BlackRock ETF Trust

Table of Contents

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

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

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

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

Investment Objective

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

Performance

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

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

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

Investment Objective

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

Performance

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

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

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

Investment Objective

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

Performance

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

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

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.

Portfolio Information

Investment Objective

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

Performance

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

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

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

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

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

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

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

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

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

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

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

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

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

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

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

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.