LOGO

  MARCH 31, 2022

 

  

2022 Annual Report

 

 

iShares Trust

· iShares Russell Top 200 ETF | IWL | NYSE Arca

· iShares Russell Top 200 Growth ETF | IWY | NYSE Arca

· iShares Russell Top 200 Value ETF | IWX | NYSE Arca

· iShares Russell 1000 ETF | IWB | NYSE Arca

· iShares Russell 1000 Growth ETF | IWF | NYSE Arca

· iShares Russell 1000 Value ETF | IWD | NYSE Arca

· iShares Russell 2000 ETF | IWM | NYSE Arca

· iShares Russell 2000 Growth ETF | IWO | NYSE Arca

· iShares Russell 2000 Value ETF | IWN | NYSE Arca


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of March 31, 2022 saw a continuation of the resurgent growth that followed the initial coronavirus (or “COVID-19”) pandemic reopening, albeit at a slower pace. The global economy weathered the emergence of several variant strains and the resulting peaks and troughs in infections amid optimism that increasing vaccinations and economic adaptation could help contain the pandemic’s disruptions. However, rapid changes in consumer spending led to supply constraints and elevated inflation. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the invasion has presented challenges for both investors and policymakers.

Equity prices were mixed, as persistently high inflation drove investors’ expectations for higher interest rates, which particularly weighed on relatively high valuation growth stocks and economically sensitive small-capitalization stocks. Overall, small-capitalization U.S. stocks declined, while large-capitalization U.S. stocks posted a strong advance. International equities from developed markets gained slightly, although emerging market stocks declined, pressured by rising interest rates and a strengthening U.S. dollar.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose during the reporting period as the economy expanded rapidly and inflation reached its highest annualized reading in decades. The corporate bond market also faced inflationary headwinds, although the improving economy assuaged credit concerns and high-yield corporate bonds consequently declined less than investment-grade corporate bonds.

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is growing faster than expected, raised interest rates in March 2022, the first increase of this business cycle. Furthermore, the Fed wound down its bond-buying programs and raised the prospect of reversing the flow and reducing its balance sheet. Continued high inflation and the Fed’s new tone led many analysts to anticipate that the Fed will continue to raise interest rates multiple times throughout the year.

Looking ahead, however, the horrific war in Ukraine has significantly clouded the outlook for the global economy, leading to major volatility in energy and metal markets. Sanctions on Russia, Europe’s top energy supplier, and general wartime disruption are likely to drive already-high commodity prices even higher. Sharp increases in energy prices will exacerbate inflationary pressure while also constraining economic growth. Combating inflation without stifling a recovery, while buffering against ongoing supply and price shocks amid the ebb and flow of the pandemic, will be an especially challenging environment for setting effective monetary policy. Despite the likelihood of more rate increases on the horizon, we believe the Fed will err on the side of protecting employment, even at the expense of higher inflation.

In this environment, we favor an overweight to equities, as valuations have become more attractive and inflation-adjusted interest rates remain low. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long term. We favor U.S. equities due to strong earnings momentum, while Japanese equities should benefit from supportive monetary and fiscal policy. We are underweight credit overall, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities for additional yield. We believe that international diversification and a focus on sustainability and quality can help provide portfolio resilience.

Overall, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of March 31, 2022
       
     6-Month        12-Month
   

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

      5.92 %           15.65 %
   

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

      (5.55 )           (5.79 )
   

International equities
(MSCI Europe, Australasia, Far East Index)

      (3.38 )           1.16
   

Emerging market equities
(MSCI Emerging Markets Index)

      (8.20 )           (11.37 )
   

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

      0.05           0.07
   

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

      (6.04 )           (3.31 )
   

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

      (5.92 )           (4.15 )
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

      (5.55 )           (4.47 )
   

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

      (4.16 )           (0.66 )

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  

H I S  A G E   I S   N O T  A R T   O F  O U R  U N D  E P O R T


Table of Contents

 

      Page

The Markets in Review

   2

Market Overview

   4

Fund Summary

   5

About Fund Performance

   23

Shareholder Expenses

   23

Schedules of Investments

   24

Financial Statements

  

Statements of Assets and Liabilities

   116

Statements of Operations

   119

Statements of Changes in Net Assets

   122

Financial Highlights

   127

Notes to Financial Statements

   136

Report of Independent Registered Public Accounting Firm

   150

Important Tax Information (Unaudited)

   151

Statement Regarding Liquidity Risk Management Program

   152

Supplemental Information

   153

Trustee and Officer Information

   155

General Information

   158

Glossary of Terms Used in this Report

   159

 

 

 


Market Overview

 

iShares Trust

Domestic Market Overview

U.S. stocks advanced for the 12 months ended March 31, 2022 (“reporting period”), when the Russell 3000® Index, a broad measure of U.S. equity market performance, returned 11.92%. The strengthening economy supported equities, as high consumer spending drove robust growth, and most remaining coronavirus pandemic-related restrictions were eased. Increased economic activity led to strong corporate earnings as companies reaped the benefits of the recovery. Nonetheless, significant challenges emerged, particularly during the second half of the reporting period, including high inflation, rising interest rates, and the impacts of Russia’s invasion of Ukraine.

The U.S. economic recovery was powered primarily by consumers, who were supported by strong household balance sheets. Prior to the beginning of the reporting period, fiscal stimulus and business closures led to record-high personal savings rates. This allowed consumers to spend at an elevated level throughout much of the reporting period, as pent-up demand was released. The ensuing acceleration in economic activity allowed the U.S. to reach and then surpass its pre-pandemic output level. Hiring increased as businesses restored capacity, and unemployment decreased substantially, falling to 3.6% in March 2022.

The growing economy and rapid increases in consumer spending drove a significant rise in inflation. Supply chains for many goods were disrupted by the pandemic and were unable to quickly adapt to the rapid rebound in demand. In one prominent example of this dynamic, a global shortage of semiconductors created bottlenecks in the production of many goods, including automobiles. Consequently, the price of used cars rose sharply during the reporting period and was a notable factor in overall inflation. Oil prices also rose significantly as demand increased, and the supply of oil was constrained by a lack of investment. The strong job market led to higher wages, particularly at the lower end of the market. These factors led to higher prices in many areas of the economy. By the end of the reporting period the consumer price index, a widely used measure of prices in the U.S., grew at the fastest rate since 1982.

Rising inflation led to a shift in policy from the U.S. Federal Reserve Bank (“Fed”). As the reporting period began, the Fed was using accommodative monetary policy to stimulate the economy. Short-term interest rates were kept at near zero levels, and the Fed used bond-buying programs to stabilize debt markets. However, rising prices led the Fed to tighten monetary policy in the second half of the reporting period in an attempt to prevent runaway inflation. The Fed slowed and then ended its bond-buying activities and discussed plans to begin reducing its balance sheet by selling bonds later in 2022. In March 2022, it raised short-term interest rates and indicated that further increases could be necessary. Interest rates rose significantly in anticipation of further tightening, leading to higher borrowing costs for businesses.

Russia’s invasion of Ukraine in late February 2022 raised the prospect of substantial disruptions to the global economy and increased uncertainty in financial markets. The invasion was met with widespread condemnation and sanctions imposed by many countries on the Russian state, businesses, and individuals. This led to sharp volatility in energy markets, as Russia is a top producer of both oil and natural gas. Furthermore, both Russia and Ukraine are notable exporters of wheat, and the war’s disruption led to concerns surrounding food prices.

 

 

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Fund Summary as of March 31, 2022    iShares® Russell Top 200 ETF

 

Investment Objective

The iShares Russell Top 200 ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities, as represented by the Russell Top 200® 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

    15.48      16.87      14.98       15.48      117.99      303.93

Fund Market

    15.46        16.88        14.99         15.46        118.16        304.38  

Index

    15.66        17.04        15.16               15.66        119.58        310.33  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 23 for more information.

Expense Example

 

     Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      

  

   

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $        1,000.00          $      1,054.30          $      0.77               $      1,000.00          $      1,024.20          $      0.76          0.15

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  5


Fund Summary as of March 31, 2022  (continued)    iShares® Russell Top 200 ETF

 

Portfolio Management Commentary

Large-capitalization U.S. stocks advanced for the reporting period amid strong economic growth and robust consumer spending. The information technology sector contributed the most to the Index’s return, driven primarily by the strong performance of the largest companies in the sector. These companies benefited from network effects, which allowed them to use existing products and services to attract new customers. The technology hardware and equipment industry led contributions amid strong growth in sales and profits. Increased sales of smartphones with 5G capability drove profits in the industry, as demand for these products outstripped supply, helped by discounts from wireless carriers. Increased sales of services, such as digital downloads and payment processing, also boosted the industry. The semiconductors and semiconductor equipment industry also gained, as a global shortage of semiconductors helped support profits. Consumer demand was high for products that use semiconductors, including personal computers, video cards, and automobiles. In response to high demand, makers of semiconductors ramped up production to all-time highs, boosting revenues.

The healthcare sector also contributed to the Index’s performance, buoyed by earnings growth. The widespread adoption of COVID-19 vaccines generated billions of dollars in sales for pharmaceuticals companies. In addition, companies developed successful antiviral medications and antibody therapies to treat COVID-19, driving revenues significantly higher. As the coronavirus pandemic abated, elective medical procedures, which represent an important source of revenue for both care providers and makers of medical supplies and equipment, increased from pandemic-induced lows.

Stocks in the financials sector contributed to the Index’s return as the strengthening economy and higher interest rates drove earnings growth. The diversified financials industry was the top contributor, led by the strong gains of a multisector holding company, which included notable investments in technology, insurance, railroad, and utilities companies.

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Information Technology

    31.5

Health Care

    14.2  

Consumer Discretionary

    12.1  

Financials

    11.0  

Communication Services

    10.7  

Consumer Staples

    6.5  

Industrials

    6.4  

Energy

    3.1  

Utilities

    1.8  

Real Estate

    1.5  

Materials

    1.2  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 
            

Apple Inc.

    8.6  

Microsoft Corp.

    7.4    

Amazon.com Inc.

    4.5    

Tesla Inc.

    2.9    

Alphabet Inc., Class A

    2.7    

Alphabet Inc., Class C

    2.5    

NVIDIA Corp.

    2.1    

Berkshire Hathaway Inc., Class B

    2.1    

Meta Platforms Inc, Class A

    1.6    

UnitedHealth Group Inc.

    1.5    
  (a)

Excludes money market funds.

 

 

 

 

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Fund Summary as of March 31, 2022     iShares® Russell Top 200 Growth ETF

 

Investment Objective

The iShares Russell Top 200 Growth ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit growth characteristics, as represented by the Russell Top 200® Growth 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

    18.58      22.12      17.81       18.58      171.60      414.82

Fund Market

    18.74        22.15        17.82         18.74        171.94        415.65  

Index

    18.83        22.34        18.04               18.83        174.05        425.05  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 23 for more information.

Expense Example

 

   

Actual

         

Hypothetical 5% Return

          
 

 

 

     

 

 

      
     

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
                                                                      
      $        1,000.00          $      1,041.60          $      1.02               $      1,000.00          $      1,023.90          $      1.01          0.20

 

  (a)

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  7


Fund Summary as of March 31, 2022  (continued)    iShares® Russell Top 200 Growth ETF

 

Portfolio Management Commentary

Growth-oriented large-capitalization U.S. stocks advanced for the reporting period amid strong economic growth and robust consumer spending. The information technology sector contributed the most to the Index’s return, driven primarily by the strong performance of the largest companies in the sector. These companies benefited from network effects, which allowed them to use existing products and services to make their offerings more attractive to new customers. The technology hardware and equipment industry led contributions amid strong growth in sales and profits. Increased sales of smartphones with 5G capability drove profits in the industry, as demand for these products outstripped supply, helped by discounts from wireless carriers. Increased sales of services, such as digital downloads and payment processing, also boosted the industry. The semiconductors and semiconductor equipment industry also gained, as a global shortage of semiconductors helped support profits in the industry. Consumer demand was high for products that use semiconductors, including personal computers, video cards, and automobiles. In response to high demand, makers of semiconductors ramped up production to record highs, boosting revenues.

A strong rebound in consumer spending supported the consumer discretionary sector, which contributed notably to the Index’s return. The automobile manufacturing industry led the advance amid strong demand for electric vehicles. Despite semiconductor shortages that constrained production, electric car shipments continued to grow. Plans for additional manufacturing facilities also helped the industry amid strong growth in revenues and profits.

The healthcare sector also contributed to the Index’s performance, buoyed by earnings growth. Pharmaceuticals companies developed successful antiviral medications and antibody therapies to treat COVID-19, driving revenues significantly higher. Demographic trends also benefited the healthcare sector, as the needs of an aging population added to demand for pharmaceuticals.

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Information Technology

    48.4

Consumer Discretionary

    19.2  

Communication Services

    11.9  

Health Care

    7.3  

Consumer Staples

    4.7  

Industrials

    4.3  

Financials

    1.9  

Real Estate

    1.6  

Other (each representing less than 1%)

    0.7  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Apple Inc.

    15.0

Microsoft Corp.

    13.0  

Amazon.com Inc.

    7.9  

Tesla Inc.

    5.0  

Alphabet Inc., Class A

    4.0  

Alphabet Inc., Class C

    3.7  

NVIDIA Corp.

    3.6  

Meta Platforms Inc, Class A

    2.9  

Visa Inc., Class A

    2.1  

Home Depot Inc. (The)

    1.7  
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2022    iShares® Russell Top 200 Value ETF

 

Investment Objective

The iShares Russell Top 200 Value ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit value characteristics, as represented by the Russell Top 200® Value 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

    11.56      10.19      11.32       11.56      62.46      192.20

Fund Market

    11.43        10.20        11.33         11.43        62.55        192.46  

Index

    11.77        10.40        11.55               11.77        64.01        198.42  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 23 for more information.

Expense Example

 

   

Actual

         

Hypothetical 5% Return

          
 

 

 

     

 

 

      
     

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
                                                                      
      $        1,000.00          $      1,070.90          $      1.03               $      1,000.00          $      1,023.90          $      1.01          0.20

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  9


Fund Summary as of March 31, 2022  (continued)    iShares® Russell Top 200 Value ETF

 

Portfolio Management Commentary

Value-oriented large-capitalization U.S. stocks advanced for the reporting period amid strong economic growth and robust consumer spending. The healthcare sector contributed the most to the Index’s performance, buoyed by earnings growth and a partial return to normalcy in medical care as the coronavirus pandemic abated. Elective medical procedures, which represent an important source of revenue for both care providers and makers of medical supplies and equipment, increased from pandemic-induced lows. The widespread adoption of COVID-19 vaccines generated billions of dollars in sales for pharmaceuticals companies. Demographic trends also benefited the healthcare sector, as the needs of an aging population added to demand for health services and pharmaceuticals.

Stocks in the financials sector also contributed to the Index’s return, as the strengthening economy and higher interest rates drove earnings growth. The diversified financials industry was the top contributor, led by the strong gains of a multisector holding company. The rebounding economy helped the performance of the value-oriented firms represented in this company’s holdings, which included notable investments in the information technology sector, in addition to insurance, railroad, and utilities companies.

The energy sector was a notable contributor to the Index’s return amid higher prices for energy commodities. As the global economy rebounded following the initial disruptions of the pandemic, demand for energy accelerated while supply remained constrained. Consequently, the prices of oil, natural gas, and coal all rose notably during the reporting period. The oil, gas, and consumable fuels industry benefited directly from rising oil and gas prices, which drove increased cash flow, allowing companies to reduce their debt loads while minimizing investment spending.

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Health Care

    23.3

Financials

    23.1  

Industrials

    9.3  

Information Technology

    9.2  

Communication Services

    9.1  

Consumer Staples

    8.8  

Energy

    7.0  

Utilities

    4.2  

Consumer Discretionary

    2.7  

Materials

    1.9  

Real Estate

    1.4  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Berkshire Hathaway Inc., Class B

    4.8

Johnson & Johnson

    3.4  

UnitedHealth Group Inc.

    3.3  

JPMorgan Chase & Co.

    2.9  

Procter & Gamble Co. (The)

    2.7  

Exxon Mobil Corp.

    2.6  

Chevron Corp.

    2.3  

Bank of America Corp.

    2.2  

Pfizer Inc.

    2.1  

Walt Disney Co. (The)

    1.7  
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2022    iShares® Russell 1000 ETF

 

Investment Objective

The iShares Russell 1000 ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities, as represented by the Russell 1000® 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

    13.09     15.67     14.39        13.09     107.02     283.49

Fund Market

    13.04       15.66       14.39          13.04       107.00       283.63  

Index

    13.27       15.82       14.53                13.27       108.42       288.41  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

  LOGO  

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 23 for more information.

Expense Example

 

    Actual              Hypothetical 5% Return                    
 

 

 

        

 

 

           
   

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
        

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Annualized
Expense
Ratio
 
 
 
                   
      $      1,000.00          $      1,040.70          $       0.76                  $      1,000.00          $      1,024.20          $        0.76                     0.15

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  11


Fund Summary as of March 31, 2022  (continued)    iShares® Russell 1000 ETF

 

Portfolio Management Commentary

Large- and mid-capitalization U.S. stocks advanced for the reporting period amid strong economic growth and robust consumer spending. The information technology sector contributed the most to the Index’s return, driven primarily by the strong performance of the largest companies in the sector. These companies benefited from network effects, which allowed them to use existing products and services to attract new customers. The technology hardware and equipment industry led contributions amid strong growth in sales and profits. Increased sales of smartphones with 5G capability drove profits in the industry, as demand for these products outstripped supply, helped by discounts from wireless carriers. Increased sales of services, such as digital downloads and payment processing, also boosted the industry. The semiconductors and semiconductor equipment industry also gained, as a global shortage of semiconductors helped support profits. Consumer demand was high for products that use semiconductors, including personal computers, video cards, and automobiles. In response to high demand, makers of semiconductors ramped up production to record highs, boosting revenues.

The healthcare sector contributed notably to the Index’s performance, buoyed by earnings growth. The widespread adoption of COVID-19 vaccines and successful development of antiviral medications and antibody therapies to treat COVID-19 generated billions of dollars in sales for pharmaceuticals companies. As the coronavirus pandemic abated, elective medical procedures, which represent an important source of revenue for both care providers and makers of medical supplies and equipment, increased from pandemic-induced lows.

Stocks in the financials sector also contributed to the Index’s return, as the strengthening economy and higher interest rates drove earnings growth. The diversified financials industry was the top contributor, led by the strong gains of a multisector holding company, which included notable investments in technology, insurance, railroad, and utilities companies.

Portfolio Information

 

 

ALLOCATION BY SECTOR

 

   

Sector

 

Percent of   

Total Investments(a)

Information Technology

  28.0%

Health Care

  13.3   

Consumer Discretionary

  11.9   

Financials

  11.5   

Communication Services

  8.8   

Industrials

  8.5   

Consumer Staples

  5.8   

Energy

  3.7   

Real Estate

  3.3   

Utilities

  2.7   

Materials

  2.5   

TEN LARGEST HOLDINGS

 

   
Security  

Percent of   

Total Investments(a)

Apple Inc.

  6.4%

Microsoft Corp.

  5.5   

Amazon.com Inc.

  3.4   

Tesla Inc.

  2.1   

Alphabet Inc., Class A

  2.0   

Alphabet Inc., Class C

  1.8   

NVIDIA Corp.

  1.6   

Berkshire Hathaway Inc., Class B

  1.5   

Meta Platforms Inc, Class A

  1.2   

UnitedHealth Group Inc.

  1.1   
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2022    iShares® Russell 1000 Growth ETF

 

Investment Objective

The iShares Russell 1000 Growth ETF (the “Fund”) seeks to track the investment results of an index composed of large-and mid-capitalization U.S. equities that exhibit growth characteristics, as represented by the Russell 1000® Growth 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

    14.77     20.65     16.82        14.77     155.68     373.42

Fund Market

    14.87       20.68       16.84          14.87       155.92       374.04  

Index

    14.98       20.88       17.04                14.98       158.14       382.40  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 23 for more information.

Expense Example

 

    Actual              Hypothetical 5% Return                    
 

 

 

        

 

 

           
   

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
        

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Annualized
Expense
Ratio
 
 
 
                   
      $      1,000.00          $      1,014.50          $       0.90                  $      1,000.00          $      1,024.00          $        0.91                     0.18

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  13


Fund Summary as of March 31, 2022  (continued)    iShares® Russell 1000 Growth ETF

 

Portfolio Management Commentary

Growth-oriented large- and mid-capitalization U.S. stocks advanced for the reporting period amid strong economic growth and robust consumer spending. The information technology sector contributed the most to the Index’s return, driven primarily by the strong performance of the largest companies in the sector. These companies benefited from network effects, which allowed them to use existing products and services to make their offerings more attractive to new customers. The technology hardware and equipment industry led contributions amid strong growth in sales and profits. Increased sales of smartphones with 5G capability drove profits in the industry, as demand for these products outstripped supply, helped by discounts from wireless carriers. Increased sales of services, such as digital downloads and payment processing, also boosted the industry. The semiconductors and semiconductor equipment industry also gained, as a global shortage of semiconductors helped support profits in the industry. Consumer demand was high for products that use semiconductors, including personal computers, video cards, and automobiles. In response to high demand, makers of semiconductors ramped up production to record highs, boosting revenues.

The healthcare sector contributed notably to the Index’s performance, buoyed by earnings growth. Pharmaceuticals companies developed successful antiviral medications and antibody therapies to treat COVID-19, driving revenues significantly higher. Demographic trends also benefited the healthcare sector, as the needs of an aging population added to demand for pharmaceuticals.

A strong rebound in consumer spending supported the consumer discretionary sector, which also contributed to the Index’s return. The automobile manufacturing industry led the advance amid strong demand for electric vehicles. Despite semiconductor shortages that constrained production, electric car shipments continued to grow. Plans for additional manufacturing facilities also helped the industry amid strong growth in revenues and profits.

Portfolio Information

 

 

ALLOCATION BY SECTOR

 

   

Sector

 

Percent of   

Total Investments(a)

Information Technology

  46.2%

Consumer Discretionary

  18.5   

Communication Services

  10.5   

Health Care

  8.9   

Industrials

  6.1   

Consumer Staples

  4.2   

Financials

  2.5   

Real Estate

  1.7   

Other (each representing less than 1%)

  1.4   

TEN LARGEST HOLDINGS

 

   
Security  

Percent of   

Total Investments(a)

Apple Inc.

  12.5%

Microsoft Corp.

  10.8   

Amazon.com Inc.

  6.6   

Tesla Inc.

  4.2   

Alphabet Inc., Class A

  3.4   

Alphabet Inc., Class C

  3.1   

NVIDIA Corp.

  3.0   

Meta Platforms Inc, Class A

  2.4   

Visa Inc., Class A

  1.7   

Home Depot Inc. (The)

  1.5   
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2022    iShares® Russell 1000 Value ETF

 

Investment Objective

The iShares Russell 1000 Value ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities that exhibit value characteristics, as represented by the Russell 1000® Value 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

    11.45     10.11     11.50        11.45     61.87     196.98

Fund Market

    11.43       10.12       11.51          11.43       61.97       197.32  

Index

    11.67       10.29       11.70                11.67       63.17       202.35  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 23 for more information.

Expense Example

 

    Actual              Hypothetical 5% Return                    
 

 

 

        

 

 

           
   

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
        

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Annualized
Expense
Ratio
 
 
 
                   
      $      1,000.00          $      1,068.60          $       0.93                  $      1,000.00          $      1,024.00          $        0.91                     0.18

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  15


Fund Summary as of March 31, 2022  (continued)    iShares® Russell 1000 Value ETF

 

Portfolio Management Commentary

Value-oriented large- and mid-capitalization U.S. stocks advanced for the reporting period amid strong economic growth and robust consumer spending. The energy sector contributed the most to the Index’s return amid higher prices for energy commodities, as the rebounding economy accelerated demand for energy while supply remained constrained. The war in Ukraine drove further gains in oil prices as sanctions on Russia, the world’s third-largest supplier of oil, led to increased uncertainty surrounding supply. The oil, gas, and consumable fuels industry benefited directly from rising oil and gas prices, which drove increased cash flow, allowing companies to reduce their debt loads while minimizing investment spending.

Stocks in the financials sector contributed notably to the Index’s return, as the strengthening economy and higher interest rates drove earnings growth. The diversified financials industry rose, led by the strong gains of a multisector holding company. The rebounding economy helped the performance of this company’s value-oriented holdings, which included notable investments in technology, insurance, railroad, and utilities companies. Robust investment banking activity, especially initial public offerings and existing equity capital financings, drove gains in the capital markets industry despite modest trading activity. The insurance industry also advanced, as many insurers were able to increase insurance premiums in an environment of higher inflation.

The healthcare sector was a modest contributor to the Index’s performance, buoyed by earnings growth. Elective medical procedures, which represent an important source of revenue for care providers, increased from coronavirus pandemic-induced lows. The widespread adoption of COVID-19 vaccines generated billions of dollars in sales for pharmaceuticals companies. On the downside, the communication services sector detracted marginally from the Index’s return, as disruptions from the Delta and Omicron COVID-19 variants weighed on the earnings of the entertainment industry.

Portfolio Information

 

 

ALLOCATION BY SECTOR

 

 

   

Sector

   

Percent of

Total Investments

 

(a) 

Financials

    20.8

Health Care

    17.9  

Industrials

    11.0  

Information Technology

    9.3  

Consumer Staples

    7.4  

Communication Services

    7.1  

Energy

    7.1  

Utilities

    5.4  

Consumer Discretionary

    5.0  

Real Estate

    4.9  

Materials

    4.1  

 

  (a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

 

   

Security

   

Percent of

Total Investments

 

(a) 

Berkshire Hathaway Inc., Class B

    3.1

Johnson & Johnson

    2.3  

UnitedHealth Group Inc.

    2.2  

JPMorgan Chase & Co.

    1.9  

Procter & Gamble Co. (The)

    1.8  

Exxon Mobil Corp.

    1.7  

Chevron Corp.

    1.5  

Bank of America Corp.

    1.4  

Pfizer Inc.

    1.4  

Walt Disney Co. (The)

    1.1  

 

 

 

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Fund Summary as of March 31, 2022      iShares® Russell 2000 ETF

 

Investment Objective

The iShares Russell 2000 ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities, as represented by the Russell 2000® 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

    (5.92 )%       9.67      11.03       (5.92 )%       58.66      184.77

Fund Market

    (6.20      9.68        11.02         (6.20      58.73        184.57  

Index

    (5.79      9.74        11.04               (5.79      59.19        185.00  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 23 for more information.

Expense Example

 

    Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      
     

Beginning

Account Value

(10/01/21)

 

 

 

      

Ending

Account Value

(03/31/22)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

           

Beginning

Account Value

(10/01/21)

 

 

 

      

Ending

Account Value

(03/31/22)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $       1,000.00          $        944.00          $       0.92               $      1,000.00          $      1,024.00          $        0.96          0.19

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  17


Fund Summary as of March 31, 2022  (continued)    iShares® Russell 2000 ETF

 

Portfolio Management Commentary

Small-capitalization U.S. stocks declined for the reporting period despite strong economic growth and robust consumer spending. The healthcare sector was the leading detractor from the Index’s return, as the stocks of many smaller companies in the sector declined. Rising interest rates worked against companies early in the product development process, as investors sought more predictable cash flows as the cost of borrowing increased. The pharmaceuticals, biotechnology, and life sciences industry declined amid stiff competition from companies working to develop new treatments in similar areas. Merger and acquisition activity also slowed significantly, dampening investor enthusiasm for smaller companies that could be acquired by larger firms. A relative dearth of positive news, such as high-growth potential drugs and treatments advancing in the FDA process, along with muted enthusiasm for stocks with high valuations and minimal earnings, also pressured the sector.

Stocks in the consumer discretionary sector also detracted from the Index’s performance despite the overall increase in consumer spending. The consumer durables industry declined amid investor expectations of a downturn in the housing market. The specialty retail industry faced headwinds from rising prices, as inflation increased the wholesale cost of goods for retailers. The information technology sector also detracted, as higher inflation and interest rates disproportionately pressured smaller companies in the sector.

On the upside, the energy sector contributed to the Index’s return. As the global economy rebounded, demand for energy accelerated while supply remained constrained, leading to higher prices for energy commodities. The war in Ukraine drove further gains in oil prices. The oil, gas, and consumable fuels industry benefited directly from rising oil and gas prices, which drove increased cash flow, allowing companies to reduce their debt loads while minimizing investment spending.

Portfolio Information

 

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Health Care

    16.6

Financials

    15.9  

Industrials

    15.5  

Information Technology

    13.7  

Consumer Discretionary

    10.2  

Real Estate

    7.8  

Energy

    6.6  

Materials

    4.0  

Consumer Staples

    3.5  

Communication Services

    3.2  

Utilities

    3.0  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Ovintiv Inc.

    0.5

AMC Entertainment Holdings Inc., Class A

    0.5  

Avis Budget Group Inc.

    0.4  

BJ’s Wholesale Club Holdings Inc.

    0.3  

Tenet Healthcare Corp.

    0.3  

Chesapeake Energy Corp.

    0.3  

Tetra Tech Inc.

    0.3  

Antero Resources Corp.

    0.3  

Lattice Semiconductor Corp.

    0.3  

EastGroup Properties Inc.

    0.3  
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2022    iShares® Russell 2000 Growth ETF

 

Investment Objective

The iShares Russell 2000 Growth ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit growth characteristics, as represented by the Russell 2000® Growth 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

    (14.42 )%       10.28      11.26       (14.42 )%       63.09      190.74

Fund Market

    (14.68      10.27        11.25         (14.68      63.05        190.43  

Index

    (14.33      10.33        11.21               (14.33      63.46        189.39  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 23 for more information.

Expense Example

 

    Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      

  

   

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $      1,000.00          $        873.40          $      1.07               $      1,000.00          $      1,023.80          $      1.16          0.23

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  19


Fund Summary as of March 31, 2022  (continued)    iShares® Russell 2000 Growth ETF

 

Portfolio Management Commentary

Growth-oriented small-capitalization U.S. stocks declined for the reporting period despite strong economic growth and robust consumer spending. These stocks, which derive a significant portion of their prices from investors’ expectations of future growth, faced significant headwinds relative to other equities. Growth stocks are particularly sensitive to interest rates, which rose as the Fed moved to a less accommodative monetary policy. Persistent inflation and the war in Ukraine led to concerns about slower economic growth, which also weighed on growth stocks.

The healthcare sector was the leading detractor from the Index’s return, as the stocks of many smaller companies in the sector declined. Rising interest rates worked against companies early in the product development process, as investors sought more predictable cash flows as the cost of borrowing increased. The pharmaceuticals, biotechnology, and life sciences industry declined amid stiff competition from companies working to develop new treatments in similar areas. Merger and acquisition activity also slowed significantly, dampening investor enthusiasm for smaller companies that could be acquired by larger firms. A relative dearth of positive news along with muted enthusiasm for stocks with high valuations and minimal earnings also pressured the sector.

Stocks in the consumer discretionary sector detracted from the Index’s performance despite the overall increase in consumer spending. The specialty retail industry faced headwinds from rising prices, as inflation increased the wholesale cost of goods for retailers. Supply chain difficulties also weighed on some retailers, leading to increased transportation costs and low inventory. Brick-and-mortar retailers declined as coronavirus pandemic trends increased competition from online sellers. The information technology sector also detracted, as higher inflation and interest rates disproportionately pressured small capitalization technology stocks.

Portfolio Information

 

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Health Care

    25.1

Information Technology

    22.8  

Industrials

    15.7  

Consumer Discretionary

    13.6  

Financials

    5.5  

Consumer Staples

    4.1  

Materials

    3.5  

Energy

    3.4  

Real Estate

    3.3  

Communication Services

    2.7  

Utilities

    0.3  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Tetra Tech Inc.

    0.7

Lattice Semiconductor Corp.

    0.6  

EastGroup Properties Inc.

    0.6  

WillScot Mobile Mini Holdings Corp.

    0.6  

Synaptics Inc.

    0.6  

Southwestern Energy Co.

    0.6  

II-VI Inc.

    0.6  

Performance Food Group Co.

    0.5  

Shockwave Medical Inc.

    0.5  

BJ’s Wholesale Club Holdings Inc.

    0.5  
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2022    iShares® Russell 2000 Value ETF

 

Investment Objective

The iShares Russell 2000 Value ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit value characteristics, as represented by the Russell 2000® Value 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

    3.07      8.40      10.40       3.07      49.66      168.93

Fund Market

    2.83        8.41        10.40         2.83        49.77        168.86  

Index

    3.32        8.57        10.54               3.32        50.85        172.37  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 23 for more information.

Expense Example

 

    Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      

  

   

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(10/01/21)
 
 
 
      

Ending
Account Value
(03/31/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $          1,000.00          $      1,017.20          $      1.16               $      1,000.00          $      1,023.80          $      1.16          0.23

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  21


Fund Summary as of March 31, 2022  (continued)    iShares® Russell 2000 Value ETF

 

Portfolio Management Commentary

Value-oriented small-capitalization U.S. stocks advanced modestly for the reporting period amid strong economic growth and robust consumer spending. The energy sector was the leading contributor to the Index’s return amid higher prices for energy commodities. As the global economy rebounded following the initial disruptions of the coronavirus pandemic, demand for energy accelerated while supply remained constrained. Consequently, the prices of oil, natural gas, and coal all rose notably during the reporting period. The war in Ukraine drove further gains in oil prices as sanctions on Russia, the world’s third-largest supplier of oil, led to increased uncertainty surrounding supply. The oil, gas, and consumable fuels industry benefited directly from rising oil and gas prices, which drove increased cash flow, allowing companies to reduce their debt loads while minimizing investment spending.

The real estate sector was a notable contributor to the Index’s return amid a nationwide rise in both residential and commercial property prices. Despite rising interest rates, borrowing costs were historically low for much of the reporting period, benefiting the sector, which relies heavily on debt financing.

On the downside, the healthcare sector detracted from the Index’s return, as the stocks of many smaller companies in the sector declined. Rising interest rates worked against companies early in the product development process, as investors sought more predictable cash flows as the cost of borrowing increased. The pharmaceuticals, biotechnology, and life sciences industry declined amid stiff competition from companies working to develop new treatments in similar areas. Merger and acquisition activity also slowed significantly, dampening investor interest in smaller companies that could be acquired by larger firms. Additionally, a relative dearth of positive news and muted enthusiasm for stocks with high valuations and minimal earnings pressured the industry.

Portfolio Information

 

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    25.4

Industrials

    15.3  

Real Estate

    11.9  

Energy

    9.6  

Health Care

    8.8  

Consumer Discretionary

    7.1  

Information Technology

    5.4  

Utilities

    5.4  

Materials

    4.5  

Communication Services

    3.6  

Consumer Staples

    3.0  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Ovintiv Inc.

    0.9

AMC Entertainment Holdings Inc., Class A

    0.9  

Avis Budget Group Inc.

    0.8  

Chesapeake Energy Corp.

    0.6  

Tenet Healthcare Corp.

    0.6  

Antero Resources Corp.

    0.5  

STAG Industrial Inc.

    0.5  

Macy’s Inc.

    0.5  

Range Resources Corp.

    0.5  

PDC Energy Inc.

    0.5  
  (a) 

Excludes money market funds.

 

 

 

22  

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


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. 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.

Shareholder 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 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 a 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 / S H A R E H O L D E R   E X P E N S E S

  23


Schedule of Investments

March 31, 2022

  

iShares® Russell Top 200 ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Aerospace & Defense — 1.7%

   

Boeing Co. (The)(a)

        17,652     $ 3,380,358  

General Dynamics Corp.

    8,189       1,975,023  

L3Harris Technologies Inc.

    6,454       1,603,625  

Lockheed Martin Corp.

    8,041       3,549,298  

Northrop Grumman Corp.

    4,847       2,167,675  

Raytheon Technologies Corp.

    49,465       4,900,498  
   

 

 

 
      17,576,477  
Air Freight & Logistics — 0.7%            

FedEx Corp.

    8,085       1,870,788  

United Parcel Service Inc., Class B

    23,880       5,121,305  
   

 

 

 
      6,992,093  
Automobiles — 3.3%            

Ford Motor Co.

    130,094       2,199,889  

General Motors Co.(a)

    45,336       1,982,997  

Rivian Automotive Inc., Class A(a)(b)

    4,743       238,288  

Tesla Inc.(a)

    27,505       29,639,388  
   

 

 

 
      34,060,562  
Banks — 3.8%            

Bank of America Corp.

    234,967       9,685,340  

Citigroup Inc.

    65,579       3,501,919  

JPMorgan Chase & Co.

    97,030       13,227,130  

PNC Financial Services Group Inc. (The)

    13,994       2,581,193  

Truist Financial Corp.

    43,926       2,490,604  

U.S. Bancorp

    44,223       2,350,452  

Wells Fargo & Co.

    128,431       6,223,766  
   

 

 

 
      40,060,404  
Beverages — 1.8%            

Coca-Cola Co. (The)

    128,278       7,953,236  

Constellation Brands Inc., Class A

    5,151       1,186,379  

Keurig Dr Pepper Inc.

    22,998       871,624  

Monster Beverage Corp.(a)

    12,389       989,881  

PepsiCo Inc.

    45,642       7,639,558  
   

 

 

 
      18,640,678  
Biotechnology — 2.3%            

AbbVie Inc.

    58,381       9,464,144  

Amgen Inc.

    18,491       4,471,494  

Biogen Inc.(a)

    4,878       1,027,307  

Gilead Sciences Inc.

    41,701       2,479,124  

Moderna Inc.(a)

    11,224       1,933,446  

Regeneron Pharmaceuticals Inc.(a)

    3,387       2,365,549  

Vertex Pharmaceuticals Inc.(a)

    8,416       2,196,323  
   

 

 

 
          23,937,387  
Building Products — 0.1%            

Johnson Controls International PLC

    23,233       1,523,388  
   

 

 

 
Capital Markets — 3.0%            

Bank of New York Mellon Corp. (The)

    24,388       1,210,377  

BlackRock Inc.(c)

    4,717       3,604,590  

Blackstone Inc., NVS

    23,214       2,946,785  

Charles Schwab Corp. (The)

    49,723       4,192,146  

CME Group Inc.

    11,827       2,813,170  

Goldman Sachs Group Inc. (The)

    10,828       3,574,323  

Intercontinental Exchange Inc.

    18,336       2,422,552  

Moody’s Corp.

    5,352       1,805,818  

Morgan Stanley

    43,801       3,828,208  

S&P Global Inc.

    11,429       4,687,947  
   

 

 

 
      31,085,916  

Security   Shares     Value  

Chemicals — 0.8%

   

Air Products and Chemicals Inc.

    7,291     $     1,822,094  

Dow Inc.

    24,255       1,545,528  

DuPont de Nemours Inc.

    17,002       1,251,007  

Ecolab Inc.

    8,244       1,455,561  

Sherwin-Williams Co. (The)

    7,942       1,982,482  
   

 

 

 
      8,056,672  
Commercial Services & Supplies — 0.2%  

Waste Management Inc.

    14,032       2,224,072  
   

 

 

 
Communications Equipment — 0.7%            

Cisco Systems Inc.

    139,624       7,785,434  
   

 

 

 
Consumer Finance — 0.5%            

American Express Co.

    20,409       3,816,483  

Capital One Financial Corp.

    13,612       1,787,119  
   

 

 

 
      5,603,602  
Diversified Financial Services — 2.1%  

Berkshire Hathaway Inc., Class B(a)

    60,613           21,390,934  
   

 

 

 
Diversified Telecommunication Services — 1.2%  

AT&T Inc.

    235,739       5,570,512  

Verizon Communications Inc.

    138,785       7,069,708  
   

 

 

 
      12,640,220  
Electric Utilities — 1.4%            

American Electric Power Co. Inc.

    16,517       1,647,901  

Constellation Energy Corp.

    10,729       603,506  

Duke Energy Corp.

    25,543       2,852,131  

Exelon Corp.

    32,182       1,532,829  

NextEra Energy Inc.

    64,801       5,489,293  

Southern Co. (The)

    34,859       2,527,626  
   

 

 

 
      14,653,286  
Electrical Equipment — 0.4%            

Eaton Corp. PLC

    13,125       1,991,850  

Emerson Electric Co.

    19,671       1,928,742  
   

 

 

 
      3,920,592  
Energy Equipment & Services — 0.2%  

Schlumberger NV

    46,122       1,905,300  
   

 

 

 
Entertainment — 1.6%            

Activision Blizzard Inc.

    25,464       2,039,921  

Electronic Arts Inc.

    9,257       1,171,103  

Netflix Inc.(a)

    14,272       5,346,149  

Walt Disney Co. (The)(a)

    60,000       8,229,600  
   

 

 

 
      16,786,773  
Equity Real Estate Investment Trusts (REITs) — 1.5%  

American Tower Corp.

    14,948       3,755,236  

Crown Castle International Corp.

    14,205       2,622,243  

Digital Realty Trust Inc.

    9,238       1,309,948  

Equinix Inc.

    2,964       2,198,162  

Prologis Inc.

    24,302       3,924,287  

Public Storage

    4,971       1,940,082  
   

 

 

 
      15,749,958  
Food & Staples Retailing — 1.7%            

Costco Wholesale Corp.

    14,609       8,412,593  

Sysco Corp.

    16,901       1,379,967  

Walgreens Boots Alliance Inc.

    23,629       1,057,870  

Walmart Inc.

    46,709       6,955,904  
   

 

 

 
      17,806,334  

 

24  

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


Schedule of Investments  (continued)

March 31, 2022

  

iShares® Russell Top 200 ETF

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Food Products — 0.5%

    

General Mills Inc.

    19,985      $ 1,353,384  

Kraft Heinz Co. (The)

    22,893        901,756  

Mondelez International Inc., Class A

    45,654        2,866,158  
    

 

 

 
       5,121,298  
Health Care Equipment & Supplies — 2.7%  

Abbott Laboratories

    57,396        6,793,391  

Align Technology Inc.(a)

    2,591        1,129,676  

Baxter International Inc.

    16,573        1,285,071  

Becton Dickinson and Co.

    9,436        2,509,976  

Boston Scientific Corp.(a)

    46,773        2,071,576  

Edwards Lifesciences Corp.(a)

    20,376        2,398,663  

Intuitive Surgical Inc.(a)

    11,678        3,523,019  

Medtronic PLC

    44,474        4,934,390  

Stryker Corp.

    11,501        3,074,792  
    

 

 

 
           27,720,554  
Health Care Providers & Services — 3.1%  

Anthem Inc.

    8,081        3,969,549  

Centene Corp.(a)

    19,025        1,601,715  

Cigna Corp.

    10,760        2,578,204  

CVS Health Corp.

    43,602        4,412,958  

HCA Healthcare Inc.

    8,089        2,027,265  

Humana Inc.

    4,251        1,849,908  

UnitedHealth Group Inc.

    31,087        15,853,437  
    

 

 

 
       32,293,036  
Hotels, Restaurants & Leisure — 1.4%  

Booking Holdings Inc.(a)

    1,352        3,175,104  

Las Vegas Sands Corp.(a)

    10,893        423,411  

Marriott International Inc./MD, Class A(a)

    9,014        1,584,211  

McDonald’s Corp.

    24,679        6,102,623  

Starbucks Corp.

    38,105        3,466,412  
    

 

 

 
       14,751,761  
Household Products — 1.5%             

Colgate-Palmolive Co.

    27,521        2,086,918  

Kimberly-Clark Corp.

    11,117        1,369,170  

Procter & Gamble Co. (The)

    79,528        12,151,878  
    

 

 

 
       15,607,966  
Industrial Conglomerates — 1.2%  

3M Co.

    18,878        2,810,557  

General Electric Co.

    36,121        3,305,072  

Honeywell International Inc.

    22,733        4,423,387  

Roper Technologies Inc.

    3,454        1,631,082  
    

 

 

 
       12,170,098  
Insurance — 1.6%             

Allstate Corp. (The)

    9,266        1,283,434  

American International Group Inc.

    27,437        1,722,220  

Aon PLC, Class A

    7,212        2,348,443  

Chubb Ltd.

    14,163        3,029,466  

Marsh & McLennan Companies Inc.

    16,859        2,873,111  

MetLife Inc.

    23,138        1,626,139  

Progressive Corp. (The)

    19,269        2,196,473  

Travelers Companies Inc. (The)

    7,977        1,457,637  
    

 

 

 
       16,536,923  
Interactive Media & Services — 6.7%  

Alphabet Inc., Class A(a)

    9,941        27,649,400  

Alphabet Inc., Class C, NVS(a)

    9,141        25,530,722  

Meta Platforms Inc, Class A(a)

    76,218        16,947,834  
    

 

 

 
       70,127,956  
Security   Shares      Value  

Internet & Direct Marketing Retail — 4.6%

 

Amazon.com Inc.(a)

    14,343      $     46,757,463  

eBay Inc.

    20,673        1,183,736  
    

 

 

 
       47,941,199  
IT Services — 5.0%             

Accenture PLC, Class A

    21,015        7,086,888  

Automatic Data Processing Inc.

    13,907        3,164,399  

Block Inc.(a)

    15,812        2,144,107  

Cognizant Technology Solutions Corp., Class A

    17,363        1,556,940  

Fidelity National Information Services Inc.

    20,102        2,018,643  

Fiserv Inc.(a)

    19,860        2,013,804  

Global Payments Inc.

    9,343        1,278,496  

International Business Machines Corp.

    29,475        3,832,340  

Kyndryl Holdings Inc.(a)

    7,404        97,140  

Mastercard Inc., Class A

    28,528        10,195,337  

PayPal Holdings Inc.(a)

    38,838        4,491,615  

Snowflake Inc., Class A(a)

    6,702        1,535,629  

Twilio Inc., Class A(a)

    5,481        903,324  

Visa Inc., Class A

    54,833        12,160,314  
    

 

 

 
       52,478,976  
Life Sciences Tools & Services — 1.5%  

Danaher Corp.

    20,933        6,140,277  

Illumina Inc.(a)

    4,810        1,680,614  

Thermo Fisher Scientific Inc.

    12,981        7,667,227  
    

 

 

 
       15,488,118  
Machinery — 1.0%             

Caterpillar Inc.

    17,890        3,986,250  

Deere & Co.

    9,222        3,831,372  

Illinois Tool Works Inc.

    10,361        2,169,593  
    

 

 

 
       9,987,215  
Media — 0.9%             

Charter Communications Inc., Class A(a)

    3,989        2,176,079  

Comcast Corp., Class A

    148,631        6,958,904  
    

 

 

 
       9,134,983  
Metals & Mining — 0.4%             

Freeport-McMoRan Inc.

    48,248        2,399,856  

Newmont Corp.

    26,432        2,100,022  

Southern Copper Corp.

    2,770        210,243  
    

 

 

 
       4,710,121  
Multi-Utilities — 0.4%             

Dominion Energy Inc.

    26,565        2,257,228  

Sempra Energy

    10,568        1,776,692  
    

 

 

 
       4,033,920  
Multiline Retail — 0.5%             

Dollar General Corp.

    7,704        1,715,141  

Target Corp.

    15,857        3,365,173  
    

 

 

 
       5,080,314  
Oil, Gas & Consumable Fuels — 2.9%  

Chevron Corp.

    63,929        10,409,559  

ConocoPhillips

    43,608        4,360,800  

EOG Resources Inc.

    19,237        2,293,628  

Exxon Mobil Corp.

    139,943        11,557,892  

Kinder Morgan Inc.

    64,142        1,212,925  
    

 

 

 
       29,834,804  
Personal Products — 0.2%             

Estee Lauder Companies Inc. (The), Class A

    7,545        2,054,654  
    

 

 

 
Pharmaceuticals — 4.6%             

Bristol-Myers Squibb Co.

    71,946        5,254,216  

 

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

  25


Schedule of Investments  (continued)

March 31, 2022

  

iShares® Russell Top 200 ETF

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Pharmaceuticals (continued)

    

Eli Lilly & Co.

    28,010      $ 8,021,224  

Johnson & Johnson

    87,068        15,431,062  

Merck & Co. Inc.

    83,718        6,869,062  

Pfizer Inc.

    184,478        9,550,426  

Zoetis Inc.

    15,657        2,952,753  
    

 

 

 
           48,078,743  
Road & Rail — 1.2%             

CSX Corp.

    73,040        2,735,348  

Norfolk Southern Corp.

    7,924        2,260,083  

Uber Technologies Inc.(a)

    53,211        1,898,569  

Union Pacific Corp.

    21,243        5,803,800  
    

 

 

 
       12,697,800  
Semiconductors & Semiconductor Equipment — 6.7%  

Advanced Micro Devices Inc.(a)

    53,959        5,899,877  

Analog Devices Inc.

    17,370        2,869,177  

Applied Materials Inc.

    29,362        3,869,912  

Broadcom Inc.

    13,337        8,398,042  

Intel Corp.

    133,570        6,619,729  

KLA Corp.

    5,004        1,831,764  

Lam Research Corp.

    4,647        2,498,274  

Micron Technology Inc.

    36,964        2,879,126  

NVIDIA Corp.

    79,060        21,572,312  

NXP Semiconductors NV

    8,772        1,623,522  

QUALCOMM Inc.

    37,276        5,696,518  

Texas Instruments Inc.

    30,522        5,600,176  
    

 

 

 
       69,358,429  
Software — 10.4%             

Adobe Inc.(a)

    15,565        7,091,725  

Atlassian Corp. PLC, Class A(a)

    4,607        1,353,675  

Autodesk Inc.(a)

    7,263        1,556,824  

Intuit Inc.

    8,770        4,216,967  

Microsoft Corp.

    249,047        76,783,680  

Oracle Corp.

    53,152        4,397,265  

salesforce.com Inc.(a)

    30,903        6,561,325  

ServiceNow Inc.(a)

    6,612        3,682,157  

VMware Inc., Class A

    7,358        837,855  

Workday Inc., Class A(a)

    6,297        1,507,880  

Zoom Video Communications Inc., Class A(a)

    7,183        842,063  
    

 

 

 
       108,831,416  
Specialty Retail — 1.7%         

Home Depot Inc. (The)

    34,512        10,330,477  

Lowe’s Companies Inc.

    22,244        4,497,515  
Security   Shares      Value  

Specialty Retail (continued)

    

Ross Stores Inc.

    11,544      $ 1,044,270  

TJX Companies Inc. (The)

    39,397        2,386,670  
    

 

 

 
       18,258,932  
Technology Hardware, Storage & Peripherals — 8.6%  

Apple Inc.

    510,087        89,066,291  

Dell Technologies Inc., Class C(a)

    8,884        445,888  
    

 

 

 
       89,512,179  
Textiles, Apparel & Luxury Goods — 0.5%         

Nike Inc., Class B

    40,887        5,501,755  
    

 

 

 
Tobacco — 0.8%             

Altria Group Inc.

    60,425        3,157,206  

Philip Morris International Inc.

    51,358        4,824,571  
    

 

 

 
       7,981,777  
Wireless Telecommunication Services — 0.2%  

T-Mobile U.S. Inc.(a)

    19,419        2,492,429  
    

 

 

 

Total Common Stocks — 99.8%
(Cost: $826,317,695)

 

     1,040,187,438  
    

 

 

 

Short-Term Investments

    
Money Market Funds — 0.2%         

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.34%(c)(d)(e)

    249,953        249,903  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.25%(c)(d)

    1,385,000        1,385,000  
    

 

 

 
       1,634,903  
    

 

 

 

Total Short-Term Investments — 0.2%
(Cost: $1,634,938)

 

     1,634,903  
    

 

 

 

Total Investments in Securities — 100.0%
(Cost: $827,952,633)

 

     1,041,822,341  

Other Assets, Less Liabilities — 0.0%

 

     266,887  
    

 

 

 

Net Assets — 100.0%

     $   1,042,089,228  
    

 

 

 

 

(a) 

Non-income producing security.

 

(b) 

All or a portion of this security is on loan.

 

(c) 

Affiliate of the Fund.

 

(d) 

Annualized 7-day yield as of period end.

 

(e) 

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

 

26  

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


Schedule of Investments  (continued)

March 31, 2022

  

iShares® Russell Top 200 ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
03/31/21
   

Purchases

at Cost

    Proceeds
from Sales
    Net Realized
Gain (Loss)
   

Change in
Unrealized
Appreciation

(Depreciation)

    Value at
03/31/22
   

Shares

Held at
03/31/22

    Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 379,310     $     $ (127,019 )(a)    $ (2,353)     $ (35)     $ 249,903       249,953     $ 4,873 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    1,115,000       270,000 (a)                        1,385,000       1,385,000       377         

BlackRock Inc.

    3,510,438       1,119,975       (1,069,431)       408,450       (364,842)       3,604,590       4,717       78,710         
       

 

 

   

 

 

   

 

 

     

 

 

    

 

 

 
        $ 406,097     $ (364,877   $ 5,239,493       $ 83,960      $         —  
       

 

 

   

 

 

   

 

 

     

 

 

    

 

 

 

 

  (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

           

S&P 500 E-Mini Index

     8        06/17/22      $ 1,812      $ 98,524  
           

 

 

 

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:

 

 

 
     Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 98,524  
  

 

 

 

 

  (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 March 31, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 195,578  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 84,855  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 1,664,789      

 

 

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

 

 

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

  27


Schedule of Investments  (continued)

March 31, 2022

  

iShares® Russell Top 200 ETF

 

Fair Value Hierarchy as of Period End

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

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

 

 

 
    

Level 1

 

      

Level 2

 

      

Level 3

 

      

Total

 

 

 

 

Investments

                 

Assets

                 

Common Stocks

   $ 1,040,187,438        $        $        $ 1,040,187,438  

Money Market Funds

     1,634,903                            1,634,903  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $

 

1,041,822,341

 

 

 

     $

 

            —

 

 

 

     $

 

            —

 

 

 

     $

 

1,041,822,341

 

 

 

  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $

 

98,524

 

 

 

     $

 

 

 

 

     $

 

 

 

 

     $

 

98,524

 

 

 

  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

28  

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


Schedule of Investments  

March 31, 2022

  

iShares® Russell Top 200 Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Aerospace & Defense — 0.6%

   

Lockheed Martin Corp.

    57,060     $ 25,186,284  

Northrop Grumman Corp.

    3,314       1,482,087  
   

 

 

 
      26,668,371  
Air Freight & Logistics — 1.0%            

FedEx Corp.

    28,623       6,623,076  

United Parcel Service Inc., Class B

    194,680       41,751,073  
   

 

 

 
      48,374,149  
Automobiles — 5.0%            

Rivian Automotive Inc., Class A(a)(b)

    9,554       479,993  

Tesla Inc.(a)

    223,622       240,975,067  
   

 

 

 
          241,455,060  
Beverages — 2.2%            

Coca-Cola Co. (The)

    735,809       45,620,158  

Monster Beverage Corp.(a)

    92,472       7,388,513  

PepsiCo Inc.

    307,899       51,536,134  
   

 

 

 
      104,544,805  
Biotechnology — 2.7%            

AbbVie Inc.

    474,672       76,949,078  

Amgen Inc.

    123,573       29,882,423  

Moderna Inc.(a)

    91,090       15,691,163  

Regeneron Pharmaceuticals Inc.(a)

    2,903       2,027,513  

Vertex Pharmaceuticals Inc.(a)

    27,338       7,134,398  
   

 

 

 
      131,684,575  
Capital Markets — 1.2%            

Blackstone Inc., NVS

    188,496       23,927,682  

Goldman Sachs Group Inc. (The)

    5,427       1,791,452  

Moody’s Corp.

    41,292       13,932,334  

S&P Global Inc.

    45,860       18,810,855  
   

 

 

 
      58,462,323  
Chemicals — 0.6%            

Dow Inc.

    14,469       921,965  

Ecolab Inc.

    59,077       10,430,635  

Sherwin-Williams Co. (The)

    64,646       16,136,934  
   

 

 

 
      27,489,534  
Commercial Services & Supplies — 0.1%            

Waste Management Inc.

    18,050       2,860,925  
   

 

 

 
Consumer Finance — 0.4%            

American Express Co.

    105,396       19,709,052  
   

 

 

 
Entertainment — 1.0%            

Netflix Inc.(a)

    115,940       43,429,965  

Walt Disney Co. (The)(a)

    24,875       3,411,855  
   

 

 

 
      46,841,820  
Equity Real Estate Investment Trusts (REITs) — 1.6%  

American Tower Corp.

    121,031       30,405,408  

Crown Castle International Corp.

    115,896       21,394,402  

Equinix Inc.

    16,975       12,588,999  

Public Storage

    30,921       12,067,848  
   

 

 

 
      76,456,657  
Food & Staples Retailing — 1.6%            

Costco Wholesale Corp.

    111,032       63,937,777  

Sysco Corp.

    137,427       11,220,915  
   

 

 

 
      75,158,692  
Health Care Equipment & Supplies — 2.0%            

Abbott Laboratories

    232,869       27,562,375  
Security   Shares     Value  

Health Care Equipment & Supplies (continued)

 

Align Technology Inc.(a)

    21,150     $ 9,221,400  

Edwards Lifesciences Corp.(a)

    166,205       19,565,653  

Intuitive Surgical Inc.(a)

    94,980       28,653,566  

Stryker Corp.

    39,994       10,692,396  
   

 

 

 
      95,695,390  
Health Care Providers & Services — 0.5%            

HCA Healthcare Inc.

    65,813       16,494,054  

UnitedHealth Group Inc.

    17,461       8,904,586  
   

 

 

 
      25,398,640  
Hotels, Restaurants & Leisure — 1.6%            

Booking Holdings Inc.(a)

    10,987       25,802,420  

Las Vegas Sands Corp.(a)

    88,727       3,448,819  

Marriott International Inc./MD, Class A(a)

    72,981       12,826,411  

McDonald’s Corp.

    35,723       8,833,583  

Starbucks Corp.

    309,468       28,152,304  
   

 

 

 
      79,063,537  
Household Products — 0.3%            

Colgate-Palmolive Co.

    118,767       9,006,102  

Kimberly-Clark Corp.

    45,525       5,606,859  
   

 

 

 
      14,612,961  
Industrial Conglomerates — 0.2%            

3M Co.

    22,014       3,277,445  

Honeywell International Inc.

    39,797       7,743,700  
   

 

 

 
      11,021,145  
Insurance — 0.3%            

Aon PLC, Class A

    34,608       11,269,403  

Marsh & McLennan Companies Inc.

    16,051       2,735,411  
   

 

 

 
      14,004,814  
Interactive Media & Services — 10.6%            

Alphabet Inc., Class A(a)

    69,573       193,506,864  

Alphabet Inc., Class C, NVS(a)

    63,991       178,726,223  

Meta Platforms Inc, Class A(a)

    619,676       137,791,155  
   

 

 

 
          510,024,242  
Internet & Direct Marketing Retail — 8.1%            

Amazon.com Inc.(a)

    116,619       380,172,109  

eBay Inc.

    168,283       9,635,885  
   

 

 

 
      389,807,994  
IT Services — 6.7%            

Accenture PLC, Class A

    137,257       46,287,178  

Automatic Data Processing Inc.

    103,902       23,641,861  

Block Inc.(a)(b)

    128,977       17,489,281  

Fiserv Inc.(a)(b)

    10,923       1,107,592  

Mastercard Inc., Class A

    231,929       82,886,786  

PayPal Holdings Inc.(a)

    316,105       36,557,544  

Snowflake Inc., Class A(a)

    51,194       11,730,081  

Twilio Inc., Class A(a)

    12,584       2,073,969  

Visa Inc., Class A

    445,808       98,866,840  
   

 

 

 
      320,641,132  
Life Sciences Tools & Services — 0.5%            

Danaher Corp.

    8,893       2,608,584  

Illumina Inc.(a)

    39,021       13,633,937  

Thermo Fisher Scientific Inc.

    9,530       5,628,895  
   

 

 

 
      21,871,416  
Machinery — 1.6%            

Caterpillar Inc.

    125,464       27,955,888  

Deere & Co.

    75,007       31,162,408  

 

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

  29


Schedule of Investments  (continued)

March 31, 2022

  

iShares® Russell Top 200 Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Machinery (continued)

   

Illinois Tool Works Inc.

    75,904     $ 15,894,298  
   

 

 

 
      75,012,594  
Media — 0.3%            

Charter Communications Inc., Class A(a)

    30,658       16,724,552  
   

 

 

 
Metals & Mining — 0.1%            

Freeport-McMoRan Inc.

    115,041       5,722,139  

Southern Copper Corp.

    20,604       1,563,844  
   

 

 

 
      7,285,983  
Multiline Retail — 0.4%            

Dollar General Corp.

    26,964       6,002,995  

Target Corp.

    57,698       12,244,670  
   

 

 

 
      18,247,665  
Oil, Gas & Consumable Fuels — 0.0%            

EOG Resources Inc.

    18,662       2,225,070  
   

 

 

 
Personal Products — 0.3%            

Estee Lauder Companies Inc. (The), Class A

    61,584       16,770,555  
   

 

 

 
Pharmaceuticals — 1.5%            

Eli Lilly & Co.

    179,805       51,490,758  

Zoetis Inc.

    121,067       22,832,025  
   

 

 

 
      74,322,783  
Road & Rail — 0.9%            

Uber Technologies Inc.(a)

    369,576       13,186,472  

Union Pacific Corp.

    108,935       29,762,131  
   

 

 

 
      42,948,603  
Semiconductors & Semiconductor Equipment — 9.3%  

Advanced Micro Devices Inc.(a)

    438,646       47,961,554  

Analog Devices Inc.

    56,171       9,278,326  

Applied Materials Inc.

    238,442       31,426,656  

Broadcom Inc.

    108,425       68,273,054  

KLA Corp.

    40,792       14,932,319  

Lam Research Corp.

    37,834       20,339,937  

Micron Technology Inc.

    41,490       3,231,656  

NVIDIA Corp.

    642,773       175,387,041  

NXP Semiconductors NV

    21,850       4,043,998  

QUALCOMM Inc.

    302,850       46,281,537  

Texas Instruments Inc.

    153,559       28,175,005  
   

 

 

 
          449,331,083  
Software — 17.3%            

Adobe Inc.(a)

    126,542       57,655,066  

Atlassian Corp. PLC, Class A(a)

    37,477       11,011,867  

Autodesk Inc.(a)

    58,872       12,619,213  

Intuit Inc.

    71,398       34,331,014  

Microsoft Corp.

    2,024,835       624,276,879  

Oracle Corp.

    404,223       33,441,369  
Security   Shares     Value  

Software (continued)

   

salesforce.com Inc.(a)

    48,292     $ 10,253,358  

ServiceNow Inc.(a)

    53,691       29,899,981  

VMware Inc., Class A

    22,228       2,531,102  

Workday Inc., Class A(a)

    51,563       12,347,276  

Zoom Video Communications Inc., Class A(a)

    58,480       6,855,610  
   

 

 

 
      835,222,735  
Specialty Retail — 3.1%            

Home Depot Inc. (The)

    280,603       83,992,896  

Lowe’s Companies Inc.

    180,970       36,590,324  

Ross Stores Inc.

    94,015       8,504,597  

TJX Companies Inc. (The)

    320,862       19,437,820  
   

 

 

 
      148,525,637  
Technology Hardware, Storage & Peripherals — 15.1%  

Apple Inc.

    4,147,182       724,139,449  

Dell Technologies Inc., Class C(a)

    34,793       1,746,261  
   

 

 

 
      725,885,710  
Textiles, Apparel & Luxury Goods — 0.9%            

Nike Inc., Class B

    332,568       44,750,350  
   

 

 

 
Tobacco — 0.3%            

Altria Group Inc.

    272,836       14,255,681  
   

 

 

 

Total Common Stocks — 99.9%
(Cost: $3,486,157,968)

      4,813,356,235  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 0.3%

   

BlackRock Cash Funds: Institutional,
SL Agency Shares,
0.34%(c)(d)(e)

    8,928,316       8,926,531  

BlackRock Cash Funds: Treasury,
SL Agency Shares,
0.25%(c)(d)

    6,166,000       6,166,000  
   

 

 

 
          15,092,531  
   

 

 

 

Total Short-Term Investments — 0.3%
(Cost: $15,091,337)

 

    15,092,531  
   

 

 

 

Total Investments in Securities — 100.2%
(Cost: $3,501,249,305)

 

    4,828,448,766  

Other Assets, Less Liabilities — (0.2)%

      (8,076,784
   

 

 

 

Net Assets — 100.0%

 

    $

 

  4,820,371,982

 

 

 

   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

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

 

30  

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


Schedule of Investments  (continued)

March 31, 2022

  

iShares® Russell Top 200 Growth ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

Affiliated Issuer

 

  

Value at

03/31/21

 

    

Purchases
at Cost

 

    

Proceeds
from Sales

 

    

Net Realized
Gain (Loss)

 

 

    

Change in
Unrealized
Appreciation
(Depreciation)

 

    

Value at
03/31/22

 

    

Shares
Held at
03/31/22

 

    

Income

 

    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 10,766,773      $      $ (1,841,643 )(a)     $ 207      $ 1,194      $ 8,926,531        8,928,316      $ 26,293 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     4,416,000        1,750,000 (a)                            6,166,000        6,166,000        1,434         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $

 

207

 

 

 

   $

 

1,194

 

 

 

   $

 

15,092,531

 

 

 

      $

 

27,727

 

 

 

   $

 

 

 

 

           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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

              

E-Mini Technology Select Sector Index

     7          06/17/22        $ 1,122     $ 90,493  

Nasdaq 100 E-Mini Index

     16          06/17/22          4,758       411,643  
              

 

 

 
               $

 

502,136

 

 

 

              

 

 

 

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:

 

 

 
    

Equity
Contracts

 

 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

 

   $

 

502,136

 

 

 

  

 

 

 

 

  (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 March 31, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Equity
Contracts

 

 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

 

   $

 

269,740

 

 

 

  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

 

   $

 

454,262

 

 

 

  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

 

   $

 

5,320,912

 

 

 

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

 

 

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

  31


Schedule of Investments  (continued)

March 31, 2022

  

iShares® Russell Top 200 Growth ETF

 

Fair Value Hierarchy as of Period End

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

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

 

 

 
    

Level 1

 

      

Level 2

 

      

Level 3

 

      

Total

 

 

 

 

Investments

                 

Assets

                 

Common Stocks

   $ 4,813,356,235        $        $        $ 4,813,356,235  

Money Market Funds

     15,092,531                            15,092,531  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $

 

4,828,448,766

 

 

 

     $

 

            —

 

 

 

     $

 

            —

 

 

 

     $

 

4,828,448,766

 

 

 

  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

 

   $

 

502,136

 

 

 

     $

 

 

 

 

     $

 

 

 

 

     $

 

502,136

 

 

 

  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

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

 

See notes to financial statements.

 

 

32  

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


Schedule of Investments

March 31, 2022

  

iShares® Russell Top 200 Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Aerospace & Defense — 3.2%

   

Boeing Co. (The)(a)

    50,732     $ 9,715,178  

General Dynamics Corp.

    23,605       5,693,054  

L3Harris Technologies Inc.

    18,511       4,599,428  

Lockheed Martin Corp.

    2,909       1,284,033  

Northrop Grumman Corp.

    12,648       5,656,438  

Raytheon Technologies Corp.

    141,815       14,049,612  
   

 

 

 
          40,997,743  
Air Freight & Logistics — 0.2%            

FedEx Corp.

    13,065       3,023,110  
   

 

 

 
Automobiles — 1.0%            

Ford Motor Co.

    370,617       6,267,133  

General Motors Co.(a)

    130,225       5,696,042  

Rivian Automotive Inc., Class A(a)(b)

    10,736       539,377  
   

 

 

 
      12,502,552  
Banks — 8.9%            

Bank of America Corp.

    673,642       27,767,523  

Citigroup Inc.

    187,959       10,037,011  

JPMorgan Chase & Co.

    278,179       37,921,361  

PNC Financial Services Group Inc. (The)

    40,192       7,413,415  

Truist Financial Corp.

    125,612       7,122,200  

U.S. Bancorp

    127,147       6,757,863  

Wells Fargo & Co.

    368,410       17,853,149  
   

 

 

 
      114,872,522  
Beverages — 1.3%            

Coca-Cola Co. (The)

    108,141       6,704,742  

Constellation Brands Inc., Class A

    14,767       3,401,135  

Keurig Dr Pepper Inc.

    66,262       2,511,330  

Monster Beverage Corp.(a)

    2,512       200,709  

PepsiCo Inc.

    22,295       3,731,737  
   

 

 

 
      16,549,653  
Biotechnology — 1.7%            

Amgen Inc.

    9,393       2,271,415  

Biogen Inc.(a)

    13,813       2,909,018  

Gilead Sciences Inc.

    118,927       7,070,210  

Regeneron Pharmaceuticals Inc.(a)

    8,637       6,032,254  

Vertex Pharmaceuticals Inc.(a)

    14,450       3,771,016  
   

 

 

 
      22,053,913  
Building Products — 0.3%            

Johnson Controls International PLC

    66,316       4,348,340  
   

 

 

 
Capital Markets — 5.3%            

Bank of New York Mellon Corp. (The)

    70,023       3,475,242  

BlackRock Inc.(c)

    13,544       10,349,918  

Charles Schwab Corp. (The)

    142,484       12,012,826  

CME Group Inc.

    33,957       8,077,012  

Goldman Sachs Group Inc. (The)

    29,150       9,622,415  

Intercontinental Exchange Inc.

    52,666       6,958,232  

Moody’s Corp.

    788