LOGO

  FEBRUARY 28, 2022

 

  

2022 Semi-Annual Report

(Unaudited)

 

 

iShares, Inc.

·  iShares ESG Aware MSCI EM ETF | ESGE | NASDAQ

·   iShares MSCI Emerging Markets ex China ETF | EMXC | NASDAQ

·   iShares MSCI Emerging Markets Min Vol Factor ETF | EEMV | Cboe BZX

·   iShares MSCI Emerging Markets Multifactor ETF | EMGF | Cboe BZX

·   iShares MSCI Global Min Vol Factor ETF | ACWV | Cboe BZX


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of February 28, 2022 saw a continuation of the resurgent growth that followed the initial coronavirus (or “COVID-19”) pandemic reopening, albeit at a slower pace. The global economy weathered the emergence of several variant strains and the resulting peaks and troughs in infections amid optimism that increasing vaccinations and economic adaptation could help contain the pandemic’s disruptions. However, rapid changes in consumer spending led to supply constraints and elevated inflation. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the invasion has presented challenges for both investors and policymakers.

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

The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose during the reporting period as the economy expanded rapidly and inflation reached its highest annualized reading in decades. In the corporate bond market, the improving economy assuaged credit concerns and led to modest returns for high-yield corporate bonds, outpacing the negative return of investment-grade corporate bonds. The U.S. Federal Reserve (the “Fed”) maintained accommodative monetary policy during the reporting period by keeping near-zero interest rates. However, the Fed’s tone shifted during the period, as it reduced its bond-buying program and raised the prospect of higher rates in 2022. Continued high inflation and the Fed’s new stance led many analysts to anticipate that the Fed will raise interest rates multiple times throughout the year.

Looking ahead, however, the horrific war in Ukraine has significantly clouded the outlook for the global economy. Sanctions on Russia and general wartime disruption are likely to drive already-high commodity prices even further upwards, and we have already seen spikes in energy and metal markets. While this will exacerbate inflationary pressure, it could also constrain economic growth, making the Fed’s way forward less clear. Its challenge will be combating inflation without stifling a recovery that is now facing additional supply shocks.

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

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

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

 

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of February 28, 2022
     
      6-Month     12-Month 
   

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

  (2.62)%    16.39%
   

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

  (9.46)       (6.01)   
   

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

  (6.78)       2.83    
   

Emerging market equities
(MSCI Emerging Markets Index)

  (9.81)       (10.69)   
   

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

  0.02        0.04    
   

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

  (3.94)       (1.67)   
   

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

  (4.07)       (2.64)   
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

  (3.09)       (0.66)   
   

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

  (3.07)       0.64     
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

2  

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  

Fund Summary

     4  

About Fund Performance

     9  

Shareholder Expenses

     9  

Schedules of Investments

     10  

Financial Statements

  

Statements of Assets and Liabilities

     41  

Statements of Operations

     43  

Statements of Changes in Net Assets

     45  

Financial Highlights

     48  

Notes to Financial Statements

     53  

Statement Regarding Liquidity Risk Management Program

     64  

Supplemental Information

     65  

General Information

     66  

Glossary of Terms Used in this Report

     67  

 

 

 


Fund Summary as of February 28, 2022    iShares® ESG Aware MSCI EM ETF

 

Investment Objective

The iShares ESG Aware MSCI EM ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities that have positive environmental, social and governance characteristics as identified by the index provider while exhibiting risk and return characteristics similar to those of the parent index, as represented by the MSCI Emerging Markets Extended ESG Focus Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6 Months      1 Year      5 Years      Since
Inception
            1 Year      5 Years      Since
Inception
 

Fund NAV

    (11.61 )%       (11.33 )%       7.19      9.42        (11.33 )%       41.49      66.63

Fund Market

    (10.29      (10.77      7.37        9.61          (10.77      42.69        68.27  

Index

    (11.20      (10.47      7.67        10.07                (10.47      44.68        72.36  

The inception date of the Fund was 6/28/16. The first day of secondary market trading was 6/30/16.

Index performance through May 31, 2018 reflects the performance of the MSCI Emerging Markets ESG Focus Index. Index performance beginning on June 1, 2018 reflects the performance of the MSCI Emerging Markets Extended ESG Focus Index.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.

Expense Example

 

Actual           Hypothetical 5% Return                    

 

 

     

 

 

           
 

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
                 

Annualized
Expense
Ratio
 
 
 
  $       1,000.00          $         883.90          $       1.17               $      1,000.00          $      1,023.60          $        1.25                     0.25

 

  (a) 

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

 

Portfolio Information

 

ALLOCATION BY SECTOR  
   
Sector    
Percent of
Total Investments
 
(a) 

Financials

    25.6

Information Technology

    22.7  

Consumer Discretionary

    12.7  

Communication Services

    10.9  

Materials

    6.4  

Consumer Staples

    5.5  

Health Care

    4.5  

Industrials

    4.3  

Energy

    3.8  

Utilities

    1.8  

Real Estate

    1.8  
TEN LARGEST GEOGRAPHIC ALLOCATION  
   
Country/Geographic Region    
Percent of
Total Investments
 
(a) 

China

    29.9

Taiwan

    17.4  

South Korea

    12.8  

India

    12.5  

South Africa

    4.4  

Brazil

    4.1  

Saudi Arabia

    3.1  

Malaysia

    2.8  

Thailand

    2.5  

United Arab Emirates

    1.8  
  (a) 

Excludes money market funds.

 

 

 

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


Fund Summary as of February 28, 2022    iShares® MSCI Emerging Markets ex China ETF

 

Investment Objective

The iShares MSCI Emerging Markets ex China ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities, excluding China, as represented by the MSCI Emerging Markets ex China Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (6.81 )%       1.64     5.41       1.64      27.56

Fund Market

    (5.44      3.14       5.75         3.14        29.48  

Index

    (6.15      3.30       6.06               3.30        31.23  

The inception date of the Fund was 7/18/17. The first day of secondary market trading was 7/20/17.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.

Expense Example

 

Actual           Hypothetical 5% Return                    

 

 

     

 

 

           
 

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
                 

Annualized
Expense
Ratio
 
 
 
  $       1,000.00          $         931.90          $       1.20               $      1,000.00          $      1,023.60          $      1.25                     0.25

 

  (a) 

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

 

Portfolio Information

 

ALLOCATION BY SECTOR  
   
Sector    
Percent of
Total Investments
 
(a) 

Information Technology

    29.3

Financials

    23.4  

Materials

    11.7  

Communication Services

    6.7  

Energy

    6.0  

Consumer Staples

    5.9  

Consumer Discretionary

    5.6  

Industrials

    5.1  

Health Care

    2.8  

Utilities

    2.4  

Real Estate

    1.1  
TEN LARGEST GEOGRAPHIC ALLOCATION  
   
Country/Geographic Region    
Percent of
Total Investments
 
(a) 

Taiwan

    23.8

India

    18.3  

South Korea

    18.3  

Brazil

    7.4  

Saudi Arabia

    5.9  

South Africa

    5.5  

Mexico

    3.1  

Thailand

    2.7  

Indonesia

    2.5  

Malaysia

    2.2  
  (a) 

Excludes money market funds.

 

 

 

U N D   S U M M A R Y

  5


Fund Summary as of February 28, 2022    iShares® MSCI Emerging Markets Min Vol Factor ETF

 

Investment Objective

The iShares MSCI Emerging Markets Min Vol Factor ETF (the “Fund”) seeks to track the investment results of an index composed of emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader emerging equity markets, as represented by the MSCI Emerging Markets Minimum Volatility (USD) Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (1.94 )%       1.18      6.10      3.41        1.18      34.48      39.84

Fund Market

    (1.05      2.29        6.40        3.48          2.29        36.38        40.83  

Index

    (1.78      1.97        6.56        3.71                1.97        37.39        43.96  

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.

Expense Example

 

Actual           Hypothetical 5% Return                    

 

 

     

 

 

           
 

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
                 

Annualized
Expense
Ratio
 
 
 
  $       1,000.00          $         980.60          $       1.23               $      1,000.00          $      1,023.60          $      1.25                     0.25

 

  (a) 

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

 

Portfolio Information

 

ALLOCATION BY SECTOR  
   
Sector    
Percent of
Total Investments
 
(a) 

Financials

    23.7

Communication Services

    16.4  

Information Technology

    16.1  

Consumer Staples

    10.6  

Consumer Discretionary

    9.4  

Health Care

    8.2  

Materials

    5.4  

Utilities

    4.1  

Industrials

    3.9  

Energy

    1.5  

Real Estate

    0.7  
TEN LARGEST GEOGRAPHIC ALLOCATION  
   
Country/Geographic Region    
Percent of
Total Investments
 
(a) 

China

    28.2

Taiwan

    18.3  

India

    13.8  

Saudi Arabia

    9.3  

South Korea

    6.5  

Thailand

    5.3  

Malaysia

    4.1  

United Arab Emirates

    3.7  

Qatar

    2.5  

Philippines

    2.0  
  (a) 

Excludes money market funds.

 

 

 

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


Fund Summary as of February 28, 2022    iShares® MSCI Emerging Markets Multifactor ETF

 

Investment Objective

The iShares MSCI Emerging Markets Multifactor ETF (the “Fund”) seeks to track the investment results of an index composed of stocks of large- and mid-capitalization companies in emerging markets that have favorable exposure to target style factors subject to constraints, as represented by the MSCI Emerging Markets Diversified Multiple-Factor Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Since

Inception

            1 Year      5 Years     

Since

Inception

 

Fund NAV

    (6.27 )%       (0.59 )%       7.25      8.70        (0.59 )%       41.90      68.10

Fund Market

    (4.81      (0.01      7.44        8.89          (0.01      43.16        70.00  

Index

    (6.13      0.34        7.74        9.21                0.34        45.19        73.09  

The inception date of the Fund was 12/8/15. The first day of secondary market trading was 12/10/15.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.

Expense Example

 

Actual           Hypothetical 5% Return                    

 

 

     

 

 

           
 

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
                 

Annualized
Expense
Ratio
 
 
 
  $       1,000.00          $         937.30          $       2.16               $      1,000.00          $      1,022.60          $      2.26                     0.45

 

  (a)

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

 

Portfolio Information

 

ALLOCATION BY SECTOR  
   
Sector    
Percent of
Total Investments
 
(a) 

Information Technology

    23.4

Financials

    14.7  

Materials

    13.1  

Consumer Discretionary

    12.9  

Industrials

    7.4  

Health Care

    6.5  

Communication Services

    5.8  

Energy

    5.3  

Consumer Staples

    4.8  

Utilities

    4.4  

Real Estate

    1.7  
TEN LARGEST GEOGRAPHIC ALLOCATION  
   
Country/Geographic Region    
Percent of
Total Investments
 
(a) 

China

    41.1

India

    16.7  

Taiwan

    14.8  

South Korea

    10.3  

Saudi Arabia

    5.6  

South Africa

    2.7  

Brazil

    2.0  

United Arab Emirates

    1.0  

Qatar

    1.0  

Indonesia

    0.9  
  (a) 

Excludes money market funds.

 

 

 

U N D   S U M M A R Y

  7


Fund Summary as of February 28, 2022    iShares® MSCI Global Min Vol Factor ETF

 

Investment Objective

The iShares MSCI Global Min Vol Factor ETF (the “Fund”) seeks to track the investment results of an index composed of developed and emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed and emerging equity markets, as represented by the MSCI ACWI Minimum Volatility (USD) Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (4.00 )%       9.72      8.11      9.04        9.72      47.66      137.60

Fund Market

    (4.12      9.74        8.12        8.99          9.74        47.76        136.61  

Index

    (4.06      9.70        7.91        8.79                9.70        46.35        132.32  

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 9 for more information.

Expense Example

 

Actual           Hypothetical 5% Return                    

 

 

     

 

 

           
 

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(09/01/21)
 
 
 
      

Ending
Account Value
(02/28/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
                 

Annualized
Expense
Ratio
 
 
 
  $       1,000.00          $         960.00          $       0.97               $      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 “Shareholder Expenses” for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR  
   
Sector    
Percent of
Total Investments
 
(a) 

Information Technology

    17.5

Health Care

    15.9  

Communication Services

    14.4  

Consumer Staples

    12.1  

Financials

    9.8  

Utilities

    8.0  

Consumer Discretionary

    7.5  

Industrials

    7.1  

Materials

    5.1  

Real Estate

    2.1  

Energy

    0.5  
TEN LARGEST GEOGRAPHIC ALLOCATION  
   
Country/Geographic Region    
Percent of
Total Investments
 
(a) 

United States

    55.8

Japan

    10.2  

Switzerland

    6.1  

Taiwan

    4.9  

China

    4.3  

India

    3.9  

Canada

    2.3  

Hong Kong

    2.2  

Denmark

    1.6  

Saudi Arabia

    1.3  
  (a) 

Excludes money market funds.

 

 

 

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


About Fund Performance

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. 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.

Shareholder Expenses

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

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

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

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

 

 

A B O U T   F U N D   P E R F O R M A N C E / S H A R E H O L D E R   E X P E N S E S

  9


Schedule of Investments (unaudited)

February 28, 2022

  

iShares® ESG Aware MSCI EM ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Brazil — 2.9%

   

Americanas SA

    747,006     $ 4,377,579  

B3 SA - Brasil, Bolsa, Balcao

    9,261,032       26,054,848  

Banco do Brasil SA

    4,425,322       29,919,937  

Banco Santander Brasil SA

    3,247,212       19,247,007  

Cosan SA

    3,503,113       14,362,002  

Energisa SA

    926,032       7,901,545  

Localiza Rent a Car SA

    2,171,061       24,168,994  

Lojas Renner SA

    2,254,944       11,145,812  

Natura & Co. Holding SA(a)

    2,767,832       12,351,322  

Rumo SA(a)

    2,111,891       6,326,954  

Telefonica Brasil SA

    1,343,576       13,175,985  

Ultrapar Participacoes SA

    4,203,826       11,822,632  

Vibra Energia SA

    1,443,285       6,574,042  
   

 

 

 
          187,428,659  
Chile — 0.6%            

Banco de Chile

    77,276,390       8,193,005  

Banco Santander Chile

    154,145,127       7,569,110  

Enel Americas SA

    200,688,465       23,498,900  
   

 

 

 
      39,261,015  
China — 29.8%            

3SBio Inc.(a)(b)

    8,745,000       6,950,260  

AAC Technologies Holdings Inc.(c)

    3,134,500       8,570,350  

Agricultural Bank of China Ltd., Class H

    21,797,000       8,254,939  

Akeso Inc.(a)(b)

    2,822,000       7,452,182  

Alibaba Group Holding Ltd.(a)

    13,254,268       174,477,511  

Alibaba Health Information Technology Ltd.(a)

    8,898,000       6,230,661  

ANTA Sports Products Ltd.

    417,200       6,371,980  

Baidu Inc., ADR(a)

    217,185       33,107,681  

Bank of China Ltd., Class H

    20,981,000       8,161,933  

BeiGene Ltd., ADR(a)(c)

    37,665       7,929,236  

Bilibili Inc., ADR(a)(c)

    183,625       5,804,386  

BYD Co. Ltd., Class A

    262,055       10,537,705  

BYD Co. Ltd., Class H

    743,000       23,023,596  

CanSino Biologics Inc., Class H(a)(b)

    426,200       7,702,865  

China Construction Bank Corp., Class A

    10,021,100       9,587,303  

China Construction Bank Corp., Class H

    94,065,000       70,545,416  

China Eastern Airlines Corp. Ltd.,
Class A(a)

    9,397,735       8,047,587  

China Feihe Ltd.(b)

    4,751,000       5,669,176  

China Galaxy Securities Co. Ltd., Class A

    4,507,700       7,239,054  

China International Capital Corp. Ltd., Class A

    1,004,813       6,785,460  

China International Capital Corp. Ltd., Class H(b)

    2,778,400       6,759,630  

China Lesso Group Holdings Ltd.

    8,835,000       13,602,230  

China Medical System Holdings Ltd.

    8,507,000       15,148,017  

China Mengniu Dairy Co. Ltd.

    2,275,000       14,793,000  

China Merchants Bank Co. Ltd., Class A

    1,851,240       14,633,543  

China Merchants Bank Co. Ltd., Class H

    4,515,000       38,058,317  

China Molybdenum Co. Ltd., Class A

    9,202,200       8,827,621  

China Molybdenum Co. Ltd., Class H

    22,683,000       13,652,959  

China Resources Gas Group Ltd.

    1,370,000       6,284,967  

China Resources Land Ltd.

    4,616,000       22,453,598  

China Resources Mixc Lifestyle Services Ltd.(b)

    1,197,800       6,161,078  

China Suntien Green Energy Corp. Ltd., Class H

    15,632,000       10,361,856  

China Three Gorges Renewables Group Co. Ltd.

    6,381,000       7,202,465  

China Vanke Co. Ltd., Class H

    2,961,600       7,034,338  

CIFI Ever Sunshine Services Group Ltd.

    3,480,000       6,341,361  

Contemporary Amperex Technology Co. Ltd., Class A

    192,303       16,472,540  

COSCO SHIPPING Holdings Co. Ltd., Class H(a)

    3,598,200       7,272,771  

Country Garden Services Holdings Co. Ltd.

    2,514,000       15,038,641  
Security   Shares     Value  

China (continued)

   

CSC Financial Co. Ltd., Class A

    1,668,700     $ 6,832,175  

CSPC Pharmaceutical Group Ltd.

    13,097,520       15,525,311  

ENN Energy Holdings Ltd.

    1,030,500       14,924,106  

Fosun International Ltd.

    22,382,000       24,284,547  

Fuyao Glass Industry Group Co. Ltd., Class H(b)

    1,614,400       7,920,398  

Ganfeng Lithium Co. Ltd., Class A

    434,950       10,575,843  

GDS Holdings Ltd., ADR(a)

    156,168       6,952,599  

Geely Automobile Holdings Ltd.

    5,830,000       10,859,206  

GEM Co. Ltd., Class A

    5,006,617       7,648,574  

Genscript Biotech Corp.(a)

    1,908,000       7,565,254  

Great Wall Motor Co. Ltd., Class H

    3,687,500       7,763,295  

Hansoh Pharmaceutical Group Co. Ltd.(b)

    3,088,000       6,607,038  

Hopson Development Holdings Ltd.

    3,310,340       6,814,512  

Huatai Securities Co. Ltd., Class A

    7,715,802       19,446,888  

Huatai Securities Co. Ltd., Class H(b)

    5,776,800       9,458,368  

Industrial & Commercial Bank of China Ltd., Class H

    26,860,000       16,034,213  

Industrial Bank Co. Ltd., Class A

    3,292,868       11,536,139  

JD Health International Inc.(a)(b)

    1,454,250       10,854,101  

JDcom Inc, Class A(a)

    1,427,316       50,982,902  

Jinxin Fertility Group Ltd.(a)(b)

    6,462,000       7,555,897  

Jiumaojiu International Holdings Ltd.(b)

    2,640,000       5,930,762  

KE Holdings Inc., ADR(a)

    338,784       6,575,797  

Kingdee International Software Group Co. Ltd.(a)

    6,524,000       16,124,991  

Lenovo Group Ltd.

    20,152,000             22,440,642  

Li Auto Inc., ADR(a)

    815,827       24,841,932  

Li Ning Co. Ltd.

    1,647,500       16,455,476  

Logan Group Co. Ltd.(c)

    13,762,000       4,578,763  

Longfor Group Holdings Ltd.(b)

    1,412,500       7,553,377  

LONGi Green Energy Technology Co. Ltd., Class A

    696,120       8,664,954  

Meituan, Class B(a)(b)

    4,109,800       91,299,854  

Microport Scientific Corp.

    2,302,600       6,404,869  

Ming Yuan Cloud Group Holdings Ltd.

    3,081,000       6,080,916  

MMG Ltd.(a)

    23,168,000       8,392,134  

NetEase Inc.

    2,118,070       40,967,069  

NIO Inc., ADR(a)

    1,251,347       28,580,766  

Orient Securities Co. Ltd., Class A

    5,456,932       10,673,868  

Pharmaron Beijing Co. Ltd., Class A

    373,600       7,170,011  

Pinduoduo Inc., ADR(a)

    299,123       15,512,519  

Ping An Healthcare and Technology Co.
Ltd.(a)(b)(c)

    2,140,100       6,631,983  

Ping An Insurance Group Co. of China Ltd., Class A

    914,063       7,368,360  

Ping An Insurance Group Co. of China Ltd., Class H

    5,368,500       41,625,536  

Postal Savings Bank of China Co. Ltd., Class A

    9,156,100       8,088,120  

Postal Savings Bank of China Co. Ltd., Class H(b)

    8,183,000       6,712,184  

Shandong Weigao Group Medical Polymer Co. Ltd., Class H

    5,318,000       7,343,056  

Shanghai Electric Group Co. Ltd., Class A

    10,200,800       7,139,223  

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A

    1,043,415       7,035,238  

Shanghai Pharmaceuticals Holding Co. Ltd., Class H

    6,692,900       12,081,110  

Shenzhen Inovance Technology Co. Ltd., Class A

    683,572       6,957,273  

Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A

    135,900       7,066,908  

Shenzhou International Group Holdings Ltd.

    445,600       7,484,568  

Sinopharm Group Co. Ltd., Class H

    3,026,800       7,337,518  

Sunac Services Holdings Ltd.(a)(b)

    5,924,000       5,063,044  

Sungrow Power Supply Co. Ltd., Class A

    851,667       16,491,679  

Sunny Optical Technology Group Co. Ltd.

    1,209,000       28,972,416  

SuZhou TA&A Ultra Clean Technology Co. Ltd., Class A

    556,000       7,937,595  

TCL Technology Group Corp., Class A

    7,614,495       6,729,660  

 

 

10  

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


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® ESG Aware MSCI EM ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

China (continued)

   

Tencent Holdings Ltd.

    5,038,800     $ 271,900,256  

Tongcheng Travel Holdings Ltd.(a)

    4,551,600       8,477,119  

Topchoice Medical Corp., Class A(a)

    286,209       7,343,170  

Trip.com Group Ltd., ADR(a)

    241,635       6,239,016  

Unisplendour Corp. Ltd., Class A

    2,838,440       9,894,566  

Venus MedTech Hangzhou Inc.,
Class H(a)(b)(c)

    2,158,500       6,001,113  

Vipshop Holdings Ltd., ADR(a)

    768,565       6,663,459  

Wharf Holdings Ltd. (The)

    1,994,000       7,214,273  

Wuhu Sanqi Interactive Entertainment Network Technology Group Co. Ltd., Class A

    2,145,800       7,126,070  

WuXi AppTec Co. Ltd., Class A

    449,889       7,446,687  

WuXi AppTec Co. Ltd., Class H(b)

    1,074,380       15,293,211  

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

    4,578,500       37,870,681  

Xiaomi Corp., Class B(a)(b)

    6,448,000       12,136,535  

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

    3,617,500       8,634,790  

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

    4,075,536       6,668,311  

Xinyi Solar Holdings Ltd.

    7,916,000       14,378,352  

XPeng Inc., ADR(a)

    548,631       19,953,710  

Yadea Group Holdings Ltd.(b)

    9,952,000       14,764,127  

Yum China Holdings Inc.

    257,668       13,403,889  

Yunnan Baiyao Group Co. Ltd., Class A

    581,800       8,312,350  

Zhejiang Huayou Cobalt Co. Ltd., Class A

    404,200       7,878,854  

Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H

    9,871,200       6,566,358  
   

 

 

 
        1,943,170,647  
Colombia — 0.1%            

Bancolombia SA

    920,780       9,130,608  
   

 

 

 
Czech Republic — 0.3%            

Moneta Money Bank AS(b)

    4,599,864       18,213,163  
   

 

 

 
Greece — 0.4%            

Alpha Services and Holdings SA(a)

    4,413,364       6,022,210  

OPAP SA

    1,355,329       19,753,542  
   

 

 

 
      25,775,752  
Hungary — 0.5%            

MOL Hungarian Oil & Gas PLC

    3,908,154       30,484,773  
   

 

 

 
India — 12.4%            

Adani Green Energy Ltd.(a)

    554,198       13,637,185  

Adani Total Gas Ltd.

    376,997       7,947,971  

Asian Paints Ltd.

    874,018       36,936,973  

Axis Bank Ltd.(a)

    2,601,917       25,814,004  

Axis Bank Ltd., GDR(a)(d)

    84,646       4,144,744  

Bajaj Finance Ltd.

    201,896       18,902,554  

Bandhan Bank Ltd.(b)

    1,752,960       7,170,182  

Bharti Airtel Ltd.(a)

    1,650,778       15,095,196  

Colgate-Palmolive India Ltd.

    1,350,663       26,056,236  

Dabur India Ltd.

    1,759,476       13,191,551  

Eicher Motors Ltd.

    457,547       15,803,880  

Havells India Ltd.

    773,338       12,217,521  

HCL Technologies Ltd.

    1,781,972       26,795,918  

Hero MotoCorp Ltd.

    280,449       9,499,975  

Hindalco Industries Ltd.

    3,015,182       23,172,048  

Hindustan Unilever Ltd.

    984,549       28,471,496  

Housing Development Finance Corp. Ltd.

    1,874,291       59,238,466  

ICICI Bank Ltd.

    4,774,656       47,291,694  

Info Edge India Ltd.

    179,884       10,692,998  
Security   Shares     Value  

India (continued)

   

Infosys Ltd.

    3,173,861     $ 72,331,869  

Kotak Mahindra Bank Ltd.

    680,587       16,753,393  

Mahindra & Mahindra Ltd.

    340,837       3,598,100  

Mahindra & Mahindra Ltd., GDR

    1,240,272       13,013,688  

Marico Ltd.

    1,269,837       8,693,404  

Mphasis Ltd.

    191,906       7,972,790  

Nestle India Ltd.

    98,628       23,163,255  

Piramal Enterprises Ltd.

    506,645       14,006,454  

Power Grid Corp. of India Ltd.

    2,615,925       7,261,299  

Reliance Industries Ltd.

    2,090,854       65,823,639  

Reliance Industries Ltd., GDR(b)

    91,955       5,771,869  

Shriram Transport Finance Co. Ltd.

    426,703       6,413,779  

State Bank of India

    2,982,708       19,268,902  

Tata Consultancy Services Ltd.

    1,233,682       58,441,642  

Tata Consumer Products Ltd.

    1,201,298       11,502,906  

Tata Motors Ltd.(a)

    1,048,759       6,357,767  

Tech Mahindra Ltd.

    762,625       14,271,227  

Titan Co. Ltd.

    455,877       15,484,543  

United Spirits Ltd.(a)

    715,036       8,442,918  

UPL Ltd.

    801,621       7,124,386  

Wipro Ltd.

    1,889,879       13,975,175  

Zomato Ltd.(a)

    6,045,466       6,414,745  
   

 

 

 
      808,168,342  
Indonesia — 1.7%            

Bank Central Asia Tbk PT

    74,156,400       41,866,161  

Kalbe Farma Tbk PT

    195,239,300       22,354,607  

Telkom Indonesia Persero Tbk PT

    103,755,000       31,324,973  

Unilever Indonesia Tbk PT

    45,462,500       11,698,680  
   

 

 

 
          107,244,421  
Kuwait — 0.4%            

Kuwait Finance House KSCP

    7,499,338       23,459,504  
   

 

 

 
Malaysia — 2.8%            

AMMB Holdings Bhd(a)

    8,589,500       6,888,724  

Axiata Group Bhd

    8,951,300       8,378,852  

CIMB Group Holdings Bhd

    6,774,900       9,228,726  

DiGi.Com Bhd

    7,686,900       7,431,344  

Hartalega Holdings Bhd

    5,791,200       6,372,596  

Malayan Banking Bhd

    9,656,500       20,176,848  

Maxis Bhd

    19,354,900       18,556,299  

Nestle Malaysia Bhd

    915,100       29,243,395  

Petronas Dagangan Bhd

    4,468,800       22,905,460  

Public Bank Bhd

    27,736,300       29,457,206  

RHB Bank Bhd

    10,749,100       15,148,658  

Sime Darby Plantation Bhd

    6,374,800       7,479,156  
   

 

 

 
      181,267,264  
Mexico — 1.8%            

Arca Continental SAB de CV

    2,620,100       17,285,675  

Cemex SAB de CV, NVS(a)

    14,196,900       7,292,192  

Coca-Cola Femsa SAB de CV

    1,376,000       7,556,881  

Fomento Economico Mexicano SAB de CV

    4,368,600       35,200,921  

Grupo Aeroportuario del Sureste SAB de CV, Class B

    306,640       6,631,216  

Grupo Financiero Banorte SAB de CV, Class O

    4,177,700       28,259,292  

Wal-Mart de Mexico SAB de CV

    4,550,400       17,307,561  
   

 

 

 
      119,533,738  
Peru — 0.3%            

Credicorp Ltd.

    127,882       19,342,152  
   

 

 

 
Philippines — 0.1%            

Globe Telecom Inc.

    127,680       6,415,518  
   

 

 

 

 

 

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

  11


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® ESG Aware MSCI EM ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Poland — 0.7%

   

Allegro.eu SA(a)(b)(c)

    800,329     $ 5,964,522  

Bank Polska Kasa Opieki SA

    453,581       12,443,549  

KGHM Polska Miedz SA

    218,881       8,594,797  

Orange Polska SA(a)

    3,265,177       6,059,011  

Polski Koncern Naftowy ORLEN SA

    579,843       9,794,610  
   

 

 

 
      42,856,489  
Qatar — 0.8%            

Qatar National Bank QPSC

    8,844,871       52,949,796  
   

 

 

 
Russia — 0.7%            

Gazprom PJSC(e)

    7,224,690       5,824,064  

LUKOIL PJSC(e)

    725,046       12,656,040  

Novatek PJSC, GDR

    168,623       6,495,714  

Novolipetsk Steel PJSC(e)

    5,130,970       3,258,598  

PhosAgro PJSC, GDR

    754,049       4,613,195  

Polymetal International PLC(e)

    1,747,485       5,299,813  

Polyus PJSC(e)

    43,646       1,644,506  

Rosneft Oil Co. PJSC(e)

    759,129       791,947  

Sberbank of Russia PJSC(e)

    10,004,860       4,422,334  

TCS Group Holding PLC, GDR(e)

    124,025       1,428,296  

Yandex NV(a)(e)

    87,150       569,711  
   

 

 

 
      47,004,218  
Saudi Arabia — 3.1%            

Al Rajhi Bank

    829,908       35,604,471  

Almarai Co. JSC

    514,590       6,899,308  

Bank AlBilad(a)

    846,334       13,319,270  

Dr Sulaiman Al Habib Medical Services Group Co.

    392,078       17,929,648  

SABIC Agri-Nutrients Co.

    154,645       6,562,221  

Sahara International Petrochemical Co.

    1,087,716       13,605,309  

Saudi Arabian Mining Co.(a)

    882,391       25,189,216  

Saudi Basic Industries Corp.

    1,691,676       56,395,938  

Saudi National Bank (The)

    845,249       15,397,763  

Savola Group (The)

    1,123,450       10,178,054  
   

 

 

 
      201,081,198  
South Africa — 4.3%            

Absa Group Ltd.

    1,146,546       13,171,344  

Aspen Pharmacare Holdings Ltd.

    511,911       6,691,756  

Bidvest Group Ltd (The)

    1,209,188       16,567,457  

Clicks Group Ltd.

    630,341       12,255,292  

FirstRand Ltd.

    2,391,966       10,298,981  

Gold Fields Ltd.

    1,362,847       18,975,960  

Growthpoint Properties Ltd.

    10,660,261       9,290,139  

Impala Platinum Holdings Ltd.

    856,450       16,336,255  

Kumba Iron Ore Ltd.

    530,511       20,970,455  

MTN Group Ltd.(a)

    1,163,219       14,519,933  

MultiChoice Group

    1,041,982       8,539,831  

Naspers Ltd., Class N

    203,182       25,586,822  

Nedbank Group Ltd.

    663,144       9,427,308  

NEPI Rockcastle PLC

    1,583,039       10,117,386  

Old Mutual Ltd.

    23,367,030       19,148,009  

Standard Bank Group Ltd.

    1,380,840       14,631,394  

Vodacom Group Ltd.

    4,605,664       44,333,588  

Woolworths Holdings Ltd.

    3,676,506       12,105,596  
   

 

 

 
          282,967,506  
South Korea — 12.0%            

Amorepacific Corp.

    46,189       7,129,769  

AMOREPACIFIC Group

    347,541       14,199,273  

CJ CheilJedang Corp.

    46,546       14,743,697  

Coway Co. Ltd.

    236,073       14,178,258  
Security   Shares     Value  

South Korea (continued)

   

Hana Financial Group Inc.

    183,295     $ 7,424,183  

HMM Co. Ltd.(a)

    330,215       7,998,889  

Kakao Corp.

    357,516       28,314,112  

KB Financial Group Inc.

    640,828       31,614,890  

LG Chem Ltd.

    45,828       21,747,406  

LG Corp.

    1       63  

LG Display Co. Ltd.

    1,015,494       15,970,064  

LG Electronics Inc.

    137,353       14,339,152  

LG Household & Health Care Ltd.

    9,250       7,339,351  

LG Innotek Co. Ltd.

    25,840       7,027,638  

NAVER Corp.

    230,978       61,545,753  

NCSoft Corp.

    19,003       7,039,564  

POSCO

    115,470       27,473,054  

Samsung C&T Corp.

    108,177       9,990,755  

Samsung Electro-Mechanics Co. Ltd.

    69,433       9,707,304  

Samsung Electronics Co. Ltd.

    4,404,578       265,390,697  

Samsung Engineering Co. Ltd.(a)

    377,098       7,366,633  

Samsung Fire & Marine Insurance Co. Ltd.

    90,046       14,319,166  

Samsung SDI Co. Ltd.

    63,938       29,465,190  

Samsung SDS Co. Ltd.

    60,852       7,143,909  

Samsung Securities Co. Ltd.

    350,417       12,419,420  

Shinhan Financial Group Co. Ltd.

    1,154,098       37,549,438  

SK Hynix Inc.

    485,958       50,663,309  

SK Inc.

    92,094       17,590,869  

SK Innovation Co. Ltd.(a)

    69,389       11,713,977  

SK Telecom Co. Ltd.

    150,491       6,867,369  

Woori Financial Group Inc.

    1,158,144       13,774,241  
   

 

 

 
          782,047,393  
Taiwan — 17.4%            

Acer Inc.

    28,388,000       29,461,869  

ASE Technology Holding Co. Ltd.

    2,660,000       9,614,058  

Asustek Computer Inc.

    605,000       8,070,987  

AU Optronics Corp.

    9,854,000       7,377,461  

Cathay Financial Holding Co. Ltd.

    29,447,110       66,215,818  

Chailease Holding Co. Ltd.

    1,396,219       12,671,400  

China Steel Corp.

    15,377,000       19,995,550  

CTBC Financial Holding Co. Ltd.

    70,720,000       69,127,207  

Delta Electronics Inc.

    2,365,000       21,077,133  

E.Sun Financial Holding Co Ltd.

    47,501,132       50,211,202  

Evergreen Marine Corp. Taiwan Ltd.

    3,088,000       16,222,057  

Far EasTone Telecommunications Co. Ltd.

    5,524,000       13,662,683  

First Financial Holding Co. Ltd.

    55,149,689       50,778,383  

Fubon Financial Holding Co. Ltd.

    15,233,723       41,132,027  

Hon Hai Precision Industry Co. Ltd.

    4,476,000       16,626,362  

Hotai Motor Co. Ltd.

    452,000       10,233,930  

Innolux Corp.

    11,543,000       7,024,071  

MediaTek Inc.

    1,299,000       51,331,060  

Mega Financial Holding Co. Ltd.

    10,788,000       14,537,918  

momo.com Inc.

    171,000       6,087,437  

Taishin Financial Holding Co. Ltd.

    56,314,831       39,466,852  

Taiwan Semiconductor Manufacturing Co. Ltd.

    23,724,000       510,055,470  

Unimicron Technology Corp.

    965,000       8,972,372  

United Microelectronics Corp.

    12,332,000       23,237,818  

Yageo Corp.

    788,000       12,928,523  

Yang Ming Marine Transport Corp.(a)

    1,857,000       7,848,604  

Yuanta Financial Holding Co. Ltd.

    7,840,040       7,003,449  
   

 

 

 
        1,130,971,701  
Thailand — 2.5%            

Asset World Corp. PCL, NVDR(a)

    49,746,500       7,328,718  

 

 

12  

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


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® ESG Aware MSCI EM ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Thailand (continued)

   

Bangkok Dusit Medical Services PCL, NVDR

    29,382,500     $ 21,362,930  

BTS Group Holdings PCL, NVDR(c)

    79,445,400       23,158,367  

Delta Electronics Thailand PCL, NVDR

    538,900       6,747,191  

Energy Absolute PCL, NVDR

    3,197,800       9,346,015  

Home Product Center PCL, NVDR

    15,297,100       7,163,305  

Krungthai Card PCL, NVDR

    4,058,000       7,896,875  

Minor International PCL, NVDR(a)

    9,745,600       9,229,553  

PTT Exploration & Production PCL, NVDR

    2,794,300       11,764,710  

PTT PCL, NVDR

    22,318,600       27,167,729  

Siam Cement PCL (The), NVDR

    1,843,100       22,181,034  

Siam Commercial Bank PCL (The), NVDR

    2,642,500       10,211,295  
   

 

 

 
      163,557,722  
Turkey — 0.2%            

Turkcell Iletisim Hizmetleri AS

    8,719,922       12,928,437  
   

 

 

 
United Arab Emirates — 1.8%            

Abu Dhabi Commercial Bank PJSC

    10,034,053       29,429,103  

Abu Dhabi National Oil Co. for Distribution PJSC

    8,527,857       9,574,519  

Emirates Telecommunications Group Co. PJSC

    3,728,920       35,612,785  

First Abu Dhabi Bank PJSC

    8,086,547       45,528,864  
   

 

 

 
      120,145,271  
   

 

 

 

Total Common Stocks — 97.6%
(Cost: $5,865,549,865)

      6,355,405,287  
   

 

 

 

Preferred Stocks

   

Brazil — 1.2%

   

Banco Bradesco SA, Preference Shares, NVS

    8,579,280       33,607,739  

Cia. Energetica de Minas Gerais, Preference Shares, NVS

    7,251,938       17,819,959  

Gerdau SA, Preference Shares, NVS

    2,158,608       10,706,296  

Itau Unibanco Holding SA, Preference Shares, NVS

    2,814,960       13,819,071  
   

 

 

 
      75,953,065  
Colombia — 0.1%            

Bancolombia SA, Preference Shares, NVS

    902,326       7,975,845  
   

 

 

 
Security   Shares     Value  

 

 

South Korea — 0.8%

   

LG Household & Health Care Ltd., Preference Shares, NVS

    8,100     $ 3,550,292  

Samsung Electronics Co. Ltd., Preference Shares, NVS

    849,151       46,930,439  
   

 

 

 
      50,480,731  
   

 

 

 

Total Preferred Stocks — 2.1%
(Cost: $ 120,898,371)

      134,409,641  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 0.4%

   

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

    25,569,074       25,574,188  
   

 

 

 

Total Short-Term Investments — 0.4%
(Cost: $ 25,569,836)

      25,574,188  
   

 

 

 

Total Investments in Securities — 100.1%
(Cost: $ 6,012,018,072)

 

    6,515,389,116  

Other Assets, Less Liabilities — (0.1)%

      (4,122,347
   

 

 

 

Net Assets — 100.0%

    $   6,511,266,769  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

All or a portion of this security is on loan.

(d) 

This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

(e) 

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

(f) 

Affiliate of the Fund.

(g) 

Annualized 7-day yield as of period end.

(h) 

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

 

Affiliates

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

 

 

 

   
     Affiliated Issuer  

Value at

08/31/21

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

Capital

Gain
Distributions
from
Underlying
Funds

   

  

 

 

   
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 41,185,570     $     $ (15,594,446 )(a)    $ (13,582   $ (3,354   $ 25,574,188       25,569,074     $ 600,356 (b)    $    
 

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

    6,140,000             (6,140,000 )(a)                              1,003          
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   
          $ (13,582   $ (3,354   $ 25,574,188       $ 601,359     $    
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 
  (c) 

As of period end, the entity is no longer held.

 

 

 

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

  13


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® ESG Aware MSCI EM ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 

Long Contracts

           

MSCI Emerging Markets Index

     484        03/18/22      $ 28,447      $ (488,507
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
            Equity
Contracts
 

 

 

Liabilities — Derivative Financial Instruments

     

Futures contracts

     

Unrealized depreciation on futures contracts(a)

      $ 488,507  
     

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

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

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ (1,844,828
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (563,596
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 10,478,420      

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1      Level 2              Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 635,490,214      $ 5,684,019,764      $ 35,895,309      $ 6,355,405,287  

Preferred Stocks

     7,975,845        126,433,796               134,409,641  

Money Market Funds

     25,574,188                      25,574,188  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $   669,040,247      $ 5,810,453,560      $   35,895,309      $ 6,515,389,116  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Liabilities

           

Futures Contracts

   $ (488,507    $      $      $ (488,507
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

14  

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


Schedule of Investments (unaudited)

February 28, 2022

  

iShares® MSCI Emerging Markets ex China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Brazil — 5.5%            

Ambev SA

    2,220,423     $ 6,516,413  

Americanas SA

    269,853       1,581,383  

Atacadao SA

    247,724       913,149  

B3 SA - Brasil, Bolsa, Balcao

    2,880,666       8,104,422  

Banco Bradesco SA

    717,076       2,351,902  

Banco BTG Pactual SA

    554,113       2,752,993  

Banco do Brasil SA

    409,379       2,767,842  

Banco Inter SA

    164,145       636,472  

Banco Santander Brasil SA

    201,460       1,194,102  

BB Seguridade Participacoes SA

    336,517       1,483,877  

BRF SA(a)

    311,663       982,845  

CCR SA

    573,688       1,305,162  

Centrais Eletricas Brasileiras SA

    153,121       1,033,376  

Cia. de Saneamento Basico do Estado de Sao Paulo

    162,722       1,305,717  

Cia. Siderurgica Nacional SA

    322,544       1,587,475  

Cosan SA

    497,669       2,040,335  

Energisa SA

    90,286       770,383  

Engie Brasil Energia SA

    80,508       623,709  

Equatorial Energia SA

    479,942       2,373,454  

Hapvida Participacoes e Investimentos SA(b)

    1,904,893       4,458,964  

Hypera SA

    178,783       1,159,765  

JBS SA

    336,797       2,359,194  

Klabin SA

    337,365       1,515,321  

Localiza Rent a Car SA

    285,409       3,177,271  

Lojas Renner SA

    454,996       2,248,969  

Magazine Luiza SA

    1,403,476       1,619,191  

Natura & Co. Holding SA(a)

    422,619       1,885,918  

Petro Rio SA(a)

    331,521       1,684,828  

Petroleo Brasileiro SA

    1,749,159       12,437,250  

Raia Drogasil SA

    508,681       2,302,869  

Rede D’Or Sao Luiz SA(b)

    184,209       1,814,637  

Rumo SA(a)

    607,623       1,820,360  

Suzano SA

    350,796       3,781,218  

Telefonica Brasil SA

    238,652       2,340,378  

TIM SA

    406,520       1,078,289  

TOTVS SA

    249,781       1,600,154  

Ultrapar Participacoes SA

    356,716       1,003,210  

Vale SA

    1,921,270       35,646,623  

Vibra Energia SA

    556,043       2,532,729  

WEG SA

    787,543       4,462,051  

XP Inc.(a)

    1       32  
   

 

 

 
          131,254,232  
Chile — 0.5%            

Banco de Chile

    20,585,108       2,182,477  

Banco de Credito e Inversiones SA

    22,418       801,432  

Banco Santander Chile

    33,954,674       1,667,303  

Cencosud SA

    668,262       1,229,161  

Cia. Cervecerias Unidas SA

    78,610       623,224  

Empresas CMPC SA

    498,977       824,386  

Empresas COPEC SA

    177,198       1,374,659  

Enel Americas SA

    10,325,429       1,209,019  

Enel Chile SA

        15,637,529       512,642  

Falabella SA

    353,756       1,164,137  
   

 

 

 
      11,588,440  
China — 0.2%            

Silergy Corp.

    37,000       4,930,292  
   

 

 

 
Security   Shares     Value  

Colombia — 0.2%

   

Bancolombia SA

    121,354     $ 1,203,367  

Ecopetrol SA

    2,285,186       1,893,968  

Grupo de Inversiones Suramericana SA

    66,400       538,856  

Interconexion Electrica SA ESP

    218,547       1,348,917  
   

 

 

 
      4,985,108  
Czech Republic — 0.2%            

CEZ AS(c)

    76,561       2,915,430  

Komercni Banka AS(a)

    31,478       1,238,357  

Moneta Money Bank AS(b)

    184,719       731,395  
   

 

 

 
      4,885,182  
Egypt — 0.1%            

Commercial International Bank Egypt SAE(a)

    739,083       2,251,111  

Eastern Co. SAE

    247,449       171,075  

Fawry for Banking & Payment Technology Services SAE(a)

    207,263       127,888  
   

 

 

 
          2,550,074  
Greece — 0.3%            

Alpha Services and Holdings SA(a)

    1,030,566       1,406,248  

Eurobank Ergasias Services and Holdings SA, Class A(a)

    1,152,616       1,262,611  

Hellenic Telecommunications Organization SA

    98,444       1,969,074  

JUMBO SA

    49,390       709,597  

OPAP SA

    86,240       1,256,924  

Public Power Corp. SA(a)

    91,338       868,284  
   

 

 

 
      7,472,738  
Hungary — 0.3%            

MOL Hungarian Oil & Gas PLC

    196,761       1,534,795  

OTP Bank Nyrt(a)

    106,828       4,076,471  

Richter Gedeon Nyrt

    66,116       1,388,217  
   

 

 

 
      6,999,483  
India — 18.3%            

ACC Ltd.

    36,636       1,020,425  

Adani Enterprises Ltd.

    129,640       2,850,878  

Adani Green Energy Ltd.(a)

    184,739       4,545,884  

Adani Ports & Special Economic Zone Ltd.

    244,111       2,308,235  

Adani Total Gas Ltd.

    130,428       2,749,725  

Adani Transmission Ltd.(a)

    129,663       3,694,960  

Ambuja Cements Ltd.

    330,141       1,383,655  

Apollo Hospitals Enterprise Ltd.

    47,788       3,058,668  

Asian Paints Ltd.

    180,932       7,646,388  

Aurobindo Pharma Ltd.

    140,930       1,173,165  

Avenue Supermarts Ltd.(a)(b)

    77,181       4,465,254  

Axis Bank Ltd.(a)

    948,801       9,413,195  

Bajaj Auto Ltd.

    33,937       1,596,995  

Bajaj Finance Ltd.

    127,828       11,967,923  

Bajaj Finserv Ltd.

    17,919       3,841,627  

Balkrishna Industries Ltd.

    42,186       1,025,823  

Bandhan Bank Ltd.(b)

    283,274       1,158,684  

Berger Paints India Ltd.

    120,196       1,103,922  

Bharat Electronics Ltd.

    588,215       1,653,053  

Bharat Forge Ltd.

    113,342       1,026,734  

Bharat Petroleum Corp. Ltd.

    424,417       1,979,669  

Bharti Airtel Ltd.(a)

    1,166,603       10,667,759  

Biocon Ltd.(a)

    209,534       973,828  

Britannia Industries Ltd.

    51,412       2,346,710  

Cholamandalam Investment and Finance Co. Ltd.

    197,010       1,817,520  

Cipla Ltd.

    229,417       2,823,674  

Coal India Ltd.

    752,658       1,702,392  

Colgate-Palmolive India Ltd.

    58,386       1,126,350  

 

 

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

  15


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Emerging Markets ex China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

India (continued)

   

Container Corp. of India Ltd.

    123,919     $ 991,796  

Dabur India Ltd.

    287,656       2,156,681  

Divi’s Laboratories Ltd.

    63,285       3,596,581  

DLF Ltd.

    300,755       1,411,225  

Dr. Reddy’s Laboratories Ltd.

    55,621       3,003,149  

Eicher Motors Ltd.

    65,821       2,273,487  

GAIL India Ltd.

    699,504       1,352,566  

Godrej Consumer Products Ltd.(a)

    173,514       1,774,515  

Godrej Properties Ltd.(a)

    59,277       1,187,440  

Grasim Industries Ltd.

    123,990       2,646,025  

Havells India Ltd.

    120,836       1,909,018  

HCL Technologies Ltd.

    512,221       7,702,384  

HDFC Asset Management Co. Ltd.(b)

    26,299       731,297  

HDFC Life Insurance Co. Ltd.(b)

    421,425       2,937,721  

Hero MotoCorp Ltd.

    57,784       1,957,385  

Hindalco Industries Ltd.

    728,722       5,600,319  

Hindustan Petroleum Corp. Ltd.

    293,193       1,066,588  

Hindustan Unilever Ltd.

    389,188       11,254,660  

Housing Development Finance Corp. Ltd.

    809,453           25,583,409  

ICICI Bank Ltd.

    2,392,968       23,701,710  

ICICI Lombard General Insurance Co. Ltd.(b)

    89,057       1,498,938  

ICICI Prudential Life Insurance Co. Ltd.(b)

    132,374       845,670  

Indian Oil Corp. Ltd.

    826,506       1,268,598  

Indian Railway Catering & Tourism Corp. Ltd.

    113,212       1,228,455  

Indraprastha Gas Ltd.

    146,244       676,167  

Indus Towers Ltd.(a)

    329,522       945,797  

Info Edge India Ltd.

    37,083       2,204,356  

Infosys Ltd.

    1,583,263       36,082,353  

InterGlobe Aviation Ltd.(a)(b)

    46,422       1,162,126  

ITC Ltd.

    1,418,636       4,084,828  

JSW Steel Ltd.

    398,825       3,346,034  

Jubilant Foodworks Ltd.

    37,798       1,469,560  

Kotak Mahindra Bank Ltd.

    265,802       6,543,007  

Larsen & Toubro Infotech Ltd.(b)

    24,619       1,924,145  

Larsen & Toubro Ltd.

    320,910       7,779,721  

Lupin Ltd.

    109,044       1,083,297  

Mahindra & Mahindra Ltd.

    410,476       4,333,256  

Marico Ltd.

    238,258       1,631,133  

Maruti Suzuki India Ltd.

    64,027       7,096,340  

Mindtree Ltd.

    30,535       1,584,488  

Motherson Sumi Systems Ltd.

    599,654       1,205,628  

Motherson Sumi Wiring India Ltd.(a)

    584,726       360,625  

Mphasis Ltd.

    39,418       1,637,632  

MRF Ltd.

    829       725,379  

Muthoot Finance Ltd.

    59,882       1,084,908  

Nestle India Ltd.

    15,649       3,675,242  

NTPC Ltd.

    2,293,763       4,083,202  

Oil & Natural Gas Corp. Ltd.

    1,100,103       2,369,363  

Page Industries Ltd.

    2,628       1,479,285  

Petronet LNG Ltd.

    372,330       1,068,404  

PI Industries Ltd.

    40,112       1,320,143  

Pidilite Industries Ltd.

    67,467       2,159,732  

Piramal Enterprises Ltd.

    51,905       1,434,940  

Power Grid Corp. of India Ltd.

    1,462,587       4,072,597  

Reliance Industries Ltd.

        1,343,606       42,299,001  

SBI Cards & Payment Services Ltd.(a)

    116,973       1,226,459  

SBI Life Insurance Co. Ltd.(b)

    215,019       3,040,580  

Shree Cement Ltd.

    5,292       1,722,834  

Shriram Transport Finance Co. Ltd.

    97,181       1,460,729  

Siemens Ltd.

    33,487       1,047,632  
Security   Shares     Value  

India (continued)

   

SRF Ltd.

    69,186     $ 2,201,799  

State Bank of India

    853,236       5,512,079  

Sun Pharmaceutical Industries Ltd.

    395,544       4,443,314  

Tata Consultancy Services Ltd.

    435,175       20,614,990  

Tata Consumer Products Ltd.

    289,970       2,776,578  

Tata Motors Ltd.(a)

    779,898       4,727,883  

Tata Power Co. Ltd. (The)

    682,574       2,035,446  

Tata Steel Ltd.

    339,789       5,563,612  

Tech Mahindra Ltd.

    296,397       5,580,504  

Titan Co. Ltd.

    168,507       5,723,592  

Torrent Pharmaceuticals Ltd.

    22,440       821,284  

Trent Ltd.

    89,862       1,328,988  

UltraTech Cement Ltd.

    47,609       4,166,824  

United Spirits Ltd.(a)

    132,204       1,561,023  

UPL Ltd.

    236,607       2,102,839  

Vedanta Ltd.

    526,983       2,682,176  

Wipro Ltd.

    643,772       4,760,530  

Yes Bank Ltd.(a)

    5,434,201       960,018  

Zomato Ltd.(a)

    741,792       792,477  
   

 

 

 
          436,579,591  
Indonesia — 2.5%            

Adaro Energy Tbk PT

    6,210,300       1,064,020  

Aneka Tambang Tbk

    3,986,500       621,090  

Astra International Tbk PT

    9,296,600       3,770,096  

Bank Central Asia Tbk PT

    25,894,400       14,619,090  

Bank Jago Tbk PT(a)

    1,837,900       2,079,160  

Bank Mandiri Persero Tbk PT

    8,929,300       4,827,546  

Bank Negara Indonesia Persero Tbk PT

    3,576,000       2,003,681  

Bank Rakyat Indonesia Persero Tbk PT

    32,298,471       10,327,764  

Barito Pacific Tbk PT

    13,202,900       823,270  

Charoen Pokphand Indonesia Tbk PT

    3,496,300       1,415,725  

Gudang Garam Tbk PT

    236,400       518,050  

Indah Kiat Pulp & Paper Tbk PT

    1,329,600       751,379  

Indocement Tunggal Prakarsa Tbk PT

    718,500       550,431  

Indofood CBP Sukses Makmur Tbk PT

    1,111,500       658,881  

Indofood Sukses Makmur Tbk PT

    2,014,100       871,156  

Kalbe Farma Tbk PT

    9,353,600       1,070,973  

Merdeka Copper Gold Tbk PT(a)

    5,486,400       1,485,582  

Sarana Menara Nusantara Tbk PT

    10,539,400       762,148  

Semen Indonesia Persero Tbk PT

    1,446,500       730,672  

Telkom Indonesia Persero Tbk PT

    23,260,200       7,022,554  

Tower Bersama Infrastructure Tbk PT

    3,751,700       771,535  

Unilever Indonesia Tbk PT

    3,614,500       930,105  

United Tractors Tbk PT

    809,900       1,413,263  
   

 

 

 
      59,088,171  
Kuwait — 1.0%            

Agility Public Warehousing Co. KSC

    600,345       2,043,173  

Boubyan Bank KSCP(a)

    590,596       1,607,857  

Kuwait Finance House KSCP

        2,214,449       6,927,262  

Mabanee Co. KPSC(a)

    246,609       690,635  

Mobile Telecommunications Co. KSCP

    1,104,002       2,263,456  

National Bank of Kuwait SAKP

    3,150,819       11,045,077  
   

 

 

 
      24,577,460  
Malaysia — 2.2%            

AMMB Holdings Bhd(a)

    960,600       770,395  

Axiata Group Bhd

    1,472,600       1,378,425  

CIMB Group Holdings Bhd

    3,180,400       4,332,321  

Dialog Group Bhd

    1,962,300       1,322,029  

DiGi.Com Bhd

    1,615,700       1,561,985  

 

 

16  

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


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Emerging Markets ex China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Malaysia (continued)

   

Fraser & Neave Holdings Bhd

    18,400     $ 99,045  

Genting Bhd

    1,058,800       1,173,633  

Genting Malaysia Bhd

    1,475,700       1,056,184  

HAP Seng Consolidated Bhd(c)

    222,700       402,064  

Hartalega Holdings Bhd

    814,200       895,940  

Hong Leong Bank Bhd

    344,600       1,649,759  

Hong Leong Financial Group Bhd

    55,200       254,011  

IHH Healthcare Bhd

    873,500       1,370,413  

Inari Amertron Bhd

    1,468,100       1,136,710  

IOI Corp. Bhd

    1,302,100       1,430,753  

Kuala Lumpur Kepong Bhd

    211,100       1,307,276  

Malayan Banking Bhd

    2,137,300       4,465,798  

Malaysia Airports Holdings Bhd(a)

    533,744       781,833  

Maxis Bhd

    1,276,800       1,224,118  

MISC Bhd

    685,900       1,203,034  

Nestle Malaysia Bhd

    24,400       779,739  

Petronas Chemicals Group Bhd

    1,114,800       2,535,748  

Petronas Dagangan Bhd

    127,400       653,007  

Petronas Gas Bhd

    326,400       1,355,017  

PPB Group Bhd

    284,940       1,217,536  

Press Metal Aluminium Holdings Bhd

    1,544,600       2,512,711  

Public Bank Bhd

    6,994,100       7,428,051  

QL Resources Bhd

    308,200       363,365  

RHB Bank Bhd

    944,500       1,331,080  

Sime Darby Bhd

    1,469,400       795,737  

Sime Darby Plantation Bhd

    849,500       996,666  

Telekom Malaysia Bhd

    591,700       713,112  

Tenaga Nasional Bhd

    1,014,300       2,217,249  

Top Glove Corp. Bhd

        2,496,900       1,219,160  

Westports Holdings Bhd

    244,700       227,885  
   

 

 

 
          52,161,789  
Mexico — 3.1%            

Alfa SAB de CV, Class A

    1,422,600       1,065,509  

America Movil SAB de CV, Series L, NVS

    14,475,900       13,082,804  

Arca Continental SAB de CV

    202,700       1,337,280  

Becle SAB de CV

    224,600       563,227  

Cemex SAB de CV, NVS(a)

    7,084,500       3,638,931  

Coca-Cola Femsa SAB de CV

    247,900       1,361,447  

Fibra Uno Administracion SA de CV

    1,521,000       1,714,012  

Fomento Economico Mexicano SAB de CV

    912,900       7,355,885  

Gruma SAB de CV, Class B

    101,225       1,372,846  

Grupo Aeroportuario del Pacifico SAB de CV, Class B

    173,400       2,522,220  

Grupo Aeroportuario del Sureste SAB de CV, Class B

    100,215       2,167,190  

Grupo Bimbo SAB de CV, Series A

    724,300       2,230,438  

Grupo Carso SAB de CV, Series A1

    189,200       576,163  

Grupo Financiero Banorte SAB de CV, Class O

    1,225,900       8,292,378  

Grupo Financiero Inbursa SAB de CV, Class O(a)

    1,018,600       1,660,118  

Grupo Mexico SAB de CV, Series B

    1,473,800       7,560,772  

Grupo Televisa SAB de CV, CPO

    1,140,000       2,443,533  

Industrias Penoles SAB de CV

    70,255       876,841  

Kimberly-Clark de Mexico SAB de CV, Class A

    735,000       1,031,390  

Megacable Holdings SAB de CV, CPO

    136,800       402,899  

Orbia Advance Corp. SAB de CV

    504,700       1,289,288  

Promotora y Operadora de Infraestructura SABde CV

    113,825       890,104  

Telesites SAB de CV

    612,500       679,160  
Security   Shares     Value  

Mexico (continued)

   

Wal-Mart de Mexico SAB de CV

    2,437,300     $ 9,270,332  
   

 

 

 
      73,384,767  
Peru — 0.4%            

Cia. de Minas Buenaventura SAA, ADR(a)

    104,245       1,032,025  

Credicorp Ltd.

    31,907       4,825,934  

Southern Copper Corp.

    39,823       2,763,318  
   

 

 

 
      8,621,277  
Philippines — 1.1%            

Aboitiz Equity Ventures Inc.

    961,150       1,122,935  

AC Energy Corp.

    3,680,400       610,170  

Ayala Corp.

    131,930       2,187,254  

Ayala Land Inc.

    3,976,200       3,031,201  

Bank of the Philippine Islands

    777,580       1,519,710  

BDO Unibank Inc.

    961,740       2,437,207  

Globe Telecom Inc.

    11,980       601,957  

GT Capital Holdings Inc.

    49,624       561,978  

International Container Terminal Services Inc.

    445,780       1,831,115  

JG Summit Holdings Inc.

    1,505,540       1,778,271  

Jollibee Foods Corp.

    219,640       1,032,441  

Manila Electric Co.

    78,820       567,165  

Metro Pacific Investments Corp.

    7,266,600       549,864  

Metropolitan Bank & Trust Co.

    885,037       985,676  

Monde Nissin Corp.(a)(b)

    2,164,200       697,339  

PLDT Inc.

    35,120       1,232,317  

SM Investments Corp.

    122,365       2,128,917  

SM Prime Holdings Inc.

        4,878,000       3,807,237  

Universal Robina Corp.

    340,310       796,513  
   

 

 

 
          27,479,267  
Poland — 1.0%            

Allegro.eu SA(a)(b)

    166,346       1,239,708  

Bank Polska Kasa Opieki SA

    87,571       2,402,424  

CD Projekt SA

    33,448       1,328,543  

Cyfrowy Polsat SA

    134,546       872,402  

Dino Polska SA(a)(b)

    23,355       1,642,251  

KGHM Polska Miedz SA

    63,406       2,489,762  

LPP SA

    502       1,032,434  

mBank SA(a)

    7,252       708,752  

Orange Polska SA(a)

    322,668       598,758  

PGE Polska Grupa Energetyczna SA(a)

    409,705       794,760  

Polski Koncern Naftowy ORLEN SA

    141,841       2,395,954  

Polskie Gornictwo Naftowe i Gazownictwo SA

    820,511       1,081,359  

Powszechna Kasa Oszczednosci Bank Polski SA(a)

    412,433       3,963,699  

Powszechny Zaklad Ubezpieczen SA

    286,639       2,150,552  

Santander Bank Polska SA

    17,954       1,345,909  
   

 

 

 
      24,047,267  
Qatar — 1.3%            

Barwa Real Estate Co.

    656,706       653,248  

Commercial Bank PSQC (The)

    930,397       1,764,643  

Industries Qatar QSC

    730,005       3,660,099  

Masraf Al Rayan QSC(a)

    2,127,469       2,914,581  

Mesaieed Petrochemical Holding Co.

    2,180,903       1,595,763  

Ooredoo QPSC

    464,900       977,644  

Qatar Electricity & Water Co. QSC

    225,352       1,112,645  

Qatar Fuel QSC

    182,282       928,966  

Qatar Gas Transport Co. Ltd.

    1,151,918       1,190,655  

Qatar International Islamic Bank QSC

    306,038       860,272  

Qatar Islamic Bank SAQ

    562,744       3,251,848  

Qatar National Bank QPSC

    2,114,961       12,661,208  
   

 

 

 
      31,571,572  

 

 

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

  17


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Emerging Markets ex China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Russia — 0.9%

   

Alrosa PJSC(d)

    1,271,273     $ 370,312  

Gazprom PJSC(d)

    5,613,440       4,525,182  

Inter RAO UES PJSC(d)

    19,580,300       189,014  

LUKOIL PJSC(d)

    197,285       3,443,708  

Magnit PJSC, GDR

    133,326       211,607  

MMC Norilsk Nickel PJSC(d)

    29,789       2,017,976  

Mobile TeleSystems PJSC, ADR

    209,440       1,151,920  

Moscow Exchange MICEX-RTS PJSC(d)

    631,870       212,673  

Novatek PJSC, GDR

    43,315       1,668,585  

Novolipetsk Steel PJSC(d)

    785,210       498,674  

Ozon Holdings PLC, ADR(a)(d)

    539       1,977  

PhosAgro PJSC, GDR

    67,667       413,980  

Polymetal International PLC(d)

    137,561       417,198  

Polyus PJSC(d)

    13,397       504,776  

Rosneft Oil Co. PJSC(d)

    532,936       555,976  

Sberbank of Russia PJSC(d)

    4,933,827       2,180,843  

Severstal PAO(d)

    109,143       521,249  

Surgutneftegas PJSC(d)

    3,671,000       277,218  

Tatneft PJSC(d)

    685,605       870,602  

TCS Group Holding PLC, GDR(d)

    58,085       668,918  

United Co. RUSAL International PJSC(a)(d)

    1,500,930       316,722  

VK Co. Ltd.(a)(d)

    873       887  

VTB Bank PJSC(d)

        1,160,968,000       77,582  

X5 Retail Group NV, GDR(d)

    67,732       291,359  

Yandex NV(a)(d)

    149,219       975,464  
   

 

 

 
          22,364,402  

Saudi Arabia — 5.9%

   

Abdullah Al Othaim Markets Co.

    24,442       726,957  

Advanced Petrochemical Co.

    50,284       1,008,847  

Al Rajhi Bank

    574,928       24,665,394  

Alinma Bank

    441,775       4,188,941  

Almarai Co. JSC

    125,580       1,683,700  

Arab National Bank

    297,131       2,221,298  

Bank AlBilad(a)

    174,532       2,746,716  

Bank Al-Jazira

    179,264       1,288,027  

Banque Saudi Fransi

    282,092       4,006,451  

Bupa Arabia for Cooperative Insurance Co.

    29,372       1,273,674  

Co for Cooperative Insurance (The)

    33,967       713,879  

Dar Al Arkan Real Estate Development Co.(a)

    220,021       642,894  

Dr Sulaiman Al Habib Medical Services Group Co.

    24,236       1,108,307  

Emaar Economic City(a)

    188,387       624,210  

Etihad Etisalat Co.(a)

    183,621       1,711,391  

Jarir Marketing Co.

    28,509       1,591,795  

Mobile Telecommunications Co.(a)

    179,092       643,289  

Mouwasat Medical Services Co.

    23,340       1,294,716  

National Industrialization Co.(a)

    149,832       907,641  

National Petrochemical Co.

    55,054       664,369  

Rabigh Refining & Petrochemical Co.(a)

    104,507       686,064  

Riyad Bank(a)

    648,744       6,149,071  

SABIC Agri-Nutrients Co.

    100,608       4,286,692  

Sahara International Petrochemical Co.

    168,033       2,101,781  

Saudi Arabian Mining Co.(a)

    203,124       5,798,489  

Saudi Arabian Oil Co.(b)

    1,011,049       11,217,088  

Saudi Basic Industries Corp.

    421,471       14,050,712  

Saudi British Bank (The)(a)

    390,554       4,040,882  

Saudi Cement Co.

    2,004       29,786  

Saudi Electricity Co.

    391,358       2,888,473  

Saudi Industrial Investment Group

    103,761       979,702  

Saudi Kayan Petrochemical Co.(a)

    338,927       1,852,902  

Saudi National Bank (The)

    1,037,082       18,892,353  
Security   Shares     Value  

Saudi Arabia (continued)

   

Saudi Research & Media Group(a)

    16,902     $ 1,126,289  

Saudi Telecom Co.

    284,192       8,671,057  

Savola Group (The)

    131,141       1,188,090  

Yanbu National Petrochemical Co.

    119,472       2,192,992  
   

 

 

 
      139,864,919  
South Africa — 5.5%            

Absa Group Ltd.

    345,535       3,969,453  

African Rainbow Minerals Ltd.

    37,505       667,449  

Anglo American Platinum Ltd.

    25,029       3,906,648  

AngloGold Ashanti Ltd.

    198,398       4,641,897  

Aspen Pharmacare Holdings Ltd.

    181,308       2,370,078  

Bid Corp. Ltd.

    155,895       3,167,326  

Bidvest Group Ltd (The)

    131,312       1,799,146  

Capitec Bank Holdings Ltd.

    38,264       5,166,125  

Clicks Group Ltd.

    114,376       2,223,735  

Discovery Ltd.(a)

    209,700       2,147,546  

Exxaro Resources Ltd.

    117,742       1,518,725  

FirstRand Ltd.

    2,350,075       10,118,613  

Gold Fields Ltd.

    422,288       5,879,839  

Growthpoint Properties Ltd.

    1,567,387       1,365,937  

Harmony Gold Mining Co. Ltd.

    268,586       1,147,021  

Impala Platinum Holdings Ltd.

    385,277       7,348,921  

Kumba Iron Ore Ltd.

    28,324       1,119,613  

Mr. Price Group Ltd.

    122,100       1,664,554  

MTN Group Ltd.(a)

    798,531       9,967,699  

MultiChoice Group

    182,079       1,492,275  

Naspers Ltd., Class N

    102,179       12,867,458  

Nedbank Group Ltd.

    219,593       3,121,752  

NEPI Rockcastle PLC

    208,010       1,329,416  

Northam Platinum Holdings Ltd.(a)

    161,539       2,608,262  

Old Mutual Ltd.

    2,279,747       1,868,129  

Pepkor Holdings Ltd.(b)

    631,618       901,651  

Rand Merchant Investment Holdings Ltd.

    380,204       1,196,278  

Reinet Investments SCA

    65,342       1,347,019  

Remgro Ltd.

    244,101       2,218,241  

Sanlam Ltd.

    875,993       3,691,553  

Sasol Ltd.(a)

    265,676       6,095,920  

Shoprite Holdings Ltd.

    239,225       3,568,345  

Sibanye Stillwater Ltd.

        1,264,664       5,966,212  

SPAR Group Ltd (The)

    91,910       980,772  

Standard Bank Group Ltd.

    617,991       6,548,239  

Tiger Brands Ltd.

    83,719       889,336  

Vodacom Group Ltd.

    294,698       2,836,729  

Woolworths Holdings Ltd.

    477,211       1,571,308  
   

 

 

 
          131,289,220  
South Korea — 17.2%            

Alteogen Inc.(a)(c)

    12,969       584,129  

Amorepacific Corp.(c)

    15,225       2,350,142  

AMOREPACIFIC Group

    15,591       636,992  

BGF retail Co. Ltd.

    3,888       550,799  

Celltrion Healthcare Co. Ltd.

    40,700       2,164,735  

Celltrion Inc.

    46,427       6,197,071  

Celltrion Pharm Inc.(a)

    8,013       589,579  

Cheil Worldwide Inc.

    30,326       570,187  

CJ CheilJedang Corp.

    4,096       1,297,430  

CJ Corp.

    6,537       460,502  

CJ ENM Co. Ltd.

    5,280       576,172  

CJ Logistics Corp.(a)

    4,574       474,240  

Coway Co. Ltd.

    26,664       1,601,407  

 

 

18  

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


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Emerging Markets ex China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

South Korea (continued)

   

DB Insurance Co. Ltd.

    21,668     $ 1,113,721  

Doosan Bobcat Inc.

    24,454       784,848  

Doosan Heavy Industries & Construction Co. Ltd.(a)

    161,903       2,838,746  

Douzone Bizon Co. Ltd.

    1,009       40,861  

Ecopro BM Co. Ltd.

    5,186       1,641,119  

E-MART Inc.

    9,722       1,060,226  

F&F Co. Ltd./New(a)

    1,517       1,133,863  

Green Cross Corp.

    2,827       430,151  

GS Engineering & Construction Corp.

    31,333       1,126,079  

GS Holdings Corp.

    16,714       558,900  

Hana Financial Group Inc.

    141,904       5,765,252  

Hankook Tire & Technology Co. Ltd.

    36,085       1,063,180  

Hanmi Pharm Co. Ltd.(a)

    3,479       770,598  

Hanon Systems

    91,986       890,813  

Hanwha Solutions Corp.(a)

    59,513       1,691,925  

HLB Inc.(a)

    43,318       1,134,989  

HMM Co. Ltd.(a)

    125,439       3,038,543  

Hotel Shilla Co. Ltd.

    14,629       988,728  

HYBE Co. Ltd.(a)

    7,841       1,905,247  

Hyundai Engineering & Construction Co. Ltd.

    37,538       1,367,592  

Hyundai Glovis Co. Ltd.

    9,044       1,334,129  

Hyundai Heavy Industries Holdings Co. Ltd.

    23,415       1,008,235  

Hyundai Mobis Co. Ltd.

    31,154       5,849,661  

Hyundai Motor Co.

    66,267       9,750,971  

Hyundai Steel Co.

    41,499       1,384,028  

Iljin Materials Co. Ltd.

    10,962       839,105  

Industrial Bank of Korea

    105,257       945,582  

Kakao Corp.

    146,526             11,604,386  

Kakao Games Corp.(a)(c)

    14,061       873,632  

KakaoBank Corp.(a)

    45,294       1,828,683  

Kangwon Land Inc.(a)

    41,695       927,380  

KB Financial Group Inc.

    187,031       9,227,070  

Kia Corp.

    123,410       7,650,842  

Korea Aerospace Industries Ltd.(a)

    32,846       1,021,901  

Korea Electric Power Corp.(a)

    121,034       2,345,555  

Korea Investment Holdings Co. Ltd.(a)

    20,219       1,343,253  

Korea Shipbuilding & Offshore Engineering Co. Ltd.(a)

    18,381       1,362,693  

Korea Zinc Co. Ltd.

    4,086       1,874,005  

Korean Air Lines Co. Ltd.(a)

    81,164       1,999,632  

Krafton Inc.(a)

    10,378       2,574,622  

KT&G Corp.

    52,772       3,508,100  

Kumho Petrochemical Co. Ltd.(a)

    8,643       1,166,033  

L&F Co. Ltd.(a)

    10,574       1,739,798  

LG Chem Ltd.

    21,706       10,300,454  

LG Corp.

    40,958       2,574,219  

LG Display Co. Ltd.

    110,746       1,741,636  

LG Electronics Inc.

    50,086       5,228,796  

LG Energy Solution(a)

    9,938       3,405,378  

LG Household & Health Care Ltd.

    4,498       3,568,908  

LG Innotek Co. Ltd.

    6,760       1,866,116  

LG Uplus Corp.

        103,337       1,135,090  

Lotte Chemical Corp.

    8,278       1,525,633  

Lotte Shopping Co. Ltd.

    5,857       418,499  

Meritz Financial Group Inc.

    15,730       482,098  

Meritz Fire & Marine Insurance Co. Ltd.

    19,822       677,577  

Meritz Securities Co. Ltd.

    115,670       566,432  

Mirae Asset Securities Co. Ltd.

    137,133       1,011,958  

NAVER Corp.

    57,899       15,427,606  

NCSoft Corp.

    7,736       2,865,762  
Security   Shares     Value  

South Korea (continued)

   

Netmarble Corp.(b)

    10,207     $ 877,067  

NH Investment & Securities Co. Ltd.(a)

    81,045       784,267  

Orion Corp./Republic of Korea

    12,154       930,076  

Pan Ocean Co. Ltd.

    130,529       720,311  

Pearl Abyss Corp.(a)

    14,135       1,133,670  

POSCO

    34,929       8,310,438  

POSCO Chemical Co. Ltd.

    14,778       1,415,573  

S-1 Corp.

    4,376       254,742  

Samsung Biologics Co. Ltd.(a)(b)

    7,814       5,083,421  

Samsung C&T Corp.

    40,061       3,699,859  

Samsung Electro-Mechanics Co. Ltd.

    26,738       3,738,192  

Samsung Electronics Co. Ltd.

    2,247,380       135,412,234  

Samsung Engineering Co. Ltd.(a)

    74,720       1,459,660  

Samsung Fire & Marine Insurance Co. Ltd.

    14,247       2,265,566  

Samsung Heavy Industries Co. Ltd.(a)

    295,168       1,438,877  

Samsung Life Insurance Co. Ltd.

    33,756       1,687,784  

Samsung SDI Co. Ltd.

    25,881       11,927,001  

Samsung SDS Co. Ltd.

    16,864       1,979,801  

Samsung Securities Co. Ltd.

    29,840       1,057,584  

SD Biosensor Inc.

    17,484       793,967  

Seegene Inc.

    17,222       738,135  

Shinhan Financial Group Co. Ltd.

    207,089       6,737,795  

SK Biopharmaceuticals Co. Ltd.(a)

    12,971       920,683  

SK Bioscience Co. Ltd.(a)

    10,778       1,319,860  

SK Chemicals Co. Ltd.

    5,338       560,747  

SK Hynix Inc.

    257,209             26,815,196  

SK IE Technology Co. Ltd.(a)(b)

    10,760       1,117,505  

SK Inc.

    19,756       3,773,592  

SK Innovation Co. Ltd.(a)

    23,906       4,035,716  

SK Square Co. Ltd.(a)

    41,191       1,911,638  

SK Telecom Co. Ltd.

    6,895       314,640  

SKC Co. Ltd.

    9,477       1,102,118  

S-Oil Corp.

    21,457       1,528,154  

Woori Financial Group Inc.

        221,147       2,645,271  

Yuhan Corp.

    24,987       1,214,073  
   

 

 

 
      412,059,437  
Taiwan — 23.7%            

Accton Technology Corp.

    229,000       2,076,702  

Acer Inc.

    1,353,000       1,404,182  

Advantech Co. Ltd.

    172,299       2,268,921  

Airtac International Group

    63,439       2,110,114  

ASE Technology Holding Co. Ltd.

    1,550,000       5,602,177  

Asia Cement Corp.

    1,027,000       1,659,895  

ASMedia Technology Inc.

    13,000       804,808  

Asustek Computer Inc.

    322,000       4,295,633  

AU Optronics Corp.

    3,908,000       2,925,829  

Catcher Technology Co. Ltd.

    314,000       1,611,702  

Cathay Financial Holding Co. Ltd.

    3,815,063       8,578,686  

Chailease Holding Co. Ltd.

    627,939       5,698,867  

Chang Hwa Commercial Bank Ltd.

    1,994,974       1,266,577  

Cheng Shin Rubber Industry Co. Ltd.

    860,000       1,100,198  

China Development Financial Holding Corp.

    7,106,920       4,866,922  

China Steel Corp.

    5,615,000       7,301,490  

Chunghwa Telecom Co. Ltd.

    1,816,000       8,071,424  

Compal Electronics Inc.

    1,982,000       1,805,625  

CTBC Financial Holding Co. Ltd.

    8,635,000       8,440,518  

Delta Electronics Inc.

    915,000       8,154,578  

E Ink Holdings Inc.

    402,000       2,166,498  

E.Sun Financial Holding Co Ltd.

    5,692,772       6,017,560  

Eclat Textile Co. Ltd.

    88,000       1,824,080  

 

 

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

  19


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Emerging Markets ex China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Taiwan (continued)

   

eMemory Technology Inc.

    30,000     $ 2,024,617  

Evergreen Marine Corp. Taiwan Ltd.

    1,197,000       6,288,148  

Far Eastern New Century Corp.

    1,377,000       1,459,680  

Far EasTone Telecommunications Co. Ltd.

    691,000       1,709,072  

Feng TAY Enterprise Co. Ltd.

    193,000       1,438,691  

First Financial Holding Co. Ltd.

    4,845,457       4,461,394  

Formosa Chemicals & Fibre Corp.

    1,702,000       4,825,294  

Formosa Petrochemical Corp.

    517,000       1,818,591  

Formosa Plastics Corp.

    1,779,000       6,717,531  

Foxconn Technology Co. Ltd.

    436,000       1,003,564  

Fubon Financial Holding Co. Ltd.

    3,523,230       9,512,946  

Giant Manufacturing Co. Ltd.

    137,000       1,422,307  

Globalwafers Co. Ltd.

    99,000       2,450,489  

Hiwin Technologies Corp.

    124,800       1,191,536  

Hon Hai Precision Industry Co. Ltd.

    5,878,200       21,834,915  

Hotai Motor Co. Ltd.

    137,600       3,115,462  

Hua Nan Financial Holdings Co. Ltd.

    4,304,035       3,412,799  

Innolux Corp.

    4,537,000       2,760,825  

Inventec Corp.

    1,257,000       1,160,839  

Largan Precision Co. Ltd.

    46,000       3,342,949  

Lite-On Technology Corp.

    939,000       2,308,888  

MediaTek Inc.

    712,000             28,135,269  

Mega Financial Holding Co. Ltd.

    5,173,000       6,971,139  

Micro-Star International Co. Ltd.

    301,000       1,696,670  

momo.com Inc.

    20,000       711,981  

Nan Ya Plastics Corp.

    2,496,000       7,872,383  

Nan Ya Printed Circuit Board Corp.

    103,000       1,972,410  

Nanya Technology Corp.

    597,000       1,671,839  

Nien Made Enterprise Co. Ltd.

    76,000       985,245  

Novatek Microelectronics Corp.

    267,000       4,426,450  

Oneness Biotech Co. Ltd.(a)

    104,000       918,138  

Parade Technologies Ltd.

    35,000       2,416,458  

Pegatron Corp.

    965,000       2,391,807  

Pou Chen Corp.

    995,000       1,147,447  

President Chain Store Corp.

    250,000       2,336,127  

Quanta Computer Inc.

    1,262,000       4,219,997  

Realtek Semiconductor Corp.

    217,000       3,577,887  

Ruentex Development Co. Ltd.

    506,400       1,307,538  

Shanghai Commercial & Savings Bank Ltd/The

    1,767,437       2,911,404  

Shin Kong Financial Holding Co. Ltd.

    6,063,897       2,459,119  

SinoPac Financial Holdings Co. Ltd.

    4,998,259       3,069,236  

Synnex Technology International Corp.

    629,000       1,628,460  

Taishin Financial Holding Co. Ltd.

    5,070,886       3,553,805  

Taiwan Cement Corp.

    2,395,983       4,067,476  

Taiwan Cooperative Financial Holding Co. Ltd.

    4,413,831       4,187,329  

Taiwan High Speed Rail Corp.

    898,000       950,418  

Taiwan Mobile Co. Ltd.

    752,000       2,780,814  

Taiwan Semiconductor Manufacturing Co. Ltd.

        11,577,000       248,900,361  

Unimicron Technology Corp.

    567,000       5,271,850  

Uni-President Enterprises Corp.

    2,363,000       5,685,123  

United Microelectronics Corp.

    5,541,000       10,441,190  

Vanguard International Semiconductor Corp.

    428,000       1,942,420  

Voltronic Power Technology Corp.

    27,000       1,402,197  

Wan Hai Lines Ltd.

    283,100       1,928,323  

Win Semiconductors Corp.

    155,000       1,696,898  

Winbond Electronics Corp.

    1,425,000       1,716,115  

Wiwynn Corp.

    36,000       1,285,762  

WPG Holdings Ltd.

    682,520       1,362,111  

Yageo Corp.

    205,000       3,363,385  

Yang Ming Marine Transport Corp.(a)

    814,000       3,440,368  
Security   Shares     Value  

Taiwan (continued)

   

Yuanta Financial Holding Co. Ltd.

    4,815,320     $ 4,301,490  

Zhen Ding Technology Holding Ltd.

    312,000       1,034,838  
   

 

 

 
      566,452,800  
Thailand — 2.7%            

Advanced Info Service PCL, NVDR

    540,100       3,801,935  

Airports of Thailand PCL, NVDR(a)

    2,004,400       3,960,158  

Asset World Corp. PCL, NVDR(a)(c)

    4,019,400       592,143  

B Grimm Power PCL, NVDR(c)

    401,100       425,550  

Bangkok Commercial Asset Management PCL, NVDR(c)

    912,400       614,244  

Bangkok Dusit Medical Services PCL, NVDR

    4,567,600       3,320,933  

Bangkok Expressway & Metro PCL, NVDR

    3,696,500       1,010,703  

Berli Jucker PCL, NVDR

    638,300       656,341  

BTS Group Holdings PCL, NVDR

    3,917,500       1,141,953  

Bumrungrad Hospital PCL, NVDR

    228,200       1,075,347  

Carabao Group PCL, NVDR(c)

    129,100       422,668  

Central Pattana PCL, NVDR

    978,900       1,664,650  

Central Retail Corp. PCL, NVDR

    889,400       1,045,800  

Charoen Pokphand Foods PCL, NVDR

    1,869,800       1,448,751  

CP ALL PCL, NVDR

    2,751,200       5,747,851  

Delta Electronics Thailand PCL, NVDR

    143,100       1,791,655  

Electricity Generating PCL, NVDR

    92,600       510,075  

Energy Absolute PCL, NVDR(c)

    691,400       2,020,713  

Global Power Synergy PCL, NVDR

    315,100       727,371  

Gulf Energy Development PCL, NVDR

    1,388,800       2,159,212  

Home Product Center PCL, NVDR

    2,929,700       1,371,916  

Indorama Ventures PCL, NVDR

    790,300       1,094,919  

Intouch Holdings PCL, NVDR

    538,050       1,251,153  

Krung Thai Bank PCL, NVDR

    1,133,800       487,792  

Krungthai Card PCL, NVDR

    427,200       831,332  

Land & Houses PCL, NVDR

    3,486,100       1,026,662  

Minor International PCL, NVDR(a)

    1,505,000       1,425,308  

Muangthai Capital PCL, NVDR

    375,100       594,100  

Osotspa PCL, NVDR

    617,200       668,098  

PTT Exploration & Production PCL, NVDR

    611,900       2,576,254  

PTT Global Chemical PCL, NVDR

    1,055,000       1,719,298  

PTT Oil & Retail Business PCL, NVDR

    1,528,000       1,210,801  

PTT PCL, NVDR

    4,684,000       5,701,686  

Ratch Group PCL, NVDR

    414,000       583,832  

SCG Packaging PCL, NVDR

    613,000       1,152,999  

Siam Cement PCL (The), NVDR

    365,700       4,401,066  

Siam Commercial Bank PCL (The), NVDR

    400,800       1,548,794  

Sri Trang Gloves Thailand PCL, NVDR(c)

    532,000       419,250  

Srisawad Corp. PCL, NVDR

    370,400       657,579  

Thai Oil PCL, NVDR

    573,500       953,374  

Thai Union Group PCL, NVDR

    1,387,700       866,383  

True Corp. PCL, NVDR(c)

    5,377,600       826,630  
   

 

 

 
            65,507,279  
Turkey — 0.4%            

Akbank TAS

    1,514,849       773,221  

Aselsan Elektronik Sanayi Ve Ticaret AS

    348,979       560,777  

BIM Birlesik Magazalar AS

    211,180       1,115,389  

Eregli Demir ve Celik Fabrikalari TAS

    612,449       1,375,330  

Ford Otomotiv Sanayi AS

    34,942       680,650  

KOC Holding AS

    384,439       878,860  

Turkcell Iletisim Hizmetleri AS

    570,314       845,566  

Turkiye Garanti Bankasi AS

    1,124,615       900,326  

Turkiye Is Bankasi AS, Class C

    704,332       407,822  

Turkiye Petrol Rafinerileri AS(a)

    56,691       790,137  

 

 

20  

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


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Emerging Markets ex China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Turkey (continued)

   

Turkiye Sise ve Cam Fabrikalari AS

    559,329     $ 500,316  
   

 

 

 
      8,828,394  
United Arab Emirates — 1.9%            

Abu Dhabi Commercial Bank PJSC

    1,299,816       3,812,260  

Abu Dhabi Islamic Bank PJSC

        683,371       1,648,655  

Abu Dhabi National Oil Co. for Distribution PJSC

    1,105,781       1,241,498  

Aldar Properties PJSC

    1,887,805       2,157,495  

Dubai Islamic Bank PJSC

    1,373,687       2,282,956  

Emaar Properties PJSC

    1,815,900       2,515,377  

Emirates NBD Bank PJSC

    1,237,953       4,829,304  

Emirates Telecommunications Group Co. PJSC

    1,636,425       15,628,561  

First Abu Dhabi Bank PJSC

    2,056,205       11,576,842  
   

 

 

 
            45,692,948  
   

 

 

 

Total Common Stocks — 96.4%
(Cost: $2,339,923,362)

      2,304,236,109  
   

 

 

 

Preferred Stocks

   

Brazil — 1.9%

   

Alpargatas SA, Preference Shares, NVS

    90,052       448,385  

Banco Bradesco SA, Preference Shares, NVS

    2,264,060       8,869,035  

Braskem SA, Class A, Preference Shares, NVS

    88,703       831,199  

Centrais Eletricas Brasileiras SA, Class B, Preference Shares, NVS

    117,318       779,198  

Cia. Energetica de Minas Gerais, Preference

   

Shares, NVS

    505,297       1,241,650  

Gerdau SA, Preference Shares, NVS

    533,134       2,644,246  

Itau Unibanco Holding SA, Preference Shares, NVS

    2,282,893       11,207,073  

Itausa SA, Preference Shares, NVS

    2,135,104       4,134,880  

Petroleo Brasileiro SA, Preference Shares, NVS

    2,237,329       14,706,985  
   

 

 

 
      44,862,651  
Chile — 0.2%            

Sociedad Quimica y Minera de Chile SA, Class B, Preference Shares

    63,628       4,225,655  
   

 

 

 
Colombia — 0.1%            

Bancolombia SA, Preference Shares, NVS

    213,347       1,885,818  
   

 

 

 
Russia — 0.0%            

Surgutneftegas PJSC, Preference Shares, NVS(d)

    3,036,700       326,055  
   

 

 

 
South Korea — 1.0%            

Hyundai Motor Co.

   

Preference Shares, NVS

    8,508       624,034  

Series 2, Preference Shares, NVS

    17,058       1,261,875  

LG Chem Ltd., Preference Shares, NVS

    3,298       747,490  
Security   Shares     Value  

 

 

South Korea (continued)

   

LG Household & Health Care Ltd., Preference Shares, NVS

    548     $ 240,193  

Samsung Electronics Co. Ltd., Preference Shares, NVS

        385,495             21,305,338  
   

 

 

 
      24,178,930  
   

 

 

 

Total Preferred Stocks — 3.2%
(Cost: $75,029,830)

      75,479,109  
   

 

 

 

Rights

   

Brazil — 0.0%

   

Americanas SA (Expires 03/03/22)(a)

    4,992       6,560  
   

 

 

 
South Korea — 0.0%            

Samsung Biologics Co. Ltd. (Expires 04/08/22)(a)

    518       60,280  
   

 

 

 

Total Rights — 0.0%
(Cost: $0)

      66,840  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 0.7%

   

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

    12,937,350       12,939,937  

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

    4,450,000       4,450,000  
   

 

 

 
      17,389,937  
   

 

 

 

Total Short-Term Investments — 0.7%
(Cost: $17,390,187)

      17,389,937  
   

 

 

 

Total Investments in Securities — 100.3%
(Cost: $2,432,343,379)

      2,397,171,995  

Other Assets, Less Liabilities — (0.3)%

      (6,091,722
   

 

 

 

Net Assets — 100.0%

    $ 2,391,080,273  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

All or a portion of this security is on loan.

(d) 

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

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

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

 

 

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  (unaudited) (continued)

February 28, 2022

   iShares® MSCI Emerging Markets ex China ETF

 

Affiliates

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

 

 

 

   
     Affiliated Issuer  

Value at

08/31/21

   

Purchases

at Cost

   

Proceeds

from Sales

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

02/28/22

   

Shares

Held at

02/28/22

    Income    

Capital

Gain

Distributions

from

Underlying

Funds

      
 

 

   
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 5,479,242     $ 7,463,585 (a)    $      $ (2,640    $ (250   $ 12,939,937       12,937,350     $ 133,858 (b)    $    
 

BlackRock Cash Funds: Treasury, SL Agency Shares

          4,450,000 (a)                        4,450,000       4,450,000       134          
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   
           $ (2,640    $ (250   $ 17,389,937       $ 133,992     $    
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

  (a) 

Represents net amount purchased (sold).

  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 

Long Contracts

        

MSCI Emerging Markets Index

     120       03/18/22     $ 7,053     $ (214,466
        

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
     Equity
Contracts
 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 214,466  
  

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

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

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 90,316  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (359,146
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 6,187,483      

 

 

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

 

 

22  

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


Schedule of Investments  (unaudited) (continued)

February 28, 2022

   iShares® MSCI Emerging Markets ex China 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

   $ 212,037,455      $ 2,073,280,344      $ 18,918,310      $ 2,304,236,109  

Preferred Stocks

     1,885,818        73,267,236        326,055        75,479,109  

Rights

            66,840               66,840  

Money Market Funds

     17,389,937                      17,389,937  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $   231,313,210      $ 2,146,614,420      $       19,244,365      $ 2,397,171,995  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Liabilities

           

Futures Contracts

   $ (214,466    $      $      $ (214,466
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

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

  23


Schedule of Investments (unaudited)

February 28, 2022

  

iShares® MSCI Emerging Markets Min Vol Factor  ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Brazil — 0.1%

   

Raia Drogasil SA

    679,115     $ 3,074,448  
   

 

 

 

China — 28.1%

   

360 Security Technology Inc., Class A(a)

    4,029,200       6,706,760  

51job Inc., ADR(a)

    55,142       2,856,356  

Addsino Co. Ltd., Class A

    831,000       1,980,592  

Agricultural Bank of China Ltd., Class A

    19,412,098       9,170,996  

Agricultural Bank of China Ltd., Class H

    75,375,000       28,545,949  

Alibaba Group Holding Ltd.(a)

    1,703,468       22,424,238  

Anhui Gujing Distillery Co. Ltd., Class B

    1,016,589       14,906,109  

ANTA Sports Products Ltd.

    574,800       8,779,036  

Apeloa Pharmaceutical Co. Ltd., Class A

    652,400       2,929,025  

Bank of China Ltd., Class A

    19,447,200       9,550,638  

Bank of China Ltd., Class H

    127,194,000       49,516,839  

Bank of Communications Co. Ltd., Class A

    13,568,274       10,285,666  

Bank of Communications Co. Ltd., Class H

    8,492,000       5,821,515  

Bank of Ningbo Co. Ltd., Class A

    469,865       2,841,061  

Bank of Shanghai Co. Ltd., Class A

    3,289,184       3,645,571  

BeiGene Ltd., ADR(a)(b)

    40,517       8,529,638  

Beijing Capital International Airport Co. Ltd., Class H(a)

    7,456,000       4,775,638  

Beijing Sinnet Technology Co. Ltd., Class A

    869,973       2,072,175  

Beijing Tiantan Biological Products Corp. Ltd., Class A

    743,195       3,228,158  

Beijing-Shanghai High Speed Railway Co. Ltd., Class A

    5,739,400       4,702,104  

BOE Technology Group Co. Ltd., Class A

    4,233,500       3,159,630  

BYD Co. Ltd., Class H

    240,500       7,452,456  

CGN Power Co. Ltd., Class H(c)

    45,785,000       12,980,551  

Changchun High & New Technology Industry Group Inc., Class A

    102,200       2,965,530  

Chifeng Jilong Gold Mining Co. Ltd.,
Class A(a)

    719,300       1,789,968  

China CITIC Bank Corp. Ltd., Class H

    14,368,000       6,751,712  

China Conch Venture Holdings Ltd.

    2,235,000       10,755,352  

China Construction Bank Corp., Class A

    5,409,884       5,175,699  

China Construction Bank Corp., Class H

    11,436,000       8,576,595  

China Feihe Ltd.(c)

    2,922,000       3,486,704  

China Gas Holdings Ltd.

    1,563,200       2,470,438  

China Huishan Dairy Holdings Co. Ltd.(a)(d)

    22,241,266       28  

China Life Insurance Co. Ltd., Class H

    1,212,000       2,007,835  

China Mengniu Dairy Co. Ltd.

    2,822,000       18,349,822  

China Merchants Bank Co. Ltd., Class H

    1,540,500       12,985,346  

China Minsheng Banking Corp. Ltd., Class A

    3,129,954       1,939,758  

China National Medicines Corp. Ltd., Class A

    417,300       1,841,866  

China Petroleum & Chemical Corp., Class H

    7,134,000       3,549,070  

China Resources Beer Holdings Co. Ltd.

    3,196,000       25,342,368  

China Resources Gas Group Ltd.

    2,186,000       10,040,275  

China Shenhua Energy Co. Ltd., Class H

    1,328,500       3,661,325  

China Tourism Group Duty Free Corp. Ltd., Class A

    429,081       13,858,840  

China Tower Corp. Ltd., Class H(c)

    181,440,000       21,147,467  

China TransInfo Technology Co. Ltd., Class A

    890,516       1,967,428  

China United Network Communications Ltd., Class A

    17,453,800       10,574,539  

China Yangtze Power Co. Ltd., Class A

    13,071,072       48,089,951  

China Zhenhua Group Science & Technology Co. Ltd., Class A

    126,200       2,352,214  

Chongqing Zhifei Biological Products Co. Ltd., Class A

    138,300       2,830,456  

CSPC Pharmaceutical Group Ltd.

    2,440,000       2,892,285  

Daan Gene Co Ltd., Class A

    791,400       2,326,542  

Dali Foods Group Co. Ltd.(c)

    3,724,000       1,961,365  

DHC Software Co. Ltd., Class A

    1,706,800       2,237,725  

ENN Energy Holdings Ltd.

    761,000       11,021,101  
Security   Shares     Value  

China (continued)

   

Foshan Haitian Flavouring & Food Co. Ltd., Class A

    199,031     $ 3,136,783  

Founder Securities Co. Ltd., Class A

    4,642,000       5,298,744  

Fuyao Glass Industry Group Co. Ltd., Class A

    262,203       1,840,260  

GCL System Integration Technology Co. Ltd., Class A(a)

    3,301,700       1,924,983  

Giant Network Group Co. Ltd., Class A

    1,107,553       1,681,276  

Guangdong Haid Group Co. Ltd., Class A

    921,822       9,650,059  

Guangdong Investment Ltd.

    7,920,000       10,657,901  

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A

    792,800       3,738,841  

Guangzhou Haige Communications Group Inc. Co., Class A

    1,299,300       2,056,019  

Hangzhou Tigermed Consulting Co. Ltd.,
Class H(c)

    577,300       6,495,231  

Hansoh Pharmaceutical Group Co. Ltd.(c)

    4,978,000       10,626,506  

Hengan International Group Co. Ltd.

    977,500       5,183,949  

Hengtong Optic-Electric Co. Ltd., Class A

    1,332,100       3,126,228  

Huagong Tech Co. Ltd., Class A

    566,315       2,211,684  

Hualan Biological Engineering Inc., Class A

    432,980       1,767,936  

Huaxia Bank Co. Ltd., Class A

    5,254,920       4,690,721  

Hundsun Technologies Inc., Class A

    551,600       4,584,259  

Iflytek Co. Ltd., Class A

    1,300,100       10,159,336  

Industrial & Commercial Bank of China Ltd., Class A

    2,624,000       1,938,523  

Industrial & Commercial Bank of China Ltd., Class H

    50,940,000       30,408,891  

Industrial Bank Co. Ltd., Class A

    1,423,912       4,988,492  

Inner Mongolia BaoTou Steel Union Co. Ltd., Class A(a)

    16,277,800       6,947,759  

Inspur Electronic Information Industry Co. Ltd., Class A

    819,422       4,284,807  

JDcom Inc, Class A(a)

    806,137       28,794,747  

Jiangsu Expressway Co. Ltd., Class H

    11,298,000       12,088,206  

Jiangsu Hengrui Medicine Co. Ltd., Class A

    2,191,657       13,957,510  

Jiangsu Zhongtian Technology Co. Ltd., Class A

    1,697,400       5,045,022  

Jointown Pharmaceutical Group Co. Ltd., Class A

    1,038,678       2,194,954  

Kingdee International Software
Group Co. Ltd.(a)(b)

    1,595,000       3,942,269  

Kweichow Moutai Co. Ltd., Class A

    21,190       6,026,208  

Legend Biotech Corp., ADR(a)(b)

    75,466       2,987,699  

Lenovo Group Ltd.

    2,960,000       3,296,164  

Meituan, Class B(a)(c)

    187,800       4,172,007  

NavInfo Co. Ltd., Class A(a)

    1,279,300       3,483,150  

NetEase Inc.

    431,855       8,352,809  

PetroChina Co. Ltd., Class A

    2,772,000       2,555,659  

Pharmaron Beijing Co. Ltd., Class H(c)

    92,100       1,116,625  

Pinduoduo Inc., ADR(a)

    89,395       4,636,025  

Ping An Insurance Group Co. of China Ltd., Class H

    2,875,000       22,291,779  

Postal Savings Bank of China Co. Ltd.,
Class H(c)

    35,225,000       28,922,679  

Sangfor Technologies Inc., Class A

    97,600       2,263,756  

SDIC Power Holdings Co. Ltd., Class A

    3,856,272       6,116,997  

SF Holding Co. Ltd., Class A

    653,700       6,271,915  

Shandong Gold Mining Co. Ltd., Class A

    2,009,368       6,558,996  

Shandong Gold Mining Co. Ltd., Class H(b)(c)

    4,984,000       9,358,938  

Shandong Weigao Group Medical Polymer Co. Ltd., Class H

    2,604,800       3,596,689  

Shanghai Baosight Software Co. Ltd., Class B

    3,639,834       15,718,820  

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H

    363,500       1,457,456  

Shanghai International Airport Co. Ltd.,
Class A(a)

    308,800       2,569,073  

Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B

    10,156,991       9,049,879  

Shanghai M&G Stationery Inc., Class A

    322,751       2,782,108  

Shanghai Pharmaceuticals Holding Co. Ltd., Class H

    2,625,600       4,739,375  

Shanghai Pudong Development Bank Co. Ltd., Class A

    3,117,568       4,149,731  

Shanghai RAAS Blood Products Co. Ltd., Class A

    3,801,200       4,025,805  

 

 

24  

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


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Emerging Markets Min Vol Factor  ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

China (continued)

   

Shenzhen Goodix Technology Co. Ltd., Class A

    107,600     $ 1,558,206  

Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A

    147,900       7,690,918  

Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A(a)

    428,229       1,699,957  

Shenzhou International Group Holdings Ltd.

    983,300       16,516,104  

Sichuan Chuantou Energy Co. Ltd., Class A

    2,044,157       3,900,012  

Sino Biopharmaceutical Ltd.

    9,571,000       6,109,789  

Sinopec Shanghai Petrochemical Co. Ltd., Class A

    2,803,264       1,813,397  

Sinopharm Group Co. Ltd., Class H

    853,200       2,068,313  

Songcheng Performance Development Co. Ltd., Class A

    1,449,259       3,556,154  

Suningcom Co Ltd, Class A(a)

    5,250,079       2,994,923  

Tencent Holdings Ltd.

    480,400       25,923,014  

Thunder Software Technology Co. Ltd., Class A

    85,800       1,911,422  

Tianjin 712 Communication & Broadcasting Co. Ltd., Class A

    435,292       2,373,957  

Tianjin Zhonghuan Semiconductor Co. Ltd., Class A

    682,400       5,224,700  

Tianshui Huatian Technology Co. Ltd., Class A

    1,195,500       2,278,510  

Topchoice Medical Corp., Class A(a)

    123,599       3,171,139  

TravelSky Technology Ltd., Class H

    1,270,000       2,392,240  

Vipshop Holdings Ltd., ADR(a)

    190,101       1,648,176  

Walvax Biotechnology Co. Ltd., Class A

    485,301       3,616,945  

Want Want China Holdings Ltd.(b)

    3,213,000       3,420,320  

WuXi AppTec Co. Ltd., Class H(c)

    512,064       7,288,951  

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

    653,000       5,401,235  

Xiaomi Corp., Class B(a)(c)

    5,897,400       11,100,187  

Yealink Network Technology Corp. Ltd., Class A

    171,900       2,083,782  

Yonyou Network Technology Co. Ltd., Class A

    391,100       1,951,750  

Yum China Holdings Inc.

    750,908       39,062,234  

Yunnan Baiyao Group Co. Ltd., Class A

    157,067       2,244,063  

Zhejiang Dahua Technology Co. Ltd., Class A

    865,000       2,575,765  

Zhejiang Jiuzhou Pharmaceutical Co. Ltd., Class A

    217,900       1,659,435  

Zhejiang Supor Co. Ltd., Class A

    195,185       1,567,419  

Zhongsheng Group Holdings Ltd.

    857,500       5,987,856  

ZTE Corp., Class A

    2,189,100       10,130,452  

ZTE Corp., Class H

    1,229,200       3,028,191  

ZTO Express Cayman Inc., ADR

    469,408       13,819,371  
   

 

 

 
      1,047,501,430  

Czech Republic — 0.4%

   

CEZ AS

    172,797       6,580,081  

Komercni Banka AS(a)

    200,532       7,889,011  
   

 

 

 
      14,469,092  

Egypt — 0.2%

   

Commercial International Bank Egypt SAE(a)

    2,859,288       8,708,867  
   

 

 

 

Greece — 0.6%

   

Hellenic Telecommunications Organization SA

    1,154,221       23,086,696  
   

 

 

 

Hungary — 0.5%

   

OTP Bank Nyrt(a)

    96,175       3,669,961  

Richter Gedeon Nyrt

    730,597       15,340,112  
   

 

 

 
      19,010,073  

India — 13.8%

   

ACC Ltd.

    274,910       7,657,090  

Apollo Hospitals Enterprise Ltd.

    52,770       3,377,540  

Asian Paints Ltd.

    772,073       32,628,664  

Bajaj Auto Ltd.

    185,175       8,713,898  

Bharti Airtel Ltd.(a)

    1,242,817       11,364,682  

Britannia Industries Ltd.

    244,888       11,177,959  
Security   Shares     Value  

India (continued)

   

Cipla Ltd.

    1,303,355     $ 16,041,748  

Colgate-Palmolive India Ltd.

    121,194       2,338,007  

Dabur India Ltd.

    2,653,524       19,894,615  

Divi’s Laboratories Ltd.

    183,241       10,413,860  

Dr. Reddy’s Laboratories Ltd.

    277,672       14,992,366  

Eicher Motors Ltd.

    401,744       13,876,419  

HCL Technologies Ltd.

    2,447,377       36,801,765  

Hindustan Unilever Ltd.

    896,387       25,922,000  

Housing Development Finance Corp. Ltd.

    268,246       8,478,129  

Infosys Ltd.

    2,088,953       47,606,960  

ITC Ltd.

    732,281       2,108,534  

Lupin Ltd.

    714,011       7,093,340  

Marico Ltd.

    2,609,300       17,863,473  

Maruti Suzuki India Ltd.

    27,380       3,034,623  

Mindtree Ltd.

    36,817       1,910,466  

Mphasis Ltd.

    105,710       4,391,752  

MRF Ltd.

    14,577       12,754,946  

Nestle India Ltd.

    28,066       6,591,434  

Page Industries Ltd.

    34,180       19,239,706  

Pidilite Industries Ltd.

    823,387       26,357,995  

Reliance Industries Ltd.

    367,184       11,559,577  

Sun Pharmaceutical Industries Ltd.

    1,315,934       14,782,448  

Tata Consultancy Services Ltd.

    931,052       44,105,537  

Tech Mahindra Ltd.

    1,377,200       25,929,649  

Titan Co. Ltd.

    476,532       16,186,121  

UltraTech Cement Ltd.

    23,994       2,099,997  

Wipro Ltd.

    3,225,210       23,849,608  

Yes Bank Ltd.(a)

    12,299,477       2,172,853  
   

 

 

 
      513,317,761  

Kuwait — 2.0%

   

Kuwait Finance House KSCP

    3,607,340       11,284,517  

Mobile Telecommunications Co. KSCP

    12,859,440       26,364,783  

National Bank of Kuwait SAKP

    10,071,217       35,304,272  
   

 

 

 
      72,953,572  

Malaysia — 4.1%

   

DiGi.Com Bhd

    10,785,600       10,427,025  

Hong Leong Bank Bhd

    3,331,600       15,949,909  

IHH Healthcare Bhd

    14,297,700       22,431,312  

IOI Corp. Bhd

    2,092,000       2,298,699  

Malayan Banking Bhd

    15,549,000       32,488,977  

Malaysia Airports Holdings Bhd(a)

    1,235,600       1,809,918  

Maxis Bhd

    6,095,100       5,843,611  

Nestle Malaysia Bhd

    661,900       21,152,009  

Petronas Chemicals Group Bhd

    3,235,300       7,359,084  

Petronas Dagangan Bhd

    947,600       4,857,057  

PPB Group Bhd

    2,505,200       10,704,606  

Public Bank Bhd

    3,314,100       3,519,724  

Telekom Malaysia Bhd

    2,594,500       3,126,871  

Tenaga Nasional Bhd

    4,243,300       9,275,809  

Westports Holdings Bhd

    2,859,800       2,663,289  
   

 

 

 
      153,907,900  

Mexico — 0.7%

   

Wal-Mart de Mexico SAB de CV

    7,184,300       27,325,666  
   

 

 

 

Peru — 0.7%

   

Cia. de Minas Buenaventura SAA, ADR(a)

    364,459       3,608,144  

Credicorp Ltd.

    151,833       22,964,741  
   

 

 

 
      26,572,885  

 

 

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

  25


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Emerging Markets Min Vol Factor  ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Philippines — 2.0%

   

Bank of the Philippine Islands

    6,926,868     $ 13,537,940  

BDO Unibank Inc.

    5,912,363       14,982,901  

Globe Telecom Inc.

    238,445       11,981,110  

International Container Terminal Services Inc.

    3,299,890       13,554,844  

Manila Electric Co.

    1,273,130       9,161,056  

Metropolitan Bank & Trust Co.

    3,980,153       4,432,743  

PLDT Inc.

    56,375       1,978,128  

SM Investments Corp.

    120,815       2,101,950  

Universal Robina Corp.

    729,340       1,707,057  
   

 

 

 
      73,437,729  

Poland — 0.3%

   

Allegro.eu SA(a)(c)

    196,741       1,466,229  

Dino Polska SA(a)(c)

    140,460       9,876,709  
   

 

 

 
          11,342,938  

Qatar — 2.5%

   

Masraf Al Rayan QSC(a)

    20,487,768       28,067,742  

Qatar Electricity & Water Co. QSC

    2,553,453       12,607,327  

Qatar Fuel QSC

    924,748       4,712,802  

Qatar Islamic Bank SAQ

    3,133,124       18,104,936  

Qatar National Bank QPSC

    4,754,342       28,461,855  
   

 

 

 
      91,954,662  

Russia — 0.1%

   

Polymetal International PLC(d)

    244,417       741,274  

Polyus PJSC(d)

    95,932       3,614,552  

Rosneft Oil Co. PJSC(d)

    759,070       791,886  

Yandex NV(a)(d)

    49,681       324,771  
   

 

 

 
      5,472,483  

Saudi Arabia — 9.2%

   

Abdullah Al Othaim Markets Co.

    361,329       10,746,687  

Advanced Petrochemical Co.

    380,380       7,631,558  

Al Rajhi Bank

    1,449,745       62,196,538  

Alinma Bank

    4,531,753       42,970,391  

Bank AlBilad(a)

    207,188       3,260,643  

Bank Al-Jazira

    852,245       6,123,450  

Bupa Arabia for Cooperative Insurance Co.

    82,640       3,583,564  

Co for Cooperative Insurance (The)

    360,933       7,585,674  

Dr Sulaiman Al Habib Medical Services Group Co.

    91,941       4,204,443  

Emaar Economic City(a)

    857,160       2,840,155  

Etihad Etisalat Co.(a)

    2,722,203       25,371,573  

Jarir Marketing Co.

    543,282       30,334,049  

Mobile Telecommunications Co.(a)

    2,197,948       7,894,912  

SABIC Agri-Nutrients Co.

    544,645       23,206,160  

Saudi Arabian Oil Co.(c)

    1,036,023       11,494,162  

Saudi Basic Industries Corp.

    890,934       29,701,349  

Saudi Electricity Co.

    1,453,115       10,724,919  

Saudi Telecom Co.

        1,554,091       47,417,281  

Yanbu National Petrochemical Co.

    386,828       7,100,498  
   

 

 

 
      344,388,006  

South Korea — 6.0%

   

Amorepacific Corp.

    12,823       1,979,368  

Celltrion Healthcare Co. Ltd.(b)

    27,101       1,441,437  

Celltrion Inc.

    26,186       3,495,304  

CJ Logistics Corp.(a)

    41,443       4,296,880  

Coway Co. Ltd.

    83,805       5,033,227  

F&F Co. Ltd./New(a)

    3,377       2,524,098  

Hanon Systems

    448,493       4,343,304  

HLB Inc.(a)

    65,280       1,710,422  

Hotel Shilla Co. Ltd.(b)

    213,665       14,440,946  

Kakao Corp.

    89,457       7,084,705  
Security   Shares     Value  

South Korea (continued)

   

Kia Corp.

    27,144     $ 1,682,801  

KT&G Corp.

    298,455       19,840,258  

LG Household & Health Care Ltd.

    1,909       1,514,683  

LG Uplus Corp.

    318,002       3,493,045  

NAVER Corp.

    110,316       29,394,493  

NCSoft Corp.

    16,411       6,079,371  

Netmarble Corp.(c)

    51,866       4,456,740  

Orion Corp./Republic of Korea

    28,215       2,159,131  

Pearl Abyss Corp.(a)(b)

    45,019       3,610,662  

S-1 Corp.

    158,216       9,210,279  

Samsung Biologics Co. Ltd.(a)(c)

    21,168       13,770,905  

Samsung Electronics Co. Ltd.

    513,118       30,917,092  

Samsung SDS Co. Ltd.

    89,440       10,500,086  

SK Bioscience Co. Ltd.(a)

    10,380       1,271,121  

SK Hynix Inc.

    143,286       14,938,211  

SK Telecom Co. Ltd.

    247,344       11,287,070  

Yuhan Corp.

    252,086       12,248,403  
   

 

 

 
          222,724,042  

Taiwan — 18.2%

   

Accton Technology Corp.

    466,000       4,225,952  

Advantech Co. Ltd.

    2,624,855       34,565,423  

Asustek Computer Inc.

    1,949,000       26,000,584  

Cathay Financial Holding Co. Ltd.

    3,295,034       7,409,331  

China Steel Corp.

    7,196,000       9,357,350  

Chunghwa Telecom Co. Ltd.

    13,846,000       61,540,163  

Compal Electronics Inc.

    24,776,000       22,571,222  

Delta Electronics Inc.

    411,000       3,662,876  

E.Sun Financial Holding Co Ltd.

    18,929,459       20,009,437  

Far EasTone Telecommunications Co. Ltd.

    15,025,000       37,161,805  

First Financial Holding Co. Ltd.

    65,284,899       60,110,251  

Formosa Petrochemical Corp.

    2,074,000       7,295,468  

Formosa Plastics Corp.

    2,220,840       8,385,925  

Hon Hai Precision Industry Co. Ltd.

    2,265,000       8,413,474  

Hua Nan Financial Holdings Co. Ltd.

    55,045,089       43,646,903  

Lite-On Technology Corp.

    7,572,752       18,620,483  

Mega Financial Holding Co. Ltd.

    11,772,000       15,863,958  

Pou Chen Corp.

    3,018,000       3,480,396  

President Chain Store Corp.

    5,330,000       49,806,234  

Quanta Computer Inc.

    2,576,000       8,613,877  

Synnex Technology International Corp.

    9,834,000       25,459,899  

Taiwan Cooperative Financial Holding Co. Ltd.

    66,630,330       63,211,107  

Taiwan High Speed Rail Corp.

    7,001,000       7,409,660  

Taiwan Mobile Co. Ltd.

    15,535,000       57,446,729  

Taiwan Semiconductor Manufacturing Co. Ltd.

    2,597,000       55,834,347  

Uni-President Enterprises Corp.

    2,790,000       6,712,439  

United Microelectronics Corp.

    1,261,000       2,376,167  

WPG Holdings Ltd.

        5,607,440       11,190,819  
   

 

 

 
      680,382,279  

Thailand — 5.3%

   

Advanced Info Service PCL, NVDR

    7,041,300       49,565,938  

Airports of Thailand PCL, NVDR(a)

    16,559,000       32,716,150  

Bangkok Dusit Medical Services PCL, NVDR

    34,316,500       24,950,259  

Bangkok Expressway & Metro PCL, NVDR

    6,915,400       1,890,820  

Bumrungrad Hospital PCL, NVDR

    2,517,100       11,861,335  

CP ALL PCL, NVDR

    13,780,600       28,790,650  

Home Product Center PCL, NVDR

    23,781,300       11,136,274  

Intouch Holdings PCL, NVDR

    7,810,900       18,163,058  

PTT Oil & Retail Business PCL, NVDR

    12,148,300       9,626,420  

Siam Cement PCL (The), NVDR

    422,400       5,083,429  

 

 

26  

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


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Emerging Markets Min Vol Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Thailand (continued)

   

Sri Trang Gloves Thailand PCL, NVDR

    2,146,000     $ 1,691,186  

Thai Union Group PCL, NVDR

    3,111,800       1,942,792  
   

 

 

 
      197,418,311  

Turkey — 0.5%

   

BIM Birlesik Magazalar AS

    2,095,462       11,067,594  

Turkcell Iletisim Hizmetleri AS

    2,316,687       3,434,795  

Turkiye Petrol Rafinerileri AS(a)

    168,804       2,352,724  

Turkiye Sise ve Cam Fabrikalari AS

    2,649,698       2,370,135  
   

 

 

 
      19,225,248  

United Arab Emirates — 3.7%

   

Abu Dhabi National Oil Co. for Distribution PJSC

    23,528,422       26,416,172  

Aldar Properties PJSC

    10,921,738       12,482,006  

Dubai Islamic Bank PJSC

    3,408,592       5,664,803  

Emirates Telecommunications Group Co. PJSC

    7,514,943       71,770,929  

First Abu Dhabi Bank PJSC

    3,539,151       19,926,122  
   

 

 

 
      136,260,032  
   

 

 

 

Total Common Stocks — 99.0%
(Cost: $3,346,167,878)

        3,692,534,120  
   

 

 

 

Preferred Stocks

   

Russia — 0.1%

   

Surgutneftegas PJSC, Preference Shares, NVS(d)

      40,815,200       4,382,392  
   

 

 

 

South Korea — 0.5%

   

LG Household & Health Care Ltd., Preference Shares, NVS

    16,548       7,253,115  

Samsung Electronics Co. Ltd., Preference Shares, NVS

    195,153       10,785,615  
   

 

 

 
      18,038,730  
   

 

 

 

Total Preferred Stocks — 0.6%
(Cost: $45,111,734)

      22,421,122  
   

 

 

 

Security   Shares     Value  

 

 

Rights

   

South Korea — 0.0%

   

Samsung Biologics Co. Ltd. (Expires 04/08/22)(a)

    1,495     $ 174,096  
   

 

 

 

Total Rights — 0.0%
(Cost: $0)

      174,096  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 1.3%

   

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

    43,082,941       43,091,558  

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

    6,090,000       6,090,000  
   

 

 

 
      49,181,558  
   

 

 

 

Total Short-Term Investments — 1.3%
(Cost: $49,174,925)

 

    49,181,558  
   

 

 

 

Total Investments in Securities — 100.9%
(Cost: $3,440,454,537)

 

    3,764,310,896  

Other Assets, Less Liabilities — (0.9)%

 

    (31,737,121
   

 

 

 

Net Assets — 100.0%

    $  3,732,573,775  
   

 

 

 

 

(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) 

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

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

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

Affiliates

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

 

 

 

   
     Affiliated Issuer   Value at
08/31/21
    Purchases
at Cost
    Proceeds
from Sales
   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation
(Depreciation)

   

Value at

02/28/22

   

Shares

Held at

02/28/22

    Income    

Capital

Gain
Distributions

from
Underlying
Funds

      
 

 

   
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 15,776,157     $ 27,321,615 (a)    $     $ 1,372     $ (7,586   $ 43,091,558       43,082,941     $ 182,713 (b)    $    
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    7,590,000             (1,500,000 )(a)                  6,090,000       6,090,000       353          
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   
          $ 1,372     $ (7,586   $ 49,181,558       $ 183,066     $    
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

  (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.

 

 

 

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 (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Emerging Markets Min Vol Factor  ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description   

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Long Contracts

           

MSCI Emerging Markets Index

     186        03/18/22      $ 10,932      $ (352,004

U.S. 2 Year Treasury Note

     10        06/30/22        2,152        3,737  
           

 

 

 
            $ (348,267
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
     Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 3,737  
  

 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 352,004  
  

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

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

 

 

 
    

Equity

Contracts

    

Interest

Rate

Contracts

     Total  

 

 

Net Realized Gain (Loss) from:

        

Futures contracts

   $ 327,303      $ (22,263    $ 305,040  
  

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

        

Futures contracts

   $ (606,864    $ (1,330    $ (608,194
  

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 16,838,191      

 

 

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

Fair Value Hierarchy as of Period End

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

 

 

28  

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


Schedule of Investments (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Emerging Markets Min Vol Factor  ETF

 

Fair Value Hierarchy as of Period End (continued)

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

   $   334,882,772      $ 3,352,178,837      $       5,472,511      $ 3,692,534,120  

Preferred Stocks

            18,038,730        4,382,392        22,421,122  

Rights

            174,096               174,096  

Money Market Funds

     49,181,558                      49,181,558  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 384,064,330      $ 3,370,391,663      $ 9,854,903      $ 3,764,310,896  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 3,737      $      $      $ 3,737  

Liabilities

           

Futures Contracts

     (352,004                    (352,004
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ (348,267    $      $      $ (348,267
  

 

 

    

 

 

    

 

 

    

 

 

 

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

See notes to financial statements.

 

 

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

  29


Schedule of Investments  (unaudited) 

February 28, 2022

  

iShares® MSCI Emerging Markets Multifactor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Brazil — 1.3%

   

BB Seguridade Participacoes SA

    797,804     $ 3,517,928  

Telefonica Brasil SA

    578,175       5,669,962  

TIM SA

    965,663       2,561,410  
   

 

 

 
      11,749,300  
Chile — 0.3%            

Cencosud SA

    1,631,582       3,001,033  
   

 

 

 
China — 40.9%            

360 DigiTech Inc., ADR

    97,435       1,826,906  

3SBio Inc.(a)(b)

    1,448,000       1,150,826  

Alibaba Group Holding Ltd.(b)

    806,448       10,615,980  

Aluminum Corp. of China Ltd., Class H(b)

    4,496,000       3,177,880  

Anhui Conch Cement Co. Ltd., Class H

    1,407,000       7,550,701  

Apeloa Pharmaceutical Co. Ltd., Class A

    80,800       362,761  

Bank of China Ltd., Class H

    14,767,000       5,748,818  

Bank of Communications Co. Ltd., Class H

    9,976,000       6,838,840  

Baoshan Iron & Steel Co. Ltd., Class A

    1,525,400       1,748,360  

Beijing Enterprises Holdings Ltd.

    575,500       1,967,348  

Bosideng International Holdings Ltd.

    3,706,000       2,108,592  

CECEP Solar Energy Co. Ltd., Class A

    200,700       320,648  

China Cinda Asset Management Co. Ltd., Class H

    10,008,000       1,806,579  

China CITIC Bank Corp. Ltd., Class H

    10,177,000       4,782,306  

China Coal Energy Co. Ltd., Class H

    2,340,000       1,458,601  

China Communications Services Corp. Ltd., Class H

    2,730,000       1,497,735  

China Conch Venture Holdings Ltd.

    1,863,500       8,967,605  

China Construction Bank Corp., Class H

        38,566,000           28,923,133  

China Everbright Bank Co. Ltd., Class H

    3,604,000       1,340,355  

China Hongqiao Group Ltd.

    2,599,000       3,638,622  

China Lesso Group Holdings Ltd.

    1,238,000       1,906,006  

China Longyuan Power Group Corp. Ltd., Class H

    3,807,000       7,856,086  

China Medical System Holdings Ltd.

    1,552,000       2,763,574  

China Meidong Auto Holdings Ltd.

    638,000       3,004,015  

China Merchants Port Holdings Co. Ltd.

    1,706,000       3,216,486  

China National Building Material Co. Ltd., Class H

    4,676,000       5,998,505  

China Power International Development Ltd.

    4,476,000       2,537,163  

China Railway Group Ltd., Class H

    4,555,000       2,674,495  

China Resources Cement Holdings Ltd.

    2,776,000       2,375,395  

China Resources Power Holdings Co. Ltd.

    2,194,000       4,900,452  

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A

    67,000       379,824  

China Shenhua Energy Co. Ltd., Class H

    3,849,500       10,609,162  

China State Construction International Holdings Ltd.

    2,302,000       3,241,944  

China Taiping Insurance Holdings Co. Ltd.

    1,843,800       2,182,335  

China Tower Corp. Ltd., Class H(a)

    22,284,000       2,597,278  

China Traditional Chinese Medicine Holdings Co. Ltd.

    3,150,000       1,795,688  

China Zhenhua Group Science & Technology Co. Ltd., Class A

    35,200       656,085  

Chinasoft International Ltd.

    2,972,000       2,711,655  

COSCO SHIPPING Holdings Co. Ltd., Class H(b)

    3,823,500       7,728,153  

COSCO SHIPPING Ports Ltd.

    2,086,000       1,719,017  

Daan Gene Co Ltd., Class A

    93,580       275,105  

Dali Foods Group Co. Ltd.(a)

    2,336,500       1,230,593  

Daqo New Energy Corp., ADR(b)

    23,365       1,120,586  

Dongfeng Motor Group Co. Ltd., Class H

    3,096,000       2,664,808  

Dongyue Group Ltd.

    1,670,000       2,422,735  

Far East Horizon Ltd.

    1,901,000       1,620,129  

Fosun International Ltd.

    2,861,500       3,104,737  

GF Securities Co. Ltd., Class H

    1,263,200       1,896,420  
Security   Shares     Value  

China (continued)

   

Haitian International Holdings Ltd.

    725,000     $ 1,931,617  

Haitong Securities Co. Ltd., Class H

    3,108,800       2,675,087  

Hengan International Group Co. Ltd.

    736,500       3,905,860  

Hesteel Co. Ltd., Class A

    737,700       300,767  

Hopson Development Holdings Ltd.(c)

    819,350       1,686,676  

Huabao International Holdings Ltd.

    1,046,000       600,098  

Huadian Power International Corp. Ltd., Class A

    453,200       309,779  

Huaxi Securities Co. Ltd., Class A

    184,700       260,733  

Huaxin Cement Co. Ltd., Class A

    94,000       305,841  

Hunan Valin Steel Co. Ltd., Class A

    468,420       433,491  

Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A

    568,700       447,630  

Inner Mongolia Yuan Xing Energy Co. Ltd., Class A(b)

    255,700       366,259  

Intco Medical Technology Co. Ltd., Class A

    37,350       302,913  

JDcom Inc, Class A(b)

    16,761       598,693  

Jiangsu Expressway Co. Ltd., Class H

    1,392,000       1,489,359  

Jiangxi Copper Co. Ltd., Class H

    1,268,000       2,282,400  

Kingboard Holdings Ltd.

    758,500       3,548,375  

Kingboard Laminates Holdings Ltd.

    1,067,000       1,777,992  

Kunlun Energy Co. Ltd.

    4,440,000       4,367,554  

Lee & Man Paper Manufacturing Ltd.

    1,476,000       948,854  

Lenovo Group Ltd.

    8,234,000       9,169,127  

Li Ning Co. Ltd.

    1,806,500       18,043,592  

Luxi Chemical Group Co. Ltd., Class A

    133,100       355,688  

Metallurgical Corp. of China Ltd., Class A

    1,218,800       790,489  

Nine Dragons Paper Holdings Ltd.

    1,876,000       1,797,146  

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

    38,933       1,104,140  

North Industries Group Red Arrow Co. Ltd., Class A(b)

    97,300       347,962  

Northeast Securities Co. Ltd., Class A

    154,800       203,185  

Pangang Group Vanadium Titanium & Resources Co. Ltd., Class A(b)

    598,400       400,678  

PetroChina Co. Ltd., Class H

        24,046,000             12,879,654  

PICC Property & Casualty Co. Ltd., Class H

    7,863,000       8,300,075  

Postal Savings Bank of China Co. Ltd., Class H(a)

    9,052,000       7,432,451  

Sailun Group Co. Ltd., Class A

    210,900       404,552  

Sany Heavy Equipment International Holdings Co. Ltd.

    1,256,000       1,302,468  

Shaanxi Coal Industry Co. Ltd., Class A

    664,800       1,501,955  

Shandong Buchang Pharmaceuticals Co. Ltd., Class A

    75,900       250,899  

Shandong Hualu Hengsheng Chemical Co. Ltd., Class A

    145,775       818,911  

Shandong Sun Paper Industry JSC Ltd., Class A

    183,300       357,841  

Shandong Weigao Group Medical Polymer Co. Ltd., Class H

    2,834,800       3,914,271  

Shanghai Baosight Software Co. Ltd., Class B

    441,041       1,904,659  

Shanghai International Port Group Co. Ltd., Class A

    642,300       581,419  

Shanghai Medicilon Inc., Class A

    4,289       263,982  

Shanghai Pharmaceuticals Holding Co. Ltd., Class H

    891,900       1,609,936  

Shanxi Coking Coal Energy Group Co. Ltd., Class A

    284,100       478,180  

Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A

    208,000       458,359  

Shanxi Taigang Stainless Steel Co. Ltd., Class A

    382,500       444,283  

Shenzhen International Holdings Ltd.

    1,423,000       1,466,233  

Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A(b)

    70,100       278,279  

Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A

    116,160       443,176  

Sichuan Hebang Biotechnology Co. Ltd., Class A(b)

    618,300       384,676  

Sinopharm Group Co. Ltd., Class H

    1,529,200       3,707,061  

Sinotrans Ltd., Class A

    292,300       199,416  

Sinotruk Hong Kong Ltd.

    791,500       1,181,446  

Sun Art Retail Group Ltd.

    1,568,000       565,706  

Tencent Holdings Ltd.

    366,300       19,766,028  

Tibet Summit Resources Co. Ltd., Class-A

    63,700       346,069  

 

 

30  

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


Schedule of Investments  (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Emerging Markets Multifactor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

China (continued)

   

Tingyi Cayman Islands Holding Corp.

    2,244,000     $ 4,964,630  

Titan Wind Energy Suzhou Co. Ltd., Class A

    125,300       414,113  

Uni-President China Holdings Ltd.

    1,480,000       1,539,014  

Vinda International Holdings Ltd.(c)

    413,000       1,175,908  

Vipshop Holdings Ltd., ADR(b)

    511,722       4,436,630  

Want Want China Holdings Ltd.

    5,455,000       5,806,987  

Westone Information Industry Inc., Class A

    58,200       426,073  

Wharf Holdings Ltd. (The)

    1,567,000       5,669,391  

Wuchan Zhongda Group Co. Ltd., Class A

    356,700       320,176  

Xiamen Faratronic Co. Ltd.

    15,500       525,938  

Xinjiang Zhongtai Chemical Co. Ltd., Class A

    166,000       285,391  

Yadea Group Holdings Ltd.(a)

    1,366,000       2,026,507  

Yankuang Energy Group Co Ltd, Class H

    1,732,000       4,246,554  

YongXing Special Materials Technology Co. Ltd., Class A

    28,000       663,928  

Youngor Group Co. Ltd., Class A

    310,600       333,616  

Yuexiu Property Co. Ltd.

    1,587,400       1,587,830  

Yum China Holdings Inc.

    144,295       7,506,226  

Zhejiang Expressway Co. Ltd., Class H

    1,634,000       1,474,044  

Zhejiang Semir Garment Co. Ltd., Class A

    182,900       205,448  

Zhejiang Weixing New Building Materials Co. Ltd., Class A

    110,700       407,736  

Zhongsheng Group Holdings Ltd.

    655,000       4,573,814  

Zhuzhou CRRC Times Electric Co. Ltd.

    623,800       3,251,571  

Zhuzhou Kibing Group Co. Ltd., Class A

    185,400       463,543  

Zibo Qixiang Tengda Chemical Co. Ltd., Class-A

    197,200       302,653  
   

 

 

 
      365,622,718  
Egypt — 0.1%            

Eastern Co. SAE

    1,153,966       797,798  
   

 

 

 
Hungary — 0.7%            

MOL Hungarian Oil & Gas PLC

    319,779       2,494,372  

Richter Gedeon Nyrt

    159,311       3,345,002  
   

 

 

 
      5,839,374  
India — 16.7%            

ACC Ltd.

    85,662       2,385,950  

Adani Enterprises Ltd.

    313,368       6,891,190  

Adani Total Gas Ltd.

    313,368       6,606,524  

Ambuja Cements Ltd.

    792,077       3,319,677  

Apollo Hospitals Enterprise Ltd.

    106,942       6,844,815  

Aurobindo Pharma Ltd.

    333,903       2,779,559  

Balkrishna Industries Ltd.

    99,147       2,410,925  

Cipla Ltd.

    551,614       6,789,288  

Colgate-Palmolive India Ltd.

    139,494       2,691,040  

Container Corp. of India Ltd.

    278,142       2,226,132  

Dr. Reddy’s Laboratories Ltd.

    132,732       7,166,609  

HCL Technologies Ltd.

        1,237,127           18,602,960  

HDFC Asset Management Co. Ltd.(a)

    60,864       1,692,447  

Hero MotoCorp Ltd.

    136,626       4,628,092  

Hindustan Petroleum Corp. Ltd.

    727,536       2,646,655  

Jubilant Foodworks Ltd.

    90,056       3,501,315  

Larsen & Toubro Infotech Ltd.(a)

    59,895       4,681,209  

Marico Ltd.

    588,375       4,028,062  

Mindtree Ltd.

    75,130       3,898,561  

Mphasis Ltd.

    96,072       3,991,339  

MRF Ltd.

    2,167       1,896,136  

NTPC Ltd.

    3,670,115       6,533,290  

Page Industries Ltd.

    6,365       3,582,818  

SRF Ltd.

    168,807       5,372,173  

Tata Steel Ltd.

    629,363       10,305,017  

Tech Mahindra Ltd.

    717,995       13,518,268  
Security   Shares     Value  

India (continued)

   

Vedanta Ltd.

    1,270,968     $ 6,468,824  

Wipro Ltd.

    468,905       3,467,433  
   

 

 

 
      148,926,308  
Indonesia — 0.9%            

Adaro Energy Tbk PT

    16,404,800       2,810,659  

Gudang Garam Tbk PT

    546,200       1,196,950  

Indofood Sukses Makmur Tbk PT

    5,005,000       2,164,805  

United Tractors Tbk PT

    1,169,500       2,040,759  
   

 

 

 
      8,213,173  
Kuwait — 0.6%            

Mobile Telecommunications Co. KSCP

    2,465,817       5,055,487  
   

 

 

 
Malaysia — 0.2%            

Sime Darby Bhd

    3,096,100       1,676,658  
   

 

 

 
Philippines — 0.5%            

Globe Telecom Inc.

    30,300       1,522,480  

PLDT Inc.

    86,225       3,025,527  
   

 

 

 
      4,548,007  
Poland — 0.6%            

Cyfrowy Polsat SA

    328,006       2,126,804  

Orange Polska SA(b)

    750,270       1,392,235  

PGE Polska Grupa Energetyczna SA(b)

    960,920       1,864,027  
   

 

 

 
      5,383,066  
Qatar — 1.0%            

Barwa Real Estate Co.

    1,072,983       1,067,334  

Commercial Bank PSQC (The)

    2,245,961       4,259,814  

Ooredoo QPSC

    910,318       1,914,319  

Qatar Electricity & Water Co. QSC

    303,212       1,497,068  
   

 

 

 
      8,738,535  
Russia — 0.4%            

Inter RAO UES PJSC(d)

        41,455,000       400,177  

PhosAgro PJSC, GDR

    153,986       942,071  

TCS Group Holding PLC, GDR(d)

    135,475       1,560,156  

United Co. RUSAL International
PJSC(b)(d)

    3,441,260       726,165  
   

 

 

 
      3,628,569  
Saudi Arabia — 5.6%            

Abdullah Al Othaim Markets Co.

    50,216       1,493,530  

Advanced Petrochemical Co.

    120,960       2,426,819  

Arab National Bank

    683,832       5,112,206  

Banque Saudi Fransi

    352,839       5,011,245  

Bupa Arabia for Cooperative Insurance Co.

    68,383       2,965,330  

Co for Cooperative Insurance (The)

    69,705       1,464,979  

Dr Sulaiman Al Habib Medical Services Group Co.

    59,846       2,736,745  

Jarir Marketing Co.

    67,016       3,741,826  

Mobile Telecommunications Co.(b)

    502,871       1,806,286  

Mouwasat Medical Services Co.

    55,846       3,097,889  

National Petrochemical Co.

    136,433       1,646,419  

SABIC Agri-Nutrients Co.

    244,146       10,402,540  

Saudi Cement Co.

    4,382       65,130  

Saudi Industrial Investment Group

    251,784       2,377,322  

Yanbu National Petrochemical Co.

    288,491       5,295,453  
   

 

 

 
            49,643,719  
South Africa — 2.7%            

Aspen Pharmacare Holdings Ltd.

    442,193       5,780,395  

Exxaro Resources Ltd.

    281,326       3,628,756  

Kumba Iron Ore Ltd.

    73,160       2,891,926  

Mr. Price Group Ltd.

    292,272       3,984,460  

Rand Merchant Investment Holdings Ltd.

    872,998       2,746,810  

 

 

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

  31


Schedule of Investments  (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Emerging Markets Multifactor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

South Africa (continued)

   

Reinet Investments SCA

    156,323     $ 3,222,584  

Tiger Brands Ltd.

    190,937       2,028,300  
   

 

 

 
      24,283,231  
South Korea — 10.2%            

BGF retail Co. Ltd.

    8,912       1,262,531  

Coway Co. Ltd.

    63,083       3,788,688  

DB Insurance Co. Ltd.

    52,450       2,695,895  

E-MART Inc.

    22,243       2,425,696  

F&F Co. Ltd./New(b)

    3,919       2,929,209  

GS Holdings Corp.

    53,053       1,774,042  

Hana Financial Group Inc.

    182,809       7,427,134  

Hankook Tire & Technology Co. Ltd.

    84,710       2,495,829  

Kia Corp.

    292,033             18,104,678  

Kumho Petrochemical Co. Ltd.(b)

    20,835       2,810,863  

LG Innotek Co. Ltd.

    16,184       4,467,636  

LG Uplus Corp.

    243,831       2,678,325  

POSCO

    84,463       20,095,753  

S-1 Corp.(c)

    19,355       1,126,719  

Samsung Electronics Co. Ltd.

    233,146       14,047,834  

SD Biosensor Inc.

    41,280       1,874,569  

SK Telecom Co. Ltd.

    29,792       1,359,501  
   

 

 

 
      91,364,902  
Taiwan — 14.7%            

Acer Inc.

    653,000       677,702  

Asustek Computer Inc.

    804,000       10,725,741  

AU Optronics Corp.

    9,324,000       6,980,662  

Catcher Technology Co. Ltd.

    551,000       2,828,178  

Compal Electronics Inc.

    4,773,000       4,348,258  

eMemory Technology Inc.

    74,000       4,994,057  

Innolux Corp.

        10,772,000       6,554,907  

Inventec Corp.

    2,970,000       2,742,794  

Lite-On Technology Corp.

    2,411,718       5,930,124  

momo.com Inc.

    52,000       1,851,150  

Nien Made Enterprise Co. Ltd.

    183,000       2,372,368  

Pegatron Corp.

    2,283,000       5,658,545  

Pou Chen Corp.

    2,687,000       3,098,682  

Synnex Technology International Corp.

    1,521,000       3,937,818  

Taiwan Semiconductor Manufacturing Co. Ltd.

    1,969,000       42,332,626  

United Microelectronics Corp.

    9,495,000       17,891,914  

Wan Hai Lines Ltd.

    695,100       4,734,643  

WPG Holdings Ltd.

    1,818,160       3,628,518  
   

 

 

 
      131,288,687  
Thailand — 0.5%            

Krung Thai Bank PCL, NVDR

    3,972,700       1,709,166  

Srisawad Corp. PCL, NVDR(c)

    430,100       763,566  
Security   Shares     Value  

 

 

Thailand (continued)

   

Thai Union Group PCL, NVDR

    3,265,900     $ 2,039,001  
   

 

 

 
      4,511,733  

United Arab Emirates — 1.0%

   

Abu Dhabi Islamic Bank PJSC

    1,655,784       3,994,634  

Aldar Properties PJSC

    4,390,984       5,018,275  
   

 

 

 
      9,012,909  
   

 

 

 

Total Common Stocks — 98.9%
(Cost: $793,302,178)

      883,285,207  
   

 

 

 

Preferred Stocks

   

Brazil — 0.6%

   

Itausa SA, Preference Shares, NVS

    3,022,960       5,854,317  
   

 

 

 

Total Preferred Stocks — 0.6%
(Cost: $5,750,334)

      5,854,317  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 0.5%

   

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

    1,315,366       1,315,629  

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

    2,860,000       2,860,000  
   

 

 

 
      4,175,629  
   

 

 

 

Total Short-Term Investments — 0.5%
(Cost: $4,175,051)

      4,175,629  
   

 

 

 

Total Investments in Securities — 100.0%
(Cost: $803,227,563)

      893,315,153  

Other Assets, Less Liabilities — (0.0)%

      (280,220
   

 

 

 

Net Assets — 100.0%

    $   893,034,933  
   

 

 

 

 

(a) 

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

(b) 

Non-income producing security.

(c) 

All or a portion of this security is on loan.

(d) 

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

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

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

 

 

32  

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


Schedule of Investments  (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Emerging Markets Multifactor  ETF

 

Affiliates

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

 

 

 

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

Capital

Gain
Distributions
from
Underlying
Funds

        
 

 

   
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 8,548,912     $     $ (7,231,927 )(a)    $ (470   $ (886   $ 1,315,629       1,315,366     $ 30,112 (b)    $    
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    2,300,000       560,000 (a)                        2,860,000       2,860,000       163          
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   
          $ (470   $ (886   $ 4,175,629       $ 30,275     $    
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 

Long Contracts

           

MSCI Emerging Markets Index

     68        03/18/22      $ 3,997      $ (142,620
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
     Equity
Contracts
 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 142,620  
  

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

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

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ (121,309
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (142,620
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 2,362,688    

 

 

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

 

 

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

  33


Schedule of Investments  (unaudited) (continued)

February 28, 2022

   iShares® MSCI Emerging Markets Multifactor 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

   $   73,586,933      $ 807,011,776      $   2,686,498      $ 883,285,207  

Preferred Stocks

            5,854,317               5,854,317  

Money Market Funds

     4,175,629                      4,175,629  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 77,762,562      $ 812,866,093      $ 2,686,498      $ 893,315,153  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Liabilities

           

Futures Contracts

   $ (142,620    $      $      $ (142,620
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

34  

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


Schedule of Investments  (unaudited)

February 28, 2022

  

iShares® MSCI Global Min Vol Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Belgium — 0.2%

   

Etablissements Franz Colruyt NV

    87,235     $ 3,489,127  

Proximus SADP

    237,566       4,722,878  
   

 

 

 
      8,212,005  

Canada — 2.3%

   

Agnico Eagle Mines Ltd.

    48,846       2,467,542  

BCE Inc.

    116,409       6,113,883  

CGI Inc.(a)

    170,929       14,014,155  

Franco-Nevada Corp.

    295,531       43,521,749  

Loblaw Companies Ltd.

    149,616       11,670,638  

Metro Inc.

    113,959       5,948,345  

TELUS Corp.

    690,796       17,445,665  

Thomson Reuters Corp.

    27,120       2,742,169  

Waste Connections Inc.

    116,984       14,446,354  
   

 

 

 
          118,370,500  

China — 4.3%

   

Agricultural Bank of China Ltd., Class A

    7,174,699       3,389,594  

Agricultural Bank of China Ltd., Class H

    6,648,000       2,517,724  

Alibaba Group Holding Ltd.(a)

    162,148       2,134,496  

Bank of China Ltd., Class H

    37,014,000       14,409,613  

Bank of Communications Co. Ltd., Class H

    5,623,000       3,854,731  

BeiGene Ltd., ADR(a)

    7,417       1,561,427  

Beijing-Shanghai High Speed Railway Co. Ltd., Class A

    3,914,600       3,207,105  

China Conch Venture Holdings Ltd.

    1,851,500       8,909,859  

China Construction Bank Corp., Class H

    14,556,000       10,916,484  

China Feihe Ltd.(b)

    1,729,000       2,063,146  

China Huishan Dairy Holdings Co. Ltd.(a)(c)

    2,093,055       3  

China Meidong Auto Holdings Ltd.

    564,000       2,655,587  

China Merchants Bank Co. Ltd., Class A

    1,124,000       8,884,911  

China Resources Gas Group Ltd.

    1,272,000       5,842,282  

China State Construction Engineering Corp. Ltd., Class A

    3,882,400       3,136,380  

China Tourism Group Duty Free Corp. Ltd., Class A

    187,300       6,049,582  

China Tower Corp. Ltd., Class H(b)

    64,960,000       7,571,316  

China Yangtze Power Co. Ltd., Class A

    2,128,900       7,832,464  

Chongqing Zhifei Biological Products Co. Ltd., Class A

    153,900       3,149,726  

CITIC Securities Co. Ltd., Class A

    988,408       3,663,169  

COSCO SHIPPING Holdings Co. Ltd., Class A(a)

    1,203,150       3,378,176  

Country Garden Services Holdings Co. Ltd.

    543,000       3,248,203  

East Money Information Co. Ltd., Class A

    986,500       4,204,731  

Guangdong Investment Ltd.

    2,063,147       2,776,366  

Hansoh Pharmaceutical Group Co. Ltd.(b)

    1,904,000       4,064,457  

I-Mab, ADR(a)

    49,332       1,219,487  

Industrial & Commercial Bank of China Ltd., Class A

    6,015,151       4,443,792  

Industrial & Commercial Bank of China Ltd., Class H

    17,682,000       10,555,359  

JDcom Inc, Class A(a)

    8,928       318,903  

Jiangsu Hengrui Medicine Co. Ltd., Class A

    615,540       3,920,050  

LONGi Green Energy Technology Co. Ltd., Class A

    268,380       3,340,660  

Luxshare Precision Industry Co. Ltd., Class A

    424,200       2,941,862  

NAURA Technology Group Co. Ltd., Class A

    48,200       2,336,540  

Ping An Bank Co. Ltd., Class A

    1,868,400       4,675,343  

Postal Savings Bank of China Co. Ltd., Class H(b)

    12,258,000       10,064,846  

SF Holding Co. Ltd., Class A

    405,000       3,885,767  

Shanghai Pudong Development Bank Co. Ltd., Class A

    2,716,800       3,616,277  

Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A

    116,800       6,073,693  

Tencent Holdings Ltd.

    187,200       10,101,557  

Will Semiconductor Co. Ltd. Shanghai, Class A

    83,300       3,268,927  

WuXi AppTec Co. Ltd., Class A

    183,804       3,042,375  
Security   Shares     Value  

China (continued)

   

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

    495,500     $ 4,098,487  

Xiaomi Corp., Class B(a)(b)

    4,787,800       9,011,679  

Yadea Group Holdings Ltd.(b)

    1,560,000       2,314,312  

Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A

    57,200       3,292,938  

ZTO Express Cayman Inc., ADR

    401,634       11,824,105  
   

 

 

 
      223,768,491  

Denmark — 1.6%

   

Coloplast A/S, Class B

    183,718       27,638,179  

Novo Nordisk A/S, Class B

    509,843       52,760,289  

Tryg A/S

    212,877       4,816,513  
   

 

 

 
      85,214,981  

Finland — 0.2%

   

Elisa Oyj

    225,276       12,481,898  
   

 

 

 

France — 0.8%

   

Eurofins Scientific SE

    22,369       2,269,958  

Hermes International

    16,385       22,595,515  

Orange SA

    1,512,720       18,291,344  
   

 

 

 
      43,156,817  

Germany — 0.8%

   

Deutsche Telekom AG, Registered

    1,762,597       31,593,973  

Symrise AG

    49,265       5,859,902  

Telefonica Deutschland Holding AG

    1,611,810       4,398,379  
   

 

 

 
      41,852,254  

Hong Kong — 2.2%

   

CLP Holdings Ltd.

    1,587,754       16,174,907  

Hang Seng Bank Ltd.

    1,180,200       21,764,173  

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

    4,251,500       4,194,593  

HKT Trust & HKT Ltd., Class SS

    6,089,000       8,212,584  

Hong Kong & China Gas Co. Ltd.

    13,310,579       20,128,874  

Jardine Matheson Holdings Ltd.

    221,000       13,149,500  

Link REIT

    1,449,700       11,714,734  

MTR Corp. Ltd.(d)

    2,386,500       12,370,427  

Power Assets Holdings Ltd.

    1,088,000       6,857,149  
   

 

 

 
          114,566,941  

India — 3.9%

   

ACC Ltd.

    119,771       3,335,991  

Adani Green Energy Ltd.(a)

    210,079       5,169,427  

Adani Total Gas Ltd.

    203,546       4,291,222  

Adani Transmission Ltd.(a)

    130,166       3,709,294  

Ambuja Cements Ltd.

    1,117,031       4,681,593  

Asian Paints Ltd.

    455,616       19,254,839  

Avenue Supermarts Ltd.(a)(b)

    130,488       7,549,295  

Bajaj Auto Ltd.

    72,358       3,404,996  

Berger Paints India Ltd.

    374,546       3,439,963  

Bharat Petroleum Corp. Ltd.

    690,221       3,219,497  

Dabur India Ltd.

    852,469       6,391,328  

Dr. Reddy’s Laboratories Ltd.

    65,116       3,515,813  

Eicher Motors Ltd.

    191,643       6,619,436  

HCL Technologies Ltd.

    952,296       14,319,892  

HDFC Asset Management Co. Ltd.(b)

    89,184       2,479,941  

Hero MotoCorp Ltd.

    81,429       2,758,339  

Hindustan Petroleum Corp. Ltd.

    985,591       3,585,417  

Hindustan Unilever Ltd.

    167,890       4,855,096  

Indian Oil Corp. Ltd.

    3,022,910       4,639,842  

Infosys Ltd.

    545,440       12,430,505  

Larsen & Toubro Infotech Ltd.(b)

    52,872       4,132,313  

 

 

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

  35


Schedule of Investments  (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Global Min Vol Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

India (continued)

   

Larsen & Toubro Ltd.

    213,618     $ 5,178,674  

Maruti Suzuki India Ltd.

    40,471       4,485,545  

MRF Ltd.

    2,605       2,279,388  

Petronet LNG Ltd.

    1,195,746       3,431,203  

PI Industries Ltd.

    126,450       4,161,649  

Pidilite Industries Ltd.

    235,135       7,527,065  

SBI Cards & Payment Services Ltd.(a)

    195,957       2,054,604  

Shree Cement Ltd.

    11,346       3,693,741  

Sun Pharmaceutical Industries Ltd.

    434,932       4,885,777  

Tata Consultancy Services Ltd.

    254,673       12,064,299  

Tech Mahindra Ltd.

    389,647       7,336,196  

UltraTech Cement Ltd.

    79,492       6,957,280  

Wipro Ltd.

    591,633       4,374,976  

Wipro Ltd., ADR

    1,048,139       7,640,933  

Yes Bank Ltd.(a)

    16,352,348       2,888,842  
   

 

 

 
          202,744,211  

Ireland — 0.3%

   

Kerry Group PLC, Class A

    142,614       16,990,906  
   

 

 

 

Israel — 0.6%

   

Azrieli Group Ltd.

    27,848       2,375,766  

Bank Hapoalim BM

    443,769       4,703,280  

Bank Leumi Le-Israel BM

    638,078       6,912,248  

Check Point Software Technologies Ltd.(a)

    74,315       10,766,757  

Isracard Ltd.

          1  

Nice Ltd.(a)

    21,867       4,946,492  
   

 

 

 
      29,704,544  

Italy — 0.3%

   

DiaSorin SpA

    38,836       5,811,977  

Ferrari NV

    10,306       2,214,639  

Infrastrutture Wireless Italiane SpA(b)

    534,844       5,461,458  

Recordati Industria Chimica e Farmaceutica SpA

    93,869       4,591,271  
   

 

 

 
      18,079,345  

Japan — 10.2%

   

Ajinomoto Co. Inc.

    90,500       2,637,261  

Asahi Intecc Co. Ltd.

    111,500       2,407,655  

Canon Inc.

    1,038,200       24,431,902  

Capcom Co. Ltd.

    99,400       2,412,520  

Chubu Electric Power Co. Inc.

    388,000       3,875,601  

Chugai Pharmaceutical Co. Ltd.

    581,100       19,277,191  

CyberAgent Inc.

    276,800       3,622,109  

East Japan Railway Co.

    74,200       4,408,129  

FUJIFILM Holdings Corp.

    184,100       11,702,154  

Hamamatsu Photonics KK

    216,300       10,960,230  

Hankyu Hanshin Holdings Inc.

    88,400       2,644,667  

Hirose Electric Co. Ltd.

    51,100       7,683,533  

Itochu Techno-Solutions Corp.

    83,600       2,167,199  

Japan Post Bank Co. Ltd.

    648,800       5,692,783  

KDDI Corp.

    571,700       18,603,827  

Keio Corp.

    125,400       5,130,997  

Keyence Corp.

    55,600       26,298,835  

Kintetsu Group Holdings Co. Ltd.(a)

    176,500       5,302,469  

Kirin Holdings Co. Ltd.

    165,000       2,743,200  

Koei Tecmo Holdings Co. Ltd.

    94,800       3,291,983  

Lawson Inc.

    79,600       3,318,979  

McDonald’s Holdings Co. Japan Ltd.

    123,700       5,318,885  

MEIJI Holdings Co. Ltd.

    103,700       6,223,864  

Mizuho Financial Group Inc.

    1,017,700       13,412,393  

MonotaRO Co. Ltd.

    401,800       7,563,080  
Security   Shares     Value  

Japan (continued)

   

NEC Corp.

    140,000     $ 6,057,187  

Nexon Co. Ltd.

    310,800       6,790,150  

Nintendo Co. Ltd.

    38,800       19,650,330  

Nippon Paint Holdings Co. Ltd.

    240,400       2,151,602  

Nippon Prologis REIT Inc.

    3,184       9,361,120  

Nippon Telegraph & Telephone Corp.

    1,116,200       32,080,579  

Nissin Foods Holdings Co. Ltd.

    36,900       2,948,205  

Nitori Holdings Co. Ltd.

    111,300       16,748,216  

Nomura Research Institute Ltd.

    143,690       5,043,918  

NTT Data Corp.

    690,000       13,105,940  

Obic Co. Ltd.

    95,100       15,295,313  

Odakyu Electric Railway Co. Ltd.

    134,700       2,222,346  

Ono Pharmaceutical Co. Ltd.

    127,400       3,136,587  

Oracle Corp. Japan

    61,600       4,399,819  

Oriental Land Co. Ltd./Japan

    160,200       29,615,334  

Otsuka Corp.

    71,600       2,781,196  

Pan Pacific International Holdings Corp.

    542,900       8,886,211  

Rinnai Corp.

    57,900       4,763,243  

Secom Co. Ltd.

    297,400       21,842,952  

Seven & i Holdings Co. Ltd.

    76,900       3,741,779  

SG Holdings Co. Ltd.

    290,500       6,157,199  

Shimano Inc.

    55,800       12,994,021  

Shionogi & Co. Ltd.

    48,629       3,233,457  

SoftBank Corp.

    3,392,600       42,863,408  

Sohgo Security Services Co. Ltd.

    110,100       3,975,068  

Suntory Beverage & Food Ltd.

    222,800       8,878,377  

Sysmex Corp.

    146,500       11,727,397  

Tobu Railway Co. Ltd.

    302,200       7,428,252  

Toho Co. Ltd./Tokyo

    158,300       6,601,964  

Toyo Suisan Kaisha Ltd.

    142,400       5,986,051  

Tsuruha Holdings Inc.

    60,900       4,896,042  

USS Co. Ltd.

    173,900       2,888,840  

Welcia Holdings Co. Ltd.

    154,700       4,125,415  
   

 

 

 
          533,508,964  

Kuwait — 0.2%

   

Mobile Telecommunications Co. KSCP

    3,481,486       7,137,840  

National Bank of Kuwait SAKP

    1,425,988       4,998,747  
   

 

 

 
      12,136,587  

Malaysia — 0.5%

   

DiGi.Com Bhd

    2,723,400       2,632,859  

Hong Leong Bank Bhd

    1,047,000       5,012,473  

IHH Healthcare Bhd

    1,995,100       3,130,063  

Malayan Banking Bhd

    2,976,500       6,219,271  

Maxis Bhd

    3,137,100       3,007,660  

Petronas Chemicals Group Bhd

    1,367,200       3,109,863  

Petronas Gas Bhd

    689,600       2,862,805  
   

 

 

 
      25,974,994  

Netherlands — 0.6%

   

Koninklijke Ahold Delhaize NV

    610,297       18,774,104  

Koninklijke KPN NV

    1,732,702       5,929,536  

QIAGEN NV(a)

    90,234       4,533,571  
   

 

 

 
      29,237,211  

New Zealand — 0.2%

   

Fisher & Paykel Healthcare Corp. Ltd.

    137,876       2,590,967  

Spark New Zealand Ltd.

    1,802,898       5,535,438  
   

 

 

 
      8,126,405  

Norway — 0.0%

   

Telenor ASA

    175,832       2,601,542  
   

 

 

 

 

 

36  

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


Schedule of Investments  (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Global Min Vol Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Peru — 0.1%

   

Credicorp Ltd.

    22,559     $ 3,412,049  
   

 

 

 

Philippines — 0.2%

   

BDO Unibank Inc.

    2,683,349       6,800,048  

Globe Telecom Inc.

    39,640       1,991,785  

PLDT Inc.

    121,090       4,248,897  
   

 

 

 
      13,040,730  

Qatar — 0.3%

   

Qatar Islamic Bank SAQ

    548,947       3,172,122  

Qatar National Bank QPSC

    2,006,735       12,013,313  
   

 

 

 
      15,185,435  

Russia — 0.1%

   

PhosAgro PJSC, GDR

    126,400       773,302  

Polymetal International PLC(c)

    250,942       761,063  

Polyus PJSC(c)

    53,523       2,016,654  
   

 

 

 
      3,551,019  

Saudi Arabia — 1.3%

   

Alinma Bank

    1,557,630           14,769,554  

Bank AlBilad(a)

    384,691       6,054,115  

Jarir Marketing Co.

    94,161       5,257,462  

SABIC Agri-Nutrients Co.

    306,103       13,042,395  

Saudi Arabian Oil Co.(b)

    556,901       6,178,541  

Saudi Basic Industries Corp.

    120,680       4,023,147  

Saudi Telecom Co.

    632,750       19,306,002  
   

 

 

 
      68,631,216  

Singapore — 0.6%

   

Oversea-Chinese Banking Corp. Ltd.(d)

    513,700       4,451,426  

Singapore Exchange Ltd.

    1,183,200       8,208,789  

Singapore Telecommunications Ltd.

    10,181,500       19,098,232  
   

 

 

 
      31,758,447  

Sweden — 0.2%

   

Telefonaktiebolaget LM Ericsson, Class B

    727,627       6,695,547  

Telia Co. AB

    725,681       2,698,207  
   

 

 

 
      9,393,754  

Switzerland — 6.1%

   

EMS-Chemie Holding AG, Registered

    10,820       10,702,395  

Givaudan SA, Registered

    8,720       36,409,541  

Kuehne + Nagel International AG, Registered

    84,031       22,916,525  

Logitech International SA, Registered

    214,770       16,071,000  

Nestle SA, Registered

    542,904       70,738,067  

Novartis AG, Registered

    277,673       24,405,068  

Roche Holding AG, Bearer

    24,185       10,095,039  

Roche Holding AG, NVS

    205,174       77,706,230  

Schindler Holding AG, Registered

    32,356       7,252,642  

SGS SA, Registered

    3,019       8,638,415  

Swiss Prime Site AG, Registered

    83,275       8,160,406  

Swisscom AG, Registered

    40,305       24,143,183  
   

 

 

 
      317,238,511  

Taiwan — 4.9%

   

Acer Inc.

    4,183,000       4,341,236  

Advantech Co. Ltd.

    595,482       7,841,609  

Asia Cement Corp.

    3,373,000       5,451,632  

Asustek Computer Inc.

    1,088,000       14,514,436  

Chang Hwa Commercial Bank Ltd.

    6,720,345       4,266,641  

China Development Financial Holding Corp.

    20,780,000       14,230,446  

China Steel Corp.

    7,877,000       10,242,892  

Chunghwa Telecom Co. Ltd.

    5,896,000       26,205,460  

Compal Electronics Inc.

    6,732,000       6,132,929  
Security   Shares     Value  

Taiwan (continued)

   

CTBC Financial Holding Co. Ltd.

    3,829,000     $ 3,742,761  

E.Sun Financial Holding Co Ltd.

    9,496,377       10,038,171  

Far EasTone Telecommunications Co. Ltd.

    2,568,000       6,351,515  

First Financial Holding Co. Ltd.

    15,993,644       14,725,947  

Formosa Petrochemical Corp.

    811,000       2,852,760  

Hua Nan Financial Holdings Co. Ltd.

    13,222,932       10,484,860  

Inventec Corp.

    4,149,000       3,831,600  

Lite-On Technology Corp.

    3,390,000       8,335,601  

Mega Financial Holding Co. Ltd.

    16,775,000       22,606,005  

Nan Ya Plastics Corp.

    1,065,000       3,359,010  

Novatek Microelectronics Corp.

    308,000       5,106,167  

President Chain Store Corp.

    628,000       5,868,352  

Quanta Computer Inc.

    4,044,000       13,522,717  

Synnex Technology International Corp.

    2,136,250       5,530,680  

Taishin Financial Holding Co. Ltd.

    9,803,694       6,870,676  

Taiwan Cooperative Financial Holding Co. Ltd.

    14,679,457       13,926,161  

Taiwan Mobile Co. Ltd.

    2,542,000       9,400,038  

Taiwan Semiconductor Manufacturing Co. Ltd.

    564,000       12,125,750  

WPG Holdings Ltd.

    2,561,760       5,112,527  
   

 

 

 
          257,018,579  

Thailand — 0.5%

   

Advanced Info Service PCL, NVDR

    1,834,200       12,911,514  

Bangkok Dusit Medical Services PCL, NVDR

    7,567,400       5,501,977  

Bumrungrad Hospital PCL, NVDR

    700,100       3,299,083  

Home Product Center PCL, NVDR

    7,717,100       3,613,753  
   

 

 

 
      25,326,327  

United Arab Emirates — 0.5%

   

Abu Dhabi National Oil Co. for Distribution PJSC

    2,786,367       3,128,350  

Emirates Telecommunications Group Co. PJSC

    2,178,904       20,809,468  
   

 

 

 
      23,937,818  

United Kingdom — 0.1%

   

AstraZeneca PLC

    34,218       4,159,072  
   

 

 

 

United States — 55.6%

   

Abbott Laboratories

    94,668       11,418,854  

Accenture PLC, Class A

    39,474       12,474,573  

Activision Blizzard Inc.

    364,918       29,740,817  

Adobe Inc.(a)

    35,930       16,803,742  

Akamai Technologies Inc.(a)

    166,995       18,078,879  

Alphabet Inc., Class C, NVS(a)

    6,220       16,780,440  

Amazon.com Inc.(a)

    9,649       29,634,588  

Ameren Corp.

    65,741       5,650,439  

American Electric Power Co. Inc.

    188,948       17,128,136  

American Tower Corp.

    22,660       5,140,874  

American Water Works Co. Inc.

    98,002       14,807,122  

Amgen Inc.

    31,284       7,085,200  

Amphenol Corp., Class A

    206,370       15,686,184  

Aon PLC, Class A

    51,798       15,132,268  

Arista Networks Inc.(a)

    28,757       3,529,347  

Arthur J Gallagher & Co.

    61,659       9,753,837  

AT&T Inc.

    642,206       15,213,860  

Automatic Data Processing Inc.

    97,582       19,949,664  

AutoZone Inc.(a)

    13,493       25,142,721  

Baxter International Inc.

    162,686       13,823,429  

Becton Dickinson and Co.

    61,367       16,647,640  

Berkshire Hathaway Inc., Class B(a)

    95,474       30,690,117  

BioMarin Pharmaceutical Inc.(a)(d)

    158,971       12,418,814  

Bio-Rad Laboratories Inc., Class A(a)

    6,187       3,872,815  

Black Knight Inc.(a)

    241,944       13,594,833  

 

 

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

  37


Schedule of Investments  (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Global Min Vol Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

United States (continued)

   

Booz Allen Hamilton Holding Corp.

    133,558     $ 10,776,795  

Bristol-Myers Squibb Co.

    100,956       6,932,649  

Broadridge Financial Solutions Inc.

    122,149       17,859,405  

Brown & Brown Inc.

    225,621       15,254,236  

Campbell Soup Co.

    156,501       7,037,850  

Cboe Global Markets Inc.

    121,342       14,232,203  

CH Robinson Worldwide Inc.

    203,423       19,666,936  

Charter Communications Inc., Class A(a)

    20,819       12,528,458  

Church & Dwight Co. Inc.

    213,481       20,889,116  

Cisco Systems Inc.

    698,474       38,953,895  

Citrix Systems Inc.

    191,616       19,640,640  

Clorox Co. (The)

    137,828       20,093,944  

CME Group Inc.

    77,733       18,386,186  

CMS Energy Corp.

    132,669       8,492,143  

Cognizant Technology Solutions Corp., Class A

    43,938       3,784,380  

Colgate-Palmolive Co.

    172,650       13,285,417  

Comcast Corp., Class A

    297,150       13,894,734  

Consolidated Edison Inc.

    546,467       46,870,475  

Cooper Companies Inc. (The)

    11,539       4,719,682  

Costco Wholesale Corp.

    26,678       13,852,551  

Crown Castle International Corp.

    97,599       16,259,017  

Danaher Corp.

    75,351       20,677,068  

Dollar General Corp.

    200,393       39,745,948  

Dominion Energy Inc.

    339,008       26,961,306  

Domino’s Pizza Inc.

    44,337       19,162,895  

Duke Energy Corp.

    401,398       40,304,373  

Electronic Arts Inc.

    210,501       27,384,075  

Eli Lilly & Co.

    131,723       32,924,164  

Erie Indemnity Co., Class A, NVS

    39,175       6,859,542  

Evergy Inc.

    56,939       3,553,563  

Eversource Energy

    94,727       7,748,669  

Expeditors International of Washington Inc.

    262,719       27,154,636  

F5 Inc.(a)

    38,669       7,766,669  

Fidelity National Information Services Inc.

    75,478       7,187,770  

Fiserv Inc.(a)(d)

    139,351       13,610,412  

General Mills Inc.

    178,192       12,015,487  

Genuine Parts Co.

    19,968       2,439,291  

Gilead Sciences Inc.

    746,797       45,106,539  

Henry Schein Inc.(a)(d)

    46,340       4,002,849  

Hershey Co. (The)

    199,915           40,434,808  

Home Depot Inc. (The)

    63,879       20,174,905  

Horizon Therapeutics PLC(a)

    88,298       8,050,129  

Hormel Foods Corp.

    460,457       21,936,171  

Humana Inc.

    14,871       6,458,773  

Incyte Corp.(a)

    236,900       16,180,270  

Intel Corp.

    54,717       2,610,001  

Intercontinental Exchange Inc.

    70,648       9,051,422  

International Business Machines Corp.

    39,659       4,858,624  

Intuit Inc.

    21,227       10,069,452  

Jack Henry & Associates Inc.

    114,336       20,214,605  

JM Smucker Co. (The)

    84,410       11,374,247  

Johnson & Johnson

    308,284       50,734,298  

Juniper Networks Inc.

    114,332       3,863,278  

Kellogg Co.

    296,670       18,969,080  

Keysight Technologies Inc.(a)

    284,540       44,778,060  

Kimberly-Clark Corp.

    126,058       16,406,449  

Kroger Co. (The)

    1,097,751       51,374,747  

Liberty Broadband Corp., Class C, NVS(a)

    188,278       27,620,383  

MarketAxess Holdings Inc.

    12,298       4,690,826  

Marsh & McLennan Companies Inc.

    219,817       34,161,760  
Security   Shares     Value  

United States (continued)

   

Masimo Corp.(a)

    15,501     $ 2,440,632  

Mastercard Inc., Class A

    42,654       15,390,416  

McCormick & Co. Inc./MD, NVS

    248,623       23,661,451  

McDonald’s Corp.

    188,410       46,117,116  

Medtronic PLC

    138,376       14,528,096  

Merck & Co. Inc.

    693,010       53,070,706  

Microsoft Corp.

    73,999       22,110,161  

Mondelez International Inc., Class A

    91,376       5,983,300  

Motorola Solutions Inc.

    212,948       46,940,128  

Netflix Inc.(a)

    40,307       15,901,918  

Neurocrine Biosciences Inc.(a)

    93,822       8,431,783  

Newmont Corp.

    1,002,949       66,395,224  

NextEra Energy Inc.

    672,796       52,659,743  

Old Dominion Freight Line Inc.

    11,323       3,555,762  

Oracle Corp.

    176,910       13,439,853  

O’Reilly Automotive Inc.(a)

    25,288       16,417,981  

Palo Alto Networks Inc.(a)(d)

    5,221       3,102,579  

Paychex Inc.

    377,676       44,966,105  

PepsiCo Inc.

    360,159       58,972,435  

Pfizer Inc.

    453,419       21,283,488  

Pool Corp.

    9,200       4,218,936  

Procter & Gamble Co. (The)

    269,877       42,071,126  

Progressive Corp. (The)

    171,908       18,210,214  

Public Storage

    143,176       50,830,343  

Regeneron Pharmaceuticals Inc.(a)

    104,188       64,425,692  

Republic Services Inc.

    344,623       41,451,254  

Rollins Inc.

    233,197       7,609,218  

SBA Communications Corp.

    9,570       2,903,442  

Seagen Inc.(a)

    136,586       17,601,838  

Southern Co. (The)

    509,122       32,975,832  

Starbucks Corp.

    97,702       8,968,067  

Take-Two Interactive Software Inc.(a)

    125,417       20,317,554  

Target Corp.

    134,198       26,808,734  

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

    306,867       37,809,083  

Tradeweb Markets Inc., Class A

    91,398       7,721,303  

Tyler Technologies Inc.(a)(d)

    63,166       27,051,471  

United Parcel Service Inc., Class B

    13,239       2,785,750  

UnitedHealth Group Inc.

    30,942       14,724,370  

VeriSign Inc.(a)

    118,380       25,300,174  

Verizon Communications Inc.

    1,593,990       85,549,443  

Vertex Pharmaceuticals Inc.(a)

    179,937       41,389,109  

Visa Inc., Class A

    240,641       52,007,333  

Walmart Inc.

    397,893       53,779,218  

Walt Disney Co. (The)(a)

    54,788       8,133,826  

Waste Management Inc.

    484,742       69,996,745  

WEC Energy Group Inc.

    415,005       37,715,654  

West Pharmaceutical Services Inc.

    57,140       22,117,751  

Western Union Co. (The)

    628,328       11,423,003  

Xcel Energy Inc.

    579,411       39,011,743  

Zoom Video Communications Inc.,
Class A(a)

    21,634       2,868,668  
   

 

 

 
          2,905,373,220  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $4,448,390,934)

      5,204,754,773  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 0.4%

   

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

    11,396,338       11,398,617  

 

 

38  

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


Schedule of Investments  (unaudited) (continued)

February 28, 2022

  

iShares® MSCI Global Min Vol Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Money Market Funds (continued)

   

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

    9,430,000     $ 9,430,000  
   

 

 

 
      20,828,617  
   

 

 

 

Total Short-Term Investments — 0.4%
(Cost: $20,826,323)

      20,828,617  
   

 

 

 

Total Investments in Securities — 100.1%
(Cost: $4,469,217,257)

      5,225,583,390  

Other Assets, Less Liabilities — (0.1)%

      (2,643,592
   

 

 

 

Net Assets — 100.0%

    $  5,222,939,798  
   

 

 

 

(a)   Non-income producing security.

   

 

(b) 

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

(c) 

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

(d) 

All or a portion of this security is on loan.

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

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

 

Affiliates

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

 

 

 

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

Capital

Gain
Distributions
from
Underlying
Funds

      
 

 

   
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 8,628,779     $ 2,774,264 (a)    $     $ 1,965     $ (6,391   $ 11,398,617       11,396,338     $ 21,164 (b)    $    
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    9,940,000             (510,000 )(a)                  9,430,000       9,430,000       539          
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   
          $ 1,965     $ (6,391   $ 20,828,617       $ 21,703     $    
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 

Long Contracts

           

MSCI EAFE Index

     34        03/18/22      $ 3,672      $ (147,576

MSCI Emerging Markets Index

     30        03/18/22        1,763        (58,062

S&P 500 E-Mini Index

     33        03/18/22        7,207        (242,070

U.S. 2 Year Treasury Note

     8        06/30/22        1,721        2,677  
           

 

 

 
            $ (445,031
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
            Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments

     

Futures contracts

     

Unrealized appreciation on futures contracts(a)

      $ 2,677  
     

 

 

 

 

 

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

  39


Schedule of Investments  (unaudited) (continued)

February 28, 2022

   iShares® MSCI Global Min Vol Factor ETF

 

Derivative Financial Instruments Categorized by Risk Exposure (continued)

 

 

 
    

Equity

Contracts

 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 447,708  
  

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

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

 

 

 
    

Equity

Contracts

    

Interest

Rate

Contracts

     Total  

 

 

Net Realized Gain (Loss) from:

        

Futures contracts

   $ 372,472      $ (21,083    $ 351,389  
  

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

        

Futures contracts

   $ (862,718    $ (1,312    $ (864,030
  

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

  

Average notional value of contracts — long

   $ 14,969,112  

Average notional value of contracts — short

   $ (437,469

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Investments

                 

Assets

                 

Common Stocks

   $ 3,104,470,287        $ 2,097,506,766        $ 2,777,720        $ 5,204,754,773  

Money Market Funds

     20,828,617                            20,828,617  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 3,125,298,904        $ 2,097,506,766        $     2,777,720        $ 5,225,583,390  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 2,677        $        $        $ 2,677  

Liabilities

                 

Futures Contracts

     (447,708                          (447,708
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ (445,031      $        $        $ (445,031
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

40  

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


Statements of Assets and Liabilities (unaudited) 

February 28, 2022

 

   

iShares

ESG Aware MSCI

EM ETF

   

iShares

MSCI Emerging

Markets ex China

ETF

   

iShares

MSCI Emerging

Markets Min Vol

Factor ETF

   

iShares

MSCI

Emerging

Markets

Multifactor

ETF

 

 

 

ASSETS

       

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

       

Unaffiliated(b)

  $ 6,489,814,928     $ 2,379,782,058     $ 3,715,129,338     $ 889,139,524  

Affiliated(c)

    25,574,188       17,389,937       49,181,558       4,175,629  

Cash

    72,210,235             3,390       835,380  

Foreign currency, at value(d)

    55,773,404       1,578,194       10,086,786       1,076,146  

Cash pledged:

       

Futures contracts

    2,210,000       312,000       493,000       195,000  

Receivables:

       

Investments sold

    274,794,597       18,572,217       904,247       4,197,991  

Securities lending income — Affiliated

    51,233       27,863       18,952       423  

Capital shares sold

    5,986,320       69,272       305,817        

Dividends

    11,088,215       5,139,533       4,518,865       2,184,821  

Tax reclaims

    55,061       15,912       39,600       671  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

    6,937,558,181           2,422,886,986           3,780,681,553           901,805,585  
 

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES

       

Bank overdraft

          260,876              

Collateral on securities loaned, at value

    25,598,860       12,944,493       43,094,962       1,321,595  

Deferred foreign capital gain tax

    17,759,012       635,104       3,854,281       1,861,470  

Payables:

       

Investments purchased

    361,460,601       17,407,793       304,596       5,223,195  

Variation margin on futures contracts

    658,775       88,200       130,569       50,025  

Bank borrowings

    19,550,674                    

Investment advisory fees

    1,263,474       470,247       723,370       314,367  

Foreign taxes

    16                    
 

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    426,291,412       31,806,713       48,107,778       8,770,652  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS

  $ 6,511,266,769     $ 2,391,080,273     $ 3,732,573,775     $ 893,034,933  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS CONSIST OF:

       

Paid-in capital

  $ 6,326,303,411     $ 2,482,910,673     $ 3,854,505,882     $ 854,991,936  

Accumulated earnings (loss)

    184,963,358       (91,830,400     (121,932,107     38,042,997  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS

  $ 6,511,266,769     $ 2,391,080,273     $ 3,732,573,775     $ 893,034,933  
 

 

 

   

 

 

   

 

 

   

 

 

 

Shares outstanding

    173,500,000       41,400,000       60,300,000       18,100,000  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value

  $ 37.53     $ 57.76     $ 61.90     $ 49.34  
 

 

 

   

 

 

   

 

 

   

 

 

 

Shares authorized

    600 million       100 million       500 million       525 million  
 

 

 

   

 

 

   

 

 

   

 

 

 

Par value

  $ 0.001     $ 0.001     $ 0.001     $ 0.001  
 

 

 

   

 

 

   

 

 

   

 

 

 

(a) Securities loaned, at value

  $ 24,238,355     $ 4,825,342     $ 36,418,053     $ 1,125,209  

(b) Investments, at cost — Unaffiliated

  $ 5,986,448,236     $ 2,414,953,192     $ 3,391,279,612     $ 799,052,512  

(c)  Investments, at cost — Affiliated

  $ 25,569,836     $ 17,390,187     $ 49,174,925     $ 4,175,051  

(d) Foreign currency, at cost

  $ 55,768,058     $ 1,590,741     $ 10,087,551     $ 1,086,765  

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

  41


Statements of Assets and Liabilities (unaudited) (continued)

February 28, 2022

 

   

iShares

MSCI Global Min

Vol Factor ETF

 

 

 

ASSETS

 

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

 

Unaffiliated(b)

  $ 5,204,754,773  

Affiliated(c)

    20,828,617  

Foreign currency, at value(d)

    4,474,346  

Cash pledged:

 

Futures contracts

    591,000  

Receivables:

 

Investments sold

    523,003  

Securities lending income — Affiliated

    1,788  

Dividends

    5,896,965  

Tax reclaims

    4,103,778  
 

 

 

 

Total assets

    5,241,174,270  
 

 

 

 

LIABILITIES

 

Bank overdraft

    219,272  

Collateral on securities loaned, at value

    11,316,839  

Deferred foreign capital gain tax

    5,130,332  

Payables:

 

Investments purchased

    213  

Variation margin on futures contracts

    107,964  

Capital shares redeemed

    649,091  

Investment advisory fees

    810,761  
 

 

 

 

Total liabilities

    18,234,472  
 

 

 

 

NET ASSETS

  $ 5,222,939,798  
 

 

 

 

NET ASSETS CONSIST OF:

 

Paid-in capital

  $ 4,605,301,365  

Accumulated earnings

    617,638,433  
 

 

 

 

NET ASSETS

  $ 5,222,939,798  
 

 

 

 

Shares outstanding

    51,500,000  
 

 

 

 

Net asset value

  $ 101.42  
 

 

 

 

Shares authorized

    500 million  
 

 

 

 

Par value

  $ 0.001  
 

 

 

 

(a) Securities loaned, at value

  $ 11,137,090  

(b) Investments, at cost — Unaffiliated

  $ 4,448,390,934  

(c)  Investments, at cost — Affiliated

  $ 20,826,323  

(d) Foreign currency, at cost

  $ 4,502,639  

See notes to financial statements.

 

 

42  

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


Statements of Operations (unaudited) 

Six Months Ended February 28, 2022

 

   

iShares

ESG Aware

MSCI EM

ETF

   

iShares

MSCI

Emerging

Markets ex

China ETF

   

iShares

MSCI

Emerging

Markets Min

Vol Factor

ETF

(Consolidated)

   

iShares

MSCI

Emerging

Markets

Multifactor

ETF

 

 

 

INVESTMENT INCOME

       

Dividends — Unaffiliated

  $ 60,889,475     $ 22,775,063     $ 23,433,828     $ 8,503,772  

Dividends — Affiliated

    6,779       1,149       1,297       662  

Interest — Unaffiliated

                78        

Securities lending income — Affiliated — net

    594,580       132,843       181,769       29,613  

Foreign taxes withheld

    (7,506,593     (2,805,050     (2,729,963     (1,111,652

Other foreign taxes

    (265,254     (24,063     (138     (2,073
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    53,718,987       20,079,942       20,886,871       7,420,322  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory fees

    8,244,894       2,339,547       12,835,576       1,858,236  

Commitment fees

    19,090       14,979       19,090       6,574  

Professional fees

    217       217       217       217  

Mauritius income taxes

                298        

Interest expense

    14,212       5,028       2,902       7,702  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    8,278,413       2,359,771       12,858,083       1,872,729  

Less:

       

Investment advisory fees waived

                (8,180,720      
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

    8,278,413       2,359,771       4,677,363       1,872,729  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    45,440,574           17,720,171           16,209,508           5,547,593  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — Unaffiliated(a)

    (85,006,682     (36,799,897     263,130,468       23,480,501  

Investments — Affiliated

    (13,582     (2,640     1,372       (470

In-kind redemptions — Unaffiliated

    21,432,720             7,042,281        

Futures contracts

    (1,844,828     90,316       305,040       (121,309

Foreign currency transactions

    (1,316,794     (569,959     34,106       (397,055
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gain (loss)

    (66,749,166     (37,282,180     270,513,267       22,961,667  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — Unaffiliated(b)

    (816,743,734     (125,360,487     (358,232,153     (81,672,738

Investments — Affiliated

    (3,354     (250     (7,586     (886

Futures contracts

    (563,596     (359,146     (608,194     (142,620

Foreign currency translations

    (4,576     532,648       (171,281     (25,490
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

    (817,315,260     (125,187,235     (359,019,214     (81,841,734
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized loss

    (884,064,426     (162,469,415     (88,505,947     (58,880,067
 

 

 

   

 

 

   

 

 

   

 

 

 

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ (838,623,852   $ (144,749,244   $ (72,296,439   $ (53,332,474
 

 

 

   

 

 

   

 

 

   

 

 

 

(a) Net of foreign capital gain tax and capital gain tax refund, if applicable

  $ (2,764,964   $ (1,051,410   $ (1,101,354   $ (1,534,084

(b) Net of reduction in deferred foreign capital gain tax of

  $ 7,802,457     $ 3,173,836     $ 4,134,800     $ 2,497,231  

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

  43


Statements of Operations (unaudited) (continued)

Six Months Ended February 28, 2022

 

   

iShares

MSCI Global

Min Vol

Factor ETF

 

 

 

INVESTMENT INCOME

 

Dividends — Unaffiliated

  $ 41,978,262  

Dividends — Affiliated

    894  

Securities lending income — Affiliated — net

    20,809  

Foreign taxes withheld

    (1,746,458

Other foreign taxes

    (83,433
 

 

 

 

Total investment income

    40,170,074  
 

 

 

 

EXPENSES

 

Investment advisory fees

    8,331,331  

Commitment fees

    16,943  

Professional fees

    217  

Interest expense

    3,610  
 

 

 

 

Total expenses

    8,352,101  

Less:

 

Investment advisory fees waived

    (3,063,589
 

 

 

 

Total expenses after fees waived

    5,288,512  
 

 

 

 

Net investment income

    34,881,562  
 

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

 

Net realized gain (loss) from:

 

Investments — Unaffiliated(a)

    93,819,487  

Investments — Affiliated

    1,965  

In-kind redemptions — Unaffiliated

    30,232,770  

Futures contracts

    351,389  

Foreign currency transactions

    (902,041
 

 

 

 

Net realized gain

    123,503,570  
 

 

 

 

Net change in unrealized appreciation (depreciation) on:

 

Investments — Unaffiliated(b)

    (374,574,242

Investments — Affiliated

    (6,391

Futures contracts

    (864,030

Foreign currency translations

    (105,326
 

 

 

 

Net change in unrealized appreciation (depreciation)

    (375,549,989
 

 

 

 

Net realized and unrealized loss

    (252,046,419
 

 

 

 

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ (217,164,857
 

 

 

 

(a) Net of foreign capital gain tax and capital gain tax refund, if applicable

  $ (17,702

(b) Net of reduction in deferred foreign capital gain tax of

  $ 400,937  

See notes to financial statements.

 

 

44  

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


Statements of Changes in Net Assets 

 

   

iShares

ESG Aware MSCI EM ETF

          

iShares

MSCI Emerging Markets ex China ETF

 

 

   

 

 

 
   

Six Months Ended

02/28/22

(unaudited)

    

Year Ended

08/31/21

   

Six Months Ended

02/28/22

(unaudited)

    

Year Ended

08/31/21

 

 

 

INCREASE (DECREASE) IN NET ASSETS

              

OPERATIONS

              

Net investment income

    $ 45,440,574      $ 113,247,754        $ 17,720,171      $ 11,581,156  

Net realized gain (loss)

      (66,749,166      61,224,537          (37,282,180      (15,405,558

Net change in unrealized appreciation (depreciation)

      (817,315,260      864,277,615          (125,187,235      86,165,901  
   

 

 

    

 

 

      

 

 

    

 

 

 

Net increase (decrease) in net assets resulting from operations

      (838,623,852      1,038,749,906          (144,749,244      82,341,499  
   

 

 

    

 

 

      

 

 

    

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

              

Decrease in net assets resulting from distributions to shareholders

      (133,979,813      (85,824,734        (26,460,646      (4,756,653
   

 

 

    

 

 

      

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS

              

Net increase in net assets derived from capital share transactions

      378,426,970        2,498,038,201          1,280,823,566        1,130,275,959  
   

 

 

    

 

 

      

 

 

    

 

 

 

NET ASSETS

              

Total increase (decrease) in net assets

      (594,176,695      3,450,963,373          1,109,613,676        1,207,860,805  

Beginning of period

      7,105,443,464        3,654,480,091          1,281,466,597        73,605,792  
   

 

 

    

 

 

      

 

 

    

 

 

 

End of period

    $ 6,511,266,769      $ 7,105,443,464        $ 2,391,080,273      $ 1,281,466,597  
   

 

 

    

 

 

      

 

 

    

 

 

 

 

(a) 

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

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

  45


Statements of Changes in Net Assets (continued)

 

 

   

iShares

MSCI Emerging Markets Min Vol Factor ETF

(Consolidated)

   

iShares

MSCI Emerging Markets Multifactor ETF

 
 

 

   

 

 

 
   

Six Months Ended

02/28/22

(unaudited)

   

Year Ended

08/31/21

   

Six Months Ended

02/28/22

(unaudited)

   

Year Ended

08/31/21

 

 

 

INCREASE (DECREASE) IN NET ASSETS

            

OPERATIONS

            

Net investment income

    $ 16,209,508     $ 87,105,453        $ 5,547,593     $ 16,623,722  

Net realized gain

      270,513,267       322,703,890          22,961,667       5,150,252  

Net change in unrealized appreciation (depreciation)

      (359,019,214     238,627,963          (81,841,734     117,257,997  
   

 

 

   

 

 

      

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

      (72,296,439     648,437,306          (53,332,474     139,031,971  
   

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

            

Decrease in net assets resulting from distributions to shareholders

      (48,413,834     (97,556,628        (15,540,802     (12,014,914
   

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

            

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

      (21,230,434     (924,624,509        200,709,002       92,574,411  
   

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

            

Total increase (decrease) in net assets

      (141,940,707     (373,743,831        131,835,726       219,591,468  

Beginning of period

           3,874,514,482       4,248,258,313                     761,199,207       541,607,739  
   

 

 

   

 

 

      

 

 

   

 

 

 

End of period

    $ 3,732,573,775           $ 3,874,514,482        $ 893,034,933           $ 761,199,207  
   

 

 

   

 

 

      

 

 

   

 

 

 

 

(a)

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

See notes to financial statements.

 

 

46  

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


Statements of Changes in Net Assets (continued)

 

   

iShares

MSCI Global Min Vol Factor ETF

 
 

 

 

 
   

Six Months Ended

02/28/22

(unaudited)

   

Year Ended

08/31/21

 

 

 

INCREASE (DECREASE) IN NET ASSETS

       

OPERATIONS

       

Net investment income

    $ 34,881,562       $ 110,335,290  

Net realized gain

      123,503,570               425,892,769  

Net change in unrealized appreciation (depreciation)

      (375,549,989       291,860,683  
   

 

 

     

 

 

 

Net increase (decrease) in net assets resulting from operations

      (217,164,857       828,088,742  
   

 

 

     

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

       

Decrease in net assets resulting from distributions to shareholders

      (58,519,534       (97,299,099
   

 

 

     

 

 

 

CAPITAL SHARE TRANSACTIONS

       

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

      192,363,070         (1,349,346,257
   

 

 

     

 

 

 

NET ASSETS

       

Total decrease in net assets

      (83,321,321       (618,556,614

Beginning of period

      5,306,261,119         5,924,817,733  
   

 

 

     

 

 

 

End of period

    $ 5,222,939,798       $ 5,306,261,119  
   

 

 

     

 

 

 

 

(a) 

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

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

  47


Financial Highlights

(For a share outstanding throughout each period)

 

    iShares ESG Aware MSCI EM ETF  
 

 

 

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

 

 

Net asset value, beginning of period

               $ 43.35     $ 35.93     $ 32.03       $ 33.65       $ 34.58       $ 28.23  
   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(b)

      0.28       0.75       0.89         0.91         0.94         0.85  

Net realized and unrealized gain (loss)(c)

      (5.27     7.23       3.89         (1.85       (1.17       5.81  
   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (4.99     7.98       4.78         (0.94       (0.23       6.66  
   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

 

Distributions(d)

                   

From net investment income

      (0.83     (0.56     (0.88       (0.68       (0.70       (0.31
   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

 

Total distributions

      (0.83     (0.56     (0.88       (0.68       (0.70       (0.31
   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 37.53     $ 43.35     $ 35.93       $ 32.03       $ 33.65       $ 34.58  
   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(e)

                   

Based on net asset value

      (11.61 )%(f)      22.30     15.11       (2.76 )%        (0.72 )%        23.75
   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(g)

                   

Total expenses

      0.25 %(h)      0.25     0.25       0.25       0.25       0.42
   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      1.38 %(h)      1.76     2.75       2.76       2.63       2.73
   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                   

Net assets, end of period (000)

    $ 6,511,267     $ 7,105,443           $ 3,654,480       $ 672,543       $ 329,753       $ 96,812  
   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(i)

      20 %(f)      41     46       34       45       29
   

 

 

   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Per share amounts reflect a two-for-one stock split effective after the close of trading on May 24, 2018.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

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

(h) 

Annualized.

(i) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

48  

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


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Emerging Markets ex China ETF  
 

 

 

 
   

Six Months Ended

                                             

Period From

 
      02/28/22      
Year Ended
 
   
Year Ended
 
   
Year Ended
 
   
Year Ended
 
     
07/18/17
(a) 
          (unaudited)     08/31/21           08/31/20           08/31/19           08/31/18     to 08/31/17  

 

 

Net asset value, beginning of period

                  $ 62.82     $ 46.00                  $ 46.25                $ 49.59                  $ 51.14                  $ 50.22  
   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(b)

      0.57       1.58         1.46         1.62         1.10         0.13  

Net realized and unrealized gain (loss)(c)

      (4.80     16.09         (0.05       (3.83       (1.80       0.79  
   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (4.23     17.67         1.41         (2.21       (0.70       0.92  
   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions(d)

                     

From net investment income

      (0.83     (0.85       (1.66       (1.13       (0.85        
   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total distributions

      (0.83     (0.85       (1.66       (1.13       (0.85        
   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 57.76     $ 62.82       $ 46.00       $ 46.25       $ 49.59       $ 51.14  
   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(e)

                     

Based on net asset value

      (6.81 )%(f)      38.66       2.87       (4.42 )%        (1.41 )%        1.83 %(f) 
   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(g)

                     

Total expenses

      0.25 %(h)      0.25       0.36       0.49       0.49       0.49 %(h) 
   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived

      0.25 %(h)      0.22       0.16       0.26       0.41       0.41 %(h) 
   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      1.89 %(h)      2.65       3.24       3.38       2.09       2.07 %(h) 
   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                     

Net assets, end of period (000)

    $ 2,391,080             $ 1,281,467       $ 73,606       $ 27,748       $ 9,919       $ 10,227  
   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(i)

      11 %(f)      51       18       10       9       0 %(f)(j) 
   

 

 

   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

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

(h) 

Annualized.

(i) 

Portfolio turnover rate excludes in-kind transactions.

(j) 

Rounds to less than 1%.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  49


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

   

iShares MSCI Emerging Markets Min Vol Factor ETF

(Consolidated)

 
 

 

 

 
   

Six Months Ended

02/28/22

(unaudited)

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

 

 

Net asset value, beginning of period

    $ 63.94     $ 55.97     $ 56.84     $ 59.22     $ 58.01     $ 53.40  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      0.27       1.32 (b)      1.42       1.57       1.49       1.28  

Net realized and unrealized gain (loss)(c)

      (1.49     8.12       (0.82     (2.46     1.23       4.48  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (1.22     9.44       0.60       (0.89     2.72       5.76  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

         

From net investment income

      (0.82     (1.47     (1.47     (1.49     (1.51     (1.15
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.82     (1.47     (1.47     (1.49     (1.51     (1.15
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 61.90     $ 63.94     $ 55.97     $ 56.84     $ 59.22     $ 58.01  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

         

Based on net asset value

      (1.94 )%(f)      17.04 %(b)      1.07     (1.44 )%(g)      4.70     11.11
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(h)

         

Total expenses

      0.69 %(i)      0.69     0.70     0.68     0.67     0.69
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

      0.25 %(i)      0.25     0.25     0.25     0.25     0.25
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

      N/A       0.69     N/A       N/A       N/A       N/A  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      0.87 %(i)      2.15 %(b)      2.59     2.71     2.47     2.40
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

         

Net assets, end of period (000)

              $ 3,732,574     $ 3,874,514     $ 4,248,258     $ 5,417,265     $ 4,666,697     $ 4,037,428  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(j)

      12 %(f)      38     23     24     22     23
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended August 31, 2021:

• Net investment income per share by $0.01.

• Total return by 0.02%.

• Ratio of net investment income to average net assets by 0.01%.

(c) 

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

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Includes payment received from an affiliate, which had no impact on the Fund’s total return.

(h) 

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

(i) 

Annualized.

(j) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

50  

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


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

          iShares MSCI Emerging Markets Multifactor ETF
 

 

 

 
    Six Months Ended
02/28/22
(unaudited)
   

Year Ended
08/31/21

   

Year Ended
08/31/20

   

Year Ended
08/31/19

   

Year Ended
08/31/18

   

Year Ended
08/31/17

 

 

 

Net asset value, beginning of period

                 $ 53.61       $ 44.03             $ 40.35             $ 44.78             $ 46.04             $ 37.46  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

      0.34         1.23         1.11         1.47         1.39         0.91  

Net realized and unrealized gain (loss)(b)

      (3.68       9.24         3.73         (4.72       (1.63       8.53  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (3.34       10.47         4.84         (3.25       (0.24       9.44  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions(c)

                       

From net investment income

      (0.93       (0.89       (1.16       (1.18       (1.02       (0.86
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total distributions

      (0.93       (0.89       (1.16       (1.18       (1.02       (0.86
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 49.34       $ 53.61       $ 44.03       $ 40.35       $ 44.78       $ 46.04  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(d)

                       

Based on net asset value

      (6.27 )%(e)        23.97       12.17       (7.16 )%        (0.65 )%        25.80
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(f)

                       

Total expenses

      0.45 %(g)        0.45       0.45       0.45       0.45       0.50
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived

      0.45 %(g)        0.45       0.45       0.45       0.42       0.42
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      1.34 %(g)        2.44       2.71       3.55       2.87       2.24
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 893,035       $ 761,199       $ 541,608       $ 411,575       $ 291,071       $ 82,873  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(h)

      21 %(e)        49       45       53       39       36
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

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

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  51


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

          iShares MSCI Global Min Vol Factor ETF
 

 

 

 
   

Six Months Ended

02/28/22

(unaudited)

   

Year Ended

08/31/21

   

Year Ended

08/31/20

   

Year Ended

08/31/19

    Year Ended
08/31/18
    Year Ended
08/31/17
 

 

 

Net asset value, beginning of period

    $ 106.77     $ 93.16     $ 93.54     $ 87.04     $ 81.13     $ 75.82  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      0.69       1.97       2.13       2.16       1.82       1.84  

Net realized and unrealized gain (loss)(b)

      (4.91     13.38       (0.18     6.36       5.85       5.40  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (4.22     15.35       1.95       8.52       7.67       7.24  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

             

From net investment income

      (1.13     (1.74     (2.33     (2.02     (1.76     (1.93
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (1.13     (1.74     (2.33     (2.02     (1.76     (1.93
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 101.42     $ 106.77     $ 93.16     $ 93.54     $ 87.04     $ 81.13  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

             

Based on net asset value

      (4.00 )%(e)      16.63     2.13     9.99     9.56     9.75
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(f)

             

Total expenses

      0.32 %(g)      0.32     0.32     0.32     0.31     0.32
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

      0.20 %(g)      0.20     0.20     0.20     0.20     0.20
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      1.32 %(g)      2.00     2.33     2.45     2.17     2.40
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

               $ 5,222,940     $ 5,306,261     $ 5,924,818     $ 5,275,720     $ 3,342,400     $ 3,675,374  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

      10 %(e)      25     22     21     23     24
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

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

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

52  

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Notes to Financial Statements (unaudited)

 

1.

ORGANIZATION

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

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

 

   
iShares ETF   Diversification    
Classification    

ESG Aware MSCI EM

    Diversified    

MSCI Emerging Markets ex China

    Diversified  

MSCI Emerging Markets Min Vol Factor

    Diversified  

MSCI Emerging Markets Multifactor

    Diversified  

MSCI Global Min Vol Factor

    Diversified  

Basis of Consolidation: The accompanying consolidated financial statements for the iShares MSCI Emerging Markets Min Vol Factor ETF includes the accounts of its subsidiary in the Republic of Mauritius, which is a wholly-owned subsidiary (the “Subsidiary”) of the Fund that invests in Indian securities. Through this investment structure, the Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. The net assets of the Subsidiary as of period end were $1,064, which is less than 0.1% of the Fund’s consolidated net assets. Intercompany accounts and transactions, if any, have been eliminated.

Effective June 15, 2021, MSCI Emerging Markets Min Vol Factor no longer invests in the Subsidiary. MSCI Emerging Markets Min Vol Factor transferred substantially all of the assets of MSCI Emerging Markets Min Vol Factor’s wholly owned Mauritius Subsidiary to MSCI Emerging Markets Min Vol Factor through on-exchange transactions in India. MSCI Emerging Markets Min Vol Factor recognized a net realized gain of $220,328,652 as a result of this transaction. After the transfer, MSCI Emerging Markets Min Vol Factor began making new investments in India directly.

 

2.

SIGNIFICANT ACCOUNTING POLICIES

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

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

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

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

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

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

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

  53


Notes to Financial Statements (unaudited) (continued)

 

The iShares MSCI Emerging Markets Min Vol Factor ETF has conducted investment activities in India through its Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”) between India and Mauritius. In order to be eligible to claim benefits under the DTAA, the Subsidiary must have commercial substance, on an annual basis, to satisfy certain tests and conditions, including the establishment and maintenance of valid tax residence in Mauritius, have the place of effective management outside of India, and related requirements. The Fund has obtained a current tax residence certificate issued by the Mauritian Revenue Authorities.

Based upon current interpretation and practice of the current tax laws in India and Mauritius and the DTAA, the Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, the Subsidiary is entitled to a tax credit equivalent to the higher of the actual foreign tax incurred or 80% of the Mauritius tax on its foreign source income, thus reducing its maximum effective tax rate to 3% up to June 30, 2021. After June 30, 2021, under the new tax regime and subject to meeting the necessary substance requirements as required under the Financial Services Act 2007 (as amended by the Finance Act 2018) and such guidelines issued by the Financial Services Commission (the “FSC”), the Subsidiary is entitled to either (a) a foreign tax credit equivalent to the actual foreign tax suffered on its foreign income against the Subsidiary’s tax liability computed at 15% on such income, or (b) a partial exemption of 80% of some of the income derived, including interest income or foreign source dividends. Taxes on income, if any, are paid by the Subsidiary and are disclosed in its Consolidated Statements of Operations. Any dividends paid by the Subsidiary to its Fund are not subject to tax in Mauritius. The Subsidiary is currently exempt from tax in Mauritius on any gains from the sale of securities.

The DTAA provides that capital gains will be taxable in India with respect to the sale of shares acquired on or after April 1, 2017. Capital gains arising from shares acquired before April 1, 2017, regardless of when they are sold, will continue to be exempt from taxation under the amended DTAA, assuming requirements for eligibility under the DTAA are satisfied. There can be no assurance, however, that the DTAA will remain in effect during the Subsidiary’s existence or that it will continue to enjoy its benefits on the shares acquired prior to April 1, 2017.

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

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

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

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

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

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

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

   

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

   

Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day may be valued at the last traded price.

   

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

   

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

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

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price

 

 

54  

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Notes to Financial Statements (unaudited) (continued)

 

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

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

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

   

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

   

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

   

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

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

 

4.

SECURITIES AND OTHER INVESTMENTS

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

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

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

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

  55


Notes to Financial Statements (unaudited) (continued)

 

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

 

 

 
iShares ETF and Counterparty    

Market Value of

Securities on Loan

 

 

    
Cash Collateral
Received
 
(a) 
   

Non-Cash Collateral

Received

 

 

     Net Amount  

 

 

ESG Aware MSCI EM

         

Barclays Bank PLC

  $ 7,097,050      $ 7,097,050     $      $  

BNP Paribas SA

    1,837,851        1,837,851               

Citigroup Global Markets, Inc.

    3,862,327        3,862,327               

Credit Suisse Securities (USA) LLC

    104,804        104,804               

J.P. Morgan Securities LLC

    9,814,851        9,814,851               

Macquarie Bank Ltd.

    1,354,659        1,354,659               

Scotia Capital (USA), Inc.

    166,813        166,813               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 24,238,355      $ 24,238,355     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

MSCI Emerging Markets ex China

         

Barclays Capital, Inc.

  $ 334,247      $ 334,247     $      $  

BNP Paribas SA

    771,804        771,804               

BofA Securities, Inc.

    199,005        199,005               

Citigroup Global Markets, Inc.

    1,077,264        1,077,264               

Credit Suisse Securities (USA) LLC

    499,210        499,210               

Macquarie Bank Ltd.

    196,699        196,699               

Morgan Stanley

    1,742,780        1,742,780               

UBS AG

    4,333        4,333               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 4,825,342      $ 4,825,342     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

MSCI Emerging Markets Min Vol Factor

         

BofA Securities, Inc.

  $ 10,426,557      $ 10,426,557     $      $  

J.P. Morgan Securities LLC

    300,521        300,521               

Macquarie Bank Ltd.

    175,519        175,519               

Morgan Stanley

    25,258,121        25,258,121               

Wells Fargo Bank N.A

    257,335        257,335               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 36,418,053      $ 36,418,053     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

MSCI Emerging Markets Multifactor

         

Credit Suisse Securities (USA) LLC

  $ 493,362      $ 493,362     $      $  

HSBC Bank PLC

    85,417        85,417               

J.P. Morgan Securities LLC

    488,217        488,217               

Morgan Stanley

    58,213        58,213               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 1,125,209      $ 1,125,209     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

MSCI Global Min Vol Factor

         

BNP Paribas SA

  $ 3,021,761      $ 2,977,036     $      $ (44,725 )(b) 

Citigroup Global Markets, Inc.

    2,510,548        2,510,548               

J.P. Morgan Securities LLC

    5,321,765        5,321,765               

Morgan Stanley

    29,546        29,546               

RBC Capital Markets LLC

    253,470        253,470               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 11,137,090      $ 11,092,365     $      $ (44,725
 

 

 

    

 

 

   

 

 

    

 

 

 

 

  (a) 

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

 
  (b) 

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

 

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

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

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

 

 

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Notes to Financial Statements (unaudited) (continued)

 

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

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

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:

 

   
iShares ETF   Investment Advisory Fee  

ESG Aware MSCI EM

    0.25

MSCI Emerging Markets ex China

    0.25  

MSCI Emerging Markets Multifactor

    0.45  

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

 

   
Aggregate Average Daily Net Assets   Investment Advisory Fee  

First $14 billion

    0.75

Over $14 billion, up to and including $28 billion

    0.68  

Over $28 billion, up to and including $42 billion

    0.61  

Over $42 billion, up to and including $56 billion

    0.54  

Over $56 billion, up to and including $70 billion

    0.47  

Over $70 billion, up to and including $84 billion

    0.41  

Over $84 billion

    0.35  

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

 

   
Aggregate Average Daily Net Assets   Investment Advisory Fee  

First $30 billion

    0.350

Over $30 billion, up to and including $60 billion

    0.320  

Over $60 billion, up to and including $90 billion

    0.280  

Over $90 billion, up to and including $120 billion

    0.252  

Over $120 billion, up to and including $150 billion

    0.227  

Over $150 billion

    0.204  

The Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. The Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and any other fund expenses, if any, is a fund’s total annual operating expenses. Total expenses as shown in the Statement of Operations does not include acquired fund fees and expenses.

For each of the iShares MSCI Emerging Markets Min Vol Factor and iShares MSCI Global Min Vol Factor ETFs, BFA has contractually agreed to waive a portion of its investment advisory fee for each Fund through December 31, 2023 in order to limit each Fund’s total annual operating expenses after fee waiver to 0.25% and 0.20%, respectively, of average daily net assets.

For each of the iShares MSCI Emerging Markets ex China and iShares MSCI Emerging Markets Multifactor ETFs, BFA has contractually agreed to waive a portion of its investment advisory fee for each Fund through December 31, 2022 and December 31, 2026, respectively, in an amount equal to the acquired fund fees and expenses, if any, attributable to each Fund’s investments in other iShares funds.

These amounts are included in investment advisory fees waived in the Statements of Operations. For the six months ended February 28, 2022, the amounts waived in investment advisory fees pursuant to this arrangement were as follows:

 

   
iShares ETF     Amounts waived  

MSCI Emerging Markets Min Vol Factor

   $ 8,180,720  

MSCI Global Min Vol Factor

     3,063,589  

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

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

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

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

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

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

 

   
iShares ETF   

 Fees Paid

to BTC

 

ESG Aware MSCI EM

   $ 140,824  

MSCI Emerging Markets ex China

     30,596  

MSCI Emerging Markets Min Vol Factor

     44,914  

MSCI Emerging Markets Multifactor

     7,611  

MSCI Global Min Vol Factor

     7,462  

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

 

 

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Notes to Financial Statements (unaudited) (continued)

 

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

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

 

       
iShares ETF    Purchases      Sales      Net Realized  
Gain (Loss)  

ESG Aware MSCI EM

   $  60,870,045      $ 47,519,509      $ (9,491,903

MSCI Emerging Markets ex China

     1,573,882        5,263,490        (1,054,953

MSCI Emerging Markets Min Vol Factor

     36,537,756        19,099,682        (2,928,529

MSCI Emerging Markets Multifactor

     26,696,787        16,127,556        238,497  

MSCI Global Min Vol Factor

     82,262,754        108,245,429        18,683,326  

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

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

 

7.

PURCHASES AND SALES

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

 

     
iShares ETF    Purchases      Sales  

ESG Aware MSCI EM

   $   1,573,860,040      $   1,288,290,379  

MSCI Emerging Markets ex China

     1,193,082,872        201,471,704  

MSCI Emerging Markets Min Vol Factor

     467,557,113        476,022,096  

MSCI Emerging Markets Multifactor

     342,759,403        173,776,713  

MSCI Global Min Vol Factor

     606,263,315        534,616,376  

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

 

     
iShares ETF    In-kind
Purchases
      

In-kind  

Sales  

ESG Aware MSCI EM

   $   116,845,242        $   110,034,352  

MSCI Emerging Markets ex China

     278,136,733           

MSCI Emerging Markets Min Vol Factor

     4,715,369          31,584,259  

MSCI Emerging Markets Multifactor

     20,397,815           

MSCI Global Min Vol Factor

     204,470,313          97,388,602  

 

8.

INCOME TAX INFORMATION

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

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

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

 

   
iShares ETF    Non-Expiring  

ESG Aware MSCI EM

   $ 96,635,574  

MSCI Emerging Markets ex China

     11,629,292  

MSCI Emerging Markets Min Vol Factor

     871,741,410  

MSCI Emerging Markets Multifactor

     62,842,118  

MSCI Global Min Vol Factor

     235,562,633  

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

 

 

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Notes to Financial Statements (unaudited) (continued)

 

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

 

         
iShares ETF    Tax Cost      Gross Unrealized
Appreciation
     Gross Unrealized
Depreciation
    

Net Unrealized   

Appreciation   

(Depreciation)   

ESG Aware MSCI EM

   $   6,124,145,007      $ 1,158,608,481      $ (767,852,879    $   390,755,602  

MSCI Emerging Markets ex China

     2,439,306,369        169,097,504        (211,446,344      (42,348,840

MSCI Emerging Markets Min Vol Factor

     3,272,783,751        781,298,885        (290,120,007      491,178,878  

MSCI Emerging Markets Multifactor

     813,892,992        153,426,808        (74,147,267      79,279,541  

MSCI Global Min Vol Factor

     4,491,927,928        1,009,068,255        (275,857,824      733,210,431  

 

9.

LINE OF CREDIT

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

For the six months ended February 28, 2022, the maximum amount borrowed, the average daily borrowing and the weighted average interest rate, if any, under the Syndicated Credit Agreement were as follows:

 

       
iShares ETF    Maximum
Amount
Borrowed
     Average
Borrowing
    

Weighted
Average

Interest Rates

 

ESG Aware MSCI EM

   $   58,000,000      $   2,560,453        1.10 %   

MSCI Emerging Markets ex China

     18,900,000        918,232        1.09  

MSCI Emerging Markets Min Vol Factor

     15,800,000        523,757        1.10  

MSCI Emerging Markets Multifactor

     41,932,090        1,390,014        1.10  

MSCI Global Min Vol Factor

     19,653,000        651,481        1.10  

 

10.

PRINCIPAL RISKS

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

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

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

Market Risk: Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain additional risks that do not generally apply to investments in securities of issuers in more developed capital markets, such as (i) low or nonexistent trading volume, resulting in a lack of liquidity and increased volatility in prices for such securities; (ii) uncertain national policies and social, political and economic instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) lack of publicly available or reliable information about issuers as a result of not being subject to the same degree of regulatory requirements and accounting, auditing and financial reporting standards; and (iv) possible fluctuations in exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial restrictions or other foreign or U.S. governmental laws or restrictions applicable to such investments.

An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic

 

 

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Notes to Financial Statements (unaudited) (continued)

 

may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. Although vaccines have been developed and approved for use by various governments, the duration of this pandemic and its effects cannot be determined with certainty.

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

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

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

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

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

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

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

Certain Funds invest a significant portion of their assets in securities of issuers located in Russia or with significant exposure to Russian issuers or countries. Russia launched a large-scale invasion of Ukraine on February 24, 2022. Governments in the U.S. and many other countries have imposed economic sanctions on certain Russian individuals and Russian corporate and banking entities. Jurisdictions have instituted broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border payments. The extent and duration of the military action, resulting sanctions and resulting future market disruptions, including declines in Russia’s stock markets and the value of the ruble against the U.S. dollar, are impossible to predict, but could be significant. Any such disruptions caused by the Russian military action or any response to such activity from the international community may negatively impact Russia’s economy and Russian issuers of securities in which the Fund invests.

Certain Funds invest a significant portion of their assets in securities of issuers located in China or with significant exposure to Chinese issuers or countries. Investments in Chinese securities, including certain Hong Kong-listed securities, involves risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and a fund’s investments. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. In addition, measures may be taken to limit the flow of capital and/or sanctions may be imposed, which could prohibit or restrict the ability to own or transfer fund assets and may also include retaliatory actions, such as seizure of fund assets.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

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

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

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

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

 

11.

CAPITAL SHARE TRANSACTIONS

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

Transactions in capital shares were as follows:

 

 

 
   

Six Months Ended

02/28/22

    

Year Ended

08/31/21

 
 

 

 

    

 

 

 
iShares ETF   Shares      Amount      Shares      Amount  

 

 

ESG Aware MSCI EM

          

Shares sold

    17,200,000      $ 679,753,097        76,700,000      $ 3,110,611,419  

Shares redeemed

    (7,600,000      (301,326,127      (14,500,000      (612,573,218
 

 

 

    

 

 

    

 

 

    

 

 

 

Net increase

    9,600,000      $ 378,426,970        62,200,000      $ 2,498,038,201  
 

 

 

    

 

 

    

 

 

    

 

 

 

MSCI Emerging Markets ex China

          

Shares sold

    21,000,000      $ 1,280,823,566        18,800,000      $ 1,130,275,959  
 

 

 

    

 

 

    

 

 

    

 

 

 

MSCI Emerging Markets Min Vol Factor

          

Shares sold

    1,400,000      $ 86,911,885        600,000      $ 39,620,351  

Shares redeemed

    (1,700,000      (108,142,319      (15,900,000      (964,244,860
 

 

 

    

 

 

    

 

 

    

 

 

 

Net decrease

    (300,000    $ (21,230,434      (15,300,000    $ (924,624,509
 

 

 

    

 

 

    

 

 

    

 

 

 

MSCI Emerging Markets Multifactor

          

Shares sold

    3,900,000      $ 200,709,002        2,100,000      $ 102,725,207  

Shares redeemed

                  (200,000      (10,150,796
 

 

 

    

 

 

    

 

 

    

 

 

 

Net increase

    3,900,000      $ 200,709,002        1,900,000      $ 92,574,411  
 

 

 

    

 

 

    

 

 

    

 

 

 

MSCI Global Min Vol Factor

          

Shares sold

    2,900,000      $ 307,862,382        500,000      $ 52,148,364  

Shares redeemed

    (1,100,000      (115,499,312      (14,400,000      (1,401,494,621
 

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease)

    1,800,000      $ 192,363,070        (13,900,000    $ (1,349,346,257
 

 

 

    

 

 

    

 

 

    

 

 

 

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

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

 

 

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Notes to Financial Statements (unaudited) (continued)

 

12.

SUBSEQUENT EVENTS

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

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

  63


Statement Regarding Liquidity Risk Management Program (unaudited)

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), iShares, Inc. (the “Company”) has adopted and implemented a liquidity risk management program (the “Program”) for iShares ESG Aware MSCI EM ETF, iShares MSCI Emerging Markets ex China ETF, iShares MSCI Emerging Markets Min Vol Factor ETF, iShares MSCI Emerging Markets Multifactor ETF and iShares MSCI Global Min Vol Factor ETF (the “Funds” or “ETFs”), each a series of the Company, which is reasonably designed to assess and manage each Fund’s liquidity risk.

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

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

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

 

  a)

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

 

  b)

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

 

  c)

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

 

  d)

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

 

  e)

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

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

 

 

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Supplemental Information (unaudited)

 

Regulation Regarding Derivatives

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

Section 19(a) Notices

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

February 28, 2022

 

     
   

Total Cumulative Distributions

for the Fiscal Year-to-Date

     % Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
 
 

 

 

    

 

 

 
iShares ETF  

Net

Investment

Income

    

Net Realized

Capital Gains

    

Return of

Capital

    

Total Per

Share

    

Net

Investment

Income

   

Net Realized

Capital Gains

   

Return of

Capital

   

Total Per

Share

 

ESG Aware MSCI EM(a)

  $   0.532670      $      $   0.297955      $   0.830625        64         36     100

MSCI Emerging Markets ex China(a)

    0.625853               0.199506        0.825359        76             24       100  

MSCI Emerging Markets Min Vol Factor(a)

    0.703039               0.116146        0.819185        86             14       100  

MSCI Emerging Markets Multifactor(a)

    0.755630               0.174098        0.929728        81             19       100  

MSCI Global Min Vol Factor(a)

    1.021488               0.106056        1.127544        91             9       100  

 

  (a) 

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

 

 

 

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

  65


General Information

 

Electronic Delivery

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

To enroll in electronic delivery:

 

   

Go to icsdelivery.com.

   

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

Householding

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

Availability of Quarterly Schedule of Investments

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

Availability of Proxy Voting Policies and Proxy Voting Records

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

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

 

 

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Glossary of Terms Used in this Report

 

 

Portfolio Abbreviations - Equity

ADR    American Depositary Receipt
CPO    Certificates of Participation (Ordinary)
GDR    Global Depositary Receipt
JSC    Joint Stock Company
NVDR    Non-Voting Depositary Receipt
NVS    Non-Voting Shares
PJSC    Public Joint Stock Company
REIT    Real Estate Investment Trust

 

 

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

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Want to know more?

iShares.com    |    1-800-474-2737

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

Investing involves risk, including possible loss of principal.

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

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

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

iS-SAR-816-0222

 

 

 

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