|
SEPTEMBER 30, 2021 |
2021 Semi-Annual Report (Unaudited)
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iShares Trust
· |
iShares Biotechnology ETF | IBB | NASDAQ |
· |
iShares Expanded Tech Sector ETF | IGM | NYSE Arca |
· |
iShares Expanded Tech-Software Sector ETF | IGV | Cboe BZX |
· |
iShares North American Natural Resources ETF | IGE | Cboe BZX |
· |
iShares North American Tech-Multimedia Networking ETF | IGN | NYSE Arca |
· |
iShares Semiconductor ETF | SOXX | NASDAQ |
Dear Shareholder,
The 12-month reporting period as of September 30, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. The United States began the reporting period as the initial reopening-led economic rebound was beginning to slow. Nonetheless, the economy continued to grow at a brisk pace for the reporting period, eventually regaining the output lost from the pandemic.
Equity prices rose with the broader economy, as strong fiscal and monetary support, as well as the development of vaccines, made investors increasingly optimistic about the economic outlook. The implementation of mass vaccination campaigns and passage of two additional fiscal stimulus packages further boosted stocks, and many equity indices neared or surpassed all-time highs late in the reporting period. In the United States, returns of small-capitalization stocks, which benefited the most from the resumption of in-person activities, outpaced large-capitalization stocks. International equities also gained, as both developed and emerging markets continued to recover from the effects of the pandemic.
The 10-year U.S. Treasury yield (which is inversely related to bond prices) had fallen sharply prior to the beginning of the reporting period, which meant bonds were priced for extreme risk avoidance and economic disruption. Despite expectations of doom and gloom, the economy expanded rapidly, stoking inflation concerns in early 2021, which led to higher yields and a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and led to solid returns for high-yield corporate bonds, although investment-grade corporates declined slightly.
The Fed remained committed to accommodative monetary policy by maintaining near-zero interest rates and by reiterating that inflation could exceed its 2% target for a sustained period without triggering a rate increase. In response to rising inflation late in the period, the Fed changed its market guidance, raising the possibility of higher rates in 2022 and reducing bond purchasing beginning in late 2021.
Looking ahead, we believe that the global expansion will continue to broaden as Europe and other developed market economies gain momentum, although the delta variant of the coronavirus remains a threat, particularly in emerging markets. While we expect inflation to remain elevated in the medium-term as the expansion continues, we believe the recent uptick owes more to temporary supply disruptions than a lasting change in fundamentals. The change in Fed policy also means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the economic expansion.
Overall, we favor a moderately positive stance toward risk, with an overweight in equities. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long-term. U.S. small-capitalization stocks and European equities are likely to benefit from the continuing vaccine-led restart, while Chinese equities stand to gain from a more accommodative monetary and fiscal environment as the Chinese economy slows. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.
In this environment, 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,
Trust
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of September 30, 2021
| ||||
6-Month | 12-Month | |||
U.S.
large cap equities |
9.18% | 30.00% | ||
U.S.
small cap equities |
(0.25) | 47.68 | ||
International
equities |
4.70 | 25.73 | ||
Emerging
market equities |
(3.45) | 18.20 | ||
3-month Treasury bills |
0.01 | 0.07 | ||
U.S.
Treasury securities |
2.92 | (6.22) | ||
U.S.
investment grade bonds |
1.88 | (0.90) | ||
Tax-exempt municipal bonds |
1.24 | 2.71 | ||
U.S.
high yield bonds |
3.65 | 11.27 | ||
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 |
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Financial Statements |
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34 | ||||
36 | ||||
39 | ||||
45 | ||||
55 | ||||
61 | ||||
62 | ||||
63 |
Fund Summary as of September 30, 2021 | iShares® Biotechnology ETF |
Investment Objective
The iShares Biotechnology ETF (the “Fund”) (formerly the iShares Nasdaq Biotechnology ETF) seeks to track the investment results of an index composed of U.S.-listed equities in the biotechnology sector, as represented by the ICE Biotechnology Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
7.60 | % | 19.59 | % | 11.13 | % | 18.15 | % | 19.59 | % | 69.49 | % | 430.14 | % | ||||||||||||||||||
Fund Market |
7.48 | 19.66 | 11.14 | 18.16 | 19.66 | 69.55 | 430.62 | |||||||||||||||||||||||||
Index(a) |
7.83 | 20.06 | 11.51 | 18.50 | 20.06 | 72.41 | 446.09 | |||||||||||||||||||||||||
Nasdaq Biotechnology Index |
7.97 | 20.21 | 11.54 | 18.52 | 20.21 | 72.64 | 446.81 | |||||||||||||||||||||||||
ICE Biotechnology Index(b) |
N/A | N/A | N/A | N/A | N/A | N/A | N/A |
(a) |
Index performance through June 20, 2021 reflects the performance of the NASDAQ Biotechnology Index. Index performance beginning on June 21, 2021 reflects the performance of the ICE Biotechnology Index, which, effective as of June 21, 2021, replaced the NASDAQ Biotechnology Index as the underlying index of the fund. |
(b) |
The inception date of the ICE Biotechnology Index was April 13, 2021. The cumulative total return for this index for the period April 13, 2021 through September 30, 2021 was 10.20%. |
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 10 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
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Beginning Account Value (04/01/21) |
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Ending Account Value (09/30/21) |
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|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (04/01/21) |
|
|
Ending Account Value (09/30/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 1,076.00 | $ | 2.29 | $ | 1,000.00 | $ | 1,022.90 | $ | 2.23 | 0.44 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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” on page 10 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | |
Percent of Total Investments |
(a) | |
Biotechnology |
76.9 | % | ||
Life Sciences Tools & Services |
19.0 | |||
Pharmaceuticals |
1.8 | |||
Health Care Providers & Services |
1.2 | |||
Other (each representing less than 1%) |
1.1 |
(a) |
Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | |
Percent of Total Investments |
(a) | |
Moderna Inc. |
8.7 | % | ||
Amgen Inc. |
8.1 | |||
Gilead Sciences Inc. |
6.8 | |||
Regeneron Pharmaceuticals Inc. |
4.8 | |||
Illumina Inc. |
3.8 | |||
Vertex Pharmaceuticals Inc. |
3.7 | |||
BioNTech SE |
3.6 | |||
IQVIA Holdings Inc. |
3.6 | |||
Biogen Inc. |
3.3 | |||
Mettler-Toledo International Inc. |
2.5 |
4 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of September 30, 2021 | iShares® Expanded Tech Sector ETF |
Investment Objective
The iShares Expanded Tech Sector ETF (the “Fund”) seeks to track the investment results of an index composed of North American equities in the technology sector and select North American equities from communication services and consumer discretionary sectors, as represented by the S&P North American Expanded Technology Sector 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 | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
12.00 | % | 30.86 | % | 27.32 | % | 22.84 | % | 30.86 | % | 234.63 | % | 682.40 | % | ||||||||||||||||||
Fund Market |
11.95 | 30.86 | 27.33 | 22.84 | 30.86 | 234.72 | 682.22 | |||||||||||||||||||||||||
Index |
12.23 | 31.40 | 27.88 | 23.39 | 31.40 | 242.01 | 718.25 |
Index performance through December 23, 2018 reflects the performance of the S&P North American Technology Sector IndexTM. Index Performance beginning on December 24, 2018 reflects the performance of the S&P North American Expanded Technology Sector IndexTM.
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 10 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning Account Value (04/01/21) |
|
|
Ending Account Value (09/30/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (04/01/21) |
|
|
Ending Account Value (09/30/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 1,120.00 | $ | 2.18 | $ | 1,000.00 | $ | 1,023.00 | $ | 2.08 | 0.41 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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” on page 10 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | |
Percent of Total Investments |
(a) | |
Interactive Media & Services |
15.9 | % | ||
Semiconductors |
13.6 | |||
Application Software |
12.2 | |||
Systems Software |
12.2 | |||
Data Processing & Outsourced Services |
10.9 | |||
Internet & Direct Marketing Retail |
9.4 | |||
Technology Hardware, Storage & Peripherals |
9.3 | |||
IT Consulting & Other Services |
3.3 | |||
Internet Services & Infrastructure |
3.0 | |||
Semiconductor Equipment |
2.5 | |||
Communications Equipment |
2.5 | |||
Movies & Entertainment |
1.9 | |||
Other (each representing less than 1%) |
3.3 |
(a) |
Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | |
Percent of Total Investments |
(a) | |
Microsoft Corp. |
8.5 | % | ||
Amazon.com Inc. |
8.5 | |||
Apple Inc. |
8.3 | |||
Facebook Inc., Class A |
5.8 | |||
Alphabet Inc., Class A |
4.3 | |||
Alphabet Inc., Class C |
4.0 | |||
NVIDIA Corp. |
3.7 | |||
Visa Inc., Class A |
2.7 | |||
PayPal Holdings Inc. |
2.2 | |||
Mastercard Inc., Class A |
2.2 |
F U N D S U M M A R Y |
5 |
Fund Summary as of September 30, 2021 | iShares® Expanded Tech-Software Sector ETF |
Investment Objective
The iShares Expanded Tech-Software Sector ETF (the “Fund”) seeks to track the investment results of an index composed of North American equities in the software industry and select North American equities from interactive home entertainment and interactive media and services industries, as represented by the S&P North American Expanded Technology Software 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 | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
16.93 | % | 27.98 | % | 28.81 | % | 22.95 | % | 27.98 | % | 254.57 | % | 689.69 | % | ||||||||||||||||||
Fund Market |
16.90 | 28.29 | 28.82 | 22.95 | 28.29 | 254.72 | 689.55 | |||||||||||||||||||||||||
Index |
17.18 | 28.51 | 29.21 | 23.41 | 28.51 | 260.11 | 719.46 |
Index performance through December 23, 2018 reflects the performance of the S&P North American Technology Software IndexTM. Index performance beginning on December 24, 2018 reflects the performance of the S&P North American Expanded Technology Software IndexTM.
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 10 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning Account Value (04/01/21) |
|
|
Ending Account Value (09/30/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (04/01/21) |
|
|
Ending Account Value (09/30/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 1,169.30 | $ | 2.23 | $ | 1,000.00 | $ | 1,023.00 | $ | 2.08 | 0.41 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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” on page 10 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | |
Percent of Total Investments |
(a) | |
Software |
90.8 | % | ||
Entertainment |
5.0 | |||
Interactive Media & Services |
3.0 | |||
IT Services |
1.2 |
(a) |
Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | |
Percent of Total Investments |
(a) | |
salesforce.com Inc. |
9.3 | % | ||
Microsoft Corp. |
8.5 | |||
Adobe Inc. |
7.8 | |||
Intuit Inc. |
5.8 | |||
Oracle Corp. |
5.6 | |||
ServiceNow Inc. |
4.8 | |||
Snap Inc., Class A |
3.0 | |||
Autodesk Inc. |
2.5 | |||
Activision Blizzard Inc. |
2.4 | |||
Zoom Video Communications Inc., Class A |
2.2 |
6 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of September 30, 2021 | iShares® North American Natural Resources ETF |
Investment Objective
The iShares North American Natural Resources ETF (the “Fund”) seeks to track the investment results of an index composed of North American equities in the natural resources sector, as represented by the S&P North American Natural Resources Sector 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 | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
8.07 | % | 53.17 | % | 0.15 | % | 1.32 | % | 53.17 | % | 0.76 | % | 13.98 | % | ||||||||||||||||||
Fund Market |
8.11 | 53.14 | 0.16 | 1.32 | 53.14 | 0.80 | 14.02 | |||||||||||||||||||||||||
Index |
8.36 | 53.93 | 0.68 | 1.83 | 53.93 | 3.47 | 19.83 |
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
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 10 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning Account Value (04/01/21) |
|
Ending Account Value (09/30/21) |
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (04/01/21) |
|
Ending Account Value (09/30/21) |
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||||||
$ | 1,000.00 | $ | 1,080.70 | $ | 2.14 | $ | 1,000.00 | $ | 1,023.00 | $ | 2.08 | 0.41 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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” on page 10 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | |
Percent of Total Investments |
(a) | |
Oil, Gas & Consumable Fuels |
66.6 | % | ||
Metals & Mining |
14.6 | |||
Containers & Packaging |
9.4 | |||
Energy Equipment & Services |
5.5 | |||
Construction Materials |
3.0 | |||
Paper & Forest Products |
0.9 |
(a) |
Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | |
Percent of Total Investments |
(a) | |
Exxon Mobil Corp. |
10.2 | % | ||
Chevron Corp. |
10.0 | |||
ConocoPhillips |
4.7 | |||
Enbridge Inc. |
4.4 | |||
Freeport-McMoRan Inc. |
2.7 | |||
TC Energy Corp. |
2.6 | |||
EOG Resources Inc. |
2.6 | |||
Newmont Corp. |
2.4 | |||
Canadian Natural Resources Ltd. |
2.4 | |||
Schlumberger NV |
2.3 |
F U N D S U M M A R Y |
7 |
Fund Summary as of September 30, 2021 | iShares® North American Tech-Multimedia Networking ETF |
Investment Objective
The iShares North American Tech-Multimedia Networking ETF (the “Fund”) seeks to track the investment results of an index composed of North American equities in the multimedia and networking technology sectors, as represented by the S&P North American Technology Multimedia Networking 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 | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
2.90 | % | 48.49 | % | 11.61 | % | 11.49 | % | 48.49 | % | 73.21 | % | 196.62 | % | ||||||||||||||||||
Fund Market |
2.86 | 48.70 | 11.65 | 11.50 | 48.70 | 73.47 | 197.03 | |||||||||||||||||||||||||
Index |
3.11 | 49.03 | 11.97 | 11.84 | 49.03 | 76.00 | 206.22 |
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
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 10 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning Account Value (04/01/21) |
|
|
Ending Account Value (09/30/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (04/01/21) |
|
|
Ending Account Value (09/30/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 1,029.00 | $ | 2.09 | $ | 1,000.00 | $ | 1,023.00 | $ | 2.08 | 0.41 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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” on page 10 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | |
Percent of Total Investments |
(a) | |
Communications Equipment |
97.4 | % | ||
Alternative Carriers |
2.6 |
(a) |
Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | |
Percent of Total Investments |
(a) | |
F5 Networks Inc. |
8.6 | % | ||
Juniper Networks Inc. |
8.6 | |||
Arista Networks Inc. |
8.4 | |||
Motorola Solutions Inc. |
8.4 | |||
Cisco Systems Inc. |
8.2 | |||
Viasat Inc. |
5.2 | |||
Calix Inc. |
5.0 | |||
NetScout Systems Inc. |
4.6 | |||
Viavi Solutions Inc. |
4.5 | |||
Ubiquiti Inc. |
4.4 |
8 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of September 30, 2021 | iShares® Semiconductor ETF |
Investment Objective
The iShares Semiconductor ETF (the “Fund”) (formerly the iShares PHLX Semiconductor ETF) seeks to track the investment results of an index composed of U.S.-listed equities in the semiconductor sector, as represented by the ICE Semiconductor Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | 1 Year | 5 Years | 10 Years | ||||||||||||||||||||||||||
Fund NAV |
5.51 | % | 47.50 | % | 33.07 | % | 27.09 | % | 47.50 | % | 317.25 | % | 999.20 | % | ||||||||||||||||||
Fund Market |
5.54 | 47.48 | 33.08 | 27.08 | 47.48 | 317.36 | 998.83 | |||||||||||||||||||||||||
Index(a) |
5.75 | 48.22 | 33.74 | 27.71 | 48.22 | 327.79 | 1,054.12 | |||||||||||||||||||||||||
PHLX Semiconductor Sector Index |
4.89 | 47.01 | 33.52 | 27.61 | 47.01 | 324.30 | 1,044.70 | |||||||||||||||||||||||||
ICE Semiconductor Index(b) |
N/A | N/A | N/A | N/A | N/A | N/A | N/A |
(a) |
Index performance through June 20, 2021 reflects the performance of the PHLX Semiconductor Sector Index. Index performance beginning on June 21, 2021 reflects the performance of the ICE Semiconductor Index, which, effective as of June 21, 2021, replaced the PHLX Semiconductor Sector Index as the underlying index of the fund. |
(b) |
The inception date of the ICE Semiconductor Index was April 13, 2021. The cumulative total return for this index for the period April 13, 2021 through September 30, 2021 was 2.03%. |
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
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 10 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning Account Value (04/01/21) |
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|
Ending Account Value (09/30/21) |
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|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (04/01/21) |
|
|
Ending Account Value (09/30/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ | 1,000.00 | $ | 1,055.10 | $ | 2.11 | $ | 1,000.00 | $ | 1,023.00 | $ | 2.08 | 0.41 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days) and divided by the number of days in the year (365 days). 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” on page 10 for more information. |
Portfolio Information
ALLOCATION BY SECTOR
Sector | |
Percent of Total Investments |
(a) | |
Semiconductors |
80.3 | % | ||
Semiconductor Equipment |
19.7 |
(a) |
Excludes money market funds. |
TEN LARGEST HOLDINGS
Security | |
Percent of Total Investments |
(a) | |
Intel Corp. |
8.3 | % | ||
Broadcom Inc. |
8.2 | |||
NVIDIA Corp. |
7.8 | |||
Texas Instruments Inc. |
6.0 | |||
QUALCOMM Inc. |
5.3 | |||
Analog Devices Inc. |
4.3 | |||
Marvell Technology Inc. |
4.1 | |||
KLA Corp. |
4.1 | |||
Micron Technology Inc. |
4.0 | |||
Microchip Technology Inc. |
4.0 |
F U N D S U M M A R Y |
9 |
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 by 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.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
10 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) September 30, 2021 |
iShares® Biotechnology ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Biotechnology — 76.8% | ||||||||
AC Immune SA(a)(b) |
264,593 | $ | 1,775,419 | |||||
ACADIA Pharmaceuticals Inc.(a)(b) |
1,312,263 | 21,796,688 | ||||||
Acceleron Pharma Inc.(a)(b) |
437,164 | 75,235,924 | ||||||
Achillion Pharmaceuticals Inc.(b)(c) |
4,112 | 1,892 | ||||||
Adaptimmune Therapeutics PLC, ADR(a)(b) |
788,556 | 4,076,835 | ||||||
ADC Therapeutics SA(a)(b) |
313,641 | 8,518,490 | ||||||
Adverum Biotechnologies Inc.(a)(b) |
735,656 | 1,596,374 | ||||||
Aeglea BioTherapeutics Inc.(a) |
331,968 | 2,639,146 | ||||||
Affimed NV(a) |
912,856 | 5,641,450 | ||||||
Agios Pharmaceuticals Inc.(a)(b) |
477,112 | 22,018,719 | ||||||
Akebia Therapeutics Inc.(a)(b) |
1,364,348 | 3,929,322 | ||||||
Akero Therapeutics Inc.(a)(b) |
178,922 | 3,998,907 | ||||||
Alector Inc.(a)(b) |
462,518 | 10,554,661 | ||||||
Alkermes PLC(a) |
1,309,235 | 40,376,807 | ||||||
Allakos Inc.(a)(b) |
279,682 | 29,609,933 | ||||||
Allogene Therapeutics Inc.(a)(b) |
585,791 | 15,054,829 | ||||||
Alnylam Pharmaceuticals Inc.(a)(b) |
965,504 | 182,296,810 | ||||||
Altimmune Inc.(a)(b) |
278,701 | 3,152,108 | ||||||
ALX Oncology Holdings Inc.(a)(b) |
161,229 | 11,908,374 | ||||||
Amgen Inc. |
3,985,778 | 847,575,692 | ||||||
Amicus Therapeutics Inc.(a)(b) |
2,143,255 | 20,468,085 | ||||||
AnaptysBio Inc.(a)(b) |
208,853 | 5,664,093 | ||||||
Annexon Inc.(a) |
218,828 | 4,072,389 | ||||||
Apellis Pharmaceuticals Inc.(a) |
556,048 | 18,327,342 | ||||||
Applied Molecular Transport Inc.(a)(b) |
203,387 | 5,261,622 | ||||||
Applied Therapeutics Inc.(a) |
125,355 | 2,080,893 | ||||||
Aprea Therapeutics Inc.(a)(b) |
114,610 | 585,657 | ||||||
Arbutus Biopharma Corp.(a) |
661,015 | 2,835,754 | ||||||
Arcturus Therapeutics Holdings Inc.(a)(b) |
176,983 | 8,456,248 | ||||||
Arcus Biosciences Inc.(a)(b) |
349,797 | 12,197,421 | ||||||
Arcutis Biotherapeutics Inc.(a)(b) |
224,793 | 5,370,305 | ||||||
Ardelyx Inc.(a)(b) |
603,896 | 797,143 | ||||||
Arena Pharmaceuticals Inc.(a)(b) |
499,153 | 29,724,561 | ||||||
Argenx SE, ADR(a)(b) |
292,974 | 88,478,148 | ||||||
Arrowhead Pharmaceuticals Inc.(a) |
794,116 | 49,576,662 | ||||||
Ascendis Pharma A/S, ADR(a)(b) |
295,624 | 47,119,509 | ||||||
Assembly Biosciences Inc.(a) |
348,769 | 1,213,716 | ||||||
Atara Biotherapeutics Inc.(a)(b) |
669,898 | 11,991,174 | ||||||
Athenex Inc.(a)(b) |
703,486 | 2,117,493 | ||||||
Atreca Inc., Class A(a)(b) |
235,376 | 1,466,392 | ||||||
Avidity Biosciences Inc.(a)(b) |
327,614 | 8,069,133 | ||||||
Avrobio Inc.(a) |
305,482 | 1,704,590 | ||||||
Beam Therapeutics Inc.(a)(b) |
398,017 | 34,631,459 | ||||||
BeiGene Ltd., ADR(a)(b) |
423,728 | 153,813,264 | ||||||
BioCryst Pharmaceuticals Inc.(a)(b) |
1,452,872 | 20,877,771 | ||||||
Biogen Inc.(a) |
1,219,172 | 345,013,484 | ||||||
Biohaven Pharmaceutical Holding Co. Ltd.(a) |
470,782 | 65,396,328 | ||||||
BioMarin Pharmaceutical Inc.(a)(b) |
1,492,592 | 115,362,436 | ||||||
BioNTech SE, ADR(a)(b) |
1,380,158 | 376,769,332 | ||||||
Black Diamond Therapeutics Inc.(a)(b) |
204,474 | 1,729,850 | ||||||
Bluebird Bio Inc.(a)(b) |
540,744 | 10,333,618 | ||||||
Blueprint Medicines Corp.(a)(b) |
474,044 | 48,736,464 | ||||||
Bridgebio Pharma Inc.(a)(b) |
866,283 | 40,602,684 | ||||||
Cabaletta Bio Inc.(a) |
123,103 | 1,496,932 | ||||||
Calithera Biosciences Inc.(a)(b) |
578,176 | 1,260,424 | ||||||
CareDx Inc.(a)(b) |
423,403 | 26,831,048 | ||||||
Cellectis SA, ADR(a)(b) |
259,016 | 3,266,192 | ||||||
CEL-SCI Corp.(a)(b) |
339,308 | 3,728,995 |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
ChemoCentryx Inc.(a)(b) |
437,565 | $ | 7,482,361 | |||||
Chinook Therapeutics Inc.(a)(b) |
220,930 | 2,819,067 | ||||||
Clovis Oncology Inc.(a)(b) |
934,482 | 4,167,790 | ||||||
Cogent Biosciences Inc.(a)(b) |
274,430 | 2,307,956 | ||||||
Coherus Biosciences Inc.(a)(b) |
583,530 | 9,377,327 | ||||||
Concert Pharmaceuticals Inc.(a) |
256,812 | 839,775 | ||||||
Cortexyme Inc.(a)(b) |
121,814 | 11,165,471 | ||||||
Crinetics Pharmaceuticals Inc.(a) |
229,852 | 4,838,385 | ||||||
CRISPR Therapeutics AG(a)(b) |
547,245 | 61,253,133 | ||||||
Cytokinetics Inc.(a)(b) |
646,981 | 23,123,101 | ||||||
CytomX Therapeutics Inc.(a) |
515,513 | 2,623,961 | ||||||
Deciphera Pharmaceuticals Inc.(a) |
295,165 | 10,029,707 | ||||||
Denali Therapeutics Inc.(a)(b) |
674,632 | 34,035,184 | ||||||
Dicerna Pharmaceuticals Inc.(a)(b) |
559,151 | 11,272,484 | ||||||
Eagle Pharmaceuticals Inc./DE(a)(b) |
93,037 | 5,189,604 | ||||||
Editas Medicine Inc.(a)(b) |
559,183 | 22,971,238 | ||||||
Eiger BioPharmaceuticals Inc.(a) |
251,907 | 1,682,739 | ||||||
Emergent BioSolutions Inc.(a)(b) |
397,043 | 19,879,943 | ||||||
Enanta Pharmaceuticals Inc.(a)(b) |
146,695 | 8,333,743 | ||||||
Epizyme Inc.(a)(b) |
746,644 | 3,822,817 | ||||||
Exelixis Inc.(a) |
2,520,816 | 53,290,050 | ||||||
Fate Therapeutics Inc.(a)(b) |
732,142 | 43,394,056 | ||||||
FibroGen Inc.(a)(b) |
694,107 | 7,093,774 | ||||||
Flexion Therapeutics Inc.(a)(b) |
342,713 | 2,090,549 | ||||||
Forma Therapeutics Holdings Inc.(a)(b) |
311,807 | 7,230,804 | ||||||
Frequency Therapeutics Inc.(a)(b) |
256,834 | 1,813,248 | ||||||
G1 Therapeutics Inc.(a)(b) |
277,217 | 3,720,252 | ||||||
Galapagos NV, ADR(a)(b) |
375,548 | 19,757,580 | ||||||
Gamida Cell Ltd.(a)(b) |
334,765 | 1,312,279 | ||||||
Generation Bio Co.(a)(b) |
368,195 | 9,230,649 | ||||||
Genmab A/S, ADR(a)(b) |
3,778,210 | 165,107,777 | ||||||
Geron Corp.(a)(b) |
2,540,493 | 3,480,475 | ||||||
Gilead Sciences Inc. |
10,280,345 | 718,082,098 | ||||||
Global Blood Therapeutics Inc.(a)(b) |
498,615 | 12,704,710 | ||||||
Gossamer Bio Inc.(a)(b) |
449,599 | 5,651,459 | ||||||
Grifols SA, ADR |
1,503,464 | 21,965,609 | ||||||
Halozyme Therapeutics Inc.(a)(b) |
1,147,482 | 46,679,568 | ||||||
Harpoon Therapeutics Inc.(a) |
164,927 | 1,302,923 | ||||||
Homology Medicines Inc.(a)(b) |
327,914 | 2,580,683 | ||||||
Ideaya Biosciences Inc.(a) |
255,589 | 6,514,964 | ||||||
IGM Biosciences Inc.(a)(b) |
118,166 | 7,770,596 | ||||||
I-Mab, ADR(a) |
442,147 | 32,051,236 | ||||||
Immunic Inc.(a) |
145,726 | 1,289,675 | ||||||
ImmunityBio Inc.(a)(b) |
558,895 | 5,443,637 | ||||||
ImmunoGen Inc.(a)(b) |
1,544,550 | 8,757,598 | ||||||
Immunovant Inc.(a)(b) |
332,079 | 2,885,767 | ||||||
Incyte Corp.(a) |
1,796,080 | 123,534,382 | ||||||
Inovio Pharmaceuticals Inc.(a)(b) |
1,697,987 | 12,157,587 | ||||||
Inozyme Pharma Inc.(a)(b) |
84,511 | 979,482 | ||||||
Insmed Inc.(a)(b) |
913,885 | 25,168,393 | ||||||
Intellia Therapeutics Inc.(a)(b) |
543,167 | 72,865,853 | ||||||
Intercept Pharmaceuticals Inc.(a)(b) |
223,628 | 3,320,876 | ||||||
Invitae Corp.(a)(b) |
1,755,524 | 49,909,547 | ||||||
Ionis Pharmaceuticals Inc.(a)(b) |
1,145,321 | 38,414,066 | ||||||
Iovance Biotherapeutics Inc.(a)(b) |
1,109,745 | 27,366,312 | ||||||
Ironwood Pharmaceuticals Inc.(a)(b) |
1,303,937 | 17,029,417 | ||||||
iTeos Therapeutics Inc.(a)(b) |
245,499 | 6,628,473 | ||||||
IVERIC bio Inc.(a) |
810,257 | 13,158,574 | ||||||
Jounce Therapeutics Inc.(a) |
251,267 | 1,866,914 | ||||||
Kadmon Holdings Inc.(a)(b) |
1,364,537 | 11,885,117 |
S C H E D U L E O F I N V E S T M E N T S |
11 |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® Biotechnology ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
KalVista Pharmaceuticals Inc.(a) |
183,268 | $ | 3,198,027 | |||||
Karuna Therapeutics Inc.(a)(b) |
173,746 | 21,254,348 | ||||||
Karyopharm Therapeutics Inc.(a)(b) |
528,055 | 3,073,280 | ||||||
Keros Therapeutics Inc.(a)(b) |
107,791 | 4,264,212 | ||||||
Kezar Life Sciences Inc.(a) |
323,578 | 2,795,714 | ||||||
Kiniksa Pharmaceuticals Ltd., Class A(a)(b) |
250,209 | 2,849,881 | ||||||
Kodiak Sciences Inc.(a)(b) |
376,399 | 36,126,776 | ||||||
Krystal Biotech Inc.(a)(b) |
131,886 | 6,885,768 | ||||||
Kura Oncology Inc.(a)(b) |
500,929 | 9,382,400 | ||||||
Larimar Therapeutics Inc.(a)(b) |
133,168 | 1,535,427 | ||||||
Legend Biotech Corp., ADR(a)(b) |
813,071 | 41,108,870 | ||||||
Ligand Pharmaceuticals Inc.(a)(b) |
130,188 | 18,137,792 | ||||||
MacroGenics Inc.(a)(b) |
485,437 | 10,165,051 | ||||||
Madrigal Pharmaceuticals Inc.(a) |
91,297 | 7,284,588 | ||||||
Magenta Therapeutics Inc.(a) |
332,665 | 2,421,801 | ||||||
MannKind Corp.(a)(b) |
1,926,934 | 8,382,163 | ||||||
MediciNova Inc.(a)(b) |
387,063 | 1,466,969 | ||||||
MeiraGTx Holdings PLC(a) |
260,179 | 3,429,159 | ||||||
Mersana Therapeutics Inc.(a)(b) |
518,530 | 4,889,738 | ||||||
Mesoblast Ltd., SP ADR(a)(b) |
746,277 | 4,485,125 | ||||||
Mirati Therapeutics Inc.(a)(b) |
390,248 | 69,038,774 | ||||||
Moderna Inc.(a)(b) |
2,386,346 | 918,409,122 | ||||||
MorphoSys AG, ADR(a)(b) |
787,820 | 9,264,763 | ||||||
Myovant Sciences Ltd.(a)(b) |
330,853 | 7,424,341 | ||||||
Myriad Genetics Inc.(a)(b) |
622,070 | 20,086,640 | ||||||
Natera Inc.(a) |
692,247 | 77,144,006 | ||||||
Neoleukin Therapeutics Inc.(a) |
266,282 | 1,925,219 | ||||||
Neurocrine Biosciences Inc.(a) |
754,179 | 72,333,308 | ||||||
NextCure Inc.(a)(b) |
127,226 | 857,503 | ||||||
Nkarta Inc.(a)(b) |
142,851 | 3,972,686 | ||||||
Novavax Inc.(a)(b) |
604,486 | 125,315,993 | ||||||
NuCana PLC, ADR(a)(b) |
237,259 | 612,128 | ||||||
Nurix Therapeutics Inc.(a) |
276,804 | 8,293,048 | ||||||
OPKO Health Inc.(a)(b) |
3,359,686 | 12,262,854 | ||||||
Orchard Therapeutics PLC, ADR(a)(b) |
625,523 | 1,438,703 | ||||||
ORIC Pharmaceuticals Inc.(a)(b) |
244,700 | 5,116,677 | ||||||
Ovid therapeutics Inc.(a)(b) |
384,030 | 1,290,341 | ||||||
Passage Bio Inc.(a) |
202,782 | 2,019,709 | ||||||
Poseida Therapeutics Inc.(a)(b) |
279,180 | 2,035,222 | ||||||
Precigen Inc.(a)(b) |
811,701 | 4,050,388 | ||||||
Precision BioSciences Inc.(a)(b) |
398,237 | 4,595,655 | ||||||
Protagonist Therapeutics Inc.(a) |
344,434 | 6,103,370 | ||||||
Prothena Corp. PLC(a) |
369,601 | 26,326,679 | ||||||
PTC Therapeutics Inc.(a)(b) |
560,388 | 20,852,037 | ||||||
Puma Biotechnology Inc.(a) |
277,462 | 1,945,009 | ||||||
Radius Health Inc.(a)(b) |
385,763 | 4,787,319 | ||||||
RAPT Therapeutics Inc.(a) |
179,595 | 5,576,425 | ||||||
Regeneron Pharmaceuticals Inc.(a)(b) |
838,769 | 507,606,223 | ||||||
REGENXBIO Inc.(a)(b) |
297,610 | 12,475,811 | ||||||
Relay Therapeutics Inc.(a)(b) |
459,523 | 14,488,760 | ||||||
Repare Therapeutics Inc.(a) |
164,167 | 4,307,742 | ||||||
Replimune Group Inc.(a)(b) |
240,683 | 7,133,844 | ||||||
REVOLUTION Medicines Inc.(a)(b) |
469,549 | 12,917,293 | ||||||
Rhythm Pharmaceuticals Inc.(a)(b) |
351,675 | 4,592,875 | ||||||
Rigel Pharmaceuticals Inc.(a)(b) |
1,400,379 | 5,083,376 | ||||||
Rocket Pharmaceuticals Inc.(a)(b) |
500,067 | 14,947,003 | ||||||
Rubius Therapeutics Inc.(a)(b) |
369,745 | 6,611,041 | ||||||
Sage Therapeutics Inc.(a)(b) |
423,048 | 18,745,257 | ||||||
Sangamo Therapeutics Inc.(a)(b) |
985,961 | 8,883,509 | ||||||
Sarepta Therapeutics Inc.(a)(b) |
621,206 | 57,449,131 |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
Scholar Rock Holding Corp.(a)(b) |
225,543 | $ | 7,447,430 | |||||
Seagen Inc.(a)(b) |
1,477,511 | 250,881,368 | ||||||
Selecta Biosciences Inc.(a)(b) |
669,652 | 2,785,752 | ||||||
Seres Therapeutics Inc.(a)(b) |
555,552 | 3,866,642 | ||||||
Spectrum Pharmaceuticals Inc.(a)(b) |
1,308,495 | 2,852,519 | ||||||
Spero Therapeutics Inc.(a)(b) |
202,371 | 3,725,650 | ||||||
SpringWorks Therapeutics Inc.(a) |
258,534 | 16,401,397 | ||||||
Stoke Therapeutics Inc.(a) |
162,465 | 4,133,110 | ||||||
Surface Oncology Inc.(a)(b) |
314,449 | 2,380,379 | ||||||
Sutro Biopharma Inc.(a)(b) |
296,886 | 5,608,177 | ||||||
Syndax Pharmaceuticals Inc.(a)(b) |
353,722 | 6,759,627 | ||||||
Syros Pharmaceuticals Inc.(a)(b) |
321,717 | 1,438,075 | ||||||
TCR2 Therapeutics Inc.(a) |
261,036 | 2,221,416 | ||||||
Tiziana Life Sciences PLC., ADR (a)(b) |
550,731 | 804,067 | ||||||
Travere Therapeutics Inc.(a)(b) |
492,070 | 11,932,697 | ||||||
Turning Point Therapeutics Inc.(a) |
353,340 | 23,472,376 | ||||||
Twist Bioscience Corp.(a)(b) |
363,146 | 38,845,728 | ||||||
Ultragenyx Pharmaceutical Inc.(a)(b) |
516,987 | 46,627,058 | ||||||
uniQure NV(a)(b) |
287,266 | 9,195,385 | ||||||
United Therapeutics Corp.(a)(b) |
360,234 | 66,491,992 | ||||||
UNITY Biotechnology Inc.(a)(b) |
299,330 | 897,990 | ||||||
UroGen Pharma Ltd.(a)(b) |
152,559 | 2,566,042 | ||||||
Vanda Pharmaceuticals Inc.(a) |
439,686 | 7,536,218 | ||||||
Veracyte Inc.(a)(b) |
574,866 | 26,702,526 | ||||||
Verastem Inc.(a)(b) |
1,461,455 | 4,501,281 | ||||||
Vertex Pharmaceuticals Inc.(a)(b) |
2,115,245 | 383,684,291 | ||||||
Vir Biotechnology Inc.(a)(b) |
558,128 | 24,289,731 | ||||||
Voyager Therapeutics Inc.(a)(b) |
199,616 | 524,990 | ||||||
XBiotech Inc. |
150,550 | 1,949,622 | ||||||
Xencor Inc.(a) |
475,248 | 15,521,600 | ||||||
Xenon Pharmaceuticals Inc.(a)(b) |
309,942 | 4,735,914 | ||||||
Y-mAbs Therapeutics Inc.(a)(b) |
282,397 | 8,059,610 | ||||||
Zai Lab Ltd., ADR(a) |
542,922 | 57,218,550 | ||||||
Zentalis Pharmaceuticals Inc.(a) |
328,208 | 21,871,781 | ||||||
ZIOPHARM Oncology Inc.(a)(b) |
1,593,170 | 2,899,569 | ||||||
Zymeworks Inc.(a)(b) |
375,313 | 10,899,090 | ||||||
|
|
|||||||
8,075,076,309 | ||||||||
Chemicals — 0.2% | ||||||||
Amyris Inc.(a)(b) |
1,421,590 | 19,518,431 | ||||||
|
|
|||||||
Health Care Equipment & Supplies — 0.9% | ||||||||
Cerus Corp.(a)(b) |
1,368,389 | 8,333,489 | ||||||
Meridian Bioscience Inc.(a)(b) |
351,368 | 6,760,320 | ||||||
Novocure Ltd.(a)(b) |
730,543 | 84,867,180 | ||||||
|
|
|||||||
99,960,989 | ||||||||
Health Care Providers & Services — 1.2% | ||||||||
Castle Biosciences Inc.(a)(b) |
181,053 | 12,040,025 | ||||||
Fulgent Genetics Inc.(a)(b) |
156,731 | 14,097,953 | ||||||
Guardant Health Inc.(a)(b) |
779,193 | 97,406,917 | ||||||
|
|
|||||||
123,544,895 | ||||||||
Life Sciences Tools & Services — 19.0% | ||||||||
10X Genomics Inc., Class A(a)(b) |
665,156 | 96,833,410 | ||||||
Adaptive Biotechnologies Corp.(a)(b) |
1,138,444 | 38,695,712 | ||||||
Berkeley Lights Inc.(a)(b) |
401,908 | 7,861,320 | ||||||
Bio-Techne Corp. |
316,587 | 153,408,563 | ||||||
Bruker Corp. |
832,382 | 65,009,034 | ||||||
Charles
River Laboratories International |
407,106 | 168,000,433 | ||||||
Codexis Inc.(a)(b) |
513,087 | 11,934,404 | ||||||
Compugen Ltd.(a)(b) |
693,878 | 4,142,452 |
12 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® Biotechnology ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Life Sciences Tools & Services (continued) | ||||||||
Fluidigm Corp.(a)(b) |
576,750 | $ | 3,800,782 | |||||
Illumina Inc.(a) |
983,147 | 398,774,255 | ||||||
IQVIA Holdings Inc.(a) |
1,556,237 | 372,781,011 | ||||||
Medpace Holdings Inc.(a)(b) |
237,842 | 45,018,734 | ||||||
Mettler-Toledo International Inc.(a)(b) |
186,854 | 257,365,225 | ||||||
NanoString Technologies Inc.(a)(b) |
364,364 | 17,493,116 | ||||||
Pacific Biosciences of California Inc.(a)(b) |
1,560,373 | 39,867,530 | ||||||
Personalis Inc.(a) |
289,015 | 5,560,649 | ||||||
Quanterix Corp.(a) |
264,481 | 13,168,509 | ||||||
Repligen Corp.(a) |
418,558 | 120,959,076 | ||||||
Waters Corp.(a)(b) |
500,690 | 178,896,537 | ||||||
|
|
|||||||
1,999,570,752 | ||||||||
Pharmaceuticals — 1.8% | ||||||||
Arvinas Inc.(a) |
323,784 | 26,608,569 | ||||||
Axsome Therapeutics Inc.(a)(b) |
243,017 | 8,009,840 | ||||||
Cara Therapeutics Inc.(a)(b) |
329,713 | 5,094,066 | ||||||
Cymabay Therapeutics Inc.(a)(b) |
521,026 | 1,901,745 | ||||||
Esperion Therapeutics Inc.(a)(b) |
225,658 | 2,719,179 | ||||||
Fulcrum Therapeutics Inc.(a) |
235,331 | 6,638,688 | ||||||
Intra-Cellular Therapies Inc.(a)(b) |
595,697 | 22,207,584 | ||||||
Kala Pharmaceuticals Inc.(a)(b) |
426,542 | 1,117,540 | ||||||
Kaleido Biosciences Inc.(a)(b) |
162,458 | 887,021 | ||||||
Marinus Pharmaceuticals Inc.(a)(b) |
264,570 | 3,010,807 | ||||||
Nektar Therapeutics(a)(b) |
1,490,696 | 26,772,900 | ||||||
NGM Biopharmaceuticals Inc.(a) |
207,563 | 4,362,974 | ||||||
Odonate Therapeutics Inc.(a)(b) |
308,232 | 896,955 | ||||||
Omeros Corp.(a)(b) |
491,739 | 6,781,081 | ||||||
Pliant Therapeutics Inc.(a)(b) |
203,932 | 3,442,372 | ||||||
Provention Bio Inc.(a)(b) |
414,226 | 2,651,046 | ||||||
Reata Pharmaceuticals Inc., Class A(a)(b) |
243,844 | 24,533,145 | ||||||
Redhill Biopharma Ltd., ADR(a)(b) |
263,468 | 1,206,684 | ||||||
Relmada Therapeutics Inc.(a) |
128,344 | 3,363,896 | ||||||
Restorbio Inc. |
50,900 | 55,896 | ||||||
Revance Therapeutics Inc.(a)(b) |
562,849 | 15,680,973 | ||||||
SIGA Technologies Inc.(a)(b) |
354,982 | 2,623,317 | ||||||
Supernus Pharmaceuticals Inc.(a)(b) |
420,229 | 11,207,508 | ||||||
Theravance Biopharma Inc.(a)(b) |
446,121 | 3,301,295 | ||||||
Tricida Inc.(a)(b) |
244,095 | 1,132,601 | ||||||
Veritex Holdings Inc., ADR(a)(b) |
245,594 | 1,345,855 | ||||||
WaVe Life Sciences Ltd.(a) |
395,378 | 1,937,352 | ||||||
|
|
|||||||
189,490,889 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.9% |
|
10,507,162,265 | ||||||
|
|
Security | Shares | Value | ||||||
Short-Term Investments |
| |||||||
Money Market Funds — 8.4% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(d)(e)(f) |
865,866,449 | $ | 866,299,382 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(d)(e) |
17,710,000 | 17,710,000 | ||||||
|
|
|||||||
884,009,382 | ||||||||
|
|
|||||||
Total
Short-Term Investments — 8.4% |
|
884,009,382 | ||||||
|
|
|||||||
Total
Investments Before Investments Sold Short — 108.3% |
|
11,391,171,647 | ||||||
Investments In Securities Sold Short |
| |||||||
Common Stocks — (0.0%) | ||||||||
PDL BioPharma Inc.(a)(c) |
(4,374 | ) | (9,183 | ) | ||||
|
|
|||||||
Total
Investments Sold Short |
|
(9,183 | ) | |||||
|
|
|||||||
Total
Investments, Net of Investments Sold Short — 108.3% |
|
11,391,162,464 | ||||||
Other Assets, Less Liabilities — (8.3)% |
|
(876,493,709 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
$ | 10,514,668,755 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
(f) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
S C H E D U L E O F I N V E S T M E N T S |
13 |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® Biotechnology ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/21 |
Shares Held at 09/30/21 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 1,133,003,134 | $ | — | $ | (266,606,257 | )(a) | $ | 76,897 | $ | (174,392 | ) | $ | 866,299,382 | 865,866,449 | $ | 1,351,160 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
24,820,000 | — | (7,110,000 | )(a) | — | — | 17,710,000 | 17,710,000 | 594 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 76,897 | $ | (174,392 | ) | $ | 884,009,382 | $ | 1,351,754 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 |
||||||||||||||||
E-Mini Health Care Sector Index |
34 | 12/17/21 | $ | 4,364 | $ | (167,686 | ) | |||||||||
Russell 2000 E-Mini Index |
18 | 12/17/21 | 1,981 | (36,140 | ) | |||||||||||
|
|
|||||||||||||||
$ | (203,826 | ) | ||||||||||||||
|
|
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) |
$ | 203,826 | ||
|
|
(a) |
Net cumulative 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 September 30, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity Contracts |
||||
Net Realized Gain (Loss) from: |
||||
Futures contracts |
$ | 35,215 | ||
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Futures contracts |
$ | (153,756 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 6,721,103 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
14 | 2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® Biotechnology 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 |
$ | 10,507,104,477 | $ | 55,896 | $ | 1,892 | $ | 10,507,162,265 | ||||||||
Money Market Funds |
884,009,382 | — | — | 884,009,382 | ||||||||||||
Liabilities |
||||||||||||||||
Common Stocks |
— | — | (9,183 | ) | (9,183 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 11,391,113,859 | $ | 55,896 | $ | (7,291 | ) | $ | 11,391,162,464 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (203,826 | ) | $ | — | $ | — | $ | (203,826 | ) | ||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
15 |
Schedule of Investments (unaudited) September 30, 2021 |
iShares® Expanded Tech Sector ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Communications Equipment — 2.5% | ||||||||
Arista Networks Inc.(a) |
14,502 | $ | 4,983,467 | |||||
Calix Inc.(a) |
13,905 | 687,324 | ||||||
Cambium Networks Corp.(a) |
2,883 | 104,336 | ||||||
Ciena Corp.(a) |
39,795 | 2,043,473 | ||||||
Cisco Systems Inc. |
1,090,081 | 59,333,109 | ||||||
CommScope Holding Co. Inc.(a) |
53,934 | 732,963 | ||||||
Extreme Networks Inc.(a) |
32,782 | 322,903 | ||||||
F5 Networks Inc.(a) |
15,502 | 3,081,488 | ||||||
Harmonic Inc.(a) |
27,605 | 241,544 | ||||||
Infinera Corp.(a)(b) |
51,807 | 431,034 | ||||||
Inseego Corp.(a)(b) |
15,995 | 106,527 | ||||||
Juniper Networks Inc. |
83,512 | 2,298,250 | ||||||
Lumentum Holdings Inc.(a) |
19,844 | 1,657,768 | ||||||
Motorola Solutions Inc. |
43,845 | 10,186,070 | ||||||
NETGEAR Inc.(a) |
8,132 | 259,492 | ||||||
NetScout Systems Inc.(a) |
18,811 | 506,957 | ||||||
Plantronics Inc.(a) |
9,708 | 249,593 | ||||||
Ribbon Communications Inc.(a) |
32,507 | 194,392 | ||||||
Ubiquiti Inc. |
1,626 | 485,637 | ||||||
Viasat Inc.(a)(b) |
18,986 | 1,045,559 | ||||||
Viavi Solutions Inc.(a) |
60,033 | 944,919 | ||||||
|
|
|||||||
89,896,805 | ||||||||
Diversified Telecommunication Services — 0.0% | ||||||||
EchoStar Corp., Class A(a)(b) |
11,220 | 286,222 | ||||||
|
|
|||||||
Electronic Equipment, Instruments & Components — 2.5% | ||||||||
Advanced Energy Industries Inc. |
10,031 | 880,220 | ||||||
Amphenol Corp., Class A |
154,894 | 11,342,888 | ||||||
Arrow Electronics Inc.(a) |
18,596 | 2,088,145 | ||||||
Avnet Inc. |
25,910 | 957,893 | ||||||
Badger Meter Inc. |
7,635 | 772,204 | ||||||
Belden Inc. |
11,519 | 671,097 | ||||||
Benchmark Electronics Inc. |
9,637 | 257,404 | ||||||
CDW Corp./DE |
35,603 | 6,480,458 | ||||||
Celestica Inc.(a)(b) |
28,626 | 254,199 | ||||||
Cognex Corp. |
45,495 | 3,649,609 | ||||||
Coherent Inc.(a) |
6,350 | 1,588,071 | ||||||
Corning Inc. |
199,028 | 7,262,532 | ||||||
Fabrinet(a) |
9,584 | 982,456 | ||||||
II-VI Inc.(a)(b) |
27,190 | 1,613,998 | ||||||
Insight Enterprises Inc.(a)(b) |
9,204 | 829,096 | ||||||
IPG Photonics Corp.(a) |
9,151 | 1,449,518 | ||||||
Itron Inc.(a) |
11,819 | 893,871 | ||||||
Jabil Inc. |
37,761 | 2,204,110 | ||||||
Keysight Technologies Inc.(a) |
47,703 | 7,837,126 | ||||||
Knowles Corp.(a) |
24,404 | 457,331 | ||||||
Littelfuse Inc. |
6,385 | 1,744,829 | ||||||
Methode Electronics Inc. |
9,649 | 405,740 | ||||||
MicroVision Inc.(a)(b) |
41,079 | 453,923 | ||||||
National Instruments Corp. |
34,407 | 1,349,787 | ||||||
Novanta Inc.(a)(b) |
9,221 | 1,424,644 | ||||||
OSI Systems Inc.(a) |
4,327 | 410,200 | ||||||
PAR Technology Corp.(a)(b) |
6,215 | 382,285 | ||||||
Plexus Corp.(a) |
7,137 | 638,119 | ||||||
Rogers Corp.(a) |
4,898 | 913,379 | ||||||
Sanmina Corp.(a)(b) |
17,065 | 657,685 | ||||||
SYNNEX Corp. |
10,808 | 1,125,113 | ||||||
TE Connectivity Ltd. |
84,931 | 11,654,232 |
Security | Shares | Value | ||||||
Electronic Equipment, Instruments & Components (continued) | ||||||||
Trimble Inc.(a) |
64,935 | $ | 5,340,904 | |||||
TTM Technologies Inc.(a)(b) |
25,826 | 324,633 | ||||||
Velodyne Lidar Inc.(a)(b) |
25,319 | 149,888 | ||||||
Vishay Intertechnology Inc. |
34,295 | 688,986 | ||||||
Vontier Corp. |
43,970 | 1,477,392 | ||||||
Zebra Technologies Corp., Class A(a) |
13,828 | 7,127,228 | ||||||
|
|
|||||||
88,741,193 | ||||||||
Entertainment — 2.9% | ||||||||
Activision Blizzard Inc. |
201,379 | 15,584,721 | ||||||
Electronic Arts Inc. |
73,689 | 10,482,260 | ||||||
Netflix Inc.(a) |
114,486 | 69,875,385 | ||||||
Skillz Inc.(a)(b) |
65,464 | 642,857 | ||||||
Take-Two Interactive Software Inc.(a) |
30,075 | 4,633,655 | ||||||
Zynga Inc., Class A(a) |
263,324 | 1,982,830 | ||||||
|
|
|||||||
103,201,708 | ||||||||
Interactive Media & Services — 15.9% | ||||||||
Alphabet Inc., Class A(a) |
58,431 | 156,216,447 | ||||||
Alphabet Inc., Class C, NVS(a) |
54,678 | 145,733,820 | ||||||
Bumble Inc., Class A(a)(b) |
18,334 | 916,333 | ||||||
Cargurus Inc.(a) |
22,387 | 703,176 | ||||||
Eventbrite Inc., Class A(a) |
19,475 | 368,272 | ||||||
Facebook Inc., Class A(a) |
616,617 | 209,273,644 | ||||||
fuboTV Inc.(a)(b) |
36,683 | 878,925 | ||||||
IAC/InterActiveCorp.(a) |
21,688 | 2,825,729 | ||||||
Match Group Inc.(a) |
71,677 | 11,252,572 | ||||||
MediaAlpha Inc., Class A(a) |
5,722 | 106,887 | ||||||
Pinterest Inc., Class A(a) |
143,757 | 7,324,419 | ||||||
Snap Inc., Class A, NVS(a) |
270,738 | 19,999,416 | ||||||
TripAdvisor Inc.(a) |
25,214 | 853,494 | ||||||
Twitter Inc.(a) |
206,625 | 12,478,084 | ||||||
Vimeo Inc.(a)(b) |
40,269 | 1,182,701 | ||||||
Yelp Inc.(a) |
18,240 | 679,258 | ||||||
Zillow Group Inc., Class A(a) |
9,524 | 843,636 | ||||||
Zillow Group Inc., Class C, NVS(a)(b) |
43,825 | 3,862,735 | ||||||
ZoomInfo Technologies Inc., Class A(a) |
46,773 | 2,862,040 | ||||||
|
|
|||||||
578,361,588 | ||||||||
Internet & Direct Marketing Retail — 9.3% | ||||||||
Amazon.com Inc.(a) |
93,628 | 307,571,725 | ||||||
Chewy Inc., Class A(a)(b) |
22,400 | 1,525,664 | ||||||
eBay Inc. |
168,312 | 11,726,297 | ||||||
Etsy Inc.(a) |
32,776 | 6,816,097 | ||||||
Groupon Inc.(a)(b) |
5,971 | 136,199 | ||||||
Overstock.com Inc.(a)(b) |
11,144 | 868,341 | ||||||
Porch Group Inc.(a) |
19,511 | 344,954 | ||||||
Qurate Retail Inc., Series A |
94,885 | 966,878 | ||||||
RealReal Inc. (The)(a) |
20,865 | 275,001 | ||||||
Revolve Group Inc.(a) |
9,303 | 574,646 | ||||||
Shutterstock Inc. |
5,935 | 672,554 | ||||||
Stamps.com Inc.(a) |
4,805 | 1,584,641 | ||||||
Stitch Fix Inc., Class A(a) |
18,595 | 742,870 | ||||||
Wayfair Inc., Class A(a)(b) |
20,025 | 5,116,588 | ||||||
|
|
|||||||
338,922,455 | ||||||||
IT Services — 17.1% | ||||||||
Accenture PLC, Class A |
164,031 | 52,476,798 | ||||||
Affirm Holdings Inc.(a) |
24,075 | 2,868,055 | ||||||
Akamai Technologies Inc.(a)(b) |
42,163 | 4,409,828 | ||||||
Alliance Data Systems Corp. |
12,928 | 1,304,306 | ||||||
Automatic Data Processing Inc. |
109,362 | 21,863,651 | ||||||
Broadridge Financial Solutions Inc. |
29,971 | 4,994,367 |
16 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® Expanded Tech Sector ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
IT Services (continued) | ||||||||
CGI Inc.(a)(b) |
56,708 | $ | 4,806,570 | |||||
Cloudflare Inc., Class A(a) |
68,214 | 7,684,307 | ||||||
Cognizant Technology Solutions Corp., Class A |
136,097 | 10,099,758 | ||||||
Concentrix Corp.(a) |
11,088 | 1,962,576 | ||||||
Conduent Inc.(a) |
38,940 | 256,615 | ||||||
CSG Systems International Inc |
8,633 | 416,111 | ||||||
DXC Technology Co.(a) |
65,227 | 2,192,279 | ||||||
EPAM Systems Inc.(a) |
14,672 | 8,370,083 | ||||||
Euronet Worldwide Inc.(a) |
13,713 | 1,745,391 | ||||||
EVERTEC Inc. |
15,229 | 696,270 | ||||||
ExlService Holdings Inc.(a) |
8,530 | 1,050,214 | ||||||
Fastly Inc., Class A(a)(b) |
27,475 | 1,111,089 | ||||||
Fidelity National Information Services Inc. |
159,636 | 19,424,509 | ||||||
Fiserv Inc.(a)(b) |
153,977 | 16,706,505 | ||||||
FleetCor Technologies Inc.(a) |
21,390 | 5,588,565 | ||||||
Gartner Inc.(a) |
21,660 | 6,582,041 | ||||||
Genpact Ltd. |
44,489 | 2,113,672 | ||||||
Global Payments Inc. |
76,063 | 11,986,008 | ||||||
GoDaddy Inc., Class A(a) |
43,494 | 3,031,532 | ||||||
International Business Machines Corp. |
231,812 | 32,205,641 | ||||||
Jack Henry & Associates Inc. |
19,316 | 3,168,983 | ||||||
LiveRamp Holdings Inc.(a) |
17,389 | 821,282 | ||||||
Mastercard Inc., Class A |
225,341 | 78,346,559 | ||||||
Maximus Inc. |
16,097 | 1,339,270 | ||||||
MongoDB Inc.(a)(b) |
16,738 | 7,892,134 | ||||||
Okta Inc.(a) |
32,373 | 7,683,408 | ||||||
Paychex Inc. |
82,925 | 9,324,916 | ||||||
PayPal Holdings Inc.(a) |
303,944 | 79,089,268 | ||||||
Perficient Inc.(a)(b) |
8,602 | 995,251 | ||||||
Repay Holdings Corp.(a)(b) |
19,463 | 448,233 | ||||||
Sabre Corp.(a) |
83,724 | 991,292 | ||||||
Shift4 Payments Inc., Class A(a)(b) |
12,230 | 948,070 | ||||||
Shopify Inc., Class A(a)(b) |
29,198 | 39,586,064 | ||||||
Snowflake Inc., Class A(a)(b) |
58,923 | 17,820,083 | ||||||
SolarWinds Corp. |
9,348 | 156,392 | ||||||
Square Inc., Class A(a) |
102,757 | 24,645,239 | ||||||
Switch Inc., Class A |
32,708 | 830,456 | ||||||
TTEC Holdings Inc. |
4,777 | 446,793 | ||||||
Twilio Inc., Class A(a) |
43,225 | 13,790,936 | ||||||
Unisys Corp.(a) |
17,432 | 438,240 | ||||||
VeriSign Inc.(a) |
25,203 | 5,166,867 | ||||||
Verra Mobility Corp.(a)(b) |
35,315 | 532,197 | ||||||
Visa Inc., Class A |
436,540 | 97,239,285 | ||||||
Western Union Co. (The) |
104,389 | 2,110,746 | ||||||
WEX Inc.(a) |
11,636 | 2,049,565 | ||||||
|
|
|||||||
621,808,270 | ||||||||
Semiconductors & Semiconductor Equipment — 16.0% | ||||||||
Advanced Micro Devices Inc.(a) |
313,724 | 32,282,200 | ||||||
Allegro MicroSystems Inc.(a) |
14,241 | 455,142 | ||||||
Ambarella Inc.(a) |
9,432 | 1,468,940 | ||||||
Amkor Technology Inc. |
25,298 | 631,185 | ||||||
Analog Devices Inc. |
139,066 | 23,290,774 | ||||||
Applied Materials Inc. |
236,392 | 30,430,742 | ||||||
Broadcom Inc. |
106,122 | 51,461,742 | ||||||
Brooks Automation Inc. |
19,354 | 1,980,882 | ||||||
Cirrus Logic Inc.(a) |
14,756 | 1,215,157 | ||||||
CMC Materials Inc. |
7,624 | 939,506 | ||||||
Cohu Inc.(a) |
12,593 | 402,220 | ||||||
Diodes Inc.(a) |
11,643 | 1,054,739 | ||||||
Enphase Energy Inc.(a) |
34,859 | 5,227,804 |
Security | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment (continued) | ||||||||
Entegris Inc. |
34,960 | $ | 4,401,464 | |||||
First Solar Inc.(a) |
25,603 | 2,444,062 | ||||||
FormFactor Inc.(a) |
20,286 | 757,276 | ||||||
Ichor Holdings Ltd.(a) |
7,302 | 300,039 | ||||||
Intel Corp. |
1,049,417 | 55,912,938 | ||||||
KLA Corp. |
39,550 | 13,229,871 | ||||||
Kulicke & Soffa Industries Inc. |
16,051 | 935,452 | ||||||
Lam Research Corp. |
36,836 | 20,965,209 | ||||||
Lattice Semiconductor Corp.(a) |
35,105 | 2,269,538 | ||||||
MACOM Technology Solutions Holdings Inc.(a) |
12,215 | 792,387 | ||||||
Marvell Technology Inc. |
212,200 | 12,797,782 | ||||||
MaxLinear Inc.(a) |
17,792 | 876,256 | ||||||
Microchip Technology Inc. |
70,899 | 10,882,288 | ||||||
Micron Technology Inc. |
290,994 | 20,654,754 | ||||||
MKS Instruments Inc. |
14,224 | 2,146,544 | ||||||
Monolithic Power Systems Inc. |
11,146 | 5,402,243 | ||||||
NVIDIA Corp. |
644,601 | 133,535,543 | ||||||
NXP Semiconductors NV |
68,653 | 13,447,063 | ||||||
ON Semiconductor Corp.(a) |
111,046 | 5,082,575 | ||||||
Onto Innovation Inc.(a) |
12,802 | 924,945 | ||||||
Power Integrations Inc. |
15,691 | 1,553,252 | ||||||
Qorvo Inc.(a) |
28,779 | 4,811,561 | ||||||
QUALCOMM Inc. |
291,778 | 37,633,526 | ||||||
Rambus Inc.(a) |
28,198 | 625,996 | ||||||
Semtech Corp.(a) |
16,581 | 1,292,821 | ||||||
Silicon Laboratories Inc.(a) |
10,570 | 1,481,491 | ||||||
SiTime Corp.(a) |
3,240 | 661,511 | ||||||
Skyworks Solutions Inc. |
42,717 | 7,038,907 | ||||||
SolarEdge Technologies Inc.(a) |
13,515 | 3,584,448 | ||||||
SunPower Corp.(a) |
20,972 | 475,645 | ||||||
Synaptics Inc.(a) |
9,052 | 1,626,916 | ||||||
Teradyne Inc. |
42,718 | 4,663,524 | ||||||
Texas Instruments Inc. |
238,805 | 45,900,709 | ||||||
Ultra Clean Holdings Inc.(a) |
11,393 | 485,342 | ||||||
Universal Display Corp. |
11,264 | 1,925,693 | ||||||
Xilinx Inc. |
63,930 | 9,652,791 | ||||||
|
|
|||||||
582,013,395 | ||||||||
Software — 24.4% | ||||||||
8x8 Inc.(a)(b) |
28,753 | 672,533 | ||||||
ACI Worldwide Inc.(a) |
30,608 | 940,584 | ||||||
Adobe Inc.(a) |
123,230 | 70,945,976 | ||||||
Alarm.com Holdings Inc.(a)(b) |
12,022 | 940,000 | ||||||
Altair Engineering Inc., Class A(a)(b) |
12,209 | 841,688 | ||||||
Alteryx Inc., Class A(a)(b) |
15,225 | 1,112,947 | ||||||
Anaplan Inc.(a) |
37,603 | 2,289,647 | ||||||
ANSYS Inc.(a) |
22,564 | 7,681,914 | ||||||
Appfolio Inc., Class A(a) |
4,894 | 589,238 | ||||||
Appian Corp.(a)(b) |
10,231 | 946,470 | ||||||
Asana Inc., Class A(a) |
20,215 | 2,099,126 | ||||||
Aspen Technology Inc.(a) |
17,485 | 2,147,158 | ||||||
Autodesk Inc.(a) |
56,971 | 16,246,420 | ||||||
Avalara Inc.(a) |
22,417 | 3,917,819 | ||||||
Avaya Holdings Corp.(a) |
21,806 | 431,541 | ||||||
Bill.com Holdings Inc.(a) |
22,858 | 6,101,943 | ||||||
Black Knight Inc.(a) |
40,510 | 2,916,720 | ||||||
Blackbaud Inc.(a) |
10,885 | 765,760 | ||||||
BlackBerry Ltd.(a)(b) |
131,000 | 1,274,630 | ||||||
Blackline Inc.(a)(b) |
13,763 | 1,624,860 | ||||||
Bottomline Technologies DE Inc.(a) |
10,186 | 400,106 | ||||||
Box Inc., Class A(a) |
38,521 | 911,792 |
S C H E D U L E O F I N V E S T M E N T S |
17 |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® Expanded Tech Sector ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Software (continued) | ||||||||
BTRS Holdings Inc.(a) |
16,736 | $ | 178,071 | |||||
Cadence Design Systems Inc.(a) |
71,669 | 10,853,553 | ||||||
CDK Global Inc. |
31,185 | 1,326,922 | ||||||
Cerence Inc.(a) |
9,758 | 937,841 | ||||||
Ceridian HCM Holding Inc.(a) |
34,925 | 3,933,253 | ||||||
Citrix Systems Inc. |
32,287 | 3,466,655 | ||||||
Cloudera Inc.(a) |
58,587 | 935,634 | ||||||
CommVault Systems Inc.(a) |
11,718 | 882,483 | ||||||
Cornerstone OnDemand Inc.(a) |
15,039 | 861,133 | ||||||
Coupa Software Inc.(a) |
19,089 | 4,183,927 | ||||||
Crowdstrike Holdings Inc., Class A(a) |
51,592 | 12,680,282 | ||||||
Datadog Inc., Class A(a) |
62,077 | 8,774,584 | ||||||
Descartes
Systems Group Inc. |
22,147 | 1,799,665 | ||||||
Digital Turbine Inc.(a) |
22,644 | 1,556,775 | ||||||
DocuSign Inc.(a) |
50,450 | 12,987,343 | ||||||
Dolby Laboratories Inc., Class A |
16,832 | 1,481,216 | ||||||
Domo Inc., Class B(a) |
7,390 | 624,012 | ||||||
Dropbox Inc., Class A(a) |
74,381 | 2,173,413 | ||||||
Duck Creek Technologies Inc.(a)(b) |
19,440 | 860,026 | ||||||
Dynatrace Inc.(a) |
50,793 | 3,604,779 | ||||||
E2open Parent Holdings Inc.(a) |
44,968 | 508,138 | ||||||
Elastic NV(a) |
18,481 | 2,753,484 | ||||||
Envestnet Inc.(a) |
13,215 | 1,060,372 | ||||||
Everbridge Inc.(a) |
9,795 | 1,479,437 | ||||||
Fair Isaac Corp.(a) |
7,351 | 2,925,183 | ||||||
Five9 Inc.(a) |
17,509 | 2,796,888 | ||||||
Fortinet Inc.(a) |
35,101 | 10,250,896 | ||||||
Guidewire Software Inc.(a) |
21,532 | 2,559,509 | ||||||
HubSpot Inc.(a) |
11,563 | 7,817,629 | ||||||
InterDigital Inc. |
7,835 | 531,370 | ||||||
Intuit Inc. |
70,684 | 38,134,725 | ||||||
J2 Global Inc.(a)(b) |
12,482 | 1,705,291 | ||||||
Jamf Holding Corp.(a)(b) |
14,065 | 541,784 | ||||||
Lightspeed Commerce Inc.(a)(b) |
32,382 | 3,122,596 | ||||||
LivePerson Inc.(a)(b) |
16,900 | 996,255 | ||||||
Mandiant Inc. |
61,698 | 1,098,224 | ||||||
Manhattan Associates Inc.(a) |
16,404 | 2,510,304 | ||||||
Marathon Digital Holdings Inc.(a) |
25,760 | 813,501 | ||||||
McAfee Corp., Class A |
18,962 | 419,250 | ||||||
Medallia Inc.(a) |
30,315 | 1,026,769 | ||||||
Microsoft Corp. |
1,097,441 | 309,390,567 | ||||||
MicroStrategy Inc., Class A(a)(b) |
2,027 | 1,172,417 | ||||||
Mimecast Ltd.(a) |
15,831 | 1,006,852 | ||||||
Momentive Global Inc.(a) |
33,232 | 651,347 | ||||||
N-Able Inc.(a)(b) |
17,588 | 218,267 | ||||||
NCR Corp.(a) |
33,728 | 1,307,297 | ||||||
New Relic Inc.(a) |
15,113 | 1,084,660 | ||||||
NortonLifeLock Inc. |
150,480 | 3,807,144 | ||||||
Nuance Communications Inc.(a) |
74,057 | 4,076,097 | ||||||
Nutanix Inc., Class A(a) |
53,136 | 2,003,227 | ||||||
Open Text Corp. |
70,313 | 3,427,056 | ||||||
Oracle Corp. |
426,099 | 37,126,006 | ||||||
Pagerduty Inc.(a)(b) |
19,276 | 798,412 | ||||||
Palantir Technologies Inc., Class A(a) |
405,871 | 9,757,139 | ||||||
Palo Alto Networks Inc.(a) |
25,218 | 12,079,422 | ||||||
Paycom Software Inc.(a) |
12,447 | 6,170,600 | ||||||
Paylocity Holding Corp.(a) |
10,180 | 2,854,472 | ||||||
Pegasystems Inc. |
10,368 | 1,317,773 | ||||||
Ping Identity Holding Corp.(a) |
12,754 | 313,366 | ||||||
Progress Software Corp. |
10,995 | 540,844 |
Security | Shares | Value | ||||||
Software (continued) | ||||||||
PROS Holdings Inc.(a) |
10,248 | $ | 363,599 | |||||
PTC Inc.(a) |
27,451 | 3,288,355 | ||||||
Q2 Holdings Inc.(a) |
14,620 | 1,171,647 | ||||||
QAD Inc., Class A |
3,032 | 264,966 | ||||||
Qualtrics International Inc., Class A(a) |
16,339 | 698,329 | ||||||
Qualys Inc.(a) |
8,791 | 978,350 | ||||||
Rapid7 Inc.(a)(b) |
14,339 | 1,620,594 | ||||||
RingCentral Inc., Class A(a) |
20,997 | 4,566,847 | ||||||
Riot Blockchain Inc.(a) |
21,881 | 562,342 | ||||||
SailPoint
Technologies Holdings |
23,834 | 1,022,002 | ||||||
salesforce.com Inc.(a) |
251,304 | 68,158,671 | ||||||
ServiceNow Inc.(a) |
51,239 | 31,884,492 | ||||||
Smartsheet Inc., Class A(a) |
32,396 | 2,229,493 | ||||||
Splunk Inc.(a) |
42,369 | 6,131,218 | ||||||
Sprout Social Inc., Class A(a) |
11,672 | 1,423,400 | ||||||
SPS Commerce Inc.(a) |
9,205 | 1,484,858 | ||||||
SS&C Technologies Holdings Inc |
57,353 | 3,980,298 | ||||||
Synopsys Inc.(a) |
39,507 | 11,828,791 | ||||||
Telos Corp.(a) |
13,652 | 387,990 | ||||||
Tenable Holdings Inc.(a) |
23,457 | 1,082,306 | ||||||
Teradata Corp.(a) |
27,936 | 1,602,130 | ||||||
Trade Desk Inc. (The), Class A(a)(b) |
112,140 | 7,883,442 | ||||||
Tyler Technologies Inc.(a) |
10,593 | 4,858,479 | ||||||
Varonis Systems Inc.(a) |
27,608 | 1,679,947 | ||||||
Verint Systems Inc.(a)(b) |
17,142 | 767,790 | ||||||
VMware Inc., Class A(a) |
20,813 | 3,094,893 | ||||||
Vonage Holdings Corp.(a) |
65,215 | 1,051,266 | ||||||
Wolfspeed Inc. |
29,776 | 2,403,816 | ||||||
Workday Inc., Class A(a) |
48,940 | 12,229,617 | ||||||
Workiva Inc.(a)(b) |
11,103 | 1,565,079 | ||||||
Xperi Holding Corp. |
27,101 | 510,583 | ||||||
Yext Inc.(a)(b) |
29,420 | 353,923 | ||||||
Zendesk Inc.(a) |
30,859 | 3,591,679 | ||||||
Zoom Video Communications Inc., Class A(a) |
55,975 | 14,637,462 | ||||||
Zscaler Inc.(a) |
20,218 | 5,301,564 | ||||||
Zuora Inc., Class A(a)(b) |
27,618 | 457,906 | ||||||
|
|
|||||||
887,173,133 | ||||||||
Technology Hardware, Storage & Peripherals — 9.3% | ||||||||
3D Systems Corp.(a) |
32,100 | 884,997 | ||||||
Apple Inc. |
2,117,313 | 299,599,790 | ||||||
Corsair Gaming Inc.(a)(b) |
8,501 | 220,431 | ||||||
Dell Technologies Inc., Class C(a) |
71,878 | 7,478,187 | ||||||
Hewlett Packard Enterprise Co |
336,824 | 4,799,742 | ||||||
HP Inc. |
311,022 | 8,509,562 | ||||||
NetApp Inc. |
57,994 | 5,205,541 | ||||||
Pure Storage Inc., Class A(a) |
68,945 | 1,734,656 | ||||||
Seagate Technology Holdings PLC |
54,220 | 4,474,234 | ||||||
Super Micro Computer Inc.(a) |
11,151 | 407,792 | ||||||
Western Digital Corp.(a) |
79,033 | 4,460,623 | ||||||
Xerox Holdings Corp. |
35,587 | 717,790 | ||||||
|
|
|||||||
338,493,345 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.9% |
|
3,628,898,114 | ||||||
|
|
|||||||
Short-Term Investments | ||||||||
Money Market Funds — 1.9% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e) |
64,891,637 | 64,924,083 |
18 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® Expanded Tech Sector ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d) |
4,159,000 | $ | 4,159,000 | |||||
|
|
|||||||
69,083,083 | ||||||||
|
|
|||||||
Total
Short-Term Investments — 1.9% |
|
69,083,083 | ||||||
|
|
|||||||
Total
Investments in Securities — 101.8% |
|
3,697,981,197 | ||||||
Other Assets, Less Liabilities — (1.8)% |
|
(65,554,268 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
|
$ | 3,632,426,929 | |||||
|
|
(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. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/21 |
Shares Held at 09/30/21 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 43,347,251 | $ | 21,572,254 | (a) | $ | — | $ | 7,001 | $ | (2,423 | ) | $ | 64,924,083 | 64,891,637 | $ | 71,571 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
2,339,000 | 1,820,000 | (a) | — | — | — | 4,159,000 | 4,159,000 | 158 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 7,001 | $ | (2,423 | ) | $ | 69,083,083 | $ | 71,729 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 |
||||||||||||||||
E-Mini S&P Communication Services Index |
17 | 12/17/21 | $ | 1,782 | $ | (56,172 | ) | |||||||||
E-Mini Technoloy Select Sector Index |
10 | 12/17/21 | 1,505 | (84,823 | ) | |||||||||||
|
|
|||||||||||||||
$ | (140,995 | ) | ||||||||||||||
|
|
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 |
$ | 140,995 | ||
|
|
S C H E D U L E O F I N V E S T M E N T S |
19 |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® Expanded Tech Sector ETF |
For the period ended September 30, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity Contracts |
||||
Net Realized Gain (Loss) from: |
||||
Futures contracts |
$ | 386,240 | ||
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Futures contracts |
$ | (139,166 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 2,761,558 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
Common Stocks |
$ | 3,628,898,114 | $ | — | $ | — | $ | 3,628,898,114 | ||||||||
Money Market Funds |
69,083,083 | — | — | 69,083,083 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 3,697,981,197 | $ | — | $ | — | $ | 3,697,981,197 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (140,995 | ) | $ | — | $ | — | $ | (140,995 | ) | ||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
20 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) September 30, 2021 |
iShares® Expanded Tech-Software Sector ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Application Software — 62.4% | ||||||||
8x8 Inc.(a) |
243,159 | $ | 5,687,489 | |||||
ACI Worldwide Inc.(a) |
255,103 | 7,839,315 | ||||||
Adobe Inc.(a) |
745,036 | 428,932,126 | ||||||
Alarm.com Holdings Inc.(a) |
99,449 | 7,775,917 | ||||||
Altair Engineering Inc., Class A(a)(b) |
101,069 | 6,967,697 | ||||||
Alteryx Inc., Class A(a) |
128,850 | 9,418,935 | ||||||
Anaplan Inc.(a) |
313,521 | 19,090,294 | ||||||
ANSYS Inc.(a) |
189,007 | 64,347,433 | ||||||
Appfolio Inc., Class A(a)(b) |
40,947 | 4,930,019 | ||||||
Asana Inc., Class A(a) |
169,117 | 17,561,109 | ||||||
Aspen Technology Inc.(a) |
147,263 | 18,083,896 | ||||||
Autodesk Inc.(a) |
476,397 | 135,854,132 | ||||||
Avalara Inc.(a) |
186,979 | 32,678,320 | ||||||
Avaya Holdings Corp.(a) |
182,423 | 3,610,151 | ||||||
Bill.com Holdings Inc.(a)(b) |
191,085 | 51,010,141 | ||||||
Blackbaud Inc.(a) |
91,352 | 6,426,613 | ||||||
Blackline Inc.(a) |
115,141 | 13,593,546 | ||||||
Bottomline Technologies DE Inc.(a) |
85,672 | 3,365,196 | ||||||
Box Inc., Class A(a) |
332,544 | 7,871,316 | ||||||
BTRS Holdings Inc.(a)(b) |
156,625 | 1,666,490 | ||||||
Cadence Design Systems Inc.(a) |
599,208 | 90,744,060 | ||||||
CDK Global Inc. |
263,787 | 11,224,137 | ||||||
Cerence Inc.(a)(b) |
82,328 | 7,912,544 | ||||||
Ceridian HCM Holding Inc.(a) |
292,171 | 32,904,298 | ||||||
Citrix Systems Inc. |
269,115 | 28,894,878 | ||||||
Cloudera Inc.(a) |
483,982 | 7,729,193 | ||||||
Cornerstone OnDemand Inc.(a) |
125,804 | 7,203,537 | ||||||
Coupa Software Inc.(a) |
159,271 | 34,909,018 | ||||||
Datadog Inc., Class A(a) |
518,934 | 73,351,321 | ||||||
Descartes Systems Group Inc. (The)(a)(b) |
183,308 | 14,895,608 | ||||||
Digital Turbine Inc.(a)(b) |
189,430 | 13,023,313 | ||||||
DocuSign Inc.(a) |
421,846 | 108,595,816 | ||||||
Domo Inc., Class B(a) |
61,556 | 5,197,789 | ||||||
Dropbox Inc., Class A(a) |
622,876 | 18,200,437 | ||||||
Duck Creek Technologies Inc.(a)(b) |
162,630 | 7,194,751 | ||||||
Dynatrace Inc.(a) |
424,918 | 30,156,430 | ||||||
E2open Parent Holdings Inc.(a) |
376,192 | 4,250,970 | ||||||
Elastic NV(a) |
154,607 | 23,034,897 | ||||||
Envestnet Inc.(a) |
108,970 | 8,743,753 | ||||||
Everbridge Inc.(a) |
83,146 | 12,558,372 | ||||||
Fair Isaac Corp.(a) |
61,492 | 24,469,512 | ||||||
Five9 Inc.(a) |
146,650 | 23,425,871 | ||||||
Guidewire Software Inc.(a)(b) |
180,130 | 21,412,053 | ||||||
HubSpot Inc.(a)(b) |
96,731 | 65,398,862 | ||||||
InterDigital Inc. |
66,800 | 4,530,376 | ||||||
Intuit Inc. |
591,696 | 319,225,909 | ||||||
J2 Global Inc.(a)(b) |
104,559 | 14,284,851 | ||||||
Jamf Holding Corp.(a)(b) |
117,668 | 4,532,571 | ||||||
Lightspeed Commerce Inc.(a)(b) |
270,901 | 26,122,983 | ||||||
LivePerson Inc.(a)(b) |
140,545 | 8,285,128 | ||||||
Mandiant Inc. |
518,143 | 9,222,945 | ||||||
Manhattan Associates Inc.(a)(b) |
137,339 | 21,016,987 | ||||||
Medallia Inc.(a) |
254,181 | 8,609,110 | ||||||
MicroStrategy Inc., Class A(a)(b) |
16,890 | 9,769,176 | ||||||
Mimecast Ltd.(a)(b) |
132,436 | 8,422,930 | ||||||
Momentive Global Inc.(a)(b) |
278,005 | 5,448,898 | ||||||
New Relic Inc.(a) |
126,425 | 9,073,522 | ||||||
Nuance Communications Inc.(a) |
617,499 | 33,987,145 |
Security | Shares | Value | ||||||
Application Software (continued) | ||||||||
Nutanix Inc., Class A(a) |
442,603 | $ | 16,686,133 | |||||
Open Text Corp. |
588,217 | 28,669,697 | ||||||
Pagerduty Inc.(a)(b) |
161,255 | 6,679,182 | ||||||
Palantir Technologies Inc., Class A(a) |
3,393,323 | 81,575,485 | ||||||
Paycom Software Inc.(a) |
104,133 | 51,623,935 | ||||||
Paylocity Holding Corp.(a) |
85,157 | 23,878,023 | ||||||
Pegasystems Inc. |
88,231 | 11,214,160 | ||||||
PROS Holdings Inc.(a) |
86,519 | 3,069,694 | ||||||
PTC Inc.(a) |
228,846 | 27,413,462 | ||||||
Q2 Holdings Inc.(a)(b) |
122,538 | 9,820,195 | ||||||
QAD Inc., Class A |
25,251 | 2,206,685 | ||||||
Qualtrics International Inc., Class A(a) |
136,687 | 5,842,002 | ||||||
RingCentral Inc., Class A(a) |
176,349 | 38,355,908 | ||||||
Riot Blockchain Inc.(a) |
178,739 | 4,593,592 | ||||||
salesforce.com Inc.(a) |
1,890,679 | 512,789,958 | ||||||
Smartsheet Inc., Class A(a)(b) |
271,017 | 18,651,390 | ||||||
Splunk Inc.(a)(b) |
355,079 | 51,383,482 | ||||||
Sprout Social Inc., Class A(a) |
97,785 | 11,924,881 | ||||||
SPS Commerce Inc.(a) |
77,619 | 12,520,721 | ||||||
SS&C Technologies Holdings Inc. |
481,060 | 33,385,564 | ||||||
Synopsys Inc.(a) |
330,329 | 98,903,806 | ||||||
Trade Desk Inc. (The), Class A(a)(b) |
940,394 | 66,109,698 | ||||||
Tyler Technologies Inc.(a) |
88,473 | 40,578,141 | ||||||
Verint Systems Inc.(a)(b) |
140,800 | 6,306,432 | ||||||
Vonage Holdings Corp.(a)(b) |
545,573 | 8,794,637 | ||||||
Workday Inc., Class A(a) |
409,203 | 102,255,738 | ||||||
Workiva Inc.(a) |
93,065 | 13,118,442 | ||||||
Yext Inc.(a) |
246,126 | 2,960,896 | ||||||
Zendesk Inc.(a) |
259,991 | 30,260,352 | ||||||
Zoom Video Communications Inc., Class A(a) |
468,072 | 122,400,828 | ||||||
|
|
|||||||
3,448,647,205 | ||||||||
Interactive Home Entertainment — 5.0% | ||||||||
Activision Blizzard Inc. |
1,683,895 | 130,316,634 | ||||||
Electronic Arts Inc. |
616,015 | 87,628,134 | ||||||
Take-Two Interactive Software Inc.(a) |
252,402 | 38,887,576 | ||||||
Zynga Inc., Class A(a) |
2,223,352 | 16,741,841 | ||||||
|
|
|||||||
273,574,185 | ||||||||
Interactive Media & Services — 3.0% | ||||||||
Snap Inc., Class A, NVS(a)(b) |
2,267,990 | 167,536,421 | ||||||
|
|
|||||||
Internet Services & Infrastructure — 1.2% | ||||||||
Cloudflare Inc., Class A(a) |
570,236 | 64,237,085 | ||||||
SolarWinds Corp |
95,848 | 1,603,537 | ||||||
|
|
|||||||
65,840,622 | ||||||||
Systems Software — 28.4% | ||||||||
Appian Corp.(a)(b) |
85,934 | 7,949,754 | ||||||
BlackBerry Ltd.(a)(b) |
1,104,548 | 10,747,252 | ||||||
CommVault Systems Inc.(a) |
99,368 | 7,483,404 | ||||||
Crowdstrike Holdings Inc., Class A(a)(b) |
431,384 | 106,025,560 | ||||||
Dolby Laboratories Inc., Class A |
141,655 | 12,465,640 | ||||||
Fortinet Inc.(a) |
293,453 | 85,700,014 | ||||||
McAfee Corp., Class A |
158,462 | 3,503,595 | ||||||
Microsoft Corp. |
1,658,456 | 467,551,916 | ||||||
N-Able Inc.(a) |
147,137 | 1,825,970 | ||||||
NortonLifeLock Inc. |
1,259,168 | 31,856,950 | ||||||
Oracle Corp. |
3,566,901 | 310,784,084 | ||||||
Palo Alto Networks Inc.(a)(b) |
210,852 | 100,998,108 | ||||||
Ping Identity Holding Corp.(a) |
106,691 | 2,621,398 | ||||||
Progress Software Corp. |
94,782 | 4,662,327 |
S C H E D U L E O F I N V E S T M E N T S |
21 |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® Expanded Tech-Software Sector ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Systems Software (continued) | ||||||||
Qualys Inc.(a)(b) |
72,553 | $ | 8,074,423 | |||||
Rapid7 Inc.(a) |
120,837 | 13,656,998 | ||||||
SailPoint Technologies Holdings Inc.(a)(b) |
201,333 | 8,633,159 | ||||||
ServiceNow Inc.(a) |
428,950 | 266,922,716 | ||||||
Telos Corp.(a) |
114,203 | 3,245,649 | ||||||
Tenable Holdings Inc.(a) |
196,652 | 9,073,523 | ||||||
Teradata Corp.(a) |
236,333 | 13,553,698 | ||||||
Varonis Systems Inc.(a)(b) |
231,884 | 14,110,141 | ||||||
VMware Inc., Class A(a)(b) |
174,118 | 25,891,347 | ||||||
Xperi Holding Corp. |
226,950 | 4,275,738 | ||||||
Zscaler Inc.(a) |
169,145 | 44,353,202 | ||||||
Zuora Inc., Class A(a) |
241,315 | 4,001,003 | ||||||
|
|
|||||||
1,569,967,569 | ||||||||
|
|
|||||||
Total
Common Stocks — 100.0% |
5,525,566,002 | |||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 4.1% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e) |
225,480,396 | 225,593,136 |
Security | Shares | Value | ||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d) |
2,090,000 | $ | 2,090,000 | |||||
|
|
|||||||
227,683,136 | ||||||||
|
|
|||||||
Total
Short -Term Investments — 4.1% |
|
227,683,136 | ||||||
|
|
|||||||
Total
Investments in Securities — 104.1% |
|
5,753,249,138 | ||||||
Other Assets, Less Liabilities — (4.1)% |
|
(227,384,684 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
|
$ | 5,525,864,454 | |||||
|
|
(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. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/21 |
Shares Held at 09/30/21 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 224,544,053 | $ | 1,074,855 | (a) | $ | — | $ | 12,009 | $ | (37,781 | ) | $ | 225,593,136 | 225,480,396 | $ | 355,552 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
4,920,000 | — | (2,830,000 | )(a) | — | — | 2,090,000 | 2,090,000 | 222 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 12,009 | $ | (37,781 | ) | $ | 227,683,136 | $ | 355,774 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 Categorized by Risk Exposure
For the period ended September 30, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity Contracts |
||||
Net Realized Gain (Loss) from: |
||||
Futures contracts |
$ | 871,253 | ||
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Futures contracts |
$ | 13,920 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 2,325,568 |
22 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® Expanded Tech-Software Sector ETF |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
Common Stocks |
$ | 5,525,566,002 | $ | — | $ | — | $ | 5,525,566,002 | ||||||||
Money Market Funds |
227,683,136 | — | — | 227,683,136 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 5,753,249,138 | $ | — | $ | — | $ | 5,753,249,138 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
23 |
Schedule of Investments (unaudited) September 30, 2021 |
iShares® North American Natural Resources ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Construction Materials — 3.0% | ||||||||
Eagle Materials Inc. |
9,863 | $ | 1,293,631 | |||||
Martin Marietta Materials Inc. |
14,689 | 5,018,938 | ||||||
Summit Materials Inc., Class A(a) |
27,793 | 888,542 | ||||||
Vulcan Materials Co. |
31,244 | 5,285,235 | ||||||
|
|
|||||||
12,486,346 | ||||||||
Containers & Packaging — 9.4% | ||||||||
Amcor PLC |
363,080 | 4,208,097 | ||||||
AptarGroup Inc. |
15,533 | 1,853,863 | ||||||
Avery Dennison Corp. |
19,518 | 4,044,325 | ||||||
Ball Corp. |
76,914 | 6,919,953 | ||||||
Berry Global Group Inc.(a) |
31,862 | 1,939,759 | ||||||
Crown Holdings Inc. |
30,936 | 3,117,730 | ||||||
Graphic Packaging Holding Co. |
66,523 | 1,266,598 | ||||||
Greif Inc., Class A, NVS |
6,242 | 403,233 | ||||||
International Paper Co. |
92,039 | 5,146,821 | ||||||
O-I Glass Inc.(a) |
37,039 | 528,546 | ||||||
Packaging Corp. of America |
22,370 | 3,074,533 | ||||||
Pactiv Evergreen Inc. |
10,100 | 126,452 | ||||||
Sealed Air Corp. |
35,299 | 1,934,032 | ||||||
Silgan Holdings Inc. |
19,761 | 758,032 | ||||||
Sonoco Products Co. |
23,154 | 1,379,515 | ||||||
Westrock Co. |
62,877 | 3,133,161 | ||||||
|
|
|||||||
39,834,650 | ||||||||
Energy Equipment & Services — 5.5% | ||||||||
Baker Hughes Co. |
195,101 | 4,824,848 | ||||||
ChampionX Corp.(a)(b) |
47,523 | 1,062,614 | ||||||
Halliburton Co. |
209,705 | 4,533,822 | ||||||
Helmerich & Payne Inc. |
25,409 | 696,461 | ||||||
Liberty Oilfield Services Inc., Class A(a) |
24,609 | 298,507 | ||||||
NOV Inc.(a) |
92,007 | 1,206,212 | ||||||
Schlumberger NV |
329,319 | 9,761,015 | ||||||
TechnipFMC PLC(a) |
99,768 | 751,253 | ||||||
|
|
|||||||
23,134,732 | ||||||||
Metals & Mining — 14.5% | ||||||||
Agnico Eagle Mines Ltd. |
57,518 | 2,982,308 | ||||||
Alamos Gold Inc., Class A(b) |
92,535 | 666,252 | ||||||
Alcoa Corp.(a) |
44,006 | 2,153,654 | ||||||
Arconic Corp.(a) |
25,757 | 812,376 | ||||||
B2Gold Corp. |
247,666 | 847,018 | ||||||
Barrick Gold Corp. |
418,799 | 7,559,322 | ||||||
Coeur Mining Inc.(a)(b) |
60,408 | 372,717 | ||||||
Compass Minerals International Inc. |
8,016 | 516,230 | ||||||
Equinox Gold Corp.(a)(b) |
64,449 | 425,363 | ||||||
First Majestic Silver Corp.(b) |
51,472 | 581,634 | ||||||
Franco-Nevada Corp. |
45,004 | 5,846,470 | ||||||
Freeport-McMoRan Inc. |
345,716 | 11,246,142 | ||||||
Hecla Mining Co. |
126,454 | 695,497 | ||||||
Kinross Gold Corp. |
297,175 | 1,592,858 | ||||||
Kirkland Lake Gold Ltd. |
62,579 | 2,602,661 | ||||||
MP Materials Corp.(a) |
17,580 | 566,603 | ||||||
Newmont Corp. |
188,187 | 10,218,554 | ||||||
NovaGold Resources Inc.(a) |
56,916 | 391,582 | ||||||
Pan American Silver Corp. |
49,524 | 1,152,423 | ||||||
Royal Gold Inc. |
15,450 | 1,475,321 | ||||||
SSR Mining Inc.(b) |
50,466 | 734,280 | ||||||
Teck Resources Ltd., Class B |
109,955 | 2,738,979 | ||||||
Turquoise Hill Resources Ltd.(a)(b) |
23,423 | 345,723 | ||||||
Wheaton Precious Metals Corp.(b) |
106,035 | 3,984,795 |
Security | Shares | Value | ||||||
Metals & Mining (continued) | ||||||||
Yamana Gold Inc.(b) |
227,587 | $ | 901,245 | |||||
|
|
|||||||
61,410,007 | ||||||||
Oil, Gas & Consumable Fuels — 66.5% | ||||||||
Antero Midstream Corp. |
76,457 | 796,682 | ||||||
Antero Resources Corp.(a) |
67,261 | 1,265,179 | ||||||
APA Corp. |
89,021 | 1,907,720 | ||||||
Cabot Oil & Gas Corp. |
94,118 | 2,048,008 | ||||||
Cameco Corp. |
93,667 | 2,035,384 | ||||||
Canadian Natural Resources Ltd. |
279,363 | 10,207,924 | ||||||
Cenovus Energy Inc.(b) |
299,301 | 3,010,968 | ||||||
Cheniere Energy Inc.(a) |
55,542 | 5,424,787 | ||||||
Chevron Corp. |
415,342 | 42,136,446 | ||||||
Cimarex Energy Co. |
24,212 | 2,111,286 | ||||||
CNX Resources Corp.(a) |
51,318 | 647,633 | ||||||
ConocoPhillips |
293,114 | 19,864,336 | ||||||
Continental Resources Inc./OK |
13,849 | 639,131 | ||||||
CVR Energy Inc. |
6,926 | 115,387 | ||||||
Denbury Inc.(a)(b) |
11,801 | 829,020 | ||||||
Devon Energy Corp. |
148,268 | 5,264,997 | ||||||
Diamondback Energy Inc. |
40,078 | 3,794,184 | ||||||
Enbridge Inc. |
461,773 | 18,378,565 | ||||||
EOG Resources Inc. |
137,494 | 11,036,643 | ||||||
EQT Corp.(a) |
71,194 | 1,456,629 | ||||||
Equitrans Midstream Corp. |
95,744 | 970,844 | ||||||
Exxon Mobil Corp. |
734,540 | 43,205,643 | ||||||
Hess Corp. |
64,903 | 5,069,573 | ||||||
HollyFrontier Corp. |
35,204 | 1,166,309 | ||||||
Kinder Morgan Inc. |
459,022 | 7,679,438 | ||||||
Marathon Oil Corp. |
185,662 | 2,538,000 | ||||||
Marathon Petroleum Corp. |
150,291 | 9,289,487 | ||||||
Matador Resources Co. |
25,896 | 985,084 | ||||||
Murphy Oil Corp. |
34,186 | 853,625 | ||||||
New Fortress Energy Inc. |
9,820 | 272,505 | ||||||
Occidental Petroleum Corp. |
208,892 | 6,179,025 | ||||||
ONEOK Inc. |
104,949 | 6,085,993 | ||||||
Ovintiv Inc. |
61,483 | 2,021,561 | ||||||
PDC Energy Inc.(b) |
23,234 | 1,101,059 | ||||||
Pembina Pipeline Corp. |
129,528 | 4,104,742 | ||||||
Phillips 66 |
103,143 | 7,223,104 | ||||||
Pioneer Natural Resources Co. |
53,429 | 8,896,463 | ||||||
Range Resources Corp.(a) |
61,175 | 1,384,390 | ||||||
Renewable Energy Group Inc.(a)(b) |
11,830 | 593,866 | ||||||
Southwestern Energy Co.(a) |
159,433 | 883,259 | ||||||
Suncor Energy Inc. |
351,103 | 7,281,876 | ||||||
Targa Resources Corp. |
53,846 | 2,649,762 | ||||||
TC Energy Corp. |
230,594 | 11,089,266 | ||||||
Texas Pacific Land Corp. |
1,460 | 1,765,666 | ||||||
Valero Energy Corp. |
96,275 | 6,794,127 | ||||||
Williams Companies Inc. (The) |
286,112 | 7,421,745 | ||||||
World Fuel Services Corp. |
14,954 | 502,754 | ||||||
|
|
|||||||
280,980,075 | ||||||||
Paper & Forest Products — 0.9% | ||||||||
Domtar Corp.(a) |
11,818 | 644,554 | ||||||
Louisiana-Pacific Corp. |
22,425 | 1,376,222 | ||||||
West Fraser Timber Co. Ltd. |
23,245 | 1,957,926 | ||||||
|
|
|||||||
3,978,702 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.8% |
421,824,512 | |||||||
|
|
24 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® North American Natural Resources ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Short-Term Investments |
||||||||
Money Market Funds — 2.3% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e) |
9,270,553 | $ | 9,275,188 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d) |
698,000 | 698,000 | ||||||
|
|
|||||||
9,973,188 | ||||||||
|
|
|||||||
Total
Short-Term Investments — 2.3% |
9,973,188 | |||||||
|
|
|||||||
Total
Investments in Securities — 102.1% |
431,797,700 | |||||||
Other Assets, Less Liabilities — (2.1)% |
(9,001,425 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 422,796,275 | ||||||
|
|
(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. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 09/30/21 |
Shares Held at 09/30/21 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 3,673,173 | $ | 5,603,598 | (a) | $ | — | $ | (1,481 | ) | $ | (102 | ) | $ | 9,275,188 | 9,270,553 | $ | 10,037 | (b) | $ | — | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
648,000 | 50,000 | (a) | — | — | — | 698,000 | 698,000 | 23 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (1,481 | ) | $ | (102 | ) | $ | 9,973,188 | $ | 10,060 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 |
||||||||||||||||
E-Mini Energy Select Sector Index |
12 | 12/17/21 | $ | 650 | $ | 45,863 | ||||||||||
Russell 2000 E-Mini Index |
2 | 12/17/21 | 220 | (4,521 | ) | |||||||||||
|
|
|||||||||||||||
$ | 41,342 | |||||||||||||||
|
|
S C H E D U L E O F I N V E S T M E N T S |
25 |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® North American Natural Resources ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
Equity Contracts |
||||
Assets — Derivative Financial Instruments |
||||
Futures contracts |
||||
Unrealized appreciation on futures contracts(a) |
$ | 45,863 | ||
|
|
|||
Liabilities — Derivative Financial Instruments |
||||
Futures contracts |
||||
Unrealized depreciation on futures contracts(a) |
$ | 4,521 | ||
|
|
(a) |
Net cumulative 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 September 30, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity Contracts |
||||
Net Realized Gain (Loss) from: |
||||
Futures contracts |
$ | 27,812 | ||
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Futures contracts |
$ | 81,507 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 844,937 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
Common Stocks |
$ | 421,824,512 | $ | — | $ | — | $ | 421,824,512 | ||||||||
Money Market Funds |
9,973,188 | — | — | 9,973,188 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 431,797,700 | $ | — | $ | — | $ | 431,797,700 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Futures Contracts |
$ | 45,863 | $ | — | $ | — | $ | 45,863 | ||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
(4,521 | ) | — | — | (4,521 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 41,342 | $ | — | $ | — | $ | 41,342 | |||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
26 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) September 30, 2021 |
iShares® North American Tech-Multimedia Networking ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Alternative Carriers — 2.6% | ||||||||
EchoStar Corp., Class A(a)(b) |
111,533 | $ | 2,845,207 | |||||
|
|
|||||||
Communications Equipment — 97.3% | ||||||||
Arista Networks Inc.(a) |
27,069 | 9,301,991 | ||||||
Calix Inc.(a) |
110,993 | 5,486,384 | ||||||
Cambium Networks Corp.(a) |
30,113 | 1,089,789 | ||||||
Ciena Corp.(a) |
92,491 | 4,749,413 | ||||||
Cisco Systems Inc. |
165,433 | 9,004,518 | ||||||
CommScope Holding Co. Inc.(a) |
347,718 | 4,725,488 | ||||||
Extreme Networks Inc.(a) |
342,625 | 3,374,856 | ||||||
F5 Networks Inc.(a) |
47,706 | 9,482,999 | ||||||
Harmonic Inc.(a)(b) |
275,346 | 2,409,278 | ||||||
Infinera Corp.(a) |
564,163 | 4,693,836 | ||||||
Inseego Corp.(a)(b) |
209,298 | 1,393,925 | ||||||
Juniper Networks Inc. |
344,505 | 9,480,778 | ||||||
Lumentum Holdings Inc.(a)(b) |
57,848 | 4,832,622 | ||||||
Motorola Solutions Inc. |
39,731 | 9,230,306 | ||||||
NETGEAR Inc.(a) |
82,610 | 2,636,085 | ||||||
NetScout Systems Inc.(a) |
190,651 | 5,138,044 | ||||||
Plantronics Inc.(a) |
114,465 | 2,942,895 | ||||||
Ribbon Communications Inc.(a)(b) |
324,478 | 1,940,378 | ||||||
Ubiquiti Inc. |
16,234 | 4,848,609 | ||||||
Viasat Inc.(a)(b) |
104,358 | 5,746,995 | ||||||
Viavi Solutions Inc.(a)(b) |
314,480 | 4,949,915 | ||||||
|
|
|||||||
107,459,104 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.9% |
110,304,311 | |||||||
|
|
Security | Shares | Value | ||||||
Short-Term Investments |
||||||||
Money Market Funds — 6.3% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e) |
6,884,622 | $ | 6,888,065 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d) |
110,000 | 110,000 | ||||||
|
|
|||||||
6,998,065 | ||||||||
|
|
|||||||
Total
Short -Term Investments — 6.3% |
6,998,065 | |||||||
|
|
|||||||
Total
Investments in Securities — 106.2% |
117,302,376 | |||||||
Other Assets, Less Liabilities — (6.2)% |
(6,881,727 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 110,420,649 | ||||||
|
|
(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. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/21 |
Shares Held at 09/30/21 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 12,333,755 | $ | — | $ | (5,445,466 | )(a) | $ | (131 | ) | $ | (93 | ) | $ | 6,888,065 | 6,884,622 | $ | 7,749 | (b) | $ | — | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
100,000 | 10,000 | (a) | — | — | — | 110,000 | 110,000 | 4 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (131 | ) | $ | (93 | ) | $ | 6,998,065 | $ | 7,753 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
S C H E D U L E O F I N V E S T M E N T S |
27 |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® North American Tech-Multimedia Networking ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
Long Contracts |
||||||||||||||||
Russell 2000 E-Mini Index |
1 | 12/17/21 | $ | 110 | $ | (2,260 | ) | |||||||||
|
|
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) |
$ | 2,260 | ||
|
|
(a) |
Net cumulative 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 September 30, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity Contracts |
||||
Net Realized Gain (Loss) from: |
||||
Futures contracts |
$ | (4,208 | ) | |
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Futures contracts |
$ | (2,260 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 36,680 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
Common Stocks |
$ | 110,304,311 | $ | — | $ | — | $ | 110,304,311 | ||||||||
Money Market Funds |
6,998,065 | — | — | 6,998,065 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 117,302,376 | $ | — | $ | — | $ | 117,302,376 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (2,260) | $ | — | $ | — | $ | (2,260) | ||||||||
|
|
|
|
|
|
|
|
(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 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) September 30, 2021 |
iShares® Semiconductor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Semiconductor Equipment — 19.6% | ||||||||
Applied Materials Inc. |
2,233,121 | $ | 287,469,666 | |||||
ASML Holding NV, NYS(a)(b) |
332,327 | 247,620,171 | ||||||
Entegris Inc. |
943,909 | 118,838,143 | ||||||
KLA Corp. |
887,642 | 296,925,126 | ||||||
Lam Research Corp. |
498,929 | 283,965,440 | ||||||
MKS Instruments Inc. |
386,856 | 58,380,439 | ||||||
Teradyne Inc. |
1,152,250 | 125,791,133 | ||||||
|
|
|||||||
1,418,990,118 | ||||||||
Semiconductors — 80.2% | ||||||||
Advanced Micro Devices Inc.(b)(c) |
2,725,451 | 280,448,908 | ||||||
Analog Devices Inc. |
1,851,871 | 310,151,355 | ||||||
ASE Technology Holding Co. Ltd., ADR |
4,942,138 | 38,795,783 | ||||||
Broadcom Inc. |
1,213,818 | 588,616,763 | ||||||
Intel Corp. |
11,163,968 | 594,816,215 | ||||||
Lattice Semiconductor Corp.(b)(c) |
942,308 | 60,920,212 | ||||||
Marvell Technology Inc. |
4,931,557 | 297,422,203 | ||||||
Microchip Technology Inc. |
1,881,896 | 288,852,217 | ||||||
Micron Technology Inc. |
4,094,462 | 290,624,913 | ||||||
Monolithic Power Systems Inc. |
302,348 | 146,542,029 | ||||||
NVIDIA Corp. |
2,696,107 | 558,525,526 | ||||||
NXP Semiconductors NV |
1,402,694 | 274,745,674 | ||||||
ON Semiconductor Corp.(c) |
2,977,006 | 136,257,565 | ||||||
Qorvo Inc.(c) |
774,635 | 129,511,226 | ||||||
QUALCOMM Inc. |
2,932,664 | 378,255,003 | ||||||
Skyworks Solutions Inc. |
1,153,954 | 190,148,540 | ||||||
STMicroelectronics NV., NVS(b) |
2,053,469 | 89,592,852 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR |
2,326,196 | 259,719,783 | ||||||
Texas Instruments Inc. |
2,253,381 | 433,122,362 | ||||||
United Microelectronics Corp., ADR |
5,600,289 | 64,011,303 | ||||||
Universal Display Corp. |
302,251 | 51,672,831 |
Security | Shares | Value | ||||||
Semiconductors (continued) | ||||||||
Wolfspeed Inc |
805,029 | $ | 64,989,991 | |||||
Xilinx Inc |
1,729,759 | 261,176,311 | ||||||
|
|
|||||||
5,788,919,565 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.8% |
|
7,207,909,683 | ||||||
|
|
|||||||
Short-Term Investments |
| |||||||
Money Market Funds — 0.9% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(d)(e)(f) |
50,565,475 | 50,590,757 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(d)(e) |
11,990,000 | 11,990,000 | ||||||
|
|
|||||||
62,580,757 | ||||||||
|
|
|||||||
Total
Short -Term Investments — 0.9% |
|
62,580,757 | ||||||
Total
Investments in Securities — 100.7% |
|
7,270,490,440 | ||||||
Other Assets, Less Liabilities — (0.7)% |
|
(47,967,586 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
$ | 7,222,522,854 | ||||||
|
|
(a) |
This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(b) |
All or a portion of this security is on loan. |
(c) |
Non-income producing security. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
(f) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended September 30, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 03/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 09/30/21 |
Shares Held at 09/30/21 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 33,454,684 | $ | 17,135,384 | (a) | $ | — | $ | 4,685 | $ | (3,996 | ) | $ | 50,590,757 | 50,565,475 | $ | 116,770 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
9,855,000 | 2,135,000 | (a) | — | — | — | 11,990,000 | 11,990,000 | 369 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 4,685 | $ | (3,996 | ) | $ | 62,580,757 | $ | 117,139 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
S C H E D U L E O F I N V E S T M E N T S |
29 |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® Semiconductor ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
Long Contracts |
||||||||||||||||
E-Mini Technoloy Select Sector Index |
62 | 12/17/21 | $ | 9,328 | $ | (388,817 | ) | |||||||||
Russell 2000 E-Mini Index |
37 | 12/17/21 | 4,071 | (40,041 | ) | |||||||||||
|
|
|||||||||||||||
$ | (428,858 | ) | ||||||||||||||
|
|
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) |
$ | 428,858 | ||
|
|
(a) |
Net cumulative 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 September 30, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:
Equity Contracts |
||||
Net Realized Gain (Loss) from: |
||||
Futures contracts |
$ | 1,336,426 | ||
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Futures contracts |
$ | (353,954 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 12,471,408 |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
30 | 2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (unaudited) (continued) September 30, 2021 |
iShares® Semiconductor ETF |
Fair Value Hierarchy as of Period End (continued)
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
Common Stocks |
$ | 7,207,909,683 | $ | — | $ | — | $ | 7,207,909,683 | ||||||||
Money Market Funds |
62,580,757 | — | — | 62,580,757 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 7,270,490,440 | $ | — | $ | — | $ | 7,270,490,440 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (428,858 | ) | $ | — | $ | — | $ | (428,858 | ) | ||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
31 |
Statements of Assets and Liabilities (unaudited)
September 30, 2021
iShares Biotechnology ETF |
iShares Expanded Tech Sector ETF |
iShares Expanded Tech-Software Sector ETF |
iShares North American Natural Resources ETF |
|||||||||||||
ASSETS |
||||||||||||||||
Investments in securities, at value (including securities on loan)(a): |
||||||||||||||||
Unaffiliated(b) |
$ | 10,507,162,265 | $ | 3,628,898,114 | $ | 5,525,566,002 | $ | 421,824,512 | ||||||||
Affiliated(c) |
884,009,382 | 69,083,083 | 227,683,136 | 9,973,188 | ||||||||||||
Cash |
74,443 | 3,156 | 714 | 67,092 | ||||||||||||
Cash pledged: |
||||||||||||||||
Futures contracts |
803,000 | 177,000 | — | 77,000 | ||||||||||||
Receivables: |
||||||||||||||||
Investments sold |
3,769,858 | — | — | — | ||||||||||||
Securities lending income — Affiliated |
155,549 | 14,357 | 70,695 | 1,301 | ||||||||||||
Capital shares sold |
— | 106,236 | 97,700 | — | ||||||||||||
Dividends |
41 | 450,702 | 16,167 | 377,551 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
11,395,974,538 | 3,698,732,648 | 5,753,434,414 | 432,320,644 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES |
||||||||||||||||
Investments sold short at value(d) |
9,183 | — | — | — | ||||||||||||
Collateral on securities loaned, at value |
866,032,099 | 64,935,721 | 225,649,462 | 9,245,139 | ||||||||||||
Payables: |
||||||||||||||||
Investments purchased |
10,870,168 | 106,236 | — | 127,086 | ||||||||||||
Variation margin on futures contracts |
164,128 | 11,708 | 34 | 12,994 | ||||||||||||
Capital shares redeemed |
172,227 | — | 64,646 | — | ||||||||||||
Investment advisory fees |
4,057,978 | 1,252,054 | 1,855,818 | 139,150 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
881,305,783 | 66,305,719 | 227,569,960 | 9,524,369 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 10,514,668,755 | $ | 3,632,426,929 | $ | 5,525,864,454 | $ | 422,796,275 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS CONSIST OF: |
||||||||||||||||
Paid-in capital |
$ | 12,247,418,607 | $ | 1,936,097,822 | $ | 5,021,351,230 | $ | 1,002,429,320 | ||||||||
Accumulated earnings (loss) |
(1,732,749,852 | ) | 1,696,329,107 | 504,513,224 | (579,633,045 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 10,514,668,755 | $ | 3,632,426,929 | $ | 5,525,864,454 | $ | 422,796,275 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares outstanding |
65,050,000 | 9,000,000 | 13,850,000 | 14,400,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net asset value |
$ | 161.64 | $ | 403.60 | $ | 398.98 | $ | 29.36 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares authorized |
Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Par value |
None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(a) Securities loaned, at value |
$ | 848,055,785 | $ | 63,560,175 | $ | 221,171,935 | $ | 9,028,726 | ||||||||
(b) Investments, at cost — Unaffiliated |
$ | 11,460,073,418 | $ | 2,071,246,316 | $ | 5,634,619,521 | $ | 508,138,533 | ||||||||
(c) Investments, at cost — Affiliated |
$ | 883,503,205 | $ | 69,049,168 | $ | 227,573,794 | $ | 9,971,883 | ||||||||
(d) Proceeds received from investments sold short |
$ | 10,702 | $ | — | $ | — | $ | — |
See notes to financial statements.
32 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Assets and Liabilities (unaudited) (continued)
September 30, 2021
iShares North American Tech-Multimedia Networking ETF |
iShares Semiconductor ETF |
|||||||
ASSETS |
||||||||
Investments in securities, at value (including securities on loan)(a): |
||||||||
Unaffiliated(b) |
$ | 110,304,311 | $ | 7,207,909,683 | ||||
Affiliated(c) |
6,998,065 | 62,580,757 | ||||||
Cash |
2,027 | 7,880 | ||||||
Cash pledged: |
||||||||
Futures contracts |
7,000 | 807,000 | ||||||
Receivables: |
||||||||
Securities lending income — Affiliated |
1,169 | 33,659 | ||||||
Capital shares sold |
— | 312,218 | ||||||
Dividends |
33,588 | 4,143,240 | ||||||
|
|
|
|
|||||
Total assets |
117,346,160 | 7,275,794,437 | ||||||
|
|
|
|
|||||
LIABILITIES |
||||||||
Collateral on securities loaned, at value |
6,887,174 | 50,506,538 | ||||||
Payables: |
||||||||
Variation margin on futures contracts |
1,059 | 94,228 | ||||||
Capital shares redeemed |
— | 222,181 | ||||||
Investment advisory fees |
37,278 | 2,448,636 | ||||||
|
|
|
|
|||||
Total liabilities |
6,925,511 | 53,271,583 | ||||||
|
|
|
|
|||||
NET ASSETS |
$ | 110,420,649 | $ | 7,222,522,854 | ||||
|
|
|
|
|||||
NET ASSETS CONSIST OF: |
||||||||
Paid-in capital |
$ | 175,434,066 | $ | 6,205,555,107 | ||||
Accumulated earnings (loss) |
(65,013,417 | ) | 1,016,967,747 | |||||
|
|
|
|
|||||
NET ASSETS |
$ | 110,420,649 | $ | 7,222,522,854 | ||||
|
|
|
|
|||||
Shares outstanding |
1,600,000 | 16,200,000 | ||||||
|
|
|
|
|||||
Net asset value |
$ | 69.01 | $ | 445.83 | ||||
|
|
|
|
|||||
Shares authorized |
Unlimited | Unlimited | ||||||
|
|
|
|
|||||
Par value |
None | None | ||||||
|
|
|
|
|||||
(a) Securities loaned, at value |
$ | 6,679,524 | $ | 49,085,871 | ||||
(b) Investments, at cost — Unaffiliated |
$ | 106,497,082 | $ | 7,020,734,914 | ||||
(c) Investments, at cost — Affiliated |
$ | 6,996,752 | $ | 62,556,187 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
33 |
Statements of Operations (unaudited)
Six Months Ended September 30, 2021
iShares Biotechnology ETF |
iShares Expanded Tech Sector ETF |
iShares Expanded Tech-Software Sector ETF |
iShares North American Natural Resources ETF |
|||||||||||||
INVESTMENT INCOME |
||||||||||||||||
Dividends — Unaffiliated |
$ | 32,517,416 | $ | 9,784,074 | $ | 7,816,837 | $ | 7,873,299 | ||||||||
Dividends — Affiliated |
594 | 158 | 222 | 23 | ||||||||||||
Securities lending income — Affiliated — net |
1,351,160 | 71,571 | 355,552 | 10,037 | ||||||||||||
Foreign taxes withheld |
(610,163 | ) | (15,953 | ) | (38,040 | ) | (277,375 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total investment income |
33,259,007 | 9,839,850 | 8,134,571 | 7,605,984 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
EXPENSES |
||||||||||||||||
Investment advisory fees |
23,639,839 | 7,197,984 | 10,638,928 | 901,960 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
23,639,839 | 7,197,984 | 10,638,928 | 901,960 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income (loss) |
9,619,168 | 2,641,866 | (2,504,357 | ) | 6,704,024 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments — Unaffiliated |
(438,106,385 | ) | 4,725,029 | (7,786,967 | ) | (14,729,372 | ) | |||||||||
Investments — Affiliated |
76,897 | 7,001 | 12,009 | (1,481 | ) | |||||||||||
In-kind redemptions — Unaffiliated |
1,161,825,102 | 159,287,359 | 736,732,034 | 9,095,847 | ||||||||||||
Futures contracts |
35,215 | 386,240 | 871,253 | 27,812 | ||||||||||||
Foreign currency transactions |
— | — | — | (797 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized gain (loss) |
723,830,829 | 164,405,629 | 729,828,329 | (5,607,991 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments — Unaffiliated |
20,775,725 | 211,833,386 | 19,105,284 | 28,482,785 | ||||||||||||
Investments — Affiliated |
(174,392 | ) | (2,423 | ) | (37,781 | ) | (102 | ) | ||||||||
Futures contracts |
(153,756 | ) | (139,166 | ) | 13,920 | 81,507 | ||||||||||
Foreign currency translations |
— | — | — | 1,336 | ||||||||||||
Short sales — Unaffiliated |
1,621 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) |
20,449,198 | 211,691,797 | 19,081,423 | 28,565,526 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized and unrealized gain |
744,280,027 | 376,097,426 | 748,909,752 | 22,957,535 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 753,899,195 | $ | 378,739,292 | $ | 746,405,395 | $ | 29,661,559 | ||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
34 | 2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Operations (unaudited) (continued)
Six Months Ended September 30, 2021
iShares North American Tech-Multimedia Networking ETF |
iShares Semiconductor ETF |
|||||||
INVESTMENT INCOME |
||||||||
Dividends — Unaffiliated |
$ | 366,122 | $ | 42,567,691 | ||||
Dividends — Affiliated |
4 | 369 | ||||||
Securities lending income — Affiliated — net |
7,749 | 116,770 | ||||||
Foreign taxes withheld |
— | (1,441,501 | ) | |||||
|
|
|
|
|||||
Total investment income |
373,875 | 41,243,329 | ||||||
|
|
|
|
|||||
EXPENSES |
||||||||
Investment advisory fees |
213,920 | 14,010,246 | ||||||
Commitment fees |
— | 11,004 | ||||||
|
|
|
|
|||||
Total expenses |
213,920 | 14,021,250 | ||||||
|
|
|
|
|||||
Net investment income |
159,955 | 27,222,079 | ||||||
|
|
|
|
|||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||
Net realized gain (loss) from: |
||||||||
Investments — Unaffiliated |
456,032 | (33,365,830 | ) | |||||
Investments — Affiliated |
(131 | ) | 4,685 | |||||
In-kind redemptions — Unaffiliated |
1,706,697 | 948,046,322 | ||||||
Futures contracts |
(4,208 | ) | 1,336,426 | |||||
|
|
|
|
|||||
Net realized gain |
2,158,390 | 916,021,603 | ||||||
|
|
|
|
|||||
Net change in unrealized appreciation (depreciation) on: |
||||||||
Investments — Unaffiliated |
46,255 | (640,599,279 | ) | |||||
Investments — Affiliated |
(93 | ) | (3,996 | ) | ||||
Futures contracts |
(2,260 | ) | (353,954 | ) | ||||
|
|
|
|
|||||
Net change in unrealized appreciation (depreciation) |
43,902 | (640,957,229 | ) | |||||
|
|
|
|
|||||
Net realized and unrealized gain |
2,202,292 | 275,064,374 | ||||||
|
|
|
|
|||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 2,362,247 | $ | 302,286,453 | ||||
|
|
|
|
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
35 |
Statements of Changes in Net Assets
iShares Biotechnology ETF |
iShares Expanded Tech Sector ETF |
|||||||||||||||||||
Six Months Ended 09/30/21 (unaudited) |
Year Ended 03/31/21 |
Six Months Ended 09/30/21 (unaudited) |
Year Ended 03/31/21 |
|||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 9,619,168 | $ | 22,963,639 | $ | 2,641,866 | $ | 7,522,231 | ||||||||||||
Net realized gain |
723,830,829 | 1,573,276,301 | 164,405,629 | 155,422,525 | ||||||||||||||||
Net change in unrealized appreciation (depreciation) |
20,449,198 | 1,144,045,717 | 211,691,797 | 1,121,446,883 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase in net assets resulting from operations |
753,899,195 | 2,740,285,657 | 378,739,292 | 1,284,391,639 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(9,709,360 | ) | (26,026,125 | ) | (2,856,194 | ) | (8,184,628 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
(78,103,450 | ) | 790,357,567 | 46,931,190 | 225,617,802 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase in net assets |
666,086,385 | 3,504,617,099 | 422,814,288 | 1,501,824,813 | ||||||||||||||||
Beginning of period |
9,848,582,370 | 6,343,965,271 | 3,209,612,641 | 1,707,787,828 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 10,514,668,755 | $ | 9,848,582,370 | $ | 3,632,426,929 | $ | 3,209,612,641 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
36 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares Expanded Tech-Software Sector ETF |
iShares North American Natural Resources ETF |
|||||||||||||||||||
Six Months Ended 09/30/21 (unaudited) |
Year Ended 03/31/21 |
Six Months Ended 09/30/21 (unaudited) |
Year Ended 03/31/21 |
|||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income (loss) |
$ | (2,504,357 | ) | $ | (4,994,506 | ) | $ | 6,704,024 | $ | 11,307,892 | ||||||||||
Net realized gain (loss) |
729,828,329 | 1,924,332,673 | (5,607,991 | ) | (57,251,765 | ) | ||||||||||||||
Net change in unrealized appreciation (depreciation) |
19,081,423 | 248,277,573 | 28,565,526 | 227,665,109 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase in net assets resulting from operations |
746,405,395 | 2,167,615,740 | 29,661,559 | 181,721,236 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
— | (1,076,738 | ) | (6,538,045 | ) | (12,822,042 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
(270,593,401 | ) | (147,637,588 | ) | 2,650,850 | (66,573,691 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase in net assets |
475,811,994 | 2,018,901,414 | 25,774,364 | 102,325,503 | ||||||||||||||||
Beginning of period |
5,050,052,460 | 3,031,151,046 | 397,021,911 | 294,696,408 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 5,525,864,454 | $ | 5,050,052,460 | $ | 422,796,275 | $ | 397,021,911 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
37 |
Statements of Changes in Net Assets (continued)
iShares North American Tech-Multimedia Networking ETF |
iShares Semiconductor ETF |
|||||||||||||||||||
Six Months Ended 09/30/21 (unaudited) |
Year Ended 03/31/21 |
Six Months Ended 09/30/21 (unaudited) |
Year Ended 03/31/21 |
|||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 159,955 | $ | 295,055 | $ | 27,222,079 | $ | 40,983,638 | ||||||||||||
Net realized gain (loss) |
2,158,390 | (288,243 | ) | 916,021,603 | 1,417,069,739 | |||||||||||||||
Net change in unrealized appreciation (depreciation) |
43,902 | 23,978,068 | (640,957,229 | ) | 1,183,337,044 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase in net assets resulting from operations |
2,362,247 | 23,984,880 | 302,286,453 | 2,641,390,421 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(169,483 | ) | (307,049 | ) | (26,118,897 | ) | (40,572,378 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase in net assets derived from capital share transactions |
7,473,145 | 33,741,764 | 627,387,166 | 1,576,185,144 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase in net assets |
9,665,909 | 57,419,595 | 903,554,722 | 4,177,003,187 | ||||||||||||||||
Beginning of period |
100,754,740 | 43,335,145 | 6,318,968,132 | 2,141,964,945 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 110,420,649 | $ | 100,754,740 | $ | 7,222,522,854 | $ | 6,318,968,132 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
38 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
(For a share outstanding throughout each period)
iShares Biotechnology ETF | ||||||||||||||||||||||||
|
Six Months Ended 09/30/21 (unaudited) |
|
|
Year Ended 03/31/21 |
|
|
Year Ended 03/31/20 |
|
|
Year Ended 03/31/19 |
|
|
Year Ended 03/31/18 |
(a) |
|
Year Ended 03/31/17 |
(a) | |||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 150.36 | $ | 107.98 | $ | 111.78 | $ | 106.73 | $ | 97.75 | $ | 86.90 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(b) |
0.15 | 0.34 | 0.26 | 0.16 | 0.15 | 0.21 | ||||||||||||||||||
Net realized and unrealized gain (loss)(c) |
11.28 | 42.43 | (3.80 | ) | 5.08 | 9.05 | 10.85 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
11.43 | 42.77 | (3.54 | ) | 5.24 | 9.20 | 11.06 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions(d) | ||||||||||||||||||||||||
From net investment income |
(0.15 | ) | (0.39 | ) | (0.26 | ) | (0.19 | ) | (0.22 | ) | (0.21 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total distributions |
(0.15 | ) | (0.39 | ) | (0.26 | ) | (0.19 | ) | (0.22 | ) | (0.21 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 161.64 | $ | 150.36 | $ | 107.98 | $ | 111.78 | $ | 106.73 | $ | 97.75 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(e) |
||||||||||||||||||||||||
Based on net asset value |
7.60 | %(f) | 39.63 | % | (3.17 | )% | 4.92 | % | 9.41 | % | 12.75 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||||||
Total expenses |
0.44 | %(g) | 0.45 | % | 0.46 | % | 0.47 | % | 0.47 | % | 0.47 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
0.18 | %(g) | 0.24 | % | 0.24 | % | 0.15 | % | 0.14 | % | 0.22 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 10,514,669 | $ | 9,848,582 | $ | 6,343,965 | $ | 8,026,142 | $ | 9,040,121 | $ | 8,343,317 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(h) |
31 | %(f) | 34 | % | 29 | % | 18 | % | 26 | % | 18 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Per share amounts reflect a three-for-one stock split effective after the close of trading on November 30, 2017. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
39 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Expanded Tech Sector ETF | ||||||||||||||||||||||||
|
Six Months Ended 09/30/21 (unaudited) |
|
|
Year Ended 03/31/21 |
|
|
Year Ended 03/31/20 |
|
|
Year Ended 03/31/19 |
|
|
Year Ended 03/31/18 |
|
|
Year Ended 03/31/17 |
| |||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 360.63 | $ | 212.15 | $ | 206.22 | $ | 179.48 | $ | 138.39 | $ | 110.64 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(a) |
0.30 | 0.86 | 1.26 | 1.09 | 0.88 | 1.00 | ||||||||||||||||||
Net realized and unrealized gain(b) |
42.99 | 148.55 | 6.00 | 26.69 | 41.18 | 27.77 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase from investment operations |
43.29 | 149.41 | 7.26 | 27.78 | 42.06 | 28.77 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions(c) |
||||||||||||||||||||||||
From net investment income |
(0.32 | ) | (0.93 | ) | (1.33 | ) | (1.04 | ) | (0.97 | ) | (1.02 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total distributions |
(0.32 | ) | (0.93 | ) | (1.33 | ) | (1.04 | ) | (0.97 | ) | (1.02 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 403.60 | $ | 360.63 | $ | 212.15 | $ | 206.22 | $ | 179.48 | $ | 138.39 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(d) |
||||||||||||||||||||||||
Based on net asset value |
12.00 | %(e) | 70.51 | % | 3.51 | % | 15.52 | % | 30.48 | % | 26.13 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||||||
Total expenses |
0.41 | %(f) | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | 0.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
0.15 | %(f) | 0.28 | % | 0.56 | % | 0.56 | % | 0.55 | % | 0.82 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 3,632,427 | $ | 3,209,613 | $ | 1,707,788 | $ | 1,587,932 | $ | 1,462,726 | $ | 1,120,933 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(g) |
3 | %(e) | 9 | % | 10 | % | 8 | % | 6 | % | 7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Not annualized. |
(f) |
Annualized. |
(g) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
40 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Expanded Tech-Software Sector ETF | ||||||||||||||||||||||||
|
Six Months Ended 09/30/21 (unaudited) |
|
|
Year Ended 03/31/21 |
|
|
Year Ended 03/31/20 |
|
|
Year Ended 03/31/19 |
|
|
Year Ended 03/31/18 |
|
|
Year Ended 03/31/17 |
| |||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 341.22 | $ | 209.77 | $ | 210.77 | $ | 169.69 | $ | 126.45 | $ | 100.66 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income (loss)(a) |
(0.18 | ) | (0.31 | ) | 1.28 | (b) | 0.24 | 0.12 | 0.22 | |||||||||||||||
Net realized and unrealized gain (loss)(c) |
57.94 | 131.83 | (1.06 | ) | 41.10 | 43.23 | 25.75 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase from investment operations |
57.76 | 131.52 | 0.22 | 41.34 | 43.35 | 25.97 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions(d) |
||||||||||||||||||||||||
From net investment income |
— | (0.07 | ) | (1.22 | ) | (0.26 | ) | (0.11 | ) | (0.18 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total distributions |
— | (0.07 | ) | (1.22 | ) | (0.26 | ) | (0.11 | ) | (0.18 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 398.98 | $ | 341.22 | $ | 209.77 | $ | 210.77 | $ | 169.69 | $ | 126.45 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(e) |
||||||||||||||||||||||||
Based on net asset value |
16.93 | %(f) | 62.70 | % | 0.13 | % | 24.39 | % | 34.30 | % | 25.82 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||||||
Total expenses |
0.41 | %(g) | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | 0.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income (loss) |
(0.10 | )%(g) | (0.10 | )% | 0.57 | %(b) | 0.13 | % | 0.08 | % | 0.19 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 5,525,864 | $ | 5,050,052 | $ | 3,031,151 | $ | 2,729,463 | $ | 1,357,537 | $ | 815,631 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(h) |
7 | %(f) | 22 | % | 18 | % | 18 | % | 12 | % | 12 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Includes a one-time special distribution from NortonLifeLock Inc. Excluding such special distribution, the net investment income would have been $(0.07) per share and (0.03)% of average net assets. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
41 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares North American Natural Resources ETF | ||||||||||||||||||||||||
|
Six Months Ended 09/30/21 (unaudited) |
|
|
Year Ended 03/31/21 |
|
|
Year Ended 03/31/20 |
|
|
Year Ended 03/31/19 |
|
|
Year Ended 03/31/18 |
|
|
Year Ended 03/31/17 |
| |||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 27.57 | $ | 16.65 | $ | 31.40 | $ | 33.08 | $ | 34.26 | $ | 29.72 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(a) |
0.44 | 0.70 | 0.78 | 0.65 | 0.75 | 0.57 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) |
1.79 | 11.04 | (13.82 | ) | (1.59 | ) | (1.16 | ) | 4.55 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
2.23 | 11.74 | (13.04 | ) | (0.94 | ) | (0.41 | ) | 5.12 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions(c) |
||||||||||||||||||||||||
From net investment income |
(0.44 | ) | (0.82 | ) | (1.71 | ) | (0.74 | ) | (0.77 | ) | (0.58 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total distributions |
(0.44 | ) | (0.82 | ) | (1.71 | ) | (0.74 | ) | (0.77 | ) | (0.58 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 29.36 | $ | 27.57 | $ | 16.65 | $ | 31.40 | $ | 33.08 | $ | 34.26 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(d) |
||||||||||||||||||||||||
Based on net asset value |
8.07 | %(e) | 71.57 | % | (43.54 | )% | (2.87 | )% | (1.19 | )% | 17.26 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||||||
Total expenses |
0.41 | %(f) | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | 0.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
3.02 | %(f) | 3.14 | % | 2.72 | % | 1.94 | % | 2.25 | % | 1.67 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 422,796 | $ | 397,022 | $ | 294,696 | $ | 761,370 | $ | 929,571 | $ | 1,034,595 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(g) |
8 | %(e) | 14 | % | 16 | % | 12 | % | 7 | % | 12 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Not annualized. |
(f) |
Annualized. |
(g) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
42 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares North American Tech-Multimedia Networking ETF | ||||||||||||||||||||||||
|
Six Months Ended 09/30/21 (unaudited) |
|
|
Year Ended 03/31/21 |
|
|
Year Ended 03/31/20 |
|
|
Year Ended 03/31/19 |
|
|
Year Ended 03/31/18 |
|
|
Year Ended 03/31/17 |
| |||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 67.17 | $ | 43.34 | $ | 56.49 | $ | 51.48 | $ | 45.54 | $ | 36.57 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(a) |
0.11 | 0.29 | 0.26 | 0.23 | 0.30 | 0.26 | ||||||||||||||||||
Net realized and unrealized gain (loss)(b) |
1.84 | 23.83 | (13.10 | ) | 5.04 | 5.95 | 8.97 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) from investment operations |
1.95 | 24.12 | (12.84 | ) | 5.27 | 6.25 | 9.23 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions(c) |
||||||||||||||||||||||||
From net investment income |
(0.11 | ) | (0.29 | ) | (0.31 | ) | (0.26 | ) | (0.31 | ) | (0.26 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total distributions |
(0.11 | ) | (0.29 | ) | (0.31 | ) | (0.26 | ) | (0.31 | ) | (0.26 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 69.01 | $ | 67.17 | $ | 43.34 | $ | 56.49 | $ | 51.48 | $ | 45.54 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(d) |
||||||||||||||||||||||||
Based on net asset value |
2.90 | %(e) | 55.89 | % | (22.80 | )% | 10.27 | % | 13.77 | % | 25.31 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||||||
Total expenses |
0.41 | %(f) | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | 0.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
0.30 | %(f) | 0.52 | % | 0.47 | % | 0.44 | % | 0.63 | % | 0.64 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 110,421 | $ | 100,755 | $ | 43,335 | $ | 132,758 | $ | 64,349 | $ | 77,417 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(g) |
14 | %(e) | 38 | % | 33 | % | 29 | % | 23 | % | 27 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Not annualized. |
(f) |
Annualized. |
(g) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
43 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Semiconductor ETF | ||||||||||||||||||||||||
|
Six Months Ended 09/30/21 (unaudited) |
|
|
Year Ended 03/31/21 |
|
|
Year Ended 03/31/20 |
|
|
Year Ended 03/31/19 |
|
|
Year Ended 03/31/18 |
|
|
Year Ended 03/31/17 |
| |||||||
|
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 424.09 | $ | 204.97 | $ | 189.61 | $ | 180.13 | $ | 136.85 | $ | 91.63 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income(a) |
1.75 | 3.35 | 3.13 | 2.66 | 1.51 | 1.36 | ||||||||||||||||||
Net realized and unrealized gain(b) |
21.66 | 218.90 | 15.50 | 9.12 | 43.32 | 45.26 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net increase from investment operations |
23.41 | 222.25 | 18.63 | 11.78 | 44.83 | 46.62 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions(c) |
||||||||||||||||||||||||
From net investment income |
(1.67 | ) | (3.13 | ) | (3.27 | ) | (2.30 | ) | (1.55 | ) | (1.40 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total distributions |
(1.67 | ) | (3.13 | ) | (3.27 | ) | (2.30 | ) | (1.55 | ) | (1.40 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 445.83 | $ | 424.09 | $ | 204.97 | $ | 189.61 | $ | 180.13 | $ | 136.85 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Return(d) |
||||||||||||||||||||||||
Based on net asset value |
5.51 | %(e) | 108.93 | % | 9.80 | % | 6.61 | % | 32.91 | % | 51.20 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios to Average Net Assets |
||||||||||||||||||||||||
Total expenses |
0.41 | %(f) | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | 0.48 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net investment income |
0.79 | %(f) | 1.02 | % | 1.42 | % | 1.50 | % | 0.93 | % | 1.22 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 7,222,523 | $ | 6,318,968 | $ | 2,141,965 | $ | 1,061,836 | $ | 1,630,190 | $ | 889,518 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Portfolio turnover rate(g) |
22 | %(e) | 23 | % | 14 | % | 26 | % | 20 | % | 38 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Not annualized. |
(f) |
Annualized. |
(g) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
44 | 2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited)
1. |
ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF |
Diversification Classification | |
Biotechnology(a) |
Non-diversified | |
Expanded Tech Sector |
Non-diversified | |
Expanded Tech-Software Sector |
Non-diversified | |
North American Natural Resources |
Diversified | |
North American Tech-Multimedia Networking |
Non-diversified | |
Semiconductor(b) |
Non-diversified |
(a) |
Formerly the iShares Nasdaq Biotechnology ETF. |
(b) |
Formerly the iShares PHLX Semiconductor ETF. |
2. |
SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest.
Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: Certain Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of September 30, 2021, if any, are disclosed in the Statements of Assets and Liabilities.
The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and record cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
45 |
Notes to Financial Statements (unaudited) (continued)
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. |
INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• |
Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• |
Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
• |
Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded. |
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• |
Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access; |
• |
Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and |
• |
Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. |
SECURITIES AND OTHER INVESTMENTS |
Short Positions: From time to time, in order to track the performance of its benchmark index, a fund may sell non-index securities that will be received through corporate actions occurring on the opening of market trading on the following business day. A fund may also experience temporary short positions due to the timing of portfolio securities trades and in-kind redemption transactions. Such short positions are valued consistent with how securities are valued as described under Investment Valuation and Fair Value Measurements. The obligation to deliver the securities is recorded as a liability in the Statements of Assets and Liabilities and is equal to the current fair value
46 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
of the securities to be delivered. Any market fluctuations between the value of the obligation to sell these securities and the current fair value are reflected as unrealized appreciation (depreciation) in the Statements of Operations. Upon receipt of the securities related to the corporate actions or purchase of the securities related to the short position, a realized gain (loss) is recorded. Dividends or interest on securities sold short, if any, are reflected as an expense in the Statements of Operations. Details of the short positions, if any, are included in the schedules of Investments.
Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
|
||||||||||||||||
iShares ETF and Counterparty | |
Market Value of Securities on Loan |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received |
|
Net Amount | ||||||
|
||||||||||||||||
Biotechnology |
||||||||||||||||
Barclays Bank PLC |
$ | 35,242,132 | $ | 35,242,132 | $ | — | $ | — | ||||||||
Barclays Capital, Inc. |
9,840,590 | 9,840,590 | — | — | ||||||||||||
BNP Paribas SA |
66,664,584 | 66,664,584 | — | — | ||||||||||||
BofA Securities, Inc. |
66,308,728 | 66,308,728 | — | — | ||||||||||||
Citadel Clearing LLC |
2,487,728 | 2,487,728 | — | — | ||||||||||||
Citigroup Global Markets, Inc. |
75,997,813 | 75,997,813 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC |
18,657,865 | 18,657,865 | — | — | ||||||||||||
Deutsche Bank Securities, Inc. |
2,311,947 | 2,311,947 | — | — | ||||||||||||
Goldman Sachs & Co. LLC |
85,597,299 | 85,597,299 | — | — | ||||||||||||
HSBC Bank PLC |
10,410,026 | 10,410,026 | — | — | ||||||||||||
ING Financial Markets LLC |
31,691 | 31,691 | — | — | ||||||||||||
J.P. Morgan Securities LLC |
118,585,947 | 118,585,947 | — | — | ||||||||||||
Jefferies LLC |
3,336,180 | 3,336,180 | — | — | ||||||||||||
Morgan Stanley |
157,317,207 | 157,317,207 | — | — | ||||||||||||
National Financial Services LLC |
50,683,496 | 50,683,496 | — | — | ||||||||||||
Nomura Securities International, Inc. |
892,629 | 892,629 | — | — | ||||||||||||
RBC Capital Markets LLC |
149,176 | 149,176 | — | — | ||||||||||||
Scotia Capital (USA), Inc. |
6,886,347 | 6,886,347 | — | — | ||||||||||||
SG Americas Securities LLC |
4,174,791 | 4,174,791 | — | — | ||||||||||||
State Street Bank & Trust Co. |
24,844,812 | 24,747,389 | — | (97,423 | )(b) | |||||||||||
Toronto Dominion Bank |
10,863,167 | 10,863,167 | — | — | ||||||||||||
UBS AG |
27,779,563 | 27,779,563 | — | — | ||||||||||||
UBS Securities LLC |
47,481,805 | 47,481,805 | — | — | ||||||||||||
Virtu Americas LLC |
2,619,701 | 2,619,701 | — | — | ||||||||||||
Wells Fargo Bank N.A |
2,791,218 | 2,791,218 | — | — | ||||||||||||
Wells Fargo Securities LLC |
16,099,343 | 16,099,343 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 848,055,785 | $ | 847,958,362 | $ | — | $ | (97,423 | ) | ||||||||
|
|
|
|
|
|
|
|
N O T E S T O F I N A N C I A L S T A T E M E N T S |
47 |
Notes to Financial Statements (unaudited) (continued)
|
||||||||||||||||
iShares ETF and Counterparty | |
Market Value of Securities on Loan |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received |
|
Net Amount | ||||||
|
||||||||||||||||
Expanded Tech Sector |
||||||||||||||||
Barclays Bank PLC |
$ | 777,765 | $ | 777,765 | $ | — | $ | — | ||||||||
Barclays Capital, Inc. |
909,975 | 909,975 | — | — | ||||||||||||
BMO Capital Markets Corp. |
78,735 | 78,735 | — | — | ||||||||||||
BNP Paribas SA |
12,239,556 | 12,239,556 | — | — | ||||||||||||
BofA Securities, Inc. |
1,846,332 | 1,846,332 | — | — | ||||||||||||
Citigroup Global Markets, Inc. |
21,900,726 | 21,900,726 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC |
755,876 | 755,876 | — | — | ||||||||||||
Deutsche Bank Securities, Inc. |
16,133 | 16,133 | — | — | ||||||||||||
Goldman Sachs & Co. LLC |
5,095,510 | 5,095,510 | — | — | ||||||||||||
J.P. Morgan Securities LLC |
7,748,758 | 7,748,758 | — | — | ||||||||||||
Jefferies LLC |
659,030 | 659,030 | — | — | ||||||||||||
Morgan Stanley |
4,866,777 | 4,866,777 | — | — | ||||||||||||
National Financial Services LLC |
187,967 | 187,967 | — | — | ||||||||||||
Nomura Securities International, Inc. |
12,426 | 12,426 | — | — | ||||||||||||
Scotia Capital (USA), Inc. |
774,956 | 774,956 | — | — | ||||||||||||
State Street Bank & Trust Co. |
1,046,662 | 1,046,662 | — | — | ||||||||||||
Toronto Dominion Bank |
7,146 | 7,146 | — | — | ||||||||||||
UBS AG |
1,264,116 | 1,264,116 | — | — | ||||||||||||
UBS Securities LLC |
698,623 | 698,623 | — | — | ||||||||||||
Wells Fargo Bank N.A |
2,673,106 | 2,673,106 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 63,560,175 | $ | 63,560,175 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Expanded Tech-Software Sector |
||||||||||||||||
Barclays Bank PLC |
$ | 27,632,837 | $ | 27,632,837 | $ | — | $ | — | ||||||||
Barclays Capital, Inc. |
1,939,217 | 1,928,181 | — | (11,036 | )(b) | |||||||||||
BNP Paribas SA |
46,798,104 | 46,798,104 | — | — | ||||||||||||
BofA Securities, Inc. |
11,466,134 | 11,466,134 | — | — | ||||||||||||
Citigroup Global Markets, Inc. |
3,625,203 | 3,625,203 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC |
592,064 | 592,064 | — | — | ||||||||||||
Goldman Sachs & Co. LLC |
27,846,696 | 27,846,696 | — | — | ||||||||||||
J.P. Morgan Securities LLC |
72,009,899 | 72,009,899 | — | — | ||||||||||||
Jefferies LLC |
2,171,796 | 2,171,796 | — | — | ||||||||||||
Morgan Stanley |
6,181,280 | 6,181,280 | — | — | ||||||||||||
National Financial Services LLC |
293,645 | 291,480 | — | (2,165 | )(b) | |||||||||||
SG Americas Securities LLC |
2,454,915 | 2,454,915 | — | — | ||||||||||||
State Street Bank & Trust Co. |
2,119,892 | 2,119,892 | — | — | ||||||||||||
UBS AG |
3,602,028 | 3,602,028 | — | — | ||||||||||||
UBS Securities LLC |
186,138 | 186,138 | — | — | ||||||||||||
Wells Fargo Bank N.A |
11,821,762 | 11,821,762 | — | — | ||||||||||||
Wells Fargo Securities LLC |
430,325 | 430,325 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 221,171,935 | $ | 221,158,734 | $ | — | $ | (13,201 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
North American Natural Resources |
||||||||||||||||
Barclays Bank PLC |
$ | 48,590 | $ | 48,590 | $ | — | $ | — | ||||||||
BNP Paribas SA |
381,700 | 381,700 | — | — | ||||||||||||
Citigroup Global Markets, Inc. |
142,655 | 142,655 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC |
712,248 | 712,248 | — | — | ||||||||||||
Deutsche Bank Securities, Inc. |
87,324 | 87,324 | — | — | ||||||||||||
Goldman Sachs & Co. LLC |
395,080 | 395,080 | — | — | ||||||||||||
HSBC Bank PLC |
291 | 291 | — | — | ||||||||||||
J.P. Morgan Securities LLC |
1,079,070 | 1,079,070 | — | — | ||||||||||||
Jefferies LLC |
89,270 | 89,270 | — | — | ||||||||||||
Morgan Stanley |
2,411,140 | 2,411,140 | — | — | ||||||||||||
SG Americas Securities LLC |
376 | 376 | — | — | ||||||||||||
State Street Bank & Trust Co. |
614 | 614 | — | — | ||||||||||||
UBS AG |
29,040 | 29,040 | — | — | ||||||||||||
UBS Securities LLC |
3,651,328 | 3,651,328 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 9,028,726 | $ | 9,028,726 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
48 |
2 0 2 1 I S H A R E S S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
|
||||||||||||||||
iShares ETF and Counterparty | |
Market Value of Securities on Loan |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received |
|
Net Amount | ||||||
|
||||||||||||||||
North American Tech-Multimedia Networking |
||||||||||||||||
BNP Paribas SA |
$ | 34,628 | $ | 34,628 | $ | — | $ | — | ||||||||
BofA Securities, Inc. |
430,842 | 430,842 | — | — | ||||||||||||
Goldman Sachs & Co. LLC |
2,367,947 | 2,367,947 | — | — | ||||||||||||
J.P. Morgan Securities LLC |
239,232 | 239,232 | — | — | ||||||||||||
Morgan Stanley |
2,665,310 | 2,665,310 | — | — | ||||||||||||
National Financial Services LLC |
106,750 | 106,750 | — | — | ||||||||||||
Wells Fargo Securities LLC |
834,815 | 834,815 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 6,679,524 | $ | 6,679,524 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Semiconductor |
||||||||||||||||
Barclays Bank PLC |
$ | 1,171,800 | $ | 1,171,800 | $ | — | $ | — | ||||||||
Barclays Capital, Inc. |
864,222 | 864,222 | — | — | ||||||||||||
J.P. Morgan Securities LLC |
37,840,299 | 37,840,299 | — | — | ||||||||||||
UBS AG |
9,209,550 | 9,179,921 | — | (29,629 | )(b) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 49,085,871 | $ | 49,056,242 | $ | — | $ | (29,629 | ) | ||||||||
|
|
|
|
|
|
|
|
(a) |
Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
(b) |
The market value of the loaned securities is determined as of September 30, 2021. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. |
DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk) .
Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
6. |
INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
N O T E S T O F I N A N C I A L S T A T E M E N T S |
49 |
Notes to Financial Statements (unaudited) (continued)
For its investment advisory services to the iShares Biotechnology ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $121 billion |
0.4800 | % | ||
Over $121 billion, up to and including $181 billion |
0.4560 | |||
Over $181 billion, up to and including $231 billion |
0.4332 | |||
Over $231 billion, up to and including $281 billion |
0.4116 | |||
Over $281 billion |
0.3910 |
For its investment advisory services to each of the iShares Expanded Tech Sector, iShares Expanded Tech-Software Sector, iShares North American Natural Resources, iShares North American Tech-Multimedia Networking and iShares Semiconductor ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $10 billion |
0.4800 | % | ||
Over $10 billion, up to and including $20 billion |
0.4300 | |||
Over $20 billion, up to and including $30 billion |
0.3800 | |||
Over $30 billion, up to and including $40 billion |
0.3420 | |||
Over $40 billion |
0.3078 |
Prior to July 14, 2021, for its investment advisory services to each of the iShares Expanded Tech Sector, iShares Expanded Tech-Software Sector, iShares North American Natural Resources, iShares North American Tech-Multimedia Networking and iShares Semiconductor ETFs, BFA was entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |||
First $10 billion |
0.480 | % | ||
Over $10 billion, up to and including $20 billion |
0.430 | |||
Over $20 billion, up to and including $30 billion |
0.380 | |||
Over $30 billion |
0.342 |
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 77% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
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Notes to Financial Statements (unaudited) (continued)
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the six months ended September 30, 2021, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC |
|||
Biotechnology |
$ | 572,863 | ||
Expanded Tech Sector |
30,484 | |||
Expanded Tech-Software Sector |
148,046 | |||
North American Natural Resources |
4,285 | |||
North American Tech-Multimedia Networking |
3,316 | |||
Semiconductor |
48,192 |
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended September 30, 2021, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales | Net Realized Gain (Loss) |
|||||||||
Biotechnology |
$ | 245,475,291 | $ | 312,024,605 | $ | (38,952,473) | ||||||
Expanded Tech Sector |
15,530,586 | 10,089,023 | 439,676 | |||||||||
Expanded Tech-Software Sector |
51,182,246 | 57,744,303 | (3,971,359) | |||||||||
North American Natural Resources |
8,888,360 | 10,371,213 | (5,786,467) | |||||||||
North American Tech-Multimedia Networking |
5,169,027 | 7,005,077 | 354,889 | |||||||||
Semiconductor |
193,280,752 | 180,821,046 | 7,128,988 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the Statements of Operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. |
PURCHASES AND SALES |
For the six months ended September 30, 2021, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:
iShares ETF | Purchases | Sales | ||||||
Biotechnology |
$ | 3,276,411,164 | $ | 3,275,343,949 | ||||
Expanded Tech Sector |
110,725,992 | 113,611,793 | ||||||
Expanded Tech-Software Sector |
382,351,415 | 383,877,569 | ||||||
North American Natural Resources |
34,036,132 | 33,803,529 | ||||||
North American Tech-Multimedia Networking |
14,538,649 | 14,568,577 | ||||||
Semiconductor |
1,533,014,803 | 1,543,271,641 |
For the six months ended September 30, 2021, in-kind transactions were as follows:
iShares ETF | In-kind Purchases |
In-kind Sales |
||||||
Biotechnology |
$ | 6,957,957,820 | $ | 7,052,299,148 | ||||
Expanded Tech Sector |
304,794,684 | 256,654,023 | ||||||
Expanded Tech-Software Sector |
6,147,363,181 | 6,414,843,273 | ||||||
North American Natural Resources |
61,148,298 | 58,386,448 | ||||||
North American Tech-Multimedia Networking |
14,354,932 | 6,884,429 | ||||||
Semiconductor |
4,595,167,223 | 3,959,050,824 |
8. |
INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
51 |
Notes to Financial Statements (unaudited) (continued)
Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
As of March 31, 2021, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
iShares ETF | Non-Expiring | |||
Biotechnology |
$ | 1,428,052,267 | ||
Expanded Tech Sector |
22,125,503 | |||
Expanded Tech-Software Sector |
111,306,889 | |||
North American Natural Resources |
477,090,865 | |||
North American Tech-Multimedia Networking |
70,375,105 | |||
Semiconductor |
83,206,150 |
As of September 30, 2021, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost | Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation (Depreciation) |
||||||||||||
Biotechnology |
$ | 12,418,888,945 | $ | 829,025,957 | $ | (1,856,947,081 | ) | $ | (1,027,921,124) | |||||||
Expanded Tech Sector |
2,143,578,723 | 1,584,727,935 | (30,466,456 | ) | 1,554,261,479 | |||||||||||
Expanded Tech-Software Sector |
5,864,766,917 | 213,639,091 | (325,156,870 | ) | (111,517,779) | |||||||||||
North American Natural Resources |
528,980,432 | 32,797,773 | (129,939,163 | ) | (97,141,390) | |||||||||||
North American Tech-Multimedia Networking |
114,087,290 | 10,614,646 | (7,401,820 | ) | 3,212,826 | |||||||||||
Semiconductor |
7,088,357,242 | 418,912,553 | (237,208,213 | ) | 181,704,340 |
9. |
LINE OF CREDIT |
The iShares Semiconductor ETF, along with certain other iShares funds (“Participating Funds”), is a party to a $300 million credit agreement (“Credit Agreement”) with State Street Bank and Trust Company, which expires on October 15, 2021. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Credit Agreement sets specific sub limits on aggregate borrowings based on two tiers of Participating Funds: $300 million with respect to the funds within Tier 1, including the Fund, and $200 million with respect to Tier 2. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Credit Agreement. The Credit Agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR rate (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Credit Agreement. The Credit Agreement was terminated on August 12, 2021.
Effective August 13, 2021, the iShares Semiconductor ETF, along with certain other iShares funds (“Participating Funds”), is a party to a $800 million credit agreement (“Syndicated Credit Agreement”) with a group of lenders, which expires on August 12, 2022. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Syndicated Credit Agreement. The Syndicated Credit Agreement has the following terms: a commitment fee of 0.15% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR rate (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Syndicated Credit Agreement.
During the six months ended September 30, 2021, the Fund did not borrow under the Syndicated Credit Agreement.
10. |
PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
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Notes to Financial Statements (unaudited) (continued)
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Market Risk: An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.
LIBOR Transition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates will be phased out by the end of 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.
11. |
CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
53 |
Notes to Financial Statements (unaudited) (continued)
Transactions in capital shares were as follows:
Six Months
Ended 09/30/21 |
Year
Ended 03/31/21 |
|||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
Biotechnology |
||||||||||||||||
Shares sold |
43,750,000 | $ | 6,993,597,068 | 92,850,000 | $ | 12,973,745,658 | ||||||||||
Shares redeemed |
(44,200,000 | ) | (7,071,700,518 | ) | (86,100,000 | ) | (12,183,388,091 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
(450,000 | ) | $ | (78,103,450 | ) | 6,750,000 | $ | 790,357,567 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Expanded Tech Sector |
||||||||||||||||
Shares sold |
750,000 | $ | 305,361,168 | 1,700,000 | $ | 492,883,102 | ||||||||||
Shares redeemed |
(650,000 | ) | (258,429,978 | ) | (850,000 | ) | (267,265,300 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
100,000 | $ | 46,931,190 | 850,000 | $ | 225,617,802 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Expanded Tech-Software Sector |
||||||||||||||||
Shares sold |
16,000,000 | $ | 6,162,158,767 | 35,650,000 | $ | 10,854,261,767 | ||||||||||
Shares redeemed |
(16,950,000 | ) | (6,432,752,168 | ) | (35,300,000 | ) | (11,001,899,355 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
(950,000 | ) | $ | (270,593,401 | ) | 350,000 | $ | (147,637,588 | ) | |||||||
|
|
|
|
|
|
|
|
|||||||||
North American Natural Resources |
||||||||||||||||
Shares sold |
2,050,000 | $ | 61,350,289 | 4,800,000 | $ | 110,829,085 | ||||||||||
Shares redeemed |
(2,050,000 | ) | (58,699,439 | ) | (8,100,000 | ) | (177,402,776 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
— | $ | 2,650,850 | (3,300,000 | ) | $ | (66,573,691 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
North American Tech-Multimedia Networking |
||||||||||||||||
Shares sold |
200,000 | $ | 14,368,458 | 900,000 | $ | 55,817,552 | ||||||||||
Shares redeemed |
(100,000 | ) | (6,895,313 | ) | (400,000 | ) | (22,075,788 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
100,000 | $ | 7,473,145 | 500,000 | $ | 33,741,764 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Semiconductor |
||||||||||||||||
Shares sold |
10,400,000 | $ | 4,603,735,344 | 21,350,000 | $ | 7,051,302,523 | ||||||||||
Shares redeemed |
(9,100,000 | ) | (3,976,348,178 | ) | (16,900,000 | ) | (5,475,117,379 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
1,300,000 | $ | 627,387,166 | 4,450,000 | $ | 1,576,185,144 | ||||||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.
12. |
SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
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Board Review and Approval of Investment Advisory Contract
iShares Biotechnology ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the overall fund expenses (net of waivers and reimbursements) for the Fund were within range of the median of the overall fund expenses (net of waivers and reimbursements ) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies, which were provided at the May 7, 2021 meeting and throughout the year.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected
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by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information considered.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board further noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
iShares Expanded Tech Sector ETF, iShares Expanded Tech-Software Sector ETF, iShares North American Natural Resources ETF, iShares Semiconductor ETF (each the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members)
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Board Review and Approval of Investment Advisory Contract (continued)
assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the overall fund expenses (net of waivers and reimbursements) for the Fund were within range of the median of the overall fund expenses (net of waivers and reimbursements ) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2020, to that of relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies, which were provided at the May 7, 2021 meeting and throughout the year.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue,
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Board Review and Approval of Investment Advisory Contract (continued)
including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information considered.
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and the Board and BFA agreed during the June 15-16, 2021 meeting to revise the Advisory Agreement for the Fund to provide for one or more additional breakpoints, as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
iShares North American Tech-Multimedia Networking ETF (the “Fund”)
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board
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Board Review and Approval of Investment Advisory Contract (continued)
Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.
After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.
Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that, due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances. The Board also noted that the overall fund expenses (net of waivers and reimbursements) for the Fund were higher than the median of overall fund expenses (net of waivers and reimbursements ) of the funds in its Peer Group, excluding iShares funds.
In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.
Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies, which were provided at the May 7, 2021 meeting and throughout the year.
Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).
Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information considered.
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Board Review and Approval of Investment Advisory Contract (continued)
Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and the Board and BFA agreed during the June 15-16, 2021 meeting to revise the Advisory Agreement for the Fund to provide for one or more additional breakpoints, as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.
The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.
Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.
The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.
The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.
Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.
Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.
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Supplemental Information (unaudited)
Regulation Regarding Derivatives
On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Funds will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.
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Electronic Delivery
Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
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Go to icsdelivery.com. |
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If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
A description of the Company’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
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Glossary of Terms Used in this Report
Portfolio Abbreviations - Equity | ||
ADR | American Depositary Receipt | |
NVS | Non-Voting Shares | |
NYS | New York Registered Shares |
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Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by ICE Data Indices, LLC or S&P Dow Jones Indices LLC, nor do these companies make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the companies listed above.
©2021 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-SAR-313-0921
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