend
at
an
elevated
level,
releasing
pent-up
demand
for
goods
and
services.
Growth
subsequently
stalled
in
the
first
half
of
2022,
and
the
economy
contracted
amid
lower
inventories
and
faltering
business
investment.
Despite
the
economic
downturn,
unemployment
declined
substantially,
falling
to
3.5%
in
July
2022
identical
to
the
pre-pandemic
rate
in
February
2020.
Although
high
inflation
negatively
impacted
consumer
sentiment,
which
declined
significantly,
consumer
spending
continued
to
increase.
Rising
inflation
led
to
a
shift
in
policy
from
the
U.S.
Federal
Reserve
(“the
Fed”).
As
the
reporting
period
began,
the
Fed
was
using
accommodative
monetary
policy
to
stimulate
the
economy.
Short-term
interest
rates
were
kept
at
near-zero
levels,
and
the
Fed
used
bond-buying
programs
to
stabilize
debt
markets.
However,
rising
prices
led
the
Fed
to
tighten
monetary
policy
during
the
reporting
period
in
an
attempt
to
prevent
runaway
inflation.
The
Fed
slowed
and
then
ended
its
bond-buying
activities,
finally
reversing
course
as
it
began
to
reduce
its
balance
sheet
in
June
2022.
In
March
2022,
the
Fed
began
to
raise
short-term
interest
rates,
followed
by
three
more
increases
for
a
total
increase
of
225
basis
points,
the
most
rapid
rise
in
decades.
Interest
rates
rose
significantly
in
response,
leading
to
higher
borrowing
costs
for
businesses.
Stocks
declined
in
Europe
and
economic
growth
stalled,
with
the
Eurozone
economy
slowing
substantially
beginning
in
the
fourth
quarter
of
2021.
Significantly
higher
inflation
and
Russia’s
invasion
of
Ukraine
negatively
impacted
equities.
Russia
is
an
important
trading
partner
with
many
European
countries,
and
new
sanctions
imposed
limits
on
certain
types
of
trade
with
Russia.
Investors
became
concerned
that
the
sharp
rise
in
energy
prices
during
the
reporting
period
would
constrain
economic
growth,
as
Europe
relies
on
imported
energy
for
much
of
its
industrial
and
heating
needs.
The
European
Central
Bank
(“ECB”)
responded
to
elevated
inflation
by
raising
interest
rates
in
July
2022,
the
first
such
increase
in
over
a
decade.
Despite
relatively
low
inflation
by
global
standards,
Asia-Pacific
stocks
declined
significantly.
Chinese
stocks
faced
significant
headwinds
amid
regulatory
interventions
by
the
Chinese
government
and
strict
lockdowns
following
COVID-19
outbreaks.
Japanese
stocks
also
declined
amid
an
economic
contraction
in
the
first
quarter
of
2022
and
a
sharp
decline
in
the
Japanese
yen
relative
to
the
U.S.
dollar.
Emerging
market
stocks
declined
substantially,
as
higher
interest
rates
and
a
strengthening
U.S.
dollar
raised
the
cost
of
borrowing
in
many
emerging
economies.
iShares
®
Core
Aggressive
Allocation
ETF
5
Fund
Summary
Fund
Summary
as
of
July
31,
2022
Investment
Objective
The
iShares
Core
Aggressive
Allocation
ETF
(the
“Fund”)
seeks
to
track
the
investment
results
of
an
index
composed
of
a
portfolio
of
underlying
equity
and
fixed
income
funds
intended
to
represent
an
aggressive
target
risk
allocation
strategy,
as
represented
by
the
S&P
Target
Risk
Aggressive
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)
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
.................................
(9.24
)
%
6.59
%
8.59
%
(9.24
)
%
37.59
%
128.03
%
Fund
Market
...............................
(9.25
)
6.56
8.59
%
(9.25
)
37.39
127.90
Index
....................................
(9.15
)
6.73
8.73
(9.15
)
38.50
130.94
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(02/01/22)
Ending
Account
Value
(07/31/22)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(02/01/22)
Ending
Account
Value
(07/31/22)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00
$
911.10
$
0.71
$
1,000.00
$
1,024.05
$
0.75
0.15
%
(a)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(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.
The
fees
and
expenses
of
the
underlying
funds
in
which
the
Fund
invests
are
not
included
in
the
Fund’s
annualized
expense
ratio.
Fund
Summary
as
of
July
31,
2022
(continued)
iShares
®
Core
Aggressive
Allocation
ETF
6
2022
iShares
Annual
Report
to
Shareholders
Portfolio
Management
Commentary
The
Index’s
mix
of
stock
and
bond
funds
designed
to
represent
a
growth
target
risk
allocation
strategy
declined
for
the
reporting
period.
The
equity
allocation,
which
represented
approximately
80%
of
the
Index
on
average,
was
the
largest
detractor
from
the
Index’s
return.
Stocks
in
international
developed
markets
declined,
as
global
growth
cooled
in
an
environment
of
high
inflation,
rising
interest
rates,
and
volatility
in
commodities
markets.
In
Japan,
which
endured
two
separate
quarters
of
economic
contraction
during
the
reporting
period,
the
weakening
Japanese
yen
negatively
impacted
the
value
of
stocks
in
U.S.
dollar
terms.
The
industrials
sector
declined
the
most
amid
a
notable
slowdown
in
industrial
production.
German
stocks
also
detracted
from
the
Index’s
return,
as
weakness
in
the
automobiles
industry
weighed
on
the
consumer
discretionary
sector.
French
stocks
also
faced
headwinds
as
lockdowns
in
China
negatively
impacted
demand
for
luxury
products
in
the
consumer
discretionary
sector.
Large
capitalization
U.S.
stocks
declined,
particularly
in
the
communication
services
sector.
A
change
to
the
tracking
data
policies
of
a
popular
mobile
platform
impeded
the
ability
of
social
media
companies
to
target
specific
customer
demographics,
reducing
the
value
of
the
advertising
they
sell.
Consequently,
revenues
declined,
weighing
heavily
on
stocks
in
the
growth-oriented
interactive
media
and
services
industry.
Emerging
market
equities
also
declined
substantially,
particularly
Asian
stocks.
China
was
a
notable
detractor,
as
significant
lockdowns
to
prevent
the
spread
of
COVID-19
weighed
on
economic
activity.
Meanwhile,
product
delays
and
cooling
demand
for
some
consumer
electronics
drove
negative
performance
in
South
Korean
stocks.
Within
the
bond
allocation,
which
represented
approximately
20%
of
the
Index
on
average,
U.S.
bonds
detracted
the
most
from
the
Index’s
performance,
as
the
Fed
raised
short-term
interest
rates
four
times,
diminishing
the
value
of
previously
issued
bonds.
Consequently,
all
bond
categories
detracted
from
the
Index’s