LOGO

  JULY 31, 2022

 

  

2022 Annual Report

 

 

 

BlackRock ETF Trust

 

·  

BlackRock Future Climate and Sustainable Economy ETF | BECO | NYSE Arca

 

·  

BlackRock Future Health ETF | BMED | NYSE Arca

 

·  

BlackRock Future Innovators ETF | BFTR | NYSE Arca

 

·  

BlackRock Future Tech ETF | BTEK | NYSE Arca

 

·  

BlackRock Future U.S. Themes ETF | BTHM | NYSE Arca

 

·  

BlackRock U.S. Carbon Transition Readiness ETF | LCTU | NYSE Arca

 

·  

BlackRock U.S. Equity Factor Rotation ETF | DYNF | NYSE Arca

 

·  

BlackRock World ex U.S. Carbon Transition Readiness ETF | LCTD | NYSE Arca

 

 

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of July 31, 2022 saw the emergence of significant challenges that disrupted the economic recovery and strong financial markets. The U.S. economy shrank in the first half of 2022, ending the run of robust growth that followed the reopening of global economies and the development of COVID-19 vaccines. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the ongoing war continued to present challenges for both investors and policymakers.

Equity prices fell as interest rates rose, particularly weighing on relatively high-valuation growth stocks and economically sensitive small-capitalization stocks. While both large- and small-capitalization U.S. stocks fell, declines for small-capitalization U.S. stocks were steeper. Both emerging market stocks and international equities from developed markets fell significantly, pressured by rising interest rates and a strengthening U.S. dollar.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose notably during the reporting period as investors reacted to higher inflation and attempted to anticipate its impact on future interest rate changes. The corporate bond market also faced inflationary headwinds, and increasing uncertainty led to higher corporate bond spreads (the difference in yield between U.S. Treasuries and similarly-dated corporate bonds).

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is growing faster than expected, raised interest rates four times while indicating that additional rate hikes were likely. Furthermore, the Fed wound down its bond-buying programs and began to reduce its balance sheet. Continued high inflation and the Fed’s statements led many analysts to anticipate that interest rates have room to rise before peaking, although investors’ inflation expectations began to decline near the end of the period.

The horrific war in Ukraine has significantly clouded the outlook for the global economy, leading to major volatility in energy and metals markets. Sanctions on Russia, Europe’s top energy supplier, and general wartime disruption have magnified supply problems for key commodities. We believe elevated energy prices will continue to exacerbate inflationary pressure while also constraining economic growth. Combating inflation without stifling a recovery, while buffering against ongoing supply and price shocks, will be an especially challenging environment for setting effective monetary policy. Despite the likelihood of more rate increases on the horizon, we believe the Fed will ultimately err on the side of protecting employment, even at the expense of higher inflation. In the meantime, however, we believe that we are likely to see a period of slowing growth paired with relatively high inflation.

In this environment, while we favor an overweight to equities in the long-term, the market’s concerns over excessive rate hikes from central banks moderate our outlook. Furthermore, the energy shock and a deteriorating economic backdrop in China and Europe are likely to challenge corporate earnings, so we are underweight equities overall in the near-term. We take the opposite view on credit, where higher spreads provide near-term opportunities, while the likelihood of higher inflation leads us to take an underweight stance on credit in the long-term. We believe that investment-grade corporates, U.K. gilts, local-currency emerging market debt, and inflation-protected bonds (particularly in Europe) offer strong opportunities for a six- to twelve-month horizon.

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

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

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

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

  (7.81 )%    (4.64 )% 
   

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

  (6.42 )   (14.29 )
   

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

  (11.27 )   (14.32 )
   

Emerging market equities
(MSCI Emerging Markets Index)

  (16.24 )   (20.09 )
   

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

  0.21   0.22
   

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

  (6.38 )   (10.00 )
   

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

  (6.14 )   (9.12 )
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

  (3.95 )   (6.93 )
   

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

  (6.58 )   (8.03 )
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

2  

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


Table of Contents

 

     Page  

The Markets in Review

    2  

Annual Report:

 

Fund Summary

    4  

About Fund Performance

    20  

Disclosure of Expenses

    20  

Schedules of Investments

    21  

Financial Statements:

 

Statements of Assets and Liabilities

    51  

Statements of Operations

    53  

Statements of Changes in Net Assets

    55  

Financial Highlights

    59  

Notes to Financial Statements

    67  

Report of Independent Registered Public Accounting Firm

    80  

Important Tax Information

    81  

Disclosure of Investment Advisory Agreement

    82  

Supplemental Information

    86  

Trustee and Officer Information

    88  

Additional Information

    92  

Glossary of Terms Used in this Report

    94  

 

 

  3


Fund Summary as of July 31, 2022    BlackRock Future Climate and Sustainable Economy ETF

 

Investment Objective

The BlackRock Future Climate and Sustainable Economy ETF (the “Fund”) seeks to maximize total return by investing in companies that BlackRock Fund Advisors (“BFA”) believes are furthering the transition to a lower carbon economy.

Performance

 

        Cumulative Total Returns  
    

                    

 

Since

Inception

 

Fund NAV

      (17.61 )% 

Fund Market

      (17.66

MSCI ACWI Multiple Industries Select Index

        (9.37

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was August 3, 2021. The first day of secondary market trading was August 5, 2021.

The MSCI ACWI Multiple Industries Select Index is an index that includes large- and mid-cap securities across certain Developed Markets and Emerging Markets countries. The index represents the performance of component indexes which includes securities from selected Global Industry Classification Standard (GICS®) Sectors and Industries i.e. Chemicals, Industrials, Consumer Staples, Containers & Packaging, Electronic Equipment, Instruments & Components, Semiconductors & Semiconductor Equipment and Utilities.

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

Expense Example

 

    Actual     Hypothetical 5% Return  
 

 

 

     

 

 

      
     

Beginning
Account Value
(02/01/22
 
 
      

Ending
Account Value
(07/31/22
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/22
 
 
      

Ending
Account Value
(07/31/22
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
    $ 1,000.00        $ 898.00        $ 3.29             $ 1,000.00        $ 1,021.30        $ 3.51          0.70

 

  (a) 

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

 

 

 

4  

2 0 2 2    B L A C K R O C K    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


Fund Summary as of July 31, 2022    (continued)    BlackRock Future Climate and Sustainable Economy ETF

 

Portfolio Management Commentary

Elevated inflation and a hawkish shift in central bank policy led to rising interest rates and an equity market decline over the reporting period. In addition, market participants were concerned about continued supply chain shocks as China engaged in another round of COVID-driven lockdowns as well as higher energy prices driven in part by the Russia-Ukraine conflict.

The Fund returned -17.6% for the reporting period as compared to -9.37% for the benchmark MSCI ACWI Multiple Industries Select Index. The Fund invests in companies that the investment adviser believes are furthering the transition to a lower carbon economy and allocates across five climate-oriented themes: sustainable food, resource efficiency, clean power, clean transportation, and climate resilience & biodiversity. The Fund intends for its holdings to be aligned with the goals of the UN-convened Net-Zero Asset Owner Alliance, by seeking to lower the portfolio’s carbon intensity and by engaging with companies accounting for 65% of the portfolio’s greenhouse gas emissions on an annual basis. The Fund’s strategy faced a headwind during the reporting period as shares of excluded traditional energy companies benefited from the significant rise in oil and gas prices.

In terms of individual positions held, the largest positive contributors to the Fund’s relative performance over the period were Canadian fertilizer producer Nutrien Ltd. and American agribusiness firm Bunge Limited. Shares of Nutrien appreciated on the back of concerns over a global supply shortage of fertilizers. Bunge’s stock benefited from an improving outlook for upstream agriculture names in the face of heightened volatility around global food supplies.

The top two detractors from the Fund’s absolute performance were Italian power company Enel S.p.A. and German meal delivery company HelloFresh SE. Shares of Enel fell on news of political uncertainty in Italy and a deteriorating macroeconomic outlook in Europe. HelloFresh’s stock dropped as higher inflation led to a rotation out of growth equities.

Portfolio Information

 

INDUSTRY ALLOCATION

 

Sector

   
Percent of
Total Investments
 
(a) 

Machinery

    15.6

Chemicals

    14.1  

Food Products

    13.7  

Containers & Packaging

    7.7  

Commercial Services & Supplies

    6.5  

Semiconductors & Semiconductor Equipment

    5.8  

Electrical Equipment

    5.3  

Independent Power and Renewable Electricity Producers

    5.0  

Electronic Equipment, Instruments & Components

    4.7  

Electric Utilities

    4.5  

Software

    4.4  

Paper & Forest Products

    3.6  

Building Products

    3.4  

Capital Markets

    2.1  

Professional Services

    1.6  

Construction & Engineering

    1.1  

Metals & Mining

    0.9  

TEN LARGEST HOLDINGS

 

Security

   
Percent of
Total Investments
 
(a) 

Cleanaway Waste Management Ltd.

    4.3

EDP Renovaveis SA

    4.2  

Deere & Co.

    3.7  

Enel SpA

    3.4  

Nutrien Ltd.

    3.4  

Ag Growth International Inc.

    2.9  

Symrise AG

    2.8  

Koninklijke DSM NV

    2.8  

SIG Group AG

    2.8  

Salmar ASA

    2.7  
  (a) 

Excludes money market funds.

 

 

 

F U N D    S U M M A R Y

  5


Fund Summary as of July 31, 2022    BlackRock Future Health ETF

 

Investment Objective

The BlackRock Future Health ETF (the “Fund”) seeks to maximize total return.

Performance

 

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

Fund NAV

    (22.72 )%       (4.24 )%        (22.72 )%      (7.65 )% 

Fund Market

    (22.72      (4.19       (22.72     (7.56

MSCI ACWI Index

    (10.48      8.72               (10.48     16.59  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was September 29, 2020. The first day of secondary market trading was October 1, 2020.

MSCI ACWI Index captures large- and mid-cap representation across certain developed emerging markets.

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

Expense Example

 

    Actual     Hypothetical 5% Return  
 

 

 

     

 

 

      
     

Beginning
Account Value
(02/01/22
 
 
      

Ending
Account Value
(07/31/22
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/22
 
 
      

Ending
Account Value
(07/31/22
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
    $ 1,000.00        $ 926.10        $ 4.06             $ 1,000.00        $ 1,020.60        $ 4.26          0.85

 

  (a) 

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

 

 

 

6  

2 0 2 2    B L A C K R O C K    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


Fund Summary as of July 31, 2022    (continued)    BlackRock Future Health ETF

 

Portfolio Management Commentary

The combination of geopolitical issues, elevated inflation, and rising interest rates led to a sharp decline in stock prices during the 12-month period. Faster-growing companies, particularly those on the smaller end of the capitalization range, generally lagged the broader market in the rising-rate environment. This trend weighed heavily on the types of small- to mid-sized healthcare stocks in which the Fund invests. The Fund’s holdings in the healthcare equipment and biotechnology subsectors were notable laggards, while its positions in the managed healthcare and healthcare distributors sub-industries held up better than the healthcare sector as a whole.

The biotechnology companies Acceleron Pharma, Inc. and Vertex Pharmaceuticals were the largest contributors at the individual stock level. Shares of Acceleron rose on the news that Merck & Co would acquire the company, a deal that was completed in the fourth quarter of 2021. Vertex Pharmaceuticals rose on strong results that were driven by sales of its industry-leading treatments for cystic fibrosis.

The in-home healthcare provider Amedisys, Inc. and the biotechnology company Natera, Inc. were the Fund’s two largest detractors. Amedisys was hurt by labor shortages and the acquisition of a competitor at a lower valuation. Natera’s stock dropped after a report from a short seller suggested the company was engaging in improper marketing practices.

Portfolio Information

 

INDUSTRY ALLOCATION

 

Sector

   
Percent of
Total Investments
 
(a) 

Biotechnology

    31.4

Health Care Equipment & Supplies

    22.8  

Health Care Providers & Services

    16.8  

Life Sciences Tools & Services

    15.0  

Pharmaceuticals

    11.7  

Diversified Financial Services

    1.8  

Other (each representing less than 1%)

    0.5  

TEN LARGEST HOLDINGS

 

Security

   
Percent of
Total Investments
 
(a) 

Alcon Inc.

    3.0

Vertex Pharmaceuticals Inc.

    2.8  

Quest Diagnostics Inc.

    2.4  

Argenx SE

    2.3  

McKesson Corp.

    2.3  

AmerisourceBergen Corp.

    2.2  

Waters Corp.

    2.1  

Zoetis Inc.

    2.1  

Halozyme Therapeutics Inc.

    2.1  

ResMed Inc.

    2.0  
  (a) 

Excludes money market funds.

 

 

 

F U N D    S U M M A R Y

  7


Fund Summary as of July 31, 2022    BlackRock Future Innovators ETF

 

Investment Objective

The BlackRock Future Innovators ETF (the “Fund”) seeks long-term capital appreciation.

Performance

 

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

Fund NAV

    (44.34 )%       (11.92 )%        (44.34 )%      (20.81 )% 

Fund Market

    (44.34      (11.94       (44.34     (20.84

Russell 2500 Growth Index

    (22.34      2.27               (22.34     4.21  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was September 29, 2020. The first day of secondary market trading was October 1, 2020.

The Russell 2500 Growth Index measures the performance of the small to mid-cap growth segment of the US equity universe. It includes those Russell 2500 companies with higher growth earning potential as defined by FTSE Russell’s leading style methodology.

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

Expense Example

 

    Actual     Hypothetical 5% Return  
 

 

 

     

 

 

      
     

Beginning
Account Value
(02/01/22
 
 
      

Ending
Account Value
(07/31/22
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/22
 
 
      

Ending
Account Value
(07/31/22
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
    $ 1,000.00        $ 788.70        $ 3.55             $ 1,000.00        $ 1,020.80        $ 4.01          0.80

 

  (a) 

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

 

 

 

8  

2 0 2 2    B L A C K R O C K    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


Fund Summary as of July 31, 2022    (continued)    BlackRock Future Innovators ETF

 

Portfolio Management Commentary

Elevated inflation and rising interest rates combined to weigh heavily on stock market performance in the 12-month period. Faster-growing companies, particularly those on the smaller end of the capitalization range, generally underperformed the overall market. This trend contributed to sizable underperformance for the types of small- to mid-sized stocks in which the Fund invests. While all segments of the Fund lost ground, its positions in the retail, healthcare equipment and services and software and services industries were particularly weak.

The industrial stocks Chart Industries, Inc. and HEICO Corp. were the leading individual contributors. Chart Industries, a global manufacturer of engineered equipment for the clean energy and industrial gas markets, benefited from increasing demand for natural gas. HEICO Corp., a producer of aircraft components for commercial and defense end markets, was boosted by the steady return of leisure and corporate travel coming out of the pandemic.

Vroom, Inc. and Amyris, Inc. were the two largest detractors. Vroom shares declined markedly as the company struggled to achieve profitability targets. It also faced high labor costs and strong competition from a close competitor, Carvana. Amyris, Inc. lagged due to supply chain delays and manufacturing disruptions in China.

Portfolio Information

 

INDUSTRY ALLOCATION

 

Sector

   
Percent of
Total Investments
 
(a) 

Software

    18.9

Life Sciences Tools & Services

    13.4  

Semiconductors & Semiconductor Equipment

    11.4  

Hotels, Restaurants & Leisure

    9.2  

Aerospace & Defense

    6.4  

Health Care Technology

    5.6  

Capital Markets

    4.9  

IT Services

    4.3  

Diversified Consumer Services

    3.7  

Machinery

    3.3  

Health Care Equipment & Supplies

    2.4  

Interactive Media & Services

    2.2  

Internet & Direct Marketing Retail

    2.1  

Auto Components

    2.1  

Biotechnology

    2.0  

Electronic Equipment, Instruments & Components

    1.5  

Entertainment

    1.5  

Building Products

    1.4  

Road & Rail

    1.4  

Equity Real Estate Investment Trusts (REITs)

    1.2  

Other (each representing less than 1%)

    1.1  

TEN LARGEST HOLDINGS

 

Security

   
Percent of
Total Investments
 
(a) 

Monolithic Power Systems Inc.

    3.6

Repligen Corp.

    3.4  

Axon Enterprise Inc.

    3.4  

Entegris Inc.

    3.4  

Planet Fitness Inc., Class A

    3.3  

Chart Industries Inc.

    3.3  

Paylocity Holding Corp.

    3.3  

Bill.com Holdings Inc.

    3.1  

HEICO Corp.

    3.0  

Bio-Techne Corp.

    3.0  
  (a) 

Excludes money market funds.

 

 

 

F U N D    S U M M A R Y

  9


Fund Summary as of July 31, 2022     BlackRock Future Tech ETF

 

Investment Objective

The BlackRock Future Tech ETF (the “Fund”) seeks to maximize total return.

Performance

 

    Average Annual Total Returns           Cumulative Total Returns    
     1 Year     

Since

Inception

           1 Year     

Since

Inception

 

Fund NAV

    (42.12 )%       (9.55 )%        (42.12 )%       (16.84 )% 

Fund Market

    (42.12      (9.52       (42.12      (16.79

MSCI ACWI Index

    (10.48      8.72               (10.48      16.59  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was September 29, 2020. The first day of secondary market trading was October 1, 2020.

MSCI ACWI Index captures large- and mid-cap representation across certain developed emerging markets.

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

Expense Example

 

    Actual           Hypothetical 5% Return  
 

 

 

     

 

 

      
     

Beginning

Account Value

(02/01/22)

 

 

 

      

Ending
Account Value
(07/31/22)
 
 
 
      


Expenses

Paid During
the Period

 


(a) 

           

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $        1,000.00          $        759.10          $        3.84               $        1,000.00          $        1,020.40          $        4.41          0.88

 

  (a) 

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

 

Portfolio Management Commentary

Elevated inflation and rising interest rates combined to weigh heavily on stock market performance in the 12-month period. Faster-growing companies, particularly those on the smaller end of the capitalization range, generally underperformed the overall market. This trend contributed to sizable underperformance for the types of small- to mid-sized technology stocks in which the Fund invests. The Fund’s holdings in media & entertainment stocks were especially weak performers, followed by its positions in the software & services industry. The Fund’s holdings in the automobiles industry contributed positively to performance.

At the individual stock level, the analog chipmaker ON Semiconductor Corp. and the electric vehicle manufacturer Tesla, Inc. were the two leading contributors. Both companies benefitted from the increasingly bright outlook for the electric vehicle market.

The merchant acquirer Lightspeed Commerce, Inc. and the social media company Snap, Inc. were the two largest detractors. Lightspeed Commerce lost ground due to slowing user growth, while Snap declined on concerns that the weaker economic outlook would lead to a decline in spending on digital advertising.

 

 

10  

2 0 2 2    B L A C K R O C K    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


Fund Summary as of July 31, 2022    (continued)    BlackRock Future Tech ETF

 

Portfolio Information

 

INDUSTRY ALLOCATION

 

   

Sector

   
Percent of
Total Investments

(a) 

Semiconductors & Semiconductor Equipment

    29.9

Software

    22.3  

IT Services

    15.4  

Electronic Equipment, Instruments & Components

    5.7  

Automobiles

    4.1  

Interactive Media & Services

    3.8  

Entertainment

    3.8  

Professional Services

    3.6  

Hotels, Restaurants & Leisure

    1.8  

Technology Hardware, Storage & Peripherals

    1.8  

Internet & Direct Marketing Retail

    1.7  

Media

    1.6  

Health Care Technology

    1.4  

Chemicals

    1.1  

Other (each representing less than 1%)

    2.0  

TEN LARGEST HOLDINGS

 

   

Security

   

Percent of

Total Investments

 

(a) 

Tesla Inc.

    4.1

Synopsys Inc.

    3.1  

Marvell Technology Inc.

    3.0  

Wolfspeed Inc.

    2.2  

Samsung SDI Co. Ltd.

    2.1  

Endava PLC

    2.1  

Monolithic Power Systems Inc.

    2.0  

ON Semiconductor Corp.

    2.0  

SOITEC

    1.9  

ASM International NV

    1.8  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D    S U M M A R Y

  11


Fund Summary as of July 31, 2022     BlackRock Future U.S. Themes ETF

 

Investment Objective

The BlackRock Future U.S. Themes ETF (the “Fund”) seeks long-term capital appreciation.

Performance

 

        Cumulative Total Returns  
    

                                 

 

Since

Inception

 

Fund NAV

      (11.99 )% 

Fund Market

      (12.00

S&P 500® Index

        (10.04

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was December 14, 2021. The first day of secondary market trading was December 16, 2021.

The S&P 500® Index covers 500 leading companies and captures approximately 80% coverage of available market capitalization.

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

Expense Example

 

    Actual           Hypothetical 5% Return  
 

 

 

     

 

 

      
     

Beginning
Account Value

(02/01/22)

 
 

 

      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $        1,000.00          $        911.40          $        2.84               $        1,000.00          $        1,021.80          $        3.01          0.60

 

  (a) 

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

 

 

 

12  

2 0 2 2    B L A C K R O C K    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


Fund Summary as of July 31, 2022    (continued)    BlackRock Future U.S. Themes ETF

 

Portfolio Management Commentary

The U.S. stock market moved lower during the reporting period as the Fed’s shift to an aggressive course of interest rate hikes in the face of persistently high inflation led to heightened fears of recession. In addition, market participants were concerned about continued supply chain shocks as China engaged in another round of COVID-driven lockdowns as well as higher energy prices driven in part by the Russia-Ukraine conflict.

The Fund seeks to gain exposure to a spectrum of U.S. market themes ranging from long-term, structural trends to recent, impactful, short-term trends. In doing so, the Fund seeks to benefit from accessing timely and dynamic information to invest across industries that can shape the global economic future. The Fund returned -11.99% for the reporting period, compared to -10.04% for the benchmark, the S&P 500 Index.

The two largest individual contributors to the Fund’s total return over the period were hydrocarbon exploration & production companies Ovintiv Inc. and Devon Energy Corp. Both companies benefited over the period from the sharp rise in oil prices seen amid supply chain pressures driven by the COVID-19 pandemic and Russia’s invasion of Ukraine.

The top two detractors from the Fund’s absolute return were mega-capitalization technology firms Microsoft Corp. and Alphabet Inc. The stocks of the two tech firms fell sharply over the period as increasingly hawkish monetary policy from the Fed and tighter financial conditions led investors away from growth-driven names with valuations based on future earnings and toward value-driven firms with shorter-dated cashflows.

Portfolio Information

 

INDUSTRY ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Semiconductors & Semiconductor Equipment

    11.4

Software

    10.6  

Technology Hardware, Storage & Peripherals

    9.7  

Interactive Media & Services

    9.0  

IT Services

    7.6  

Electronic Equipment, Instruments & Components

    4.4  

Diversified Financial Services

    4.0  

Specialty Retail

    3.8  

Metals & Mining

    3.7  

Capital Markets

    3.2  

Road & Rail

    3.2  

Health Care Providers & Services

    2.9  

Oil, Gas & Consumable Fuels

    2.7  

Hotels, Restaurants & Leisure

    2.3  

Commercial Services & Supplies

    1.8  

Pharmaceuticals

    1.8  

Household Products

    1.7  

Multiline Retail

    1.7  

Banks

    1.7  

Distributors

    1.4  

Food & Staples Retailing

    1.3  

Consumer Finance

    1.1  

Machinery

    1.0  

Internet & Direct Marketing Retail

    1.0  

Beverages

    1.0  

Other (each representing less than 1%)

    6.0  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Apple Inc.

    9.1

Microsoft Corp.

    8.9  

Alphabet Inc., Class C

    4.5  

Alphabet Inc., Class A

    4.5  

Berkshire Hathaway Inc., Class B

    4.0  

Accenture PLC, Class A

    3.4  

UnitedHealth Group Inc.

    2.7  

McDonald’s Corp.

    2.3  

Texas Instruments Inc.

    2.2  

SS&C Technologies Holdings Inc.

    2.1  

 

  (a) 

Excludes money market funds.

 

 

 

 

F U N D    S U M M A R Y

  13


Fund Summary as of July 31, 2022      BlackRock U.S. Carbon Transition Readiness ETF

 

Investment Objective

The BlackRock U.S. Carbon Transition Readiness ETF (the “Fund”) seeks long-term capital appreciation by investing in large- and mid-capitalization U.S. equity securities that may be better positioned to benefit from the transition to a low-carbon economy.

Performance

 

    Average Annual Total Returns           Cumulative Total Returns
     1 Year     

Since

Inception

           1 Year    

Since

Inception

 

Fund NAV

    (6.90 )%       0.94       (6.90 )%      1.24

Fund Market

    (6.96      0.94         (6.96     1.24  

Russell 1000® Index

    (6.87      0.42               (6.87     0.55  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was April 6, 2021. The first day of secondary market trading was April 8, 2021.

The Russell 1000® Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1,000 of the largest securities based on a combination of their market capitalization and current index membership. The index represents approximately 93% of the U.S. market.

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

Expense Example

 

    Actual           Hypothetical 5% Return  
 

 

 

     

 

 

      
     

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $        1,000.00          $        906.60          $        0.66               $        1,000.00          $        1,024.10          $        0.70          0.14

 

  (a) 

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

 

 

 

14  

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Fund Summary as of July 31, 2022    (continued)    BlackRock U.S. Carbon Transition Readiness ETF

 

Portfolio Management Commentary

The Fund’s Low Carbon Economy Transition Readiness (“LCETR”) model-driven investment process evaluates companies’ preparedness for the transition to a low-carbon economy across five “pillars” (i.e., Fossil Fuels, Clean Technology, Energy Management, Waste Management and Water Management). These evaluations are used to determine active portfolio weights relative to the Fund’s benchmark, the Russell 1000® Index.

The U.S. stock market moved lower during the reporting period. Market concerns centered around higher inflation, slowing growth, higher interest rates, continued supply chain shocks and higher energy prices driven in part by the Russia-Ukraine conflict.

In 2021, the United States policy posture and market sentiment rewarded firms making investments to prepare themselves for the carbon transition. In 2022, however, a strong rally in energy prices and a risk-off environment led to retrenchment in the performance for transition-ready companies. Rising energy prices, a market rotation into value-oriented stocks, and market expectations for increased government expenditures on national security negatively impacted the Fund’s performance as these themes benefited companies in the excluded tobacco, defense and fossil fuel sectors.

The Fund returned -6.90% in the 12-month period ended July 31, 2022, essentially in keeping with the -6.87% return for the Russell 1000® Index. During the period, the Energy Management pillar added value via an overweight to CH Robinson Worldwide driven by the company’s progress toward reducing emissions. Conversely, the Waste Management pillar detracted, with positions in Johnson Controls and Xylem underperforming due to supply chain challenges and disappointing earnings. In sector terms, security selection was most additive within information technology, while selection detracted most notably within industrials.

The Fund’s sector weightings remained essentially neutral relative to the benchmark. The Fund had a slight overweight to the consumer discretionary sector and a slight underweight to consumer staples, all within the risk bands employed by the portfolio management process.

By maximizing exposure to companies with higher LCETR scores, the Fund demonstrated 40% lower carbon emission intensity and 24% higher exposure to clean technology revenue than its benchmark as of June 30, 2022.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Information Technology

    27.4

Health Care

    14.3  

Consumer Discretionary

    11.8  

Financials

    11.0  

Industrials

    8.6  

Communication Services

    8.0  

Consumer Staples

    6.0  

Energy

    4.3  

Real Estate

    3.3  

Utilities

    2.7  

Materials

    2.6  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Apple Inc.

    6.4

Microsoft Corp.

    5.9  

Amazon.com Inc.

    3.0  

Tesla Inc.

    2.1  

Alphabet Inc., Class A

    2.1  

Alphabet Inc., Class C

    1.9  

UnitedHealth Group Inc.

    1.7  

Coca-Cola Co. (The)

    1.6  

Johnson & Johnson

    1.3  

Accenture PLC, Class A

    1.3  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D    S U M M A R Y

  15


Fund Summary as of July 31, 2022      BlackRock U.S. Equity Factor Rotation ETF

 

Investment Objective

The BlackRock U.S. Equity Factor Rotation ETF (the “Fund”) seeks to outperform the investment results of the large- and mid-capitalization U.S. equity markets by providing diversified and tactical exposure to style factors via a factor rotation model.

Performance

 

    Average Annual Total Returns           Cumulative Total Returns
     1 Year     

Since

Inception

           1 Year     

Since

Inception

 

Fund NAV

    (9.94 )%       10.13       (9.94 )%       38.44

Fund Market

    (9.97      10.11         (9.97      38.35  

MSCI USA Index

    (6.87      13.88               (6.87      54.82  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was March 19, 2019. The first day of secondary market trading was March 21, 2019.

The MSCI USA Index is designed to measure the performance of the large- and mid cap segments of the US market. The index covers approximately 85% of the free float-adjusted market capitalization in the United States. Effective September 23, 2019, the Fund changed its benchmark against which it measures its performance from a custom weighted index composed of the 80% MSCI USA Index / 20% MSCI USA Minimum Volatility (USD) Index to the MSCI USA Index.

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

Expense Example

 

    Actual           Hypothetical 5% Return  
 

 

 

     

 

 

      
     

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $        1,000.00          $        913.30          $        0.95               $        1,000.00          $        1,023.80          $        1.00          0.20

 

  (a) 

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

 

 

 

16  

2 0 2 2    B L A C K R O C K    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


Fund Summary as of July 31, 2022  (continued)    BlackRock U.S. Equity Factor Rotation ETF

 

Portfolio Management Commentary

The U.S. stock market moved lower during the reporting period, as the Fed’s shift to an aggressive course of interest rate hikes in the face of persistently high inflation led to heightened fears of recession. In addition, market participants were concerned about continued supply chain shocks as China engaged in another round of COVID-driven lockdowns as well as higher energy prices driven in part by the Russia-Ukraine conflict.

The Fund’s actively managed factor rotation strategy seeks diversified exposure to five style factors: value, low size, momentum, quality, and minimum volatility. The Fund seeks to outperform the broader market through the efficacy of these factors, as well as by actively emphasizing exposure to the factors that the investment adviser believes will perform best based on forward-looking insights.

For the 12 months ended July 31, 2022, the Fund returned -9.94%, underperforming the -6.87% return for its benchmark, the MSCI USA Index. For the 12-month period, all five factors delivered negative returns, in keeping with the broader market decline. In relative terms, value and minimum volatility outperformed the MSCI USA Index, while momentum, quality and low size underperformed. As such, an equal-weighted portfolio of the five factors would have underperformed the MSCI USA Index during this period due mostly to the poor relative performance of momentum, quality, and low size.

In addition, the Fund’s overall factor tilting decisions weighed on relative performance. Most notably, the Fund’s relatively growth-oriented positioning in momentum factor stocks detracted as rising interest rates led to deteriorating sentiment with respect to sectors such as information technology. In addition, exposure to the low size factor constrained returns as smaller companies were most impacted by slowing growth and mounting inflationary pressures.

In sector terms, the Fund’s overweight to financials proved additive as rising Treasury yields boosted sentiment around bank and insurance stocks. An underweight to communication services also aided relative performance as shares of growth-oriented, mega-cap constituents Meta Platforms, Inc. and Alphabet Inc. declined sharply while streaming service stocks suffered from the perception of market saturation and came back to earth from pandemic lockdown-driven highs. Conversely, an overweight to information technology detracted as valuations for growth-oriented stocks with more distant prospective earnings were downgraded given a higher interest rate regime. An overweight to industrials also constrained performance as recession fears weighed on sentiment for cyclical areas of the market.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Information Technology

    27.7

Health Care

    16.1  

Consumer Discretionary

    10.6  

Financials

    9.5  

Communication Services

    8.7  

Consumer Staples

    8.5  

Industrials

    6.9  

Energy

    4.4  

Utilities

    3.3  

Real Estate

    2.2  

Materials

    2.1  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Apple Inc.

    5.4

Microsoft Corp.

    4.5  

Johnson & Johnson

    2.0  

Pfizer Inc.

    1.8  

Amazon.com Inc.

    1.8  

Eli Lilly & Co.

    1.8  

Alphabet Inc., Class C

    1.8  

Alphabet Inc., Class A

    1.7  

Nvidia Corp.

    1.6  

Cisco Systems Inc.

    1.4  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D    S U M M A R Y

  17


Fund Summary as of July 31, 2022      BlackRock World ex U.S. Carbon Transition Readiness ETF

 

Investment Objective

The BlackRock World ex U.S. Carbon Transition Readiness ETF (the “Fund”) seeks long-term capital appreciation by investing in large- and mid-capitalization World ex U.S. equity securities that may be better positioned to benefit from the transition to a low-carbon economy.

Performance

 

    Average Annual Total Returns           Cumulative Total Returns
     1 Year     

Since

Inception

           1 Year     

Since

Inception

 

Fund NAV

    (14.15 )%       (7.71 )%        (14.15 )%       (10.06 )% 

Fund Market

    (14.37      (7.73       (14.37      (10.08

MSCI World ex USA Index

    (13.20      (7.11             (13.20      (9.26

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was April 6, 2021. The first day of secondary market trading was April 8, 2021.

The MSCI World ex USA Index captures large- and mid-cap representation across certain developed markets countries, excluding the United States. The index covers approximately 85% of the free float-adjusted market capitalization in each country.

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

Expense Example

 

    Actual           Hypothetical 5% Return  
 

 

 

     

 

 

      
     

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/22)
 
 
 
      

Ending
Account Value
(07/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $        1,000.00          $        884.50          $        0.93               $        1,000.00          $        1,023.80          $        1.00          0.20

 

  (a) 

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

 

 

 

18  

2 0 2 2    B L A C K R O C K    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


Fund Summary as of July 31, 2022  (continued)    BlackRock World ex U.S. Carbon Transition Readiness ETF

 

Portfolio Management Commentary

The Fund’s Low Carbon Economy Transition Readiness (“LCETR”) model-driven investment process evaluates companies’ preparedness for the transition to a low-carbon economy across five “pillars” (i.e., Fossil Fuels, Clean Technology, Energy Management, Waste Management and Water Management). These evaluations are used to determine active portfolio weights relative to the Fund’s benchmark, the MSCI World ex USA Index.

International equities moved lower in the period. Market concerns centered around higher inflation, slowing growth, higher interest rates, continued supply chain shocks and higher energy prices driven in part by the Russia-Ukraine conflict. A risk-off environment was reflected in better relative performance for strategies oriented toward dividend-paying and low volatility stocks.

The Fund returned -14.15% in the 12-month period ended July 31, 2022, underperforming the -13.20% return for the MSCI World ex USA Index. The European energy crisis proved a headwind for the Fund’s relative performance in 2021. Most notably, the Spanish government’s intervention to regulate rising electricity prices weighed disproportionally on the alternative energy generators favored by the Fund. Sustainability-focused strategies broadly have been challenged so far in 2022, and the Fund’s performance has suffered from the exclusion of fossil fuel, defense and tobacco stocks. Despite these short-term obstacles, the investment adviser remained confident in the Fund’s approach over time.

During the period, the Waste Management and Fossil Fuels pillars detracted from performance. In this vein, an overweight to utility Enel SpA, which scored high relative to both pillars, acted as a constraint on relative return amid Europe’s energy crisis and rising interest rates. In sector terms, selection within energy and industrials had the largest adverse impact on results.

The Fund’s country and sector weightings remained essentially neutral relative to the benchmark. The Fund had a slight overweight in the Netherlands and small underweights to Bermuda and Canada. In sector terms, the Fund had a slight overweight to real estate and a slight underweight to utilities, all within the risk bands employed by the portfolio management process.

By maximizing exposure to companies with higher LCETR scores, the Fund demonstrated 32% lower Carbon Emissions Intensity and 43% higher exposure to clean technology revenue than its benchmark as of June 30, 2022.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    19.3

Industrials

    15.1  

Health Care

    12.0  

Consumer Discretionary

    10.9  

Consumer Staples

    10.2  

Information Technology

    8.3  

Materials

    7.8  

Energy

    6.2  

Communication Services

    4.2  

Utilities

    3.3  

Real Estate

    2.7  

GEOGRAPHIC ALLOCATION

 

   

Country/Geographic Region

   
Percent of
Total Investments
 
(a) 

Japan

    20.0

United Kingdom

    13.8  

Canada

    11.9  

Switzerland

    10.1  

France

    9.8  

Australia

    7.7  

Germany

    5.1  

Netherlands

    3.8  

Denmark

    3.3  

Spain

    2.8  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D    S U M M A R Y

  19


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 blackrock.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Disclosure of Expenses

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

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

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in 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.

 

 

20  

2 0 2 2    B L A C K R O C K    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

July 31, 2022

  

BlackRock Future Climate and Sustainable Economy ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Building Products — 3.2%            

Johnson Controls International PLC

    1,191     $ 64,207  

Kingspan Group PLC

    636       41,167  

Owens Corning

    293       27,173  
   

 

 

 
          132,547  
Capital Markets — 1.8%            

Agronomics Ltd.(a)

    339,553       72,780  
   

 

 

 
Chemicals — 13.2%            

Ecolab Inc.

    408       67,389  

FMC Corp.

    362       40,218  

Koninklijke DSM NV

    679       108,741  

Nutrien Ltd.(b)

    1,525       130,632  

Robertet SA

    92       86,130  

Symrise AG

    932       108,751  
   

 

 

 
      541,861  
Commercial Services & Supplies — 6.0%            

Cleanaway Waste Management Ltd.

    86,260       166,179  

Republic Services Inc.

    297       41,182  

Waste Management Inc.

    255       41,963  
   

 

 

 
      249,324  
Construction & Engineering — 1.0%            

Quanta Services Inc.

    294       40,786  
   

 

 

 
Containers & Packaging — 7.1%            

Ball Corp.

    1,181       86,709  

Crown Holdings Inc.

    1,007       102,392  

SIG Group AG

    4,042       105,449  
   

 

 

 
      294,550  
Electric Utilities — 4.2%            

Enel SpA

    26,112       131,637  

NextEra Energy Inc.

    487       41,147  
   

 

 

 
      172,784  
Electrical Equipment — 4.9%            

ITM Power PLC(a)

    5,124       13,378  

Prysmian SpA

    1,013       32,210  

Schneider Electric SE

    490       67,769  

Vestas Wind Systems A/S

    2,078       54,618  

Xinjiang Goldwind Science & Technology Co. Ltd., Class H

    19,400       34,658  
   

 

 

 
      202,633  
Electronic Equipment, Instruments & Components — 4.3%  

Keyence Corp.

    200       79,268  

Samsung SDI Co. Ltd.

    226       99,338  
   

 

 

 
      178,606  
Food Products — 12.7%  

Archer-Daniels-Midland Co.

    1,048       86,743  

Bunge Ltd.

    1,121       103,502  

Darling Ingredients Inc.(a)

    566       39,213  

Kerry Group PLC, Class A

    984       103,862  

Maple Leaf Foods Inc.

    2,230       47,315  

Salmar ASA

    1,459       104,506  

SunOpta Inc.(a)

    4,351       38,376  
   

 

 

 
      523,517  
Independent Power and Renewable Electricity Producers — 4.7%  

EDP Renovaveis SA

    6,146       159,853  

Orron Energy AB

    26,019       32,122  
   

 

 

 
      191,975  
Security   Shares     Value  
Machinery — 14.5%            

Ag Growth International Inc.

    4,191     $ 111,047  

AGCO Corp.

    688       74,937  

Atlas Copco AB, Class A

    3,606       42,152  

Deere & Co.

    416       142,763  

Evoqua Water Technologies Corp.(a)

    2,249       85,709  

Ingersoll Rand Inc.

    1,336       66,533  

John Bean Technologies Corp.

    478       53,684  

Marel HF(c)

    4,315       19,472  
   

 

 

 
          596,297  
Metals & Mining — 0.8%            

Sims Ltd.

    3,339       34,722  
   

 

 

 
Paper & Forest Products — 3.4%            

Mondi PLC

    3,313       62,872  

UPM-Kymmene OYJ

    2,391       75,770  
   

 

 

 
      138,642  
Professional Services — 1.5%            

Bureau Veritas SA

    2,192       60,457  
   

 

 

 
Semiconductors & Semiconductor Equipment — 5.4%  

Analog Devices Inc.

    262       45,054  

Canadian Solar Inc.(a)

    1,174       43,309  

First Solar Inc.(a)

    418       41,453  

Infineon Technologies AG

    3,320       91,049  
   

 

 

 
      220,865  
Software — 4.1%            

Ansys Inc.(a)

    305       85,092  

Dassault Systemes SE

    1,975       84,711  
   

 

 

 
      169,803  
   

 

 

 

Total Common Stocks — 92.8%
(Cost: $4,243,783)

      3,822,149  
   

 

 

 

Warrants

   
Capital Markets — 0.2%            

Agronomics Ltd., (Expires 12/08/23)

    329,052       6,432  
   

 

 

 

Total Warrants — 0.2%
(Cost: $0)

      6,432  
   

 

 

 

Total Long-Term Investments — 93.0%
(Cost: $4,243,783)

      3,828,581  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 10.6%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 1.93%(d)(e)(f)

    127,663       127,650  

BlackRock Cash Funds: Treasury, SL Agency Shares, 1.81%(d)(e)

    310,000       310,000  
   

 

 

 

Total Short-Term Securities — 10.6%
(Cost: $437,650)

      437,650  
   

 

 

 

Total Investments in Securities — 103.6%
(Cost: $4,681,433)

      4,266,231  

Liabilities in Excess of Other Assets — (3.6)%

      (149,826
   

 

 

 

Net Assets — 100.0%

    $   4,116,405  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

 

 

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

  21


Schedule of Investments  (continued)

July 31, 2022

  

BlackRock Future Climate and Sustainable Economy ETF

 

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(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 period ended July 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    
Value at
08/03/21
 
(a) 
   
Purchases
at Cost
 
 
   
Proceeds
from Sale
 
 
   
Net Realized
Gain (Loss)
 
 
   


Change in
Unrealized
Appreciation
(Depreciation)
 
 
 
 
   
Value at
07/31/22
 
 
   

Shares
Held at
07/31/22
 
 
 
    Income      




Capital
Gain
Distributions
from
Underlying
Funds





 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $     $ 127,690 (b)    $     $ (40   $     $ 127,650       127,663     $ 104 (c)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

          310,000 (b)                        310,000       310,000       705        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (40   $     $ 437,650       $ 809     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Commencement of operations.

 
  (b) 

Represents net amount purchased (sold).

 
  (c) 

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.

 

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

   $ 1,748,528        $ 2,073,621        $        $ 3,822,149  

Warrants

              6,432                   6,432  

Money Market Funds

     437,650                            437,650  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,186,178        $ 2,080,053        $        $ 4,266,231  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

22  

2 0 2 2    B L A C K R O C K    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

July 31, 2022

  

BlackRock Future Health ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Biotechnology — 30.6%            

AbbVie Inc.

    725     $ 104,045  

Acumen Pharmaceuticals Inc.(a)

    668       3,634  

Alkermes PLC(a)

    3,791       97,050  

Alnylam Pharmaceuticals Inc.(a)

    120       17,045  

Ambrx Biopharma Inc., ADR(a)

    428       1,190  

Arcutis Biotherapeutics Inc.(a)

    1,200       29,112  

Argenx SE, ADR(a)

    456       166,080  

Arrowhead Pharmaceuticals Inc.(a)

    306       13,014  

Biogen Inc.(a)

    496       106,670  

Biohaven Pharmaceutical Holding Co. Ltd.(a)

    600       87,612  

BioMarin Pharmaceutical Inc.(a)

    1,186       102,055  

Cerevel Therapeutics Holdings Inc.(a)

    976       25,659  

Day One Biopharmaceuticals Inc.(a)

    1,258       21,550  

Decibel Therapeutics Inc.(a)

    469       2,162  

Design Therapeutics Inc.(a)

    243       4,768  

Enanta Pharmaceuticals Inc.(a)

    70       3,861  

Exact Sciences Corp.(a)(b)

    1,637       73,829  

Exelixis Inc.(a)

    1,911       39,978  

Fate Therapeutics Inc.(a)

    163       4,976  

Galapagos NV, ADR(a)

    588       29,935  

Genmab A/S(a)

    110       39,140  

Genmab A/S, ADR(a)(b)

    362       12,894  

Gilead Sciences Inc.

    1,525       91,119  

Halozyme Therapeutics Inc.(a)

    3,038       148,558  

Horizon Therapeutics PLC(a)

    303       25,140  

Imago Biosciences Inc.(a)

    412       6,633  

Immunocore Holdings PLC(a)

    1,240       57,214  

ImmunoGen Inc.(a)

    1,663       7,883  

Incyte Corp.(a)

    1,105       85,836  

Ionis Pharmaceuticals Inc.(a)

    1,528       57,392  

Karuna Therapeutics Inc.(a)

    107       13,937  

Keros Therapeutics Inc.(a)

    763       24,477  

Kinnate Biopharma Inc.(a)

    843       9,020  

Krystal Biotech Inc.(a)

    51       3,702  

Legend Biotech Corp., ADR(a)

    654       30,895  

Moderna Inc.(a)

    325       53,329  

Monte Rosa Therapeutics Inc.(a)

    458       4,154  

MoonLake Immunotherapeutics, NVS(a)

    593       3,736  

Neurocrine Biosciences Inc.(a)

    1,211       113,991  

PMV Pharmaceuticals Inc.(a)

    963       14,397  

Prothena Corp. PLC(a)

    729       22,643  

RAPT Therapeutics Inc.(a)

    629       11,586  

REVOLUTION Medicines Inc.(a)

    1,241       28,034  

Sage Therapeutics Inc.(a)

    328       11,286  

Sarepta Therapeutics Inc.(a)

    1,187       110,332  

Seagen Inc.(a)

    271       48,775  

Sigilon Therapeutics Inc.(a)

    962       681  

Tenaya Therapeutics Inc.(a)

    472       2,251  

TScan Therapeutics Inc.(a)

    1,836       8,060  

Twist Bioscience Corp.(a)

    595       26,025  

Ultragenyx Pharmaceutical Inc.(a)

    191       10,176  

United Therapeutics Corp.(a)

    213       49,218  

Vertex Pharmaceuticals Inc.(a)

    728       204,138  
   

 

 

 
        2,270,877  
Diversified Financial Services — 1.7%  

DA32 Life Science Tech Acquisition Corp., Class A(a)

    4,241       41,307  

Eucrates Biomedical Acquisition Corp.(a)

    2,475       24,602  

Health Assurance Acquisition Corp., Class A(a)

    3,754       37,240  
Security   Shares     Value  
Diversified Financial Services (continued)  

MedTech Acquisition Corp./NY, Class A(a)

    2,544     $ 25,109  
   

 

 

 
        128,258  
Electronic Equipment, Instruments & Components — 0.3%  

908 Devices Inc.(a)

    864       19,440  
   

 

 

 
Health Care Equipment & Supplies — 22.1%  

Abbott Laboratories

    924       100,568  

Abiomed Inc.(a)

    327       95,814  

Alcon Inc.

    2,812       219,589  

Align Technology Inc.(a)

    115       32,312  

Bausch + Lomb Corp.(a)

    1,650       23,744  

ConvaTec Group PLC(c)

    15,684       43,735  

Cooper Companies Inc. (The)

    341       111,507  

Dexcom Inc.(a)

    1,076       88,318  

Edwards Lifesciences Corp.(a)

    759       76,310  

Globus Medical Inc., Class A(a)

    306       17,959  

Hologic Inc.(a)

    886       63,243  

Insulet Corp.(a)

    419       103,828  

Intuitive Surgical Inc.(a)

    333       76,647  

Nevro Corp.(a)

    1,623       70,357  

Novocure Ltd.(a)

    395       26,856  

Nyxoah SA(a)

    1,824       18,441  

Omnicell Inc.(a)

    451       49,664  

Penumbra Inc.(a)(b)

    356       49,619  

Pulmonx Corp.(a)

    585       9,968  

ResMed Inc.

    608       146,236  

Shockwave Medical Inc.(a)

    185       39,022  

SI-BONE Inc.(a)

    596       8,010  

STERIS PLC

    322       72,659  

Tandem Diabetes Care Inc.(a)

    778       51,511  

Teleflex Inc.

    197       47,371  
   

 

 

 
        1,643,288  
Health Care Providers & Services — 16.4%            

Addus HomeCare Corp.(a)

    147       13,643  

agilon health Inc.(a)(b)

    844       21,125  

Amedisys Inc.(a)

    523       62,682  

AmerisourceBergen Corp.

    1,071       156,291  

Amplifon SpA

    943       31,183  

Centene Corp.(a)

    1,169       108,682  

CVS Health Corp.

    527       50,423  

Elevance Health Inc.

    153       72,996  

Encompass Health Corp.

    1,386       70,159  

Enhabit Inc.

    693       12,135  

Guardant Health Inc.(a)

    720       36,122  

Henry Schein Inc.(a)

    221       17,422  

LHC Group Inc.(a)

    331       53,973  

McKesson Corp.

    482       164,642  

Quest Diagnostics Inc.

    1,267       173,034  

R1 RCM Inc.(a)

    2,191       54,775  

UnitedHealth Group Inc.

    215       116,603  
   

 

 

 
      1,215,890  
Health Care Technology — 0.0%            

Sophia Genetics SA(a)

    825       2,846  
   

 

 

 
Life Sciences Tools & Services — 14.6%            

10X Genomics Inc., Class A(a)

    290       11,643  

Agilent Technologies Inc.

    1,014       135,977  

Bio-Techne Corp.

    150       57,792  

Bruker Corp.

    1,227       84,111  

Cytek Biosciences Inc.(a)

    2,380       30,464  

 

 

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

  23


Schedule of Investments  (continued)

July 31, 2022

  

BlackRock Future Health ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Life Sciences Tools & Services (continued)            

Danaher Corp.

    206     $ 60,043  

IQVIA Holdings Inc.(a)

    506       121,577  

IsoPlexis Corp(a)(b)

    480       1,603  

Lonza Group AG, Registered

    60       36,465  

Mettler-Toledo International Inc.(a)

    31       41,842  

QIAGEN NV(a)

    2,078       103,152  

Sotera Health Co.(a)

    3,729       71,597  

Thermo Fisher Scientific Inc.

    229       137,036  

Waters Corp.(a)

    420       152,893  

Wuxi Biologics Cayman Inc., New(a)(c)

    4,000       38,288  
   

 

 

 
      1,084,483  
Personal Products — 0.2%            

Haleon PLC, ADR, NVS(b)

    1,617       11,367  
   

 

 

 
Pharmaceuticals — 11.4%            

AstraZeneca PLC

    817       54,110  

Bristol-Myers Squibb Co.

    748       55,187  

Daiichi Sankyo Co. Ltd.

    4,600       121,968  

Eisai Co. Ltd.

    1,200       54,954  

GSK PLC, ADR, NVS

    1,293       54,526  

H Lundbeck A/S

    4,359       21,545  

H Lundbeck A/S, Class A(a)

    1,306       6,226  

Merck & Co. Inc.

    856       76,475  

Pfizer Inc.

    1,031       52,076  

Sanofi, ADR

    2,388       118,683  

UCB SA

    997       77,904  

Zoetis Inc.

    823       150,239  
   

 

 

 
      843,893  
   

 

 

 

Total Common Stocks — 97.3%
(Cost: $7,409,122)

          7,220,342  
   

 

 

 

Warrants

   
Diversified Financial Services — 0.0%            

Eucrates Biomedical Acquisition Corp., (Expires 12/14/25)(a)

    825       36  
   

 

 

 

Total Warrants — 0.0%
(Cost: $1,069)

      36  
   

 

 

 

Total Long-Term Investments — 97.3%
(Cost: $7,410,191)

      7,220,378  
   

 

 

 
Security   Shares     Value  

Short-Term Securities

 

Money Market Funds — 4.2%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 1.93%(d)(e)(f)

    133,833     $ 133,820  

BlackRock Cash Funds: Treasury, SL Agency Shares, 1.81%(d)(e)

    180,000       180,000  
   

 

 

 

Total Short-Term Securities — 4.2%
(Cost: $313,794)

 

    313,820  
   

 

 

 

Total Investments in Securities — 101.5%
(Cost: $7,723,985)

 

    7,534,198  

Liabilities in Excess of Other Assets — (1.5)%

 

    (108,414
   

 

 

 

Net Assets — 100.0%

 

  $   7,425,784  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(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 year ended July 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
07/31/21
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
07/31/22
    Shares
Held at
07/31/22
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 185,281     $     $ (51,232 )(a)    $ (255   $ 26     $ 133,820       133,833     $ 1,001 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    430,000             (250,000 )(a)                  180,000       180,000       1,074        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (255   $ 26     $ 313,820       $ 2,075     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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.

 

 

 

24  

2 0 2 2    B L A C K R O C K    A N N U A L    R E P O R T    T O    S H A R E H O L D E R S


Schedule of Investments  (continued)

July 31, 2022

  

BlackRock Future Health 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

   $ 6,776,705        $ 443,637        $        $ 7,220,342  

Warrants

     36                            36  

Money Market Funds

     313,820                            313,820  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 7,090,561        $   443,637        $         —        $ 7,534,198  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

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

  25


Schedule of Investments

July 31, 2022

  

BlackRock Future Innovators ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 6.2%  

Axon Enterprise Inc.(a)(b)

    2,349     $     258,836  

HEICO Corp.

    1,438       226,787  
   

 

 

 
      485,623  
Auto Components — 2.0%            

Fox Factory Holding Corp.(a)

    1,652       156,378  
   

 

 

 
Biotechnology — 1.9%            

Halozyme Therapeutics Inc.(a)

    3,086       150,905  
   

 

 

 
Building Products — 1.4%            

AZEK Co. Inc. (The)(a)

    5,207       107,681  
   

 

 

 
Capital Markets — 4.7%            

TPG Inc.(b)

    5,738       163,648  

Tradeweb Markets Inc., Class A

    2,929       206,553  
   

 

 

 
      370,201  
Diversified Consumer Services — 3.6%            

Bright Horizons Family Solutions Inc.(a)

    1,036       97,042  

Duolingo Inc, Class A(a)

    1,996       183,133  
   

 

 

 
      280,175  
Electronic Equipment, Instruments & Components — 1.5%  

908 Devices Inc.(a)(b)

    2,200       49,500  

Halma PLC

    2,364       66,577  
   

 

 

 
      116,077  
Entertainment — 1.4%            

Kahoot! ASA(a)(b)

    46,445       111,363  
   

 

 

 
Equity Real Estate Investment Trusts (REITs) — 1.2%  

Innovative Industrial Properties Inc.

    228       21,982  

Rexford Industrial Realty Inc.

    1,083       70,839  
   

 

 

 
      92,821  
Food Products — 0.6%            

Freshpet Inc.(a)(b)

    920       49,165  
   

 

 

 
Health Care Equipment & Supplies — 2.4%  

Figs Inc., Class A(a)

    7,610       80,438  

Inmode Ltd.(a)(b)

    2,365       78,612  

Pulmonx Corp.(a)

    1,555       26,497  
   

 

 

 
      185,547  
Health Care Technology — 5.5%            

Certara Inc.(a)

    7,875       181,046  

Doximity Inc., Class A(a)

    4,073       172,370  

Phreesia Inc.(a)

    3,129       73,500  
   

 

 

 
      426,916  
Hotels, Restaurants & Leisure — 8.9%            

Evolution AB(c)

    2,078       201,630  

Penn National Gaming Inc.(a)

    3,788       130,875  

Planet Fitness Inc., Class A(a)

    3,199       252,113  

Wingstop Inc.

    871       109,903  
   

 

 

 
      694,521  
Interactive Media & Services — 2.2%  

Match Group Inc.(a)

    2,326       170,519  
   

 

 

 
Internet & Direct Marketing Retail — 2.0%  

Etsy Inc.(a)

    700       72,604  

Fiverr International Ltd.(a)

    2,687       86,199  
   

 

 

 
      158,803  
Security   Shares     Value  
IT Services — 4.2%  

DigitalOcean Holdings Inc.(a)(b)

    2,864     $ 117,367  

Globant SA(a)

    1,037       206,612  
   

 

 

 
      323,979  
Life Sciences Tools & Services — 13.0%  

10X Genomics Inc., Class A(a)

    1,047       42,037  

Azenta Inc.

    2,395       163,483  

Bio-Techne Corp.

    582       224,233  

Charles River Laboratories International Inc.(a)(b)

    578       144,812  

Olink Holding AB, ADR(a)(b)

    3,168       42,609  

Repligen Corp.(a)

    1,219       260,086  

West Pharmaceutical Services Inc.

    405       139,142  
   

 

 

 
          1,016,402  
Machinery — 3.2%            

Chart Industries Inc.(a)

    1,277       249,130  
   

 

 

 
Road & Rail — 1.4%            

Saia Inc.(a)

    450       107,033  
   

 

 

 
Semiconductors & Semiconductor Equipment — 11.1%  

Ambarella Inc.(a)

    1,992       172,408  

Entegris Inc.

    2,342       257,386  

Lattice Semiconductor Corp.(a)

    2,639       162,298  

Monolithic Power Systems Inc.

    591       274,649  
   

 

 

 
      866,741  
Software — 18.4%            

Avalara Inc.(a)

    1,343       117,405  

Bill.com Holdings Inc.(a)

    1,766       238,551  

Confluent Inc., Class A(a)

    7,292       185,581  

Five9 Inc.(a)

    2,013       217,646  

Gitlab Inc., Class A(a)

    3,194       183,336  

HubSpot Inc.(a)

    484       149,072  

Paylocity Holding Corp.(a)

    1,199       246,910  

SiteMinder Ltd.(a)

    32,555       97,214  
   

 

 

 
      1,435,715  
Specialty Retail — 0.5%            

Leslie’s Inc.(a)

    2,328       35,292  
   

 

 

 

Total Long-Term Investments — 97.3%
(Cost: $9,864,482)

      7,590,987  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 15.3%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 1.93%(d)(e)(f)

    980,077       979,979  

BlackRock Cash Funds: Treasury, SL Agency Shares, 1.81%(d)(e)

    210,000       210,000  
   

 

 

 

Total Short-Term Securities — 15.3%
(Cost: $1,189,787)

      1,189,979  
   

 

 

 

Total Investments in Securities — 112.6%
(Cost: $11,054,269)

      8,780,966  

Liabilities in Excess of Other Assets — (12.6)%

 

    (980,842
   

 

 

 

Net Assets — 100.0%

    $ 7,800,124  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

 

 

26  

2 0 2 2    B L A C K R O C K    A N N U A L    R E P O R T    T O    S H A R E H O L D E R S


Schedule of Investments  (continued)

July 31, 2022

  

BlackRock Future Innovators ETF

 

(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 year ended July 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
07/31/21
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
07/31/22
    Shares
Held at
07/31/22
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 3,154,417     $     $ (2,173,836 )(a)    $ (794   $ 192     $ 979,979       980,077     $ 3,299 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    50,000       160,000 (a)                        210,000       210,000       592        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (794   $ 192     $ 1,189,979       $ 3,891     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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.

 

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

   $ 7,114,203        $ 476,784        $        $ 7,590,987  

Money Market Funds

     1,189,979                            1,189,979  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 8,304,182        $   476,784        $         —        $ 8,780,966  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

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

  27


Schedule of Investments

July 31, 2022

  

BlackRock Future Tech ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Automobiles — 3.8%            

Tesla Inc.(a)

    537     $     478,709  
   

 

 

 
Chemicals — 1.0%            

CNGR Advanced Material Co. Ltd., Class A

    3,900       71,956  

Shenzhen Dynanonic Co. Ltd., Class A

    1,100       58,509  
   

 

 

 
      130,465  
Electrical Equipment — 0.7%            

Yantai Zhenghai Magnetic Material Co. Ltd.(a)

    35,800       91,439  
   

 

 

 
Electronic Equipment, Instruments & Components — 5.3%  

E Ink Holdings Inc.

    17,000       111,839  

II-VI Inc.(a)(b)

    1,396       73,486  

Jabil Inc.(b)

    2,594       153,928  

Samsung SDI Co. Ltd.

    556       244,390  

Xiamen Faratronic Co. Ltd., Class A

    2,800       86,714  
   

 

 

 
      670,357  
Entertainment — 3.5%            

Bilibili Inc., ADR(a)

    1,866       45,605  

CTS Eventim AG & Co. KGaA(a)

    1,262       69,515  

NetEase Inc.

    4,700       87,922  

Roku Inc.(a)

    701       45,929  

Take-Two Interactive Software Inc.(a)

    1,467       194,715  
   

 

 

 
      443,686  
Health Care Providers & Services — 0.7%  

agilon health Inc.(a)

    3,483       87,179  
   

 

 

 
Health Care Technology — 1.3%            

Definitive Healthcare Corp.(a)

    3,043       79,057  

Doximity Inc., Class A(a)(b)

    2,018       85,402  
   

 

 

 
      164,459  
Hotels, Restaurants & Leisure — 1.7%            

Expedia Group Inc.(a)

    857       90,885  

Trip.com Group Ltd., ADR(a)

    4,884       125,909  
   

 

 

 
      216,794  
Interactive Media & Services — 3.6%            

Eventbrite Inc., Class A(a)(b)

    5,628       52,678  

Kakao Corp.

    3,354       193,681  

Kanzhun Ltd., ADR(a)

    2,902       68,226  

ZoomInfo Technologies Inc.(a)(b)

    3,652       138,374  
   

 

 

 
      452,959  
Internet & Direct Marketing Retail — 1.6%  

MercadoLibre Inc.(a)

    107       87,067  

Prosus NV, Class N

    1,726       112,596  
   

 

 

 
      199,663  
IT Services — 14.5%            

Adyen NV(a)(c)

    84       151,097  

Amadeus IT Group SA(a)

    2,012       117,320  

AvidXchange Holdings Inc.(a)

    3,525       25,451  

Block Inc.(a)

    905       68,834  

Cloudflare Inc., Class A(a)

    1,587       79,858  

Dlocal Ltd./Uruguay, Class A(a)(b)

    2,419       67,200  

Endava PLC, ADR(a)(b)

    2,383       243,066  

Global Payments Inc.

    973       119,018  

GMO Payment Gateway Inc.

    1,100       91,413  

Grid Dynamics Holdings Inc.(a)

    5,676       107,106  

Kakao Pay Corp.(a)

    830       40,275  

Locaweb Servicos de Internet SA(a)(c)

    53,541       70,055  

MongoDB Inc. (a)

    639       199,668  
Security   Shares     Value  
IT Services (continued)            

Okta Inc.(a)

    1,167     $ 114,891  

Shift4 Payments Inc., Class A(a)(b)

    3,430       124,955  

Thoughtworks Holding Inc.(a)

    5,433       85,081  

Twilio Inc., Class A(a)

    931       78,949  

Wise PLC(a)

    6,035       34,731  
   

 

 

 
          1,818,968  
Machinery — 0.4%            

Shenzhen Inovance Technology Co. Ltd., Class A

    5,600       54,888  
   

 

 

 
Media — 1.5%            

Informa PLC(a)

    25,563       185,911  
   

 

 

 
Professional Services — 3.4%            

Legalzoomcom Inc.(a)(b)

    4,149       43,481  

Planet Labs PBC(a)(b)

    8,575       45,705  

TransUnion

    2,608       206,632  

Wolters Kluwer NV

    1,158       125,761  
   

 

 

 
      421,579  
Semiconductors & Semiconductor Equipment — 27.9%  

Alphawave IP Group PLC(a)

    32,913       53,950  

Ambarella Inc.(a)

    1,147       99,273  

Andes Technology Corp.

    4,000       35,724  

ASM International NV

    702       215,634  

BE Semiconductor Industries NV

    2,086       111,980  

Credo Technology Group Holdings Ltd.(a)(b)

    8,425       135,221  

Entegris Inc.

    1,849       203,205  

KLA Corp.

    446       171,059  

Lasertec Corp.

    1,300       186,121  

Lattice Semiconductor Corp.(a)

    3,308       203,442  

MACOM Technology Solutions Holdings Inc., Class H(a)

    2,121       122,891  

Marvell Technology Inc.

    6,302       350,895  

Monolithic Power Systems Inc.(b)

    499       231,895  

Montage Technology Co. Ltd., Class A

    6,400       54,355  

NAURA Technology Group Co. Ltd., Class A

    1,400       52,783  

Nordic Semiconductor ASA(a)

    5,807       102,050  

ON Semiconductor Corp.(a)

    3,451       230,458  

Silergy Corp.

    5,000       93,572  

SOITEC(a)

    1,377       220,412  

StarPower Semiconductor Ltd., Class A

    1,300       75,169  

Tower Semiconductor Ltd.(a)(b)

    4,215       201,730  

Ultra Clean Holdings Inc.(a)

    3,235       108,696  

Wolfspeed Inc.(a)

    3,078       256,397  
   

 

 

 
      3,516,912  
Software — 20.9%            

Altair Engineering Inc., Class A(a)

    1,854       109,219  

Altium Ltd.

    7,279       160,741  

AppLovin Corp., Class A(a)(b)

    2,054       72,999  

Aspen Technology Inc.(a)

    504       102,861  

Atlassian Corp. PLC, Class A(a)

    719       150,501  

Avalara Inc.(a)

    1,108       96,861  

Bill.com Holdings Inc.(a)(b)

    705       95,231  

Confluent Inc., Class A(a)

    1,964       49,984  

CS Disco Inc.(a)(b)

    3,916       96,099  

Elastic NV(a)

    1,120       89,477  

Expensify Inc., Class A(a)(b)

    2,982       59,521  

Freee KK(a)(b)

    2,500       60,898  

Gitlab Inc., Class A(a)

    606       34,784  

Glodon Co. Ltd., Class A

    14,371       98,788  

HashiCorp Inc.(a)

    1,031       37,363  

Lightspeed Commerce Inc.(a)

    3,050       65,452  

 

 

28  

2 0 2 2    B L A C K R O C K    A N N U A L    R E P O R T    T O    S H A R E H O L D E R S


Schedule of Investments  (continued)

July 31, 2022

  

BlackRock Future Tech ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Software (continued)            

Palantir Technologies Inc., Class A(a)

    4,994     $ 51,688  

Palo Alto Networks Inc.(a)

    383       191,155  

Samsara Inc.(a)(b)

    3,362       48,615  

SiteMinder Ltd.(a)

    69,729       208,220  

Synopsys Inc.(a)

    1,003       368,603  

Unity Software Inc.(a)(b)

    1,817       67,938  

Xero Ltd.(a)

    2,260       148,886  

Zscaler Inc.(a)

    803       124,513  

ZWSOFT Co. Ltd. Guangzhou

    1,269       40,761  
   

 

 

 
      2,631,158  
Technology Hardware, Storage & Peripherals — 1.7%  

Pure Storage Inc., Class A(a)

    7,471       211,803  
   

 

 

 

Total Long-Term Investments — 93.5%
(Cost: $13,563,757)

        11,776,929  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 20.4%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 1.93%(d)(e)(f)

    1,738,089       1,737,915  
Security   Shares     Value  
Money Market Funds (continued)            

BlackRock Cash Funds: Treasury, SL Agency Shares, 1.81%(d)(e)

    830,000     $ 830,000  
   

 

 

 

Total Short-Term Securities — 20.4%
(Cost: $2,567,635)

      2,567,915  
   

 

 

 

Total Investments in Securities — 113.9%
(Cost: $16,131,392)

 

    14,344,844  

Liabilities in Excess of Other Assets — (13.9)%

 

    (1,746,759
   

 

 

 

Net Assets — 100.0%

    $   12,598,085  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d)

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(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 year ended July 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
07/31/21
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
07/31/22
    Shares
Held at
07/31/22
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 2,980,120     $     $ (1,241,209 )(a)    $ (1,276   $ 280     $ 1,737,915       1,738,089     $ 17,665 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    870,000             (40,000 )(a)                  830,000       830,000       2,296        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (1,276   $ 280     $ 2,567,915       $ 19,961     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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.

 

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

   $ 8,021,639        $ 3,755,290        $        $ 11,776,929  

Money Market Funds

     2,567,915                            2,567,915  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 10,589,554        $   3,755,290        $             —        $ 14,344,844  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

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

  29


Schedule of Investments  

July 31, 2022

  

BlackRock Future U.S. Themes ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Air Freight & Logistics — 0.1%            

United Parcel Service Inc., Class B

    25     $ 4,872  
   

 

 

 
Automobiles — 0.4%            

Ford Motor Co.

    1,079       15,850  
   

 

 

 
Banks — 1.7%            

JPMorgan Chase & Co.

    600       69,216  

PNC Financial Services Group Inc. (The)

    15       2,489  
   

 

 

 
      71,705  
Beverages — 1.0%            

Coca-Cola Co. (The)

    477       30,609  

PepsiCo Inc.

    77       13,472  
   

 

 

 
      44,081  
Biotechnology — 0.5%            

AbbVie Inc.

    164       23,536  
   

 

 

 
Building Products — 0.2%            

Builders FirstSource Inc.(a)

    69       4,692  

Johnson Controls International PLC

    58       3,127  
   

 

 

 
      7,819  
Capital Markets — 3.1%            

Affiliated Managers Group Inc.

    235       29,699  

Ameriprise Financial Inc.

    45       12,146  

Ares Management Corp., Class A

    244       17,483  

Bank of New York Mellon Corp. (The)

    72       3,129  

Charles Schwab Corp. (The)

    255       17,608  

Goldman Sachs Group Inc. (The)

    30       10,002  

Moody’s Corp.

    10       3,103  

Morgan Stanley

    180       15,174  

Raymond James Financial Inc.

    130       12,801  

S&P Global Inc.

    3       1,131  

Stifel Financial Corp.

    240       14,354  
   

 

 

 
      136,630  
Chemicals — 0.8%            

Olin Corp.

    677       35,387  
   

 

 

 
Commercial Services & Supplies — 1.8%  

Clean Harbors Inc.(a)

    206       20,104  

Copart Inc.(a)

    95       12,169  

Waste Connections Inc.

    299       39,878  

Waste Management Inc.

    25       4,114  
   

 

 

 
      76,265  
Consumer Finance — 1.1%            

American Express Co.

    268       41,278  

Capital One Financial Corp.

    45       4,942  

Discover Financial Services

    15       1,515  
   

 

 

 
      47,735  
Distributors — 1.4%            

Genuine Parts Co.

    263       40,205  

LKQ Corp.

    362       19,852  
   

 

 

 
      60,057  
Diversified Financial Services — 3.9%            

Berkshire Hathaway Inc., Class B(a)

    570           171,342  
   

 

 

 
Electronic Equipment, Instruments & Components — 4.4%  

Amphenol Corp., Class A

    1,050       80,986  

Arrow Electronics Inc.(a)

    440       56,395  

CDW Corp./DE

    5       908  

Jabil Inc.

    515       30,560  
Security   Shares     Value  
Electronic Equipment, Instruments & Components (continued)  

Keysight Technologies Inc.(a)

    65     $ 10,569  

TD SYNNEX Corp.

    60       6,025  

Trimble Inc.(a)

    60       4,166  
   

 

 

 
      189,609  
Food & Staples Retailing — 1.2%            

Costco Wholesale Corp.

    59       31,937  

Walmart Inc.

    166       21,920  
   

 

 

 
      53,857  
Food Products — 0.1%            

Hershey Co. (The)

    15       3,419  
   

 

 

 
Health Care Providers & Services — 2.8%            

HCA Healthcare Inc.

    35       7,434  

McKesson Corp.

    5       1,708  

UnitedHealth Group Inc.

    211       114,434  
   

 

 

 
      123,576  
Hotels, Restaurants & Leisure — 2.2%            

McDonald’s Corp.

    365       96,130  

Yum! Brands Inc.

    7       858  
   

 

 

 
      96,988  
Household Durables — 0.9%            

DR Horton Inc.

    194       15,138  

Meritage Homes Corp.(a)

    41       3,620  

PulteGroup Inc.

    257       11,210  

Toll Brothers Inc.

    145       7,131  
   

 

 

 
      37,099  
Household Products — 1.7%            

Procter & Gamble Co. (The)

    528       73,344  
   

 

 

 
Insurance — 0.5%            

American Financial Group Inc./OH

    42       5,615  

Loews Corp.

    94       5,475  

Marsh & McLennan Companies Inc.

    55       9,018  

W R Berkley Corp.

    51       3,189  
   

 

 

 
      23,297  
Interactive Media & Services — 8.8%            

Alphabet Inc., Class A(a)

    1,640       190,765  

Alphabet Inc., Class C, NVS(a)

    1,660       193,622  
   

 

 

 
      384,387  
Internet & Direct Marketing Retail — 1.0%            

Amazon.com Inc.(a)

    328       44,263  
   

 

 

 
IT Services — 7.5%            

Accenture PLC, Class A

    475       145,473  

Automatic Data Processing Inc.

    60       14,467  

Broadridge Financial Solutions Inc.

    10       1,606  

Cognizant Technology Solutions Corp., Class A

    444       30,174  

Genpact Ltd.

    530       25,482  

Paychex Inc.

    135       17,318  

SS&C Technologies Holdings Inc.

    1,540       91,122  
   

 

 

 
          325,642  
Machinery — 1.0%            

Dover Corp.

    40       5,347  

Graco Inc.

    221       14,843  

Lincoln Electric Holdings Inc.

    173       24,469  
   

 

 

 
      44,659  
Marine — 0.2%            

Matson Inc.

    79       7,242  
   

 

 

 

 

 

30  

2 0 2 2    B L A C K R O C K    A N N U A L    R E P O R T    T O    S H A R E H O L D E R S


Schedule of Investments  (continued)

July 31, 2022

  

BlackRock Future U.S. Themes ETF

(Percentages shown are based on Net Assets)

 

<
Security   Shares     Value  
Metals & Mining — 3.6%            

Commercial Metals Co.

    243     $ 9,628  

Nucor Corp.

    557       75,640  

Reliance Steel & Aluminum Co.

    40       7,610  

Steel Dynamics Inc.

    399       31,074  

U.S. Steel Corp.

    1,455       34,411  
   

 

 

 
      158,363  
Multiline Retail — 1.7%            

Dillard’s Inc., Class A

    109       24,781  

Dollar Tree Inc.(a)

    26       4,299  

Nordstrom Inc.

    976       22,946  

Target Corp.

    125       20,423  
   

 

 

 
      72,449  
Oil, Gas & Consumable Fuels — 2.7%            

APA Corp.

    50       1,859  

ConocoPhillips

    134       13,056