LOGO

  FEBRUARY 28, 2022

 

 

   

  

2022 Semi-Annual Report

(Unaudited)

 

 

iShares, Inc.

·  iShares MSCI Hong Kong ETF | EWH | NYSE Arca

·  iShares MSCI Japan Small-Cap ETF | SCJ | NYSE Arca

·  iShares MSCI Malaysia ETF | EWM | NYSE Arca

·  iShares MSCI Pacific ex Japan ETF | EPP | NYSE Arca

·  iShares MSCI Singapore ETF | EWS | NYSE Arca

·  iShares MSCI Taiwan ETF | EWT | NYSE Arca

·  iShares MSCI Thailand ETF | THD | NYSE Arca


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of February 28, 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 solid 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. In the corporate bond market, the improving economy assuaged credit concerns and led to modest returns for high-yield corporate bonds, outpacing the negative return of investment-grade corporate bonds.

The U.S. Federal Reserve (the “Fed”) maintained accommodative monetary policy during the reporting period by keeping near-zero interest rates. However, the Fed’s tone shifted during the period, as it reduced its bond-buying program and raised the prospect of higher rates in 2022. Continued high inflation and the Fed’s new stance led many analysts to anticipate that the Fed will 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. Sanctions on Russia and general wartime disruption are likely to drive already-high commodity prices even further upwards, and we have already seen spikes in energy and metal markets. While this will exacerbate inflationary pressure, it could also constrain economic growth, making the Fed’s way forward less clear. Its challenge will be combating inflation without stifling a recovery that is now facing additional supply shocks.

In this environment, we favor an overweight to equities, as we believe low interest rates and continued economic growth will support further gains, albeit likely more modest than what we saw in 2021. 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. U.S. and other developed market equities have room for further growth, while we believe Chinese equities stand to gain from a more accommodative monetary and fiscal environment. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

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 February 28, 2022
     
     6-Month  
  12-Month
   

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

  (2.62)%   16.39%
   

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

  (9.46)     (6.01) 
   

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

  (6.78)     2.83  
   

Emerging market equities (MSCI Emerging Markets Index)

  (9.81)     (10.69) 
   

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

  0.02      0.04  
   

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

  (3.94)     (1.67) 
   

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

  (4.07)     (2.64) 
   

Tax-exempt municipal bonds (Bloomberg Municipal Bond Index)

  (3.09)     (0.66) 
   

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

  (3.07)     0.64  
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   P A G E   I S   N O T   P A R T   O F   Y O U R  U N D  E P O R T


Table of Contents

 

      Page

The Markets in Review

   2

Fund Summary

   4

About Fund Performance

   11

Shareholder Expenses

   11

Schedules of Investments

   12

Financial Statements

  

Statements of Assets and Liabilities

   40

Statements of Operations

   42

Statements of Changes in Net Assets

   44

Financial Highlights

   48

Notes to Financial Statements

   55

Statement Regarding Liquidity Risk Management Program

   64

Supplemental Information

   65

General Information

   66

Glossary of Terms Used in this Report

   67

 

 

 

    


Fund Summary as of February 28, 2022    iShares® MSCI Hong Kong ETF

 

Investment Objective

The iShares MSCI Hong Kong ETF (the “Fund”) seeks to track the investment results of an index composed of Hong Kong equities, as represented by the MSCI Hong Kong 25/50 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  
     6 Months      1 Year      5 Years      10 Years            1 Year      5 Years      10 Years  

Fund NAV

    (10.83 )%       (11.66 )%       4.21      5.34       (11.66 )%       22.91      68.28

Fund Market

    (11.00      (11.59      4.10        5.36         (11.59      22.22        68.56  

Index

    (10.78      (11.36      4.72        5.89               (11.36      25.92        77.31  

Index performance through August 31, 2020 reflects the performance of the MSCI Hong Kong Index. Index performance beginning on September 1, 2020 reflects the performance of the MSCI Hong Kong 25/50 Index.

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 11 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

    Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      891.70          $        2.30               $      1,000.00          $      1,022.40          $        2.46          0.49

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    41.7

Real Estate

    21.2  

Industrials

    16.1  

Utilities

    11.3  

Consumer Discretionary

    5.7  

Consumer Staples

    2.7  

Communication Services

    1.3  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

AIA Group Ltd.

    22.3

Hong Kong Exchanges & Clearing Ltd.

    12.6  

Techtronic Industries Co. Ltd.

    4.7  

CK Hutchison Holdings Ltd.

    4.1  

Hong Kong & China Gas Co. Ltd.

    3.8  

CLP Holdings Ltd.

    3.8  

Link REIT

    3.7  

Sun Hung Kai Properties Ltd.

    3.4  

Hang Seng Bank Ltd.

    3.2  

BOC Hong Kong Holdings Ltd.

    3.0  

 

  (a) 

Excludes money market funds.

 

 

 

4  

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Fund Summary as of February 28, 2022    iShares® MSCI Japan Small-Cap ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

    (9.75 )%       (5.50 )%       4.04      7.05       (5.50 )%       21.92      97.58

Fund Market

    (9.20      (5.90      4.22        7.14         (5.90      22.97        99.27  

Index

    (10.36      (5.75      4.24        7.33               (5.75      23.07        102.95  

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 11 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

    Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      902.50          $        2.31               $      1,000.00          $      1,022.40          $        2.46          0.49

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Industrials

    25.2

Consumer Discretionary

    15.5  

Information Technology

    11.6  

Real Estate

    10.7  

Materials

    10.4  

Consumer Staples

    8.6  

Financials

    6.9  

Health Care

    5.5  

Utilities

    2.5  

Communication Services

    2.4  

Energy

    0.7  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

BayCurrent Consulting Inc.

    0.7

Ebara Corp.

    0.7  

Taiyo Yuden Co. Ltd.

    0.6  

MatsukiyoCocokara & Co.

    0.5  

Sojitz Corp.

    0.5  

SCREEN Holdings Co. Ltd.

    0.5  

Advance Residence Investment Corp.

    0.5  

Food & Life Companies Ltd.

    0.5  

Nagoya Railroad Co. Ltd.

    0.4  

Tokyu Fudosan Holdings Corp.

    0.4  

 

  (a) 

Excludes money market funds.

 

 

 

U N D   S U M M A R Y

  5


Fund Summary as of February 28, 2022    iShares® MSCI Malaysia ETF

 

Investment Objective

The iShares MSCI Malaysia ETF (the “Fund”) seeks to track the investment results of an index composed of Malaysian equities, as represented by the MSCI Malaysia 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  
     6 Months      1 Year      5 Years      10 Years            1 Year      5 Years      10 Years  

Fund NAV

    (0.37 )%       (0.80 )%       1.35      (1.53 )%        (0.80 )%       6.92      (14.30 )% 

Fund Market

    0.91        1.57        1.60        (1.43       1.57        8.24        (13.39

Index

    (0.28      (0.75      1.64        (1.24             (0.75      8.47        (11.75

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 11 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

    Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      996.30          $      2.47               $      1,000.00          $      1,022.30          $      2.51          0.50

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    38.4

Consumer Staples

    13.0  

Materials

    9.7  

Communication Services

    8.3  

Utilities

    7.5  

Industrials

    6.7  

Health Care

    6.5  

Consumer Discretionary

    4.0  

Energy

    3.8  

Information Technology

    2.1  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Public Bank Bhd

    13.9

Malayan Banking Bhd

    8.9  

CIMB Group Holdings Bhd

    8.2  

Petronas Chemicals Group Bhd

    4.9  

Press Metal Aluminium Holdings Bhd

    4.7  

Tenaga Nasional Bhd

    4.5  

Petronas Gas Bhd

    3.0  

Hong Leong Bank Bhd

    2.8  

DiGi.Com Bhd

    2.7  

IOI Corp. Bhd

    2.5  
  (a) 

Excludes money market funds.

 

 

 

6  

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Fund Summary as of February 28, 2022    iShares® MSCI Pacific ex Japan ETF

 

Investment Objective

The iShares MSCI Pacific ex Japan ETF (the “Fund”) seeks to track the investment results of an index composed of Pacific region developed market equities, excluding Japan, as represented by the MSCI Pacific ex Japan 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  
     6 Months      1 Year      5 Years      10 Years            1 Year      5 Years      10 Years  

Fund NAV

    (6.05 )%       (1.92 )%       5.49      4.62       (1.92 )%       30.65      57.07

Fund Market

    (5.73      (1.54      5.53        4.76         (1.54      30.89        59.14  

Index

    (6.53      (1.93      5.84        5.01               (1.93      32.80        63.11  

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 11 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

    Annualized

Expense

Ratio

 

 

 

  $      1,000.00          $      939.50          $      2.26               $      1,000.00          $      1,022.50          $      2.36          0.47

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    36.8

Materials

    15.8  

Real Estate

    10.5  

Industrials

    7.9  

Health Care

    7.0  

Consumer Discretionary

    5.4  

Communication Services

    5.0  

Consumer Staples

    4.1  

Utilities

    3.7  

Energy

    2.4  

Information Technology

    1.4  

GEOGRAPHIC ALLOCATION

 

   

Country/Geographic Region

   
Percent of
Total Investments
 
(a) 

Australia

    60.6

Hong Kong

    23.2  

Singapore

    12.0  

New Zealand

    2.2  

Cayman Islands

    1.3  

Ireland

    0.7  

Malta

    0.0  
  (a)

Excludes money market funds.

 

 

 

U N D   S U M M A R Y

  7


Fund Summary as of February 28, 2022    iShares® MSCI Singapore ETF

 

Investment Objective

The iShares MSCI Singapore ETF (the “Fund”) seeks to track the investment results of an index composed of Singaporean equities, as represented by the MSCI Singapore 25/50 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  
     6 Months     1 Year      5 Years      10 Years            1 Year      5 Years      10 Years  

Fund NAV

    (4.70 )%(a)      (0.15 )%       2.98      1.86       (0.15 )%       15.81      20.29

Fund Market

    (4.80     0.81        3.00        1.93         0.81        15.92        21.11  

Index

    (5.54     (0.46      3.33        2.24               (0.46      17.77        24.84  

 

  (a) 

The NAV total return presented in the table for the six-months period differs from the same period return disclosed in the financial highlights. The total return in the financial highlights is calculated in the same manner but differs due to certain adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

 

Index performance through November 30, 2016 reflects the performance of the MSCI Singapore Index. Index performance beginning on December 1, 2016 reflects the performance of the MSCI Singapore 25/50 Index.

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 11 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

    Annualized

Expense

Ratio

 

 

 

  $      1,000.00          $      953.00          $      2.37               $      1,000.00          $      1,022.40          $      2.46          0.49

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    35.5

Communication Services

    21.4  

Real Estate

    19.4  

Industrials

    14.1  

Consumer Staples

    3.9  

Information Technology

    2.9  

Consumer Discretionary

    2.8  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

DBS Group Holdings Ltd.

    17.2

Sea Ltd.

    16.7  

Oversea-Chinese Banking Corp. Ltd.

    10.5  

Singapore Telecommunications Ltd.

    4.7  

United Overseas Bank Ltd.

    4.3  

Ascendas Real Estate Investment Trust

    4.3  

Keppel Corp. Ltd.

    4.1  

Wilmar International Ltd.

    3.9  

Singapore Exchange Ltd.

    3.5  

Singapore Airlines Ltd.

    3.5  
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of February 28, 2022    iShares® MSCI Taiwan ETF

 

Investment Objective

The iShares MSCI Taiwan ETF (the “Fund”) seeks to track the investment results of an index composed of Taiwanese equities, as represented by the MSCI Taiwan 25/50 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  
     6 Months      1 Year      5 Years      10 Years            1 Year      5 Years      10 Years  

Fund NAV

    1.57      12.93      17.48      11.50       12.93      123.80      196.99

Fund Market

    1.11        12.37        17.58        11.57         12.37        124.78        198.91  

Index

    0.52        12.64        17.89        12.04               12.64        127.75        211.61  

Index performance through November 30, 2016 reflects the performance of the MSCI Taiwan Index. Index performance beginning on December 1, 2016 reflects the performance of the MSCI Taiwan 25/50 Index.

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 11 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

    Annualized
Expense
Ratio
 
 
 
  $        1,000.00          $      1,015.70          $      2.90               $      1,000.00          $      1,021.90          $      2.91          0.58

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Information Technology

    58.8

Financials

    18.9  

Materials

    7.1  

Industrials

    4.9  

Consumer Discretionary

    3.8  

Communication Services

    2.9  

Consumer Staples

    1.8  

Other (each representing less than 1%)

    1.8  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Taiwan Semiconductor Manufacturing Co. Ltd.

    21.7

MediaTek Inc.

    5.3  

Hon Hai Precision Industry Co. Ltd.

    4.1  

United Microelectronics Corp.

    2.1  

Fubon Financial Holding Co. Ltd.

    2.0  

Cathay Financial Holding Co. Ltd.

    1.8  

CTBC Financial Holding Co. Ltd.

    1.7  

Delta Electronics Inc.

    1.7  

Chunghwa Telecom Co. Ltd.

    1.6  

Nan Ya Plastics Corp.

    1.6  
  (a) 

Excludes money market funds.

 

 

 

U N D   S U M M A R Y

  9


Fund Summary as of February 28, 2022    iShares® MSCI Thailand ETF

 

Investment Objective

The iShares MSCI Thailand ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Thai equities, as represented by the MSCI Thailand IMI 25/50 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  
     6 Months      1 Year      5 Years      10 Years            1 Year      5 Years      10 Years  

Fund NAV

    0.84      4.84      3.70      3.56       4.84      19.92      41.82

Fund Market

    2.06        5.82        3.92        3.70         5.82        21.17        43.76  

Index

    0.42        2.40        3.88        3.72               2.40        20.97        44.15  

Index performance through February 11, 2013 reflects the performance of the MSCI Thailand Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Thailand IMI 25/50 Index.

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 11 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

    Annualized

Expense

Ratio

 

 

 

  $      1,000.00          $      1,008.40          $      2.84               $      1,000.00          $      1,022.00          $      2.86          0.57

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Energy

    13.9

Consumer Staples

    12.1  

Materials

    11.2  

Utilities

    9.8  

Financials

    9.2  

Industrials

    9.1  

Consumer Discretionary

    8.7  

Communication Services

    8.6  

Health Care

    6.9  

Real Estate

    6.4  

Information Technology

    4.1  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

CP ALL PCL

    6.8

PTT PCL

    6.7  

Siam Cement PCL (The)

    5.2  

Airports of Thailand PCL

    4.7  

Advanced Info Service PCL

    4.6  

Bangkok Dusit Medical Services PCL

    3.8  

PTT Exploration & Production PCL

    3.2  

Gulf Energy Development PCL

    2.5  

Energy Absolute PCL

    2.4  

Delta Electronics Thailand PCL

    2.2  
  (a) 

Excludes money market funds.

 

 

 

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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.

 

 

B O U T   F U N D  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

  11


Schedule of Investments (unaudited) 

February 28, 2022

  

iShares® MSCI Hong Kong ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Banks — 6.2%            

BOC Hong Kong Holdings Ltd.

    7,245,000     $ 26,046,238  

Hang Seng Bank Ltd.

    1,474,600       27,193,229  
   

 

 

 
      53,239,467  
Beverages — 1.3%            

Budweiser Brewing Co. APAC Ltd.(a)

    3,585,900       11,130,524  
   

 

 

 
Building Products — 1.2%            

Xinyi Glass Holdings Ltd.

    3,907,000       10,407,235  
   

 

 

 
Capital Markets — 13.2%            

Futu Holdings Ltd., ADR(b)(c)

    108,967       4,658,339  

Hong Kong Exchanges & Clearing Ltd.

    2,220,426       107,594,413  
   

 

 

 
      112,252,752  
Diversified Telecommunication Services — 1.3%  

HKT Trust & HKT Ltd., Class SS

    8,070,500       10,885,147  
   

 

 

 
Electric Utilities — 7.5%            

CK Infrastructure Holdings Ltd.

    1,318,500       8,185,249  

CLP Holdings Ltd.

    3,150,700       32,097,089  

HK Electric Investments & HK Electric Investments Ltd., Class SS

    6,418,000       6,332,094  

Power Assets Holdings Ltd.

    2,790,000       17,584,049  
   

 

 

 
      64,198,481  
Equity Real Estate Investment Trusts (REITs) — 3.7%  

Link REIT

    3,934,800       31,796,326  
   

 

 

 
Food Products — 1.4%  

WH Group Ltd.(a)

    16,853,000       11,769,724  
   

 

 

 
Gas Utilities — 3.8%  

Hong Kong & China Gas Co. Ltd.

    21,453,495       32,442,969  
   

 

 

 
Hotels, Restaurants & Leisure — 4.7%  

Galaxy Entertainment Group Ltd.(b)

    4,138,000       23,078,580  

Melco Resorts & Entertainment Ltd., ADR(b)

    477,838       4,787,937  

Sands China Ltd.(b)

    4,788,400       12,629,314  
   

 

 

 
      40,495,831  
Industrial Conglomerates — 7.0%            

CK Hutchison Holdings Ltd.

    4,989,767       34,983,571  

Jardine Matheson Holdings Ltd.

    420,400       25,013,800  
   

 

 

 
      59,997,371  
Insurance — 22.3%            

AIA Group Ltd.

    18,301,400       190,038,896  
   

 

 

 
Machinery — 4.7%  

Techtronic Industries Co. Ltd.

    2,375,147       39,798,095  
   

 

 

 
Marine — 1.3%  

SITC International Holdings Co. Ltd.

    2,630,000       10,843,903  
   

 

 

 
Security   Shares     Value  
Real Estate Management & Development — 17.5%  

CK Asset Holdings Ltd.

    3,918,767     $ 24,751,103  

ESR Cayman Ltd.(a)(b)

    3,818,200       11,779,246  

Hang Lung Properties Ltd.

    4,247,000       8,902,037  

Henderson Land Development Co. Ltd.

    3,000,762       12,475,784  

Hongkong Land Holdings Ltd.

    2,401,000       13,002,368  

New World Development Co. Ltd.

    3,115,266       12,459,945  

Sino Land Co. Ltd.

    6,836,000       8,628,391  

Sun Hung Kai Properties Ltd.

    2,496,500       29,023,761  

Swire Pacific Ltd., Class A

    1,127,500       6,230,805  

Swire Properties Ltd.

    2,655,000       6,904,374  

Wharf Real Estate Investment Co. Ltd.

    3,335,150       14,972,438  
   

 

 

 
      149,130,252  
Road & Rail — 1.9%            

MTR Corp. Ltd.

    3,094,083       16,038,185  
   

 

 

 
Specialty Retail — 1.0%  

Chow Tai Fook Jewellery Group Ltd.(b)

    4,014,200       8,335,640  
   

 

 

 

Total Common Stocks — 100.0%
(Cost: $975,239,202)

 

    852,800,798  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 0.2%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 0.09%(d)(e)(f)

    1,036,519       1,036,726  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.03%(d)(e)

    710,000       710,000  
   

 

 

 
      1,746,726  
   

 

 

 

Total Short-Term Investments — 0.2%
(Cost: $1,746,807)

 

    1,746,726  
   

 

 

 

Total Investments in Securities — 100.2%
(Cost: $976,986,009)

 

    854,547,524  

Other Assets, Less Liabilities — (0.2)%

 

    (1,420,721
   

 

 

 

Net Assets — 100.0%

 

  $ 853,126,803  
   

 

 

 

 

(a) 

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

 

(b) 

Non-income producing security.

 

(c) 

All or a portion of this security is on loan.

 

(d) 

Affiliate of the Fund.

 

(e) 

Annualized 7-day yield as of period end.

 

(f) 

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

 

 

12  

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Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Hong Kong ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer  

Value at

08/31/21

   

  Purchases

at Cost

   

Proceeds

from Sales

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

02/28/22

   

Shares

Held at

02/28/22

    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 14,915,960     $     $ (13,879,130 )(a)    $ (23   $ (81   $ 1,036,726       1,036,519     $ 517,214 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    1,700,000             (990,000 )(a)                   710,000       710,000       61        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (23   $ (81   $ 1,746,726       $ 517,275     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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

       

MSCI EAFE Index

    3       03/18/22     $ 324     $ (14,688
       

 

 

 

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
 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 14,688  
  

 

 

 

 

  (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 February 28, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ (228,556
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (40,639
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

  

Average notional value of contracts — long

   $ 2,536,465  

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

 

 

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

  13


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Hong Kong 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

   $ 60,579,354        $ 792,221,444        $        $ 852,800,798  

Money Market Funds

     1,746,726                            1,746,726  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 62,326,080        $ 792,221,444        $        $ 854,547,524  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $ (14,688      $        $        $ (14,688
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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Schedule of Investments (unaudited) 

February 28, 2022

  

iShares® MSCI Japan Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Air Freight & Logistics — 0.3%            

Kintetsu World Express Inc.

    3,000     $ 78,622  

Konoike Transport Co. Ltd.

    3,000       31,376  

Maruwa Unyu Kikan Co. Ltd.

    3,000       27,728  

Mitsui-Soko Holdings Co. Ltd.

    2,000       41,629  

SBS Holdings Inc.

    2,000       58,102  
   

 

 

 
      237,457  
Auto Components — 3.0%            

Eagle Industry Co. Ltd.

    2,000       18,049  

Exedy Corp.

    3,000       43,653  

FCC Co. Ltd.

    3,000       36,914  

G-Tekt Corp.

    2,000       25,303  

Ichikoh Industries Ltd.

    3,000       13,234  

JTEKT Corp.

    18,000       155,275  

KYB Corp.

    2,000       53,722  

Musashi Seimitsu Industry Co. Ltd.

    4,000       62,436  

NGK Spark Plug Co. Ltd.

    14,000       252,289  

NHK Spring Co. Ltd.

    17,000       135,486  

Nifco Inc./Japan

    7,000       199,052  

Nippon Seiki Co. Ltd.

    4,000       33,898  

NOK Corp.

    8,000       83,745  

Pacific Industrial Co. Ltd.

    4,000       35,461  

Piolax Inc.

    2,000       30,059  

Shoei Co. Ltd.

    2,000       79,408  

Sumitomo Riko Co. Ltd.

    3,000       16,412  

Sumitomo Rubber Industries Ltd.

    15,000       145,143  

Tokai Rika Co. Ltd.

    5,000       66,358  

Topre Corp.

    3,000       31,113  

Toyo Tire Corp.

    10,000       132,541  

Toyoda Gosei Co. Ltd.

    6,000       114,189  

Toyota Boshoku Corp.

    6,000       109,800  

TPR Co. Ltd.

    2,000       24,207  

TS Tech Co. Ltd.

    8,000       107,948  

Yokohama Rubber Co. Ltd. (The)

    11,000       154,224  
   

 

 

 
      2,159,919  
Automobiles — 0.3%            

Mitsubishi Motors Corp.(a)

    59,000       154,835  

Nissan Shatai Co. Ltd.

    6,000       34,288  
   

 

 

 
      189,123  
Banks — 4.3%            

77 Bank Ltd. (The)

    5,000       67,516  

Aozora Bank Ltd.

    11,000       247,679  

Awa Bank Ltd. (The)

    3,000       60,468  

Bank of Kyoto Ltd. (The)

    5,000       222,176  

Chugoku Bank Ltd. (The)

    13,000       102,296  

Daishi Hokuetsu Financial Group Inc.

    3,000       69,391  

Fukuoka Financial Group Inc.

    15,000       295,717  

Gunma Bank Ltd. (The)

    32,000       105,784  

Hachijuni Bank Ltd. (The)

    33,000       124,711  

Hirogin Holdings Inc.

    25,000       147,272  

Hokkoku Financial Holdings Inc.

    2,000       52,812  

Hokuhoku Financial Group Inc.

    10,000       81,326  

Hyakugo Bank Ltd. (The)

    18,000       55,503  

Iyo Bank Ltd. (The)

    20,000       107,184  

Juroku Financial Group Inc.

    2,000       42,361  

Keiyo Bank Ltd. (The)

    10,000       44,541  

Kiyo Bank Ltd. (The)

    5,000       64,123  

Kyushu Financial Group Inc.

    32,000       114,204  

Mebuki Financial Group Inc.

    87,000       204,009  
Security   Shares     Value  

Banks (continued)

   

Musashino Bank Ltd. (The)

    2,000     $ 33,039  

Nanto Bank Ltd. (The)

    2,000       37,040  

Nishi-Nippon Financial Holdings Inc.

    11,000       78,613  

North Pacific Bank Ltd.

    23,000       50,695  

Ogaki Kyoritsu Bank Ltd. (The)

    3,000       52,987  

Okinawa Financial Group Inc.

    2,000       40,867  

San-in Godo Bank Ltd. (The)

    13,000       76,605  

Seven Bank Ltd.

    54,000       115,276  

Shiga Bank Ltd. (The)

    3,000       58,224  

Shinsei Bank Ltd.

    6,000       112,452  

Suruga Bank Ltd.

    14,000       54,902  

Toho Bank Ltd. (The)

    17,000       31,268  

TOMONY Holdings Inc.

    12,000       35,985  

Yamaguchi Financial Group Inc.

    17,500       108,040  
   

 

 

 
      3,095,066  
Beverages — 0.5%            

Coca-Cola Bottlers Japan Holdings Inc.

    11,000       140,051  

Sapporo Holdings Ltd.

    6,000       118,687  

Takara Holdings Inc.

    13,000       129,166  
   

 

 

 
      387,904  
Biotechnology — 0.6%            

AnGes Inc.(a)

    13,000       35,793  

GNI Group Ltd.(a)

    4,097       45,436  

HEALIOS K.K.(a)

    2,000       22,119  

PeptiDream Inc.(a)

    9,000       160,199  

Pharma Foods International Co. Ltd.

    2,000       28,071  

SanBio Co. Ltd.(a)

    3,000       48,884  

Takara Bio Inc.

    4,000       83,588  
   

 

 

 
      424,090  
Building Products — 1.2%            

Aica Kogyo Co. Ltd.

    5,000       139,993  

Bunka Shutter Co. Ltd.

    5,000       47,364  

Central Glass Co. Ltd.

    3,000       53,835  

Nichias Corp.

    5,000       113,266  

Nichiha Corp.

    2,000       45,050  

Nippon Sheet Glass Co. Ltd.(a)

    8,000       33,389  

Nitto Boseki Co. Ltd.

    2,000       53,139  

Noritz Corp.

    2,000       26,914  

Sanwa Holdings Corp.

    16,000       178,811  

Sekisui Jushi Corp.

    2,000       33,386  

Shin Nippon Air Technologies Co. Ltd.

    1,000       17,896  

Sinko Industries Ltd.

    2,000       30,271  

Takara Standard Co. Ltd.

    3,000       35,633  

Takasago Thermal Engineering Co. Ltd.

    4,000       67,419  
   

 

 

 
      876,366  
Capital Markets — 0.7%            

GMO Financial Holdings Inc.

    3,000       21,315  

JAFCO Group Co. Ltd.

    7,000       105,294  

M&A Capital Partners Co. Ltd.(a)

    1,000       43,887  

Matsui Securities Co. Ltd.

    10,000       70,262  

Monex Group Inc.

    14,000       63,827  

Okasan Securities Group Inc.

    13,000       44,248  

SPARX Group Co. Ltd.

    8,000       17,728  

Strike Co. Ltd.

    1,000       38,960  

Tokai Tokyo Financial Holdings Inc.

    17,000       62,154  

Uzabase Inc.(a)

    2,000       17,363  

WealthNavi Inc.(a)

    2,000       30,169  
   

 

 

 
      515,207  

 

 

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

  15


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Japan Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Chemicals — 6.6%            

ADEKA Corp.

    7,000     $ 162,346  

Air Water Inc.

    16,000       232,938  

C.I. Takiron Corp.

    4,000       19,512  

Chugoku Marine Paints Ltd.

    3,000       24,043  

Daicel Corp.

    23,000       176,999  

Denka Co. Ltd.

    7,000       214,989  

DIC Corp.

    7,000       159,456  

Fujimi Inc.

    2,000       119,322  

Fujimori Kogyo Co. Ltd.

    1,000       34,705  

Fuso Chemical Co. Ltd.

    2,000       80,704  

JCU Corp.

    2,000       86,523  

JSP Corp.

    1,000       14,033  

Kaneka Corp.

    4,000       130,836  

Kanto Denka Kogyo Co. Ltd.

    4,000       41,861  

KeePer Technical Laboratory Co. Ltd.

    1,000       18,889  

KH Neochem Co. Ltd.

    3,000       74,182  

Konishi Co. Ltd.

    3,000       41,691  

Kumiai Chemical Industry Co. Ltd.

    7,049       50,022  

Kuraray Co. Ltd.

    27,000       253,439  

Kureha Corp.

    1,400       112,349  

Lintec Corp.

    4,000       89,162  

Nihon Parkerizing Co. Ltd.

    7,000       60,209  

Nippon Kayaku Co. Ltd.

    12,000       118,861  

Nippon Shokubai Co. Ltd.

    2,000       97,527  

Nippon Soda Co. Ltd.

    2,000       58,591  

NOF Corp.

    6,000       261,026  

Okamoto Industries Inc.

    1,000       34,901  

Osaka Organic Chemical Industry Ltd.

    1,000       26,473  

Osaka Soda Co. Ltd.

    1,000       27,362  

Sakata INX Corp.

    4,000       33,455  

Sanyo Chemical Industries Ltd.

    1,000       44,677  

Shikoku Chemicals Corp.

    3,000       38,067  

Shin-Etsu Polymer Co. Ltd.

    4,000       38,294  

Showa Denko KK

    16,000       292,489  

Sumitomo Bakelite Co. Ltd.

    3,000       125,156  

T. Hasegawa Co. Ltd.

    3,000       62,991  

Taiyo Holdings Co. Ltd.

    3,000       80,514  

Takasago International Corp.

    1,000       24,030  

Taki Chemical Co. Ltd.

    400       16,627  

Teijin Ltd.

    16,000       192,478  

Tenma Corp.

    1,000       22,663  

Toagosei Co. Ltd.

    9,000       85,613  

Tokai Carbon Co. Ltd.

    17,000       163,171  

Tokuyama Corp.

    5,000       77,047  

Tokyo Ohka Kogyo Co. Ltd.

    3,000       191,289  

Toyo Gosei Co. Ltd.

    400       33,568  

Toyo Ink SC Holdings Co. Ltd.

    3,000       50,286  

Toyobo Co. Ltd.

    7,000       75,770  

Ube Industries Ltd.

    9,000       165,886  

Zeon Corp.

    12,000       140,828  
   

 

 

 
      4,777,850  
Commercial Services & Supplies — 1.5%            

Aeon Delight Co. Ltd.

    2,000       51,927  

Daiseki Co. Ltd.

    4,012       163,441  

Duskin Co. Ltd.

    3,000       73,238  

Japan Elevator Service Holdings Co. Ltd.

    5,000       65,597  

Kokuyo Co. Ltd.

    7,000       98,133  

Matsuda Sangyo Co. Ltd.

    1,060       22,958  

Midac Holdings Co. Ltd.

    1,000       20,461  

Mitsubishi Pencil Co. Ltd.

    3,000       33,526  
Security   Shares     Value  
Commercial Services & Supplies (continued)            

Nippon Kanzai Co. Ltd.

    2,000     $ 49,665  

Nippon Parking Development Co. Ltd.

    16,000       19,523  

Okamura Corp.

    5,000       51,519  

Park24 Co. Ltd.(a)

    10,000       149,458  

Pilot Corp.

    2,000       82,265  

Prestige International Inc.

    8,000       48,725  

Raksul Inc.(a)

    2,000       54,631  

Sato Holdings Corp.

    2,000       35,525  

TRE Holdings Corp.

    4,000       59,952  
   

 

 

 
      1,080,544  
Construction & Engineering — 4.1%            

Chiyoda Corp.(a)

    14,000       43,811  

Chudenko Corp.

    2,000       38,089  

COMSYS Holdings Corp.

    10,000       241,821  

Dai-Dan Co. Ltd.

    1,000       20,308  

Daiho Corp.

    1,000       31,254  

EXEO Group Inc.

    9,000       187,347  

Hazama Ando Corp.

    12,000       96,658  

INFRONEER Holdings Inc.

    18,840       167,153  

JDC Corp.

    4,000       18,680  

JGC Holdings Corp.

    20,000       200,458  

JTOWER Inc.(a)

    1,000       36,122  

Kandenko Co. Ltd.

    9,000       68,437  

Kinden Corp.

    11,000       156,009  

Kumagai Gumi Co. Ltd.

    3,000       75,418  

Kyudenko Corp.

    4,000       107,387  

Mirait Holdings Corp.

    8,000       135,960  

Nippon Densetsu Kogyo Co. Ltd.

    3,000       41,598  

Nippon Koei Co. Ltd.

    1,000       26,738  

Nippon Road Co. Ltd. (The)

    900       76,376  

Nishimatsu Construction Co. Ltd.

    3,000       99,796  

Okumura Corp.

    3,000       84,725  

Penta-Ocean Construction Co. Ltd.

    25,000       131,598  

Raito Kogyo Co. Ltd.

    4,000       68,150  

Raiznext Corp.

    2,000       19,803  

Sanki Engineering Co. Ltd.

    4,000       51,909  

Shinnihon Corp.

    2,000       13,053  

SHO-BOND Holdings Co. Ltd.

    4,000       179,193  

Sumitomo Densetsu Co. Ltd.

    1,000       20,152  

Sumitomo Mitsui Construction Co. Ltd.

    13,000       49,942  

Taihei Dengyo Kaisha Ltd.

    1,000       22,785  

Taikisha Ltd.

    2,000       54,073  

Takamatsu Construction Group Co. Ltd.

    1,000       17,727  

Toa Corp./Tokyo

    1,000       22,507  

Toda Corp.

    20,000       133,554  

Toenec Corp.

    1,000       30,965  

Tokyu Construction Co. Ltd.

    7,040       43,635  

Totetsu Kogyo Co. Ltd.

    2,000       43,673  

Toyo Construction Co. Ltd.

    6,000       31,264  

Yokogawa Bridge Holdings Corp.

    3,000       54,801  

Yurtec Corp.

    3,000       19,258  
   

 

 

 
      2,962,187  
Construction Materials — 0.5%            

Maeda Kosen Co. Ltd.

    2,000       57,907  

Mitani Sekisan Co. Ltd.

    1,000       53,697  

Sumitomo Osaka Cement Co. Ltd.

    3,000       89,118  

Taiheiyo Cement Corp.

    10,000       192,284  
   

 

 

 
      393,006  

 

 

16  

2 0 2 2   H A R E S   S E M I - 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 (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Japan Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Consume Finance — 1.0%            

AEON Financial Service Co. Ltd.

    10,000     $ 102,996  

Aiful Corp.

    28,000       89,773  

Credit Saison Co. Ltd.

    13,000       146,340  

Jaccs Co. Ltd.

    2,000       56,483  

Marui Group Co. Ltd.

    15,000       295,214  

Orient Corp.

    47,000       51,645  
   

 

 

 
      742,451  
Containers & Packaging — 0.7%            

FP Corp.

    4,100       116,503  

Fuji Seal International Inc.

    4,000       63,207  

Pack Corp. (The)

    1,000       23,922  

Rengo Co. Ltd.

    16,000       119,757  

Toyo Seikan Group Holdings Ltd.

    13,000       173,685  
   

 

 

 
      497,074  
Distributors — 0.2%            

Arata Corp.

    1,000       34,857  

Doshisha Co. Ltd.

    2,000       27,117  

Paltac Corp.

    3,000       116,742  
   

 

 

 
      178,716  
Diversified Consumer Services — 0.3%            

Benesse Holdings Inc.

    6,000       122,210  

LITALICO Inc.

    2,000       49,771  

Riso Kyoiku Co. Ltd.

    10,000       31,343  
   

 

 

 
      203,324  
Diversified Financial Services — 0.8%            

eGuarantee Inc.

    3,000       53,392  

Financial Products Group Co. Ltd.

    6,000       44,685  

Fuyo General Lease Co. Ltd.

    1,500       98,258  

Japan Securities Finance Co. Ltd.

    8,000       63,832  

Mizuho Leasing Co. Ltd.

    2,000       54,024  

Ricoh Leasing Co. Ltd.

    1,000       32,359  

Zenkoku Hosho Co. Ltd.

    5,000       210,263  
   

 

 

 
      556,813  
Diversified Telecommunication Services — 0.3%            

ARTERIA Networks Corp.

    2,000       23,164  

Internet Initiative Japan Inc.

    5,000       160,691  

Usen-Next Holdings Co. Ltd.

    1,000       21,169  

Vision Inc./Tokyo Japan(a)

    3,000       30,479  
   

 

 

 
      235,503  
Electric Utilities — 1.4%            

Chugoku Electric Power Co. Inc. (The)

    26,000       203,528  

Hokkaido Electric Power Co. Inc.

    16,000       70,050  

Hokuriku Electric Power Co.

    15,000       73,454  

Kyushu Electric Power Co. Inc.

    36,000       271,489  

Okinawa Electric Power Co. Inc. (The)

    4,092       51,525  

Shikoku Electric Power Co. Inc.

    14,000       107,645  

Tohoku Electric Power Co. Inc.

    39,000       253,243  
   

 

 

 
      1,030,934  
Electrical Equipment — 1.3%            

Daihen Corp.

    2,000       75,297  

Fujikura Ltd.(a)

    21,000       113,544  

Furukawa Electric Co. Ltd.

    6,000       118,787  

GS Yuasa Corp.

    6,000       129,198  

Idec Corp./Japan

    2,000       44,411  

Mabuchi Motor Co. Ltd.

    4,000       138,277  

Nippon Carbon Co. Ltd.

    1,000       35,667  

Nissin Electric Co. Ltd.

    4,000       50,903  

Nitto Kogyo Corp.

    2,000       28,117  
Security   Shares     Value  
Electrical Equipment (continued)            

Sanyo Denki Co. Ltd.

    1,000     $ 44,319  

Toyo Tanso Co. Ltd.

    1,000       26,978  

Ushio Inc.

    8,000       130,698  
   

 

 

 
      936,196  
Electronic Equipment, Instruments & Components — 4.2%  

Ai Holdings Corp.

    3,000       45,220  

Alps Alpine Co. Ltd.

    19,000       190,766  

Amano Corp.

    5,000       98,023  

Anritsu Corp.

    12,000       168,582  

Canon Electronics Inc.

    2,000       27,914  

Canon Marketing Japan Inc.

    4,000       83,601  

Citizen Watch Co. Ltd.

    24,000       104,546  

CONEXIO Corp.

    1,000       12,117  

Daiwabo Holdings Co. Ltd.

    8,000       123,835  

Dexerials Corp.

    5,000       142,756  

ESPEC Corp.

    1,000       18,011  

Hioki E.E. Corp.

    1,000       60,043  

Horiba Ltd.

    3,000       172,606  

Hosiden Corp.

    4,000       41,320  

Iriso Electronics Co. Ltd.

    2,000       71,437  

Japan Aviation Electronics Industry Ltd.

    4,000       63,038  

Japan Display Inc.(a)

    48,000       17,659  

Kaga Electronics Co. Ltd.

    1,000       26,319  

Koa Corp.

    3,000       38,017  

Macnica Fuji Electronics Holdings Inc.

    4,000       94,146  

Maruwa Co. Ltd./Aichi

    1,000       130,595  

Meiko Electronics Co. Ltd.

    2,000       70,072  

Nichicon Corp.

    4,000       42,530  

Nippon Ceramic Co. Ltd.

    2,000       43,969  

Nippon Electric Glass Co. Ltd.

    7,000       168,496  

Nippon Signal Company Ltd.

    4,000       30,295  

Nissha Co. Ltd.

    3,000       34,485  

Nohmi Bosai Ltd.

    2,000       34,797  

Oki Electric Industry Co. Ltd.

    8,000       58,944  

Optex Group Co. Ltd.

    3,000       43,704  

Restar Holdings Corp.

    1,000       17,280  

Riken Keiki Co. Ltd.

    1,000       42,188  

Ryosan Co. Ltd.

    2,000       40,832  

Ryoyo Electro Corp.

    1,000       19,034  

Siix Corp.

    3,000       29,336  

Taiyo Yuden Co. Ltd.

    10,000       452,116  

Tamura Corp.

    6,000       31,474  

Topcon Corp.

    9,000       118,676  

Yokowo Co. Ltd.

    1,000       23,899  
   

 

 

 
      3,032,678  
Energy Equipment & Services — 0.0%            

Modec Inc.

    2,000       20,457  
   

 

 

 
Entertainment — 0.8%            

Avex Inc.

    3,000       36,149  

Bushiroad Inc.(a)

    1,000       10,703  

COLOPL Inc.

    5,000       28,182  

Daiichikosho Co. Ltd.

    3,000       91,425  

DeNA Co. Ltd.

    8,000       122,938  

GungHo Online Entertainment Inc.

    4,000       88,780  

Shochiku Co. Ltd.(a)

    1,000       104,176  

Toei Co. Ltd.

    500       77,776  
   

 

 

 
      560,129  

 

 

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

  17


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Japan Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Equity Real Estate Investment Trusts (REITs) — 8.6%  

Activia Properties Inc.

    60     $ 203,648  

Advance Residence Investment Corp.

    120       336,102  

AEON REIT Investment Corp.

    140       174,568  

Comforia Residential REIT Inc.

    60       161,951  

CRE Logistics REIT Inc.

    50       82,911  

Daiwa Office Investment Corp.

    30       185,508  

Daiwa Securities Living Investments Corp.

    170       155,334  

Frontier Real Estate Investment Corp.

    40       164,660  

Fukuoka REIT Corp.

    60       81,918  

Global One Real Estate Investment Corp.

    90       86,902  

Hankyu Hanshin REIT Inc.

    60       75,593  

Heiwa Real Estate REIT Inc.

    80       96,332  

Hoshino Resorts REIT Inc.

    20       113,146  

Hulic Reit Inc.

    110       149,511  

Ichigo Office REIT Investment Corp.

    110       79,490  

Industrial & Infrastructure Fund Investment Corp.

    170       255,739  

Invincible Investment Corp.

    550       188,611  

Itochu Advance Logistics Investment Corp.

    50       63,787  

Japan Excellent Inc.

    110       122,825  

Japan Hotel REIT Investment Corp.

    400       204,702  

Japan Logistics Fund Inc.

    70       183,698  

Japan Prime Realty Investment Corp.

    70       227,917  

Kenedix Office Investment Corp.

    40       237,178  

Kenedix Residential Next Investment Corp.

    80       131,427  

Kenedix Retail REIT Corp.

    50       114,060  

LaSalle Logiport REIT

    160       229,526  

Mirai Corp.

    150       63,932  

Mitsubishi Estate Logistics REIT Investment Corp.

    32       118,730  

Mitsui Fudosan Logistics Park Inc.

    51       232,897  

Mori Hills REIT Investment Corp.

    140       168,267  

Mori Trust Hotel Reit Inc.

    30       32,026  

Mori Trust Sogo REIT Inc.

    90       107,653  

Nippon Accommodations Fund Inc.

    40       210,499  

NIPPON REIT Investment Corp.

    40       125,209  

NTT UD REIT Investment Corp.

    120       157,274  

One REIT Inc.

    20       49,863  

Samty Residential Investment Corp.

    30       30,747  

Sekisui House Reit Inc.

    360       239,238  

SOSiLA Logistics REIT Inc.

    60       77,196  

Star Asia Investment Corp.

    130       65,683  

Starts Proceed Investment Corp.

    20       39,306  

Takara Leben Real Estate Investment Corp.

    50       49,846  

Tokyu REIT Inc.

    70       110,003  

United Urban Investment Corp.

    260       298,095  
   

 

 

 
      6,283,508  
Food & Staples Retailing — 2.7%            

Aeon Hokkaido Corp.

    2,000       20,414  

Ain Holdings Inc.

    2,200       122,763  

Arcs Co. Ltd.

    4,000       75,757  

Axial Retailing Inc.

    1,000       28,954  

Belc Co. Ltd.

    1,000       47,889  

Cawachi Ltd.

    1,000       21,356  

Create SD Holdings Co. Ltd.

    2,000       54,862  

Daikokutenbussan Co. Ltd.

    500       20,759  

Fuji Co. Ltd./Ehime

    1,000       27,386  

G-7 Holdings Inc.

    2,000       28,931  

Genky DrugStores Co. Ltd.

    1,000       34,365  

Halows Co. Ltd.

    1,000       25,451  

Heiwado Co. Ltd.

    3,000       52,290  

Inageya Co. Ltd.

    2,000       25,020  
Security   Shares     Value  
Food & Staples Retailing (continued)  

JM Holdings Co. Ltd.

    1,000     $ 15,547  

Kato Sangyo Co. Ltd.

    2,000       53,913  

Kusuri no Aoki Holdings Co. Ltd.

    1,400       82,317  

Life Corp.

    1,000       26,483  

MatsukiyoCocokara & Co.

    10,000       385,522  

Maxvalu Tokai Co. Ltd.

    1,000       22,697  

Mitsubishi Shokuhin Co. Ltd.

    1,000       26,956  

Nihon Chouzai Co. Ltd.

    1,000       12,116  

Qol Holdings Co. Ltd.

    2,000       22,374  

Retail Partners Co. Ltd.

    2,000       22,386  

San-A Co. Ltd.

    2,000       74,260  

Shoei Foods Corp.

    1,000       36,784  

Sugi Holdings Co. Ltd.

    3,000       170,907  

Sundrug Co. Ltd.

    6,000       163,331  

United Super Markets Holdings Inc.

    5,000       46,184  

Valor Holdings Co. Ltd.

    3,000       58,101  

Yaoko Co. Ltd.

    2,000       114,593  

Yokorei Co. Ltd.

    4,000       30,409  
   

 

 

 
      1,951,077  
Food Products — 4.0%            

Ariake Japan Co. Ltd.

    2,000       99,872  

Calbee Inc.

    8,000       179,886  

DyDo Group Holdings Inc.

    1,000       44,888  

Ezaki Glico Co. Ltd.

    4,000       136,457  

Fuji Oil Holdings Inc.

    4,000       77,599  

Fujicco Co. Ltd.

    2,000       34,780  

Fujiya Co. Ltd.

    1,000       22,235  

Hokuto Corp.

    2,000       34,310  

House Foods Group Inc.

    5,000       129,262  

Itoham Yonekyu Holdings Inc.

    13,000       78,117  

J-Oil Mills Inc.

    2,000       30,231  

Kagome Co. Ltd.

    7,000       186,872  

Kameda Seika Co. Ltd.

    1,000       35,933  

Kewpie Corp.

    9,000       192,110  

Kotobuki Spirits Co. Ltd.

    2,000       106,668  

Maruha Nichiro Corp.

    4,000       87,273  

Megmilk Snow Brand Co. Ltd.

    4,000       70,439  

Mitsui DM Sugar Holdings Co. Ltd.

    1,000       17,851  

Morinaga & Co. Ltd./Japan

    3,000       97,608  

Morinaga Milk Industry Co. Ltd.

    3,000       150,387  

NH Foods Ltd.

    7,000       262,729  

Nichirei Corp.

    10,000       220,358  

Nippn Corp., New

    4,000       59,338  

Nippon Suisan Kaisha Ltd.

    25,000       118,384  

Nisshin Oillio Group Ltd. (The)

    2,000       53,161  

Prima Meat Packers Ltd.

    2,000       42,219  

Riken Vitamin Co. Ltd.

    2,000       30,243  

S Foods Inc.

    2,000       57,511  

Sakata Seed Corp.

    2,000       58,761  

Showa Sangyo Co. Ltd.

    1,000       23,843  

Yamazaki Baking Co. Ltd.

    11,000       148,920  

Yukiguni Maitake Co. Ltd.

    2,000       20,869  
   

 

 

 
      2,909,114  
Gas Utilities — 0.6%            

Nippon Gas Co. Ltd.

    10,000       150,471  

Saibu Gas Holdings Co. Ltd.

    2,000       39,956  

Shizuoka Gas Co. Ltd.

    4,000       30,196  

Toho Gas Co. Ltd.

    7,000       187,227  
   

 

 

 
      407,850  

 

 

18  

2 0 2 2   H A R E S   S E M I - 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 (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Japan Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Equipment & Supplies — 1.5%            

CYBERDYNE Inc.(a)(b)

    10,000     $ 30,209  

Eiken Chemical Co. Ltd.

    3,000       45,579  

Hogy Medical Co. Ltd.

    2,000       58,324  

Japan Lifeline Co. Ltd.

    6,000       57,309  

Jeol Ltd.

    3,000       174,949  

Mani Inc.

    7,000       99,041  

Menicon Co. Ltd.

    5,000       130,810  

Nagaileben Co. Ltd.

    2,000       38,207  

Nakanishi Inc.

    6,000       112,143  

Nihon Kohden Corp.

    7,000       190,990  

Nipro Corp.

    12,000       114,600  

Paramount Bed Holdings Co. Ltd.

    3,000       52,883  
   

 

 

 
      1,105,044  
Health Care Providers & Services — 1.5%            

Alfresa Holdings Corp.

    17,000       261,618  

As One Corp.

    2,400       145,086  

BML Inc.

    2,000       58,013  

Elan Corp.

    3,000       25,556  

H.U. Group Holdings Inc.

    5,000       132,331  

Japan Medical Dynamic Marketing Inc.

    1,000       14,007  

Ship Healthcare Holdings Inc.

    7,000       139,339  

Solasto Corp.

    5,000       44,770  

Suzuken Co. Ltd.

    6,000       193,417  

Toho Holdings Co. Ltd.

    5,000       82,265  

Tokai Corp./Gifu

    2,000       32,766  
   

 

 

 
      1,129,168  
Health Care Technology — 0.3%            

EM Systems Co. Ltd.

    3,000       18,844  

JMDC Inc.(a)

    2,200       122,102  

Medical Data Vision Co. Ltd.

    2,000       18,729  

Medley Inc.(a)

    2,000       39,131  

MedPeer Inc.(a)

    1,000       27,817  
   

 

 

 
      226,623  
Hotels, Restaurants & Leisure — 3.5%            

Airtrip Corp.

    1,000       27,045  

Arcland Service Holdings Co. Ltd.

    1,000       19,779  

Atom Corp.

    10,000       67,155  

Colowide Co. Ltd.

    7,000       105,343  

Create Restaurants Holdings Inc.

    10,000       63,054  

Curves Holdings Co. Ltd.

    5,000       30,815  

Doutor Nichires Holdings Co. Ltd.

    3,000       42,300  

Food & Life Companies Ltd.

    10,000       332,870  

Fuji Kyuko Co. Ltd.

    2,000       69,978  

Fujio Food Group Inc.

    1,000       11,433  

Hiday Hidaka Corp.

    2,084       32,518  

HIS Co. Ltd.(a)

    4,000       68,851  

Ichibanya Co. Ltd.

    1,000       40,704  

Kappa Create Co. Ltd.(a)

    2,000       24,168  

KFC Holdings Japan Ltd.

    1,000       25,305  

Kisoji Co. Ltd.

    2,000       37,637  

KOMEDA Holdings Co. Ltd.

    4,000       73,620  

Koshidaka Holdings Co. Ltd.

    4,000       22,220  

Kura Sushi Inc.

    2,000       64,672  

Kyoritsu Maintenance Co. Ltd.

    3,080       114,100  

Matsuyafoods Holdings Co. Ltd.

    1,000       32,067  

Monogatari Corp. (The)

    1,000       55,298  

MOS Food Services Inc.

    2,000       53,033  

Ohsho Food Service Corp.

    1,000       52,637  

Open Door Inc.(a)

    1,000       16,943  
Security   Shares     Value  
Hotels, Restaurants & Leisure (continued)            

Plenus Co. Ltd.

    2,000     $ 34,795  

Resorttrust Inc.

    7,000       118,204  

Ringer Hut Co. Ltd.

    2,000       39,036  

Round One Corp.

    5,000       56,172  

Royal Holdings Co. Ltd.

    2,000       34,307  

Saizeriya Co. Ltd.

    3,000       76,720  

Skylark Holdings Co. Ltd.

    20,000       262,426  

Tokyotokeiba Co. Ltd.

    1,000       35,538  

Toridoll Holdings Corp.

    4,000       84,994  

Tosho Co. Ltd.

    1,000       15,124  

Yoshinoya Holdings Co. Ltd.

    6,000       124,796  

Zensho Holdings Co. Ltd.

    8,000       192,182  
   

 

 

 
      2,557,839  
Household Durables — 2.1%            

Casio Computer Co. Ltd.

    17,000       199,179  

Chofu Seisakusho Co. Ltd.

    1,000       17,401  

ES-Con Japan Ltd.

    3,000       19,801  

Fujitsu General Ltd.

    5,000       108,428  

Haseko Corp.

    23,000       293,593  

Ki-Star Real Estate Co. Ltd.

    1,000       44,182  

Nagawa Co. Ltd.

    1,000       84,818  

Nikon Corp.

    27,000       282,226  

Pressance Corp.

    2,000       31,352  

Sangetsu Corp.

    4,000       56,104  

Sumitomo Forestry Co. Ltd.

    13,000       250,686  

Tama Home Co. Ltd.

    1,000       20,143  

Tamron Co. Ltd.

    1,000       20,550  

Token Corp.

    1,000       79,207  

Zojirushi Corp.

    3,000       37,909  
   

 

 

 
      1,545,579  
Household Products — 0.3%            

Earth Corp.

    1,000       48,917  

Pigeon Corp.

    10,000       184,137  
   

 

 

 
      233,054  
Independent Power and Renewable Electricity Producers — 0.5%  

Electric Power Development Co. Ltd.

    13,000       206,260  

eRex Co. Ltd.

    2,000       32,316  

RENOVA Inc.(a)

    3,000       37,419  

West Holdings Corp.

    2,080       78,542  
   

 

 

 
      354,537  
Industrial Conglomerates — 0.7%            

Katakura Industries Co. Ltd.

    2,000       40,941  

Keihan Holdings Co. Ltd.

    9,000       240,175  

Mie Kotsu Group Holdings Inc.

    4,000       16,135  

Nisshinbo Holdings Inc.

    13,000       114,750  

Noritsu Koki Co. Ltd.

    2,000       35,978  

TOKAI Holdings Corp.

    9,000       71,630  
   

 

 

 
      519,609  
Insurance — 0.1%            

Anicom Holdings Inc.

    7,000       45,083  

LIFENET INSURANCE CO.(a)

    4,000       20,175  
   

 

 

 
      65,258  
Interactive Media & Services — 0.4%            

Bengo4.com Inc.(a)

    1,000       37,705  

Dip Corp.

    3,000       89,011  

giftee Inc.(a)

    1,000       7,486  

Gree Inc.

    10,000       82,317  

 

 

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

  19


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Japan Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Interactive Media & Services (continued)

   

Mixi Inc.

    4,000     $ 77,804  
   

 

 

 
      294,323  
Internet & Direct Marketing Retail — 0.2%            

ASKUL Corp.

    3,000       43,568  

Belluna Co. Ltd.

    4,000       25,725  

Demae-Can Co. Ltd.(a)

    4,000       25,828  

Media Do Co. Ltd.

    1,000       21,917  

Oisix ra daichi Inc.(a)

    2,000       44,929  
   

 

 

 
      161,967  
IT Services — 2.8%            

Argo Graphics Inc.

    1,000       27,768  

BASE Inc.(a)

    7,000       25,658  

Bell System24 Holdings Inc.

    3,000       35,023  

Change Inc.(a)

    3,000       46,334  

Comture Corp.

    2,000       51,496  

Digital Garage Inc.

    3,000       104,492  

DTS Corp.

    3,000       71,881  

Future Corp.

    4,000       49,732  

GMO GlobalSign Holdings KK

    400       15,364  

GMO internet Inc.

    6,000       136,592  

Hennge KK(a)

    1,000       7,464  

Infocom Corp.

    2,000       35,451  

Infomart Corp.

    17,000       101,293  

Information Services International-Dentsu Ltd.

    2,000       65,098  

JIG-SAW Inc.(a)

    500       24,684  

Kanematsu Electronics Ltd.

    1,000       34,064  

Mitsubishi Research Institute Inc.

    1,000       33,811  

NEC Networks & System Integration Corp.

    6,000       92,253  

NET One Systems Co. Ltd.

    8,000       196,828  

Nihon Unisys Ltd.

    6,000       164,377  

NS Solutions Corp.

    3,000       95,548  

NSD Co. Ltd.

    6,000       112,657  

Oro Co. Ltd.

    1,000       20,887  

Relia Inc.

    3,000       27,580  

SB Technology Corp.

    1,000       22,911  

SHIFT Inc.(a)

    1,000       193,838  

TechMatrix Corp.

    3,000       46,937  

TKC Corp.

    3,000       81,908  

Transcosmos Inc.

    2,000       55,314  

Uchida Yoko Co. Ltd.

    1,000       41,540  

Zuken Inc.

    1,000       28,102  
   

 

 

 
      2,046,885  
Leisure Products — 1.1%            

GLOBERIDE Inc.

    1,000       25,051  

Heiwa Corp.

    5,016       84,621  

Mizuno Corp.

    2,000       39,522  

Roland Corp.

    1,000       33,892  

Sankyo Co. Ltd.

    4,000       111,672  

Sega Sammy Holdings Inc.

    15,000       273,591  

Snow Peak Inc.

    2,000       49,427  

Tomy Co. Ltd.

    7,000       76,555  

Universal Entertainment Corp.(a)

    2,000       41,140  

Yonex Co. Ltd.

    5,000       39,811  
   

 

 

 
      775,282  
Life Sciences Tools & Services — 0.0%            

CellSource Co. Ltd.(a)

    1,000       30,541  
   

 

 

 
Machinery — 7.1%            

Aichi Corp.

    2,000       15,354  
Security   Shares     Value  

Machinery (continued)

   

Aida Engineering Ltd.

    4,000     $     34,634  

Amada Co. Ltd.

    30,000       265,823  

CKD Corp.

    5,000       87,206  

Daiwa Industries Ltd.

    3,000       28,989  

DMG Mori Co. Ltd.

    10,000       139,693  

Ebara Corp.

    9,000       469,721  

Fuji Corp./Aichi

    6,000       122,013  

Fujitec Co. Ltd.

    6,000       143,844  

Fukushima Galilei Co. Ltd.

    1,000       34,413  

Furukawa Co. Ltd.

    3,000       34,755  

Giken Ltd.

    1,000       31,146  

Glory Ltd.

    4,000       72,546  

Harmonic Drive Systems Inc.

    4,000       163,615  

Hirata Corp.

    1,000       45,628  

Hitachi Zosen Corp.

    14,000       97,044  

Hosokawa Micron Corp.

    1,000       23,395  

IHI Corp.

    12,000       277,714  

Japan Steel Works Ltd. (The)

    5,000       163,291  

Kawasaki Heavy Industries Ltd.

    13,000       239,845  

Kitz Corp.

    5,000       28,537  

Kyokuto Kaihatsu Kogyo Co. Ltd.

    3,000       37,876  

Makino Milling Machine Co. Ltd.

    2,000       65,312  

Max Co. Ltd.

    2,000       30,856  

Meidensha Corp.

    3,000       58,727  

METAWATER Co. Ltd.

    2,000       36,919  

Mitsubishi Logisnext Co. Ltd.

    2,000       16,241  

Mitsuboshi Belting Ltd.

    2,000       37,699  

Morita Holdings Corp.

    3,000       32,001  

Nabtesco Corp.

    10,000       277,155  

Nachi-Fujikoshi Corp.

    1,000       36,361  

Nikkiso Co. Ltd.

    4,000       27,711  

Nissei ASB Machine Co. Ltd.

    1,000       26,239  

Nitta Corp.

    2,000       48,483  

Nittoku Co. Ltd.

    1,000       23,123  

Noritake Co. Ltd./Nagoya Japan

    1,000       39,934  

NSK Ltd.

    34,000       219,355  

NTN Corp.(a)

    36,000       68,095  

Obara Group Inc.

    1,000       27,036  

Oiles Corp.

    2,096       29,240  

OKUMA Corp.

    2,000       81,569  

Organo Corp.

    1,000       71,178  

OSG Corp.

    7,000       116,993  

Shibaura Machine Co. Ltd.

    2,000       53,402  

Shibuya Corp.

    1,000       21,517  

Shima Seiki Manufacturing Ltd.

    2,000       31,132  

Shinmaywa Industries Ltd.

    5,000       40,633  

Sodick Co. Ltd.

    4,000       27,106  

Star Micronics Co. Ltd.

    3,000       38,273  

Sumitomo Heavy Industries Ltd.

    10,000       242,308  

Tadano Ltd.

    9,000       76,847  

Takeuchi Manufacturing Co. Ltd.

    3,000       67,066  

Takuma Co. Ltd.

    6,000       76,253  

Teikoku Sen-I Co. Ltd.

    2,000       33,160  

THK Co. Ltd.

    10,000       229,730  

Tocalo Co. Ltd.

    5,000       58,718  

Tsubaki Nakashima Co. Ltd.

    4,000       34,011  

Tsubakimoto Chain Co.

    2,000       57,196  

Tsugami Corp.

    3,000       33,261  

Tsukishima Kikai Co. Ltd.

    2,000       18,229  

Union Tool Co.

    1,000       32,374  

 

 

20  

2 0 2 2   H A R E S   S E M I - 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 (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Japan Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Machinery (continued)

   

YAMABIKO Corp.

    3,000     $ 34,744  
   

 

 

 
      5,133,269  

Marine — 0.5%

   

Iino Kaiun Kaisha Ltd.

    7,000       54,147  

Kawasaki Kisen Kaisha Ltd.(a)

    4,000       281,808  

NS United Kaiun Kaisha Ltd.

    1,000       36,547  
   

 

 

 
      372,502  

Media — 0.8%

   

Direct Marketing MiX Inc.

    2,000       27,995  

Fuji Media Holdings Inc.

    4,000       43,415  

Gakken Holdings Co. Ltd.

    2,000       17,984  

Kadokawa Corp.

    8,016       203,427  

Nippon Television Holdings Inc.

    5,000       57,199  

Proto Corp.

    2,000       20,128  

Septeni Holdings Co. Ltd.

    6,000       33,625  

SKY Perfect JSAT Holdings Inc.

    13,000       48,886  

TBS Holdings Inc.

    3,000       48,576  

TV Asahi Holdings Corp.

    2,000       27,335  

ValueCommerce Co. Ltd.

    1,000       31,297  

Vector Inc.

    3,000       29,117  

Zenrin Co. Ltd.

    3,000       29,179  
   

 

 

 
        618,163  

Metals & Mining — 2.1%

   

Aichi Steel Corp.

    1,000       22,922  

Asahi Holdings Inc.

    7,000       135,943  

Daido Steel Co. Ltd.

    2,000       71,922  

Daiki Aluminium Industry Co. Ltd.

    2,000       30,315  

Dowa Holdings Co. Ltd.

    4,000       180,522  

Kobe Steel Ltd.

    30,000       159,324  

Kyoei Steel Ltd.

    2,000       27,684  

Maruichi Steel Tube Ltd.

    5,000       124,098  

Mitsubishi Materials Corp.

    10,000       179,993  

Mitsui Mining & Smelting Co. Ltd.

    5,000       146,413  

Nippon Light Metal Holdings Co. Ltd.

    5,000       80,124  

Sanyo Special Steel Co. Ltd.

    2,000       37,053  

Toho Titanium Co. Ltd.

    3,000       28,426  

Tokyo Steel Manufacturing Co. Ltd.

    8,000       78,270  

UACJ Corp.(a)

    3,014       61,786  

Yamato Kogyo Co. Ltd.

    4,000       128,622  

Yodogawa Steel Works Ltd.

    2,000       48,035  
   

 

 

 
      1,541,452  

Multiline Retail — 1.1%

   

H2O Retailing Corp.

    8,035       60,080  

Isetan Mitsukoshi Holdings Ltd.

    30,000       241,936  

Izumi Co. Ltd.

    3,000       83,881  

J Front Retailing Co. Ltd.

    22,000       184,268  

Kintetsu Department Store Co. Ltd.(a)

    1,000       21,984  

Matsuya Co. Ltd.(a)

    2,000       12,038  

Seria Co. Ltd.

    4,000       102,620  

Takashimaya Co. Ltd.

    13,000       126,892  
   

 

 

 
      833,699  

Oil, Gas & Consumable Fuels — 0.7%

 

Cosmo Energy Holdings Co. Ltd.

    5,000       113,014  

Itochu Enex Co. Ltd.

    4,000       36,401  

Iwatani Corp.

    4,200       199,619  

Japan Petroleum Exploration Co. Ltd.

    3,000       71,211  

Mitsuuroko Group Holdings Co. Ltd.

    3,000       28,265  
Security   Shares     Value  

Oil, Gas & Consumable Fuels (continued)

   

San-Ai Oil Co. Ltd.

    5,000     $ 41,571  
   

 

 

 
      490,081  

Paper & Forest Products — 0.4%

   

Daiken Corp.

    1,000       19,558  

Daio Paper Corp.

    7,000       103,992  

Hokuetsu Corp.

    11,000       68,597  

Nippon Paper Industries Co. Ltd.

    9,000       85,907  

Tokushu Tokai Paper Co. Ltd.

    1,000       28,859  
   

 

 

 
      306,913  

Personal Products — 1.1%

   

Euglena Co. Ltd.(a)

    9,000       60,026  

Fancl Corp.

    7,000       198,751  

Kitanotatsujin Corp.

    6,000       11,754  

Mandom Corp.

    3,000       35,975  

Milbon Co. Ltd.

    2,000       105,884  

Noevir Holdings Co. Ltd.

    1,000       45,070  

Premier Anti-Aging Co. Ltd.(a)

    300       16,965  

Rohto Pharmaceutical Co. Ltd.

    8,000       268,335  

YA-MAN Ltd.

    3,000       24,890  
   

 

 

 
      767,650  

Pharmaceuticals — 1.5%

   

Hisamitsu Pharmaceutical Co. Inc.

    5,000       159,772  

JCR Pharmaceuticals Co. Ltd.

    6,000       114,534  

Kaken Pharmaceutical Co. Ltd.

    3,000       110,257  

Kissei Pharmaceutical Co. Ltd.

    2,000       42,277  

KYORIN Holdings Inc.

    4,000       65,091  

Mochida Pharmaceutical Co. Ltd.

    2,000       66,785  

Nichi-Iko Pharmaceutical Co. Ltd.

    5,050       37,137  

Sawai Group Holdings Co. Ltd.

    3,000       119,228  

Seikagaku Corp.

    3,000       23,809  

Sosei Group Corp.(a)

    7,000       87,288  

Torii Pharmaceutical Co. Ltd.

    1,000       25,429  

Towa Pharmaceutical Co. Ltd.

    2,000       51,828  

Tsumura & Co.

    5,000       138,874  

ZERIA Pharmaceutical Co. Ltd.

    2,000       34,508  
   

 

 

 
        1,076,817  

Professional Services — 2.6%

   

Altech Corp.

    1,080       18,228  

BayCurrent Consulting Inc.

    1,200       479,872  

BeNext-Yumeshin Group Co.

    5,016       71,454  

en Japan Inc.

    3,000       79,247  

Fullcast Holdings Co. Ltd.

    2,000       41,291  

Funai Soken Holdings Inc.

    3,000       58,335  

Insource Co. Ltd.

    2,000       34,425  

IR Japan Holdings Ltd.

    1,000       35,662  

JAC Recruitment Co. Ltd.

    1,000       15,939  

Link And Motivation Inc.

    3,000       10,884  

Makuake Inc.(a)

    400       6,385  

Meitec Corp.

    2,000       118,031  

Nomura Co. Ltd.

    7,000       56,613  

Outsourcing Inc.

    10,000       123,945  

Pasona Group Inc.

    2,000       44,007  

SMS Co. Ltd.

    6,000       163,418  

S-Pool Inc.

    6,000       52,871  

TechnoPro Holdings Inc.

    10,000       290,356  

UT Group Co. Ltd.

    2,000       60,855  

Visional Inc.(a)

    1,000       73,119  

WDB Holdings Co. Ltd.

    1,000       22,680  

Weathernews Inc.

    400       27,737  

 

 

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

  21


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Japan Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Professional Services (continued)

   

World Holdings Co. Ltd.

    1,000     $ 18,753  
   

 

 

 
      1,904,107  

Real Estate Management & Development — 2.0%

   

Aeon Mall Co. Ltd.

    9,000       126,558  

Goldcrest Co. Ltd.

    1,000       16,234  

Heiwa Real Estate Co. Ltd.

    3,000       107,270  

Ichigo Inc.

    22,000       51,194  

Katitas Co. Ltd.

    5,000       157,828  

Keihanshin Building Co. Ltd.

    3,000       38,992  

Leopalace21 Corp.(a)

    18,000       32,029  

Relo Group Inc.

    10,000       150,510  

SAMTY Co. Ltd.

    2,000       37,930  

SRE Holdings Corp.(a)

    600       19,462  

Starts Corp. Inc.

    3,000       67,800  

Sun Frontier Fudousan Co. Ltd.

    2,000       18,805  

TKP Corp.(a)

    1,000       12,623  

TOC Co. Ltd.

    3,000       18,608  

Tokyo Tatemono Co. Ltd.

    17,000       260,602  

Tokyu Fudosan Holdings Corp.

    55,000       305,109  

Tosei Corp.

    3,000       28,590  
   

 

 

 
        1,450,144  

Road & Rail — 3.2%

   

Fukuyama Transporting Co. Ltd.

    2,000       69,068  

Hamakyorex Co. Ltd.

    1,000       25,336  

Hitachi Transport System Ltd.

    4,000       211,982  

Keikyu Corp.

    20,000       209,563  

Kyushu Railway Co.

    12,000       265,488  

Maruzen Showa Unyu Co. Ltd.

    1,000       27,830  

Nagoya Railroad Co. Ltd.(a)

    17,000       312,184  

Nankai Electric Railway Co. Ltd.

    9,000       183,515  

Nikkon Holdings Co. Ltd.

    5,000       95,242  

Nishi-Nippon Railroad Co. Ltd.

    5,000       113,335  

Sakai Moving Service Co. Ltd.

    1,000       38,507  

Sankyu Inc.

    5,000       173,364  

Seibu Holdings Inc.(a)

    20,000       209,298  

Seino Holdings Co. Ltd.

    11,000       115,073  

Senko Group Holdings Co. Ltd.

    10,000       82,143  

Sotetsu Holdings Inc.(a)

    7,000       132,874  

Trancom Co. Ltd.

    1,000       63,562  
   

 

 

 
      2,328,364  

Semiconductors & Semiconductor Equipment — 2.3%

 

Ferrotec Holdings Corp.

    4,000       84,652  

Japan Material Co. Ltd.

    6,000       88,064  

Megachips Corp.

    1,000       31,874  

Micronics Japan Co. Ltd.

    2,000       28,805  

Mimasu Semiconductor Industry Co. Ltd.

    1,000       21,342  

Mitsui High-Tec Inc.

    2,000       147,516  

Optorun Co. Ltd.

    2,000       32,383  

Rorze Corp.

    1,000       95,052  

RS Technologies Co. Ltd.

    1,000       48,884  

Sanken Electric Co. Ltd.

    2,000       90,793  

SCREEN Holdings Co. Ltd.

    3,408       336,327  

Shinko Electric Industries Co. Ltd.

    6,000       256,265  

Tokyo Seimitsu Co. Ltd.

    3,000       124,912  

Tri Chemical Laboratories Inc.

    2,300       53,987  

Ulvac Inc.

    4,000       199,653  
   

 

 

 
      1,640,509  

Software — 1.5%

   

Alpha Systems Inc.

    1,000       32,552  
Security   Shares     Value  

Software (continued)

   

Broadleaf Co. Ltd.

    8,000     $ 24,313  

Cybozu Inc.

    2,000       24,179  

Digital Arts Inc.

    1,000       56,307  

Freee KK(a)

    3,000       100,863  

Fuji Soft Inc.

    2,000       98,073  

Fukui Computer Holdings Inc.

    1,000       27,502  

Justsystems Corp.

    3,000       145,966  

Miroku Jyoho Service Co. Ltd.

    2,000       26,605  

Money Forward Inc.(a)

    4,000       178,129  

OBIC Business Consultants Co. Ltd.

    3,000       110,287  

Optim Corp.(a)

    1,000       8,373  

PKSHA Technology Inc.(a)

    1,000       17,653  

Plaid Inc.(a)

    1,000       10,206  

Plus Alpha Consulting Co. Ltd.

    1,000       20,201  

Rakus Co. Ltd.

    6,000       99,509  

Sansan Inc.(a)

    6,000       52,811  

Systena Corp.

    24,000       87,705  
   

 

 

 
        1,121,234  

Specialty Retail — 2.6%

   

ABC-Mart Inc.

    3,000       130,171  

Adastria Co. Ltd.

    2,000       29,486  

Alpen Co. Ltd.

    1,000       18,432  

AOKI Holdings Inc.

    3,000       15,653  

Arcland Sakamoto Co. Ltd.

    2,000       27,371  

Autobacs Seven Co. Ltd.

    6,000       75,177  

Bic Camera Inc.

    8,000       69,603  

DCM Holdings Co. Ltd.

    11,000       106,904  

EDION Corp.

    7,000       72,977  

Geo Holdings Corp.

    2,000       26,416  

IDOM Inc.

    5,000       28,640  

JINS Holdings Inc.

    1,000       56,194  

Joshin Denki Co. Ltd.

    1,000       18,259  

Joyful Honda Co. Ltd.

    5,000       69,495  

Keiyo Co. Ltd.

    3,000       23,285  

Kohnan Shoji Co. Ltd.

    2,000       63,599  

Komeri Co. Ltd.

    3,000       73,765  

K’s Holdings Corp.

    15,000       162,540  

Nafco Co. Ltd.

    1,000       14,530  

Nextage Co. Ltd.

    4,000       85,894  

Nishimatsuya Chain Co. Ltd.

    3,000       37,415  

Nojima Corp.

    3,000       66,633  

PAL GROUP Holdings Co. Ltd.

    2,000       27,753  

Sanrio Co. Ltd.

    4,000       81,996  

Shimamura Co. Ltd.

    2,000       181,420  

T-Gaia Corp.

    2,000       30,248  

United Arrows Ltd.

    2,000       29,686  

VT Holdings Co. Ltd.

    7,000       30,047  

Xebio Holdings Co. Ltd.

    2,000       16,749  

Yamada Holdings Co. Ltd.

    62,000       215,267  

Yellow Hat Ltd.

    3,000       42,594  
   

 

 

 
      1,928,199  

Technology Hardware, Storage & Peripherals — 0.8%

 

Eizo Corp.

    1,000       32,133  

Elecom Co. Ltd.

    4,000       55,143  

Konica Minolta Inc.

    40,000       169,464  

Maxell Ltd.

    4,000       41,204  

MCJ Co. Ltd.

    6,000       52,532  

Riso Kagaku Corp.

    2,000       39,940  

Sun Corp.

    1,000       15,773  

 

 

22  

2 0 2 2   H A R E S   S E M I - 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 (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Japan Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Technology Hardware, Storage & Peripherals (continued)  

Toshiba TEC Corp.

    2,000     $ 85,105  

Wacom Co. Ltd.

    13,000       98,719  
   

 

 

 
      590,013  
Textiles, Apparel & Luxury Goods — 1.0%  

Asics Corp.

    14,000       280,401  

Descente Ltd.(a)

    3,000       79,295  

Goldwin Inc.

    2,000       105,658  

Gunze Ltd.

    1,000       34,353  

Japan Wool Textile Co. Ltd. (The)

    4,000       31,495  

Onward Holdings Co. Ltd.

    9,000       21,569  

Seiko Holdings Corp.

    2,000       41,796  

Seiren Co. Ltd.

    4,000       80,306  

Wacoal Holdings Corp.

    3,000       51,496  
   

 

 

 
      726,369  
Trading Companies & Distributors — 1.8%  

Advan Group Co. Ltd.

    1,000       8,235  

Daiichi Jitsugyo Co. Ltd

    1,000       38,029  

Hanwa Co. Ltd.

    3,000       87,262  

Inaba Denki Sangyo Co. Ltd.

    4,000       93,116  

Inabata & Co. Ltd.

    4,000       80,778  

Japan Pulp & Paper Co. Ltd.

    1,000       36,663  

Kanamoto Co. Ltd.

    3,000       59,439  

Kanematsu Corp.

    7,000       85,461  

Nagase & Co. Ltd.

    9,000       143,995  

Nichiden Corp.

    1,000       19,938  

Nippon Steel Trading Corp.

    1,044       49,523  

Nishio Rent All Co. Ltd.

    2,000       50,001  

Sojitz Corp.

    21,000       346,859  

Trusco Nakayama Corp.

    4,000       87,644  

Wakita & Co. Ltd.

    3,000       25,953  

Yamazen Corp.

    5,000       44,815  

Yuasa Trading Co. Ltd.

    1,000       26,012  
   

 

 

 
      1,283,723  
Security   Shares     Value  
Transportation Infrastructure — 0.9%  

Japan Airport Terminal Co. Ltd.(a)

    5,000     $ 233,482  

Kamigumi Co. Ltd.

    9,000       174,891  

Mitsubishi Logistics Corp.

    5,000       119,571  

Sumitomo Warehouse Co. Ltd. (The)

    5,000       92,735  
   

 

 

 
      620,679  
Wireless Telecommunication Services — 0.1%  

Okinawa Cellular Telephone Co.

    1,000       45,012  
   

 

 

 

Total Common Stocks — 99.6%
(Cost: $85,859,628)

      72,469,151  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 0.1%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 0.09%(c)(d)(e)

    9,029       9,031  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.03%(c)(d)

    30,000       30,000  
   

 

 

 
      39,031  
   

 

 

 

Total Short-Term Investments — 0.1%
(Cost: $39,031)

      39,031  
   

 

 

 

Total Investments in Securities — 99.7%
(Cost: $85,898,659)

      72,508,182  

Other Assets, Less Liabilities — 0.3%

      249,704  
   

 

 

 

Net Assets — 100.0%

    $ 72,757,886  
   

 

 

 

 

(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.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

   
       Affiliated Issuer    Value at
08/31/21
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
02/28/22
     Shares
Held at
02/28/22
     Income      Capital
Gain
Distributions
from
Underlying
Funds
        
 

 

   
  BlackRock Cash Funds: Institutional, SL Agency Shares    $      $ 9,031 (a)     $      $      $      $ 9,031        9,029      $ 8 (b)     $    
  BlackRock Cash Funds: Treasury, SL Agency Shares      30,000        0 (a)                             30,000        30,000        2           
             

 

 

    

 

 

    

 

 

       

 

 

    

 

 

   
              $      $      $ 39,031         $ 10      $    
             

 

 

    

 

 

    

 

 

       

 

 

    

 

 

   

 

  (a) 

Represents net amount purchased (sold).

 
  (b)

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

 

 

 

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

  23


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Japan Small-Cap ETF

 

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

           

Mini TOPIX Index

     15        03/10/22      $ 247      $ (5,621
           

 

 

 

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
 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 5,621  
  

 

 

 

 

  (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 February 28, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ (10,308
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (10,322
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 313,726  

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 1,185,889      $ 71,283,262      $             —      $ 72,469,151  

Money Market Funds

     39,031                      39,031  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 1,224,920      $ 71,283,262      $      $ 72,508,182  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Liabilities

           

Futures Contracts

   $      $ (5,621    $      $ (5,621
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

24  

2 0 2 2   H A R E S   S E  M I - 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 (unaudited)

February 28, 2022

  

iShares® MSCI Malaysia ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Banks — 38.3%            

AMMB Holdings Bhd(a)

    4,406,937     $ 3,534,335  

CIMB Group Holdings Bhd

    16,064,212       21,882,567  

Hong Leong Bank Bhd

    1,572,240       7,527,040  

Hong Leong Financial Group Bhd

    553,800       2,548,390  

Malayan Banking Bhd

    11,483,181       23,993,621  

Public Bank Bhd

    35,199,900       37,383,887  

RHB Bank Bhd

    4,507,302       6,352,120  
   

 

 

 
      103,221,960  
Beverages — 0.6%            

Fraser & Neave Holdings Bhd(b)

    310,200       1,669,768  
   

 

 

 
Chemicals — 4.9%            

Petronas Chemicals Group Bhd

    5,802,700       13,198,948  
   

 

 

 
Diversified Telecommunication Services — 1.2%  

Telekom Malaysia Bhd

    2,741,300       3,303,794  
   

 

 

 
Electric Utilities — 4.5%            

Tenaga Nasional Bhd

    5,537,812       12,105,599  
   

 

 

 
Electronic Equipment, Instruments & Components — 2.1%  

Inari Amertron Bhd

    7,149,400       5,535,589  
   

 

 

 
Energy Equipment & Services — 2.4%            

Dialog Group Bhd

    9,555,654       6,437,780  
   

 

 

 
Food Products — 12.3%            

IOI Corp. Bhd

    6,084,130       6,685,268  

Kuala Lumpur Kepong Bhd

    1,045,500       6,474,455  

Nestle Malaysia Bhd

    170,000       5,432,606  

PPB Group Bhd

    1,547,619       6,612,906  

QL Resources Bhd

    2,640,950       3,113,660  

Sime Darby Plantation Bhd

    4,180,055       4,904,199  
   

 

 

 
      33,223,094  
Gas Utilities — 3.0%            

Petronas Gas Bhd

    1,913,400       7,943,287  
   

 

 

 
Health Care Equipment & Supplies — 4.0%            

Hartalega Holdings Bhd(b)

    4,151,700       4,568,502  

Top Glove Corp. Bhd(b)

    12,898,300       6,297,848  
   

 

 

 
      10,866,350  
Health Care Providers & Services — 2.5%            

IHH Healthcare Bhd

    4,254,100       6,674,153  
   

 

 

 
Hotels, Restaurants & Leisure — 4.0%            

Genting Bhd

    5,156,900       5,716,193  

Genting Malaysia Bhd

    7,183,600       5,141,425  
   

 

 

 
      10,857,618  
Security   Shares     Value  

Industrial Conglomerates — 2.3%

   

HAP Seng Consolidated Bhd(b)

    1,508,700     $ 2,723,817  

Sime Darby Bhd

    6,578,755       3,562,650  
   

 

 

 
      6,286,467  
Marine — 2.1%            

MISC Bhd

    3,237,820       5,678,973  
   

 

 

 
Metals & Mining — 4.7%            

Press Metal Aluminium Holdings Bhd

    7,810,600       12,706,061  
   

 

 

 
Oil, Gas & Consumable Fuels — 1.4%            

Petronas Dagangan Bhd

    721,300       3,697,124  
   

 

 

 
Transportation Infrastructure — 2.3%            

Malaysia Airports Holdings Bhd(a)

    2,613,000       3,827,545  

Westports Holdings Bhd

    2,483,100       2,312,474  
   

 

 

 
      6,140,019  
Wireless Telecommunication Services — 7.0%  

Axiata Group Bhd

    6,655,100       6,229,497  

DiGi.Com Bhd

    7,519,700       7,269,702  

Maxis Bhd

    5,678,700       5,444,392  
   

 

 

 
      18,943,591  

Total Common Stocks — 99.6%
(Cost: $150,417,280)

      268,490,175  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 1.4%

   

BlackRock Cash Funds: Institutional,
SL Agency Shares, 0.09%(c)(d)(e)

    3,426,950       3,427,635  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.03%(c)(d)

    230,000       230,000  
   

 

 

 
      3,657,635  
   

 

 

 

Total Short-Term Investments — 1.4%
(Cost: $3,657,310)

 

    3,657,635  
   

 

 

 

Total Investments in Securities — 101.0%
(Cost: $154,074,590)

 

    272,147,810  

Other Assets, Less Liabilities — (1.0)%

 

    (2,732,344
   

 

 

 

Net Assets — 100.0%

 

  $ 269,415,466  
   

 

 

 

 

(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.

 

 

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

  25


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Malaysia ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
08/31/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
02/28/22
    Shares
Held at
02/28/22
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 8,505,154     $     $ (5,076,844 )(a)    $ 617     $ (1,292   $ 3,427,635       3,426,950     $ 147,531 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    360,000             (130,000 )(a)                   230,000       230,000       13        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 617     $ (1,292   $ 3,657,635       $ 147,544     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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

           

MSCI Emerging Markets Index

     11        03/18/22      $ 647      $ (12,251
           

 

 

 

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
 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 12,251  
  

 

 

 

 

  (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 February 28, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ (74,588
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (4,768
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

     $668,708      

 

 

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

 

 

26  

2 0 2 2   H A R E S   S E M I - 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 (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Malaysia 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

   $   79,284,789        $ 189,205,386        $        $ 268,490,175  

Money Market Funds

     3,657,635                            3,657,635  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 82,942,424        $ 189,205,386        $        $ 272,147,810  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $ (12,251      $        $           —        $ (12,251
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  27


Schedule of Investments (unaudited)

February 28, 2022

  

iShares® MSCI Pacific ex Japan ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Australia — 59.8%            

Ampol Ltd.

    273,313     $ 5,903,656  

APA Group

    1,359,563       9,939,048  

Aristocrat Leisure Ltd.

    692,078       18,983,697  

ASX Ltd.

    222,319       13,352,802  

Aurizon Holdings Ltd.

    2,106,208       5,372,749  

Australia & New Zealand Banking Group Ltd.

    3,237,310       61,288,241  

BHP Group Ltd.

    5,813,425           198,506,148  

BlueScope Steel Ltd.

    567,669       8,405,960  

Brambles Ltd.

    1,647,369       11,865,538  

Cochlear Ltd.

    75,836       12,379,773  

Coles Group Ltd.

    1,531,846       19,379,517  

Commonwealth Bank of Australia

    1,959,571       132,944,067  

Computershare Ltd.

    623,975       9,859,015  

Crown Resorts Ltd.(a)

    433,932       3,921,786  

CSL Ltd.

    549,781       104,526,576  

Dexus

    1,235,148       9,777,408  

Domino’s Pizza Enterprises Ltd.

    69,246       3,998,415  

Endeavour Group Ltd./Australia

    1,540,278       8,044,432  

Evolution Mining Ltd.

    2,100,565       6,495,341  

Fortescue Metals Group Ltd.

    1,944,687       25,907,775  

Goodman Group

    1,930,621       31,236,764  

GPT Group/The

    2,199,794       7,849,031  

IDP Education Ltd.

    238,296       4,608,547  

Insurance Australia Group Ltd.

    2,830,850       9,450,678  

Lendlease Corp. Ltd.

    788,500       6,083,095  

Macquarie Group Ltd.

    389,182       51,217,615  

Medibank Pvt Ltd.

    3,162,617       7,294,608  

Mineral Resources Ltd.

    195,183       6,414,702  

Mirvac Group

    4,527,646       8,443,671  

National Australia Bank Ltd.

    3,757,834       78,925,917  

Newcrest Mining Ltd.

    939,319       17,425,119  

Northern Star Resources Ltd.

    1,270,535       9,469,279  

Orica Ltd.

    465,457       4,962,579  

Origin Energy Ltd.

    2,022,524       8,398,854  

Qantas Airways Ltd.(a)

    1,076,753       3,989,882  

QBE Insurance Group Ltd.

    1,695,584       14,149,677  

Ramsay Health Care Ltd.

    210,273       9,808,753  

REA Group Ltd.

    60,564       5,837,707  

Reece Ltd.

    331,865       4,698,283  

Rio Tinto Ltd.

    426,294       36,762,319  

Santos Ltd.

    3,694,966       19,678,776  

Scentre Group

    5,960,480       13,241,810  

SEEK Ltd.

    386,110       7,537,956  

Sonic Healthcare Ltd.

    523,297       13,353,282  

South32 Ltd.

    5,355,616       18,798,277  

Stockland

    2,741,359       8,295,060  

Suncorp Group Ltd.

    1,449,939       11,278,676  

Tabcorp Holdings Ltd.

    2,556,012       9,243,626  

Telstra Corp. Ltd.

    4,758,677       13,674,689  

Transurban Group

    3,525,225       32,560,397  

Treasury Wine Estates Ltd.

    828,950       6,992,350  

Vicinity Centres

    4,433,555       5,773,109  

Washington H Soul Pattinson & Co. Ltd.

    246,935       4,530,260  

Wesfarmers Ltd.

    1,302,069       45,663,378  

Westpac Banking Corp.

    4,212,904       69,623,471  

WiseTech Global Ltd.

    167,397       5,359,385  

Woodside Petroleum Ltd.

    1,116,800       23,336,953  
Security   Shares     Value  
Australia (continued)            

Woolworths Group Ltd.

    1,391,797     $ 35,988,637  
   

 

 

 
        1,342,809,116  
Cayman Islands — 1.3%            

CK Hutchison Holdings Ltd.

    3,083,732       21,620,239  

Grab Holdings Ltd., Class A(a)

    1,246,513       7,179,915  
   

 

 

 
      28,800,154  
Hong Kong — 23.0%            

AIA Group Ltd.

    13,891,414       144,246,286  

BOC Hong Kong Holdings Ltd.

    4,284,500       15,403,051  

Budweiser Brewing Co. APAC Ltd.(b)

    1,977,100       6,136,858  

Chow Tai Fook Jewellery Group Ltd.(a)

    2,330,000       4,838,334  

CK Asset Holdings Ltd.

    2,317,732       14,638,896  

CK Infrastructure Holdings Ltd.

    770,708       4,784,556  

CLP Holdings Ltd.

    1,886,000       19,213,226  

ESR Cayman Ltd.(a)(b)

    2,274,800       7,017,817  

Futu Holdings Ltd., ADR(a)(c)

    61,722       2,638,616  

Galaxy Entertainment Group Ltd.(a)

    2,501,000       13,948,654  

Hang Lung Properties Ltd.

    2,308,736       4,839,287  

Hang Seng Bank Ltd.

    878,200       16,194,964  

Henderson Land Development Co. Ltd.

    1,690,442       7,028,078  

HK Electric Investments & HK Electric Investments Ltd., Class SS

    3,088,000       3,046,667  

HKT Trust & HKT Ltd., Class SS

    4,350,338       5,867,551  

Hong Kong & China Gas Co. Ltd.

    12,857,253       19,443,333  

Hong Kong Exchanges & Clearing Ltd.

    1,368,500       66,312,930  

Hongkong Land Holdings Ltd.(c)

    1,324,000       7,169,986  

Jardine Matheson Holdings Ltd.

    247,700       14,738,150  

Link REIT

    2,400,786       19,400,268  

Melco Resorts & Entertainment Ltd., ADR(a)

    251,304       2,518,066  

MTR Corp. Ltd.

    1,778,286       9,217,749  

New World Development Co. Ltd.

    1,712,480       6,849,305  

Power Assets Holdings Ltd.

    1,593,000       10,039,925  

Sands China Ltd.(a)

    2,788,000       7,353,297  

Sino Land Co. Ltd.

    3,800,800       4,797,365  

SITC International Holdings Co. Ltd.(c)

    1,535,000       6,329,046  

Sun Hung Kai Properties Ltd.

    1,497,500       17,409,606  

Swire Pacific Ltd., Class A

    579,500       3,202,440  

Swire Properties Ltd.

    1,363,000       3,544,506  

Techtronic Industries Co. Ltd.

    1,580,207       26,478,037  

WH Group Ltd.(b)

    9,577,000       6,688,343  

Wharf Real Estate Investment Co. Ltd.

    1,920,600       8,622,120  

Xinyi Glass Holdings Ltd.

    2,081,000       5,543,244  
   

 

 

 
      515,500,557  
Ireland — 0.7%            

James Hardie Industries PLC

    511,171       16,688,223  
   

 

 

 
Malta — 0.0%            

BGP Holdings PLC(a)(d)

    27,004,595       303  
   

 

 

 
New Zealand — 2.1%            

Auckland International Airport Ltd.(a)

    1,437,387       6,959,861  

Fisher & Paykel Healthcare Corp. Ltd.

    662,668       12,452,864  

Mercury NZ Ltd.

    791,665       3,083,779  

Meridian Energy Ltd.

    1,492,579       5,067,444  

Ryman Healthcare Ltd.

    495,172       3,368,104  

Spark New Zealand Ltd.

    2,139,767       6,569,727  

Xero Ltd.(a)

    153,711       10,568,860  
   

 

 

 
      48,070,639  
Singapore — 11.8%            

Ascendas Real Estate Investment Trust(c)

    3,853,880       7,902,154  

 

 

28  

2 0 2 2   H A R E S   S E M I - 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 (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Pacific ex Japan ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Singapore (continued)

   

CapitaLand Integrated Commercial Trust

    5,590,238     $ 8,748,807  

Capitaland Investment Ltd/Singapore(a)

    3,030,000       8,302,987  

City Developments Ltd.

    471,700       2,496,005  

DBS Group Holdings Ltd.

    2,080,100       52,293,989  

Genting Singapore Ltd.

    6,873,900       3,929,612  

Keppel Corp. Ltd.

    1,660,100       7,390,686  

Mapletree Commercial Trust

    2,499,600       3,352,029  

Mapletree Logistics Trust(c)

    3,633,584       4,724,134  

Oversea-Chinese Banking Corp. Ltd.

    3,888,524       33,695,694  

Sea Ltd., ADR(a)

    367,459       53,502,030  

Singapore Airlines Ltd.(a)(c)

    1,535,450       5,813,956  

Singapore Exchange Ltd.(c)

    916,700       6,359,869  

Singapore Technologies Engineering Ltd.

    1,783,700       5,054,868  

Singapore Telecommunications Ltd.

    9,482,428       17,786,928  

United Overseas Bank Ltd.

    1,355,300       30,122,055  

UOL Group Ltd.

    540,800       2,802,676  

Venture Corp. Ltd.

    322,600       4,208,120  

Wilmar International Ltd.

    2,206,000       7,169,572  
   

 

 

 
      265,656,171  
   

 

 

 

Total Common Stocks — 98.7%
(Cost: $2,141,758,881)

 

    2,217,525,163  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 0.4%

   

BlackRock Cash Funds: Institutional,
SL Agency Shares, 0.09%(e)(f)(g)

    7,097,787       7,099,206  
Security   Shares     Value  

Money Market Funds (continued)

   

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.03%(e)(f)

    830,000     $ 830,000  
   

 

 

 
      7,929,206  
   

 

 

 

Total Short-Term Investments — 0.4%
(Cost: $7,927,763)

 

    7,929,206  
   

 

 

 

Total Investments in Securities — 99.1%
(Cost: $2,149,686,644)

 

    2,225,454,369  

Other Assets, Less Liabilities — 0.9%

 

    21,286,968  
   

 

 

 

Net Assets — 100.0%

 

  $  2,246,741,337  
   

 

 

 

 

(a)

Non-income producing security.

(b)

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

(c)

All or a portion of this security is on loan.

(d)

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

(e)

Affiliate of the Fund.

(f)

Annualized 7-day yield as of period end.

(g)

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

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
08/31/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
02/28/22
    Shares
Held at
02/28/22
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 24,751,750     $     $ (17,647,440 )(a)    $ (4,562   $ (542   $ 7,099,206       7,097,787     $ 621,261 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    930,000             (100,000 )(a)                   830,000       830,000       47        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (4,562   $ (542   $ 7,929,206       $ 621,308     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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

       

ASX SPI 200 Index

    195       03/17/22     $ 24,946     $ (124,820

 

 

 

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

  29


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Pacific ex Japan ETF

 

Futures Contracts (continued)

 

 

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

 

 

MSCI Singapore Index

    388       03/30/22     $ 9,551     $ (150,121
       

 

 

 
        $ (274,941
       

 

 

 

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
 

 

 

Liabilities — Derivative Financial Instruments

 

Futures contracts

 

Unrealized depreciation on futures contracts(a)

  $ 274,941  
 

 

 

 

 

  (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 February 28, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

 

Futures contracts

  $ (948,370
 

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

 

Futures contracts

  $ (221,456
 

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

 

Average notional value of contracts — long

  $ 22,032,648      

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
    Level 1      Level 2     Level 3      Total  

 

 

Investments

         

Assets

         

Common Stocks

  $ 94,330,282      $ 2,123,194,578     $ 303      $ 2,217,525,163  

Money Market Funds

    7,929,206                     7,929,206  
 

 

 

    

 

 

   

 

 

    

 

 

 
  $   102,259,488      $ 2,123,194,578     $             303      $ 2,225,454,369  
 

 

 

    

 

 

   

 

 

    

 

 

 

Derivative financial instruments(a)

         

Liabilities

         

Futures Contracts

  $      $ (274,941   $      $ (274,941
 

 

 

    

 

 

   

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

30  

2 0 2 2   H A R E S   S E M I - 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 (unaudited)

February 28, 2022

  

iShares® MSCI Singapore ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 3.3%            

Singapore Technologies Engineering Ltd.

    7,190,900     $ 20,378,455  
   

 

 

 
Airlines — 3.5%            

Singapore Airlines Ltd.(a)(b)

    5,757,367       21,800,176  
   

 

 

 
Banks — 32.4%            

DBS Group Holdings Ltd.

    4,302,700       108,170,446  

Oversea-Chinese Banking Corp. Ltd.

    7,631,250       66,127,987  

United Overseas Bank Ltd.

    1,214,100       26,983,832  
   

 

 

 
      201,282,265  
Capital Markets — 3.5%            

Singapore Exchange Ltd.

    3,155,700       21,893,572  
   

 

 

 
Diversified Telecommunication Services — 4.7%        

Singapore Telecommunications Ltd.

    15,603,268       29,268,264  
   

 

 

 
Electronic Equipment, Instruments & Components — 2.9%  

Venture Corp. Ltd.

    1,379,800       17,998,651  
   

 

 

 
Entertainment — 16.9%            

Sea Ltd., ADR(a)

    721,403       105,036,277  
   

 

 

 
Equity Real Estate Investment Trusts (REITs) — 12.6%        

Ascendas Real Estate Investment Trust

    13,040,294       26,738,355  

CapitaLand Integrated Commercial Trust

    9,834,494       15,391,132  

Mapletree Commercial Trust

    12,284,200       16,473,432  

Mapletree Logistics Trust

    15,010,913       19,516,146  
   

 

 

 
      78,119,065  
Food Products — 4.0%            

Wilmar International Ltd.

    7,577,700       24,627,771  
   

 

 

 
Hotels, Restaurants & Leisure — 2.9%            

Genting Singapore Ltd.

    31,061,242       17,756,826  
   

 

 

 
Industrial Conglomerates — 4.1%            

Keppel Corp. Ltd.

    5,790,700       25,779,921  
   

 

 

 
Security   Shares     Value  
Real Estate Management & Development — 7.0%        

Capitaland Investment Ltd/Singapore(a)

    5,255,900     $ 14,402,531  

City Developments Ltd.

    2,706,800       14,323,057  

UOL Group Ltd.

    2,861,300       14,828,581  
   

 

 

 
      43,554,169  
Road & Rail — 3.3%            

Grab Holdings Ltd., Class A(a)

    3,597,596       20,722,153  
   

 

 

 

Total Common Stocks — 101.1%
(Cost: $635,631,162)

      628,217,565  
   

 

 

 

Short-Term Investments

 

Money Market Funds — 0.2%

 

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.09%(c)(d)(e)

    564,659       564,772  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.03%(c)(d)

    1,030,000       1,030,000  
   

 

 

 
      1,594,772  
   

 

 

 

Total Short-Term Investments — 0.2%
(Cost: $1,594,339)

 

    1,594,772  
   

 

 

 

Total Investments in Securities — 101.3%
(Cost: $637,225,501)

 

    629,812,337  

Other Assets, Less Liabilities — (1.3)%

 

    (8,339,783
   

 

 

 

Net Assets — 100.0%

 

  $   621,472,554  
   

 

 

 

 

(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.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

   
     Affiliated Issuer   Value at
08/31/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
02/28/22
    Shares
Held at
02/28/22
    Income     Capital
Gain
Distributions
from
Underlying
Funds
          
 

 

   
 

BlackRock Cash Funds: Institutional, SL Agency Shares

    $20,464,697     $     $ (19,895,259 )(a)    $ (3,093   $ (1,573   $ 564,772       564,659     $ 29,474 (b)    $    
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    300,000       730,000 (a)                        1,030,000       1,030,000       24          
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   
          $ (3,093   $ (1,573   $ 1,594,772       $ 29,498     $    
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

  (a)

Represents net amount purchased (sold).

 
  (b)

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

 

 

 

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

  31


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Singapore ETF

 

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

          

MSCI Singapore Index

    80        03/30/22      $ 1,969      $ (53,965
          

 

 

 

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
 

 

 

Liabilities — Derivative Financial Instruments

 

Futures contracts

 

Unrealized depreciation on futures contracts(a)

  $ 53,965  
 

 

 

 

 

  (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 February 28, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

   
    

Equity

Contracts

 

Net Realized Gain (Loss) from:

 

Futures contracts

  $ (190,681
 

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

 

Futures contracts

  $ 26,256  
 

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

 

Average notional value of contracts — long

  $ 2,630,814      

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
    Level 1      Level 2     Level 3      Total  

 

 

Investments

         

Assets

         

Common Stocks

  $ 125,758,430      $ 502,459,135     $             —      $ 628,217,565  

Money Market Funds

    1,594,772                     1,594,772  
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 127,353,202      $ 502,459,135     $      $ 629,812,337  
 

 

 

    

 

 

   

 

 

    

 

 

 

Derivative financial instruments(a)

         

Liabilities

         

Futures Contracts

  $      $ (53,965   $      $ (53,965
 

 

 

    

 

 

   

 

 

    

 

 

 

 

  (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   H A R E S   S E M I - 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 (unaudited)

February 28, 2022

  

iShares® MSCI Taiwan ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Auto Components — 0.4%            

Cheng Shin Rubber Industry Co. Ltd.(a)

    22,599,670     $ 28,911,765  
   

 

 

 

Banks — 10.5%

   

Chang Hwa Commercial Bank Ltd.

    58,965,840       37,436,479  

CTBC Financial Holding Co. Ltd.

    121,265,325       118,534,124  

E.Sun Financial Holding Co Ltd(a)

    85,553,789       90,434,868  

First Financial Holding Co. Ltd.

    76,791,123       70,704,462  

Hua Nan Financial Holdings Co. Ltd.

    76,068,924       60,317,333  

Mega Financial Holding Co. Ltd.(a)

    76,193,271       102,678,120  

Shanghai Commercial & Savings Bank Ltd/The

    28,925,306       47,647,105  

SinoPac Financial Holdings Co. Ltd.

    99,799,724       61,283,125  

Taishin Financial Holding Co. Ltd.

    96,580,978       67,686,382  

Taiwan Cooperative Financial Holding Co. Ltd.

    78,339,460       74,319,367  
   

 

 

 
      731,041,365  
Chemicals — 4.1%            

Formosa Chemicals & Fibre Corp.

    25,534,610       72,392,480  

Formosa Plastics Corp.

    27,003,518       101,965,689  

Nan Ya Plastics Corp.

    34,563,938       109,014,653  
   

 

 

 
      283,372,822  
Communications Equipment — 0.6%            

Accton Technology Corp.(a)

    4,569,000       41,434,279  
   

 

 

 

Construction Materials — 1.5%

   

Asia Cement Corp.

    22,683,136       36,661,760  

Taiwan Cement Corp.(a)

    37,905,646       64,349,493  
   

 

 

 
      101,011,253  
Diversified Financial Services — 2.3%            

Chailease Holding Co. Ltd.(a)

    10,197,017       92,543,130  

Yuanta Financial Holding Co. Ltd.

    74,718,657       66,745,620  
   

 

 

 
      159,288,750  
Diversified Telecommunication Services — 1.6%  

Chunghwa Telecom Co. Ltd.

    24,843,648       110,420,493  
   

 

 

 

Electrical Equipment — 0.4%

   

Voltronic Power Technology Corp.

    508,000       26,382,079  

Ya Hsin Industrial Co. Ltd.(b)

    6,845,461       2  
   

 

 

 
      26,382,081  
Electronic Equipment, Instruments & Components — 13.8%  

AU Optronics Corp.(a)

    73,182,830       54,790,284  

Delta Electronics Inc.(a)

    13,273,180       118,292,001  

E Ink Holdings Inc.

    6,566,000       35,386,131  

Foxconn Technology Co. Ltd.(a)

    13,884,499       31,958,673  

Hon Hai Precision Industry Co. Ltd.(a)

    76,038,002       282,447,573  

Innolux Corp.(a)

    78,492,873       47,763,967  

Largan Precision Co. Ltd.(a)

    711,794       51,728,067  

Nan Ya Printed Circuit Board Corp.(a)

    2,986,000       57,180,753  

Pacific Electric Wire & Cable Co. Ltd.(b)

    197        

Synnex Technology International Corp.

    17,178,364       44,474,213  

Unimicron Technology Corp.

    11,338,000       105,418,402  

WPG Holdings Ltd.

    21,015,604       41,941,031  

Yageo Corp.(a)

    3,688,125       60,510,162  

Zhen Ding Technology Holding Ltd.(a)

    6,623,072       21,967,325  
   

 

 

 
      953,858,582  
Food & Staples Retailing — 0.7%            

President Chain Store Corp.

    4,980,215       46,537,665  
   

 

 

 
Food Products — 1.2%            

Uni-President Enterprises Corp.(a)

    33,099,189       79,633,081  
   

 

 

 
Security   Shares     Value  

Household Durables — 0.4%

   

Nien Made Enterprise Co. Ltd.(a)

    2,309,000     $ 29,933,314  
   

 

 

 
Industrial Conglomerates — 0.5%  

Far Eastern New Century Corp.

    34,563,843       36,639,173  
   

 

 

 

Insurance — 6.0%

   

Cathay Financial Holding Co. Ltd.

    56,061,315       126,061,465  

China Development Financial Holding Corp.

    148,947,587       102,001,470  

Fubon Financial Holding Co. Ltd.

    51,843,689       139,981,278  

Shin Kong Financial Holding Co. Ltd.(a)

    124,949,273       50,671,242  
   

 

 

 
      418,715,455  
Internet & Direct Marketing Retail — 0.0%            

momo.com Inc.

    10,000       355,990  
   

 

 

 

Leisure Products — 0.5%

   

Giant Manufacturing Co. Ltd.(a)

    3,479,590       36,124,405  
   

 

 

 

Machinery — 1.0%

   

Airtac International Group(a)

    1,249,826       41,571,830  

Hiwin Technologies Corp.

    3,143,591       30,013,648  
   

 

 

 
      71,585,478  
Marine — 2.5%            

Evergreen Marine Corp. Taiwan Ltd.(a)

    19,324,533       101,516,734  

Wan Hai Lines Ltd.(a)

    4,373,200       29,787,859  

Yang Ming Marine Transport Corp.(a)(c)

    10,712,000       45,274,232  
   

 

 

 
      176,578,825  
Metals & Mining — 1.6%            

China Steel Corp.(a)

    83,163,977       108,142,645  
   

 

 

 
Oil, Gas & Consumable Fuels — 0.6%            

Formosa Petrochemical Corp.(a)

    11,364,950       39,977,162  
   

 

 

 
Pharmaceuticals — 0.4%            

Oneness Biotech Co. Ltd.(a)(c)

    3,455,000       30,501,605  
   

 

 

 
Real Estate Management & Development — 0.7%  

Ruentex Development Co. Ltd.(a)

    18,847,459       48,664,629  
   

 

 

 
Semiconductors & Semiconductor Equipment — 37.5%  

ASE Technology Holding Co. Ltd.(a)

    22,818,432       82,472,829  

ASMedia Technology Inc.(a)

    422,000       26,125,310  

eMemory Technology Inc.

    438,000       29,559,416  

Globalwafers Co. Ltd.(a)

    1,996,000       49,405,823  

MediaTek Inc.(a)

    9,354,175       369,637,968  

Nanya Technology Corp.(a)

    12,539,000       35,114,224  

Novatek Microelectronics Corp.(a)

    4,414,544       73,186,362  

Parade Technologies Ltd.

    438,000       30,240,246  

Realtek Semiconductor Corp.(a)

    3,634,063       59,918,278  

Silergy Corp.(a)

    631,000       84,081,467  

Taiwan Semiconductor Manufacturing Co. Ltd.

    69,792,882       1,500,515,984  

United Microelectronics Corp.(a)

    77,763,501       146,533,741  

Vanguard International Semiconductor
Corp.(a)

    8,853,000       40,178,135  

Win Semiconductors Corp.(a)

    2,944,000       32,230,114  

Winbond Electronics Corp.(a)

    35,142,000       42,321,197  
   

 

 

 
      2,601,521,094  
Specialty Retail — 0.8%            

Hotai Motor Co. Ltd.(a)

    2,477,000       56,082,842  
   

 

 

 
Technology Hardware, Storage & Peripherals — 6.9%  

Acer Inc.(a)

    36,322,737       37,696,764  

Advantech Co. Ltd.(a)

    3,528,827       46,469,386  

Asustek Computer Inc.(a)

    5,490,857       73,250,636  

 

 

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

  33


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Taiwan ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Technology Hardware, Storage & Peripherals (continued)

 

Catcher Technology Co. Ltd.

    2,944,743     $ 15,114,806  

Compal Electronics Inc.(a)

    41,383,554       37,700,895  

Inventec Corp.(a)

    37,264,868       34,414,094  

Lite-On Technology Corp.

    19,443,071       47,808,165  

Micro-Star International Co. Ltd.(a)

    7,086,000       39,942,199  

Pegatron Corp.

    15,964,037       39,567,771  

Quanta Computer Inc.

    20,431,240       68,319,948  

Wiwynn Corp.(a)

    1,087,000       38,822,856  
   

 

 

 
      479,107,520  
Textiles, Apparel & Luxury Goods — 1.6%  

Eclat Textile Co. Ltd.

    2,081,601       43,147,799  

Feng TAY Enterprise Co. Ltd.

    4,737,747       35,316,850  

Pou Chen Corp.

    30,547,103       35,227,306  
   

 

 

 
      113,691,955  
Transportation Infrastructure — 0.4%            

Taiwan High Speed Rail Corp.(a)

    29,047,000       30,742,522  
   

 

 

 
Wireless Telecommunication Services — 1.3%  

Far EasTone Telecommunications Co. Ltd.(a)

    16,203,259       40,076,030  

Taiwan Mobile Co. Ltd.

    12,963,609       47,938,007  
   

 

 

 
      88,014,037  
   

 

 

 

Total Common Stocks — 99.8%
(Cost: $2,784,948,911)

      6,928,270,787  
   

 

 

 
Security   Shares     Value  

Short-Term Investments

   
Money Market Funds — 8.3%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 0.09%(d)(e)(f)

    572,474,767     $ 572,589,262  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.03%(d)(e)

    1,680,000       1,680,000  
   

 

 

 
      574,269,262  
   

 

 

 

Total Short-Term Investments — 8.3%
(Cost: $574,285,708)

      574,269,262  
   

 

 

 

Total Investments in Securities — 108.1%
(Cost: $3,359,234,619)

      7,502,540,049  

Other Assets, Less Liabilities — (8.1)%

      (565,238,473
   

 

 

 

Net Assets — 100.0%

    $   6,937,301,576  
   

 

 

 

 

(a) 

All or a portion of this security is on loan.

(b) 

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

(c) 

Non-income producing security.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

   
    Affiliated Issuer    Value at
08/31/21
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
02/28/22
    

Shares

Held at
02/28/22

     Income     

Capital

Gain
Distributions
from
Underlying
Funds

     
 

 

   

    

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 836,443,148      $      $ (263,644,310 )(a)     $ (133,896    $ (75,680    $ 572,589,262        572,474,767      $ 5,667,039 (b)     $         
 

BlackRock Cash Funds: Treasury, SL Agency Shares

     46,300,000               (44,620,000 )(a)                     1,680,000        1,680,000        217           
             

 

 

    

 

 

    

 

 

       

 

 

    

 

 

   
              $   (133,896    $ (75,680    $ 574,269,262         $ 5,667,256      $    
             

 

 

    

 

 

    

 

 

       

 

 

    

 

 

   

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 

Long Contracts

           

FTSE Taiwan Index

     147        03/30/22      $ 9,167      $ (173,233
           

 

 

 

 

 

34  

2 0 2 2   H A R E S   S E M I - 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 (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Taiwan ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
     Equity
Contracts
 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 173,233  
  

 

 

 

 

  (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 February 28, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 2,583,934  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (2,764,482
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 33,872,721      

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 30,501,605      $ 6,897,769,180      $ 2      $ 6,928,270,787  

Money Market Funds

     574,269,262                           —        574,269,262  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $   604,770,867      $ 6,897,769,180      $ 2      $ 7,502,540,049  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Liabilities

           

Futures Contracts

   $      $ (173,233    $      $ (173,233
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  35


Schedule of Investments (unaudited)

February 28, 2022

  

iShares® MSCI Thailand ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Airlines — 0.2%            

Asia Aviation PCL, NVDR(a)(b)

    7,820,247     $ 606,126  

Bangkok Airways PCL, NVDR(a)

    1,872,600       543,594  
   

 

 

 
      1,149,720  
Auto Components — 0.4%            

Sri Trang Agro-Industry PCL, NVDR

    2,350,345       1,930,105  
   

 

 

 
Banks — 3.4%            

Kiatnakin Phatra Bank PCL, NVDR

    543,973       1,139,382  

Krung Thai Bank PCL, NVDR

    8,933,700       3,843,526  

Siam Commercial Bank PCL (The), NVDR

    2,170,100       8,385,821  

Thanachart Capital PCL, NVDR

    737,200       945,886  

Tisco Financial Group PCL, NVDR

    514,800       1,544,356  
   

 

 

 
      15,858,971  
Beverages — 1.3%            

Carabao Group PCL, NVDR(b)

    766,200       2,508,504  

Osotspa PCL, NVDR

    3,071,600       3,324,905  
   

 

 

 
      5,833,409  
Building Products — 0.2%            

Dynasty Ceramic PCL, NVDR

    10,561,040       969,644  
   

 

 

 
Capital Markets — 0.7%            

Bangkok Commercial Asset Management PCL, NVDR

    4,544,700       3,059,573  
   

 

 

 
Chemicals — 3.9%            

Eastern Polymer Group PCL, NVDR

    2,494,600       756,655  

Indorama Ventures PCL, NVDR

    4,319,910       5,985,010  

PTT Global Chemical PCL, NVDR

    5,763,907       9,393,248  

TOA Paint Thailand PCL, NVDR(b)

    1,565,000       1,394,920  

Vinythai PCL, NVDR

    540,300       587,303  
   

 

 

 
      18,117,136  
Construction & Engineering — 0.6%            

CH Karnchang PCL, NVDR

    2,805,000       1,809,691  

Sino-Thai Engineering & Construction PCL, NVDR(b)

    2,743,528       1,191,445  
   

 

 

 
      3,001,136  
Construction Materials — 5.8%            

Siam Cement PCL (The), NVDR

    1,995,300       24,012,705  

Siam City Cement PCL, NVDR

    229,000       1,128,355  

Tipco Asphalt PCL, NVDR(b)

    1,800,400       1,008,334  

TPI Polene PCL, NVDR

    14,756,500       783,175  
   

 

 

 
      26,932,569  
Consumer Finance — 4.1%            

AEON Thana Sinsap Thailand PCL, NVDR(b)

    224,400       1,360,090  

JMT Network Services PCL, NVDR

    1,397,900       2,925,021  

Krungthai Card PCL, NVDR

    2,307,300       4,490,010  

Muangthai Capital PCL, NVDR

    1,897,200       3,004,868  

Ngern Tid Lor PCL, NVDR(a)

    2,668,400       3,075,185  

Ratchthani Leasing PCL, NVDR

    5,756,527       771,364  

Srisawad Corp. PCL, NVDR

    1,931,160       3,428,428  
   

 

 

 
      19,054,966  
Containers & Packaging — 1.5%            

Polyplex Thailand PCL, NVDR(b)

    686,700       572,688  

SCG Packaging PCL, NVDR

    3,292,600       6,193,091  
   

 

 

 
      6,765,779  
Diversified Telecommunication Services — 1.2%  

Jasmine International PCL, NVDR(a)(b)

    11,029,868       1,219,179  

True Corp. PCL, NVDR

    29,863,418       4,590,522  
   

 

 

 
      5,809,701  
Security   Shares     Value  
Electronic Equipment, Instruments & Components — 4.1%  

Delta Electronics Thailand PCL, NVDR

    798,400     $ 9,996,210  

Hana Microelectronics PCL, NVDR

    1,440,500       2,267,254  

Jay Mart PCL, NVDR(b)

    1,229,200       2,136,792  

KCE Electronics PCL, NVDR

    2,113,200       3,934,302  

Synnex Thailand PCL, NVDR(b)

    647,900       527,993  
   

 

 

 
      18,862,551  
Entertainment — 0.3%            

Major Cineplex Group PCL, NVDR

    1,362,100       842,064  

RS PCL, NVDR(a)(b)

    1,231,200       639,740  
   

 

 

 
      1,481,804  
Food & Staples Retailing — 7.4%            

Berli Jucker PCL, NVDR

    3,073,500       3,160,372  

CP ALL PCL, NVDR

    14,942,000       31,217,065  
   

 

 

 
      34,377,437  
Food Products — 3.4%            

Charoen Pokphand Foods PCL, NVDR

    9,907,700       7,676,645  

GFPT PCL, NVDR(b)

    1,296,700       519,870  

Ichitan Group PCL, NVDR(b)

    1,325,800       418,986  

Khon Kaen Sugar Industry PCL, NVDR(a)

    3,933,378       409,197  

R&B Food Supply PCL, NVDR(b)

    1,290,400       626,523  

Thai Union Group PCL, NVDR

    7,320,200       4,570,224  

Thai Vegetable Oil PCL, NVDR

    1,132,553       1,126,487  

Thaifoods Group PCL, NVDR(b)

    2,864,600       372,636  
   

 

 

 
      15,720,568  
Health Care Equipment & Supplies — 0.4%            

Sri Trang Gloves Thailand PCL, NVDR(b)

    2,557,300       2,015,317  
   

 

 

 
Health Care Providers & Services — 6.2%            

Bangkok Chain Hospital PCL, NVDR

    3,499,925       2,045,863  

Bangkok Dusit Medical Services PCL, NVDR

    24,407,200       17,745,573  

Bumrungrad Hospital PCL, NVDR

    1,218,876       5,743,712  

Chularat Hospital PCL, NVDR(b)

    12,736,200       1,365,546  

Thonburi Healthcare Group PCL, NVDR

    1,301,400       1,981,474  
   

 

 

 
      28,882,168  
Hotels, Restaurants & Leisure — 2.8%            

Asset World Corp. PCL, NVDR(a)

    20,449,200       3,012,603  

Central Plaza Hotel PCL, NVDR(a)

    1,042,500       1,101,733  

Minor International PCL, NVDR(a)

    7,975,710       7,553,382  

MK Restaurants Group PCL, NVDR

    827,100       1,371,063  
   

 

 

 
      13,038,781  
Independent Power and Renewable Electricity Producers — 9.4%  

Absolute Clean Energy PCL, NVDR(b)

    5,122,600       494,101  

B Grimm Power PCL, NVDR(b)

    1,996,600       2,118,307  

Banpu Power PCL, NVDR(b)

    1,959,500       1,003,596  

BCPG PCL, NVDR

    2,215,950       849,412  

CK Power PCL, NVDR

    5,244,560       821,463  

Electricity Generating PCL, NVDR

    672,400       3,703,830  

Energy Absolute PCL, NVDR(b)

    3,815,100       11,150,160  

Global Power Synergy PCL, NVDR

    1,802,500       4,160,858  

Gulf Energy Development PCL, NVDR

    7,513,400       11,681,326  

Gunkul Engineering PCL, NVDR

    10,272,722       1,960,743  

Ratch Group PCL, NVDR

    2,038,500       2,874,739  

SPCG PCL, NVDR

    1,224,500       668,112  

Super Energy Corp. PCL, NVDR

    42,126,750       1,188,721  

TPI Polene Power PCL, NVDR(b)

    6,437,500       804,373  
   

 

 

 
      43,479,741  
Industrial Conglomerates — 0.2%            

Thoresen Thai Agencies PCL, NVDR

    3,516,400       1,077,050  
   

 

 

 

 

 

36  

2 0 2 2   H A R E S   S E M I - 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 (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Thailand ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Insurance — 0.9%            

Bangkok Life Assurance PCL, NVDR(b)

    1,316,000     $ 1,765,391  

Dhipaya Group Holdings PCL(a)

    910,600       1,665,137  

TQM Corp. PCL, NVDR(b)

    693,800       960,809  
   

 

 

 
      4,391,337  
Marine — 0.5%            

Precious Shipping PCL, NVDR

    1,984,900       1,068,642  

Regional Container Lines PCL, NVDR

    844,700       1,228,516  
   

 

 

 
      2,297,158  
Media — 0.9%            

BEC World PCL, NVDR(a)(b)

    2,300,500       1,167,739  

Plan B Media PCL, NVDR(a)

    5,321,060       1,298,467  

VGI PCL, NVDR(b)

    8,777,500       1,565,691  
   

 

 

 
      4,031,897  
Multiline Retail — 1.2%            

Central Retail Corp. PCL, NVDR

    4,626,034       5,439,517  
   

 

 

 
Oil, Gas & Consumable Fuels — 13.8%            

Bangchak Corp. PCL, NVDR

    2,634,200       2,511,151  

Banpu PCL, NVDR

    13,841,300       4,638,915  

Esso Thailand PCL, NVDR(a)(b)

    2,685,400       620,032  

IRPC PCL, NVDR(b)

    28,738,700       3,368,771  

Prima Marine PCL, NVDR

    2,532,900       446,807  

PTT Exploration & Production PCL, NVDR

    3,557,784       14,979,171  

PTT PCL, NVDR

    25,581,900       31,140,041  

Siamgas & Petrochemicals PCL, NVDR

    1,402,500       598,560  

Star Petroleum Refining PCL, NVDR(a)

    4,449,900       1,223,589  

Thai Oil PCL, NVDR

    2,868,800       4,769,029  
   

 

 

 
      64,296,066  
Pharmaceuticals — 0.3%            

Mega Lifesciences PCL, NVDR

    896,200       1,180,509  
   

 

 

 
Real Estate Management & Development — 6.4%  

Amata Corp. PCL, NVDR

    2,217,800       1,456,901  

AP Thailand PCL, NVDR

    6,067,186       1,972,139  

Bangkok Land PCL, NVDR(b)

    28,889,400       919,510  

Central Pattana PCL, NVDR

    5,174,100       8,798,721  

Land & Houses PCL, NVDR

    21,389,400       6,299,211  

MBK PCL, NVDR(a)

    2,235,700       859,009  

Origin Property PCL, NVDR

    1,874,700       686,463  

Pruksa Holding PCL, NVDR

    1,978,800       872,390  

Quality Houses PCL, NVDR

    19,178,232       1,341,518  

Sansiri PCL, NVDR(b)

    30,579,237       1,158,218  

SC Asset Corp. PCL, NVDR

    3,744,704       446,897  

Singha Estate PCL, NVDR(a)(b)

    7,788,400       464,801  

Supalai PCL, NVDR

    3,281,600       2,210,050  

WHA Corp. PCL, NVDR

    20,983,640       2,190,269  
   

 

 

 
      29,676,097  
Road & Rail — 1.3%            

BTS Group Holdings PCL, NVDR

    20,195,600       5,887,026  
   

 

 

 
Specialty Retail — 4.3%            

Com7 PCL, NVDR

    1,380,800       3,505,346  

Dohome PCL, NVDR(b)

    1,559,910       1,131,019  

Home Product Center PCL, NVDR

    15,132,473       7,086,214  

PTG Energy PCL, NVDR(b)

    2,142,500       947,979  

PTT Oil & Retail Business PCL, NVDR

    7,670,400       6,078,093  
Security   Shares     Value  
Specialty Retail (continued)            

Singer Thailand PCL, NVDR

    715,524     $ 1,062,875  
   

 

 

 
      19,811,526  
Transportation Infrastructure — 5.9%            

Airports of Thailand PCL, NVDR(a)

    10,967,800       21,669,436  

Bangkok Aviation Fuel Services PCL,
NVDR(a)(b)

    491,800       388,409  

Bangkok Expressway & Metro PCL, NVDR(b)

    19,542,253       5,343,274  
   

 

 

 
      27,401,119  
Water Utilities — 0.4%            

Eastern Water Resources Development and
Management PCL, NVDR(b)

    1,494,700       349,945  

TTW PCL, NVDR(b)

    3,576,666       1,258,811  

WHA Utilities and Power PCL, NVDR(b)

    2,945,100       368,385  
   

 

 

 
      1,977,141  
Wireless Telecommunication Services — 6.1%  

Advanced Info Service PCL, NVDR

    3,044,219       21,429,220  

Intouch Holdings PCL, NVDR

    2,876,000       6,687,700  
   

 

 

 
      28,116,920  
   

 

 

 

Total Common Stocks — 99.5%
(Cost: $512,847,245)

      461,924,439  
   

 

 

 

Rights

   

Food Products — 0.0%

   

Khon Kaen Sugar, (Expires 02/28/22)(a)

    35,671        
   

 

 

 

Media — 0.0%

   

VGI PCL, (Expires 03/25/22)(a)

    2,385,750       58,412  
   

 

 

 

Oil, Gas & Consumable Fuels — 0.0%

   

Bangchak Corp. PCL, (Expires 02/28/22)(a)

    117,773        
   

 

 

 

Total Rights — 0.0%
(Cost: $0)

      58,412  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 3.0%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.09%(c)(d)(e)

    12,971,255       12,973,849  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.03%(c)(d)

    1,080,000       1,080,000  
   

 

 

 
      14,053,849  
   

 

 

 

Total Short-Term Investments — 3.0%
(Cost: $14,051,763)

      14,053,849  
   

 

 

 

Total Investments in Securities — 102.5%
(Cost: $526,899,008)

      476,036,700  

Other Assets, Less Liabilities — (2.5)%

      (11,435,215
   

 

 

 

Net Assets — 100.0%

    $   464,601,485  
   

 

 

 

 

(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.

 

 

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

  37


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Thailand ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

   
       Affiliated Issuer   Value at
08/31/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
02/28/22
    Shares
Held at
02/28/22
    Income    

Capital

Gain

Distributions

from

Underlying

Funds

   

    

 

 

   
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 33,250,286     $     $ (20,267,365 )(a)    $ (6,515   $ (2,557   $ 12,973,849       12,971,255     $ 1,273,311 (b)    $    
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    1,130,000             (50,000 )(a)                   1,080,000       1,080,000       50          
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   
          $ (6,515   $ (2,557   $ 14,053,849       $ 1,273,361     $    
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

  (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

       

MSCI Emerging Markets Index

    35       03/18/22     $ 2,057     $ (46,645
       

 

 

 

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
 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 46,645  
  

 

 

 

 

  (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 February 28, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ (341
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (72,558
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

  

Average notional value of contracts — long

   $ 1,605,215  

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

 

 

38  

2 0 2 2   H A R E S   S E M I - 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 (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Thailand 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

   $ 22,399,333        $ 439,525,106        $        $ 461,924,439  

Rights

              58,412                   58,412  

Money Market Funds

     14,053,849                            14,053,849  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 36,453,182        $ 439,583,518        $        $ 476,036,700  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $ (46,645      $        $        $ (46,645
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  39


 

Statements of Assets and Liabilities (unaudited)

February 28, 2022

 

   

iShares

MSCI Hong Kong
ETF

    iShares
MSCI Japan
Small-Cap
ETF
   

iShares

MSCI

Malaysia

ETF

    iShares
MSCI Pacific ex
Japan ETF
 

 

 

ASSETS

       

Investments in securities, at value (including securities on loan)(a):

       

Unaffiliated(b)

  $ 852,800,798     $ 72,469,151     $ 268,490,175     $ 2,217,525,163  

Affiliated(c)

    1,746,726       39,031       3,657,635       7,929,206  

Cash

    3,065       5,062       1,214        

Foreign currency, at value(d)

    52,195       14,397       150,228       5,166,613  

Cash pledged:

       

Futures contracts(e)

    15,000             19,000        

Foreign currency collateral pledged:

       

Futures contracts(e)

          9,490             2,341,760  

Receivables:

       

Investments sold

    7,511,989       988,297       869,273       48,761,588  

Securities lending income — Affiliated

    281       7       6,200       47,207  

Variation margin on futures contracts

          4,235             459,504  

Capital shares sold

                9,631,870        

Dividends

    22       228,255       340,055       16,286,359  

Tax reclaims

          810              
 

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

    862,130,076       73,758,735       283,165,650       2,298,517,400  
 

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES

       

Bank overdraft

                      104,392  

Collateral on securities loaned, at value

    1,036,830       9,031       3,432,098       7,136,638  

Payables:

       

Investments purchased

    7,608,538       964,264       10,220,061       43,713,981  

Variation margin on futures contracts

    6,308             2,559        

Investment advisory fees

    351,597       27,554       95,466       821,052  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    9,003,273       1,000,849       13,750,184       51,776,063  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS

  $ 853,126,803     $ 72,757,886     $ 269,415,466     $ 2,246,741,337  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS CONSIST OF:

       

Paid-in capital

  $ 1,471,908,959     $ 98,772,177     $ 290,922,821     $ 2,825,774,249  

Accumulated loss

    (618,782,156     (26,014,291     (21,507,355     (579,032,912
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS

  $ 853,126,803     $ 72,757,886     $ 269,415,466     $ 2,246,741,337  
 

 

 

   

 

 

   

 

 

   

 

 

 

Shares outstanding

    37,500,000       1,000,000       10,500,000       48,300,000  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value

  $ 22.75     $ 72.76     $ 25.66     $ 46.52  
 

 

 

   

 

 

   

 

 

   

 

 

 

Shares authorized

    375 million       500 million       300 million       1 billion  
 

 

 

   

 

 

   

 

 

   

 

 

 

Par value

  $ 0.001     $ 0.001     $ 0.001     $ 0.001  
 

 

 

   

 

 

   

 

 

   

 

 

 

(a) Securities loaned, at value

  $ 1,042,929     $ 8,661     $ 4,113,207     $ 6,954,948  

(b) Investments, at cost — Unaffiliated

  $ 975,239,202     $ 85,859,628     $ 150,417,280     $ 2,141,758,881  

(c)  Investments, at cost — Affiliated

  $ 1,746,807     $ 39,031     $ 3,657,310     $ 7,927,763  

(d) Foreign currency, at cost

  $ 52,200     $ 14,283     $ 150,174     $ 5,151,231  

(e) Foreign currency collateral pledged, at cost

  $     $ 9,556     $     $ 2,333,982  

See notes to financial statements.

 

 

40  

2 0 2 2   H A R E S   S E M I - 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


 

Statements of Assets and Liabilities (unaudited) (continued)

February 28, 2022

 

   

iShares

MSCI

Singapore

ETF

     iShares
MSCI Taiwan ETF
    

iShares

MSCI

Thailand ETF

 

 

 

ASSETS

       

Investments in securities, at value (including securities on loan)(a):

       

Unaffiliated(b)

  $ 628,217,565      $ 6,928,270,787      $ 461,982,851  

Affiliated(c)

    1,594,772        574,269,262        14,053,849  

Cash

    6,856        1,418        7,579  

Foreign currency, at value(d)

    1,581,087        10,607,816        130,374  

Cash pledged:

       

Futures contracts

           441,000        63,000  

Foreign currency collateral pledged:

       

Futures contracts(e)

    114,598                

Receivables:

       

Investments sold

    60,426,930        189,699,442         

Securities lending income — Affiliated

    2,076        971,025        144,962  

Variation margin on futures contracts

    4,832        107,240         

Capital shares sold

    626,675               33,302  

Dividends

    773,249        398,340        1,480,023  
 

 

 

    

 

 

    

 

 

 

Total assets

    693,348,640        7,704,766,330        477,895,940  
 

 

 

    

 

 

    

 

 

 

LIABILITIES

       

Collateral on securities loaned, at value

    580,540        572,842,804        12,986,536  

Payables:

       

Investments purchased

    71,065,472        129,266,209        107,566  

Variation margin on futures contracts

                  11,125  

Capital shares redeemed

           61,578,386         

Investment advisory fees

    230,074        3,134,738        189,228  

Foreign taxes

           642,617         
 

 

 

    

 

 

    

 

 

 

Total liabilities

    71,876,086        767,464,754        13,294,455  
 

 

 

    

 

 

    

 

 

 

NET ASSETS

  $ 621,472,554      $ 6,937,301,576      $ 464,601,485  
 

 

 

    

 

 

    

 

 

 

NET ASSETS CONSIST OF:

       

Paid-in capital

  $ 882,252,917      $ 2,935,832,565      $ 634,196,709  

Accumulated earnings (loss)

    (260,780,363      4,001,469,011        (169,595,224
 

 

 

    

 

 

    

 

 

 

NET ASSETS

  $ 621,472,554      $ 6,937,301,576      $ 464,601,485  
 

 

 

    

 

 

    

 

 

 

Shares outstanding

    29,700,000        108,300,000        5,850,000  
 

 

 

    

 

 

    

 

 

 

Net asset value

  $ 20.93      $ 64.06      $ 79.42  
 

 

 

    

 

 

    

 

 

 

Shares authorized

    300 million        900 million        200 million  
 

 

 

    

 

 

    

 

 

 

Par value

  $ 0.001      $ 0.001      $ 0.001  
 

 

 

    

 

 

    

 

 

 

(a) Securities loaned, at value

  $ 557,920      $ 528,494,208      $ 11,754,235  

(b) Investments, at cost — Unaffiliated

  $ 635,631,162      $ 2,784,948,911      $ 512,847,245  

(c)  Investments, at cost — Affiliated

  $ 1,594,339      $ 574,285,708      $ 14,051,763  

(d) Foreign currency, at cost

  $ 1,588,312      $ 10,655,234      $ 130,344  

(e) Foreign currency collateral pledged, at cost

  $ 117,852      $      $  

See notes to financial statements.

 

 

I N A N C I A L   S T A T E M E N T S

  41


Statements of Operations (unaudited)

Six Months Ended February 28, 2022

 

   

iShares

MSCI Hong
Kong ETF

    

iShares
MSCI Japan
Small-Cap

ETF

   

iShares

MSCI

Malaysia

ETF

   

iShares

MSCI Pacific

ex Japan

ETF

 

 

 

INVESTMENT INCOME

        

Dividends — Unaffiliated

  $ 8,016,465      $ 853,484     $ 5,233,123     $ 50,029,365  

Dividends — Affiliated

    61        2       314       395  

Securities lending income — Affiliated — net

    517,214        8       147,230       620,913  

Foreign taxes withheld

           (84,911           (697,539
 

 

 

    

 

 

   

 

 

   

 

 

 

Total investment income

    8,533,740        768,583       5,380,667       49,953,134  
 

 

 

    

 

 

   

 

 

   

 

 

 

EXPENSES

        

Investment advisory fees

    2,334,311        188,839       603,137       5,416,272  

Commitment fees

                 1,183        

Professional fees

    217        217       217       217  
 

 

 

    

 

 

   

 

 

   

 

 

 

Total expenses

    2,334,528        189,056       604,537       5,416,489  
 

 

 

    

 

 

   

 

 

   

 

 

 

Net investment income

    6,199,212        579,527       4,776,130       44,536,645  
 

 

 

    

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

        

Net realized gain (loss) from:

        

Investments — Unaffiliated

    (21,029,471      (906,322     (9,647,507     (74,805,478

Investments — Affiliated

    (23            617       (4,562

In-kind redemptions — Unaffiliated

    136,785                    6,381,192  

Futures contracts

    (228,556      (10,308     (74,588     (948,370

Foreign currency transactions

    (3,851      (16,629     (56,093     (522,738
 

 

 

    

 

 

   

 

 

   

 

 

 

Net realized loss

    (21,125,116      (933,259     (9,777,571     (69,899,956
 

 

 

    

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

        

Investments — Unaffiliated

    (93,180,024      (8,089,380     2,570,907       (121,627,286

Investments — Affiliated

    (81            (1,292     (542

Futures contracts

    (40,639      (10,322     (4,768     (221,456

Foreign currency translations

    (3,655      179       (4,148     124,244  
 

 

 

    

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

    (93,224,399      (8,099,523     2,560,699       (121,725,040
 

 

 

    

 

 

   

 

 

   

 

 

 

Net realized and unrealized loss

    (114,349,515      (9,032,782     (7,216,872     (191,624,996
 

 

 

    

 

 

   

 

 

   

 

 

 

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ (108,150,303    $ (8,453,255   $ (2,440,742   $ (147,088,351
 

 

 

    

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

42  

2 0 2 2   H A R E S   S E M I - 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


 

Statements of Operations (unaudited) (continued)

Six Months Ended February 28, 2022

 

   

iShares

MSCI

Singapore

ETF

   

iShares

MSCI Taiwan

ETF

   

iShares

MSCI

Thailand ETF

 

 

 

INVESTMENT INCOME

     

Dividends — Unaffiliated

  $ 4,612,163     $ 29,348,674     $ 4,060,808  

Dividends — Affiliated

    116       63,819       2,295  

Securities lending income — Affiliated — net(a)

    29,382       5,603,437       1,271,066  

Foreign taxes withheld

    (133,784     (6,146,415     (385,221

Other foreign taxes

          (1,101,857      
 

 

 

   

 

 

   

 

 

 

Total investment income

    4,507,877       27,767,658       4,948,948  
 

 

 

   

 

 

   

 

 

 

EXPENSES

     

Investment advisory fees

    1,469,685       20,493,791       1,133,796  

Commitment fees

          19,090        

Professional fees

    217       217       217  
 

 

 

   

 

 

   

 

 

 

Total expenses

    1,469,902       20,513,098       1,134,013  
 

 

 

   

 

 

   

 

 

 

Net investment income

    3,037,975       7,254,560       3,814,935  
 

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

     

Net realized gain (loss) from:

     

Investments — Unaffiliated

    (9,177,922     31,861,520       (3,159,046

Investments — Affiliated

    (3,093     (133,896     (6,515

In-kind redemptions — Unaffiliated

    8,397,180             2,586,901  

Futures contracts

    (190,681     2,583,934       (341

Foreign currency transactions

    (364,448     (1,241,912     (9,285
 

 

 

   

 

 

   

 

 

 

Net realized gain (loss)

    (1,338,964     33,069,646       (588,286
 

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

     

Investments — Unaffiliated

    (30,220,007     49,352,091       419,841  

Investments — Affiliated

    (1,573     (75,680     (2,557

Futures contracts

    26,256       (2,764,482     (72,558

Foreign currency translations

    (142,855     (392,720     (44,253
 

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

    (30,338,179     46,119,209       300,473  
 

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain (loss)

    (31,677,143     79,188,855       (287,813
 

 

 

   

 

 

   

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

  $ (28,639,168   $ 86,443,415     $ 3,527,122  
 

 

 

   

 

 

   

 

 

 

(a) Net of securities lending income tax paid of

  $     $ 1,399,592     $  

See notes to financial statements.

 

 

I N A N C I A L   S T A T E M E N T S

  43


 

Statements of Changes in Net Assets

 

   

iShares

MSCI Hong Kong ETF

        

iShares

MSCI Japan Small-Cap ETF

 
 

 

 

      

 

 

 
   

Six Months Ended
02/28/22

(unaudited)

         

Year Ended

08/31/21

        

Six Months Ended
02/28/22

(unaudited)

          

Year Ended

08/31/21

 

 

 

INCREASE (DECREASE) IN NET ASSETS

                    

OPERATIONS

               

Net investment income

  $ 6,199,212       $ 28,969,140        $ 579,527        $ 892,504  

Net realized gain (loss)

    (21,125,116       55,547,845          (933,259        (3,561,252

Net change in unrealized appreciation (depreciation)

    (93,224,399       120,477,914          (8,099,523        13,425,992  
 

 

 

     

 

 

      

 

 

      

 

 

 

Net increase (decrease) in net assets resulting from operations

    (108,150,303       204,994,899          (8,453,255        10,757,244  
 

 

 

     

 

 

      

 

 

      

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

               

Decrease in net assets resulting from distributions to shareholders

    (10,473,189       (29,103,228        (818,006        (534,743
 

 

 

     

 

 

      

 

 

      

 

 

 

CAPITAL SHARE TRANSACTIONS

               

Net increase (decrease) in net assets derived from capital share transactions

    (52,022,756       (480,399,865        8,692,269          192,888  
 

 

 

     

 

 

      

 

 

      

 

 

 

NET ASSETS

               

Total increase (decrease) in net assets

    (170,646,248       (304,508,194        (578,992        10,415,389  

Beginning of period

    1,023,773,051         1,328,281,245          73,336,878          62,921,489  
 

 

 

     

 

 

      

 

 

      

 

 

 

End of period

  $ 853,126,803       $ 1,023,773,051        $ 72,757,886        $ 73,336,878  
 

 

 

     

 

 

      

 

 

      

 

 

 

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

44  

2 0 2 2   H A R E S   S E M I - 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


 

Statements of Changes in Net Assets (continued)

 

   

iShares

MSCI Malaysia ETF

        

iShares

MSCI Pacific ex Japan ETF

 
 

 

 

      

 

 

 
    Six Months Ended
02/28/22
(unaudited)
          Year Ended
08/31/21
        

Six Months Ended
02/28/22

(unaudited)

          

Year Ended

08/31/21

 

 

 

INCREASE (DECREASE) IN NET ASSETS

                    

OPERATIONS

               

Net investment income

  $ 4,776,130       $ 11,760,680        $ 44,536,645        $ 59,989,395  

Net realized gain (loss)

    (9,777,571       17,588          (69,899,956        28,747,225  

Net change in unrealized appreciation (depreciation)

    2,560,699         1,061,655          (121,725,040        324,866,037  
 

 

 

     

 

 

      

 

 

      

 

 

 

Net increase (decrease) in net assets resulting from operations

    (2,440,742       12,839,923          (147,088,351        413,602,657  
 

 

 

     

 

 

      

 

 

      

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

               

Decrease in net assets resulting from distributions to shareholders

    (6,979,020       (8,199,614        (74,045,047        (55,488,183
 

 

 

     

 

 

      

 

 

      

 

 

 

CAPITAL SHARE TRANSACTIONS

               

Net increase (decrease) in net assets derived from capital share transactions

    13,536,163         (81,263,223        27,111,010          200,269,201  
 

 

 

     

 

 

      

 

 

      

 

 

 

NET ASSETS

               

Total increase (decrease) in net assets

    4,116,401         (76,622,914        (194,022,388        558,383,675  

Beginning of period

    265,299,065         341,921,979          2,440,763,725          1,882,380,050  
 

 

 

     

 

 

      

 

 

      

 

 

 

End of period

  $ 269,415,466       $ 265,299,065        $ 2,246,741,337        $ 2,440,763,725  
 

 

 

     

 

 

      

 

 

      

 

 

 

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

I N A N C I A L   S T A T E M E N T S

  45


 

Statements of Changes in Net Assets (continued)

 

   

iShares

MSCI Singapore ETF

        

iShares

MSCI Taiwan ETF

 
 

 

 

      

 

 

 
   

Six Months Ended
02/28/22

(unaudited)

          Year Ended
08/31/21
         Six Months Ended
02/28/22
(unaudited)
           Year Ended
08/31/21
 

 

 

INCREASE (DECREASE) IN NET ASSETS

                    

OPERATIONS

               

Net investment income

  $ 3,037,975       $ 18,463,333        $ 7,254,560        $ 132,498,576  

Net realized gain (loss)

    (1,338,964       (755,655        33,069,646          109,814,384  

Net change in unrealized appreciation (depreciation)

    (30,338,179       112,664,961          46,119,209          2,042,034,196  
 

 

 

     

 

 

      

 

 

      

 

 

 

Net increase (decrease) in net assets resulting from operations

    (28,639,168       130,372,639          86,443,415          2,284,347,156  
 

 

 

     

 

 

      

 

 

      

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

               

Decrease in net assets resulting from distributions to shareholders

    (25,731,003       (19,029,698        (190,635,508        (99,705,133
 

 

 

     

 

 

      

 

 

      

 

 

 

CAPITAL SHARE TRANSACTIONS

               

Net increase (decrease) in net assets derived from capital share transactions

    57,604,705         (18,837,564        (513,570,532        1,138,966,691  
 

 

 

     

 

 

      

 

 

      

 

 

 

NET ASSETS

               

Total increase (decrease) in net assets

    3,234,534         92,505,377          (617,762,625        3,323,608,714  

Beginning of period

    618,238,020         525,732,643          7,555,064,201          4,231,455,487  
 

 

 

     

 

 

      

 

 

      

 

 

 

End of period

  $ 621,472,554       $ 618,238,020        $ 6,937,301,576        $ 7,555,064,201  
 

 

 

     

 

 

      

 

 

      

 

 

 

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

46  

2 0 2 2   H A R E S   S E M I - 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


 

Statements of Changes in Net Assets (continued)

 

   

iShares

MSCI Thailand ETF

 
 

 

 

 
    Six Months
Ended
02/28/22
(unaudited)
         

Year Ended

08/31/21

 

 

 

INCREASE (DECREASE) IN NET ASSETS

     

OPERATIONS

     

Net investment income

  $ 3,814,935       $ 9,439,648  

Net realized loss

    (588,286       (12,016,117

Net change in unrealized appreciation (depreciation)

    300,473         81,676,622  
 

 

 

     

 

 

 

Net increase in net assets resulting from operations

    3,527,122         79,100,153  
 

 

 

     

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

     

Decrease in net assets resulting from distributions to shareholders

    (5,789,084       (8,978,515
 

 

 

     

 

 

 

CAPITAL SHARE TRANSACTIONS

     

Net increase (decrease) in net assets derived from capital share transactions

    55,125,254         (95,172,234
 

 

 

     

 

 

 

NET ASSETS

     

Total increase (decrease) in net assets

    52,863,292         (25,050,596

Beginning of period

    411,738,193         436,788,789  
 

 

 

     

 

 

 

End of period

  $ 464,601,485       $ 411,738,193  
 

 

 

     

 

 

 

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

I N A N C I A L   S T A T E M E N T S

  47


Financial Highlights

(For a share outstanding throughout each period)

 

    iShares MSCI Hong Kong ETF  
 

 

 
   

Six Months Ended
02/28/22
(unaudited)

    Year Ended
08/31/21
          Year Ended
08/31/20
    Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17
 

 

 

Net asset value, beginning of period

             $ 25.80     $ 22.91       $ 23.00     $ 24.18     $ 24.69     $ 21.08  
   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      0.16       0.57         0.54       0.62       0.71       0.68  

Net realized and unrealized gain (loss)(b)

      (2.95     2.92         (0.01     (1.08     (0.12     3.54  
   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (2.79     3.49         0.53       (0.46     0.59       4.22  
   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

               

From net investment income

      (0.26     (0.60       (0.62     (0.72     (1.10     (0.61
   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.26     (0.60       (0.62     (0.72     (1.10     (0.61
   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 22.75     $ 25.80       $ 22.91     $ 23.00     $ 24.18     $ 24.69  
   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

               

Based on net asset value

      (10.83 )%(e)      15.24       2.46     (2.00 )%      2.33     20.38
   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(f)

               

Total expenses

      0.49 %(g)       0.50       0.51     0.49     0.48     0.49
   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      1.31 %(g)       2.26       2.37     2.52     2.83     3.08
   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

               

Net assets, end of period (000)

    $ 853,127     $ 1,023,773       $ 1,328,281     $ 1,424,663     $ 2,729,621     $ 1,855,447  
   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

      5 %(e)       21       16     12     7     8
   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

 

(b)

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

 

(c)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

 

(d) 

Where applicable, assumes the reinvestment of distributions.

 

(e)

Not annualized.

 

(f)

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

 

(g) 

Annualized.

 

(h)

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

48  

2 0 2 2   H A R E S   S E M I - 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


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Japan Small-Cap ETF  
 

 

 
    Six Months Ended                                                            
    02/28/22
(unaudited)
    Year Ended
08/31/21
    Year Ended
08/31/20
    Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17
 

 

 

Net asset value, beginning of period

               $ 81.49       $ 69.91       $ 68.75       $ 77.00       $ 72.78       $ 60.95  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

      0.58            1.04         1.21         1.37         0.94         1.02  

Net realized and unrealized gain (loss)(b)

      (8.49       11.13         2.78         (7.90       4.24         12.62  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (7.91       12.17         3.99         (6.53       5.18         13.64  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions(c)

                       

From net investment income

      (0.82       (0.59       (2.83       (1.72       (0.96       (1.81
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total distributions

      (0.82       (0.59       (2.83       (1.72       (0.96       (1.81
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 72.76       $ 81.49       $ 69.91       $ 68.75       $ 77.00       $ 72.78  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(d)

                       

Based on net asset value

      (9.75 )%(e)        17.41       5.72       (8.42 )%        7.09       22.81
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(f)

                       

Total expenses

      0.49 %(g)        0.50       0.51       0.49       0.47       0.49
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      1.52 %(g)        1.33       1.75       1.94       1.18       1.53
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 72,758       $ 73,337       $ 62,921       $ 109,995       $ 284,912       $ 189,216  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(h)

      8 %(e)         21       10       10       9       8
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Based on average shares outstanding.

 

(b) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

 

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

 

(d) 

Where applicable, assumes the reinvestment of distributions.

 

(e) 

Not annualized.

 

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

 

(g) 

Annualized.

 

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L  I G H L I G H T S

  49


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Malaysia ETF  
 

 

 
    Six Months Ended                                                            
    02/28/22         Year Ended           Year Ended           Year Ended           Year Ended           Year Ended  
      (unaudited)         08/31/21         08/31/20         08/31/19         08/31/18         08/31/17 (a) 

 

 

Net asset value, beginning of period

               $ 26.60         $ 26.51       $ 28.02       $ 32.87       $ 32.03       $ 33.13  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(b)

      0.49         0.98         0.76         1.03         0.91         0.56  

Net realized and unrealized gain (loss)(c)

      (0.65       (0.05       (1.41       (4.85       2.06         (0.05
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (0.16       0.93         (0.65       (3.82       2.97         0.51  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions(d)

                       

From net investment income

      (0.78       (0.84       (0.86       (1.03       (2.13       (1.61
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total distributions

      (0.78       (0.84       (0.86       (1.03       (2.13       (1.61
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 25.66       $ 26.60       $ 26.51       $ 28.02       $ 32.87       $ 32.03  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(e)

                       

Based on net asset value

      (0.37 )%(f)         3.51       (2.27 )%        (11.69 )%        9.59       2.14
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(g)

                       

Total expenses

      0.50 %(h)         0.50       0.51       0.49       0.47       0.49
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      3.91 %(h)         3.62       2.86       3.41       2.69       2.73
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 269,415       $ 265,299       $ 341,922       $ 390,889       $ 557,220       $ 437,224  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate

      17 %(f)         28 %(i)         58 %(i)         48 %(i)         63 %(i)         24 %(i)  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

(a) Per share amounts reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016.

 

(b) Based on average shares outstanding.

 

(c)  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital
  share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

 

(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

 

(e) Where applicable, assumes the reinvestment of distributions.

 

(f)  Not annualized.

 

(g) Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

 

(h) Annualized.

 

  

  

   

  

  

   

  

  

(i)  Portfolio turnover rate excluding cash creations was as follows:

      6       7       16       9       17       10
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

See notes to financial statements.

 

 

50  

2 0 2 2   H A R E S   S E M I - 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


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Pacific ex Japan ETF  
 

 

 
   

Six Months Ended

                                   
        02/28/22
(unaudited)
        Year Ended
08/31/21
    Year Ended
08/31/20
    Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17
 

 

 

Net asset value, beginning of period

             $ 51.17         $ 42.98     $ 44.17     $ 46.02     $ 46.43     $ 40.94  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      0.94         1.30       1.29       1.74       1.66       1.60  

Net realized and unrealized gain (loss)(b)

      (4.03       8.06       (0.98     (1.58     0.03       5.55  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (3.09       9.36       0.31       0.16       1.69       7.15  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

               

From net investment income

      (1.56       (1.17     (1.50     (2.01     (2.10     (1.66
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (1.56       (1.17     (1.50     (2.01     (2.10     (1.66
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 46.52       $ 51.17     $ 42.98     $ 44.17     $ 46.02     $ 46.43  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

               

Based on net asset value

      (6.05 )%(e)         21.82     0.72     0.56     3.63     18.06
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(f)

               

Total expenses

      0.47 %(g)         0.47     0.48     0.48     0.48     0.49
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      3.86 %(g)         2.66     3.04     3.89     3.52     3.69
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

               

Net assets, end of period (000)

    $ 2,246,741       $ 2,440,764     $ 1,882,380     $ 2,266,116     $ 2,374,834     $ 3,120,426  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

      10 %(e)         9     8     7     6     3
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

 

(b) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

 

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

 

(d) 

Where applicable, assumes the reinvestment of distributions.

 

(e) 

Not annualized.

 

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

 

(g) 

Annualized.

 

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L  I G H L I G H T S

  51


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Singapore ETF  
 

 

 
    Six Months Ended                                    
     
02/28/22
(unaudited)
 
 
     
Year Ended
08/31/21
 
 
   
Year Ended
08/31/20
 
 
   
Year Ended
08/31/19
 
 
   
Year Ended
08/31/18
 
 
   
Year Ended
08/31/17
 
(a) 

 

 

Net asset value, beginning of period

             $ 23.03         $ 19.12     $ 22.83     $ 23.84     $ 24.70     $ 21.22  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

      0.11         0.63       0.76       0.91       1.04       0.56  

Net realized and unrealized gain (loss)(c)

      (1.21       3.92       (3.57     (1.02     (0.77     3.84  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (1.10       4.55       (2.81     (0.11     0.27       4.40  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

               

From net investment income

      (1.00       (0.64     (0.90     (0.90     (1.13     (0.92
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (1.00       (0.64     (0.90     (0.90     (1.13     (0.92
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 20.93       $ 23.03     $ 19.12     $ 22.83     $ 23.84     $ 24.70  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

               

Based on net asset value

      (4.80 )%(f)        23.91     (12.84 )%      (0.41 )%      0.91     21.51
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(g)

               

Total expenses

      0.49 %(h)         0.50     0.51     0.50     0.47     0.49
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      1.02 %(h)         2.87     3.59     3.86     4.03     3.00
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

               

Net assets, end of period (000)

    $ 621,473       $ 618,238     $ 525,733     $ 513,651     $ 579,292     $ 600,268  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(i)

      28 %(f)         17     22     9     26     12
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.

 

(b) 

Based on average shares outstanding.

 

(c) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

 

(d) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

 

(e) 

Where applicable, assumes the reinvestment of distributions.

 

(f) 

Not annualized.

 

(g) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

 

(h) 

Annualized.

 

(i) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

52  

2 0 2 2   H A R E S   S E M I - 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


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Taiwan ETF  
 

 

 
    Six Months Ended                                    
     
02/28/22
(unaudited)
 
 
     
Year Ended
08/31/21
 
 
   
Year Ended
08/31/20
 
 
   
Year Ended
08/31/19
 
 
   
Year Ended
08/31/18
 
 
   
Year Ended
08/31/17
 
(a)  

 

 

Net asset value, beginning of period

             $ 64.79       $ 44.08     $ 34.94     $ 37.91     $ 37.35     $ 30.30  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

      0.07         1.22       1.05       0.92       0.98       0.87  

Net realized and unrealized gain (loss)(c)

      0.96         20.46       9.11       (2.89     0.60       6.88  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      1.03         21.68       10.16       (1.97     1.58       7.75  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

               

From net investment income

      (1.39       (0.97     (1.02     (1.00     (1.02     (0.70

From net realized gain

      (0.37                                
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (1.76       (0.97     (1.02     (1.00     (1.02     (0.70
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 64.06       $ 64.79     $ 44.08     $ 34.94     $ 37.91     $ 37.35  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

               

Based on net asset value

      1.57 %(f)         49.79     29.34     (4.92 )%      4.43     26.17
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(g)

               

Total expenses

      0.58 %(h)         0.57     0.59     0.59     0.59     0.62
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      0.20 %(h)         2.16     2.68     2.70     2.65     3.10
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

               

Net assets, end of period (000)

    $ 6,937,302       $ 7,555,064     $ 4,231,455     $ 2,662,495     $ 4,082,891     $ 3,764,790  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(i)

      6 %(f)         12     15     7     12 %(j)       11 %(j)  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(a) Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.

 

(b) Based on average shares outstanding.

 

(c)  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market  values of the Fund’s underlying securities.

 

(d) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

 

(e) Where applicable, assumes the reinvestment of distributions.

 

(f)  Not annualized.

 

(g) Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

 

(h) Annualized.

 

(i)  Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”)

 

  

  

   

  

  

   

  

  

   

(j)  Portfolio turnover rate  excluding cash creations was as follows:

      5       12     14     6     11     8
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

I N A N C I A L  I G H L I G H T S

  53


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Thailand ETF  
 

 

 
    Six Months Ended                                    
        02/28/22
(unaudited)
        Year Ended
08/31/21
    Year Ended
08/31/20
    Year Ended
08/31/19
    Year Ended
08/31/18
    Year Ended
08/31/17
 

 

 

Net asset value, beginning of period

             $ 79.95          $ 68.25     $ 90.53     $ 90.80     $ 82.70     $ 75.94  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      0.74         1.70       1.97       2.10       2.12       1.99  

Net realized and unrealized gain (loss)(b)

      (0.15       11.73       (22.24     (0.33     8.13       6.90  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      0.59         13.43       (20.27     1.77       10.25       8.89  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

               

From net investment income

      (1.12       (1.73     (2.01     (2.04     (2.15     (2.13
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (1.12       (1.73     (2.01     (2.04     (2.15     (2.13
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 79.42       $ 79.95     $ 68.25     $ 90.53     $ 90.80     $ 82.70  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

               

Based on net asset value

      0.84 %(e)         19.65     (22.57 )%      2.03     12.55     12.01
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(f)

               

Total expenses

      0.57 %(g)         0.57     0.59     0.59     0.59     0.62
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      1.93 %(g)         2.26     2.57     2.36     2.30     2.63
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

               

Net assets, end of period (000)

    $ 464,601       $ 411,738     $ 436,789     $ 466,237     $ 435,842     $ 355,590  
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

      2 %(e)         17     11     17     10     7
   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

 

(b) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

 

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

 

(d) 

Where applicable, assumes the reinvestment of distributions.

 

(e) 

Not annualized.

 

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

 

(g) 

Annualized.

 

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

54  

2 0 2 2   H A R E S   S E M I - 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


Notes to Financial Statements (unaudited)

 

1.   ORGANIZATION

iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company is organized as a Maryland corporation and is authorized to have multiple series or portfolios.

These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):

 

   
iShares ETF  

Diversification    

Classification    

MSCI Hong Kong

  Non-diversified    

MSCI Japan Small-Cap

  Diversified    

MSCI Malaysia

  Non-diversified    

MSCI Pacific ex Japan

  Diversified    

MSCI Singapore

  Non-diversified    

MSCI Taiwan

  Non-diversified    

MSCI Thailand

  Non-diversified    

2.   SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 28, 2022, if any, are disclosed in the Statements of Assets and Liabilities.

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and record cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

3.   INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

   

Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

   

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

   

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

   

Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

   

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and

   

Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

4.   SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:

 

 

 

iShares ETF and Counterparty

   
Market Value of
Securities on Loan
 
 
    
Cash Collateral
Received
 
(a)  
   
Non-Cash Collateral
Received
 
 
     Net Amount  

 

 

MSCI Hong Kong

         

BNP Paribas SA

  $ 1,042,929      $ 1,036,726     $      $ (6,203 )(b)  
 

 

 

    

 

 

   

 

 

    

 

 

 

MSCI Japan Small-Cap

         

BNP Paribas SA

  $ 8,661      $ 8,661     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

MSCI Malaysia

         

Morgan Stanley

  $ 2,923,083      $ 2,436,640     $      $ (486,443 )(b)  

UBS AG

    1,190,124        990,995              (199,129 )(b)  
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 4,113,207      $ 3,427,635     $      $ (685,572
 

 

 

    

 

 

   

 

 

    

 

 

 

MSCI Pacific ex Japan

         

BNP Paribas SA

  $ 1,749,073      $ 1,729,724     $      $ (19,349 )(b)  

BofA Securities, Inc.

    2,563,297        2,563,297               

HSBC Bank PLC

    39,099        39,099               

Morgan Stanley

    2,188,804        2,188,804               

UBS Securities LLC

    414,675        409,123              (5,552 )(b)  
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 6,954,948      $ 6,930,047     $      $ (24,901
 

 

 

    

 

 

   

 

 

    

 

 

 

MSCI Singapore

         

Morgan Stanley

  $ 47,123      $ 47,123     $      $  

State Street Bank & Trust Co.

    510,797        510,797               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 557,920      $ 557,920     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

MSCI Taiwan

         

Citigroup Global Markets Ltd.

  $ 41,929,595      $ 41,929,595     $      $  

Goldman Sachs International

    93,661,291        93,661,291               

J.P. Morgan Securities PLC

    148,270,180        148,270,180               

Macquarie Bank Ltd.

    11,711,921        11,711,921               

Morgan Stanley

    232,921,221        232,921,221               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 528,494,208      $ 528,494,208     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

 

 

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  57


Notes to Financial Statements (unaudited) (continued)

 

 

 

iShares ETF and Counterparty

   
Market Value of
Securities on Loan
 
 
    
Cash Collateral
Received
 
(a)  
   
Non-Cash Collateral
Received
 
 
     Net Amount  

 

 

MSCI Thailand

         

Barclays Capital, Inc.

  $ 2,044,113      $ 2,044,113     $      $  

BofA Securities, Inc.

    72,529        72,529               

Citigroup Global Markets, Inc.

    254,416        254,416               

Credit Suisse Securities (USA) LLC

    469,519        469,519               

Goldman Sachs & Co. LLC

    156,633        156,633               

J.P. Morgan Securities LLC

    5,296,857        5,296,857               

Morgan Stanley

    1,309,353        1,309,353               

SG Americas Securities LLC

    1,951,810        1,951,810               

UBS AG

    199,005        199,005               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 11,754,235      $ 11,754,235     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

 

  (a) 

Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities.

 
  (b) 

The market value of the loaned securities is determined as of February 28, 2022. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty.

 

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.

5.   DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

6.   INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).

For its investment advisory services to each of the iShares MSCI Hong Kong, iShares MSCI Japan Small-Cap, iShares MSCI Malaysia and iShares MSCI Singapore ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

   
Aggregate Average Daily Net Assets   Investment Advisory Fee  

First $7 billion

    0.59

Over $7 billion, up to and including $11 billion

    0.54  

Over $11 billion, up to and including $24 billion

    0.49  

Over $24 billion, up to and including $48 billion

    0.44  

Over $48 billion, up to and including $72 billion

    0.40  

Over $72 billion, up to and including $96 billion

    0.36  

Over $96 billion

    0.32  

 

 

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Notes to Financial Statements (unaudited) (continued)

 

For its investment advisory services to the iShares MSCI Pacific ex Japan ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

   
Aggregate Average Daily Net Assets   Investment Advisory Fee  

First $46 billion

    0.5000

Over $46 billion, up to and including $81 billion

    0.4750  

Over $81 billion, up to and including $111 billion

    0.4513  

Over $111 billion, up to and including $141 billion

    0.4287  

Over $141 billion, up to and including $171 billion

    0.4073  

Over $171 billion

    0.3869  

For its investment advisory services to each of the iShares MSCI Taiwan and iShares MSCI Thailand ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

   
Aggregate Average Daily Net Assets   Investment Advisory Fee  

First $2 billion

    0.7400

Over $2 billion, up to and including $4 billion

    0.6900  

Over $4 billion, up to and including $8 billion

    0.6400  

Over $8 billion, up to and including $16 billion

    0.5700  

Over $16 billion, up to and including $24 billion

    0.5100  

Over $24 billion, up to and including $32 billion

    0.4800  

Over $32 billion, up to and including $40 billion

    0.4500  

Over $40 billion

    0.4275  

Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the six months ended February 28, 2022, the Funds paid BTC the following amounts for securities lending agent services:

 

   
iShares ETF   Fees Paid
to BTC
 

MSCI Hong Kong

  $ 112,481  

MSCI Japan Small-Cap

    2  

MSCI Malaysia

    33,225  

MSCI Pacific ex Japan

    141,656  

MSCI Singapore

    10,316  

MSCI Taiwan

    1,677,861  

MSCI Thailand

    284,377  

 

 

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  59


Notes to Financial Statements (unaudited) (continued)

 

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the six months ended February 28, 2022, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

       
iShares ETF   Purchases     Sales      Net Realized    
Gain (Loss)    
 

MSCI Hong Kong

  $ 9,313,881     $ 3,628,158      $ (8,037,151)      

MSCI Japan Small-Cap

    3,205,313       1,767,434        851,227       

MSCI Pacific ex Japan

    6,281,153         18,182,613        (11,764,569)      

MSCI Singapore

    5,918,418       66,436,926        4,317,134       

MSCI Taiwan

      19,430,316       7,167,171        920,874       

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the Statements of Operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

7.   PURCHASES AND SALES

For the six months ended February 28, 2022, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:

 

     
iShares ETF   Purchases      Sales      

MSCI Hong Kong

  $ 76,713,293      $ 49,741,050      

MSCI Japan Small-Cap

    5,901,748        5,986,462      

MSCI Malaysia

    54,763,106        43,927,553      

MSCI Pacific ex Japan

      234,427,263        258,110,616      

MSCI Singapore

    172,837,645        165,584,066      

MSCI Taiwan

    428,762,444        1,049,234,124      

MSCI Thailand

    10,865,227        8,515,261      

For the six months ended February 28, 2022, in-kind transactions were as follows:

 

     
iShares ETF   In-kind
Purchases
    

In-kind    

Sales    

 

MSCI Hong Kong

  $ 2,012,097      $ 83,631,354      

MSCI Japan Small-Cap

    8,449,537        —      

MSCI Pacific ex Japan

    41,463,371        26,900,613      

MSCI Singapore

      104,141,614          53,771,213      

MSCI Thailand

    74,153,338        22,999,985      

8.   INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2022, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of August 31, 2021, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

   
iShares ETF   Non-Expiring      

MSCI Hong Kong

  $   464,534,433      

MSCI Japan Small-Cap

    10,918,565      

MSCI Malaysia

    102,921,977      

MSCI Pacific ex Japan

    510,753,366      

MSCI Singapore

    215,141,841      

MSCI Thailand

    113,015,960      

 

 

60  

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Notes to Financial Statements (unaudited) (continued)

 

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of February 28, 2022, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

         
iShares ETF   Tax Cost      Gross Unrealized
Appreciation
     Gross Unrealized
Depreciation
    Net Unrealized
Appreciation
(Depreciation)
 

MSCI Hong Kong

  $ 986,843,175      $ 77,022,460      $ (209,332,799   $ (132,310,339

MSCI Japan Small-Cap

    86,882,923        4,124,105        (18,504,467     (14,380,362 )   

MSCI Malaysia

    181,807,593        121,604,696        (31,276,730     90,327,966  

MSCI Pacific ex Japan

     2,229,729,162        339,002,429        (343,552,163     (4,549,734

MSCI Singapore

    651,316,269        54,883,520        (76,441,417     (21,557,897

MSCI Taiwan

    3,536,611,737        4,154,169,776        (188,414,697     3,965,755,079  

MSCI Thailand

    532,108,611        21,498,207        (77,616,763     (56,118,556

9.   LINE OF CREDIT

The iShares MSCI Malaysia ETF and iShares MSCI Taiwan ETF, along with certain other iShares funds (“Participating Funds”), are parties to a $800 million credit agreement (“Syndicated Credit Agreement”) with a group of lenders, which expires on August 12, 2022. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Syndicated Credit Agreement. The Syndicated Credit Agreement has the following terms: a commitment fee of 0.15% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR rate (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Syndicated Credit Agreement.

During the six months ended February 28, 2022, the Funds did not borrow under the Syndicated Credit Agreement.

10.   PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Market Risk: An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. Although vaccines have been developed and approved for use by various governments, the duration of this pandemic and its effects cannot be determined with certainty.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.

Certain Funds invest a significant portion of their assets in issuers located in a single country or a limited number of countries. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Unanticipated or sudden political or social developments may cause uncertainty in the markets and as a result adversely affect the Fund’s investments. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be more volatile and less liquid than U.S. securities and may be less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the Schedule of Investments.

Certain Funds invest a significant portion of their assets in securities of issuers located in Asia or with significant exposure to Asian issuers or countries. The Asian financial markets have recently experienced volatility and adverse trends due to concerns in several Asian countries regarding monetary policy, government intervention in the markets, rising government debt levels or economic downturns. These events may spread to other countries in Asia and may affect the value and liquidity of certain of the Funds’ investments.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a Fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

LIBORTransition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates ceased to be published or no longer are representative of the underlying market they seek to measure after December 31, 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

11.   CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

Transactions in capital shares were as follows:

 

 

 
   

Six Months Ended

02/28/22

   

Year Ended

08/31/21

 
 

 

 

   

 

 

 
iShares ETF   Shares     Amount     Shares     Amount  

 

 

MSCI Hong Kong

       

Shares sold

    2,025,000     $ 48,791,689       8,700,000     $ 209,932,705  

Shares redeemed

    (4,200,000     (100,814,445     (27,000,000     (690,332,570
 

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease

    (2,175,000   $ (52,022,756     (18,300,000   $ (480,399,865
 

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Japan Small-Cap

       

Shares sold

    100,000     $ 8,692,269       200,000     $ 15,401,017  

Shares redeemed

                (200,000     (15,208,129
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

    100,000     $ 8,692,269           $ 192,888  
 

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Malaysia

       

Shares sold

    1,875,000     $ 47,336,875       2,550,000     $ 68,530,419  

Shares redeemed

    (1,350,000     (33,800,712     (5,475,000     (149,793,642
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    525,000     $ 13,536,163       (2,925,000   $ (81,263,223
 

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Pacific ex Japan

       

Shares sold

    1,200,000     $ 55,442,378       9,300,000     $ 467,556,958  

Shares redeemed

    (600,000     (28,331,368     (5,400,000     (267,287,757
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

    600,000     $ 27,111,010       3,900,000     $ 200,269,201  
 

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Singapore

       

Shares sold

    5,350,000     $ 114,314,496       5,800,000     $ 122,874,810  

Shares redeemed

    (2,500,000     (56,709,791     (6,450,000     (141,712,374
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    2,850,000     $ 57,604,705       (650,000   $ (18,837,564
 

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Taiwan

       

Shares sold

    1,000,000     $ 67,752,959       20,600,000     $ 1,138,966,691  

Shares redeemed

    (9,300,000     (581,323,491            
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    (8,300,000   $ (513,570,532     20,600,000     $ 1,138,966,691  
 

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Thailand

       

Shares sold

    1,000,000     $ 78,350,999       1,450,000     $ 109,985,794  

Shares redeemed

    (300,000     (23,225,745     (2,700,000     (205,158,028
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    700,000     $ 55,125,254       (1,250,000   $ (95,172,234
 

 

 

   

 

 

   

 

 

   

 

 

 

The consideration for the purchase of Creation Units of a fund in the Company generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Company may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Company’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.

12.   SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

 

 

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Statement Regarding Liquidity Risk Management Program (unaudited)

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), iShares, Inc. (the “Company”) has adopted and implemented a liquidity risk management program (the “Program”) for iShares MSCI Hong Kong ETF, iShares MSCI Japan Small-Cap ETF, iShares MSCI Malaysia ETF, iShares MSCI Pacific ex Japan ETF, iShares MSCI Singapore ETF, iShares MSCI Taiwan ETF and iShares MSCI Thailand ETF (the “Funds” or “ETFs”), each a series of the Company, which is reasonably designed to assess and manage each Fund’s liquidity risk.

The Board of Directors (the “Board”) of the Company, on behalf of the Funds, met on December 9, 2021 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program. BlackRock also previously delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the management of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2020 through September 30, 2021 (the “Program Reporting Period”).

The Report described the Program’s liquidity classification methodology for categorizing each Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also referenced the methodology used by BlackRock to establish each Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually. The Report also discussed notable events affecting liquidity over the Program Reporting Period, including extended market holidays and the imposition of capital controls in certain non-U.S. countries.

The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing each Fund’s liquidity risk, as follows:

 

  a)

The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for an open-end fund structure, with a focus on funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Derivative exposure was also considered in the calculation of a fund’s liquidity bucketing. Finally, a factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes.

 

  b)

Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size (“RATS”). The Committee may also take into consideration a fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a fund’s distribution channels, and the degree of certainty associated with a fund’s short-term and long-term cash flow projections.

 

  c)

Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimis amounts of cash. While the ETFs generally do not engage in borrowing, certain of the ETFs have the flexibility to draw on a line of credit to meet redemption requests or facilitate settlements.

 

  d)

The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages.

 

  e)

The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of custom baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review.

As part of BlackRock’s continuous review of the effectiveness of the Program, the Committee made the following material changes to the Program: (1) updates to certain model components in the Program’s methodology; and (2) certain iShares Funds entered into a $800 million credit agreement with a group of lenders that replaced a previous liquidity facility. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

 

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Supplemental Information (unaudited)

 

Regulation Regarding Derivatives

On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Funds will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

February 28, 2022

 

       
    Total Cumulative Distributions
for the Fiscal Year-to-Date
          % Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
 
iShares ETF   Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
           Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
 

MSCI Hong Kong(a)

  $ 0.257000     $     $   0.005408     $   0.262408         98         2     100

MSCI Pacific ex Japan(a)

    1.196722             0.367275       1.563997         77             23       100  

MSCI Singapore(a)

    0.550878             0.452280       1.003158         55             45       100  

MSCI Thailand(a)

    0.850090             0.274004       1.124094               76             24       100  

 

  (a) 

The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

 

 

 

U P P L E M E N T A L   I N F O R M A T I O N

  65


General Information

 

Electronic Delivery

Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:

 

   

Go to icsdelivery.com.

 

   

If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the Company’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

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Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity
ADR   American Depositary Receipt
NVDR   Non-Voting Depositary Receipt
REIT   Real Estate Investment Trust

 

 

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Want to know more?

iShares.com    |     1-800-474-2737

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-SAR-803-0222

 

 

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