iShares Trust

·  iShares Dow Jones U.S. ETF | IYY | NYSE Arca

·  iShares U.S. Energy ETF | IYE | NYSE Arca

·  iShares U.S. Healthcare ETF | IYH | NYSE Arca

·  iShares U.S. Technology ETF | IYW | NYSE Arca

·  iShares U.S. Transportation ETF | IYT | Cboe BZX

·  iShares U.S. Utilities ETF | IDU | NYSE Arca

Table of Contents

Market Overview

iShares Trust

Domestic Market Overview

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

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

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

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

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

Investment Objective

The iShares Dow Jones U.S. ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of U.S. equities, as represented by the Dow Jones U.S. Index^TM (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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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 17 for more information.

Expense Example

Portfolio Management Commentary

U.S. stocks declined for the reporting period, as high inflation, rising interest rates, and slowing economic growth pressured stocks. The communication services sector detracted the most from the Index’s return, particularly the media and entertainment industry, as shifts in consumer consumption patterns disrupted both advertising and subscription-based revenue streams. Enhanced privacy tools and opt-in data tracking built into mobile operating systems made it more difficult for advertisers to target consumers. High inflation and the war in Ukraine prompted companies to slow their online advertising spending, which further weighed on industry revenues. Changing consumer behavior also negatively impacted stocks of content providers in the entertainment industry. Increased password sharing and strong competition pressured revenues of companies that sell subscription-based streaming content. The resumption of in-person activities further dampened growth for home entertainment providers.

The consumer discretionary sector also detracted from the Index’s performance. The internet and direct marketing retail industry declined the most as the strong growth in online retailing that accelerated during the pandemic began to slow. As sales growth slowed, costs from recent investments to increase capacity, including staffing and warehouses, rose faster than revenues, pressuring profit margins. High inflation further weighed on profitability, as costs for transportation, shipping, and labor increased sharply.

On the upside, the energy sector was the leading contributor to the Index’s return amid higher prices for energy commodities. The oil, gas, and consumable fuels industry benefited directly from rising oil and gas prices, which drove increased cash flow, allowing companies to reduce their debt loads while minimizing investment spending.

The consumer staples sector also gained, driven primarily by the beverages industry. Brand loyalty helped the beverages industry to improve profit margins by raising prices to keep pace with rising input costs.

Portfolio Information

Investment Objective

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

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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 17 for more information.

Expense Example

Portfolio Management Commentary

U.S. energy stocks advanced sharply during the reporting period, as oil prices soared on renewed demand and concerns about supply constraints following Russia’s invasion of Ukraine. Oil prices rose early in the reporting period as vaccinations against COVID-19 rolled out and the global economy recovered. Oil prices continued to climb throughout 2021 as coronavirus-related restrictions eased, travel increased, and oil stockpiles dropped. Members of OPEC and other oil-producing countries gradually increased oil supply throughout 2021, but demand outstripped supply, sending prices higher. U.S. oil producers, which curtailed output in 2020 when prices slid, were slow to renew production when economic activity and demand rebounded. Oil prices briefly faltered late in 2021 when the emergence of new coronavirus variants raised fears of renewed shutdowns and weakened global economic demand.

However, oil prices rose sharply in March 2022 after the U.S. and its European allies began considering banning oil imports from Russia following its invasion of Ukraine. Russia is the world’s top exporter of oil and oil products. U.S. natural gas prices also soared during the reporting period, nearly doubling during the first four months of 2022 and hitting a 13-year high.

U.S. oil, gas, and consumable fuels stocks contributed the most to the Index’s return, as stocks in the industry hit their highest levels in years following the rally in oil prices. In a marked turnaround from 2020, energy companies posted stronger earnings and, flush with excess cash, rewarded shareholders by buying back their own stock and raising dividends. The higher oil prices and free cash flow led some companies to expand plans to invest in new oil production, although many detailed only modest budget expansions.

Portfolio Information

Investment Objective

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

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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 17 for more information.

Expense Example

Portfolio Management Commentary

U.S. healthcare stocks advanced significantly for the reporting period amid strong sales of pharmaceuticals, especially products used to combat the ongoing coronavirus pandemic. The pharmaceuticals industry was the top contributor to the Index’s return. Vaccines developed by pharmaceuticals companies to protect against the COVID-19 virus were a crucial driver of revenues for the reporting period, generating billions of U.S. dollars in sales. Pharmaceuticals firms also developed antibody therapies to fight COVID-19 that the U.S. government contracted to purchase. Sales of antiviral medications also benefited the industry; the U.S. government purchased and distributed antivirals in large quantities, then authorized their use in its new “test to treat” program. Outside of treatments and vaccines for the coronavirus, the pharmaceuticals industry was helped by continued strong sales of already-approved drugs, as global spending on medicine grew. Sales of treatments for Alzheimer’s, diabetes, as well as plaque psoriasis, cancer, and schizophrenia, supported revenues.

Some pharmaceuticals companies focused their operations, strategically divesting legacy businesses in favor of emphasizing new product development. For example, a large healthcare and pharmaceuticals company announced plans to spin off its consumer products unit to focus on its core pharmaceuticals business. Other significant trends included the use of artificial intelligence to spur drug development and the move toward personalized medicine, allowing for more targeted and efficient research and development. The healthcare providers and services industry also contributed due to strong healthcare plan enrollments and investors’ demand for lower volatility stocks amid rising inflation and the Russian invasion of Ukraine.

On the downside, the healthcare equipment and supplies industry detracted from the Index’s return. The spread of a new coronavirus variant led to a smaller number of healthcare procedures, reducing revenues.

Portfolio Information

Investment Objective

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

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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 17 for more information.

Expense Example

Portfolio Management Commentary

U.S. technology stocks declined during the reporting period as users spent less time on social media platforms as the coronavirus pandemic ebbed. Expenditures on online advertising, especially in Europe, declined amid supply chain disruptions and rising inflation. Interest rate increases by the Fed and concerns about sales disruptions due to Russia’s invasion of Ukraine weighed heavily on U.S. technology stocks.

The application software industry detracted the most from the Index’s return. Software-as-a-service revenues declined as the trend for businesses to migrate online to facilitate remote work receded amid easing pandemic-related restrictions. Rising interest rates and increasing competition also challenged the industry.

The interactive media and services industry also detracted from the Index’s performance, as profits and revenues fell by record amounts amid increased competition on digital platforms, especially video-based social media. Investors grew concerned that changes to corporate policies designed to increase user privacy would make targeted advertising more difficult, ultimately reducing sales. Additionally, new European regulatory policies and tighter monetary policy from the Fed weighed on the industry. Toward the end of the reporting period, Russia’s ban of a major social media platform following the invasion of Ukraine led to a steep loss in users.

On the upside, the technology hardware and equipment industry contributed significantly to the Index’s return. Increased time at home drove strong demand for computing products for both work and leisure, leading to record earnings despite ongoing supply chain challenges. Strong demand for subscription services, including music and streaming video, drove rising revenues.

In the systems software industry, development of new products and services and industry consolidation bolstered the Index’s return. Strength in sales of hardware, including personal computers and tablets, contributed to rising revenues.

Portfolio Information

Investment Objective

The iShares U.S. Transportation ETF (the “Fund”) (formerly the iShares Transportation Average ETF) seeks to track the investment results of an index composed of U.S. equities in the transportation sector, as represented by the S&P Transportation Select Industry FMC Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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 17 for more information.

Expense Example

Portfolio Management Commentary

U.S. transportation stocks declined for the reporting period as cost increases, labor shortages, and ongoing disruption due to the emergence of COVID-19 variants outweighed robust industry demand. Additionally, investor concern over the impact of rising interest rates on consumer spending drove transportation stocks sharply lower at the close of the reporting period.

Air freight and logistics companies were the primary detractors from the Index’s return as supply chain difficulties weighed on growth. Delivery companies increased parcel shipping prices at the fastest pace in nearly a decade, in part to offset the costly infrastructure upgrades required to keep pace with the high-demand environment. Supply was constrained by a shortage of truck drivers, port closures, and rail yard and port congestion. Labor shortages at distribution centers also lowered operating volumes. War in Ukraine further exacerbated supply constraints as sanctions on Russia disrupted shipping routes and created congestion at European ports. Stocks also fell on investor concerns that e-commerce activity faced slowdowns due to the lifting of COVID-19 restrictions and consumers shifting spending from goods to services and travel.

Road and rail stocks also detracted from the Index’s return as a shortage of drivers and rising gas prices increased costs and the persistence of COVID-19 variants and the resulting drag on rider demand lowered earnings outlooks. To attract and retain drivers, ride-sharing companies re-introduced incentive programs and fuel surcharges to help offset higher fuel prices. While the incentive programs aided in driver recruitment, they also increased costs and lowered profit margins. A slowdown in the demand for food delivery services as consumers returned to in-person dining further impacted revenues of ride-sharing companies with food delivery divisions.

Portfolio Information

Investment Objective

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

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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 17 for more information.

Expense Example

Portfolio Management Commentary

U.S. utilities stocks advanced for the reporting period, outpacing the broader domestic equity market. The utilities sector was supported as coronavirus pandemic-related restrictions eased, global economies rebounded, and electricity prices surged. Additionally, investors increasingly sought utilities stocks, as they are typically regarded as less-risky in periods of market turbulence because consumer spending on power is relatively non-discretionary.

Electric utilities contributed the most to the Index’s return. U.S. electricity prices reached a 13-year high in 2021 as pandemic-related restrictions eased, and severe weather led to energy disruptions. The U.S. government expected electricity demand and prices throughout the U.S. to continue rising in 2022. Prices for natural gas, the leading source of power generation for U.S. electricity, also rose considerably for the reporting period as economic growth recovered and demand increased. Like electricity prices, the U.S. government expected a continued increase in natural gas costs during 2022.

Despite rising input costs, earnings for electricity providers increased as they were able to continue raising usage rates while benefiting from investments to improve transmission, modernize power grids, and add renewable energy capacity. U.S. investment in renewable energy set a record in 2021, as renewable energy projects represented the vast majority of investment in new capacity, supporting the U.S. administration’s goal of emissions-free electricity by 2035. Broadly, the amount of electricity produced by renewable energy, primarily solar and wind power, quadrupled in the past decade, whereas coal-fired generation declined 62% since 2007. Meanwhile, within the industrials sector, a large environmental and facilities services company contributed to the Index’s return as the company’s customer retention and overall growth benefited from technology investments and a key acquisition.

Portfolio Information

About Fund Performance

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

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

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

Shareholder Expenses

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

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

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

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