LOGO

  JANUARY 31, 2024

 

  

2024 Semi-Annual Report

(Unaudited)

 

 

BlackRock ETF Trust

 

·  

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

 

·  

BlackRock Future Financial and Technology ETF | BPAY | NYSE Arca

 

·  

BlackRock Future Health ETF | BMED | NYSE Arca

 

·  

BlackRock Future Tech ETF | BTEK | NYSE Arca

 

·  

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

 

·  

BlackRock Large Cap Core ETF | BLCR | NASDAQ

 

·  

BlackRock Large Cap Value ETF | BLCV | NASDAQ

 

·  

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

 

·  

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

 

·  

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

 

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee

 


The Markets in Review

Dear Shareholder,

The combination of continued economic growth and cooling inflation provided a supportive backdrop for investors during the 12-month reporting period ended January 31, 2024. Significantly tighter monetary policy helped to rein in inflation, and the Consumer Price Index decelerated substantially in the first half of the period before stalling between 3% and 4% in the second half. A moderating labor market helped ease inflationary pressure, although wages continued to grow. Wage and job growth powered robust consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.

Equity returns were robust during the period, as interest rates stabilized and the economy proved to be more resilient than many investors expected. The U.S. economy continued to show strength, and growth further accelerated in the second half of 2023. Large-capitalization U.S. stocks posted particularly substantial gains, supported by the performance of a few notable technology companies, while small-capitalization U.S. stocks advanced at a significantly slower pace. Meanwhile, international developed market equities also gained, while emerging market stocks declined overall.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. However, shorter-duration U.S. Treasuries gained, as higher yields boosted returns. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.

The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates four times during the 12-month period, but paused its tightening in the second half of the period. The Fed also wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity.

Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has stopped tightening for now, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period despite the market’s hopes for interest rate cuts, as reflected in the recent rally. In this new regime, we anticipate greater volatility and dispersion of returns, creating more opportunities for selective portfolio management.

Looking at developed market stocks, we have an overweight stance on U.S. stocks overall, particularly given the promise of emerging AI technologies. We are also overweight Japanese stocks as shareholder-friendly policies generate increased investor interest, although we maintain an underweight stance on European stocks. In credit, there are selective opportunities in the near term despite tighter credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries and hard-currency emerging market bonds.

Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of January 31, 2024

 

     
  6-Month 12-Month
   

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

  6.43 %    20.82 % 
   

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

  (2.02 )   2.40
   

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

  3.15   10.01
   

Emerging market equities
(MSCI Emerging Markets Index)

  (6.00 )   (2.94 )
   

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

  2.73   5.13
   

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

  1.74   (0.38 )
   

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

  3.15   2.10
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

  2.70   2.90
   

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

  6.18   9.28

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  

Semi-Annual Report:

  

Fund Summary

     4  

About Fund Performance

     22  

Disclosure of Expenses

     22  

Schedules of Investments

     23  

Financial Statements:

  

Statements of Assets and Liabilities

     56  

Statements of Operations

     59  

Statements of Changes in Net Assets

     62  

Financial Highlights

     67  

Notes to Financial Statements

     77  

Disclosure of Investment Advisory Agreement

     90  

Statement Regarding Liquidity Risk Management Program

     93  

Supplemental Information

     94  

Additional Information

     95  

Glossary of Terms Used in this Report

     97  

 

 

  3


Fund Summary as of January 31, 2024    BlackRock Future Climate and Sustainable Economy ETF

 

Investment Objective

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

Performance

 

           Average Annual Total Returns             Cumulative Total Returns   
     6-Month
Total Returns
    1 Year      Since
Inception
           1 Year      Since
Inception
 

Fund NAV

    (8.34 )%      (5.81 )%       (7.73 )%        (5.81 )%       (18.21 )% 

Fund Market

    (8.44     (5.96      (7.85       (5.96      (18.47

MSCI ACWI Multiple Industries Select Index(a)

    (0.19     7.15        (0.15             7.15        (0.39

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

 

  (a) 

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

 

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

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $  1,000.00          $  916.60          $  3.37               $  1,000.00          $  1,021.60          $  3.56          0.70

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Management Commentary

The Fund underperformed its benchmark, the MSCI ACWI Multiple Industries Select Index during the period. The Fund seeks to invest in companies furthering the transition to a lower carbon economy, allocating across five climate-oriented themes: sustainable food, resource efficiency, clean power, clean transportation, and climate resilience & biodiversity.

The salmon farming and processing company Salmar ASA was the largest contributor to performance. Shares of Salmar rose after the company received a permit for an offshore smart fish farm in the Norwegian Sea. The energy efficiency company, Ingersoll Rand contributed as well. The company benefitted from the positive expectations around the efficient reshoring of clean technology. A position in Darling Ingredients, Inc., which lost ground due to profit margin compression stemming from higher feed stock costs and lower prices for renewable diesel, was a key detractor.

 

 

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Fund Summary as of January 31, 2024 (continued)    BlackRock Future Climate and Sustainable Economy ETF

 

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry

   
Percent of
Total Investments
 
(a) 

Machinery

    15.9

Chemicals

    12.7  

Food Products

    12.0  

Containers & Packaging

    8.6  

Electric Utilities

    7.6  

Semiconductors & Semiconductor Equipment

    7.4  

Electrical Equipment

    7.2  

Commercial Services & Supplies

    5.5  

Independent Power and Renewable Electricity Producers

    3.7  

Electronic Equipment, Instruments & Components

    3.3  

Building Products

    2.8  

Construction & Engineering

    2.7  

Multi-Utilities

    2.2  

Paper & Forest Products

    2.2  

Ground Transportation

    1.8  

Software

    1.8  

Capital Markets

    1.3  

Other (each representing less than 1%)

    1.3  

 

  (a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

Security

   
Percent of
Total Investments
 
(a) 

NextEra Energy Inc.

    3.6

EDP Renovaveis SA

    3.2  

Kerry Group PLC, Class A

    3.1  

Avery Dennison Corp.

    3.1  

Republic Services Inc., Class A

    3.0  

Vestas Wind Systems A/S

    2.9  

Ag Growth International Inc.

    2.9  

DSM-Firmenich AG

    2.9  

Salmar ASA

    2.8  

Ecolab Inc.

    2.7  

 

 

F U N D S U M M A R Y

  5


Fund Summary as of January 31, 2024    BlackRock Future Financial and Technology ETF

 

Investment Objective

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

Performance

 

           Average Annual Total Returns             Cumulative Total Returns   
     6-Month
Total Returns
    1 Year      Since
Inception
           1 Year      Since
Inception
 

Fund NAV

    (0.28 )%      (1.42 )%       (6.56 )%        (1.42 )%       (9.46 )% 

Fund Market

    (0.17     (1.22      (6.37       (1.22      (9.18

MSCI ACWI Index(a)

    4.08       14.70        9.10               14.70        13.52  

The inception date of the Fund was August 16, 2022. The first day of secondary market trading was August 18, 2022.

 

  (a) 

MSCI All Country World Index captures large- and mid-cap representation across certain developed and emerging markets.

 

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

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $  1,000.00          $  997.20          $  3.46               $  1,000.00          $  1,021.70          $  3.51          0.69

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Management Commentary

The Fund posted a positive absolute return in the six-month period that ended on January 31, 2024. Inter & Co., a Brazilian digital bank, was a top contributor. The stock outperformed on the strength of robust earnings and a lower-than-expected impact from a regulatory change in Brazil. Global Payments, Inc., which reported above-consensus earnings and boosted its guidance, was another contributor of note.

CAB Payments Holdings PLC, a U.K.-listed provider of business-to-business cross-border payments and foreign exchange services, was the largest detractor. The company reported disappointing guidance due to weakness in both profit margins and transaction volumes. Worldline SA, a multinational payment and transactional services company, also detracted from results due to weaker-than-expected revenues and earnings, as well as the company’s cut to its 2024 guidance.

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry    
Percent of
Total Investments
 
(a) 

Financial Services

    50.9

Banks

    18.5  

Consumer Finance

    14.1  

Capital Markets

    13.9  

Software

    2.6  

TEN LARGEST HOLDINGS

 

Security    
Percent of
Total Investments
 
(a) 

Fiserv Inc.

    5.1

Global Payments Inc.

    5.1  

Fidelity National Information Services Inc.

    5.1  

WEX Inc.

    5.0  

Nuvei Corp.

    4.8  

Kaspi.KZ JSC

    4.8  

Rakuten Bank Ltd.

    4.4  

XP Inc., Class A

    3.9  

Pagseguro Digital Ltd., Class A

    3.7  

Repay Holdings Corp., Class A

    3.7  

 

(a) Excludes money market funds.

 

 

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Fund Summary as of January 31, 2024    BlackRock Future Health ETF

 

Investment Objective

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

Performance

 

           Average Annual Total Returns             Cumulative Total Returns   
     6-Month
Total Returns
    1 Year      Since
Inception
           1 Year      Since
Inception
 

Fund NAV

    0.34     3.47      (0.38 )%        3.47      (1.26 )% 

Fund Market

    0.56       3.71        (0.35       3.71        (1.16

MSCI ACWI Index(a)

    4.08       14.70        9.90         14.70        37.01  

MSCI ACWI SMID Growth Health Care Index (b)

    (3.90     (4.15      (4.16             (4.15      (13.22

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

 

  (a) 

MSCI All Country World Index captures large- and mid-cap representation across certain developed and emerging markets.

 

 

  (b) 

MSCI ACWI SMID Growth Health Care Index captures mid- and small-cap securities exhibiting overall growth style characteristics across certain developed markets and emerging markets countries.

 

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

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $  1,000.00          $  1,003.40          $  4.23               $  1,000.00          $  1,020.90          $  4.27          0.84

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Management Commentary

After losing ground in the first half of the period, small- to mid-cap healthcare stocks staged a significant rally from early November onward to close with a solid gain for the full six months. Both the early downturn and the subsequent recovery largely reflected shifting expectations for the interest rate outlook. Although the Fund posted a positive absolute return, it lagged the broad-based MSCI ACWI Index.

On an individual security basis, an out-of-benchmark position in Rhythm Pharmaceuticals, Inc. was the leading contributor to relative performance. The biotechnology company delivered positive third quarter earnings behind robust revenue growth for its appetite regulation therapy, IMCIVREE. An overweight position in the drug distributor Cencora, Inc., which gained ground on expectations for strong demand for GLP-1 weight-loss drugs, also made a meaningful contribution to results. On the other hand, an overweight position in Align Technology, Inc. was the largest individual detractor. The stock traded down after reporting lower sales for its orthodontic products.

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry    
Percent of
Total Investments
 
(a) 

Biotechnology

    39.5

Health Care Equipment & Supplies

    23.6  

Life Sciences Tools & Services

    17.1  

Health Care Providers & Services

    10.7  

Pharmaceuticals

    8.9  

Other (each representing less than 1%)

    0.2  

TEN LARGEST HOLDINGS

 

Security    
Percent of
Total Investments
 
(a) 

Boston Scientific Corp.

    3.6

Cencora Inc.

    3.4  

Amgen Inc.

    2.3  

Novo Nordisk A/S

    2.2  

Cooper Companies Inc. (The)

    2.1  

AbbVie Inc.

    2.1  

Intuitive Surgical Inc.

    2.1  

Align Technology Inc.

    2.0  

BioMarin Pharmaceutical Inc.

    2.0  

Argenx SE

    1.9  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D S U M M A R Y

  7


Fund Summary as of January 31, 2024    BlackRock Future Tech ETF

 

Investment Objective

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

Performance

 

           Average Annual Total Returns             Cumulative Total Returns   
     6-Month
Total Returns
    1 Year      Since
Inception
           1 Year      Since
Inception
 

Fund NAV

    3.17     20.02      (2.16 )%        20.02      (7.04 )% 

Fund Market

    3.03       19.84        (2.20       19.84        (7.17

MSCI ACWI Index(a)

    4.08       14.70        9.90         14.70        37.01  

MSCI ACWI SMID Growth Information Technology Index(b)

    5.02       21.87        9.23               21.87        34.24  

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

 

  (a) 

MSCI All Country World Index captures large- and mid-cap representation across certain developed and emerging markets.

 

 

  (b) 

MSCI ACWI SMID Growth Information Technology Index captures mid- and small-cap securities exhibiting overall growth style characteristics across certain Developed and Emerging Markets.

 

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

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $  1,000.00          $  1,031.70          $  4.49               $  1,000.00          $  1,020.70          $  4.47          0.88

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Management Commentary

After losing ground in the first half of the period, technology stocks staged a significant rally from early November onward to close with a solid gain for the full six months. Both the early downturn and the subsequent recovery largely reflected shifting expectations for the interest rate outlook. Tech equities also benefitted from improving fundamentals.

The Semiconductor designers NVIDIA Corp. and Alchip Technologies Ltd. were the largest individual contributors to the Fund’s relative performance. Both companies benefitted from a surge in demand for artificial intelligence chips from data center customers. Lattice Semiconductor Corp. and Wolfspeed, Inc., which were hurt by weaker demand in their industrial and automotive end markets, were the largest detractors.

 

 

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Fund Summary as of January 31, 2024 (continued)    BlackRock Future Tech ETF

 

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry

   
Percent of
Total Investments
 
(a) 

Semiconductors & Semiconductor Equipment

    34.0

Software

    26.4  

Technology Hardware, Storage & Peripherals

    6.8  

Electronic Equipment, Instruments & Components

    6.2  

IT Services

    5.4  

Entertainment

    4.7  

Interactive Media & Services

    3.7  

Professional Services

    2.2  

Broadline Retail

    1.9  

Media

    1.9  

Communications Equipment

    1.7  

Automobiles

    1.2  

Consumer Finance

    1.2  

Real Estate Management & Development

    1.1  

Other (each representing less than 1%)

    1.6  

TEN LARGEST HOLDINGS

 

Security

   
Percent of
Total Investments
 
(a) 

Nvidia Corp.

    6.1

Synopsys Inc.

    3.7  

ASM International NV

    2.6  

Palo Alto Networks Inc.

    2.4  

MongoDB Inc., Class A

    2.2  

SK Hynix Inc.

    2.1  

Pure Storage Inc., Class A

    2.0  

MercadoLibre Inc.

    1.9  

BE Semiconductor Industries NV

    1.9  

Informa PLC

    1.9  

 

 

  (a) 

Excludes money market funds.

 

 

 

F U N D S U M M A R Y

  9


Fund Summary as of January 31, 2024    BlackRock Future U.S. Themes ETF

 

Investment Objective

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

Performance

 

           Average Annual Total Returns             Cumulative Total Returns   
     6-Month
Total Returns
    1 Year      Since
Inception
           1 Year      Since
Inception
 

Fund NAV

    7.96     20.47      4.05       20.47      8.85

Fund Market

    8.23       20.81        4.12         20.81        8.99  

S&P 500® Index(a)

    6.43       20.82        3.78               20.82        8.21  

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

 

  (a) 

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

 

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

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $  1,000.00          $  1,079.60          $  3.14               $  1,000.00          $  1,022.10          $  3.05          0.60

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Management Commentary

After losing ground in the first half of the period, U.S. equities staged a significant rally from early November onward to close with a solid gain for the full six months. Both the early downturn and the subsequent recovery largely reflected shifting expectations for the interest rate outlook.

The Fund posted a strong total return and outpaced the S&P 500 Index. The semiconductor companies NVIDIA Corp. and Broadcom, Inc. were the two largest contributors to relative performance. Both stocks benefited from the continued development of generative artificial intelligence.

Underweights in Microsoft Corp. and Eli Lilly & Co. were the two largest detractors from relative performance. Microsoft benefited from the broader rally in technology stocks brought about by expectations for a more dovish U.S. Federal Reserve and a soft landing in the economy. Eli Lilly outperformed behind positive news on its Alzheimer’s treatment and growing optimism about the sales potential for its GLP-1 weight loss drug.

 

 

10  

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Fund Summary as of January 31, 2024 (continued)    BlackRock Future U.S. Themes ETF

 

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry

   
Percent of
Total Investments
 
(a) 

Software

    15.8

Semiconductors & Semiconductor Equipment

    9.9  

Financial Services

    7.6  

Technology Hardware, Storage & Peripherals

    7.6  

Specialty Retail

    5.3  

Health Care Equipment & Supplies

    5.0  

Health Care Providers & Services

    4.6  

Oil, Gas & Consumable Fuels

    4.6  

Interactive Media & Services

    4.3  

Hotels, Restaurants & Leisure

    4.1  

Broadline Retail

    4.0  

Electronic Equipment, Instruments & Components

    3.4  

Professional Services

    2.4  

Consumer Staples Distribution & Retail

    2.1  

Commercial Services & Supplies

    2.1  

Textiles, Apparel & Luxury Goods

    1.6  

Trading Companies & Distributors

    1.5  

Building Products

    1.4  

Construction Materials

    1.1  

Ground Transportation

    1.0  

Insurance

    1.0  

Aerospace & Defense

    1.0  

Food Products

    1.0  

Other (each representing less than 1%)

    7.6  

TEN LARGEST HOLDINGS

 

Security

   
Percent of
Total Investments
 
(a) 

Apple Inc.

    6.6

Nvidia Corp.

    6.1  

Microsoft Corp.

    4.5  

Broadcom Inc.

    3.5  

Berkshire Hathaway Inc., Class B

    3.4  

Amazon.com Inc.

    3.3  

McDonald’s Corp.

    3.0  

Mastercard Inc., Class A

    2.6  

Adobe Inc.

    2.2  

TJX Companies Inc. (The)

    2.1  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D S U M M A R Y

  11


Fund Summary as of January 31, 2024    BlackRock Large Cap Core ETF

 

Investment Objective

The BlackRock Large Cap Core ETF (the “Fund”) seeks to maximize total return.

Performance

 

           

  Cumulative Total Returns  

              

Since  

Inception  

Fund NAV

      13.55%

Fund Market

      13.62  

Russell 1000 Index(a)

          14.83  

The inception date of the Fund was October 24, 2023. The first day of secondary market trading was October 26, 2023.

 

  (a) 

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

 

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

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(10/24/23)
 
 
(a) 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(b) 
           

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(b) 
      

Annualized
Expense
Ratio
 
 
 
  $  1,000.00          $  1,135.50          $  1.02               $  1,000.00          $  1,023.40          $  1.78          0.35

 

  (a) 

Commencement of operations.

 
  (b) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 100/366 for actual expenses and 184/366 for hypothetical expenses (to reflect the six month period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

12  

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Fund Summary as of January 31, 2024 (continued)    BlackRock Large Cap Core ETF

 

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry

   
Percent of
Total Investments
 
(a) 

Software

    8.6

Interactive Media & Services

    8.3  

Semiconductors & Semiconductor Equipment

    8.0  

Health Care Providers & Services

    6.4  

Broadline Retail

    5.6  

Pharmaceuticals

    4.5  

Oil, Gas & Consumable Fuels

    4.2  

Machinery

    4.0  

Technology Hardware, Storage & Peripherals

    3.8  

Financial Services

    3.6  

Insurance

    3.6  

Capital Markets

    3.4  

Chemicals

    2.8  

Life Sciences Tools & Services

    2.6  

Media

    2.5  

Consumer Staples Distribution & Retail

    2.4  

Household Durables

    2.2  

IT Services

    1.9  

Banks

    1.9  

Specialty Retail

    1.8  

Health Care Equipment & Supplies

    1.7  

Electronic Equipment, Instruments & Components

    1.5  

Diversified Telecommunication Services

    1.5  

Automobile Components

    1.4  

Food Products

    1.2  

Building Products

    1.1  

Communications Equipment

    1.1  

Health Care Technology

    1.1  

Personal Care Products

    1.0  

Aerospace & Defense

    1.0  

Beverages

    1.0  

Consumer Finance

    1.0  

Other (each representing less than 1%)

    3.3  

TEN LARGEST HOLDINGS

 

Security

   
Percent of
Total Investments
 
(a) 

Microsoft Corp.

    8.6

Amazon.com Inc.

    5.6  

Apple Inc.

    3.8  

Meta Platforms Inc, Class A

    3.2  

Alphabet Inc., Class A

    2.9  

Berkshire Hathaway Inc., Class B

    2.6  

Comcast Corp., Class A

    2.5  

Advanced Micro Devices Inc.

    2.5  

Fortive Corp.

    2.4  

Novo Nordisk A/S

    2.3  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D S U M M A R Y

  13


Fund Summary as of January 31, 2024    BlackRock Large Cap Value ETF

 

Investment Objective

The BlackRock Large Cap Value ETF (the “Fund”) seeks to maximize total return.

Performance

 

                              Cumulative Total Returns   
                                  6-Month
Total Returns
    

Since

Inception

 

Fund NAV

             7.67      17.04

Fund Market

             7.92        17.17  

Russell 1000 Value Index(a)

                                     2.54        10.99  

The inception date of the Fund was May 19, 2023. The first day of secondary market trading was May 23, 2023.

 

  (a) 

The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000® companies with lower price-to-book ratios and lower expected growth values.

 

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

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $  1,000.00          $  1,076.70          $  2.87               $  1,000.00          $  1,022.40          $  2.80          0.55

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Management Commentary

U.S. equities delivered positive returns in the six-month period, reflecting anticipation of a soft landing for the economy and a moving forward of expectations for when the U.S. Federal Reserve would begin to cut short term interest rates. Large-cap value stocks as gauged by the Russell 1000 Value Index provided a modest positive return, while notably lagging their large-cap growth counterparts which benefited the most from the outlook for lower interest rates.

The Fund outperformed the Russell 1000 Value Index for the period. On an individual security basis, the Fund’s position in Cardinal Health was the single largest contributor to relative return. Cardinal Health is a distributor of pharmaceuticals, global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for healthcare facilities. The company delivered strong first quarter results and increased guidance meaningfully. Cardinal remains attractively valued and should benefit from long-term tailwinds that are not fully reflected in the stock price. An overweight position in Eli Lilly was also among the largest contributors to relative return, as sentiment around the pharmaceutical company was boosted over the period by strong demand for GLP-1 medications to treat obesity.

Conversely, an overweight position in Sealed Air was the single largest detractor from relative return. The protective packaging company was a strong beneficiary of increased ecommerce activity during the height of the pandemic. However, the company has more recently lost market share due to higher paper prices. The Fund’s position in Kosmos Energy was also among the leading detractors as the exploration & production company was negatively impacted by lower oil prices.

 

 

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Fund Summary as of January 31, 2024 (continued)    BlackRock Large Cap Value ETF

 

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry

   
Percent of
Total Investments
 
(a) 

Banks

    9.9

Health Care Providers & Services

    9.4  

Professional Services

    6.8  

Oil, Gas & Consumable Fuels

    6.2  

Capital Markets

    5.4  

Insurance

    4.7  

Health Care Equipment & Supplies

    4.5  

Electric Utilities

    3.7  

Media

    3.5  

Consumer Staples Distribution & Retail

    3.5  

Machinery

    3.1  

Financial Services

    3.1  

Food Products

    2.9  

Aerospace & Defense

    2.6  

Pharmaceuticals

    2.5  

Textiles, Apparel & Luxury Goods

    2.2  

Communications Equipment

    2.2  

IT Services

    2.1  

Diversified Telecommunication Services

    2.0  

Interactive Media & Services

    2.0  

Chemicals

    2.0  

Automobile Components

    1.9  

Automobiles

    1.8  

Beverages

    1.4  

Software

    1.4  

Containers & Packaging

    1.3  

Technology Hardware, Storage & Peripherals

    1.2  

Semiconductors & Semiconductor Equipment

    1.1  

Specialty Retail

    1.1  

Life Sciences Tools & Services

    1.1  

Electrical Equipment

    1.0  

Tobacco

    1.0  

Other (each representing less than 1%)

    1.4  

TEN LARGEST HOLDINGS

 

Security

   
Percent of
Total Investments
 
(a) 

Wells Fargo & Co.

    4.1

Citigroup Inc.

    3.7  

Cardinal Health Inc.

    3.2  

Leidos Holdings Inc.

    2.7  

L3Harris Technologies Inc.

    2.6  

Enterprise Products Partners LP

    2.5  

Laboratory Corp. of America Holdings

    2.5  

Cigna Group (The)

    2.5  

Comcast Corp., Class A

    2.5  

SS&C Technologies Holdings Inc.

    2.3  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D S U M M A R Y

  15


Fund Summary as of January 31, 2024    BlackRock U.S. Carbon Transition Readiness ETF

 

Investment Objective

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

Performance

 

           Average Annual Total Returns             Cumulative Total Returns   
     6-Month
Total Returns
    1 Year      Since
Inception
           1 Year      Since
Inception
 

Fund NAV

    5.81     19.31      6.72       19.31      20.16

Fund Market

    5.80       19.38        6.73         19.38        20.19  

Russell 1000® Index(a)

    6.30       20.23        6.92               20.23        20.72  

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

 

  (a) 

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

 

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

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $  1,000.00          $  1,058.10          $  0.72               $  1,000.00          $  1,024.40          $  0.71          0.14

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Management Commentary

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

For the six-month period that ended on January 31, 2024, the Fund returned 5.81% and underperformed the 6.30% return of the benchmark. The Clean Technology and Water Management pillars were the primary detractors. Market sentiment for Clean Technology suffered as interest rates continued to rise.

The Fund remained largely sector-neutral. It had a slight overweight in the healthcare sector and a small underweight in communication services. This positioning reflected the risk bands employed by the investment adviser’s portfolio management process. Given the tight controls on sector and risk factor exposures, Fund performance was primarily driven by security selection. The Fund delivered the best results in the materials sector, while it produced the weakest performance in information technology. The Fund benefited from the exclusion of traditional energy companies, which lagged at a time of moderating oil prices.

By maximizing exposure to companies with higher LCETR scores, the Fund demonstrated 35% lower carbon emission intensity and 22% higher exposure to green revenue than the benchmark as of December 29, 2023.

 

 

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Fund Summary as of January 31, 2024 (continued)    BlackRock U.S. Carbon Transition Readiness ETF

 

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Information Technology

    28.7

Financials

    13.6  

Health Care

    12.7  

Consumer Discretionary

    10.5  

Industrials

    9.5  

Communication Services

    8.2  

Consumer Staples

    5.8  

Energy

    3.6  

Real Estate

    2.7  

Materials

    2.7  

Utilities

    2.0  

 

  (a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Microsoft Corp.

    6.6

Apple Inc.

    6.6  

Amazon.com Inc.

    3.2  

Nvidia Corp.

    3.2  

Meta Platforms Inc, Class A

    2.0  

Alphabet Inc., Class A

    1.9  

Mastercard Inc., Class A

    1.8  

Alphabet Inc., Class C

    1.7  

Berkshire Hathaway Inc., Class B

    1.4  

Accenture PLC, Class A

    1.4  

 

 

F U N D S U M M A R Y

  17


Fund Summary as of January 31, 2024    BlackRock U.S. Equity Factor Rotation ETF

 

Investment Objective

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

Performance

 

          Average Annual Total Returns         Cumulative Total Returns  
     6-Month
Total Returns
    1 Year      Since
Inception
         1 Year     Since
Inception
 

Fund NAV

    8.45     28.81      12.93       28.81     80.87

Fund Market

    8.58       29.05        12.93         29.05       80.88  

MSCI USA Index(a)

    6.53       21.11        13.68           21.11       86.60  

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

 

  (a) 

The MSCI USA Index is designed to measure the performance of the large- and mid cap segments of the US market. The index covers approximately 85% of the free float-adjusted market capitalization in the United States.

 

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

Expense Example

 

    Actual           Hypothetical 5% Return  
 

 

 

     

 

 

      
     

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
    $ 1,000.00        $ 1,084.50        $ 1.05             $ 1,000.00        $ 1,024.10        $ 1.02          0.20

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Management Commentary

U.S. equities delivered positive returns in the six-month period, reflecting anticipation of a soft landing for the economy and a moving forward of expectations for when the U.S. Federal Reserve would begin to cut short term interest rates.

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

The Fund outperformed the MSCI USA Index for the period, as stock selection based on style tilts proved additive. Most notably, stocks held based on mega-capitalization, quality, and growth characteristics led contributions, fueled by investor enthusiasm around AI and expectations for rate cuts in 2024. An underweight to low volatility and an overweight to momentum were modestly additive. These contributions were only partly offset by underweight exposure to stocks with value characteristics.

In sector terms, positive contributors included overweight allocations to financials and information technology along with an underweight to industrials. In industry terms, overweights to software, banks and household durables were additive. Conversely, an overweight to the consumer discretionary sector and an underweight to healthcare weighed on relative performance. Overweights to the automobile and air freight & logistics industries detracted, along with an underweight to biotechnology.

 

 

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Fund Summary as of January 31, 2024 (continued)    BlackRock U.S. Equity Factor Rotation ETF

 

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Information Technology

    38.4

Consumer Discretionary

    19.5  

Financials

    15.1  

Industrials

    9.1  

Communication Services

    7.9  

Energy

    7.6  

Materials

    1.4  

Real Estate

    1.0  

Health Care

    0.0 (b) 

 

  (a) 

Excludes money market funds.

 
  (b) 

Rounds to less than 0.1%.

 

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Microsoft Corp.

    8.6

Apple Inc.

    7.2  

Nvidia Corp.

    5.4  

Amazon.com Inc.

    4.8  

Home Depot Inc. (The)

    4.3  

Exxon Mobil Corp.

    3.4  

Alphabet Inc., Class A

    3.1  

Visa Inc., Class A

    3.1  

Broadcom Inc.

    2.9  

United Parcel Service Inc., Class B

    2.9  

 

 

 

F U N D S U M M A R Y

  19


Fund Summary as of January 31, 2024    BlackRock World ex U.S. Carbon Transition Readiness ETF

 

Investment Objective

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

Performance

 

          Average Annual Total Returns         Cumulative Total Returns  
     6-Month
Total Returns
    1 Year      Since
Inception
         1 Year     Since
Inception
 

Fund NAV

    1.49     6.93      0.95       6.93     2.69

Fund Market

    1.50       6.98        1.01         6.98       2.87  

MSCI World ex USA Index(a)

    3.09       9.48        2.78           9.48       8.02  

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

 

  (a) 

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

 

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

Expense Example

 

    Actual     Hypothetical 5% Return  
 

 

 

     

 

 

      
     

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(08/01/23)
 
 
 
      

Ending
Account Value
(01/31/24)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
    $ 1,000.00        $ 1,014.90        $ 1.01             $ 1,000.00        $ 1,024.10        $ 1.02          0.20

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Management Commentary

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

For the six-month period that ended on January 31, 2024, the Fund returned 1.49% and underperformed the 3.09% return of the benchmark. The Clean Technology and Energy Management pillars detracted from performance, while Water Management added. Market sentiment for Clean Technology suffered as interest rates continued to rise.

The Fund remained largely sector-neutral. It had a slight overweight in the information technology sector and a slight underweight in materials. The Fund also continued to pursue a country-neutral approach. It had small overweights in Norway, and slight underweights in Germany. This positioning reflected the risk bands employed by the investment adviser’s portfolio management process. Given the tight controls on sector, geographic, and risk factor exposures, Fund performance was primarily driven by security selection. The Fund delivered the best results in the healthcare sector, while it produced the weakest performance in materials. The Fund benefited from the exclusion of traditional energy companies, which lagged at a time of moderating oil prices.

By maximizing exposure to companies with higher LCETR scores, the Fund demonstrated 38% lower carbon emission intensity and 45% higher exposure to green revenue than the benchmark as of December 29, 2023.

 

 

20  

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Fund Summary as of January 31, 2024 (continued)    BlackRock World ex U.S. Carbon Transition Readiness ETF

 

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    20.5

Industrials

    16.0  

Health Care

    12.0  

Consumer Discretionary

    11.3  

Information Technology

    9.4  

Consumer Staples

    8.7  

Materials

    7.3  

Energy

    5.7  

Communication Services

    4.0  

Utilities

    3.3  

Real Estate

    1.8  

 

  (a) 

Excludes money market funds.

 

GEOGRAPHIC ALLOCATION

 

   

Country/Geographic Region

   
Percent of
Total Investments
 
(a) 

Japan

    20.4

United Kingdom

    12.5  

France

    11.2  

Switzerland

    10.9  

Canada

    10.1  

Germany

    7.3  

Australia

    7.0  

Denmark

    3.1  

Netherlands

    3.0  

Spain

    2.9  

 

 

 

F U N D S U M M A R Y

  21


About Fund Performance

 

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

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

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

Disclosure of Expenses

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

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

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

 

 

22  

2 0 2 4 B L A C K R O C K  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)

January 31, 2024

  

BlackRock Future Climate and Sustainable Economy ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Building Products — 2.7%            

Cie. de Saint-Gobain

    623     $   44,050  

Kingspan Group PLC

    785       63,755  
   

 

 

 
          107,805  
Capital Markets — 1.3%            

Agronomics Ltd.

    402,758       51,424  
   

 

 

 
Chemicals — 12.0%            

Albemarle Corp.

    281       32,242  

DSM-Firmenich AG

    1,041       110,065  

Ecolab Inc.

    524       103,867  

Nutrien Ltd.

    1,272       63,435  

Robertet SA

    85       75,417  

Symrise AG, Class A

    993       102,452  
   

 

 

 
          487,478  
Commercial Services & Supplies — 5.2%            

Republic Services Inc., Class A

    670       114,650  

Waste Management Inc.

    519       96,342  
   

 

 

 
          210,992  
Construction & Engineering — 2.6%            

AECOM

    720       63,497  

Quanta Services Inc.

    210       40,750  
   

 

 

 
          104,247  
Containers & Packaging — 8.2%            

Avery Dennison Corp.

    601       119,869  

Crown Holdings Inc.

    917       81,154  

SIG Group AG

    3,503       73,326  

Smurfit Kappa Group PLC

    1,490       55,525  
   

 

 

 
          329,874  
Electric Utilities — 7.2%            

Enel SpA

    14,170       96,687  

NextEra Energy Inc.

    2,365       138,660  

SSE PLC

    2,583       55,013  
   

 

 

 
          290,360  
Electrical Equipment — 6.8%            

Canadian Solar Inc.(a)(b)

    2,283       50,454  

Contemporary Amperex Technology Co. Ltd., Class A

    1,400       29,546  

Schneider Electric SE

    423       83,098  

Vestas Wind Systems A/S(a)

    3,957       111,568  
   

 

 

 
          274,666  
Electronic Equipment, Instruments & Components — 3.1%  

Keyence Corp.

    100       44,740  

Rogers Corp.(a)

    292       33,659  

Samsung SDI Co. Ltd.

    177       49,121  
   

 

 

 
          127,520  
Food Products — 11.4%            

Bunge Global SA

    879       77,431  

Darling Ingredients Inc.(a)

    1,255       54,342  

Kerry Group PLC, Class A

    1,349       120,242  

Maple Leaf Foods Inc.

    1,946       37,112  

Salmar ASA

    1,932       107,246  

SunOpta Inc.(a)

    11,163       66,420  
   

 

 

 
          462,793  
Ground Transportation — 1.7%            

Union Pacific Corp.

    282       68,788  
   

 

 

 
Independent Power and Renewable Electricity Producers — 3.5%  

EDP Renovaveis SA

    7,658       124,008  
Security   Shares     Value  

Independent Power and Renewable Electricity Producers (continued)

 

Orron Energy AB

    27,088     $   18,632  
   

 

 

 
          142,640  
Machinery — 15.1%            

Ag Growth International Inc.

    2,625       110,236  

AGCO Corp.

    608       74,377  

Deere & Co.

    156       61,398  

Ingersoll Rand Inc.

    1,101       87,926  

John Bean Technologies Corp.

    610       60,244  

Kurita Water Industries Ltd.

    1,100       40,173  

Marel HF(c)

    5,648       20,814  

Spirax-Sarco Engineering PLC

    508       63,937  

Xylem Inc./NY

    806       90,627  
   

 

 

 
          609,732  
Metals & Mining — 0.5%            

SSAB AB, Class B

    2,691       20,555  
   

 

 

 
Multi-Utilities — 2.1%            

Veolia Environnement SA

    2,612       85,109  
   

 

 

 
Paper & Forest Products — 2.1%            

UPM-Kymmene OYJ

    2,313       84,129  
   

 

 

 
Professional Services — 0.8%            

SGS SA

    341       31,510  
   

 

 

 
Semiconductors & Semiconductor Equipment — 7.1%  

Analog Devices Inc.

    470       90,410  

First Solar Inc.(a)

    360       52,668  

Infineon Technologies AG

    1,574       57,383  

STMicroelectronics NV

    1,934       84,917  
   

 

 

 
          285,378  
Software — 1.7%            

Autodesk Inc.(a)

    270       68,529  
   

 

 

 

Total Common Stocks — 95.1%
(Cost: $3,960,972)

      3,843,529  
   

 

 

 

Warrants

   
Capital Markets — 0.0%            

Agronomics Ltd., (Issued 06/01/21, Exercisable at calendar quarter end, 1 Share for 1 Warrant, Expires 12/08/24, Strike Price GBP 0.30)

    329,052       4  
   

 

 

 

Total Warrants — 0.0%
(Cost: $—)

      4  
   

 

 

 

Total Long-Term Investments — 95.1%
(Cost: $3,960,972)

      3,843,533  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 6.0%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.51%(d)(e)(f)

    51,965       51,996  

 

 

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) (continued)

January 31, 2024

  

BlackRock Future Climate and Sustainable Economy ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Money Market Funds (continued)            

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.32%(d)(e)

    190,000     $ 190,000  
 

 

 

 

Total Short-Term Securities — 6.0%
(Cost: $241,996)

      241,996  
 

 

 

 

Total Investments — 101.1%
(Cost: $4,202,968)

      4,085,529  

Liabilities in Excess of Other Assets — (1.1)%

      (42,898
   

 

 

 

Net Assets — 100.0%

    $  4,042,631  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d)

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

 

(f) 

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

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer  

Value at

07/31/23

   

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

    Value at
01/31/24
   

Shares

Held at

01/31/24

    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 44,600     $ 7,379 (a)    $     $ 22     $ (5   $ 51,996       51,965     $ 187 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    190,000       0 (a)                        190,000       190,000       4,263        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 22     $ (5   $ 241,996       $ 4,450     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b)

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

 

Fair Value Hierarchy as of Period End

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

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

 

     

 

Level 1

 

      

 

Level 2

 

      

 

Level 3

 

      

 

Total

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 2,086,742        $ 1,756,787        $        $ 3,843,529  

Warrants

              4                   4  

Short-Term Securities

                 

Money Market Funds

     241,996                            241,996  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,328,738        $ 1,756,791        $    —        $ 4,085,529  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

24  

2 0 2 4 B L A C K R O C K  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)

January 31, 2024

  

BlackRock Future Financial and Technology ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Banks — 18.0%            

Axos Financial Inc.(a)

    1,537     $   85,196  

Bank of the Philippine Islands

    47,320       92,727  

Coastal Financial Corp./WA(a)

    908       36,229  

FinecoBank Banca Fineco SpA

    5,419       78,133  

Inter & Co. Inc., NVS

    14,646       74,732  

Live Oak Bancshares Inc.

    3,874       140,897  

NU Holdings Ltd.

    12,104       104,216  

Rakuten Bank Ltd., NVS(a)

    12,200       190,185  
   

 

 

 
          802,315  
Capital Markets — 13.5%            

Assetmark Financial Holdings Inc.(a)

    2,716       83,300  

B3 SA - Brasil, Bolsa, Balcao

    38,550       101,853  

Charles Schwab Corp. (The)

    2,069       130,181  

KIWOOM Securities Co. Ltd.(a)

    1,645       118,900  

XP Inc., Class A

    6,857       168,545  
   

 

 

 
          602,779  
Consumer Finance — 13.7%            

American Express Co.

    573       115,024  

Capital One Financial Corp.

    878       118,811  

Discover Financial Services

    636       67,111  

Kaspi.KZ JSC(b)

    2,240       206,080  

Oportun Financial Corp.(a)

    12,963       47,704  

Synchrony Financial

    1,443       56,089  
   

 

 

 
          610,819  
Financial Services — 49.4%            

Adyen NV(a)(c)

    40       50,167  

Block Inc.(a)

    729       47,392  

Cab Payments Holdings PLC(d)

    47,387       47,743  

Fidelity National Information Services Inc.

    3,526       219,529  

Fiserv Inc.(a)

    1,567       222,310  

FleetCor Technologies Inc.(a)

    82       23,774  

Global Payments Inc.

    1,654       220,362  

Mastercard Inc., Class A

    124       55,705  

Nexi SpA(a)(c)

    15,445       118,470  

Nuvei Corp.(c)

    8,532       207,327  

Pagseguro Digital Ltd., Class A

    12,572       161,802  

Payoneer Global Inc.(a)

    22,080       103,334  

Security   Shares     Value  

Financial Services (continued)

   

PayPal Holdings Inc.(a)

    1,837     $  112,700  

Repay Holdings Corp., Class A(a)

    20,345       159,505  

Shift4 Payments Inc., Class A(a)

    653       46,892  

Spaxs SpA

    13,507       74,502  

Visa Inc., Class A(d)

    200       54,652  

WEX Inc.(a)(d)

    1,050       214,610  

Worldline SA/France(a)(c)

    4,801       64,902  
   

 

 

 
          2,205,678  
Software — 2.5%            

Temenos AG, Registered

    1,079       109,810  
   

 

 

 

Total Long-Term Investments — 97.1%
(Cost: $4,137,453)

      4,331,401  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 10.0%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.51%(e)(f)(g)

    305,526       305,710  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.32%(e)(f)

    140,000       140,000  
   

 

 

 

Total Short-Term Securities — 10.0%
(Cost: $445,679)

      445,710  
   

 

 

 

Total Investments — 107.1%
(Cost: $4,583,132)

      4,777,111  

Liabilities in Excess of Other Assets — (7.1)%

      (315,013
   

 

 

 

Net Assets — 100.0%

    $ 4,462,098  
   

 

 

 

 

(a)

Non-income producing security.

(b) 

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

(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) 

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 January 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    

Value at

07/31/23

 

 

   

Purchases

at Cost

 

 

   

Proceeds

from Sale

 

 

   
Net Realized
Gain (Loss)
 
 
   

Change in

Unrealized

Appreciation

(Depreciation)

 

 

 

 

   
Value at
01/31/24
 
 
   

Shares
Held at
01/31/24
 
 
 
    Income      


Capital

Gain
Distributions

from

Underlying

Funds

 


 

 

 

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

    $244,167     $ 61,424 (a)    $     $ 108     $ 11       $305,710       305,526     $ 297 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    200,000             (60,000 )(a)                  140,000       140,000       6,887        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 108     $ 11       $445,710       $ 7,184     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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

  25


Schedule of Investments (unaudited) (continued)

January 31, 2024

  

BlackRock Future Financial and Technology 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

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 3,433,605        $ 897,796        $        $ 4,331,401  

Short-Term Securities

                 

Money Market Funds

     445,710                            445,710  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 3,879,315        $ 897,796        $    —        $ 4,777,111  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

26  

2 0 2 4 B L A C K R O C K  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)

January 31, 2024

  

BlackRock Future Health ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Biotechnology — 37.5%            

4D Molecular Therapeutics Inc.(a)

    184     $   3,174  

AbbVie Inc.

    487       80,063  

AC Immune SA

    1,540       4,943  

Alkermes PLC

    371       10,036  

Alnylam Pharmaceuticals Inc.(a)

    316       54,640  

Amgen Inc.

    279       87,679  

Apellis Pharmaceuticals Inc.(a)

    104       6,582  

Arcturus Therapeutics Holdings Inc.(a)

    296       9,759  

Arcus Biosciences Inc.(a)

    332       5,026  

Argenx SE, ADR(a)

    188       71,536  

Arrowhead Pharmaceuticals Inc.(a)

    160       5,136  

Astria Therapeutics Inc.(a)

    265       3,453  

Autolus Therapeutics PLC , ADR(a)

    949       5,713  

Beam Therapeutics Inc.(a)

    268       6,539  

BeiGene Ltd., ADR(a)

    171       25,347  

Bicycle Therapeutics PLC, ADR(a)(b)

    570       9,946  

Biogen Inc.(a)

    206       50,812  

Biohaven Ltd., NVS

    219       9,741  

BioMarin Pharmaceutical Inc.(a)

    853       75,132  

Biomea Fusion Inc.(a)(b)

    292       5,279  

Black Diamond Therapeutics Inc.(a)

    1,678       6,444  

Blueprint Medicines Corp.(a)

    667       53,046  

Bridgebio Pharma Inc.(a)

    125       4,286  

CapitaLand Investment Ltd./Singapore(a)

    1,025       20,992  

Cerevel Therapeutics Holdings Inc.(a)

    506       21,201  

CG oncology, Inc., NVS

    218       8,123  

CureVac NV

    656       2,355  

Dyne Therapeutics Inc.(a)

    559       11,963  

Exact Sciences Corp.(a)(b)

    170       11,118  

Exelixis Inc.(a)

    992       21,586  

Galapagos NV, ADR(a)

    296       11,121  

Genmab A/S(a)

    58       16,038  

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

    189       5,218  

Gilead Sciences Inc.

    343       26,843  

Halozyme Therapeutics Inc.(a)

    323       10,934  

Immatics NV, NVS

    531       6,032  

Immunocore Holdings PLC(a)

    643       46,482  

ImmunoGen Inc.(a)

    430       12,608  

Incyte Corp.(a)

    465       27,328  

Ionis Pharmaceuticals Inc.(a)(b)

    574       29,498  

Iovance Biotherapeutics Inc.(a)(b)

    320       2,474  

Karuna Therapeutics Inc.(a)

    44       13,790  

Keros Therapeutics Inc.(a)

    238       13,176  

Kinnate Biopharma Inc.(a)

    369       875  

Legend Biotech Corp., ADR(a)

    814       44,819  

MacroGenics Inc.(a)(b)

    361       5,162  

Merus NV

    825       29,436  

Monte Rosa Therapeutics Inc.(a)

    230       1,218  

MoonLake Immunotherapeutics, Class A, NVS(a)

    227       12,685  

Morphic Holding Inc.(a)

    154       4,880  

Neurocrine Biosciences Inc.(a)

    413       57,725  

Nuvalent Inc., Class A(a)

    480       36,082  

Prime Medicine Inc., NVS(a)(b)

    730       4,635  

Protagonist Therapeutics Inc.(a)

    809       20,233  

PTC Therapeutics Inc.(a)

    444       11,584  

Revolution Medicines Inc.(a)(b)

    369       10,240  

Rhythm Pharmaceuticals Inc.(a)

    1,064       46,933  

Rocket Pharmaceuticals Inc.(a)(b)

    634       18,215  

Roivant Sciences Ltd.

    1,780       17,800  

Sage Therapeutics Inc.(a)

    525       13,461  
Security   Shares     Value  
Biotechnology (continued)            

Sagimet Biosciences Inc., NVS

    845     $   8,011  

Sarepta Therapeutics Inc.(a)

    457       54,378  

Tenaya Therapeutics Inc.(a)

    245       1,030  

TScan Therapeutics Inc.(a)

    2,144       10,956  

Twist Bioscience Corp.(a)

    262       8,489  

Ultragenyx Pharmaceutical Inc.(a)

    238       10,498  

United Therapeutics Corp.(a)

    123       26,418  

Vaxcyte Inc.(a)(b)

    577       41,209  

Vertex Pharmaceuticals Inc.(a)

    54       23,403  

Viking Therapeutics Inc.(a)

    450       10,863  

Voyager Therapeutics Inc.(a)

    718       5,220  

Xenon Pharmaceuticals Inc.(a)

    882       39,884  
   

 

 

 
          1,489,534  
Electronic Equipment, Instruments & Components — 0.1%  

908 Devices Inc.(a)(b)

    448       3,172  
   

 

 

 
Health Care Equipment & Supplies — 22.5%            

Abbott Laboratories

    260       29,419  

Abiomed Inc., CVR(c)

    246       704  

Alcon Inc.

    361       27,115  

Align Technology Inc.(a)

    287       76,721  

Becton Dickinson and Co.

    172       41,075  

Boston Scientific Corp.(a)

    2,170       137,274  

CONMED Corp.

    187       17,877  

ConvaTec Group PLC(d)

    8,138       24,767  

Cooper Companies Inc. (The)

    216       80,574  

Dexcom Inc.(a)(b)

    158       19,173  

Edwards Lifesciences Corp.(a)

    135       10,593  

Glaukos Corp.(a)

    85       7,568  

Hologic Inc.(a)

    380       28,287  

Inspire Medical Systems Inc.(a)

    179       37,746  

Intuitive Surgical Inc.(a)

    208       78,670  

Masimo Corp.(a)

    468       60,344  

Novocure Ltd.

    385       5,359  

Nyxoah SA(b)

    946       10,236  

Penumbra Inc.(a)

    123       31,019  

Pulmonx Corp.(a)

    609       8,088  

Shockwave Medical Inc.(a)

    131       29,639  

SI-BONE Inc.(a)

    300       6,063  

STERIS PLC

    115       25,179  

Stryker Corp.

    93       31,200  

Tandem Diabetes Care Inc.(a)

    265       6,042  

Zimmer Biomet Holdings Inc.

    482       60,539  
   

 

 

 
          891,271  
Health Care Providers & Services — 10.2%            

Cencora Inc.

    556       129,370  

Centene Corp.(a)

    374       28,166  

Elevance Health Inc.

    67       33,060  

Encompass Health Corp.

    169       12,006  

Guardant Health Inc.(a)

    389       8,531  

Laboratory Corp. of America Holdings

    130       28,899  

McKesson Corp.

    103       51,488  

Molina Healthcare Inc.(a)

    145       51,684  

UnitedHealth Group Inc.

    119       60,897  
   

 

 

 
          404,101  
Health Care Technology — 0.0%            

Sophia Genetics SA

    413       1,896  
   

 

 

 
Industrial Conglomerates — 0.0%            

Frequency Therapeutics, Inc., NVS

    420       6  
   

 

 

 

 

 

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)

January 31, 2024

  

BlackRock Future Health ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Life Sciences Tools & Services — 15.3%

   

10X Genomics Inc., Class A(a)

    481     $ 20,043  

Avantor Inc.(a)

    1,250       28,738  

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

    38       12,194  

Bio-Techne Corp.

    870       61,178  

Bruker Corp.

    362       25,887  

Charles River Laboratories International Inc.(a)

    210       45,419  

Danaher Corp.

    254       60,937  

Gerresheimer AG

    457       46,591  

Lonza Group AG, Registered

    50       24,445  

Mettler-Toledo International Inc.(a)

    50       59,859  

Qiagen NV, NVS

    1,522       66,451  

Repligen Corp.(a)

    196       37,122  

Waters Corp.(a)

    189       60,047  

West Pharmaceutical Services Inc.

    155       57,820  
   

 

 

 
          606,731  
Pharmaceuticals — 8.5%            

Arvinas Inc.(a)

    445       18,467  

Axsome Therapeutics Inc.(a)

    75       6,752  

Catalent Inc.(a)

    737       38,059  

Elanco Animal Health Inc.(a)

    2,770       40,830  

Eli Lilly & Co.

    89       57,459  

Longboard Pharmaceuticals Inc.(a)

    58       1,232  

Merck & Co. Inc.

    415       50,124  

Mirati Therapeutics, Inc., NVS

    334       234  

Novo Nordisk A/S

    709       81,042  

Sanofi SA, ADR

    570       28,443  

Structure Therapeutics Inc.(a)(b)

    309       13,478  
   

 

 

 
          336,120  
   

 

 

 

Total Common Stocks — 94.1%
(Cost: $3,567,352)

      3,732,831  
   

 

 

 
Preferred Stocks            
Life Sciences Tools & Services — 0.9%            

Sartorius AG, Preference Shares, NVS

    99       36,115  
   

 

 

 

Total Preferred Stocks — 0.9%
(Cost: $39,237)

      36,115  
   

 

 

 

Total Long-Term Investments — 95.0%
(Cost: $3,606,589)

      3,768,946  
   

 

 

 
Security   Shares     Value  

Short-Term Securities

   
Money Market Funds — 8.7%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.51%(e)(f)(g)

    146,505     $ 146,593  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.32%(e)(f)

    200,000       200,000  
   

 

 

 

Total Short-Term Securities — 8.7%
(Cost: $346,496)

      346,593  
   

 

 

 

Total Investments — 103.7%
(Cost: $3,953,085)

      4,115,539  

Liabilities in Excess of Other Assets — (3.7)%

      (146,532
   

 

 

 

Net Assets — 100.0%

    $ 3,969,007  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

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.

(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 January 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    
Value at
07/31/23
 
 
   
Purchases
at Cost
 
 
   
Proceeds
from Sale
 
 
   
Net Realized
Gain (Loss)
 
 
   


Change in
Unrealized
Appreciation
(Depreciation)
 
 
 
 
   
Value at
01/31/24
 
 
   

Shares
Held at
01/31/24
 
 
 
    Income      





Capital

Gain
Distributions
from
Underlying
Funds

 


 
 
 
 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 519,473     $     $ (372,985 )(a)    $ 110     $ (5   $ 146,593       146,505     $ 769 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    260,000             (60,000 )(a)                  200,000       200,000       5,766        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 110     $ (5   $ 346,593       $ 6,535     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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.

 

 

 

28  

2 0 2 4 B L A C K R O C K  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)

January 31, 2024

  

BlackRock Future Health ETF

 

Derivative Financial Instruments Outstanding as of Period End

Forward Foreign Currency Exchange Contracts

 

           
Currency Purchased      Currency Sold      Counterparty    Settlement Date          Unrealized
Appreciation
(Depreciation)
 

JPY

     2,557,200      USD      17,879      Barclays Bank PLC    03/14/24       $ (392

JPY

     13,742,800      USD      96,086      Morgan Stanley & Co. International PLC    03/14/24         (2,108
                    

 

 

 
                       (2,500
                    

 

 

 
                       $(2,500
                    

 

 

 

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:

 

 

 
     Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

 

 

Liabilities — Derivative Financial Instruments

                    

Forward foreign currency exchange contracts

                    

Unrealized depreciation on forward foreign currency exchange contracts

   $      $      $      $ 2,500      $      $      $ 2,500  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

For the period ended January 31, 2024, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

 

 

Net Realized Gain (Loss) from

                    

Forward foreign currency exchange contracts

   $      $      $      $ (5,327    $      $      $ (5,327
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Forward foreign currency exchange contracts

   $      $      $      $ (4,635    $      $      $ (4,635
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Forward foreign currency exchange contracts:

  

Average amounts purchased — in USD

   $ 127,960   

Average amounts sold — in USD

   $ 17,346   

 

 

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

Derivative Financial Instruments - Offsetting as of Period End

The Fund’s derivative assets and liabilities (by type) were as follows:

 

 

 
     Assets      Liabilities  

 

 

Derivative Financial Instruments:

     

Forward foreign currency exchange contracts

   $      $ 2,500  
  

 

 

    

 

 

 

Total derivative assets and liabilities in the Statement of Assets and Liabilities

            2,500  

Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)

             
  

 

 

    

 

 

 

Total derivative assets and liabilities subject to an MNA

   $      $ 2,500  
  

 

 

    

 

 

 

 

 

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

  29


Schedule of Investments (unaudited) (continued)

January 31, 2024

  

BlackRock Future Health ETF

 

Derivative Financial Instruments - Offsetting as of Period End (continued)

The following table presents the Fund’s derivative liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral pledged by the Fund:

 

 

 

Counterparty

    



Derivative
Liabilities
Subject to
an MNA by
Counterparty
 
 
 
 
 
    

Derivatives
Available
for Offset
 
 
(a) 
    

Non-Cash
Collateral
Pledged
 
 
 
    

Cash
Collateral
Pledged
 
 
 
    

Net Amount
of Derivative
Liabilities
 
 
(b)(c) 

 

 

Barclays Bank PLC

   $ 392      $      $      $      $ 392  

Morgan Stanley & Co. International PLC

     2,108                             2,108  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 2,500      $      $      $      $ 2,500  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.

 
  (b) 

Net amount represents the net amount payable due to the counterparty in the event of default.

 
  (c) 

Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

 

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  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 3,539,004        $ 193,123        $ 704        $ 3,732,831  

Preferred Stocks

              36,115                   36,115  

Short-Term Securities

                 

Money Market Funds

     346,593                            346,593  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 3,885,597        $ 229,238        $ 704        $ 4,115,539  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Liabilities

                 

Foreign Currency Exchange Contracts

   $        $ (2,500      $        $ (2,500

 

  (a) 

Derivative financial instruments are forward foreign currency exchange contracts. Forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

30  

2 0 2 4 B L A C K R O C K  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)

January 31, 2024

  

BlackRock Future Tech ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Automobiles — 1.2%            

Tesla Inc.(a)

    870     $   162,942  
   

 

 

 

Broadline Retail — 1.9%

   

MercadoLibre Inc.(a)

    157       268,754  
   

 

 

 

Communications Equipment — 1.7%

   

Accton Technology Corp.

    14,000       235,516  
   

 

 

 

Consumer Finance — 1.2%

   

Kaspi.KZ JSC(b)

    1,771       162,932  
   

 

 

 

Electronic Equipment, Instruments & Components — 6.1%

 

Coherent Corp.(a)

    1,697       80,675  

E Ink Holdings Inc.

    8,000       53,054  

Ibiden Co. Ltd.

    2,500       125,800  

Jabil Inc.(c)

    1,910       239,304  

Lotes Co. Ltd.

    3,051       96,246  

TDK Corp.

    2,200       109,461  

Yageo Corp.

    9,000       158,302  
   

 

 

 
      862,842  
Entertainment — 4.6%            

Nintendo Co. Ltd.

    2,500       139,677  

Roku Inc.(a)

    1,014       89,293  

Spotify Technology SA(a)

    852       183,478  

Take-Two Interactive Software Inc.(a)

    1,466       241,788  
   

 

 

 
      654,236  
Financial Services — 0.6%            

Wise PLC, Class A(a)

    8,823       89,994  
   

 

 

 

Hotels, Restaurants & Leisure — 0.6%

   

Expedia Group Inc.(a)

    528       78,318  
   

 

 

 

Interactive Media & Services — 3.7%

   

Kakao Corp.(a)

    2,551       99,759  

NAVER Corp.(a)

    947       141,219  

Pinterest Inc., Class A(a)

    4,304       161,271  

Snap Inc., Class A, NVS(a)

    7,495       119,095  
   

 

 

 
      521,344  

IT Services — 5.4%

   

Cloudflare Inc., Class A(a)

    1,367       108,061  

Endava PLC, ADR(a)(c)

    1,101       77,918  

Globant SA

    348       82,062  

MongoDB Inc., Class A(a)

    766       306,798  

NEC Corp.

    1,500       98,017  

Squarespace Inc., Class A(a)

    1,498       46,438  

Twilio Inc., Class A(a)

    561       39,455  
   

 

 

 
          758,749  
Machinery — 0.4%            

Harmonic Drive Systems Inc.

    2,500       60,584  
   

 

 

 

Media — 1.9%

   

Informa PLC

    27,100       266,164  
   

 

 

 

Professional Services — 2.1%

   

Legalzoom.com Inc.(a)

    5,728       59,056  

Wolters Kluwer NV

    1,651       243,385  
   

 

 

 
      302,441  
Real Estate Management & Development — 1.0%  

Zillow Group Inc., Class C (a)

    2,565       145,795  
   

 

 

 
Semiconductors & Semiconductor Equipment — 33.7%  

Alchip Technologies Ltd.

    2,000       248,080  
Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

Alphawave IP Group PLC(a)

    52,719     $ 86,527  

Amkor Technology Inc.

    2,841       89,946  

ARM Holdings PLC, ADR(a)(c)

    1,560       110,245  

ASM International NV

    666       369,120  

ASPEED Technology Inc.

    1,000       98,220  

BE Semiconductor Industries NV

    1,786       268,397  

Credo Technology Group Holding Ltd.

    6,561       134,566  

Disco Corp.

    500       134,920  

eMemory Technology Inc.

    1,000       89,189  

Entegris Inc.

    1,037       122,055  

King Yuan Electronics Co. Ltd.

    33,000       88,150  

KLA Corp.

    329       195,439  

Kokusai Electric Corp., NVS

    2,900       74,134  

Lasertec Corp.

    600       156,257  

Lattice Semiconductor Corp.(a)

    2,150       130,849  

Marvell Technology Inc.

    3,165       214,271  

Monolithic Power Systems Inc.

    330       198,898  

Nvidia Corp.

    1,374       845,381  

Phison Electronics Corp.

    6,000       100,765  

Rambus Inc.(a)

    3,283       224,984  

Silicon Laboratories Inc.(a)

    449       55,389  

SK Hynix Inc.

    2,939       294,313  

Skyworks Solutions Inc.

    758       79,181  

SOITEC(a)

    1,169       168,954  

STMicroelectronics NV, ADR

    1,684       74,298  

Wolfspeed Inc.(a)(c)

    2,812       91,531  
   

 

 

 
        4,744,059  
Software — 26.2%            

Altair Engineering Inc., Class A(a)

    539       45,825  

Altium Ltd.

    8,187       263,014  

Appfolio Inc., Class A(a)

    323       70,821  

Appier Group Inc.(a)

    6,100       71,373  

Aspen Technology Inc.(a)

    203       38,974  

Atlassian Corp., NVS(a)

    429       107,151  

BILL Holdings Inc.(a)

    964       75,240  

Datadog Inc., Class A(a)

    1,180       146,839  

Freee KK(a)(c)

    3,400       64,002  

HashiCorp Inc.(a)

    3,834       83,811  

Informatica Inc. , Class A(a)

    3,067       92,010  

Kinaxis Inc.(a)

    929       113,129  

Klaviyo Inc.

    2,843       73,491  

Manhattan Associates Inc.(a)

    605       146,749  

Monday.com Ltd.(a)

    479       100,609  

Money Forward Inc.(a)

    1,400       54,645  

nCino Inc.(a)

    1,570       49,424  

Nemetschek SE

    1,135       104,731  

Nutanix Inc., Class A(a)

    701       39,396  

Palo Alto Networks Inc.(a)

    980       331,740  

PTC Inc.(a)

    526       95,022  

Q2 Holdings Inc.(a)

    901       38,338  

Sage Group PLC (The)

    6,206       92,394  

Samsara Inc.(a)(c)

    4,700