LOGO

  APRIL 30, 2022

 

 

    

  

2022 Annual Report

 

 

iShares Trust

·  iShares MSCI KLD 400 Social ETF | DSI | NYSE Arca

·  iShares MSCI USA ESG Select ETF | SUSA | NYSE Arca

·  iShares U.S. Basic Materials ETF | IYM | NYSE Arca

·  iShares U.S. Consumer Discretionary ETF | IYC | NYSE Arca

·  iShares U.S. Consumer Staples ETF | IYK | NYSE Arca

·  iShares U.S. Financial Services ETF | IYG | NYSE Arca

·  iShares U.S. Financials ETF | IYF | NYSE Arca

·  iShares U.S. Industrials ETF | IYJ | Cboe BZX


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of April 30, 2022 saw the emergence of significant challenges that disrupted the economic recovery and strong financial markets which characterized 2021. The U.S. economy shrank in the first quarter of 2022, ending the run of robust growth which followed reopening and the development of the COVID-19 vaccines. Rapid changes in consumer spending led to supply constraints and elevated inflation, which reached a 40-year high. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the invasion has presented challenges for both investors and policymakers.

Equity prices were mixed but mostly down, as persistently high inflation drove investors’ expectations for higher interest rates, particularly weighing on relatively high valuation growth stocks and economically sensitive small-capitalization stocks. Overall, small-capitalization U.S. stocks declined, while large-capitalization U.S. stocks were nearly flat. Both emerging market stocks and international equities from developed markets fell significantly, pressured by rising interest rates and a strengthening U.S. dollar.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose during the reporting period as increasing inflation drove investors’ expectations for higher interest rates. The corporate bond market also faced inflationary headwinds, and increasing uncertainty led to higher corporate bond spreads (the difference in yield between U.S. Treasuries and similarly-dated corporate bonds).

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is growing faster than expected, raised interest rates in March 2022, the first increase of this business cycle. Furthermore, the Fed wound down its bond-buying programs and raised the prospect of reversing the flow and reducing its balance sheet. Continued high inflation and the Fed’s new tone led many analysts to anticipate that the Fed will continue to raise interest rates multiple times throughout the year.

Looking ahead, however, the horrific war in Ukraine has significantly clouded the outlook for the global economy, leading to major volatility in energy and metal markets. Sanctions on Russia, Europe’s top energy supplier, and general wartime disruption are likely to drive already-high commodity prices even higher. We believe sharp increases in energy prices will exacerbate inflationary pressure while also constraining economic growth. Combating inflation without stifling a recovery, while buffering against ongoing supply and price shocks amid the ebb and flow of the pandemic, will be an especially challenging environment for setting effective monetary policy. Despite the likelihood of more rate increases on the horizon, we believe the Fed will err on the side of protecting employment, even at the expense of higher inflation.

In this environment, we favor an overweight to equities, as valuations have become more attractive and inflation-adjusted interest rates remain low. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and healthcare, are particularly attractive in the long term. We favor U.S. equities due to strong earnings momentum, while Japanese equities should benefit from supportive monetary and fiscal policy. We are underweight credit overall, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities for additional yield. We believe that international diversification and a focus on sustainability and quality can help provide portfolio resilience.

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

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of April 30, 2022
     
     6-Month    12-Month 
   

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

     (9.65)%      0.21%
   

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

  (18.38)     (16.87)
   

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

  (11.80)     (8.15)
   

Emerging market equities
(MSCI Emerging Markets Index)

  (14.15)     (18.33)
   

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

  0.07   0.08
   

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

  (10.29)     (8.86)
   

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

   (9.47)     (8.51)
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

   (7.90)     (7.88)
   

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

   (7.40)      (5.22)
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  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     21  

Shareholder Expenses

     21  

Schedules of Investments

     22  

Financial Statements

  

Statements of Assets and Liabilities

     52  

Statements of Operations

     54  

Statements of Changes in Net Assets

     56  

Financial Highlights

     60  

Notes to Financial Statements

     68  

Report of Independent Registered Public Accounting Firm

     79  

Important Tax Information (Unaudited)

     80  

Statement Regarding Liquidity Risk Management Program

     81  

Supplemental Information

     82  

Trustee and Officer Information

     83  

General Information

     86  

Glossary of Terms Used in this Report

     87  

 

 

 


Market Overview

 

iShares Trust

Domestic Market Overview

U.S. stocks declined for the 12 months ended April 30, 2022 (“reporting period”), when the Russell 3000® Index, a broad measure of U.S. equity market performance, returned -3.11%. Equities advanced early in the reporting period as high consumer spending drove robust economic growth and authorities eased most remaining coronavirus pandemic-related restrictions. Increased economic activity led to strong corporate earnings as companies reaped the benefits of the recovery. However, significant challenges emerged in the second half of the reporting period which erased earlier gains, including high inflation, rising interest rates, slower economic growth, and the impacts of Russia’s invasion of Ukraine.

The U.S. economy grew briskly over the final three quarters of 2021, powered primarily by consumers with strong household balance sheets. Record-high personal savings rates allowed consumers to spend at an elevated level throughout much of the reporting period, releasing pent-up demand for goods and services. Hiring increased as businesses restored capacity, and unemployment decreased substantially, falling to 3.6% in April 2022 — only marginally higher than the pre-pandemic rate of 3.5% in February 2020. However, growth stalled in the first quarter of 2022, and the economy contracted amid lower inventory investment and an inflation-driven decline in consumer sentiment.

The rapid increase in consumer spending drove a significant rise in inflation. Supply chains for many goods were disrupted by the pandemic and could not quickly adapt to the rapid rebound in demand. In one prominent example of this dynamic, a global shortage of semiconductors created bottlenecks in the production of many goods, including automobiles. Consequently, the price of used cars rose sharply during the reporting period and played a notable role in overall inflation. Oil prices also rose significantly as demand increased and a lack of investment constrained the supply of oil. The strong job market led to higher wages, particularly at the lower end of the market. These factors drove prices higher in many areas of the economy. By the end of the reporting period, the consumer price index, a widely used measure of prices in the U.S., grew at the fastest rate since 1982.

Rising inflation led to a shift in policy from the U.S. Federal Reserve Bank (“Fed”). As the reporting period began, the Fed was using accommodative monetary policy to stimulate the economy. Short-term interest rates were kept at near zero levels, and the Fed used bond-buying programs to stabilize debt markets. However, rising prices led the Fed to tighten monetary policy in the second half of the reporting period in an attempt to prevent runaway inflation. The Fed slowed and then ended its bond-buying activities and discussed plans to begin reducing its balance sheet by selling bonds later in 2022. In March 2022, it raised short-term interest rates and indicated that further increases could be necessary. Interest rates rose significantly in anticipation of further tightening, leading to higher borrowing costs for businesses.

Russia’s invasion of Ukraine in late February 2022 led to substantial disruptions to the global economy and increased uncertainty in financial markets, exacerbating inflation and weighing on U.S. corporate earnings. The invasion was met with widespread condemnation and sanctions imposed by many countries on the Russian state, businesses, and individuals. As Russia is a top producer of both oil and natural gas, global supply concerns led to sharp volatility in U.S. energy markets.

 

 

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


Fund Summary as of April 30, 2022    iShares® MSCI KLD 400 Social ETF

 

Investment Objective

The iShares MSCI KLD 400 Social ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics, as represented by the MSCI KLD 400 Social Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (0.95 )%       13.89      13.43       (0.95 )%       91.58      252.55

Fund Market

    (0.97      13.87        13.43         (0.97      91.47        252.56  

Index

    (0.71      14.24        13.89               (0.71      94.56        267.19  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(11/01/21)

      

Ending
      Account Value
(04/30/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(11/01/21)
 
 
 
      

Ending
  Account Value
(04/30/22)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

    Annualized
Expense
Ratio
 
 
 
   

$      1,000.00

       $        869.70          $        1.16               $      1,000.00          $      1,023.60          $        1.25          0.25

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  5


Fund Summary as of April 30, 2022   (continued)    iShares® MSCI KLD 400 Social ETF

 

Portfolio Management Commentary

Investor interest in the environmental, social, and governance (“ESG”) attributes of companies continued to grow during the reporting period as ESG investments reached a record level in 2021. The impact of the COVID-19 pandemic on public health was a motivating factor for many businesses to reexamine their ESG policies, and the pandemic’s disruption led many managers to regard environmental goals as more achievable. In August 2021, the Securities and Exchange Commission (“SEC”) approved a rule change requiring disclosures to encourage diversity on the boards of public companies. A rule proposed by the Department of Labor in October 2021 would expand the ability of retirement plan sponsors to offer ESG products, reversing the stance of the prior administration. And in March 2022, the SEC proposed a rule to require climate-related disclosures from public companies.

In this environment, the index reported negative performance for the reporting period. The information technology sector was the leading detractor from the Index’s return, driven primarily by the information technology services industry. Digital payments companies were pressured by inflation, which led consumers to reduce their spending, and by supply chain disruptions, which negatively impacted cross-border payments. The communication services sector also faced headwinds, particularly the media & entertainment industry. The resumption of in-person activities dampened demand for home entertainment providers.

In terms of relative performance, the Index outperformed the broader market, as represented by the MSCI USA Investable Market Index. Relative to the broader market, the ESG selection process leads to relatively minor overweight and underweight positions in stocks with higher or lower ESG characteristics, respectively. Consequently, the Index achieved an MSCI ESG quality score of 8.5 and an MSCI ESG fund rating of AA. Security selection in the consumer discretionary and communication services sectors were the largest contributors to the Index’s relative performance, while an underweight to the energy sector detracted from results. The Index’s largest overweight positions were in the information technology and consumer staples sectors and the largest underweights were in the healthcare and financials sectors. Those allocations contributed modestly to the Index’s return on a net basis.

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

   
Sector    

Percent of

Total Investments

 

(a) 

Information Technology

    32.3

Consumer Discretionary

    12.0  

Health Care

    11.0  

Communication Services

    9.7  

Financials

    9.4  

Industrials

    8.3  

Consumer Staples

    8.1  

Real Estate

    3.8  

Materials

    2.9  

Energy

    1.5  

Utilities

    1.0  

TEN LARGEST HOLDINGS

 

 

   
Security    

Percent of

Total Investments

 

(a) 

Microsoft Corp.

    10.3

Tesla Inc.

    3.9  

Alphabet Inc., Class A

    3.6  

Alphabet Inc., Class C

    3.4  

NVIDIA Corp.

    2.4  

Procter & Gamble Co. (The)

    2.0  

Visa Inc., Class A

    1.8  

Mastercard Inc., Class A

    1.7  

Home Depot Inc. (The)

    1.6  

Coca-Cola Co. (The)

    1.4  
  (a) 

Excludes money market funds.

 

 

 

6  

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


Fund Summary as of April 30, 2022    iShares® MSCI USA ESG Select ETF

 

Investment Objective

The iShares MSCI USA ESG Select ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics, as represented by the MSCI USA Extended ESG Select Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (2.77 )%       13.82      12.90       (2.77 )%      91.02      236.58

Fund Market

    (2.85      13.82        12.90         (2.85     91.02        236.54  

Index

    (2.53      14.17        13.36               (2.53     93.95        250.56  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(11/01/21)

      

Ending

      Account Value

(04/30/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

           

Beginning

Account Value

(11/01/21)

 

 

 

      

Ending

  Account Value

(04/30/22)


 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

      

    Annualized

Expense

Ratio

 

 

 

   

$      1,000.00

       $        862.40          $         1.15               $      1,000.00          $      1,023.60          $          1.25          0.25

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  7


Fund Summary as of April 30, 2022   (continued)    iShares® MSCI USA ESG Select ETF

 

Portfolio Management Commentary

Investor interest in the environmental, social, and governance (“ESG”) attributes of companies continued to grow during the reporting period as ESG investments reached a record level in 2021. The impact of the COVID-19 pandemic on public health was a motivating factor for many businesses to reexamine their ESG policies, and the pandemic’s disruption led many managers to regard environmental goals as more achievable. In August 2021, the Securities and Exchange Commission (“SEC”) approved a rule change requiring disclosures to encourage diversity on the boards of public companies. A rule proposed by the Department of Labor in October 2021 would expand the ability of retirement plan sponsors to offer ESG products, reversing the stance of the prior administration. And in March 2022, the SEC proposed a rule to require climate-related disclosures from public companies.

The index experienced negative performance for the year. The communications services sector detracted the most from the Index’s return, driven primarily by the media & entertainment industry. The resumption of in-person activities dampened demand for home entertainment providers. The industrials sector also declined, as supply chain disruptions due to semiconductor shortages weighed on earnings in the capital goods industry. Digital payments companies in the information technology sector were pressured by inflation, which lowered consumer spending, and supply chain complications, which negatively impacted cross-border payments.

On the upside, the consumer staples sector gained, driven primarily by the food products industry. Consumer staples companies are relatively resilient to inflation, as their products are necessities that consumers are hesitant to trim from household budgets. The energy sector was another contributor to the Index’s return amid rising oil and gas prices.

In terms of relative performance, the Index underperformed the broader market, as represented by the MSCI USA Index. Relative to the broader market, the ESG selection process leads to relatively minor overweight and underweight positions in stocks with higher or lower ESG characteristics, respectively. Consequently, the Index achieved an MSCI ESG quality score of 9.6 and an MSCI ESG fund rating of AAA. Stock selection in the healthcare and industrials sectors and an underweight to the energy sector detracted from the Index’s relative performance.

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

   
Sector    

Percent of

Total Investments

 

(a) 

Information Technology

    31.0

Health Care

    11.2  

Financials

    11.2  

Consumer Staples

    10.1  

Industrials

    10.0  

Consumer Discretionary

    9.5  

Communication Services

    5.9  

Real Estate

    3.7  

Materials

    3.4  

Energy

    2.7  

Utilities

    1.3  

TEN LARGEST HOLDINGS

 

 

   
Security    

Percent of

Total Investments

 

(a) 

Microsoft Corp.

    5.1

Apple Inc.

    5.0  

Alphabet Inc., Class A

    2.1  

Tesla Inc.

    2.0  

Home Depot Inc. (The)

    1.9  

NVIDIA Corp.

    1.8  

PepsiCo Inc.

    1.6  

Kellogg Co.

    1.5  

Texas Instruments Inc.

    1.5  

Johnson Controls International PLC

    1.4  
  (a)

Excludes money market funds.

 

 

 

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


Fund Summary as of April 30, 2022    iShares® U.S. Basic Materials ETF

 

Investment Objective

The iShares U.S. Basic Materials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the basic materials sector, as represented by the Russell 1000 Basic Materials RIC 22.5/45 Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    9.13      11.42      9.17              9.13     71.72      140.42

Fund Market

    9.12        11.43        9.17         9.12       71.78        140.52  

Index(a)

    9.58        11.83        9.60         9.58       74.91        150.13  

Dow Jones U.S. Basic Materials IndexTM

    7.67        11.44        9.41         7.67       71.87        145.78  

Russell 1000 Basic Materials RIC 22.5/45 Capped Index(b)

    N/A        N/A        N/A               N/A       N/A        N/A  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

  (a) 

Index performance through September 19, 2021 reflects the performance of the Dow Jones U.S. Basic Materials IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Basic Materials RIC 22.5/45 Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Basic Materials IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Russell 1000 Basic Materials RIC 22.5/45 Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through April 30, 2022 was 8.23%.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(11/01/21)

      

Ending

      Account Value

(04/30/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

           

Beginning

Account Value

(11/01/21)

 

 

 

      

Ending

  Account Value

(04/30/22)


 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

      

    Annualized

Expense

Ratio

 

 

 

   

$      1,000.00

       $      1,062.10          $        1.99               $      1,000.00          $      1,022.90          $        1.96          0.39

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  9


Fund Summary as of April 30, 2022   (continued)    iShares® U.S. Basic Materials ETF

 

Portfolio Management Commentary

Stocks of U.S. basic materials companies rose moderately during the reporting period. Metals and mining companies in particular benefited from high prices for commodities. Prices for steel and gold surged late in the reporting period as Russia’s invasion of Ukraine and subsequent Western sanctions disrupted trade flows and increased global economic uncertainty.

The U.S. steel industry contributed the most to the Index’s return amid record high steel prices. Demand for steel outstripped supply for much of 2021. Steel mills, which initially were slow to ramp up after pandemic-related shutdowns, struggled to meet growing demand during the economic recovery even as production neared full capacity. However, steel prices declined sharply in early 2022 after demand from major manufacturers such as automakers and appliance companies suddenly weakened. Supply concerns prompted a rebound in steel prices late in the reporting period as the war in Ukraine curtailed the import of key steel-making products such as pig iron, which is mixed with scrap iron to make steel. Steel company stocks rallied to record highs amid surging corporate profits, increased dividends to shareholders, and announced plans to buy back stocks.

The U.S. gold industry also boosted the Index’s performance. Gold prices retreated from record highs reached in 2020 during the pandemic but strengthened toward the end of the reporting period amid rising inflation rates and geopolitical uncertainty stemming from Russia’s invasion of Ukraine. Higher gold prices sent stocks in gold mining companies soaring despite rising production costs. Production disruptions stemming from coronavirus-related shutdowns escalated costs for gold mining companies. Cost inflation related to labor, energy, and materials also partially offset companies’ gains from higher gold prices.

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

   
Sector    

Percent of

Total Investments

 

(a) 

Chemicals

    53.6

Metals & Mining

    34.7  

Trading Companies & Distributors

    5.2  

Containers & Packaging

    5.0  

Other (each representing less than 1%)

    1.5  

TEN LARGEST HOLDINGS

 

 

   
Security    

Percent of

Total Investments

 

(a) 

Freeport-McMoRan Inc.

    8.6

Newmont Corp.

    8.5  

Air Products and Chemicals Inc.

    7.6  

Dow Inc.

    7.2  

Ecolab Inc.

    6.2  

Nucor Corp.

    6.2  

Fastenal Co.

    4.4  

International Flavors & Fragrances Inc.

    4.3  

LyondellBasell Industries NV, Class A

    4.0  

Mosaic Co. (The)

    3.5  

 

  (a) 

Excludes money market funds.

 

 

 

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


Fund Summary as of April 30, 2022       iShares® U.S. Consumer Discretionary ETF

 

Investment Objective

The iShares U.S. Consumer Discretionary ETF (the “Fund”) (formerly the iShares U.S. Consumer Services ETF) seeks to track the investment results of an index composed of U.S. equities in the consumer discretionary sector, as represented by the Russell 1000 Consumer Discretionary 40 Act 15/22.5 Daily Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (14.16 )%       10.92      13.58       (14.16 )%      67.90      257.19

Fund Market

    (14.18      10.91        13.57         (14.18     67.84        257.02  

Index(a)

    (13.85      11.39        14.07         (13.85     71.46        272.90  

Dow Jones U.S. Consumer Services Capped (TR) IndexTM(b)

    (15.90      N/A        N/A         (15.90     N/A        N/A  

Russell 1000 Consumer Discretionary 40 Act 15/22.5 Daily Capped Index(c)

    N/A        N/A        N/A               N/A       N/A        N/A  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

  (a) 

Index performance through June 23, 2019 reflects the performance of the Dow Jones U.S. Consumer Services Total Return Index. Index performance beginning on June 24, 2019 through September 19, 2021 reflects the performance of the Dow Jones U.S. Consumer Services Capped (TR) IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Consumer Discretionary 40 Act 15/22.5 Daily Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Consumer Services Capped (TR) IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Dow Jones U.S. Consumer Services Capped (TR) IndexTM was April 15, 2019. The cumulative total return for this index for the period April 15, 2019 2019 through April 30, 2022 was 26.15%.

 
  (c) 

The inception date of the Russell 1000 Consumer Discretionary 40 Act 15/22.5 Daily Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through April 30, 2022 was -14.98%.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(11/01/21)

      

Ending

Account Value

(04/30/22)

 

 

 

      

Expenses
Paid During

the Period

 
 

 (a) 

           

Beginning

Account Value

(11/01/21)

 

 

 

      


Ending

  Account Value
(04/30/22)

 


 

      


Expenses

Paid During
the Period 

 


(a) 

      

    Annualized

Expense

Ratio

 

 

 

   

$      1,000.00

       $        796.20          $      1.74               $      1,000.00          $      1,022.90          $        1.96          0.39

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  11


Fund Summary as of April 30, 2022   (continued)    iShares® U.S. Consumer Discretionary ETF

 

Portfolio Management Commentary

U.S. consumer discretionary stocks declined for the reporting period, led by declines in companies that posted substantial gains during the early part of the coronavirus pandemic. Rising inflation and corresponding interest rate increases by the Fed constrained consumer spending, casting doubt on the economy’s trajectory and weighing on the consumer discretionary sector.

Within the sector, the internet and the direct marketing retail industry detracted the most from the Index’s return. Online marketplaces for consumer goods, whose stocks surged early in the pandemic, declined. The industry’s largest deliverer of goods sold online reported its first quarterly earnings loss in seven years as overall online sales of U.S. retail goods fell steadily late in the reporting period. That sales decline coincided with rising inflation and the resumption of more in-store shopping by consumers, as pandemic restrictions eased and COVID-19 vaccination rates increased. Stocks in the consumer durables industry also declined amid challenges in production and supply chains, which negatively affected inventories in the textile and apparel industry.

The communication services sector also detracted from the Index’s return. In the media and entertainment industry, many companies sought to expand their video streaming services, but several of those companies, whose stocks surged early in the pandemic, encountered shrinking subscription growth in their streaming businesses throughout the reporting period.

On the upside, companies within the consumer staples sector contributed to the Index’s performance, benefiting broadly from the easing in pandemic-related restrictions. In particular, large hypermarket and supercenter chains advanced amid an increase in revenues and profits as shoppers increasingly returned to their stores throughout the reporting period.

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

Sector  

Percent of    

Total Investments(a)

 

Retailing

  34.0%

Consumer Services

  17.3   

Automobiles & Components

  12.4   

Media & Entertainment

  11.9   

Consumer Durables & Apparel

  9.0   

Food & Staples Retailing

  8.8   

Transportation

  3.5   

Household & Personal Products

  1.4   

Commercial & Professional Services

  1.0   

Other (each representing less than 1%)

  0.7   

 

TEN LARGEST HOLDINGS

 

 

Security  

Percent of    

Total Investments(a)

 

Amazon.com Inc.

  11.5%

Tesla Inc.

  8.6   

Home Depot Inc. (The)

  4.6   

Walmart Inc.

  4.5   

Costco Wholesale Corp.

  4.3   

McDonald’s Corp.

  4.0   

Walt Disney Co. (The)

  3.6   

Nike Inc., Class B

  3.3   

Lowe’s Companies Inc.

  2.9   

Target Corp.

  2.3   

 

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of April 30, 2022       iShares® U.S. Consumer Staples ETF

 

Investment Objective

The iShares U.S. Consumer Staples ETF (the “Fund”) (formerly the iShares U.S. Consumer Goods ETF) seeks to track the investment results of an index composed of U.S. equities in the consumer staples sector, as represented by the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    15.33      13.91      13.16       15.33      91.75      244.38

Fund Market

    15.38        13.91        13.16         15.38        91.75        244.38  

Index(a)

    15.82        14.38        13.65         15.82        95.81        259.41  

Dow Jones U.S. Consumer Goods IndexTM

    3.75        11.89        12.40         3.75        75.40        221.95  

Russell 1000 Consumer Staples RIC 22.5/45 Capped Index(b)

    N/A        N/A        N/A               N/A        N/A        N/A  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

  (a) 

Index performance through September 19, 2021 reflects the performance of the Dow Jones U.S. Consumer Goods IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Consumer Goods IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through April 30, 2022 was 14.41%.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(11/01/21)

      

Ending

Account Value

(04/30/22)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

           

Beginning

Account Value

(11/01/21)

 

 

 

      

Ending

  Account Value

(04/30/22)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

      

    Annualized

Expense

Ratio

 

 

 

   

$      1,000.00

       $       1,128.70          $       2.06               $      1,000.00          $      1,022.90          $        1.96          0.39

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  13


Fund Summary as of April 30, 2022   (continued)    iShares® U.S. Consumer Staples ETF

 

Portfolio Management Commentary

Consumer staples stocks in the U.S. advanced for the reporting period, outpacing the broader equity market as coronavirus pandemic restrictions eased, boosting demand for food, beverages, and other basic retail goods as shoppers returned to stores. As market volatility rose, investors turned to consumer staples, which are traditionally regarded as relatively steady businesses in volatile market environments.

The food, beverage, and tobacco industry contributed the most to the Index’s return. Soft drink manufacturers drove contribution amid robust demand, which boosted their revenues and profits. These companies generally remained upbeat about their growth prospects and financial outlooks, as they were able to raise prices to counteract surging raw material costs, suspension of business in Russia, and expectations of a slowdown in demand from Chinese markets fighting to contain the coronavirus pandemic. Tobacco companies also contributed to the Index’s performance. Sales of cigarettes continued their long-term decline, but tobacco firms compensated by continuing to raise prices, and investors were attracted to the relatively significant dividends these firms offer.

Food products companies contributed meaningfully to the Index’s performance, benefiting from the return to more typical retail shopping patterns. Despite advancing inflation, sales volumes of many well-known, household brands increased, raising profits. Sales of packaged foods and meats, including items ranging from candy to fresh chicken, increased, even as more restaurants reopened for regular business. Stocks of agricultural commodities firms also advanced, benefiting from increased demand and the disruption of crop shipments due to the war in Ukraine.

In the healthcare sector, healthcare distributors contributed notably to the Index’s return as demand for Covid-19 vaccines and tests boosted earnings. The consumer discretionary sector also contributed, as burgeoning demand for electrical vehicles supported auto manufacturers.

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

Sector  

Percent of    

Total Investments(a)

 

Food, Beverage & Tobacco

  58.9%

Household & Personal Products

  24.9   

Health Care Equipment & Services

  7.3   

Food & Staples Retailing

  6.8   

Materials

  2.1   

 

TEN LARGEST HOLDINGS

 

 

Security  

Percent of    

Total Investments(a)

 

Procter & Gamble Co. (The)

  17.1%

Coca-Cola Co. (The)

  11.1   

PepsiCo Inc.

  10.5   

Philip Morris International Inc.

  6.9   

CVS Health Corp.

  3.9   

Altria Group Inc.

  3.7   

Mondelez International Inc., Class A

  3.4   

Colgate-Palmolive Co.

  2.9   

Archer-Daniels-Midland Co.

  2.5   

Kimberly-Clark Corp.

  2.3   

 

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of April 30, 2022       iShares® U.S. Financial Services ETF

 

Investment Objective

The iShares U.S. Financial Services ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the financial services sector, as represented by the Dow Jones U.S. Financial Services IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (9.57 )%       10.32      13.09       (9.57 )%       63.38      242.02

Fund Market

    (9.58      10.31        13.09         (9.58      63.35        242.14  

Index

    (9.23      10.77        13.56               (9.23      66.74        256.59  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(11/01/21)

      

Ending

Account Value

(04/30/22)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

           

Beginning

Account Value

(11/01/21)

 

 

 

      

Ending

Account Value

(04/30/22)

 

 

 

      


Expenses

Paid During
the Period

 


 (a) 

      

    Annualized
Expense
Ratio
 
 
 
   

$      1,000.00

       $       822.60          $      1.76               $      1,000.00          $      1,022.90          $        1.96          0.39

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  15


Fund Summary as of April 30, 2022   (continued)    iShares® U.S. Financial Services ETF

 

Portfolio Management Commentary

U.S. financial services stocks declined significantly during the reporting period even as interest rates rose, which typically benefits companies that provide lending services. The slowing economy weighed on financial services companies as the impact of rising inflation diminished consumer and investor confidence, despite solid profits throughout much of the reporting period. The war in Ukraine exacerbated inflationary concerns, while also negatively impacting revenues.

Banks were the largest detractors from the Index’s return, as growth across multiple business areas softened. Investment banking revenues fell amid the worsening macroeconomic climate, as the pipeline for new initial public offerings slowed to its lowest tally in years. Trading revenues decreased as the Fed scaled back its pandemic-era asset purchases, though they later recovered as market volatility increased amid geopolitical tensions. Many banks also collectively set aside billions of dollars to offset potential losses from the Russia-Ukraine conflict and broader economic turmoil; these moves were reported as credit charges to the banks’ balance sheets, which reduced income. Additionally, inflation and labor shortages led to increased operating costs.

The diversified financials industry was also a notable detractor from the Index’s return. Despite increased profitability, asset managers felt the impact of reduced inflows toward the end of the reporting period, as rising inflation and the conflict in Ukraine sapped investor enthusiasm.

Companies within the data processing and outsourced services industry that process payments also weighed on the Index’s performance. Growth in cross-border transactions and digital payments, both linked to a post-pandemic recovery in travel volumes, were offset by the impact of weaker earnings outlooks, regulatory investigations, and decisions from large vendors to stop accepting some services in select regions.

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector  

Percent of   

Total Investments(a)

Diversified Financials

  41.0%

Banks

  40.2   

Software & Services

  18.5   

Insurance

  0.3   

TEN LARGEST HOLDINGS

 

   
Security  

Percent of   

Total Investments(a)

Visa Inc., Class A

  9.8%

JPMorgan Chase & Co.

  9.8   

Mastercard Inc., Class A

  8.7   

Bank of America Corp.

  7.1   

Wells Fargo & Co.

  4.7   

S&P Global Inc.

  3.7   

Morgan Stanley

  3.2   

American Express Co.

  3.0   

Goldman Sachs Group Inc. (The)

  2.9   

Charles Schwab Corp. (The)

  2.8   
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of April 30, 2022    iShares® U.S. Financials ETF

 

Investment Objective

The iShares U.S. Financials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the financials sector, as represented by the Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (4.11 )%       9.75     12.00       (4.11 )%       59.24      210.61

Fund Market

    (4.21      9.74       12.00               (4.21      59.16        210.54  

Index(a)

    (3.74      10.18       12.46         (3.74      62.40        223.71  

Dow Jones U.S. Financials Capped (TR) IndexTM(b)

    (1.41      N/A       N/A         (1.41      N/A        N/A  

Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index(c)

    N/A        N/A       N/A               N/A        N/A        N/A  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

  (a) 

Index performance through June 23, 2019 reflects the performance of the Dow Jones U.S. Financials Total Return Index. Index performance beginning on June 24, 2019 through September 19, 2021 reflects the performance of the Dow Jones U.S. Financials Capped (TR) IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Financials Capped (TR) IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Dow Jones U.S. Financials Capped (TR) IndexTM was April 15, 2019. The cumulative total return for this index for the period April 15, 2019 through April 30, 2022 was 35.15%.

 
  (c) 

The inception date of the Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through April 30, 2022 was -4.31%.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(11/01/21)

      


Ending

      Account Value
(04/30/22)

 


 

      

Expenses

Paid During

the Period

 

 

 (a) 

           

Beginning

Account Value

(11/01/21)

 

 

 

      

Ending

Account Value

(04/30/22)

 

 

 

      

Expenses

Paid During

the Period 

 

 

(a) 

      

    Annualized

Expense

Ratio

 

 

 

   

$      1,000.00

       $        855.70          $        1.79               $      1,000.00          $      1,022.90          $        1.96          0.39

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  17


Fund Summary as of April 30, 2022   (continued)    iShares® U.S. Financials ETF

 

Portfolio Management Commentary

U.S. financials stocks declined during the reporting period. The inflation rate rose to a 40-year high due to the coronavirus pandemic and rising energy prices and was further exacerbated by the Russian invasion of Ukraine. Yields on U.S. Treasuries rose significantly, and investors grew concerned that actions by the Fed to counter inflation, especially raising interest rates, will weigh on the economy.

While an increasing interest rate environment generally supports banks, bank stocks nonetheless detracted the most from the Index’s return. Bank profits fell as volatile equities markets led to fewer stock listings and acquisitions. Additionally, the ongoing war in Europe threatened to negatively impact global economic activity. Bank stocks were also constrained by the Fed’s reduction and eventual halt of asset purchases. Investor concern also rose that higher inflation will reduce investment and borrowing by businesses and increase loan defaults. In the diversified financials industry, the value of assets under management declined due to exposure to Russia and market volatility, raising the possibility of reduced performance fees.

The information technology sector was also a detractor from the Index’s return. Stocks of payment processing companies in the IT services industry declined amid investor concern about the European economy, reducing financial transaction volumes. Additionally, companies suspended services to Russia to comply with government sanctions, reducing revenues.

On the upside, the real estate sector contributed meaningfully to the Index’s performance. In the specialized real estate investment trusts (“REITs”) industry, the ongoing rollout of 5G technology benefited companies that rent space on towers for wireless communication equipment. Similarly, continued growth in global demand for data centers, accelerated by the pandemic, drove strong revenues of REITs that provide space in online data storage facilities.

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector  

Percent of    

Total Investments(a)

Diversified Financials

  43.7%

Banks

  33.0   

Insurance

  22.9   

Software & Services

  0.4   

TEN LARGEST HOLDINGS

 

   
Security  

Percent of    

Total Investments(a)

Berkshire Hathaway Inc., Class B

  10.4%

JPMorgan Chase & Co.

  6.8   

Bank of America Corp.

  5.3   

Wells Fargo & Co.

  4.3   

S&P Global Inc.

  3.4   

Morgan Stanley

  2.8   

Goldman Sachs Group Inc. (The)

  2.6   

Charles Schwab Corp. (The)

  2.6   

Citigroup Inc.

  2.5   

BlackRock Inc.

  2.3   
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of April 30, 2022    iShares® U.S. Industrials ETF

 

Investment Objective

The iShares U.S. Industrials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the industrials sector, as represented by the Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (10.75 )%       10.02   12.18%       (10.75 )%       61.18      215.74

Fund Market

    (10.86      10.00     12.18                (10.86      61.08        215.66  

Index(a)

    (10.41      10.47     12.66          (10.41      64.55        229.51  

Dow Jones U.S. Industrials IndexTM

    (11.12      10.30     12.57          (11.12      63.25        226.90  

Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index(b)

    N/A        N/A     N/A                N/A        N/A        N/A  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

  (a) 

Index performance through September 19, 2021 reflects the performance of the Dow Jones U.S. Industrials IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Industrials IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through April 30, 2022 was -13.42%.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

 

   

Actual

          Hypothetical 5% Return           
                                                              
   

Beginning

Account Value

(11/01/21)

      


Ending

      Account Value
(04/30/22)

 


 

      


Expenses

Paid During
the Period 

 


(a) 

           


Beginning

Account Value
(11/01/21)

 


 

      


Ending

  Account Value
(04/30/22)

 


 

      

Expenses

Paid During

the Period

 

 

 (a) 

      

    Annualized

Expense

Ratio

 

 

 

   

$      1,000.00

       $        880.90          $        1.82               $      1,000.00          $      1,022.90          $        1.96          0.39

 

  (a) 

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

 

 

 

F U N D   S U M M A R Y

  19


Fund Summary as of April 30, 2022   (continued)    iShares® U.S. Industrials ETF

 

Portfolio Management Commentary

U.S. industrials stocks declined significantly during the reporting period as persistent supply-chain shortages and outbreaks of new COVID-19 variants led to a reduction in manufacturing activity. Persistent inflation and tighter Fed monetary policy raised concerns about an economic slowdown and its effect on corporate earnings growth.

The information technology sector detracted the most from the Index’s return, particularly the data processing and outsourced services industry. Companies specializing in payments technology faced headwinds as the pandemic-era surge in e-commerce activity slowed following the end of the stimulus measures and amid rising inflation. A decrease in cross-border transactions, along with the loss of enterprise clients who opted to develop their own payments software, led to a slump in payment volumes. Lower-than-expected earnings reports and an unanticipated reduction in estimated user growth rates drove additional selling of payment company stocks. Although companies sought growth by expanding into new areas, such as the cryptocurrency market, concerns over potential regulation sapped investor enthusiasm. Fears over increased competition from financial technology startups also negatively impacted well established companies in the industry.

In the industrials sector, companies in the capital goods industry, which includes manufacturers of heavy equipment and machinery, weighed on the Index’s return as production issues and supply-chain constraints impacted revenues. Sales volumes at industrial machinery firms fell, even amid strong demand, as a result of continuing raw material shortages. The rising prices of these materials and a withdrawal from the Russian market as a result of the invasion of Ukraine also created headwinds. Industrial conglomerates also detracted from performance. Labor shortages, rising freight costs, and the limited availability of materials reduced revenues and growth prospects.

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector  

Percent of    

Total Investments(a)

Capital Goods

  42.3%

Software & Services

  28.6   

Transportation

  11.7   

Materials

  6.7   

Diversified Financials

  3.6   

Commercial & Professional Services

  3.4   

Technology Hardware & Equipment

  2.2   

Pharmaceuticals, Biotechnology & Life Sciences

  1.0   

Other (each representing less than 1%)

  0.5   

TEN LARGEST HOLDINGS

 

   
Security  

Percent of    

Total Investments(a)

Visa Inc., Class A

  7.2%

Mastercard Inc., Class A

  6.4   

Accenture PLC, Class A

  3.9   

Union Pacific Corp.

  3.1   

Raytheon Technologies Corp.

  2.9   

Honeywell International Inc.

  2.7   

United Parcel Service Inc., Class B

  2.7   

Caterpillar Inc.

  2.3   

American Express Co.

  2.2   

Deere & Co.

  2.1   
  (a) 

Excludes money market funds.

 

 

 

20  

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


About Fund Performance

 

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

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

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

Shareholder Expenses

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

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

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

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

 

 

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

  21


Schedule of Investments

April 30, 2022

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 0.0%            

Spirit AeroSystems Holdings Inc., Class A

    19,697     $ 828,062  
   

 

 

 
Air Freight & Logistics — 0.8%            

CH Robinson Worldwide Inc.

    24,330       2,582,629  

Expeditors International of Washington Inc.

    31,559       3,126,550  

United Parcel Service Inc., Class B

    136,508       24,568,710  
   

 

 

 
          30,277,889  
Airlines — 0.1%            

Delta Air Lines Inc.(a)

    29,485       1,268,740  

Southwest Airlines Co.(a)

    27,282       1,274,615  
   

 

 

 
      2,543,355  
Auto Components — 0.2%            

Aptiv PLC(a)

    49,930       5,312,552  

Autoliv Inc.

    15,606       1,149,850  

BorgWarner Inc.

    45,031       1,658,492  
   

 

 

 
      8,120,894  
Automobiles — 3.9%            

Harley-Davidson Inc.

    28,319       1,032,227  

Lucid Group Inc.(a)(b)

    77,533       1,401,797  

Rivian Automotive Inc., Class A(a)(b)

    33,637       1,017,183  

Tesla Inc.(a)

    159,696       139,056,889  
   

 

 

 
      142,508,096  
Banks — 1.7%            

Bank of Hawaii Corp.

    7,689       571,600  

Cathay General Bancorp.

    13,999       561,220  

Citizens Financial Group Inc.

    93,567       3,686,540  

Comerica Inc.

    24,575       2,012,692  

First Republic Bank/CA

    32,603       4,865,020  

Heartland Financial USA Inc.

    7,706       337,292  

Huntington Bancshares Inc./OH

    270,959       3,563,111  

International Bancshares Corp.

    9,602       382,064  

KeyCorp.

    174,411       3,367,876  

M&T Bank Corp.

    33,606       5,600,167  

Old National Bancorp./IN

    55,367       839,364  

PNC Financial Services Group Inc. (The)

    79,130       13,143,493  

Regions Financial Corp.

    177,574       3,679,333  

SVB Financial Group(a)(b)

    10,829       5,280,653  

Truist Financial Corp.

    249,924       12,083,825  

Umpqua Holdings Corp.

    40,690       673,013  

Zions Bancorp. NA

    29,310       1,656,308  
   

 

 

 
      62,303,571  
Beverages — 2.7%            

Coca-Cola Co. (The)

    767,657       49,598,319  

Keurig Dr Pepper Inc.

    133,105       4,978,127  

PepsiCo Inc.

    258,643       44,411,589  
   

 

 

 
      98,988,035  
Biotechnology — 3.0%            

AbbVie Inc.

    330,766       48,582,910  

Amgen Inc.

    105,452       24,590,352  

Biogen Inc.(a)

    27,521       5,708,956  

BioMarin Pharmaceutical Inc.(a)

    34,348       2,794,210  

Gilead Sciences Inc.

    234,780       13,931,845  

Vertex Pharmaceuticals Inc.(a)

    47,599       13,004,999  
   

 

 

 
      108,613,272  
Building Products — 0.9%            

A O Smith Corp.

    24,918       1,455,959  

Allegion PLC

    16,828       1,922,431  
Security   Shares     Value  

Building Products (continued)

 

Builders FirstSource Inc.(a)

    35,872     $ 2,208,639  

Carrier Global Corp.

    153,932       5,890,978  

Fortune Brands Home & Security Inc.

    25,436       1,812,315  

Johnson Controls International PLC

    131,953       7,900,026  

Lennox International Inc.

    6,144       1,309,839  

Masco Corp.

    45,729       2,409,461  

Owens Corning

    18,812       1,710,575  

Trane Technologies PLC

    44,408       6,212,235  
   

 

 

 
      32,832,458  
Capital Markets — 4.1%            

Ameriprise Financial Inc.

    20,966       5,566,263  

Bank of New York Mellon Corp. (The)

    146,942       6,180,381  

BlackRock Inc.(c)

    28,408       17,745,909  

Charles Schwab Corp. (The)

    271,300       17,995,329  

CME Group Inc.

    67,265       14,753,905  

FactSet Research Systems Inc.

    7,008       2,827,658  

Franklin Resources Inc.

    56,206       1,382,106  

Intercontinental Exchange Inc.

    105,434       12,210,312  

Invesco Ltd.

    64,721       1,189,572  

Moody’s Corp.

    31,342       9,919,116  

Morgan Stanley

    251,972       20,306,423  

Northern Trust Corp.

    36,829       3,795,228  

S&P Global Inc.

    66,315       24,967,598  

State Street Corp.

    68,250       4,570,703  

T Rowe Price Group Inc.

    42,110       5,181,214  
   

 

 

 
          148,591,717  
Chemicals — 2.3%            

Air Products and Chemicals Inc.

    41,389       9,687,923  

Albemarle Corp.

    21,967       4,235,897  

Axalta Coating Systems Ltd.(a)(b)

    37,980       963,553  

Ecolab Inc.

    47,861       8,104,782  

HB Fuller Co.

    9,694       646,590  

International Flavors & Fragrances Inc.

    47,696       5,785,525  

Linde PLC

    95,846       29,900,118  

Minerals Technologies Inc.

    6,079       386,685  

Mosaic Co. (The)

    68,296       4,263,036  

PPG Industries Inc.

    44,309       5,671,109  

Sherwin-Williams Co. (The)

    46,670       12,832,383  
   

 

 

 
      82,477,601  
Commercial Services & Supplies — 0.2%  

ACCO Brands Corp.

    16,336       119,743  

Copart Inc.(a)

    40,010       4,547,136  

Deluxe Corp.

    7,848       212,524  

HNI Corp.

    7,678       273,644  

Interface Inc.

    4,996       63,399  

Steelcase Inc., Class A

    15,343       179,973  

Tetra Tech Inc.

    10,120       1,409,514  
   

 

 

 
      6,805,933  
Communications Equipment — 1.3%  

Cisco Systems Inc.

    788,925       38,641,546  

CommScope Holding Co. Inc.(a)

    39,131       235,960  

F5 Inc.(a)

    11,463       1,919,021  

Motorola Solutions Inc.

    31,624       6,757,733  

Plantronics Inc.(a)

    7,888       314,416  
   

 

 

 
      47,868,676  
Construction & Engineering — 0.2%  

EMCOR Group Inc.

    9,945       1,058,943  

Granite Construction Inc.

    8,504       252,144  

MDU Resources Group Inc.

    38,588       994,027  

 

 

22  

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


Schedule of Investments   (continued)

April 30, 2022

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Construction & Engineering (continued)

 

Quanta Services Inc.

    26,701     $ 3,096,782  
   

 

 

 
      5,401,896  
Consumer Finance — 0.9%            

Ally Financial Inc.

    67,754       2,707,450  

American Express Co.

    123,264       21,535,453  

Discover Financial Services

    54,907       6,174,841  

Synchrony Financial

    102,516       3,773,614  
   

 

 

 
      34,191,358  
Containers & Packaging — 0.3%            

Avery Dennison Corp.

    15,568       2,811,581  

Ball Corp.

    60,675       4,924,383  

Sealed Air Corp.

    26,601       1,708,050  

Sonoco Products Co.

    18,405       1,139,454  
   

 

 

 
      10,583,468  
Distributors — 0.2%            

LKQ Corp.

    51,595       2,560,660  

Pool Corp.

    7,521       3,047,659  
   

 

 

 
      5,608,319  
Diversified Financial Services — 0.1%  

Equitable Holdings Inc.

    68,235       1,967,215  

Voya Financial Inc.

    20,170       1,273,534  
   

 

 

 
      3,240,749  
Diversified Telecommunication Services — 1.1%  

Liberty Global PLC, Class A(a)

    29,007       660,199  

Liberty Global PLC, Class C, NVS(a)

    62,825       1,488,953  

Lumen Technologies Inc.

    162,973       1,639,508  

Verizon Communications Inc.

    774,406           35,854,998  
   

 

 

 
      39,643,658  
Electric Utilities — 0.2%            

Eversource Energy

    64,523       5,639,310  
   

 

 

 
Electrical Equipment — 0.5%            

Acuity Brands Inc.

    6,481       1,117,843  

Eaton Corp. PLC

    74,573       10,814,576  

Rockwell Automation Inc.

    21,656       5,471,822  

Sensata Technologies Holding PLC(a)

    29,520       1,340,503  
   

 

 

 
      18,744,744  
Electronic Equipment, Instruments & Components — 0.8%  

Cognex Corp.

    33,179       2,243,896  

Corning Inc.

    151,379       5,327,027  

Flex Ltd.(a)

    88,152       1,453,626  

Itron Inc.(a)

    8,630       412,341  

Keysight Technologies Inc.(a)

    34,574       4,849,695  

TE Connectivity Ltd.

    61,143       7,629,424  

Trimble Inc.(a)

    46,668       3,112,756  

Zebra Technologies Corp., Class A(a)

    10,033       3,708,799  
   

 

 

 
      28,737,564  
Energy Equipment & Services — 0.2%  

Baker Hughes Co.

    154,222       4,783,966  

Core Laboratories NV

    9,052       235,352  

NOV Inc.

    73,722       1,336,580  

TechnipFMC PLC(a)

    77,388       535,525  
   

 

 

 
      6,891,423  
Entertainment — 1.4%            

Electronic Arts Inc.

    52,990       6,255,470  

Walt Disney Co. (The)(a)

    340,013       37,955,651  

Warner Bros. Discovery Inc.(a)

    414,200       7,517,730  
   

 

 

 
      51,728,851  
Security   Shares     Value  

Equity Real Estate Investment Trusts (REITs) — 3.5%

 

American Tower Corp.

    85,261     $ 20,549,606  

AvalonBay Communities Inc.

    26,095       5,936,091  

Boston Properties Inc.

    27,845       3,274,572  

Corporate Office Properties Trust

    21,502       573,888  

Digital Realty Trust Inc.

    53,055       7,752,397  

Duke Realty Corp.

    71,013       3,887,962  

Equinix Inc.

    16,759       12,051,062  

Equity Residential

    66,820       5,445,830  

Federal Realty Investment Trust

    13,025       1,524,707  

Healthpeak Properties Inc.

    101,208       3,320,634  

Host Hotels & Resorts Inc.(b)

    133,760       2,722,016  

Iron Mountain Inc.

    54,351       2,920,279  

Macerich Co. (The)

    39,531       496,114  

PotlatchDeltic Corp.

    12,305       681,574  

Prologis Inc.

    138,413       22,186,220  

SBA Communications Corp.

    20,377       7,073,060  

Simon Property Group Inc.

    61,400       7,245,200  

UDR Inc.

    57,935       3,082,721  

Ventas Inc.

    74,783       4,154,196  

Welltower Inc.

    81,568       7,407,190  

Weyerhaeuser Co.

    139,760       5,760,907  
   

 

 

 
          128,046,226  
Food & Staples Retailing — 0.4%  

Kroger Co. (The)

    132,348       7,141,498  

Sysco Corp.

    96,095       8,214,200  

United Natural Foods Inc.(a)

    10,260       440,462  
   

 

 

 
      15,796,160  
Food Products — 1.9%            

Archer-Daniels-Midland Co.

    104,571       9,365,379  

Bunge Ltd.

    26,251       2,969,513  

Campbell Soup Co.

    36,432       1,720,319  

Conagra Brands Inc.

    90,196       3,150,546  

Darling Ingredients Inc.(a)

    30,430       2,233,258  

General Mills Inc.

    113,196       8,006,353  

Hain Celestial Group Inc. (The)(a)(b)

    17,519       587,587  

Hormel Foods Corp.

    55,953       2,931,378  

Ingredion Inc.

    12,494       1,063,364  

JM Smucker Co. (The)

    20,342       2,785,430  

Kellogg Co.

    47,999       3,287,932  

Kraft Heinz Co. (The)

    126,334       5,385,618  

Lamb Weston Holdings Inc.

    27,407       1,811,603  

McCormick & Co. Inc./MD, NVS

    46,801       4,706,777  

Mondelez International Inc., Class A

    261,176       16,840,628  
   

 

 

 
      66,845,685  
Gas Utilities — 0.1%  

Atmos Energy Corp.

    24,842       2,817,083  

New Jersey Resources Corp.

    17,683       763,198  

UGI Corp.

    39,089       1,340,753  
   

 

 

 
      4,921,034  
Health Care Equipment & Supplies — 1.9%  

ABIOMED Inc.(a)

    8,508       2,438,222  

Align Technology Inc.(a)

    14,001       4,059,030  

Becton Dickinson and Co.

    53,174       13,144,081  

Cooper Companies Inc. (The)

    9,245       3,337,815  

DENTSPLY SIRONA Inc.

    41,059       1,641,949  

Dexcom Inc.(a)

    17,986       7,348,720  

Edwards Lifesciences Corp.(a)

    116,759       12,350,767  

Hologic Inc.(a)

    47,068       3,388,425  

IDEXX Laboratories Inc.(a)

    15,881       6,836,453  

 

 

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

  23


Schedule of Investments   (continued)

April 30, 2022

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Health Care Equipment & Supplies (continued)

 

Insulet Corp.(a)(b)

    12,930     $ 3,090,141  

ResMed Inc.

    27,211       5,441,384  

STERIS PLC

    18,715       4,193,096  
   

 

 

 
      67,270,083  
Health Care Providers & Services — 2.4%  

AmerisourceBergen Corp.

    29,273       4,428,712  

Anthem Inc.

    45,382       22,778,587  

Cardinal Health Inc.

    52,774       3,063,531  

Centene Corp.(a)

    109,025       8,781,964  

Cigna Corp.

    61,955       15,289,255  

DaVita Inc.(a)

    12,418       1,345,739  

HCA Healthcare Inc.

    46,580       9,993,739  

Henry Schein Inc.(a)

    25,820       2,094,002  

Humana Inc.

    24,027       10,681,443  

Laboratory Corp. of America Holdings(a)

    17,938       4,310,142  

MEDNAX Inc.(a)

    14,940       276,689  

Patterson Companies Inc.

    16,232       499,459  

Quest Diagnostics Inc.

    22,946       3,071,092  

Select Medical Holdings Corp.

    16,833       380,594  
   

 

 

 
          86,994,948  
Health Care Technology — 0.2%  

Cerner Corp.

    55,122       5,161,624  

Teladoc Health Inc.(a)(b)

    26,801       904,802  
   

 

 

 
      6,066,426  
Hotels, Restaurants & Leisure — 2.7%  

Aramark

    43,142       1,563,897  

Booking Holdings Inc.(a)

    7,693       17,003,915  

Choice Hotels International Inc.

    6,830       959,342  

Darden Restaurants Inc.

    24,206       3,188,656  

Domino’s Pizza Inc.

    6,804       2,299,752  

Hilton Worldwide Holdings Inc.(a)

    52,072       8,086,261  

Jack in the Box Inc.

    3,843       318,047  

Marriott International Inc./MD, Class A(a)

    51,786       9,193,051  

McDonald’s Corp.

    139,750       34,820,110  

Royal Caribbean Cruises Ltd.(a)(b)

    43,055       3,346,665  

Starbucks Corp.

    219,653       16,394,900  

Vail Resorts Inc.

    7,551       1,919,162  
   

 

 

 
      99,093,758  
Household Durables — 0.3%            

Garmin Ltd.

    28,871       3,168,304  

La-Z-Boy Inc.

    8,626       226,691  

Meritage Homes Corp.(a)

    6,985       576,612  

Mohawk Industries Inc.(a)

    10,752       1,516,677  

Newell Brands Inc.

    71,887       1,664,184  

Whirlpool Corp.

    11,368       2,063,519  
   

 

 

 
      9,215,987  
Household Products — 2.8%            

Church & Dwight Co. Inc.

    45,712       4,459,663  

Clorox Co. (The)

    23,059       3,308,275  

Colgate-Palmolive Co.

    150,002       11,557,654  

Kimberly-Clark Corp.

    62,940       8,737,960  

Procter & Gamble Co. (The)

    452,824       72,700,893  
   

 

 

 
      100,764,445  
Independent Power and Renewable Electricity Producers — 0.0%  

Ormat Technologies Inc.

    8,534       663,092  
   

 

 

 
Industrial Conglomerates — 0.4%  

3M Co.

    107,946       15,567,972  
   

 

 

 
Security   Shares     Value  

Insurance — 2.5%

   

Allstate Corp. (The)

    53,690     $ 6,793,933  

Arthur J Gallagher & Co.

    38,814       6,539,771  

Chubb Ltd.

    80,641       16,648,334  

Hartford Financial Services Group Inc. (The)

    63,748       4,457,898  

Lincoln National Corp.

    32,158       1,934,304  

Loews Corp.

    40,394       2,538,359  

Marsh & McLennan Companies Inc.

    94,363       15,258,497  

Principal Financial Group Inc.

    49,655       3,383,492  

Progressive Corp. (The)

    109,533       11,759,463  

Prudential Financial Inc.

    70,807       7,683,267  

Travelers Companies Inc. (The)

    46,082       7,882,787  

Willis Towers Watson PLC

    23,332       5,013,113  
   

 

 

 
      89,893,218  
Interactive Media & Services — 7.0%  

Alphabet Inc., Class A(a)

    56,278       128,437,089  

Alphabet Inc., Class C, NVS(a)

    53,500       123,014,155  
   

 

 

 
      251,451,244  
IT Services — 6.8%            

Accenture PLC, Class A

    118,136       35,483,329  

Akamai Technologies Inc.(a)

    29,765       3,342,014  

Automatic Data Processing Inc.

    78,890       17,212,220  

Cognizant Technology Solutions Corp., Class A

    98,233       7,947,050  

Fidelity National Information Services Inc.

    114,011       11,304,191  

International Business Machines Corp.

    167,897       22,197,662  

Mastercard Inc., Class A

    164,122       59,638,652  

Okta Inc.(a)

    27,674       3,301,785  

PayPal Holdings Inc.(a)

    208,961       18,373,941  

Visa Inc., Class A

    312,434       66,589,058  

Western Union Co. (The)

    75,526       1,265,816  
   

 

 

 
          246,655,718  
Leisure Products — 0.1%            

Callaway Golf Co.(a)

    23,105       506,924  

Hasbro Inc.

    24,577       2,164,251  

Mattel Inc.(a)

    65,482       1,591,867  
   

 

 

 
      4,263,042  
Life Sciences Tools & Services — 1.1%  

Agilent Technologies Inc.

    56,587       6,749,132  

Bio-Techne Corp.

    7,340       2,786,925  

Illumina Inc.(a)

    27,814       8,251,023  

IQVIA Holdings Inc.(a)

    35,792       7,802,298  

Mettler-Toledo International Inc.(a)

    4,298       5,490,824  

Waters Corp.(a)

    11,405       3,455,943  

West Pharmaceutical Services Inc.

    13,887       4,375,238  
   

 

 

 
      38,911,383  
Machinery — 2.8%            

AGCO Corp.

    11,912       1,517,589  

Caterpillar Inc.

    101,280       21,323,491  

Cummins Inc.

    26,768       5,064,238  

Deere & Co.

    55,126       20,812,821  

Dover Corp.

    27,014       3,600,966  

Flowserve Corp.

    23,840       779,806  

Fortive Corp.

    63,959       3,677,643  

Graco Inc.

    31,892       1,977,942  

IDEX Corp.

    14,295       2,713,477  

Illinois Tool Works Inc.

    58,790       11,588,097  

Lincoln Electric Holdings Inc.

    9,898       1,333,558  

Meritor Inc.(a)

    13,273       476,633  

Middleby Corp. (The)(a)

    10,387       1,598,456  

PACCAR Inc.

    64,767       5,378,899  

 

 

24  

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


Schedule of Investments   (continued)

April 30, 2022

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Machinery (continued)            

Parker-Hannifin Corp.

    24,073     $ 6,519,450  

Pentair PLC

    31,153       1,581,015  

Snap-on Inc.

    9,678       2,056,478  

Stanley Black & Decker Inc.

    30,588       3,675,148  

Tennant Co.

    3,538       228,484  

Timken Co. (The)

    12,761       735,544  

Westinghouse Air Brake Technologies Corp.

    33,242       2,988,788  

Xylem Inc./NY

    33,843       2,724,362  
   

 

 

 
      102,352,885  
Media — 0.2%            

Cable One Inc.

    1,015       1,183,693  

John Wiley & Sons Inc., Class A

    6,846       348,393  

New York Times Co. (The), Class A

    31,371       1,202,137  

Omnicom Group Inc.

    39,799       3,029,898  

Scholastic Corp., NVS

    4,929       181,633  
   

 

 

 
      5,945,754  
Metals & Mining — 0.3%            

Compass Minerals International Inc.

    6,231       368,439  

Newmont Corp.

    149,406       10,884,227  

Schnitzer Steel Industries Inc., Class A

    4,920       224,500  
   

 

 

 
          11,477,166  
Multi-Utilities — 0.5%            

Avista Corp.

    12,969       526,153  

Consolidated Edison Inc.

    66,357       6,153,948  

Sempra Energy

    59,700       9,633,192  
   

 

 

 
      16,313,293  
Multiline Retail — 0.6%            

Kohl’s Corp.

    28,203       1,632,390  

Nordstrom Inc.

    20,948       538,363  

Target Corp.

    89,697       20,509,219  
   

 

 

 
      22,679,972  
Oil, Gas & Consumable Fuels — 1.3%  

Cheniere Energy Inc.

    44,569       6,052,916  

Marathon Petroleum Corp.

    115,295       10,060,642  

ONEOK Inc.

    83,689       5,300,024  

Phillips 66

    89,898       7,799,550  

Valero Energy Corp.

    76,362       8,512,836  

Williams Companies Inc. (The)

    226,914       7,780,881  
   

 

 

 
      45,506,849  
Personal Products — 0.3%            

Estee Lauder Companies Inc. (The), Class A

    43,400       11,460,204  
   

 

 

 
Pharmaceuticals — 2.5%            

Bristol-Myers Squibb Co.

    415,064       31,241,867  

Jazz Pharmaceuticals PLC(a)

    11,457       1,835,641  

Merck & Co. Inc.

    472,472       41,903,542  

Zoetis Inc.

    88,589       15,702,400  
   

 

 

 
      90,683,450  
Professional Services — 0.3%  

ASGN Inc.(a)

    9,606       1,089,801  

Exponent Inc.

    9,873       945,932  

Heidrick & Struggles International Inc.

    3,415       109,143  

ICF International Inc.

    3,619       357,593  

Kelly Services Inc., Class A, NVS

    6,475       124,903  

ManpowerGroup Inc.

    10,279       927,166  

Resources Connection Inc.

    6,640       114,141  

Robert Half International Inc.

    20,693       2,034,329  

TransUnion

    35,956       3,146,869  
Security   Shares     Value  
Professional Services (continued)  

TrueBlue Inc.(a)

    6,566     $ 167,893  
   

 

 

 
      9,017,770  
Real Estate Management & Development — 0.2%  

CBRE Group Inc., Class A(a)

    62,650       5,202,456  

Jones Lang LaSalle Inc.(a)(b)

    9,503       2,078,591  

Realogy Holdings Corp.(a)(b)

    21,301       233,459  
   

 

 

 
      7,514,506  
Road & Rail — 1.7%            

AMERCO

    1,860       995,993  

ArcBest Corp.

    4,700       339,152  

Avis Budget Group Inc.(a)(b)

    7,392       1,978,617  

CSX Corp.

    415,258       14,259,960  

Knight-Swift Transportation Holdings Inc.

    29,600       1,417,544  

Norfolk Southern Corp.

    45,597       11,758,554  

Ryder System Inc.

    10,237       715,566  

Union Pacific Corp.

    120,197       28,160,955  
   

 

 

 
      59,626,341  
Semiconductors & Semiconductor Equipment — 6.8%  

Advanced Micro Devices Inc.(a)

    305,685       26,142,181  

Analog Devices Inc.

    100,435       15,505,155  

Applied Materials Inc.

    169,048       18,654,447  

Intel Corp.

    760,602       33,154,641  

Lam Research Corp.

    26,303       12,250,885  

Microchip Technology Inc.

    103,957       6,777,996  

NVIDIA Corp.

    467,822       86,766,946  

NXP Semiconductors NV

    49,782       8,507,744  

ON Semiconductor Corp.(a)

    80,852       4,213,198  

Skyworks Solutions Inc.

    31,026       3,515,246  

Texas Instruments Inc.

    172,682       29,399,111  
   

 

 

 
          244,887,550  
Software — 16.1%            

Adobe Inc.(a)

    88,991       35,235,987  

ANSYS Inc.(a)

    16,267       4,484,649  

Autodesk Inc.(a)

    41,150       7,788,872  

Black Knight Inc.(a)(b)

    28,774       1,893,042  

Cadence Design Systems Inc.(a)

    51,766       7,808,901  

Citrix Systems Inc.

    23,283       2,330,628  

Coupa Software Inc.(a)

    13,806       1,191,458  

Fair Isaac Corp.(a)

    5,133       1,917,227  

Fortinet Inc.(a)

    26,051       7,529,000  

Guidewire Software Inc.(a)(b)

    14,828       1,289,146  

HubSpot Inc.(a)

    8,380       3,179,623  

Intuit Inc.

    50,362       21,089,088  

Microsoft Corp.

    1,334,405       370,324,076  

NortonLifeLock Inc.

    109,242       2,735,420  

Oracle Corp.

    307,090       22,540,406  

Paycom Software Inc.(a)

    9,571       2,693,949  

PTC Inc.(a)

    20,952       2,392,928  

RingCentral Inc., Class A(a)

    14,533       1,233,125  

Roper Technologies Inc.(b)

    19,750       9,280,920  

salesforce.com Inc.(a)

    183,100       32,214,614  

ServiceNow Inc.(a)

    37,250       17,809,225  

Splunk Inc.(a)

    30,267       3,693,179  

Synopsys Inc.(a)

    28,508       8,175,809  

Teradata Corp.(a)

    20,114       831,714  

VMware Inc., Class A

    38,582       4,168,399  

Workday Inc., Class A(a)

    36,152       7,472,618  
   

 

 

 
      581,304,003  

 

 

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   (continued)

April 30, 2022

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Specialty Retail — 2.8%            

AutoNation Inc.(a)

    7,982     $ 925,194  

Best Buy Co. Inc.

    41,466       3,729,037  

Buckle Inc. (The)

    5,303       164,711  

CarMax Inc.(a)(b)

    30,230       2,593,130  

Foot Locker Inc.

    17,432       510,932  

GameStop Corp., Class A(a)(b)

    12,245       1,531,482  

Gap Inc. (The)

    36,080       448,114  

Home Depot Inc. (The)

    195,373       58,690,049  

Lowe’s Companies Inc.

    126,148       24,943,244  

ODP Corp. (The)(a)

    9,339       401,857  

Signet Jewelers Ltd.

    9,977       700,385  

Tractor Supply Co.

    21,248       4,280,410  

Ulta Beauty, Inc.(a)

    9,634       3,822,771  
   

 

 

 
          102,741,316  
Technology Hardware, Storage & Peripherals — 0.5%  

Dell Technologies Inc., Class C

    54,495       2,561,810  

Hewlett Packard Enterprise Co.

    245,251       3,779,318  

HP Inc.

    215,873       7,907,428  

Seagate Technology Holdings PLC

    37,537       3,079,536  

Xerox Holdings Corp.

    28,491       495,743  
   

 

 

 
      17,823,835  
Textiles, Apparel & Luxury Goods — 1.1%            

Capri Holdings Ltd.(a)

    27,958       1,333,597  

Columbia Sportswear Co.

    6,870       564,439  

Deckers Outdoor Corp.(a)

    4,846       1,287,824  

Hanesbrands Inc.

    66,215       878,011  

Nike Inc., Class B

    238,933       29,794,945  

PVH Corp.

    13,105       953,782  

Under Armour Inc., Class A(a)

    34,405       528,461  

Under Armour Inc., Class C, NVS(a)

    39,199       556,234  

VF Corp.

    62,665       3,258,580  

Wolverine World Wide Inc.

    14,886       295,040  
   

 

 

 
      39,450,913  
Thrifts & Mortgage Finance — 0.0%            

New York Community Bancorp. Inc.

    87,962       812,769  
   

 

 

 
Trading Companies & Distributors — 0.4%            

Air Lease Corp.

    20,601       829,808  
Security   Shares     Value  
Trading Companies & Distributors (continued)  

Applied Industrial Technologies Inc.

    6,970     $ 729,689  

Fastenal Co.

    107,910       5,968,502  

H&E Equipment Services Inc.

    6,439       228,456  

United Rentals Inc.(a)

    13,492       4,270,488  

WW Grainger Inc.

    8,206       4,103,246  
   

 

 

 
      16,130,189  
Water Utilities — 0.2%            

American Water Works Co. Inc.

    33,535       5,167,073  

Essential Utilities Inc.

    44,989       2,013,707  
   

 

 

 
      7,180,780  
   

 

 

 

Total Common Stocks — 99.8%
(Cost: $2,864,677,734)

      3,608,500,865  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 0.8%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.38%(c)(d)(e)

    25,429,018       25,429,018  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.34%(c)(d)

    2,630,000       2,630,000  
   

 

 

 
      28,059,018  
   

 

 

 

Total Short-Term Investments — 0.8%
(Cost: $28,059,591)

      28,059,018  
   

 

 

 

Total Investments in Securities — 100.6%
(Cost: $2,892,737,325)

 

    3,636,559,883  

Other Assets, Less Liabilities — (0.6)%

      (22,845,480
   

 

 

 

Net Assets — 100.0%

    $   3,613,714,403  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

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

 

 

26  

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


Schedule of Investments   (continued)

April 30, 2022

  

iShares® MSCI KLD 400 Social ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

   
    Affiliated Issuer   

Value at

04/30/21

    

Purchases

at Cost

   

Proceeds

from Sales

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

04/30/22

    

Shares

Held at

04/30/22

     Income    

Capital

Gain
Distributions

from

Underlying

Funds

     
 

 

   

    

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 13,210,182      $ 12,228,343 (a)    $     $ (8,483   $ (1,024   $ 25,429,018        25,429,018      $ 70,386 (b)    $         
 

BlackRock Cash Funds: Treasury, SL Agency Shares

     8,780,000              (6,150,000 )(a)                  2,630,000        2,630,000        1,927          
 

BlackRock Inc.

     20,060,560        6,610,090       (3,132,925     1,198,161       (6,989,977     17,745,909        28,408        451,823          
           

 

 

   

 

 

   

 

 

       

 

 

   

 

 

   
            $ 1,189,678     $ (6,991,001   $ 45,804,927         $ 524,136     $    
           

 

 

   

 

 

   

 

 

       

 

 

   

 

 

   

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description    Number of
Contracts
     Expiration
Date
    

Notional

Amount

(000)

    

Value/

Unrealized
Appreciation

(Depreciation)

 

 

 

Long Contracts

           

S&P 500 E-Mini Index

     22        06/17/22      $ 4,540      $ (278,841
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
    

Equity

Contracts

 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 278,841  
  

 

 

 

 

  (a) 

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

 

For the period ended April 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Equity

Contracts

 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 525,239  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (308,731
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 6,825,004       

 

 

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

 

 

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

  27


Schedule of Investments   (continued)

April 30, 2022

  

iShares® MSCI KLD 400 Social ETF

 

Fair Value Hierarchy as of Period End

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

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

 

                                                                                                   

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 3,608,500,865      $      $      $ 3,608,500,865  

Money Market Funds

     28,059,018                      28,059,018  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 3,636,559,883      $      $      $ 3,636,559,883  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Liabilities

           

Futures Contracts

   $ (278,841    $      $      $ (278,841
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

28  

2 0 2 2   I S H A R E S   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

April 30, 2022

  

iShares® MSCI USA ESG Select ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Air Freight & Logistics — 1.7%

   

CH Robinson Worldwide Inc.

    191,482     $ 20,325,814  

Expeditors International of Washington Inc.

    436,403       43,234,445  
   

 

 

 
      63,560,259  
Auto Components — 0.4%            

Aptiv PLC(a)

    133,153       14,167,479  
   

 

 

 
Automobiles — 2.2%            

Lucid Group Inc.(a)(b)

    138,029       2,495,564  

Rivian Automotive Inc., Class A(a)(b)

    92,709       2,803,520  

Tesla Inc.(a)

    86,125       74,994,205  
   

 

 

 
      80,293,289  
Banks — 2.2%            

Huntington Bancshares Inc./OH

    1,677,852       22,063,754  

KeyCorp.

    279,732       5,401,625  

PNC Financial Services Group Inc. (The)

    57,210       9,502,581  

Regions Financial Corp.

    1,276,974       26,458,901  

SVB Financial Group(a)(b)

    24,700       12,044,708  

Truist Financial Corp.

    119,785       5,791,605  
   

 

 

 
      81,263,174  
Beverages — 3.0%            

Coca-Cola Co. (The)

    709,215       45,822,381  

Keurig Dr Pepper Inc.

    209,228       7,825,127  

PepsiCo Inc.

    330,677       56,780,548  
   

 

 

 
          110,428,056  
Biotechnology — 2.1%            

Amgen Inc.

    117,783       27,465,818  

Biogen Inc.(a)

    31,394       6,512,371  

Gilead Sciences Inc.

    345,750       20,516,805  

Vertex Pharmaceuticals Inc.(a)

    81,217       22,190,109  
   

 

 

 
      76,685,103  
Building Products — 2.6%            

Carrier Global Corp.

    142,645       5,459,024  

Fortune Brands Home & Security Inc.

    49,084       3,497,235  

Johnson Controls International PLC

    858,434       51,394,444  

Owens Corning

    84,753       7,706,590  

Trane Technologies PLC

    204,942       28,669,336  
   

 

 

 
      96,726,629  
Capital Markets — 5.5%            

Bank of New York Mellon Corp. (The)

    435,190       18,304,092  

BlackRock Inc.(c)

    75,690       47,282,029  

CME Group Inc.

    20,996       4,605,263  

FactSet Research Systems Inc.

    16,768       6,765,720  

Invesco Ltd.

    335,214       6,161,233  

Moody’s Corp.

    57,439       18,178,295  

Morgan Stanley

    425,846       34,318,929  

Northern Trust Corp.

    233,324       24,044,038  

S&P Global Inc.

    59,345       22,343,393  

State Street Corp.

    186,624       12,498,209  

T Rowe Price Group Inc.

    55,396       6,815,924  
   

 

 

 
      201,317,125  
Chemicals — 2.5%            

DuPont de Nemours Inc.

    58,672       3,868,245  

Ecolab Inc.

    233,098       39,472,815  

International Flavors & Fragrances Inc.

    87,080       10,562,804  

Linde PLC

    65,660       20,483,294  

Mosaic Co. (The)

    222,329       13,877,776  
Security   Shares     Value  

Chemicals (continued)

   

PPG Industries Inc.

    26,785     $ 3,428,212  
   

 

 

 
      91,693,146  
Communications Equipment — 1.2%            

Cisco Systems Inc.

    825,051       40,410,998  

Motorola Solutions Inc.

    19,635       4,195,803  
   

 

 

 
      44,606,801  
Consumer Finance — 1.2%            

Ally Financial Inc.

    164,268       6,564,149  

American Express Co.

    211,573       36,963,919  
   

 

 

 
      43,528,068  
Containers & Packaging — 0.6%            

Amcor PLC

    981,730       11,643,318  

Ball Corp.

    115,152       9,345,736  
   

 

 

 
      20,989,054  
Distributors — 0.2%            

LKQ Corp.

    179,025       8,885,011  
   

 

 

 
Diversified Telecommunication Services — 0.6%        

Verizon Communications Inc.

    500,756       23,185,003  
   

 

 

 
Electric Utilities — 0.8%            

Eversource Energy

    327,162       28,593,959  
   

 

 

 
Electrical Equipment — 0.2%            

Plug Power Inc.(a)

    167,478       3,520,388  

Sunrun Inc.(a)

    162,583       3,248,408  
   

 

 

 
      6,768,796  
Electronic Equipment, Instruments & Components — 1.0%  

Cognex Corp.

    62,436       4,222,547  

Keysight Technologies Inc.(a)

    77,449       10,863,771  

Teledyne Technologies Inc.(a)

    9,660       4,168,773  

Trimble Inc.(a)

    183,178       12,217,973  

Zebra Technologies Corp., Class A(a)

    12,841       4,746,804  
   

 

 

 
      36,219,868  
Energy Equipment & Services — 1.2%            

Baker Hughes Co.

    600,268       18,620,313  

Schlumberger NV

    608,589       23,741,057  
   

 

 

 
      42,361,370  
Entertainment — 1.1%            

Electronic Arts Inc.

    73,056       8,624,261  

Netflix Inc.(a)

    12,005       2,285,272  

Roku Inc.(a)

    24,793       2,303,270  

Walt Disney Co. (The)(a)

    219,585       24,512,273  

Warner Bros. Discovery Inc.(a)

    166,001       3,012,918  
   

 

 

 
      40,737,994  
Equity Real Estate Investment Trusts (REITs) — 3.1%        

American Tower Corp.

    89,337       21,532,004  

Crown Castle International Corp.

    24,315       4,503,381  

Equinix Inc.

    31,348       22,541,720  

Healthpeak Properties Inc.

    605,041       19,851,395  

Iron Mountain Inc.

    91,658       4,924,784  

Prologis Inc.

    157,129       25,186,208  

Ventas Inc.

    115,602       6,421,691  

Welltower Inc.

    85,332       7,748,999  
   

 

 

 
          112,710,182  
Food & Staples Retailing — 0.3%            

Kroger Co. (The)

    176,118       9,503,327  
   

 

 

 

 

 

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   (continued)

April 30, 2022

  

iShares® MSCI USA ESG Select ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Food Products — 4.3%            

Bunge Ltd.

    251,955     $ 28,501,150  

Campbell Soup Co.

    246,831       11,655,360  

General Mills Inc.

    531,059       37,561,803  

Kellogg Co.

    811,579       55,593,161  

McCormick & Co. Inc./MD, NVS

    233,529       23,486,012  
   

 

 

 
          156,797,486  
Gas Utilities — 0.1%            

UGI Corp.

    126,163       4,327,391  
   

 

 

 
Health Care Equipment & Supplies — 2.4%            

Align Technology Inc.(a)

    7,608       2,205,635  

Dexcom Inc.(a)

    20,859       8,522,570  

Edwards Lifesciences Corp.(a)

    229,952       24,324,323  

Hologic Inc.(a)

    119,543       8,605,901  

IDEXX Laboratories Inc.(a)

    41,848       18,014,727  

Insulet Corp.(a)

    46,872       11,201,939  

ResMed Inc.

    34,356       6,870,169  

STERIS PLC

    44,288       9,922,727  
   

 

 

 
      89,667,991  
Health Care Providers & Services — 1.3%            

DaVita Inc.(a)

    58,930       6,386,244  

HCA Healthcare Inc.

    65,632       14,081,346  

Humana Inc.

    14,802       6,580,377  

Laboratory Corp. of America Holdings(a)

    16,316       3,920,409  

Quest Diagnostics Inc.

    125,379       16,780,725  
   

 

 

 
      47,749,101  
Health Care Technology — 0.3%            

Cerner Corp.

    88,242       8,262,981  

Teladoc Health Inc.(a)(b)

    61,146       2,064,289  
   

 

 

 
      10,327,270  
Hotels, Restaurants & Leisure — 0.6%            

Hilton Worldwide Holdings Inc.(a)

    74,710       11,601,716  

Vail Resorts Inc.

    41,339       10,506,720  
   

 

 

 
      22,108,436  
Household Durables — 0.1%            

Newell Brands Inc.

    153,937       3,563,642  
   

 

 

 
Household Products — 2.5%            

Clorox Co. (The)

    75,510       10,833,420  

Colgate-Palmolive Co.

    306,742       23,634,471  

Kimberly-Clark Corp.

    164,009       22,769,369  

Procter & Gamble Co. (The)

    217,085       34,852,997  
   

 

 

 
      92,090,257  
Industrial Conglomerates — 1.3%            

3M Co.

    338,000       48,746,360  
   

 

 

 
Insurance — 2.3%            

American International Group Inc.