BlackRock ETF Trust

Table of Contents

Investment Objective

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

Performance

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

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

Expense Example

Portfolio Management Commentary

The Fund 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.

Portfolio Information

Investment Objective

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

Performance

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

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

Expense Example

Portfolio Management Commentary

The Fund 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

^(a) Excludes money market funds.

Investment Objective

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

Performance

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

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

Expense Example

Portfolio Management Commentary

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

Investment Objective

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

Performance

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

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

Expense Example

Portfolio Management Commentary

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.

Portfolio Information

Investment Objective

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

Performance

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

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

Expense Example

Portfolio Management Commentary

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.

Portfolio Information

Investment Objective

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

Performance

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

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

Expense Example

Portfolio Information

Investment Objective

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

Performance

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

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

Expense Example

Portfolio Management Commentary

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.

Portfolio Information

Investment Objective

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

Performance

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

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

Expense Example

Portfolio Management Commentary

The Fund’s Low Carbon Economy Transition Readiness (“LCETR”) model-driven investment process evaluates companies’ preparedness for the transition to a low-carbon economy across five “pillars” (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.

Portfolio Information

Investment Objective

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

Performance

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

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

Expense Example

Portfolio Management Commentary

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.

Portfolio Information

Investment Objective

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

Performance

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

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

Expense Example

Portfolio Management Commentary

The Fund’s Low Carbon Economy Transition Readiness (“LCETR”) model-driven investment process evaluates companies’ preparedness for the transition to a low-carbon economy across five “pillars” (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.

Portfolio Information

About Fund Performance

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

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

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, 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.