LOGO

  AUGUST 31, 2023

 

 

   2023 Annual Report

 

iShares Trust

· iShares Currency Hedged MSCI United Kingdom ETF | HEWU | NYSE Arca

· iShares MSCI United Kingdom ETF | EWU | NYSE Arca

· iShares MSCI United Kingdom Small-Cap ETF | EWUS | Cboe BZX


The Markets in Review

Dear Shareholder,

Despite an uncertain economic landscape during the 12-month reporting period ended August 31, 2023, the resilience of the U.S. economy in the face of ever tighter financial conditions provided an encouraging backdrop for investors. While inflation was near multi-decade highs at the beginning of the period, it declined precipitously as commodity prices dropped. Labor shortages also moderated, although wages continued to grow and unemployment rates reached the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy.

Equity returns were solid, as the durability of consumer sentiment eased investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. Most major classes of equities rose, as large-capitalization U.S. stocks and developed market equities advanced strongly. However, small-capitalization U.S. stocks and emerging market equities posted more modest gains.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market also faced inflationary headwinds, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation has been more persistent than expected, raised interest rates seven times during the 12-month period. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at its June 2023 meeting, the first time it paused its tightening in the current cycle, before again raising rates in July 2023.

Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for two pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.

While we favor an overweight position to developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on emerging market stocks in the near term as growth trends for emerging markets appear brighter. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, U.S. mortgage-backed securities, and hard-currency emerging market bonds.

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.

 

LOGO

Rob Kapito

President, BlackRock, Inc.

 

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of August 31, 2023
     
     6-Month   12-Month
   

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

  14.50%    15.94% 
   

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

  0.99      4.65   
   

International equities

(MSCI Europe, Australasia, Far East Index)

  4.75      17.92   
   

Emerging market equities
(MSCI Emerging Markets Index)

  3.62      1.25   
   

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

  2.47      4.25   
   

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

  0.11      (4.71)  
   

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

  0.95      (1.19)  
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

  1.04      1.70   
   

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

  4.55      7.19   
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 EI SN O T  P A R TO F  Y O U R  F U N D  R E P O R T


Table of Contents

 

      Page

The Markets in Review

   2

Annual Report:

  

Market Overview

   4

Fund Summary

   5

About Fund Performance

   11

Disclosure of Expenses

   11

Schedules of Investments

   12

Financial Statements

  

Statements of Assets and Liabilities

   23

Statements of Operations

   24

Statements of Changes in Net Assets

   25

Financial Highlights

   27

Notes to Financial Statements

   30

Report of Independent Registered Public Accounting Firm

   40

Important Tax Information

   41

Board Review and Approval of Investment Advisory Contract

   42

Supplemental Information

   46

Trustee and Officer Information

   48

General Information

   51

Glossary of Terms Used in this Report

   52

 

 

 


Market Overview

 

iShares Trust

Global Market Overview

Global equity markets advanced during the 12 months ended August 31, 2023 (“reporting period”), supported by continued economic growth and moderating inflation. The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 13.95% in U.S. dollar terms for the reporting period. Despite concerns about the impact of higher interest rates and rising prices, the global economy continued to grow, albeit at a slower pace than during the initial post-coronavirus pandemic recovery. Inflation began to subside in most regions of the world, and lower energy prices reduced pressure on consumers, leading consumer and business sentiment to improve. While the Russian invasion of Ukraine continued to disrupt trade in Europe and elsewhere, market adaptation lessened the economic impact of the ongoing war. The prices of several key commodities, including oil, natural gas, and wheat, either stabilized or declined during the reporting period, easing pressure on the world’s economies.

The U.S. Federal Reserve (“Fed”) tightened monetary policy rapidly, raising short-term interest rates seven times over the course of the reporting period. The pace of tightening decelerated as the Fed twice lowered the increment of increase before pausing entirely in June 2023, the first time it declined to take action since the tightening cycle began. However, the Fed then raised interest rates again at its July 2023 meeting and stated that it would continue to monitor economic data. The Fed also continued to decrease 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 pandemic.

Despite the tightening financial conditions, the U.S. economy demonstrated continued strength, and U.S. equities advanced. The economy returned to growth in the third quarter of 2022 and showed robust, if slightly slower, growth thereafter. Consumers powered the economy, increasing their spending in both nominal and inflation-adjusted terms. A strong labor market bolstered spending, as unemployment remained low, and the number of employed persons reached an all-time high. Tightness in the labor market drove higher wages, although wage growth slowed as the reporting period continued.

European stocks outpaced their counterparts in most other regions of the globe, advancing strongly for the reporting period despite modest economic growth. European stocks benefited from a solid recovery following the early phases of the war in Ukraine. While the conflict disrupted critical natural gas supplies, new sources were secured and prices declined, while a warm winter helped moderate consumption. The European Central Bank (“ECB”) responded to the highest inflation since the introduction of the euro by raising interest rates eight times and beginning to reduce the size of its debt holdings.

Stocks in the Asia-Pacific region gained, albeit at a slower pace than other regions of the world. Japan returned to growth in the fourth quarter of 2022 and first half of 2023, as strong business investment and exports helped boost the economy and support Japanese equities. However, Chinese stocks were negatively impacted by slowing economic growth. While investors were initially optimistic following China’s lifting of several pandemic-related lockdowns in December 2022, subsequent performance disappointed, and tensions with the U.S. increased. Emerging market stocks advanced modestly, as the resilient global economic environment reassured investors. The declining value of the U.S. dollar relative to many other currencies and the slowing pace of the Fed’s interest rate increases also supported emerging market stocks.

 

 

4  

2 0 2 3I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Fund Summary as of August 31, 2023     iShares® Currency Hedged MSCI United Kingdom ETF

 

Investment Objective

The iShares Currency Hedged MSCI United Kingdom ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization United Kingdom equities while mitigating exposure to fluctuations between the value of the British pound and the U.S. dollar, as represented by the MSCI United Kingdom 100% Hedged to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI United Kingdom ETF.

On June 6, 2023, the Board approved a proposal to close the Fund to new and subsequent investments and thereafter to liquidate the Fund. After the close of business on October 30, 2023, the Fund will no longer accept creation orders. Trading in the Fund will be halted prior to market open on October 31, 2023. Proceeds of the liquidation will be sent to shareholders on or about November 2, 2023.

Performance

 

    Average Annual Total Returns           Cumulative Total Returns  
     1 Year      5 Years      Since
Inception
           1 Year      5 Years      Since
Inception
 

Fund NAV

    6.89      4.60      5.89       6.89      25.20      59.72

Fund Market

    6.87        4.59        5.90         6.87        25.14        59.77  

Index

    7.06        5.25        6.42               7.06        29.15        66.20  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSETVALUE)

 

LOGO

The inception date of the Fund was June 29, 2015. The first day of secondary market trading was July 1, 2015.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

      Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      
         

Beginning

Account Value

(03/01/23)

 

 

 

      

Ending

Account Value

(08/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

           

Beginning

Account Value

(03/01/23)

 

 

 

      

Ending

Account Value

(08/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

          $  1,000.00          $   963.70          $  0.00               $  1,000.00          $  1,025.20          $  0.00          0.00

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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.

 

 

 

F U N D  S U M M A R Y

    5  


Fund Summary as of August 31,  2023(continued)    iShares® Currency Hedged MSCI United Kingdom ETF

 

Portfolio Management Commentary

Despite a slowing economy, stocks from the U.K. advanced significantly in U.S. dollar terms during the reporting period. Early in the reporting period, a tax plan proposed by the government raised investor concerns about additional borrowing requirements and the impact of the plan on financial markets. However, the plan was withdrawn, and new leadership stabilized the country’s fiscal position. Inflation remained elevated, although it declined notably during the reporting period, as the Bank of England raised interest rates eight times in an attempt to control rising prices.

The financials sector contributed the most to the Index’s return, driven primarily by the banking industry. Rising interest rates drove increased bank revenues, and cost cuts in the form of automation and layoffs also improved profitability, supporting larger dividend payouts and a stock buyback program. A rebound in an international interbank lending rate led to higher net interest margins (a measure of the profitability of interest-bearing assets compared to interest paid to depositors) for large British banks.

The industrials sector contributed meaningfully to the Index’s performance, as the aerospace and defense industry drove solid gains. The rebound in international travel following the end of coronavirus pandemic-related restrictions increased demand for aircraft engines, bolstering profits in the industry. Furthermore, geopolitical tensions in the wake of Russia’s invasion of Ukraine led to a significant increase in orders for defense equipment. The energy sector also contributed, as the oil, gas, and consumable fuels industry was buoyed by strong cash flows that enabled increased dividend payments to shareholders.

In terms of currency performance during the reporting period, the British pound appreciated by approximately 9% against the U.S. dollar. As the Fed slowed and then paused its interest rate increases, the Bank of England continued to raise interest rates, supporting the value of the British pound relative to the U.S. dollar.

The British pound’s positive performance meant hedging activity detracted from the Index’s return. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the positive impact of the British pound’s performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the return of British equities measured in British pounds.

Portfolio Information

 

PORTFOLIO COMPOSITION

 

   
Investment Type   Percent of  
Net Assets  

Investment Companies

  99.9%

Short-term Investments

  45.8  
Forward foreign currency exchange contracts, net cumulative appreciation   1.6  

Other assets less liabilities

  (47.3) 

SECTOR ALLOCATION (of the UNDERLYING FUND)

 

   
Sector  

Percent of

Total Investment(a)

Consumer Staples

  19.5%

Financials

  18.6  

Energy

  13.9  

Health Care

  13.2  

Industrials

  11.5  

Materials

  8.6  

Consumer Discretionary

  6.0  

Utilities

  4.2  

Communication Services

  2.7  

Information Technology

  1.0  

Real Estate

  0.7  

 

  (a)

Excludes money market funds.

 

 

 

6  

2 0 2 3I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Fund Summary as of August 31, 2023      iShares® MSCI United Kingdom ETF

 

Investment Objective

The iShares MSCI United Kingdom ETF (the “Fund”) seeks to track the investment results of an index composed of U.K. equities, as represented by the MSCI United Kingdom Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    14.46      2.77      2.62       14.46      14.66      29.55

Fund Market

    14.53        2.82        2.57         14.53        14.92        28.84  

Index

    14.82        3.39        3.19               14.82        18.11        36.85  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example 

 

    Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      
     

Beginning

Account Value

(03/01/23)

 

 

 

      

Ending

Account Value

(08/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

           

Beginning

Account Value

(03/01/23)

 

 

 

      

Ending

Account Value

(08/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $ 1,000.00        $ 1,011.00        $ 2.53             $ 1,000.00        $ 1,022.70        $ 2.55          0.50

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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.

 

 

 

F U N D  S U M M A R Y

    7  


Fund Summary as of August 31, 2023   (continued)    iShares® MSCI United Kingdom ETF

 

Portfolio Management Commentary

Despite a slowing economy, stocks from the U.K. advanced significantly during the reporting period. Early in the reporting period, a tax plan proposed by the government raised investor concerns about additional borrowing requirements and the impact of the plan on financial markets. However, the plan was withdrawn, and new leadership stabilized the country’s fiscal position. Inflation remained elevated, although it declined notably during the reporting period, as the Bank of England raised interest rates eight times in an attempt to control rising prices. Higher interest rates supported the British pound, which appreciated relative to the U.S. dollar, making British stocks more valuable in U.S. dollar terms.

The financials sector contributed the most to the Index’s return, driven primarily by the banking industry. Rising interest rates drove increased bank revenues, and cost cuts in the form of automation and layoffs also improved profitability, supporting larger dividend payouts and a stock buyback program. A rebound in an international interbank lending rate led to higher net interest margins (a measure of the profitability of interest-bearing assets compared to interest paid to depositors) for large British banks.

The industrials sector contributed meaningfully to the Index’s performance, as the aerospace and defense industry drove solid gains. The rebound in international travel following the end of coronavirus pandemic-related restrictions increased demand for aircraft engines, bolstering profits in the industry. Furthermore, geopolitical tensions in the wake of Russia’s invasion of Ukraine led to a significant increase in orders for defense equipment. The energy sector also contributed, as the oil, gas, and consumable fuels industry was buoyed by strong cash flows that enabled increased dividend payments to shareholders.

Portfolio Information 

 

SECTOR ALLOCATION

 

 

   

Sector

   

Percent of

Total Investments

 

(a) 

Consumer Staples

    19.5

Financials

    18.6  

Energy

    14.0  

Health Care

    13.2  

Industrials

    11.5  

Materials

    8.6  

Consumer Discretionary

    6.0  

Utilities

    4.2  

Communication Services

    2.7  

Information Technology

    1.0  

Real Estate

    0.7  

 

  (a)

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

 

   

Security

   

Percent of

Total Investments

 

(a) 

AstraZeneca PLC

    9.3

Shell PLC

    9.2  

HSBC Holdings PLC

    6.5  

Unilever PLC

    5.7  

BP PLC

    4.8  

Diageo PLC

    4.1  

GSK PLC

    3.2  

British American Tobacco PLC

    3.1  

Rio Tinto PLC

    3.1  

RELX PLC

    2.8  

 

 

8  

2 0 2 3I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Fund Summary as of August 31, 2023      iShares® MSCI United Kingdom Small-Cap ETF

 

Investment Objective

The iShares MSCI United Kingdom Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.K. equities, as represented by the MSCI United Kingdom Small Cap Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    9.55      (2.55 )%       2.03       9.55      (12.14 )%       22.28

Fund Market

    9.71        (2.50      1.97         9.71        (11.90      21.54  

Index

    9.87        (1.99      2.65               9.87        (9.55      29.84  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

    Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      
     

Beginning

Account Value

(03/01/23)

 

 

 

      

Ending

Account Value

(08/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

           

Beginning

Account Value

(03/01/23)

 

 

 

      

Ending

Account Value

(08/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $ 1,000.00        $ 1,002.10        $ 2.98             $ 1,000.00        $ 1,022.20        $ 3.01          0.59

 

  (a)

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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.

 

 

 

F U N D  S U M M A R Y

    9  


Fund Summary as of August 31,  2023(continued)    iShares® MSCI United Kingdom Small-Cap ETF

 

Portfolio Management Commentary

Despite a slowing economy and higher interest rates, small capitalization stocks from the U.K. advanced significantly during the reporting period. Many larger companies were reclassified as small companies due to falling stock prices in 2022, which lowered valuations for small capitalization stocks overall. Relatively low valuations, as well as solid fundamental results both from companies with global exposure and from domestically focused niche companies, ultimately propelled small capitalization stocks. Higher interest rates supported the British pound, which appreciated relative to the U.S. dollar, making British stocks more valuable in U.S. dollar terms.

The consumer discretionary sector was the largest contributor to the Index’s return despite declining retail sales. U.K. consumers sought refuge from rising prices by shifting purchases to less expensive products. Consequently, a prominent discount store’s strong sales and improving earnings guidance drove the company’s stock higher. Similarly, the leisure products industry advanced, driven mostly by solid earnings at a company that sells miniature figurines for a medieval fantasy wargame.

The industrials sector also advanced amid a modest recovery in industrial production. Engineering services stocks in the machinery industry gained, as strong demand for mining equipment, sustainability projects, and automation drove earnings growth. Among trading companies and distributors, a manufacturer of custom kitchen cabinets advanced despite a flat housing market. The financials sector benefited from rising capital markets and solid growth at a bank with operations in Georgia, whose economy grew rapidly amid rising foreign investment, tourism, and the country’s ascendance as a key shipping center during the war in Ukraine.

On the downside, broad-based weakness in the real estate sector detracted from the Index’s return. Rising interest rates, office vacancy due to the rise of remote work, and financial distress at a subsidized housing provider weighed on the sector.

Portfolio Information

 

SECTOR ALLOCATION

 

 

   

Sector

   

Percent of

Total Investments

 

(a) 

Industrials

    21.2

Consumer Discretionary

    17.6  

Financials

    16.6  

Real Estate

    12.1  

Health Care

    6.2  

Information Technology

    5.9  

Communication Services

    5.8  

Consumer Staples

    5.4  

Materials

    5.0  

Energy

    2.5  

Utilities

    1.7  

 

  (a)

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

 

   

Security

   
Percent of
Total Investments
 
(a) 

B&M European Value Retail SA

    1.9

Weir Group PLC (The)

    1.6  

Rightmove PLC

    1.6  

Marks & Spencer Group PLC

    1.5  

Dechra Pharmaceuticals PLC

    1.5  

DS Smith PLC

    1.5  

Diploma PLC

    1.4  

Howden Joinery Group PLC

    1.4  

Intermediate Capital Group PLC

    1.3  

IMI PLC

    1.3  

 

 

10  

2 0 2 3I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


About Fund Performance

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. 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.

Disclosure of Expenses

Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.

The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

 

 

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

  11


Schedule of Investments

August 31, 2023

  

iShares® Currency Hedged MSCI United Kingdom ETF

(Percentages shown are based on Net Assets)

 

Security  

Shares

    Value  

 

 

Investment Companies

   

Exchange-Traded Funds — 99.9%

   

iShares MSCI United Kingdom ETF(a)(b)

    270,201     $ 8,646,432  
   

 

 

 

Total Investment Companies
(Cost: $9,056,856)

      8,646,432  
   

 

 

 

Short-Term Securities

   

Money Market Funds — 45.8%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.52%(a)(c)(d)

    3,958,815       3,960,002  
   

 

 

 

Total Short-Term Securities — 45.8%
(Cost: $3,960,000)

 

    3,960,002  
   

 

 

 

Total Investments in Securities — 145.7%
(Cost: $13,016,856)

 

    12,606,434  

Liabilities in Excess of Other Assets — (45.7)%

 

    (3,951,756
   

 

 

 

Net Assets — 100.0%

    $  8,654,678  
   

 

 

 
(a) 

Affiliate of the Fund.

(b) 

All or a portion of this security is on loan.

(c) 

Annualized 7-day yield as of period end.

(d) 

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 August 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
08/31/22
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
08/31/23
    Shares
Held at
08/31/23
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $     $ 3,959,324 (a)    $     $ 676     $ 2     $ 3,960,002       3,958,815     $ 20,969 (b)    $  

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

    700,000             (700,000 )(a)                              404        

iShares MSCI United Kingdom ETF

    15,793,013       3,600,763       (12,154,058     (240,889     1,647,603       8,646,432       270,201       378,854        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (240,213   $ 1,647,605     $ 12,606,434       $ 400,227     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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.

 

Derivative Financial Instruments Outstanding as of Period End Forward

Foreign Currency Exchange Contracts

 

             
 Currency Purchased           

Currency Sold

     Counterparty    Settlement Date             Unrealized
Appreciation
(Depreciation)
   

USD

     8,812,396               GBP      6,848,000      Bank of America N.A.    09/05/23       $ 137,355    

USD

     41,100         GBP      32,000      JPMorgan Chase Bank N.A.    09/05/23         562    

USD

     83,643         GBP      66,000      JPMorgan Chase Bank N.A.    10/03/23         23    

USD

     8,719,168         GBP      6,880,000      State Street Bank & Trust Company    10/03/23         2,444    
                       

 

 

   
                          140,384    
                       

 

 

   

GBP

     6,880,000         USD      8,717,992      State Street Bank & Trust Company    09/05/23         (2,412  

 

 

12  

2 0 2 3 I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments(continued)

August 31, 2023

  

iShares® Currency Hedged MSCI United Kingdom ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

           
 Currency Purchased     

Currency Sold

     Counterparty    Settlement Date          Unrealized
Appreciation
(Depreciation)
   

GBP

        94,000                   USD       119,119      Deutsche Bank Securities Inc.    10/03/23             $ (25  
                       

 

 

   
                          (2,437  
                       

 

 

   
                        $ 137,947    
                       

 

 

   

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
     Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

 

 

Assets — Derivative Financial Instruments

                    

Forward foreign currency exchange contracts

                    

Unrealized appreciation on forward foreign currency exchange contracts

   $      $      $      $ 140,384      $      $      $ 140,384  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities — Derivative Financial Instruments

                    

Forward foreign currency exchange contracts

                    

Unrealized depreciation on forward foreign currency exchange contracts

   $      $      $      $ 2,437      $      $      $ 2,437  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

For the period ended August 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

 

 

Net Realized Gain (Loss) from

                    

Forward foreign currency exchange contracts

   $      $      $      $ (32,146    $      $      $ (32,146
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Forward foreign currency exchange contracts

   $      $      $      $ (868,900    $      $      $ (868,900
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Forward foreign currency exchange contracts:

 

Average amounts purchased — in USD

  $ 10,626,717   

Average amounts sold — in USD

  $ 20,564,223   

 

 

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

  $ 140,384      $ 2,437  
 

 

 

    

 

 

 

Total derivative assets and liabilities in the Statement of Assets and Liabilities

    140,384        2,437  

Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)

            
 

 

 

    

 

 

 

Total derivative assets and liabilities subject to an MNA

    140,384        2,437  
 

 

 

    

 

 

 

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:

 

 

 
           Derivative
Assets
Subject to an
MNA by
   

Derivatives
Available

           Non-Cash
Collateral
           Cash
Collateral
   

Net Amount
of Derivative

 
Counterparty        Counterparty          for Offset (a)         Received          Received          Assets (b) 

 

 

Bank of America N.A.

         $ 137,355            $            $            $              $137,355  

JPMorgan Chase Bank N.A.

       585                                     585  

 

 

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

  13


Schedule of Investments(continued)

August 31, 2023

  

iShares® Currency Hedged MSCI United Kingdom ETF

 

Derivative Financial Instruments - Offsetting as of Period End (continued)

 

 

 
   

Derivative

Assets

Subject to

an MNA by

   

Derivatives

Available

   

Non-Cash

Collateral

   

Cash

Collateral

   

Net Amount

of Derivative

 
Counterparty     Counterparty          for Offset (a)      Received       Received          Assets (b) 

 

 

State Street Bank & Trust Company

            $ 2,444            $ (2,412          $            $            $ 32  
    

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 
     $ 140,384        $ (2,412      $        $        $ 137,972  
    

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 
                        

 

 
   

Derivative

Liabilities

Subject to

an MNA by

   

Derivatives

Available

           Non-Cash
Collateral
           Cash
Collateral
   

Net Amount

of Derivative

 
Counterparty  

 

Counterparty

 

       for Offset (a)         Pledged          Pledged          Liabilities (c) 

 

 

Deutsche Bank Securities Inc.

     $ 25        $        $        $        $ 25  

State Street Bank & Trust Company

       2,412          (2,412                           
    

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 
     $ 2,437        $ (2,412      $        $        $ 25  
    

 

 

      

 

 

      

 

 

      

 

 

   

 

 

    

 

 

 

 

  (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 represents the net amount payable due to the counterparty in the event of default.

 

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      

 

   

Assets

             

Investments

             

Long-Term Investments

             

Investment Companies

   $ 8,646,432      $      $      $ 8,646,432    

Short-Term Securities

             

Money Market Funds

     3,960,002                      3,960,002    
  

 

 

    

 

 

    

 

 

    

 

 

   
   $ 12,606,434      $      $      $ 12,606,434    
  

 

 

    

 

 

    

 

 

    

 

 

   

Derivative Financial Instruments(a)

             

Assets

             

Foreign Currency Exchange Contracts

   $      $ 140,384      $      $ 140,384    

Liabilities

             

Foreign Currency Exchange Contracts

            (2,437             (2,437  
  

 

 

    

 

 

    

 

 

    

 

 

   
   $      $  137,947      $     —        137,947    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

  (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.

 

 

14  

2 0 2 3 I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments

August 31, 2023

  

iShares® MSCI United Kingdom ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Aerospace & Defense — 3.1%

   

BAE Systems PLC

    3,618,596     $ 46,056,634  

Melrose Industries PLC

    1,606,769       10,433,737  

Rolls-Royce Holdings PLC(a)

    10,006,610       28,071,739  
   

 

 

 
      84,562,110  
Banks — 10.9%            

Barclays PLC

    18,494,251       34,448,454  

HSBC Holdings PLC

    23,501,726       173,377,103  

Lloyds Banking Group PLC

    76,567,010       40,906,881  

NatWest Group PLC, NVS

    6,910,139       20,095,244  

Standard Chartered PLC

    2,819,960       25,373,167  
   

 

 

 
      294,200,849  
Beverages — 4.3%            

Coca-Cola HBC AG, Class DI

    262,393       7,558,729  

Diageo PLC

    2,672,030       109,427,541  
   

 

 

 
      116,986,270  
Broadline Retail — 0.5%            

Next PLC

    144,683       12,786,891  
   

 

 

 
Capital Markets — 3.7%            

3i Group PLC

    1,154,984       29,084,164  

abrdn PLC

    2,353,311       4,909,178  

Hargreaves Lansdown PLC

    419,549       4,037,401  

London Stock Exchange Group PLC

    475,903       49,234,127  

Schroders PLC

    947,459       4,928,963  

St. James’s Place PLC

    647,529       7,240,566  
   

 

 

 
      99,434,399  
Chemicals — 0.6%            

Croda International PLC

    166,105       11,600,419  

Johnson Matthey PLC

    219,567       4,526,638  
   

 

 

 
      16,127,057  
Commercial Services & Supplies — 0.8%            

Rentokil Initial PLC

    2,986,677       22,738,966  
   

 

 

 
Consumer Staples Distribution & Retail — 1.6%  

J Sainsbury PLC

    1,969,606       6,735,565  

Ocado Group PLC(a)

    688,716       7,586,299  

Tesco PLC

    8,522,575        28,672,325  
   

 

 

 
      42,994,189  
Diversified Consumer Services — 0.3%            

Pearson PLC

    761,184       8,067,566  
   

 

 

 
Diversified REITs — 0.2%            

Land Securities Group PLC

    839,332       6,395,619  
   

 

 

 
Diversified Telecommunication Services — 0.4%        

BT Group PLC

    7,677,327       11,231,248  
   

 

 

 
Electric Utilities — 1.0%            

SSE PLC

    1,296,322       26,638,312  
   

 

 

 
Electronic Equipment, Instruments & Components — 0.4%  

Halma PLC

    451,139       12,229,661  
   

 

 

 
Financial Services — 0.5%            

M&G PLC

    2,672,948       6,456,076  

Wise PLC, Class A(a)

    723,565       5,856,874  
   

 

 

 
      12,312,950  
Food Products — 0.4%            

Associated British Foods PLC

    416,485       10,491,189  
   

 

 

 
Security   Shares     Value  

Health Care Equipment & Supplies — 0.5%

 

Smith & Nephew PLC

    1,039,174     $ 14,023,671  
   

 

 

 

Health Care Providers & Services — 0.0%

 

NMC Health PLC, NVS(b)

    122,262       2  
   

 

 

 

Hotels, Restaurants & Leisure — 3.3%

   

Compass Group PLC

    2,061,046       51,972,799  

Entain PLC

    755,718       11,053,664  

InterContinental Hotels Group PLC

    200,128       15,052,692  

Whitbread PLC

    235,276       10,232,974  
   

 

 

 
      88,312,129  
Household Durables — 0.9%            

Barratt Developments PLC

    1,156,991       6,632,419  

Berkeley Group Holdings PLC

    128,224       6,587,655  

Persimmon PLC

    380,561       5,130,446  

Taylor Wimpey PLC

    4,202,456       6,073,379  
   

 

 

 
       24,423,899  
Household Products — 2.3%            

Reckitt Benckiser Group PLC

    853,046       61,560,618  
   

 

 

 

Industrial Conglomerates — 0.6%

   

DCC PLC

    117,222       6,414,043  

Smiths Group PLC

    416,480       8,637,727  
   

 

 

 
      15,051,770  
Industrial REITs — 0.5%            

Segro PLC

    1,383,228       12,894,818  
   

 

 

 

Insurance — 3.3%

   

Admiral Group PLC

    253,151       7,975,269  

Aviva PLC

    3,255,530       15,446,709  

Legal & General Group PLC

    7,107,022       19,635,960  

Phoenix Group Holdings PLC

    892,294       5,877,896  

Prudential PLC

    3,273,297       39,865,667  
   

 

 

 
      88,801,501  
Interactive Media & Services — 0.3%            

Auto Trader Group PLC(c)

    1,092,871       8,380,636  
   

 

 

 

Machinery — 0.4%

   

Spirax-Sarco Engineering PLC

    87,594       11,224,836  
   

 

 

 

Media — 1.0%

   

Informa PLC

    1,663,971       15,374,251  

WPP PLC

    1,272,375       12,333,637  
   

 

 

 
      27,707,888  
Metals & Mining — 7.5%            

Anglo American PLC

    1,510,734       40,172,930  

Antofagasta PLC

    468,847       8,586,411  

Endeavour Mining PLC

    218,541       4,462,801  

Glencore PLC

    12,522,018       66,682,172  

Rio Tinto PLC

    1,338,553       82,434,278  
   

 

 

 
      202,338,592  
Multi-Utilities — 2.5%            

Centrica PLC

    6,615,571       12,697,692  

National Grid PLC

    4,377,601       54,642,943  
   

 

 

 
      67,340,635  
Oil, Gas & Consumable Fuels — 13.8%            

BP PLC

    20,629,546       127,475,819  

Shell PLC

    7,970,809       243,709,557  
   

 

 

 
      371,185,376  

 

 

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

  15


Schedule of Investments(continued)

August 31, 2023

  

iShares® MSCI United Kingdom ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Paper & Forest Products — 0.3%

   

Mondi PLC

    576,052     $ 9,568,696  
   

 

 

 

Personal Care Products — 6.7%

   

Haleon PLC

    6,587,390       26,972,340  

Unilever PLC

    2,990,116       152,702,859  
   

 

 

 
      179,675,199  
Pharmaceuticals — 12.5%            

AstraZeneca PLC

    1,842,650       247,509,549  

GSK PLC

    4,868,549       85,277,179  

Hikma Pharmaceuticals PLC

    194,524       5,373,359  
   

 

 

 
      338,160,087  
Professional Services — 4.5%            

Experian PLC

    1,093,822       38,200,167  

Intertek Group PLC

    191,597       10,033,859  

RELX PLC

    2,255,063       73,503,168  
   

 

 

 
      121,737,194  
Software — 0.5%            

Sage Group PLC (The)

    1,219,059       14,980,533  
   

 

 

 

Specialty Retail — 0.5%

   

JD Sports Fashion PLC

    3,057,845       5,612,666  

Kingfisher PLC

    2,308,882       6,842,354  
   

 

 

 
       12,455,020  
Textiles, Apparel & Luxury Goods — 0.5%  

Burberry Group PLC

    448,276       12,376,733  
   

 

 

 

Tobacco — 4.0%

   

British American Tobacco PLC

    2,525,868       83,667,708  

Imperial Brands PLC

    1,026,459       23,240,654  
   

 

 

 
      106,908,362  
Trading Companies & Distributors — 1.9%  

Ashtead Group PLC

    521,223       36,359,612  

Bunzl PLC

    400,662       14,347,325  
   

 

 

 
      50,706,937  
Security   Shares     Value  

 

 

Water Utilities — 0.7%

   

Severn Trent PLC

    298,855     $ 9,075,604  

United Utilities Group PLC

    806,786       9,661,045  
   

 

 

 
      18,736,649  
Wireless Telecommunication Services — 0.9%  

Vodafone Group PLC

    27,338,794       25,344,501  
   

 

 

 

Total Long-Term Investments — 98.6%
(Cost: $3,195,228,282)

 

    2,661,093,558  
   

 

 

 

Short-Term Securities

   

Money Market Funds — 0.1%

   

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(d)(e)

    1,260,000       1,260,000  
   

 

 

 

Total Short-Term Securities — 0.1%
(Cost: $1,260,000)

 

    1,260,000  
   

 

 

 

Total Investments — 98.7%
(Cost: $3,196,488,282)

 

    2,662,353,558  

Other Assets Less Liabilities — 1.3%

 

    35,399,958  
   

 

 

 

Net Assets — 100.0%

    $  2,697,753,516  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
08/31/22
     Purchases
at Cost
    Proceeds
from Sale
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
08/31/23
     Shares
Held at
08/31/23
     Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares

  $ 120,000      $ 1,140,000 (a)    $      $      $      $ 1,260,000        1,260,000      $ 99,928      $ 1  
         

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a)

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 

Long Contracts

          

FTSE 100 Index

    375        09/15/23      $ 35,374      $ (407,099
          

 

 

 

 

 

16  

2 0 2 3 I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments(continued)

August 31, 2023

  

iShares® MSCI United Kingdom ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
    Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

 

 

Liabilities — Derivative Financial Instruments

                   

Futures contracts

                   

Unrealized depreciation on futures contracts(a)

  $      $      $ 407,099      $      $      $      $ 407,099  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended August 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
    Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

 

 

Net Realized Gain (Loss) from

                  

Futures contracts

  $      $      $ (758,593   $      $      $      $ (758,593
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                  

Futures contracts

  $      $      $ (302,155   $      $      $      $ (302,155
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

 

Average notional value of contracts — long

  $ 25,905,480   

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

                                                                                                   

 

 
    Level 1      Level 2     Level 3      Total  

 

 

Assets

         

Investments

         

Long-Term Investments

         

Common Stocks

  $      $ 2,661,093,556     $ 2      $ 2,661,093,558  

Short-Term Securities

         

Money Market Funds

    1,260,000                     1,260,000  
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 1,260,000      $ 2,661,093,556     $ 2      $ 2,662,353,558  
 

 

 

    

 

 

   

 

 

    

 

 

 

Derivative Financial Instruments(a)

         

Liabilities

         

Equity Contracts

  $      $ (407,099   $     —      $ (407,099
 

 

 

    

 

 

   

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  17


Schedule of Investments

August 31, 2023

  

iShares® MSCI United Kingdom Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Aerospace & Defense — 1.2%

   

Babcock International Group PLC(a)

    30,011     $ 146,769  

Chemring Group PLC

    33,746       124,401  

QinetiQ Group PLC

    61,693       259,852  
   

 

 

 
      531,022  
Air Freight & Logistics — 0.7%            

International Distributions Services PLC(a)

    84,939       260,853  

Wincanton PLC

    13,840       41,903  
   

 

 

 
      302,756  
Automobile Components — 0.8%            

AB Dynamics PLC

    2,009       44,792  

Dowlais Group PLC(a)

    160,069       230,353  

TI Fluid Systems PLC(b)

    40,053       64,235  
   

 

 

 
      339,380  
Automobiles — 0.3%            

Aston Martin Lagonda Global Holdings PLC(a)(b)(c)

    30,499       137,359  
   

 

 

 

Banks — 1.9%

   

Bank of Georgia Group PLC

    4,106       181,272  

Close Brothers Group PLC

    17,818       184,937  

TBC Bank Group PLC

    4,898       176,526  

Virgin Money UK PLC

    137,566       282,819  
   

 

 

 
      825,554  
Beverages — 1.6%            

AG Barr PLC

    11,259       69,532  

Britvic PLC

    30,502       339,084  

C&C Group PLC

    45,965       79,480  

Fevertree Drinks PLC

    12,437       206,865  
   

 

 

 
      694,961  
Biotechnology — 0.6%            

Genus PLC

    7,820       230,056  

Oxford Biomedica PLC(a)(c)

    7,833       31,975  
   

 

 

 
       262,031  
Broadline Retail — 2.0%            

B&M European Value Retail SA

    112,726       823,811  

THG PLC, Class B(a)

    69,253       86,232  
   

 

 

 
      910,043  
Building Products — 0.7%            

Genuit Group PLC

    29,512       119,088  

Tyman PLC

    23,058       86,339  

Volution Group PLC

    23,501       113,666  
   

 

 

 
      319,093  
Capital Markets — 8.1%            

AJ Bell PLC

    36,632       134,669  

Alpha FX Group PLC(c)

    4,120       111,691  

Ashmore Group PLC

    54,991       134,877  

Bridgepoint Group PLC(b)

    28,794       63,559  

CMC Markets PLC(b)

    13,257       17,802  

Draper Esprit PLC(a)

    15,403       47,493  

IG Group Holdings PLC

    47,974       410,617  

Impax Asset Management Group PLC

    11,892       80,471  

IntegraFin Holdings PLC

    34,913       106,589  

Intermediate Capital Group PLC

    34,420       588,223  

Investec PLC

    76,739       453,272  

IP Group PLC

    123,408       91,768  

JTC PLC(b)

    17,951       158,500  

Jupiter Fund Management PLC

    51,638       64,989  

Liontrust Asset Management PLC

    7,362       61,280  
Security   Shares     Value  

Capital Markets (continued)

   

Man Group PLC/Jersey

    142,111     $ 380,846  

Ninety One PLC

    32,772       71,116  

Polar Capital Holdings PLC

    10,908       67,364  

Quilter PLC(b)

    166,302       179,939  

Rathbones Group PLC

    7,137       158,971  

TP ICAP Group PLC

    93,410       195,484  
   

 

 

 
       3,579,520  
Chemicals — 0.9%            

Elementis PLC(a)

    69,532       100,591  

Essentra PLC

    35,102       65,634  

Synthomer PLC(a)

    40,665       32,969  

Victrex PLC

    10,306       195,779  
   

 

 

 
      394,973  
Commercial Services & Supplies — 1.6%            

Finablr PLC(a)(b)(d)

    61,710       1  

Johnson Service Group PLC

    49,262       74,193  

Mitie Group PLC

    151,667       186,410  

Renewi PLC(a)

    8,917       54,261  

Serco Group PLC

    131,455       254,620  

Smart Metering Systems PLC

    15,832       137,784  
   

 

 

 
      707,269  
Communications Equipment — 0.3%            

Spirent Communications PLC

    71,218       141,553  
   

 

 

 

Construction & Engineering — 1.4%

   

Balfour Beatty PLC

    66,529       275,761  

Keller Group PLC

    8,624       84,012  

Kier Group PLC(a)

    49,594       53,339  

Morgan Sindall Group PLC

    5,062       126,275  

Renew Holdings PLC

    9,373       85,253  
   

 

 

 
      624,640  
Construction Materials — 1.2%            

Breedon Group PLC

    36,123       159,933  

Forterra PLC(b)

    23,647       50,087  

Ibstock PLC(b)

    46,890       88,447  

Marshalls PLC

    26,965       93,760  

RHI Magnesita NV(c)

    3,348       119,911  
   

 

 

 
      512,138  
Consumer Finance — 0.1%            

Provident Financial PLC

    29,695       38,972  
   

 

 

 

Consumer Staples Distribution & Retail — 1.5%

   

Marks & Spencer Group PLC(a)

    233,527       669,801  
   

 

 

 

Containers & Packaging — 1.4%

   

DS Smith PLC

    163,145       644,068  
   

 

 

 

Distributors — 1.0%

   

Inchcape PLC

    44,025       424,907  
   

 

 

 

Diversified Consumer Services — 0.3%

   

Auction Technology Group PLC(a)

    11,493       103,080  

Me Group International PLC

    22,399       45,060  
   

 

 

 
      148,140  
Diversified REITs — 2.0%            

Balanced Commercial Property Trust Ltd.

    83,648       73,328  

British Land Co. PLC (The)

    104,332       427,695  

Custodian Reit PLC

    48,915       49,572  

LXI REIT PLC

    192,909       228,248  

Picton Property Income Ltd.

    64,366       56,076  

 

 

18  

2 0 2 3 I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI United Kingdom Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Diversified REITs (continued)

   

UK Commercial Property REIT Ltd.

    91,519     $ 62,543  
   

 

 

 
      897,462  
Diversified Telecommunication Services — 0.6%  

Gamma Communications PLC

    10,912       148,073  

Helios Towers PLC(a)

    87,095       100,567  
   

 

 

 
      248,640  
Electrical Equipment — 0.8%            

Ceres Power Holdings PLC(a)(c)

    15,049       65,047  

DiscoverIE Group PLC

    11,412       105,438  

ITM Power PLC(a)(c)

    54,053       60,097  

Volex PLC

    15,000       61,756  

XP Power Ltd.

    2,079       56,537  
   

 

 

 
      348,875  
Electronic Equipment, Instruments & Components — 2.0%  

Oxford Instruments PLC

    6,495       182,247  

Renishaw PLC

    4,311       198,677  

Spectris PLC

    12,309       517,770  
   

 

 

 
      898,694  
Energy Equipment & Services — 0.6%            

Hunting PLC

    16,761       52,127  

John Wood Group PLC(a)

    81,941       165,424  

Petrofac Ltd.(a)(c)

    53,587       49,046  
   

 

 

 
      266,597  
Entertainment — 0.1%            

Team17 Group PLC(a)

    13,624       58,680  
   

 

 

 

Financial Services — 2.6%

   

Burford Capital Ltd.

    22,044       304,166  

Network International Holdings PLC(a)(b)

    56,789       279,128  

OSB Group PLC

    49,370       213,031  

Paragon Banking Group PLC

    25,014       166,836  

Plus500 Ltd.

    9,736       176,123  
   

 

 

 
       1,139,284  
Food Products — 2.2%            

Cranswick PLC

    6,365       271,492  

Greencore Group PLC(a)

    57,800       61,689  

Hilton Food Group PLC

    9,551       81,549  

Premier Foods PLC

    77,295       120,634  

Tate & Lyle PLC

    47,573       425,775  
   

 

 

 
      961,139  
Ground Transportation — 0.7%            

Firstgroup PLC

    81,805       149,963  

National Express Group PLC

    65,459       69,289  

Redde Northgate PLC

    27,148       110,396  
   

 

 

 
      329,648  
Health Care Equipment & Supplies — 1.5%            

Advanced Medical Solutions Group PLC

    25,374       81,966  

ConvaTec Group PLC(b)

    193,824       568,898  
   

 

 

 
      650,864  
Health Care Providers & Services — 0.7%            

CVS Group PLC

    8,460       226,870  

Spire Healthcare Group PLC(b)

    33,504       92,313  
   

 

 

 
      319,183  
Health Care REITs — 1.1%            

Assura PLC

    351,211       204,126  

Impact Healthcare Reit PLC, Class B

    38,774       44,993  

Primary Health Properties PLC

    158,294       188,588  
Security   Shares     Value  

Health Care REITs (continued)

   

Target Healthcare REIT PLC

    73,461     $ 67,748  
   

 

 

 
      505,455  
Health Care Technology — 0.6%            

Craneware PLC

    3,533       63,553  

EMIS Group PLC

    7,499       181,825  
   

 

 

 
      245,378  
Hotels, Restaurants & Leisure — 5.1%            

888 Holdings PLC(a)

    39,846       64,269  

Carnival PLC(a)

    16,456       232,526  

Deliveroo PLC, Class A(a)(b)

    112,839       161,670  

Domino’s Pizza Group PLC

    44,364       221,991  

Greggs PLC

    12,111       377,555  

J D Wetherspoon PLC(a)

    10,744       98,404  

Mitchells & Butlers PLC(a)

    31,556       88,144  

Patisserie Holdings PLC, NVS(d)

    6,053        

Playtech PLC(a)

    27,475       182,728  

Rank Group PLC(a)

    24,289       25,846  

SSP Group PLC(a)

    94,341       280,851  

Trainline PLC(a)(b)

    54,085       159,366  

TUI AG(a)

    54,090       320,799  

Young & Co’s Brewery PLC, Series A, Class A

    2,396       34,905  
   

 

 

 
      2,249,054  
Household Durables — 2.4%            

Bellway PLC

    14,364       388,673  

Crest Nicholson Holdings PLC

    27,047       61,845  

Redrow PLC

    33,300       200,169  

Victoria PLC(a)(c)

    6,726       48,311  

Vistry Group PLC

    38,900       384,890  
   

 

 

 
       1,083,888  
Independent Power and Renewable Electricity Producers — 0.7%  

Drax Group PLC

    46,123       322,526  
   

 

 

 

Industrial REITs — 1.9%

   

LondonMetric Property PLC

    129,003       295,384  

Tritax Big Box REIT PLC

    221,344       395,343  

Urban Logistics REIT PLC

    55,206       82,243  

Warehouse REIT PLC

    47,898       51,697  
   

 

 

 
      824,667  
Insurance — 3.9%            

Beazley PLC

    79,629       549,788  

Direct Line Insurance Group PLC

    155,321       318,292  

Hiscox Ltd.

    41,097       518,526  

Just Group PLC

    123,374       117,843  

Lancashire Holdings Ltd.

    28,901       209,602  
   

 

 

 
      1,714,051  
Interactive Media & Services — 2.0%            

Moneysupermarket.com Group PLC

    60,407       190,085  

Rightmove PLC

    96,571       683,550  

Trustpilot Group PLC(a)(b)

    29,223       30,467  
   

 

 

 
      904,102  
IT Services — 2.3%            

Computacenter PLC

    10,139       279,926  

FDM Group Holdings PLC

    11,028       80,469  

Kainos Group PLC

    9,604       147,603  

Keywords Studios PLC

    8,894       171,820  

NCC Group PLC

    37,559       47,437  

Softcat PLC

    15,362       292,140  
   

 

 

 
      1,019,395  

 

 

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

  19


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI United Kingdom Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Leisure Products — 1.2%

   

Games Workshop Group PLC

    3,898     $ 533,763  
   

 

 

 
Life Sciences Tools & Services — 0.6%            

Ergomed PLC(a)

    5,049       66,903  

Oxford Nanopore Technologies PLC(a)

    63,805       192,371  
   

 

 

 
      259,274  
Machinery — 5.0%            

Bodycote PLC

    22,676       190,740  

IMI PLC

    30,891       586,235  

Judges Scientific PLC

    704       84,010  

Morgan Advanced Materials PLC

    33,503       111,438  

Rotork PLC

    101,965       387,518  

Vesuvius PLC

    25,698       143,332  

Weir Group PLC (The)

    30,748       712,731  
   

 

 

 
      2,216,004  
Marine Transportation — 0.3%            

Clarkson PLC

    3,453       118,542  
   

 

 

 

Media — 2.6%

   

4imprint Group PLC

    3,326       214,566  

Ascential PLC(a)

    52,203       132,658  

Future PLC

    12,910       126,733  

ITV PLC

    430,051       384,574  

Next Fifteen Communications Group PLC

    10,018       78,302  

S4 Capital PLC(a)(c)

    45,120       56,596  

Tremor International Ltd.(a)

    11,693       22,767  

YouGov PLC

    12,479       137,533  
   

 

 

 
      1,153,729  
Metals & Mining — 1.5%            

Atalaya Mining PLC

    11,597       47,746  

Centamin PLC

    137,205       152,387  

Central Asia Metals PLC

    20,468       51,806  

Ferrexpo PLC(a)

    34,981       34,277  

Greatland Gold PLC(a)

    551,193       44,758  

Hill & Smith PLC

    9,490       214,961  

Hochschild Mining PLC

    39,069       45,256  

Pan African Resources PLC

    226,991       40,257  

SolGold PLC(a)(c)

    176,459       33,554  
   

 

 

 
      665,002  
Multi-Utilities — 0.4%            

Telecom Plus PLC

    8,472       170,644  
   

 

 

 

Office REITs — 1.2%

   

CLS Holdings PLC

    21,718       34,838  

Derwent London PLC

    11,305       265,797  

Great Portland Estates PLC

    24,054       128,042  

Workspace Group PLC

    17,046       108,202  
   

 

 

 
      536,879  
Oil, Gas & Consumable Fuels — 1.8%            

Diversified Energy Co. PLC

    115,139       133,533  

Energean PLC

    15,906       229,304  

EnQuest PLC(a)

    189,863       40,878  

Genel Energy PLC

    17,591       18,541  

Gulf Keystone Petroleum Ltd.

    26,346       31,239  

Harbour Energy PLC

    66,095       209,102  

Serica Energy PLC

    29,556       93,513  

Tullow Oil PLC(a)(c)

    137,226       60,869  
   

 

 

 
      816,979  
Passenger Airlines — 1.0%            

easyJet PLC(a)

    35,911       191,836  
Security   Shares     Value  

Passenger Airlines (continued)

   

JET2 PLC

    20,341     $ 271,949  
   

 

 

 
      463,785  
Personal Care Products — 0.1%            

PZ Cussons PLC

    27,581       55,371  
   

 

 

 

Pharmaceuticals — 2.3%

   

Dechra Pharmaceuticals PLC

    13,489       648,496  

Indivior PLC, NVS(a)

    15,514       357,687  
   

 

 

 
      1,006,183  
Professional Services — 2.0%            

Alpha Financial Markets Consulting PLC

    13,514       62,144  

Capita PLC(a)

    202,103       46,187  

Hays PLC

    188,217       254,938  

Learning Technologies Group PLC

    71,144       69,036  

Marlowe PLC(a)

    9,545       72,308  

Pagegroup PLC

    38,922       206,417  

RWS Holdings PLC

    34,167       104,311  

SThree PLC

    15,931       71,766  
   

 

 

 
      887,107  
Real Estate Management & Development — 1.8%            

Grainger PLC

    83,436       249,303  

IWG PLC(a)

    89,424       203,002  

Savills PLC

    16,246       187,385  

Sirius Real Estate Ltd.

    139,489       153,743  
   

 

 

 
      793,433  
Residential REITs — 1.5%            

Empiric Student Property PLC

    72,138       79,687  

Home Reit PLC(d)

    103,572       42,093  

PRS REIT PLC (The)

    64,244       58,515  

UNITE Group PLC (The)

    40,529       482,028  
   

 

 

 
      662,323  
Retail REITs — 1.2%            

Capital & Counties Properties PLC

    173,500       258,192  

Hammerson PLC

    473,245       144,001  

Supermarket Income Reit PLC

    147,604       144,112  
   

 

 

 
      546,305  
Semiconductors & Semiconductor Equipment — 0.1%  

Alphawave IP Group PLC(a)

    29,647       54,082  
   

 

 

 

Software — 1.1%

   

Bytes Technology Group PLC

    26,946       165,692  

Darktrace PLC(a)

    37,375       170,105  

FD Technologies PLC(a)(c)

    2,833       59,337  

GB Group PLC

    29,527       84,997  
   

 

 

 
      480,131  
Specialized REITs — 1.3%            

Big Yellow Group PLC

    20,737       281,925  

Safestore Holdings PLC

    25,821       282,778  
   

 

 

 
      564,703  
Specialty Retail — 3.5%            

AO World PLC(a)

    37,689       44,514  

ASOS PLC(a)(c)

    9,056       50,017  

boohoo Group PLC(a)(c)

    105,164       47,382  

Currys PLC

    114,113       72,260  

Dunelm Group PLC

    14,335       211,377  

Frasers Group PLC(a)

    13,546       138,320  

Halfords Group PLC

    26,045       60,346  

Lookers PLC

    36,173       59,113  

Moonpig Group PLC(a)

    28,832       61,909  

 

 

20  

2 0 2 3 I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI United Kingdom Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Specialty Retail (continued)

   

Pets at Home Group PLC

    57,060     $ 272,332  

Watches of Switzerland Group PLC(a)(b)

    28,375       208,987  

WH Smith PLC

    15,505       287,472  

Wickes Group PLC

    30,697       54,597  
   

 

 

 
      1,568,626  
Textiles, Apparel & Luxury Goods — 0.8%            

Coats Group PLC

    189,244       183,876  

Dr. Martens PLC

    77,058       153,085  
   

 

 

 
      336,961  
Trading Companies & Distributors — 5.6%            

Diploma PLC

    15,875       628,600  

Grafton Group PLC

    24,036       262,621  

Howden Joinery Group PLC

    64,947       607,419  

RS GROUP PLC

    56,071       538,808  

SIG PLC(a)

    85,028       36,239  

Travis Perkins PLC

    25,170       273,789  

Yellow Cake PLC(a)(b)

    24,013       141,787  
   

 

 

 
      2,489,263  
Water Utilities — 0.6%            

Penno Group PLC

    30,950       252,536  
   

 

 

 

Wireless Telecommunication Services — 0.4%

 

Airtel Africa PLC(b)

    111,279       160,704  
   

 

 

 

Total Long-Term Investments — 99.3%
(Cost: $62,687,542)

       43,988,091  
   

 

 

 
Security   Shares     Value  

 

 

Short-Term Securities

   

Money Market Funds — 1.4%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.52%(e)(f)(g)

    621,797     $ 621,984  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.31%(e)(f)

    20,000       20,000  
   

 

 

 

Total Short-Term Securities — 1.4%
(Cost: $641,519)

      641,984  
   

 

 

 

Total Investments — 100.7%
(Cost: $63,329,061)

 

    44,630,075  

Liabilities in Excess of Other Assets — (0.7)%

 

    (314,873
   

 

 

 

Net Assets — 100.0%

    $  44,315,202  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

All or a portion of this security is on loan.

(d) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
08/31/22
     Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
    Value at
08/31/23
     Shares
Held at
08/31/23
     Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 685,192      $     $ (63,431 )(a)    $ 353      $ (130   $ 621,984        621,797      $ 50,680 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    20,000        0 (a)                         20,000        20,000        1,028        
        

 

 

    

 

 

   

 

 

       

 

 

   

 

 

 
         $ 353      $ (130   $ 641,984         $ 51,708     $  
        

 

 

    

 

 

   

 

 

       

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 

Long Contracts

          

FTSE 250 Index

    7        09/15/23      $ 329      $ (559
          

 

 

 

 

 

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

  21


Schedule of Investments(continued)

August 31, 2023

  

iShares® MSCI United Kingdom Small-Cap ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
    Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

 

 

Liabilities — Derivative Financial Instruments

                   

Futures contracts

                   

Unrealized depreciation on futures contracts(a)

  $      $      $ 559      $      $      $      $ 559  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended August 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
    Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

 

 

Net Realized Gain (Loss) from

                  

Futures contracts

  $      $      $ (12,786   $      $      $      $ (12,786
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                  

Futures contracts

  $      $      $ 11,735     $      $      $      $ 11,735  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

 

Average notional value of contracts — long

  $ 268,867   

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

                                                                               

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 15,115,175        $ 28,830,822        $ 42,094        $ 43,988,091  

Short-Term Securities

                 

Money Market Funds

     641,984                            641,984  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 15,757,159        $ 28,830,822        $ 42,094        $ 44,630,075  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Liabilities

                 

Equity Contracts

   $        $ (559      $        $ (559
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

22  

2 0 2 3 I S H A R E S  A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Statements of Assets and Liabilities

August 31, 2023

 

   

iShares
Currency
Hedged

MSCI United
Kingdom

ETF

      

iShares

MSCI United
Kingdom ETF

      

iShares

MSCI United
Kingdom
Small-Cap
ETF

 

 

 

ASSETS

           

Investments, at value — unaffiliated(a)(b)

  $        $ 2,661,093,558        $ 43,988,091  

Investments, at value — affiliated(b)(c)

    12,606,434          1,260,000          641,984  

Cash

    4,404          7,007          8,477  

Foreign currency collateral pledged for futures contracts(d)

             1,679,915          13,935  

Foreign currency, at value(e)

             7,246,952          69,008  

Receivables:

           

Investments sold

             17,738,755          1,485,194  

Securities lending income — affiliated

    1,344                   1,827  

Dividends — unaffiliated

             27,091,190          168,746  

Dividends — affiliated

             5,406          41  

Tax reclaims

             158,827          24,804  

Unrealized appreciation on forward foreign currency exchange contracts

    140,384                    
 

 

 

      

 

 

      

 

 

 

Total assets

    12,752,566          2,716,281,610          46,402,107  
 

 

 

      

 

 

      

 

 

 

LIABILITIES

           

Collateral on securities loaned, at value

    3,960,000                   622,851  

Payables:

           

Investments purchased

    135,451          17,203,233          1,440,875  

Investment advisory fees

             1,158,179          22,604  

Variation margin on futures contracts

             166,682          575  

Unrealized depreciation on forward foreign currency exchange contracts

    2,437                    
 

 

 

      

 

 

      

 

 

 

Total liabilities

    4,097,888          18,528,094          2,086,905  
 

 

 

      

 

 

      

 

 

 

Commitments and contingent liabilities

           

NET ASSETS

  $ 8,654,678        $ 2,697,753,516        $ 44,315,202  
 

 

 

      

 

 

      

 

 

 

NET ASSETS CONSIST OF

           

Paid-in capital

  $ 14,271,209        $ 3,816,583,739        $ 78,540,196  

Accumulated loss

    (5,616,531        (1,118,830,223        (34,224,994
 

 

 

      

 

 

      

 

 

 

NET ASSETS

  $ 8,654,678        $ 2,697,753,516        $ 44,315,202  
 

 

 

      

 

 

      

 

 

 

NET ASSETVALUE

           

Shares outstanding

    350,000          84,400,000          1,350,000  
 

 

 

      

 

 

      

 

 

 

Net asset value

  $ 24.73        $ 31.96        $ 32.83  
 

 

 

      

 

 

      

 

 

 

Shares authorized

    Unlimited          Unlimited          Unlimited  
 

 

 

      

 

 

      

 

 

 

Par value

    None          None          None  
 

 

 

      

 

 

      

 

 

 

(a)  Investments, at cost — unaffiliated

  $        $ 3,195,228,282        $ 62,687,542  

(b)  Securities loaned, at value

  $ 3,840,000        $        $ 559,486  

(c)  Investments, at cost — affiliated

  $ 13,016,856        $ 1,260,000        $ 641,519  

(d)  Foreign currency collateral pledged, at cost

  $        $ 1,686,623        $ 14,516  

(e)  Foreign currency, at cost

  $        $ 7,248,537        $ 68,504  

See notes to financial statements.

 

 

F I N A N C I A L  S T A T E M E N T S

  23


Statements of Operations

Year Ended August 31, 2023

 

    iShares
Currency
Hedged
MSCI United
Kingdom
ETF
      

iShares

MSCI United
Kingdom

ETF

       iShares
MSCI United
Kingdom
Small-Cap
ETF
 

 

 

INVESTMENT INCOME

           

Dividends — unaffiliated

  $        $ 124,147,760        $ 1,588,907  

Dividends — affiliated

    379,258          99,928          1,028  

Securities lending income — affiliated — net

    20,969                   50,680  

Foreign taxes withheld

             (142,241        (43,389
 

 

 

      

 

 

      

 

 

 

Total investment income

    400,227          124,105,447          1,597,226  
 

 

 

      

 

 

      

 

 

 

EXPENSES

           

Investment advisory

    68,809          15,428,590          274,606  
 

 

 

      

 

 

      

 

 

 

Total expenses

    68,809          15,428,590          274,606  

Less:

           

Investment advisory fees waived

    (68,809