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2023 Prospectus |
• | BlackRock U.S. Carbon Transition Readiness ETF | LCTU | NYSE ARCA |
• | BlackRock World ex U.S. Carbon Transition Readiness ETF | LCTD | NYSE ARCA |
|
S-1 |
|
S-14 |
|
1 |
|
4 |
|
27 |
|
31 |
|
31 |
|
36 |
|
44 |
|
46 |
|
48 |
Ticker: LCTU | Stock Exchange: NYSE Arca |
Annual Fund Operating Expenses (ongoing expenses that you pay each year as a percentage of the value of your investments) | ||||||||||||
Management
Fees1,2 |
Distribution
and Service (12b-1) Fees |
Other
Expenses3 |
Acquired
Fund Fees and Expenses1,3 |
Total
Annual Fund Operating Expenses |
Fee Waiver1,2 | Total
Annual Fund Operating Expenses After Fee Waiver1,2 | ||||||
0.29% | None | 0.00% | 0.00% | 0.29% | (0.15)% | 0.14% |
1 | As described in the “Management” section of the Fund's prospectus beginning on page 31, BFA has contractually agreed to waive a portion of its management fees in an amount equal to the aggregate Acquired Fund Fees and Expenses, if any, attributable to investments by the Fund in other funds advised by BFA or its affiliates through June 30, 2025. The agreement may be terminated upon 90 days' notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. |
2 | As described in the “Management” section of the Fund’s prospectus beginning on page 31, BFA has contractually agreed to waive 0.15% of its management fee payable, through June 30, 2025. |
3 | The amount rounded to 0.00%. |
1 Year | 3 Years | 5 Years | 10 Years | |||||
$14 | $78 | $148 | $353 |
1 | The Fund’s year-to-date return as of September 30, 2023 was 12.21%. |
One Year | Since Inception | ||
(Inception Date: 4/6/2021) | |||
Return Before Taxes | -20.00% | -3.13% | |
Return After Taxes on Distributions1 | -20.30% | -3.76% | |
Return After Taxes on Distributions and Sale of Fund Shares1 | -11.62% | -2.46% | |
Russell 1000 Index (Gross Total Return)2 (Index returns do not reflect deductions for fees, expenses or taxes) | -19.13% | -3.45% |
1 | After-tax returns in the table above are calculated using the historical highest individual U.S. federal marginal income tax rates and do not reflect the impact of state or local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to tax-exempt investors or investors who hold shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (“IRAs”). Fund returns after taxes on distributions and sales of Fund shares are calculated assuming that an investor has sufficient capital gains of the same character from other investments to offset any capital losses from the sale of Fund shares. As a result, Fund returns after taxes on distributions and sales of Fund shares may exceed Fund returns before taxes and/or returns after taxes on distributions. |
2 | The Russell 1000® Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1,000 of the largest securities based on a combination of their market capitalization and current index membership. The index represents approximately 93% of the U.S. market. |
Ticker: LCTD | Stock Exchange: NYSE Arca |
Annual Fund Operating Expenses (ongoing expenses that you pay each year as a percentage of the value of your investments) | ||||||||||||
Management
Fees1,2 |
Distribution
and Service (12b-1) Fees |
Other
Expenses3 |
Acquired
Fund Fees and Expenses1,3 |
Total
Annual Fund Operating Expenses |
Fee Waiver1,2 | Total
Annual Fund Operating Expenses After Fee Waiver1,2 | ||||||
0.35% | None | 0.00% | 0.00% | 0.35% | (0.15)% | 0.20% |
1 | As described in the “Management” section of the Fund's prospectus beginning on page 31, BFA has contractually agreed to waive a portion of its management fees in an amount equal to the aggregate Acquired Fund Fees and Expenses, if any, attributable to investments by the Fund in other funds advised by BFA or its affiliates through June 30, 2025. The agreement may be terminated upon 90 days' notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. |
2 | As described in the “Management” section of the Fund’s prospectus beginning on page 31, BFA has contractually agreed to waive 0.15% of its management fee payable, through June 30, 2025. |
3 | The amount rounded to 0.00%. |
1 Year | 3 Years | 5 Years | 10 Years | |||||
$20 | $97 | $181 | $428 |
1 | The Fund’s year-to-date return as of September 30, 2023 was 5.75%. |
One Year | Since Inception | ||
(Inception Date: 4/6/2021) | |||
Return Before Taxes | -16.17% | -6.80% | |
Return After Taxes on Distributions1 | -16.64% | -7.39% | |
Return After Taxes on Distributions and Sale of Fund Shares1 | -8.88% | -4.98% | |
MSCI World Ex US Net Index2 (Index returns do not reflect deductions for fees, expenses or taxes) | -14.29% | -5.18% |
1 | After-tax returns in the table above are calculated using the historical highest individual U.S. federal marginal income tax rates and do not reflect the impact of state or local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to tax-exempt investors or investors who hold shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts (“IRAs”). Fund returns after taxes on distributions and sales of Fund shares are calculated assuming that an investor has sufficient capital gains of the same character from other investments to offset any capital losses from the sale of Fund shares. As a result, Fund returns after taxes on distributions and sales of Fund shares may exceed Fund returns before taxes and/or returns after taxes on distributions. |
2 | The MSCI World ex USA Index captures large- and mid-cap representation across certain developed markets countries, excluding the United States. The index covers approximately 85% of the free float-adjusted market capitalization in each country. |
■ | Energy Production – Analyzes whether an issuer is in the business of extraction, refinery, generation and ownership of carbon emitting energy. |
■ | Clean Technology – Analyzes whether an issuer is in the business of renewable energy, energy efficiency, green building and low carbon transport. |
■ | Energy Management – Analyzes an issuer’s energy use, mix, efficiency and indirect emissions through electricity consumption. |
■ | Water Management – Analyzes an issuer’s water consumption, withdrawal, efficiency, physical stress and recycling practices. |
■ | Waste Management – Analyzes an issuer’s waste generation, recycling, and toxic emissions management. |
■ | Borrowing — The Fund may borrow for temporary or emergency purposes, including to meet payments due from redemptions or to facilitate the settlement of securities or other transactions. |
■ | Securities Lending — The Fund may lend securities representing up to one-third of the value of the Fund’s total assets (including the value of the collateral received). |
■ | Temporary Defensive Strategies — For temporary defensive purposes, for example, to respond to adverse market, economic, political or other conditions, the Fund may depart from its principal investment strategies and may restrict the markets in which it invests and may invest without limitation in cash, cash equivalents, money market securities, such as U.S. Treasury and agency obligations, other U.S. Government securities, short-term debt obligations of corporate issuers, certificates of deposit, bankers acceptances, commercial paper (short-term, unsecured, negotiable promissory notes of a domestic or foreign issuer) or other high quality fixed income securities. Temporary defensive positions may affect the Fund’s ability to achieve its investment objective. |
■ | Governmental Interventions. Governmental and quasi-governmental authorities and regulators throughout the world have responded to the outbreak and the resulting economic disruptions with a variety of fiscal and monetary policy changes, including direct capital infusions into companies and other issuers, new monetary policy tools, and lower interest rates. An unexpected or sudden reversal of these policies, or the ineffectiveness of such policies, is likely to increase market volatility, which could adversely affect the Fund’s investments. |
■ | Pre-Existing Conditions. Public health crises caused by the outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally, which could adversely affect the Fund and its investments and could result in increased premiums or discounts to the Fund’s NAV. |
■ | Government intervention in issuers’ operations or structure; |
■ | A lack of market liquidity and market efficiency; |
■ | Greater securities price volatility; |
■ | Exchange rate fluctuations and exchange controls; |
■ | Less availability of public information about issuers; |
■ | Limitations on foreign ownership of securities; |
■ | Imposition of withholding or other taxes; |
■ | Imposition of restrictions on the expatriation of the funds or other assets of the Fund; |
■ | Higher transaction and custody costs and delays in settlement procedures; |
■ | Difficulties in enforcing contractual obligations; |
■ | Lower levels of regulation of the securities markets; |
■ | Weaker accounting, disclosure and reporting requirements and the risk of being delisted from U.S. exchanges; and |
■ | Legal principles relating to corporate governance, directors’ fiduciary duties and liabilities and stockholders’ rights in markets in which the Fund invests may differ from or may not be as extensive or protective as those that apply in the United States. |
As
of 9/30/23 Average Annual Total Returns |
1 Year | 3 Years | Since
Inception (November 30, 2018) |
Separately Managed Accounts | 23.22% | 5.24% | 5.72% |
MSCI World ex USA Index (Reflects no deduction for fees, expenses or taxes)1 | 24.70% | 6.63% | 5.93% |
1 | The MSCI World ex USA Index captures large and mid cap representation across 22 of 23 Developed Markets (DM) countries, excluding the United States. With 885 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. |
BlackRock U.S. Carbon Transition Readiness ETF | |||||
Year
Ended 07/31/23 |
Year
Ended 07/31/22 |
Period
From 04/06/21(a) to 07/31/21 | |||
Net asset value, beginning of period | $ 45.83 | $ 50.58 | $ 46.60 | ||
Net investment income(b) | 0.72 | 0.65 | 0.17 | ||
Net realized and unrealized gain (loss)(c) | 4.74 | (4.00) | 3.90 | ||
Net increase (decrease) from investment operations | 5.46 | (3.35) | 4.07 | ||
Distributions (d) | |||||
From net investment income | (0.72) | (0.63) | (0.09) | ||
From net realized gain | — | (0.77) | — | ||
Total distributions | (0.72) | (1.40) | (0.09) | ||
Net asset value, end of period | $ 50.57 | $ 45.83 | $ 50.58 | ||
Total Return(e) | |||||
Based on net asset value | 12.16% | (6.90)% | 8.74% (f) | ||
Ratios to Average Net Assets(g) | |||||
Total expenses | 0.29% | 0.29% | 0.29% (h) | ||
Total expenses after fees waived | 0.14% | 0.14% | 0.14% (h) | ||
Net investment income | 1.59% | 1.31% | 1.07% (h) | ||
Supplemental Data | |||||
Net assets, end of period (000) | $1,683,979 | $1,409,350 | $1,423,889 | ||
Portfolio turnover rate(i) | 31% | 58% | 13% | ||
(a) Commencement of operations. | |||||
(b) Based on average shares outstanding. | |||||
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. | |||||
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. | |||||
(e) Where applicable, assumes the reinvestment of distributions. | |||||
(f) Not annualized. | |||||
(g) Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. | |||||
(h) Annualized. | |||||
(i) Portfolio turnover rate excludes in-kind transactions. |
BlackRock World ex U.S. Carbon Transition Readiness ETF | |||||
Year
Ended 07/31/23 |
Year
Ended 07/31/22 |
Period
From 04/06/21(a) to 07/31/21 | |||
Net asset value, beginning of period | $ 39.85 | $ 48.06 | $ 46.16 | ||
Net investment income(b) | 1.20 | 1.23 | 0.39 | ||
Net realized and unrealized gain (loss)(c) | 3.69 | (7.93) | 1.82 | ||
Net increase (decrease) from investment operations | 4.89 | (6.70) | 2.21 | ||
Distributions (d) | |||||
From net investment income | (1.33) | (1.30) | (0.31) | ||
From net realized gain | — | (0.21) | — | ||
Total distributions | (1.33) | (1.51) | (0.31) | ||
Net asset value, end of period | $ 43.41 | $ 39.85 | $ 48.06 | ||
Total Return(e) | |||||
Based on net asset value | 12.50% | (14.15)% | 4.77% (f) | ||
Ratios to Average Net Assets(g) | |||||
Total expenses | 0.35% | 0.35% | 0.35% (h) | ||
Total expenses after fees waived | 0.20% | 0.20% | 0.20% (h) | ||
Net investment income | 2.99% | 2.73% | 2.58% (h) | ||
Supplemental Data | |||||
Net assets, end of period (000) | $576,262 | $442,315 | $605,599 | ||
Portfolio turnover rate(i) | 39% | 47% | 19% | ||
(a) Commencement of operations. | |||||
(b) Based on average shares outstanding. | |||||
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. | |||||
(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. | |||||
(e) Where applicable, assumes the reinvestment of distributions. | |||||
(f) Not annualized. | |||||
(g) Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. | |||||
(h) Annualized. | |||||
(i) Portfolio turnover rate excludes in-kind transactions. |
Call: | 1-800-474-2737 (toll free) |
Write: | c/o
BlackRock Investments, LLC 1 University Square Drive, Princeton, NJ 08540 |