LOGO

  MARCH 31, 2023

 

 

  

  

 

2023 Annual Report

 

 

 

iShares Trust

·  iShares Asia 50 ETF | AIA | NASDAQ

·  iShares Blockchain and Tech ETF | IBLC | NYSE Arca

·  iShares Emerging Markets Infrastructure ETF | EMIF | NASDAQ

·  iShares Europe ETF | IEV | NYSE Arca

·  iShares Future Metaverse Tech and Communications ETF | IVRS | NYSE Arca

·  iShares India 50 ETF | INDY | NASDAQ

·  iShares International Developed Property ETF | WPS | NYSE Arca

·  iShares International Developed Small Cap Value Factor ETF | ISVL | Cboe BZX

·  iShares International Dividend Growth ETF | IGRO | Cboe BZX

·  iShares Latin America 40 ETF | ILF | NYSE Arca


The Markets in Review

Dear Shareholder,

Significant economic headwinds emerged during the 12-month reporting period ended March 31, 2023, as investors navigated changing economic conditions and volatile markets. The U.S. economy shrank in the first half of 2022 before returning to modest growth in the second half of the year, marking a shift to a more challenging post-reopening economic environment. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high before beginning to moderate.

Equity prices fell as interest rates rose, particularly during the first half of the reporting period. Both large-and small-capitalization U.S. stocks declined, although equities began to recover in the second half of the period as inflation eased and economic growth resumed. Emerging market stocks and international equities from developed markets declined overall, pressured by rising interest rates and volatile commodities prices.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to fluctuating inflation data and attempted to anticipate its impact on future interest rate changes. The corporate bond market also faced inflationary headwinds, and higher interest rates led to rising borrowing costs for corporate issuers.

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation has been more persistent than expected, raised interest rates eight times. Furthermore, the Fed wound down its bond-buying programs and accelerated the reduction of its balance sheet.

Restricted labor supply kept inflation elevated even as other inflation drivers, such as goods prices and energy costs, moderated. While economic growth slowed in the last year, we believe that taming inflation requires a more substantial decline that lowers demand to a level more in line with the economy’s productive capacity. Although the Fed has decelerated the pace of interest rate hikes, we believe that it still seems determined to get inflation back to target. With this in mind, we believe the possibility of a U.S. recession in the near-term is high, but the dimming economic outlook has not yet been fully reflected in current market prices. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt to rapidly changing conditions. Turmoil in the banking sector late in the period highlighted the potential for the knock-on effects of substantially higher interest rates to disrupt markets with little warning.

While we favor an overweight to equities in the long term, we prefer an underweight stance on equities overall in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with the possibility of a recession. Nevertheless, we are overweight on emerging market stocks as we believe a weakening U.S. dollar provides a supportive backdrop. We also see long-term opportunities in credit, where we believe that valuations are appealing and higher yields provide attractive income, although we are neutral on credit in the near term, as we’re concerned about tightening credit and financial conditions. However, we believe there are still some strong opportunities for a six- to twelve-month horizon, particularly short-term U.S. Treasuries, global inflation-linked bonds, and emerging market bonds denominated in local currency.

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

 

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of March 31, 2023
     
      6-Month     12-Month
   

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

    15.62%         (7.73)%
   

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

    9.14         (11.61) 
   

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

    27.27          (1.38)
   

Emerging market equities
(MSCI Emerging Markets Index)

    14.04         (10.70) 
   

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

    1.93         2.52
   

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

    4.38         (6.90)
   

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

    4.89         (4.78)
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

    7.00         0.26
   

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

    7.88         (3.35)
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

2  

T H I S   P A G E   I S   N O T   P A R T   O F   Y O U R   F U N D   R E P O R T


Table of Contents

 

     Page  

 

 

The Markets in Review

     2  

Annual Report:

  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     25  

Disclosure of Expenses

     25  

Schedules of Investments

     26  

Financial Statements

  

Statements of Assets and Liabilities

     68  

Statements of Operations

     71  

Statements of Changes in Net Assets

     74  

Financial Highlights

     79  

Notes to Financial Statements

     89  

Report of Independent Registered Public Accounting Firm

     103  

Important Tax Information

     104  

Board Review and Approval of Investment Advisory Contract

     105  

Statement Regarding Liquidity Risk Management Program

     107  

Supplemental Information

     108  

Trustee and Officer Information

     110  

General Information

     113  

Glossary of Terms Used in this Report

     114  

 

 

 


Market Overview

 

iShares Trust

Global Market Overview

Global equity markets declined during the 12 months ended March 31, 2023 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned -7.44% in U.S. dollar terms for the reporting period. In the first half of the reporting period, concerns about the state of the global economy in the face of high inflation and rapidly rising interest rates drove stocks sharply lower. However, stock prices recovered somewhat in the reporting period’s second half, as economic growth proved resilient despite its slower pace.

Inflation was a significant factor in equity markets, and while its impact varied by country, most major economies experienced substantial inflation during the reporting period. This drove a wave of monetary tightening by most of the world’s central banks, which sent interest rates and borrowing costs sharply higher. The U.S. Federal Reserve (“Fed”) raised interest rates eight times, driving an increase in the value of the U.S. dollar relative to most other currencies. Commodities prices were volatile, and as the reporting period began, disruptions in the wake of Russia’s invasion of Ukraine meant high prices for energy commodities and some foods. While oil, gas, and most other commodities declined as markets adjusted to the war’s disruption, elevated prices exacerbated inflationary pressure.

The U.S. economy recovered from a decline in the first half of 2022 to post modest growth in the third and fourth quarters of 2022. Consumers continued to power the economy with growing spending, despite higher prices for many consumer goods and services. The strong labor market supported spending as unemployment remained very low, at one point dropping to the lowest recorded level since 1969. Furthermore, the labor force participation rate—which measures the total proportion of employed persons of working age—rose, indicating that more people were being drawn into the labor force. Amid tightening labor supply, wages rose significantly, with the largest gains at the lower end of the wage spectrum.

In addition to its interest rate increases, the Fed also started to reduce the size of its balance sheet by reducing the store of U.S. Treasuries it had accumulated to stabilize markets in the early phases of the coronavirus pandemic. While the Fed indicated that more tightening could be needed to achieve its long-term inflation goal, it sounded a more cautious note about the potential for further interest rate increases near the end of the reporting period.

European stocks outpaced most other regions of the globe, advancing modestly for the reporting period despite slowing economic growth. European stocks benefited from a solid recovery following the early phases of the war in Ukraine. While the conflict disrupted critical natural gas supplies, new sources were secured and prices began to decline, while a warm winter helped moderate consumption. The European Central Bank (“ECB”) responded to the highest inflation since the introduction of the euro by raising interest rates six times.

While inflation was somewhat more moderate in the Asia-Pacific region, stocks there declined amid higher interest rates and disruption from coronavirus-related lockdowns in China. However, China relaxed its strict anti-coronavirus protocols in December 2022, boosting analysts’ expectations for future growth in the region. Emerging market stocks declined substantially, pressured by slowing economic growth and a stronger U.S. dollar. The Fed’s interest rate increases weighed on emerging market equities by making U.S. assets relatively more attractive.

 

 

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2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary as of March 31, 2023    iShares® Asia 50 ETF

 

Investment Objective

The iShares Asia 50 ETF (the “Fund”) seeks to track the investment results of an index composed of 50 of the largest Asian equities, as represented by the S&P Asia 50TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
      1 Year      5 Years      10 Years                1 Year      5 Years      10 Years  

Fund NAV

    (7.77 )%       0.33      5.12%          (7.77 )%       1.66      64.70

Fund Market

    (7.62      0.02        5.09             (7.62      0.08        64.26  

Index

    (8.86      0.96        5.73                   (8.86      4.90        74.57  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 


Beginning

Account Value
(10/01/22)

 


 

      


Ending

Account Value
(03/31/23)

 


 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,251.40          $        2.81       $      1,000.00             $      1,022.40          $        2.52          0.50

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  5


Fund Summary as of March 31, 2023   (continued)    iShares® Asia 50 ETF

 

Portfolio Management Commentary

Large-capitalization stocks in Asia declined significantly for the reporting period, pressured by higher interest rates. South Korean stocks detracted the most from the Index’s return in an environment of stalling economic growth. The South Korean economy slowed in the first half of the reporting period before contracting in the fourth quarter of 2022 amid normalizing consumer spending patterns and declining exports. Inflation was elevated, although it remained lower than in many other developed economies and decelerated by the end of the reporting period. In response to inflation, the Bank of Korea raised interest rates multiple times, pressuring stocks. The South Korean won also declined relative to the U.S. dollar, reducing the value of South Korean equities in U.S. dollar terms.

The South Korean information technology sector was the largest source of weakness, led by the technology hardware, storage, and peripherals industry. A sharp decline in demand for smartphones worked against the industry, driving a significant decline in earnings. Softer pricing for memory chips also dented the industry’s profitability. Stocks in the communication services sector also declined, as the interactive media and services industry faced slower growth in advertising revenue.

Taiwanese stocks also detracted from the Index’s performance. Taiwan’s economy contracted on an annual basis in the fourth quarter of 2022, stifled by declining exports. The economy of China, Taiwan’s largest trading partner, was slowed by strict lockdowns to prevent the spread of COVID-19, disrupting many Taiwanese businesses. The Taiwanese information technology sector declined the most, primarily the semiconductors and semiconductor equipment industry. As supply chains and spending patterns recovered from the coronavirus pandemic, global demand for semiconductors cooled significantly, pressuring the outlook for the industry. New U.S. restrictions on certain technology sales to China disrupted investment plans in the industry.

Chinese stocks also declined, driven by the internet and direct marketing retail industry in the consumer discretionary sector. Profitability in the industry was constrained by government restrictions and heightened competition among e-retailers.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector    
Percent of
Total Investments
 
(a) 

Information Technology

    33.9

Financials

    22.4  

Communication Services

    17.8  

Consumer Discretionary

    17.6  

Materials

    3.1  

Industrials

    2.3  

Real Estate

    1.5  

Health Care

    1.4  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    
Percent of
Total Investments
 
(a) 

China

    41.1

South Korea

    22.1  

Taiwan

    21.9  

Hong Kong

    10.1  

Singapore

    4.8  

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2023    iShares® Blockchain and Tech ETF

 

Investment Objective

The iShares Blockchain and Tech ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. and non-U.S. companies that are involved in the development, innovation, and utilization of blockchain and crypto technologies; as represented by the NYSE FactSet Global Blockchain Technologies 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

 

    Cumulative Total Returns  
    

Since

Inception

 

Fund NAV

    (35.71 )% 

Fund Market

    (35.53

Index

    (36.20

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSETVALUE)

 

LOGO

The inception date of the Fund was April 25, 2022. The first day of secondary market trading was April 27, 2022.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $      1,000.00          $      1,130.80          $        2.50       $      1,000.00             $      1,022.60          $        2.37          0.47

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  7


Fund Summary as of March 31, 2023   (continued)    iShares® Blockchain and Tech ETF

 

Portfolio Management Commentary

The blockchain industry contracted significantly in 2022, in contrast to the exponential growth of preceding years. In particular, investor confidence in cryptocurrencies and digital assets —which underpin the model of decentralized finance that blockchain technology supports —dissipated amid a series of high-profile business failures. The collapse of an algorithmically powered stablecoin, an asset intended to maintain a 1:1 peg with the U.S. dollar, created significant ripple effects across the industry, leading to the demise of a major hedge fund and multiple lenders. The revelation of large-scale fraud within a major U.S. cryptocurrency exchange further weakened confidence, sending asset prices sharply lower.

At the same time, the sharp rise in interest rates offered investors of digital assets the opportunity to earn higher yields on other securities deemed less volatile, such as U.S. Treasuries. As gold prices climbed and cryptocurrencies dropped amid high inflation, investors were increasingly skeptical of bitcoin’s appeal over the precious metal as a store of value. This sentiment, along with ongoing volatility in the cryptocurrency markets, fueled an exodus of assets away from decentralized finance.

Profitability among bitcoin miners, or companies that devote extensive computing power to solving mathematical equations to generate cryptocurrencies, fell substantially as operating costs climbed and the market value of the assets fell. Cryptocurrency exchanges reported a sizable reduction in trading activity, which substantially decreased revenues and profits. Venture capital funding for blockchain and cryptocurrency projects also slowed. U.S. regulators took enforcement actions against multiple cryptocurrency businesses. Citing a lack of regulatory clarity and increased scrutiny, a handful of cryptocurrency companies closed U.S. business units.

Signs of a recovery emerged later in the reporting period, as digital asset and blockchain technology stocks climbed from their lowest prices, and investors returned. Blockchain technology continued to help businesses achieve tangible operational benefits beyond their current infrastructures. Technology conglomerates also announced efforts to broaden blockchain usage among enterprises and governments. The E.U. advanced measures to create a clear and comprehensive set of operating guidelines for cryptocurrency companies in the region.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector    
Percent of
Total Investments
 
(a) 

Information Technology

    58.9

Financials

    34.4  

Industrials

    3.9  

Communication Services

    1.4  

Consumer Discretionary

    1.4  

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

Riot Blockchain Inc.

    17.0

Coinbase Global Inc., Class A

    11.3  

Block Inc. New

    9.2  

Marathon Digital Holdings Inc.

    5.5  

Hut 8 Mining Corp.

    4.8  

Cleanspark Inc.

    4.4  

Advanced Micro Devices Inc.

    4.3  

Nvidia Corp.

    4.2  

Wolters Kluwer NV

    3.9  

International Business Machines Corp.

    3.6  

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2023    iShares® Emerging Markets Infrastructure ETF

 

Investment Objective

The iShares Emerging Markets Infrastructure ETF (the “Fund”) seeks to track the investment results of an index composed of 30 of the largest equities in the emerging markets infrastructure industry, as represented by the S&P Emerging Markets Infrastructure IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
     1 Year      5 Years      10 Years                1 Year      5 Years      10 Years  

Fund NAV

    (3.11 )%       (4.92 )%       (2.21)%          (3.11 )%       (22.28 )%       (20.05 )% 

Fund Market

    (4.32      (5.25      (2.32)             (4.32      (23.65      (20.95

Index

    (2.76      (4.48      (1.64)                   (2.76      (20.49      (15.28

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending

Account Value

(03/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,157.20          $        3.23       $      1,000.00             $      1,021.90          $        3.02          0.60

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  9


Fund Summary as of March 31, 2023   (continued)    iShares® Emerging Markets Infrastructure ETF

 

Portfolio Management Commentary

Infrastructure stocks in emerging markets declined for the reporting period amid volatility due to slowing economic growth, high global inflation, and concerns about the impact of rising interest rates. During the reporting period, rising energy prices in the wake of Russia’s invasion of Ukraine, as well as turmoil in the global banking system, were headwinds for emerging market infrastructure stocks. A slowdown in global inflation and China’s shift away from COVID-19 pandemic restrictions generally helped the Index’s performance later in the reporting period.

Utilities stocks in China detracted the most from the Index’s return. The country’s reopening from pandemic restrictions, along with government subsidies to renewable energy firms, were tailwinds for the sector. However, large renewable electricity stocks declined amid weak demand and relatively high industry-wide debt as many firms awaited overdue green energy subsidies promised by the central government. In addition, higher coal prices reduced profitability for companies distributing power generated from coal-fired plants.

Stocks in Brazil also detracted from the Index’s return. Electric utilities stocks fell as a change in the country’s presidential administration cast doubt on the industry’s recent privatization. Oil and gas storage and transportation stocks also declined, reflecting a surge in oil prices early in the reporting period and high debt levels that clouded credit rating outlooks.

Conversely, stocks of airport services firms in Mexico contributed to the Index’s return. North American companies, responding to supply-chain difficulties that surfaced during the pandemic, returned more of their production base closer to home. The country’s increased travel tied to that environment benefited the industry’s stocks. Overall, air travel in Mexico finally returned to pre-pandemic levels. Passenger traffic rose 5% in the first 11 months of 2022 compared with the same time frame in 2019. The increase, in part, reflected fewer U.S. border restrictions with Mexico beginning in late 2021 and a large influx of international workers.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector    

Percent of

Total Investments

 

(a) 

Utilities

    40.0

Industrials

    40.0  

Energy

    20.0  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

China

    39.7

Brazil

    20.2  

Mexico

    17.7  

Thailand

    9.8  

United Arab Emirates

    4.8  

Qatar

    4.5  

South Korea

    3.3  

Russia

    0.0  

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2023     iShares® Europe ETF

 

Investment Objective

The iShares Europe ETF (the “Fund”) seeks to track the investment results of an index composed of European equities, as represented by the S&P Europe 350TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
      1 Year      5 Years      10 Years                1 Year      5 Years      10 Years  

Fund NAV

    2.87      4.41      5.28%          2.87      24.07      67.34

Fund Market

    2.60        4.32        5.27             2.60        23.54        67.07  

Index

    1.58        4.58        5.55                   1.58        25.10        71.68  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning

Account Value

(10/01/22)

 

 

 

      

Ending
Account Value

(03/31/23)

 
 

 

      

Expenses
Paid During

the Period

 
 

(a) 

   

Beginning      

Account Value      

(10/01/22)      

 

 

 

   

Ending
Account Value
(03/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,332.20          $        3.78       $      1,000.00             $      1,021.70          $        3.28          0.65

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  11


Fund Summary as of March 31, 2023   (continued)    iShares® Europe ETF

 

Portfolio Management Commentary

European stocks rose modestly during the reporting period as companies navigated an array of economic and business challenges, including stubbornly high inflation, the ongoing war in Ukraine, COVID-19 lockdowns in China, and a Swiss banking crisis. French stocks contributed the most to the Index’s return as surging consumer demand for luxury goods benefited companies in the consumer discretionary sector. Textile and apparel makers added new jobs and increased shareholder dividends. Sales at the world’s largest luxury group topped pre-pandemic levels as affluent Americans, buoyed by the strong U.S. dollar, returned to spending on international travel and luxury goods such as jewelry and luggage. Demand from U.S. and European consumers also drove sales of beauty products and helped offset rising input costs and the impact of China’s slowdown. A strong recovery in oil demand and the ongoing restriction on supply stemming from Russia’s war in Ukraine aided profits of French energy companies.

Danish stocks also contributed to the Index’s return, with pharmaceuticals companies leading returns. Demand for a new medicine for obesity outstripped supply in the U.S. and delayed its entry into many European markets. Sales of the drug increased operating profits of the drug’s developer and boosted the stock’s price.

On the downside, pharmaceuticals stocks in Switzerland were the largest detractors from the Index’s return, as the receding pandemic reduced demand for COVID-19 products. The failure of a highly anticipated Alzheimer’s drug to slow the onset of the disease in clinical trials disappointed investors, sending stock prices lower. Bank stocks were also notable detractors from the Index’s return after the near-collapse of a prominent Swiss bank shook investor confidence, leading to a government-structured deal with a rival lender. Swiss consumer staples stocks also detracted from the Index’s return as packaged foods companies reported lower sales volumes despite moves to offset higher raw material costs by increasing the prices of consumer goods.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector    
Percent of
Total Investments
 
(a) 

Financials

    17.1

Health Care

    15.4  

Industrials

    14.8  

Consumer Staples

    12.9  

Consumer Discretionary

    11.7  

Materials

    7.1  

Information Technology

    6.8  

Energy

    5.9  

Utilities

    4.2  

Communication Services

    3.5  

Real Estate

    0.6  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    
Percent of
Total Investments
 
(a) 

United Kingdom

    23.4

France

    18.4  

Switzerland

    15.5  

Germany

    12.8  

Netherlands

    7.2  

Sweden

    4.7  

Denmark

    4.7  

Spain

    3.9  

Italy

    3.6  

Belgium

    1.5  

Finland

    1.5  

Ireland

    1.2  

Other (each representing less than 1%)

    1.6  

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2023     iShares® Future Metaverse Tech and Communications ETF

 

Investment Objective

The iShares Future Metaverse Tech and Communications ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. and non-U.S. companies that provide products and services that are expected to contribute to the metaverse in areas including virtual platforms, social media, gaming, 3D software, digital assets, and virtual and augmented reality, as represented by the Morningstar Global Metaverse & Virtual Interaction Select Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Cumulative Total Returns
    

Since   

Inception   

Fund NAV

  4.82%

Fund Market

  4.62   

Index

  4.78   

For the fiscal period ended March 31, 2023, the Fund did not have six months of performance and therefore line graphs are not presented.

The inception date of the Fund was February 14, 2023. The first day of secondary market trading was February 16, 2023.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning
Account Value
(02/14/23)
 
 
(a)  
      

Ending
Account Value
(03/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(b) 
   

Beginning      
Account Value      
(10/01/22)      
 
 
 
   

Ending
Account Value
(03/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(b) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,048.20          $       0.59       $      1,000.00             $      1,022.60          $        2.37          0.47

 

  (a) 

Commencement of operations.

 
  (b) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 45/365 for actual expenses and 182/365 for hypothetical expenses (to reflect the six month period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    
Percent of
Total Investments
 
(a) 

Software

    29.8

Entertainment

    28.2  

Semiconductors & Semiconductor Equipment

    15.5  

Interactive Media & Services

    13.4  

Technology Hardware, Storage & Peripherals

    7.4  

Household Durables

    5.1  

Other (each representing less than 1%)

    0.6  

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a)  

Apple Inc.

    6.2

Nvidia Corp.

    5.3  

Meta Platforms Inc, Class A

    5.2  

Tencent Holdings Ltd.

    4.8  

Ansys Inc.

    4.7  

ROBLOX Corp., Class A

    4.6  

Activision Blizzard Inc.

    4.6  

Zoom Video Communications Inc., Class A

    4.6  

Electronic Arts Inc.

    4.5  

NetEase Inc.

    4.5  
  (a) 

Excludes money market funds.

 

 

 

F U N D   S U M M A R Y

  13


Fund Summary as of March 31, 2023     iShares® India 50 ETF

 

Investment Objective

The iShares India 50 ETF (the “Fund”) seeks to track the investment results of an index composed of 50 of the largest Indian equities, as represented by the Nifty 50 Index (the “Index”) and determined by the Index provider, NSE Indices Ltd. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
     1 Year     5 Years      10 Years                1 Year     5 Years      10 Years  

Fund NAV

    (7.59 )%(a)      5.87      7.16%          (7.59 )%(a)      32.99      99.69

Fund Market

    (7.75     5.52        7.06             (7.75     30.85        97.80  

Index

    (7.25     7.66        8.61                   (7.25     44.62        128.33  

 

  (a) 

The NAV total return presented in the table for the one-year period differs from the same period return disclosed in the financial highlights. The total return in the financial highlights is calculated in the same manner but differs due to certain adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

 

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning
Account Value
(10/01/22)
 
 
 
      

Ending
Account Value
(03/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
   

Beginning      
Account Value      
(10/01/22)      
 
 
 
   

Ending
Account Value
(03/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,011.00          $        4.46       $      1,000.00             $      1,020.50          $        4.48          0.89

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

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Fund Summary as of March 31, 2023   (continued)    iShares® India 50 ETF

 

Portfolio Management Commentary

Large-capitalization Indian stocks declined for the reporting period amid slowing economic growth and rising interest rates. While India’s economy continued to recover from the effects of the coronavirus pandemic, the rate of growth slowed on an annual basis in the second half of 2022 as the effect of pent-up consumer demand faded and manufacturing growth stalled. Rising interest rates also weighed on the economy, and the Reserve Bank of India increased its headline interest rate multiple times during the reporting period. While inflation was substantial, it was not significantly higher than India’s historical average and showed signs of easing as the reporting period continued. The Indian rupee declined notably relative to the U.S. dollar, reducing the value of equities held in U.S. dollar terms.

Higher oil and gas prices following Russia’s invasion of Ukraine initially had a negative impact on India, which is a large net-importer of energy commodities. However, India benefited from falling prices thereafter and was able to negotiate discounts on Russian oil that were below standard market prices. India’s exports grew, particularly exports of services, which helped to offset weaker growth in goods exports.

The Indian labor market was tepid, as unemployment remained high even as the economy continued to grow. The labor force participation rate stayed relatively low, indicating that many Indians, particularly young workers, stopped looking for work entirely. Nonetheless, consumer spending rose as economic activity continued to return to normal, sustaining the country’s economic growth.

A high-profile report from a U.S.-based finance firm accusing a large Indian conglomerate of fraud and market manipulation negatively impacted India’s stock market. The report led to intensified investor scrutiny of Indian companies associated with the conglomerate, driving a decline in Indian equities overall. However, the conglomerate vigorously contested the accusations, and an investigation by the Securities and Exchange Board of India had not released any findings by the end of the reporting period. The government’s business-friendly financial reforms helped attract investors to Indian markets.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector    
Percent of
Total Investments
 
(a) 

Financials

    37.7

Information Technology

    14.1  

Energy

    12.1  

Consumer Staples

    9.6  

Materials

    6.8  

Consumer Discretionary

    6.7  

Industrials

    4.7  

Health Care

    3.8  

Communication Services

    2.4  

Utilities

    2.1  

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

Reliance Industries Ltd.

    10.3

HDFC Bank Ltd.

    9.3  

ICICI Bank Ltd.

    8.0  

Infosys Ltd.

    6.7  

Housing Development Finance Corp. Ltd.

    6.2  

ITC Ltd.

    4.4  

Tata Consultancy Services Ltd.

    4.3  

Larsen & Toubro Ltd.

    3.4  

Kotak Mahindra Bank Ltd.

    3.3  

Axis Bank Ltd.

    3.1  
  (a) 

Excludes money market funds.

 

 

 

F U N D   S U M M A R Y

  15


Fund Summary as of March 31, 2023     iShares® International Developed Property ETF

 

Investment Objective

The iShares International Developed Property ETF (the “Fund”) seeks to track the investment results of an index composed of real estate equities in developed non-U.S. markets, as represented by the S&P Developed ex-U.S. Property IndexTM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
      1 Year      5 Years      10 Years                1 Year      5 Years      10 Years  

Fund NAV

    (22.49 )%       (3.27 )%       0.69%          (22.49 )%       (15.33 )%       7.13

Fund Market

    (22.48      (3.40      0.63             (22.48      (15.88      6.52  

Index

    (23.28      (3.25      0.71                   (23.28      (15.23      7.38  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning
Account Value
(10/01/22)
 
 
 
      

Ending
Account Value
(03/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
   

Beginning      
Account Value      
(10/01/22)      
 
 
 
   

Ending
Account Value
(03/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,081.70          $        2.54       $      1,000.00             $      1,022.50          $        2.47          0.49

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

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Fund Summary as of March 31, 2023   (continued)    iShares® International Developed Property ETF

 

Portfolio Management Commentary

International developed property stocks declined significantly during the reporting period amid a slowing global economy, elevated inflation, and sharply higher interest rates. German stocks were the largest detractors from the Index’s performance, led by equity real estate investment trusts (“REITs”). Rising interest rates drove a downturn in the real estate market in Germany, as property financing and mortgages became more expensive. Transactions in the German commercial real estate market declined significantly amid pricing uncertainty and the economic impact of Russia’s invasion of Ukraine.

German real estate operating companies were negatively affected by government action against a prominent company in the industry. German authorities raided the offices of the company and prosecutors alleged that illegal kickbacks were made in the awarding of contracts to subcontractors. While the investigation was still ongoing at the end of the reporting period, the high-profile accusations drove a significant decline in the industry.

The U.K. diversified REIT industry was another notable source of detraction from the Index’s return. Interest rates rose rapidly in the U.K. and the Bank of England was one of the first major central banks to raise interest rates. Consequently, borrowing costs rose significantly for firms investing in the U.K. property market, weighing on profitability. The deteriorating economic outlook and high interest rates led to a devaluation of some properties in the industry, while elevated inflation drove operating costs sharply higher.

Despite facing a different macroeconomic backdrop, Japanese diversified REITs also declined. Inflation was lower in Japan than in most other major economies, and the Bank of Japan (“BOJ”) held interest rates steady, keeping its key short-term interest rate in negative territory. Nonetheless, investor concerns about pressure on the BOJ to increase interest rates and modify its yield curve control policy weighed on the industry.

Diversified REITs in Australia were another source of weakness, declining amid a downturn in the real estate market. Higher interest rates and economic uncertainty negatively impacted the tenants of some warehouses and industrial properties, which in turn pressured REITs that own these properties.

 

 

F U N D   S U M M A R Y

  17


Fund Summary as of March 31, 2023   (continued)    iShares® International Developed Property ETF

 

Portfolio Information

 

INDUSTRY ALLOCATION

 

   
Industry    
Percent of
Total Investments
 
(a) 

Real Estate Operating Companies

    19.3

Diversified Real Estate Activities

    17.9  

Retail REITs

    14.3  

Industrial REITs

    14.1  

Diversified REITs

    12.1  

Office REITs

    8.8  

Real Estate Development

    4.2  

Multi-Family Residential REITs

    4.0  

Health Care REITs

    2.0  

Hotel & Resort REITs

    1.5  

Self Storage REITs

    1.0  

Other (each representing less than 1%)

    0.8  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    
Percent of
Total Investments
 
(a) 

Japan

    29.0

Hong Kong

    13.3  

Australia

    12.8  

United Kingdom

    9.6  

Singapore

    9.0  

Sweden

    4.0  

Canada

    3.7  

Germany

    3.7  

France

    3.5  

Switzerland

    2.5  

Belgium

    2.5  

Israel

    2.2  

Other (each representing less than 1%)

    4.2  
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2023     iShares® International Developed Small Cap Value Factor ETF

 

Investment Objective

The iShares International Developed Small Cap Value Factor ETF (the “Fund”) seeks to track the investment results of an index composed of international developed market small-capitalization stocks, excluding the U.S. and Korea, with prominent value characteristics, as represented by the FTSE Developed ex US ex Korea Small Cap Focused Value Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
     1 Year     Since   
Inception   
         1 Year     Since
Inception
 

Fund NAV

    (4.56 )%    (1.33)%       (4.56 )%      (2.67 )% 

Fund Market

    (4.09   (1.10)          (4.09     (2.22

Index

    (5.37   (1.23)                (5.37     (2.46

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSETVALUE)

 

LOGO

The inception date of the Fund was March 23, 2021. The first day of secondary market trading was March 25, 2021.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning
Account Value
(10/01/22)
 
 
 
      

Ending
Account Value
(03/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
   

Beginning      
Account Value      
(10/01/22)      
 
 
 
   

Ending
Account Value
(03/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,243.30          $        1.68       $      1,000.00             $      1,023.40          $        1.51          0.30

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  19


Fund Summary as of March 31, 2023   (continued)    iShares® International Developed Small Cap Value Factor ETF

 

Portfolio Management Commentary

International developed market small-capitalization stocks with prominent value characteristics declined for the reporting period amid a slowing global economy, elevated inflation, and high interest rates. U.K. stocks were the largest detractors from the Index’s performance, led by diversified real estate investment trusts (“REITs”). As interest rates edged higher, borrowing costs for firms investing in the U.K. rose significantly, squeezing profit margins and shrinking budgets. The deteriorating outlook and changing post-pandemic consumer shopping habits lowered rental income and decreased demand for warehouse properties. A sharp rise in yields also prompted property investors to cycle away from REITs in favor of government bonds.

Diversified REITs in Australia detracted from the Index’s performance amid a broader downturn in the real estate market. Higher interest rates and economic uncertainty negatively impacted the tenants of some commercial and industrial properties, which in turn pressured the REITs that own these properties. Companies involved in residential communities reported lower earnings and fewer deal closings due to labor shortages, construction delays, and rising inflation.

Canadian REIT stocks also detracted from the Index’s return as real estate stocks traded sharply lower following multiple interest rate hikes by the Bank of Canada. Commercial real estate companies reported delays in new lease agreements as clients weighed recession fears. Financials companies also detracted from the Index’s return amid high inflation and a challenging capital markets environment.

Conversely, Japanese stocks were significant contributors to the Index’s return. Steel makers raised prices to offset increased production costs and expanded into more profitable business lines, benefiting industrials stocks. Consumer discretionary companies gained as Japan reopened to foreigners and retail sales increased, particularly in the luxury watch market. Lastly, rising bank fees and higher interest rates proved profitable for Italian banks, driving contribution from Italian financials.

The Index’s selection process is designed to maximize exposure to small-capitalization stocks with prominent value characteristics, with screens to eliminate stocks with low liquidity, high volatility, high debt, negative sentiment, and negative momentum. Reflecting those constraints, the Index outperformed the broader market, as represented by the FTSE Developed ex US ex Korea Small Cap Focused Value Index. The value factor tends to perform relatively well during economic environments with high inflation and rising interest rates due in part to value’s lower-interest rate sensitivity and shorter-dated cash flows. Stock selection in the U.K., Japan, and Germany also contributed.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector    
Percent of
Total Investments
 
(a) 

Industrials

    23.9

Financials

    16.6  

Materials

    14.4  

Real Estate

    14.1  

Consumer Discretionary

    9.1  

Consumer Staples

    4.9  

Energy

    4.2  

Information Technology

    4.1  

Health Care

    3.8  

Utilities

    2.8  

Communication Services

    2.1  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    
Percent of
Total Investments
 
(a) 

Japan

    19.0

United Kingdom

    18.4  

Canada

    17.0  

Australia

    8.9  

Switzerland

    8.8  

Sweden

    5.6  

Germany

    3.3  

France

    2.9  

Finland

    2.9  

Belgium

    2.2  

Austria

    2.2  

Denmark

    2.2  

Norway

    1.6  

Singapore

    1.5  

Italy

    1.1  

New Zealand

    1.0  

Other (each representing less than 1%)

    1.4  
  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of March 31, 2023    iShares® International Dividend Growth ETF

 

Investment Objective

The iShares International Dividend Growth ETF (the “Fund”) seeks to track the investment results of an index composed of international equities with a history of consistently growing dividends, as represented by the Morningstar® Global ex-US Dividend Growth IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
      1 Year      5 Years     

Since   

Inception   

            1 Year      5 Years      Since
Inception
 

Fund NAV

    (4.60 )%       4.17      6.01%          (4.60 )%       22.69      49.36

Fund Market

    (4.61      4.01        6.04             (4.61      21.73        49.63  

Index

    (5.46      4.08        5.95                   (5.46      22.12        48.76  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was May 17, 2016. The first day of secondary market trading was May 19, 2016.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning
Account Value
(10/01/22)
 
 
 
      

Ending
Account Value
(03/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
   

Beginning      
Account Value      
(10/01/22)      
 
 
 
   

Ending
Account Value
(03/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,207.20          $        0.83       $      1,000.00             $      1,024.20          $        0.76          0.15

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  21


Fund Summary as of March 31, 2023  (continued)    iShares® International Dividend Growth ETF

 

Portfolio Management Commentary

Dividend stocks outside the U.S. declined amid rapidly rising interest rates and a weakening global economy. As central banks around the world raised interest rates, bond yields rose significantly. Dividend-bearing stocks are typically negatively impacted by higher yields, since higher income from bonds makes those investments relatively more attractive to income-seeking investors. Nonetheless, some investors viewed dividend-paying stocks as being more resilient in an economic downturn.

Canadian stocks led the decline, as bank stocks in the financials sector faced significant headwinds. Canada’s economic growth slowed during the reporting period, and the worsening economy drove an increase in provisions for loan losses at banks. A substantial payment to settle claims surrounding a large bank’s involvement with a fraudulent investment scheme also weighed on the banking industry. However, improved net interest margins amid rising interest rates helped the industry offset some of the negative impacts to income.

Swiss stocks also detracted from the Index’s performance, most notably in the healthcare sector. Pharmaceuticals companies faced declining demand for COVID-19 treatments and diagnostic testing kits as vaccinations against the virus expanded. Increased competition from several biosimilar cancer treatment drugs, which have similar active properties as older licensed drugs, also weakened sales.

In China, weakness in the financials sector detracted from performance, particularly in the banking industry. Investors’ concerns about exposure of banks to troubled Chinese property developers pressured the industry.

On the upside, Danish stocks contributed to the Index’s return, buoyed by the pharmaceuticals industry in the healthcare sector. The industry benefited from soaring sales and profits from a new anti-obesity drug, outstripping projections. However, the high costs of the drug, lack of insurance coverage, and production delays limited sales growth.

Spanish and French high-dividend stocks also gained. In Spain, the utilities sector benefited from its foreign operations, as strong profits from North and South America helped to offset a decline domestically. In France, the successful trial of a drug to treat pulmonary disease supported the pharmaceuticals industry in the healthcare sector.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector    
Percent of
Total Investments
 
(a) 

Financials

    25.7

Health Care

    15.9  

Consumer Staples

    12.7  

Industrials

    12.5  

Utilities

    8.8  

Materials

    7.0  

Information Technology

    6.7  

Communication Services

    3.1  

Consumer Discretionary

    2.8  

Energy

    2.8  

Real Estate

    2.0  
GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    
Percent of
Total Investments
 
(a) 

Canada

    19.5

Japan

    19.0  

Switzerland

    12.2  

United Kingdom

    11.9  

China

    6.1  

Germany

    5.9  

France

    4.4  

Denmark

    3.6  

Spain

    2.7  

Hong Kong

    2.5  

India

    2.1  

Australia

    2.1  

Ireland

    1.2  

Netherlands

    1.1  

Other (each representing less than 1%)

    5.7  

 

  (a) 

Excludes money market funds.

 

 

 

22  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary as of March 31, 2023     iShares® Latin America 40 ETF

 

Investment Objective

The iShares Latin America 40 ETF (the “Fund”) seeks to track the investment results of an index composed of 40 of the largest Latin American equities, as represented by the S&P Latin America 40TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
 

 

 

      
      1 Year      5 Years      10 Years                1 Year      5 Years      10 Years  

Fund NAV

    (11.29 )%       (3.15 )%       (1.97)%          (11.29 )%       (14.80 )%       (18.07 )% 

Fund Market

    (11.43      (3.31      (1.97)             (11.43      (15.49      (18.07

Index

    (10.76      (2.85      (1.60)                   (10.76      (13.46      (14.87

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through January 30, 2013 is calculated using currency exchange (FX) rates corresponding to 5:15 P.M. ET. Index performance beginning on January 31, 2013 is calculated using FX rates corresponding to World Market Reuters 4:00 P.M. London.

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

Expense Example

 

Actual     Hypothetical 5% Return           

 

 

   

 

 

      
 

Beginning
Account Value
(10/01/22)
 
 
 
      

Ending
Account Value
(03/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
   

Beginning      
Account Value      
(10/01/22)      
 
 
 
   

Ending
Account Value
(03/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $        1,000.00          $      1,088.20          $        2.50       $      1,000.00             $      1,022.50          $        2.42          0.48

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  23


Fund Summary as of March 31, 2023  (continued)    iShares® Latin America 40 ETF

 

Portfolio Management Commentary

Large-capitalization Latin American stocks declined significantly for the reporting period amid high inflation and tighter monetary policy. Brazil was the largest detractor from the Index’s return, as economic growth in the country faltered. Rising borrowing costs weakened the Brazilian economy, which slowed before finally contracting in the fourth quarter of 2022. The central bank of Brazil raised interest rates multiple times in response to elevated inflation and prices fell substantially over the course of the reporting period. The Brazilian real declined relative to the U.S. dollar amid tightening U.S. monetary policy and fiscal concerns in Brazil, reducing the value of Brazilian stocks in U.S. dollar terms.

The Brazilian financials sector was a significant source of weakness, particularly the banking industry. The worsening economic environment in Brazil weakened bank profits, as consumers’ reduced purchasing power drove an increase in expenses from delinquent loans expected to go unpaid. Rising operating costs also dented earnings in the banking industry. Brazil’s materials sector also detracted, as the metals and mining industry faced volatile prices for iron ore and fines for safety practices related to a dam collapse. Furthermore, high rainfall and equipment maintenance needs led to a reduction in iron ore production late in 2022. The consumer staples sector also declined, as an oversupply of poultry and high costs weighed on profitability in the packaged foods and meats industry.

Colombian stocks also detracted from the Index’s performance in an environment of tepid economic growth. Equities in Colombia faced headwinds following a presidential election and a new administration perceived by some investors as less business friendly. The financials sector declined the most, as inflation rose during the reporting period, pressuring bank customers’ purchasing power and ability to repay loans.

On the upside, Mexican stocks contributed slightly to the Index’s performance. Despite slow economic growth, unemployment dropped to the lowest rate in 20 years, and inflation began to decelerate. The Mexican banking industry benefited from an influx of new customers relocating factories closer to the U.S.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector    
Percent of
Total Investments
 
(a) 

Financials

    29.3

Materials

    26.7  

Consumer Staples

    15.1  

Energy

    11.2  

Communication Services

    5.7  

Industrials

    5.5  

Utilities

    3.0  

Consumer Discretionary

    1.6  

Real Estate

    1.0  

Health Care

    0.9  
GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    
Percent of
Total Investments
 
(a) 

Brazil

    59.0

Mexico

    28.3  

Chile

    7.2  

Peru

    3.8  

Colombia

    1.7  

 

  (a)

Excludes money market funds.

 

 

 

24  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


About Fund Performance

 

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

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

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

Disclosure of Expenses

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

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

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

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

 

 

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

  25


Schedule of Investments  

March 31, 2023

  

iShares® Asia 50 ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
China — 40.9%            

Alibaba Group Holding Ltd.(a)

    10,500,000     $     132,987,613  

ANTA Sports Products Ltd.

    733,600       10,651,218  

Baidu Inc.(a)

    1,540,100       29,017,438  

Bank of China Ltd., Class H

    52,862,000       20,265,535  

BYD Co. Ltd., Class H

    589,500       17,340,821  

China Construction Bank Corp., Class H

    66,988,960       43,354,911  

China Merchants Bank Co. Ltd., Class H

    2,243,500       11,392,531  

Industrial & Commercial Bank of China Ltd., Class H

    48,395,115       25,719,058  

JD.com Inc., Class A

    1,633,500       35,669,421  

Kuaishou Technology(a)(b)

    1,319,600       10,146,820  

Li Ning Co. Ltd.

    1,593,000       12,527,205  

Meituan, Class B(a)(b)

    3,197,580       58,011,181  

NetEase Inc.

    1,244,000       21,960,168  

Ping An Insurance Group Co. of China Ltd., Class H

    4,203,500       27,193,334  

Tencent Holdings Ltd.

    4,088,400       199,797,222  

Wuxi Biologics Cayman Inc.(a)(b)

    2,419,500       14,908,857  

Xiaomi Corp., Class B(a)(b)

    9,803,000       15,086,326  
   

 

 

 
      686,029,659  
Hong Kong — 10.1%            

AIA Group Ltd.

    7,939,600       83,265,405  

CK Hutchison Holdings Ltd.

    1,825,148       11,291,547  

Hong Kong Exchanges & Clearing Ltd.

    795,300       35,251,430  

Link REIT

    1,725,460       11,095,106  

Sun Hung Kai Properties Ltd.

    1,025,500       14,366,841  

Techtronic Industries Co. Ltd.

    1,247,000       13,511,376  
   

 

 

 
      168,781,705  
Singapore — 4.8%            

DBS Group Holdings Ltd.

    1,241,900       30,875,790  

Oversea-Chinese Banking Corp. Ltd.

    2,748,374       25,619,742  

United Overseas Bank Ltd.

    1,047,200       23,487,690  
   

 

 

 
      79,983,222  
South Korea — 20.4%            

Celltrion Inc.

    73,060       8,444,871  

Hyundai Motor Co.

    95,728       13,619,467  

Kakao Corp.

    212,251       10,051,953  

KB Financial Group Inc.

    260,683       9,520,713  

Kia Corp.

    182,945       11,417,240  

LG Chem Ltd.

    32,157       17,660,417  

LG Energy Solution(a)

    28,546       12,861,478  

NAVER Corp.

    101,405       15,889,244  

POSCO Holdings Inc.

    50,030       14,154,545  

Samsung Electronics Co. Ltd.

    3,485,719       172,372,139  

Samsung SDI Co. Ltd.

    37,423       21,257,711  

Shinhan Financial Group Co. Ltd.

    345,068       9,373,881  

SK Hynix Inc.

    366,508       25,081,944  
   

 

 

 
      341,705,603  
Security   Shares     Value  
Taiwan — 21.8%            

Cathay Financial Holding Co. Ltd.

    6,465,235     $ 8,901,640  

Chunghwa Telecom Co. Ltd.

    2,580,551       10,143,876  

CTBC Financial Holding Co. Ltd.

    13,292,359       9,572,231  

Delta Electronics Inc.

    1,305,000       12,947,735  

Formosa Plastics Corp.

    2,951,071       8,909,300  

Fubon Financial Holding Co. Ltd.

    5,364,600       9,984,084  

Hon Hai Precision Industry Co. Ltd.

    8,180,052       28,000,273  

MediaTek Inc.

    1,085,112       28,132,739  

Nan Ya Plastics Corp.

    3,846,510       9,798,262  

Taiwan Semiconductor Manufacturing Co. Ltd.

    12,852,343       225,232,246  

United Microelectronics Corp.

    7,884,000       13,796,460  
   

 

 

 
      365,418,846  
   

 

 

 

Total Common Stocks — 98.0%
(Cost: $1,680,822,164)

        1,641,919,035  
   

 

 

 

Preferred Stocks

   
South Korea — 1.6%            

Hyundai Motor Co., Series 2, Preference Shares, NVS

    24,550       1,813,440  

LG Chem Ltd., Preference Shares, NVS

    5,173       1,239,478  

Samsung Electronics Co. Ltd., Preference Shares, NVS.

    559,778       23,294,938  
   

 

 

 
      26,347,856  
   

 

 

 

Total Preferred Stocks — 1.6%
(Cost: $9,894,202)

      26,347,856  
   

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $1,690,716,366)

      1,668,266,891  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.0%            

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(c)(d)

    700,000       700,000  
   

 

 

 

Total Short-Term Securities — 0.0%
(Cost: $700,000)

      700,000  
   

 

 

 

Total Investments — 99.6%
(Cost: $1,691,416,366)

      1,668,966,891  

Other Assets Less Liabilities — 0.4%

      6,557,662  
   

 

 

 

Net Assets — 100.0%

    $ 1,675,524,553  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

 

 

26  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Asia 50 ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
03/31/22
     Purchases
at Cost
    Proceeds
from Sale
     Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
     Value at
03/31/23
     Shares
Held at
03/31/23
     Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares(a)

  $       $ 3,438 (b)    $      $ (3,438   $      $             $ 10,844 (c)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

           700,000 (b)                          700,000        700,000        33,046        
         

 

 

   

 

 

    

 

 

       

 

 

   

 

 

 
          $ (3,438   $      $ 700,000         $ 43,890     $  
         

 

 

   

 

 

    

 

 

       

 

 

   

 

 

 

 

  (a) 

As of period end, the entity is no longer held.

 
  (b) 

Represents net amount purchased (sold).

 
  (c) 

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

          

FTSE Taiwan Index

    35        04/27/23      $ 1,948      $ 2,223  

MSCI China Index

    130        06/16/23        3,293        127,253  

MSCI Emerging Markets Index

    30        06/16/23        1,493        47,090  
          

 

 

 
           $ 176,566  
          

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

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

 

 

Assets — Derivative Financial Instruments

                   

Futures contracts

                   

Unrealized appreciation on futures contracts(a)

  $      $      $ 176,566      $      $      $      $ 176,566  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

For the period ended March 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

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

 

 

Net Realized Gain (Loss) from

                  

Futures contracts

  $      $      $ (556,346   $      $      $      $ (556,346
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                  

Futures contracts

  $      $      $ (63,530   $      $      $      $ (63,530
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

 

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

  27


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Asia 50 ETF

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts

    

Average notional value of contracts — long

     $ 6,913,361  

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  

 

 

Assets

          

Investments

          

Long-Term Investments

          

Common Stocks

  $      $ 1,641,919,035      $      $ 1,641,919,035  

Preferred Stocks

           26,347,856               26,347,856  

Short-Term Securities

          

Money Market Funds

    700,000                      700,000  
 

 

 

    

 

 

    

 

 

    

 

 

 
  $             700,000      $ 1,668,266,891      $                   —      $ 1,668,966,891  
 

 

 

    

 

 

    

 

 

    

 

 

 

Derivative Financial Instruments(a)

          

Assets

          

Equity Contracts

  $ 47,090      $ 129,476      $      $ 176,566  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  

March 31, 2023

  

iShares® Blockchain and Tech ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Capital Markets — 18.0%            

Allfunds Group PLC

    5,971     $ 39,570  

Bakkt Holdings Inc.(a)(b)

    102,362       176,063  

Coinbase Global Inc., Class A(a)(b)

    10,877       734,959  

Galaxy Digital Holdings Ltd.(a)

    24,446       93,334  

Robinhood Markets Inc., Class A(a)

    6,257       60,756  

SBI Holdings Inc.

    3,500       69,509  

Voyager Digital Ltd.(a)

    57,043       1,426  
   

 

 

 
        1,175,617  
Financial Services — 12.9%  

Block Inc. New(a)

    8,675       595,539  

Lakala Payment Co. Ltd., Class A(a)

    6,200       16,956  

PayPal Holdings Inc.(a)

    3,066       232,832  
   

 

 

 
      845,327  
Insurance — 3.3%  

Ping An Insurance Group Co. of China Ltd., Class A

    32,100       212,614  
   

 

 

 
Interactive Media & Services — 1.4%  

Z Holdings Corp.

    32,900       93,286  
   

 

 

 
IT Services — 7.2%  

Digital Garage Inc.

    500       16,517  

DXC Technology Co.(a)

    3,280       83,837  

GMO internet group Inc.

    900       17,542  

International Business Machines Corp.

    1,804       236,486  

NTT Data Corp.

    8,600       113,060  
   

 

 

 
      467,442  
Broadline Retail — 1.4%  

GoTo Gojek Tokopedia Tbk PT(a)

    12,556,000       91,408  
   

 

 

 
Professional Services — 3.8%  

Wolters Kluwer NV

    1,993       251,589  
   

 

 

 
Semiconductors & Semiconductor Equipment — 9.7%  

Advanced Micro Devices Inc.(a)

    2,869       281,191  

Ambarella Inc.(a)

    530       41,032  

Amlogic Shanghai Co. Ltd.(a)

    3,101       37,921  

Nvidia Corp.

    979       271,937  
   

 

 

 
      632,081  
Security   Shares     Value  

 

 

Software — 38.8%

   

Applied Blockchain Inc., NVS(a)

    22,747     $ 50,953  

Bit Digital Inc.(a)(b)

    53,215       81,951  

Bitfarms Ltd/Canada(a)(b)

    122,295       118,626  

Cleanspark Inc.(a)

    103,187       286,860  

Hive Blockchain Technologies Ltd.(a)(b)

    35,373       116,377  

Hut 8 Mining Corp.(a)(b)

    168,672       312,043  

Iris Energy Ltd.(a)

    20,449       62,574  

Marathon Digital Holdings Inc.(a)(b)

    41,243       359,639  

Riot Blockchain Inc.(a)(b)

    110,674       1,105,633  

Shenzhen Kingdom Sci-Tech Co. Ltd., Class A

    8,800       18,037  

YGSOFT Inc.

    15,400       21,022  
   

 

 

 
      2,533,715  
Technology Hardware, Storage & Peripherals — 3.0%  

Canaan Inc., ADR(a)(b)

    62,001       167,403  

GRG Banking Equipment Co. Ltd., Class A

    15,100       26,933  
   

 

 

 
      194,336  
   

 

 

 

Total Long-Term Investments — 99.5%
(Cost: $5,826,031)

      6,497,415  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 34.9%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(c)(d)(e)

    2,274,156       2,274,838  
   

 

 

 

Total Short-Term Securities — 34.9%
(Cost: $2,274,707)

      2,274,838  
   

 

 

 

Total Investments — 134.4%
(Cost: $8,100,738)

      8,772,253  
   

 

 

 

Liabilities in Excess of Other Assets — (34.4)%

 

    (2,242,868
   

 

 

 

Net Assets — 100.0%

    $ 6,529,385  
   

 

 

 

 

(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 period ended March 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    
Value at
04/25/22
 
(a) 
   
Purchases
at Cost
 
 
   
Proceeds
from Sale
 
 
    
Net Realized
Gain (Loss)
 
 
    


Change in
Unrealized
Appreciation
(Depreciation)
 
 
 
 
    
Value at
03/31/23
 
 
    


Shares

Held at
03/31/23

 


 

     Income      




Capital

Gain

Distributions
from
Underlying
Funds

 

 


 
 
 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $     $ 2,274,571 (b)    $      $ 136      $ 131      $ 2,274,838        2,274,156      $ 86,813 (c)    $  

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

          0 (b)                                          206        
        

 

 

    

 

 

    

 

 

       

 

 

   

 

 

 
         $ 136      $ 131      $ 2,274,838         $ 87,019     $  
        

 

 

    

 

 

    

 

 

       

 

 

   

 

 

 

 

  (a) 

Commencement of operations.

 
  (b) 

Represents net amount purchased (sold).

 

 

 

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

  29


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Blockchain and Tech ETF

 

  (c) 

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.

 
  (d) 

As of period end, the entity is no longer held.

 

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

       

Micro E-Mini Russell 2000 Index

    2       06/16/23     $ 18     $ 750  
       

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

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

 

 

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 750      $      $      $      $ 750  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

For the period ended March 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

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

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ (1,154    $      $      $      $ (1,154
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 750      $      $      $      $ 750  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments    

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 6,747      

 

 

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  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 5,470,025        $ 1,027,390        $        $ 6,497,415  

 

 

30  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Blockchain and Tech ETF

 

Fair Value Hierarchy as of Period End (continued)

 

 

 
     Level 1        Level 2                Level 3        Total  

 

 

Short-Term Securities

                 

Money Market Funds

   $ 2,274,838        $        $        $ 2,274,838  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 7,744,863        $ 1,027,390        $        $ 8,772,253  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $ 750        $        $        $ 750  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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


Schedule of Investments  

March 31, 2023

  

iShares® Emerging Markets Infrastructure ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Brazil — 17.2%            

CCR SA

    279,027     $ 704,662  

Centrais Eletricas Brasileiras SA, ADR

    258,634       1,714,744  

Cia. de Saneamento Basico do Estado de Sao Paulo, ADR

    69,417       694,864  

Ultrapar Participacoes SA, ADR

    287,621       785,205  
   

 

 

 
          3,899,475  
China — 39.6%            

Beijing Capital International Airport Co. Ltd., Class H(a)

    420,000       309,325  

CGN Power Co. Ltd., Class H(b)

    2,268,000       542,992  

China Gas Holdings Ltd.

    605,600       852,645  

China Longyuan Power Group Corp. Ltd., Class H

    674,000       768,908  

China Merchants Port Holdings Co. Ltd.

    342,000       525,035  

China Oilfield Services Ltd., Class H

    718,000       738,100  

China Power International Development Ltd.

    1,008,000       401,389  

China Resources Gas Group Ltd.

    183,500       674,988  

China Resources Power Holdings Co. Ltd.

    364,000       776,629  

China Suntien Green Energy Corp. Ltd., Class H

    735,000       321,498  

COSCO SHIPPING Energy Transportation Co. Ltd., Class H(a)(c)

    514,000       531,502  

COSCO SHIPPING Ports Ltd.

    424,000       283,519  

Guangdong Investment Ltd.

    570,000       583,095  

Jiangsu Expressway Co. Ltd., Class H

    310,000       288,291  

Kunlun Energy Co. Ltd.

    814,000       635,513  

Shenzhen Expressway Co. Ltd., Class H

    148,000       131,490  

Shenzhen International Holdings Ltd.

    346,999       307,029  

Zhejiang Expressway Co. Ltd., Class H

    346,000       275,278  
   

 

 

 
      8,947,226  
Mexico — 17.6%            

Grupo Aeroportuario del Centro Norte SAB de CV, ADR

    8,533       763,789  

Grupo Aeroportuario del Pacifico SAB de CV, ADR

    9,081       1,771,794  

Grupo Aeroportuario del Sureste SAB de CV, ADR

    4,721       1,446,845  
   

 

 

 
      3,982,428  
Qatar — 4.5%            

Qatar Gas Transport Co. Ltd.

    1,076,310       1,016,503  
   

 

 

 
South Korea — 3.3%            

Korea Electric Power Corp., ADR(a)(c)

    104,315       723,946  

SK Gas Ltd.

    254       23,224  
   

 

 

 
      747,170  
Thailand — 9.8%            

Airports of Thailand PCL, NVDR(a)

    1,062,900       2,208,828  
   

 

 

 
Security   Shares      Value  

 

 
United Arab Emirates — 4.8%             

ADNOC Drilling Co. PJSC

    1,015,219      $ 1,091,930  
    

 

 

 

Total Common Stocks — 96.8%
(Cost: $19,374,816)

       21,893,560  
    

 

 

 

Preferred Stocks

    
Brazil — 3.0%             

Cia. Energetica de Minas Gerais, Preference Shares, ADR

    297,674        666,790  
    

 

 

 
Russia — 0.0%             

Transneft PJSC, Preference Shares, NVS(d)

    640         
    

 

 

 

Total Preferred Stocks — 3.0%
(Cost: $1,998,115)

 

     666,790  
    

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $21,372,931)

 

     22,560,350  
    

 

 

 

Short-Term Securities

    
Money Market Funds — 4.4%             

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(e)(f)(g)

    950,719        951,005  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(e)(f)

    40,000        40,000  
    

 

 

 

Total Short-Term Securities — 4.4%
(Cost: $990,976)

       991,005  
    

 

 

 

Total Investments — 104.2%
(Cost: $22,363,907)

       23,551,355  

Liabilities in Excess of Other Assets — (4.2)%

 

     (938,471
    

 

 

 

Net Assets — 100.0%

     $  22,612,884  
    

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

All or a portion of this security is on loan.

(d) 

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

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

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

 

 

32  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Emerging Markets Infrastructure ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   

Value at

03/31/22

    

Purchases

at Cost

    

Proceeds

from Sale

    

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

03/31/23

    

Shares

Held at

03/31/23

     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 1,224,889      $      $ (274,225 )(a)     $ (205    $ 546      $ 951,005        950,719      $ 15,180 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     30,000        10,000 (a)                            40,000        40,000        824         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ (205    $ 546      $ 991,005         $ 16,004      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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

           

MSCI Emerging Markets Index

     1        06/16/23      $ 50      $ 1,985  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

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

 

 

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 1,985      $      $      $      $ 1,985  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

For the period ended March 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ (15,567    $      $      $      $ (15,567
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (1,832    $      $      $      $ (1,832
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 121,426  

 

 

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

 

 

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

  33


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Emerging Markets Infrastructure ETF

 

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Assets

           

Investments

           

Long-Term Investments

           

Common Stocks

   $ 9,697,779      $ 12,195,781      $      $ 21,893,560  

Preferred Stocks

     666,790                      666,790  

Short-Term Securities

           

Money Market Funds

     991,005                      991,005  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 11,355,574      $  12,195,781      $      $ 23,551,355  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative Financial Instruments(a)

           

Assets

           

Equity Contracts

   $ 1,985      $      $             —      $ 1,985  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

34  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  

March 31, 2023

  

iShares® Europe ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Austria — 0.2%

   

Erste Group Bank AG

    64,807     $ 2,147,013  

OMV AG

    25,778       1,183,806  

Verbund AG

    5,695       495,367  
   

 

 

 
      3,826,186  
Belgium — 1.5%            

Ageas SA/NV

    32,323       1,398,238  

Anheuser-Busch InBev SA/NV

    181,030       12,067,430  

Argenx SE(a)

    10,095       3,748,833  

Groupe Bruxelles Lambert NV

    18,127       1,546,959  

KBC Group NV

    61,767       4,244,058  

Solvay SA

    13,711       1,568,075  

UCB SA

    22,736       2,032,055  

Umicore SA

    37,759       1,280,832  
   

 

 

 
          27,886,480  
Denmark — 4.6%            

AP Moller - Maersk A/S, Class A

    625       1,108,778  

AP Moller - Maersk A/S, Class B, NVS

    1,032       1,875,876  

Carlsberg AS, Class B

    17,780       2,758,867  

Chr Hansen Holding A/S

    18,883       1,436,437  

Coloplast A/S, Class B

    21,675       2,853,887  

Danske Bank A/S(a)

    123,782       2,490,344  

DSV A/S

    32,863       6,372,051  

Genmab A/S(a)

    11,931       4,509,981  

GN Store Nord A/S(a)

    24,533       550,096  

Novo Nordisk A/S, Class B

    299,747       47,606,196  

Novozymes A/S, Class B

    38,149       1,953,349  

Orsted AS(b)

    34,770       2,964,766  

Pandora A/S

    17,533       1,682,960  

Tryg A/S

    65,891       1,440,744  

Vestas Wind Systems A/S

    183,871       5,358,812  
   

 

 

 
      84,963,144  
Finland — 1.5%            

Elisa OYJ

    27,490       1,657,960  

Fortum OYJ

    79,480       1,217,516  

Kesko OYJ, Class B

    52,088       1,119,439  

Kone OYJ, Class B

    72,232       3,767,189  

Metso Outotec OYJ

    128,064       1,398,379  

Neste OYJ

    78,857       3,895,841  

Nokia OYJ

    982,745       4,824,182  

Sampo OYJ, Class A

    89,988       4,246,095  

Stora Enso OYJ, Class R

    113,331       1,474,422  

UPM-Kymmene OYJ

    97,441       3,272,845  

Wartsila OYJ Abp

    87,830       828,875  
   

 

 

 
      27,702,743  
France — 18.3%            

Accor SA(a)

    32,370       1,052,383  

Air Liquide SA

    95,826       16,040,178  

Airbus SE

    112,181       14,983,731  

Alstom SA

    56,450       1,536,924  

ArcelorMittal SA

    105,362       3,192,077  

Arkema SA

    12,110       1,195,703  

AXA SA

    365,814       11,163,755  

BNP Paribas SA

    206,832       12,351,495  

Bouygues SA

    38,166       1,287,189  

Bureau Veritas SA

    53,642       1,541,267  

Capgemini SE

    28,604       5,315,635  

Carrefour SA

    108,565       2,194,922  
Security   Shares     Value  

France (continued)

   

Cie. de Saint-Gobain

    93,854     $ 5,334,996  

Cie. Generale des Etablissements Michelin SCA

    129,472       3,957,735  

Credit Agricole SA

    248,274       2,800,828  

Danone SA

    115,670       7,197,404  

Dassault Systemes SE

    126,330       5,211,243  

Edenred

    45,558       2,696,337  

Eiffage SA

    14,411       1,559,500  

Engie SA

    338,159       5,351,261  

EssilorLuxottica SA

    55,539       10,014,946  

Eurofins Scientific SE

    24,206       1,620,826  

Euronext NV(b)

    17,807       1,363,568  

Gecina SA

    10,159       1,054,509  

Getlink SE

    73,310       1,207,388  

Hermes International

    6,406       12,973,788  

Kering SA

    13,179       8,598,343  

Legrand SA

    48,723       4,451,933  

L’Oreal SA

    46,123       20,609,723  

LVMH Moet Hennessy Louis Vuitton SE

    47,762       43,841,136  

Orange SA

    345,190       4,100,917  

Pernod Ricard SA

    37,100       8,400,585  

Publicis Groupe SA

    42,726       3,335,183  

Renault SA(a)

    38,009       1,549,101  

Safran SA

    63,787       9,442,810  

Sanofi

    210,748       22,861,672  

Sartorius Stedim Biotech

    4,407       1,352,046  

Schneider Electric SE

    104,537       17,470,618  

Societe Generale SA

    144,098       3,246,722  

Sodexo SA

    15,022       1,467,207  

Teleperformance

    10,879       2,628,738  

Thales SA

    19,419       2,871,035  

TotalEnergies SE

    427,847       25,227,430  

Unibail-Rodamco-Westfield(a)

    19,006       1,022,637  

Valeo

    40,838       837,986  

Veolia Environnement SA

    122,953       3,793,982  

Vinci SA

    97,454       11,172,353  

Vivendi SE

    145,408       1,470,300  

Worldline SA/France(a)(b)

    46,823       1,989,908  
   

 

 

 
          335,941,953  
Germany — 12.1%            

adidas AG

    32,683       5,793,796  

Allianz SE, Registered

    74,691       17,241,375  

Aroundtown SA(c)

    174,323       249,202  

BASF SE

    167,758       8,807,069  

Bayer AG, Registered

    179,569       11,471,156  

Bayerische Motoren Werke AG

    58,079       6,365,377  

Beiersdorf AG

    17,897       2,328,173  

Brenntag SE

    28,106       2,115,150  

Commerzbank AG(a)

    192,813       2,029,981  

Continental AG

    19,347       1,449,659  

Covestro AG(b)

    34,605       1,433,107  

Daimler Truck Holding AG(a)

    93,176       3,144,598  

Delivery Hero SE(a)(b)

    36,112       1,231,957  

Deutsche Bank AG, Registered

    378,122       3,845,197  

Deutsche Boerse AG

    34,593       6,735,604  

Deutsche Post AG, Registered

    180,624       8,459,640  

Deutsche Telekom AG, Registered

    638,724       15,477,748  

E.ON SE

    410,821       5,124,876  

Fresenius Medical Care AG & Co. KGaA

    36,203       1,536,608  

Fresenius SE & Co. KGaA

    74,551       2,013,118  

GEA Group AG

    30,095       1,372,860  

 

 

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

  35


Schedule of Investments   (continued)

March 31, 2023

  

iShares® Europe ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Germany (continued)            

Hannover Rueck SE

    10,848     $ 2,121,656  

HeidelbergCement AG

    26,408       1,928,237  

HelloFresh SE(a)

    31,214       744,370  

Henkel AG & Co. KGaA

    17,544       1,276,269  

Infineon Technologies AG

    238,914       9,811,044  

LEG Immobilien SE

    13,506       742,236  

Mercedes-Benz Group AG

    142,637       10,969,178  

Merck KGaA

    23,593       4,398,556  

MTU Aero Engines AG

    9,893       2,475,622  

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered

    25,627       8,960,108  

Puma SE

    18,550       1,149,959  

QIAGEN NV(a)

    42,514       1,936,363  

Rheinmetall AG

    7,928       2,348,670  

RWE AG

    123,173       5,299,931  

SAP SE

    199,683       25,214,064  

Siemens AG, Registered

    136,906       22,179,305  

Siemens Energy AG(a)

    74,531       1,643,518  

Siemens Healthineers AG(b)

    50,503       2,911,598  

Symrise AG

    23,929       2,604,047  

Volkswagen AG

    5,321       912,685  

Vonovia SE

    145,649       2,743,271  

Zalando SE(a)(b)

    41,702       1,747,753  
   

 

 

 
      222,344,691  
Ireland — 1.2%            

Bank of Ireland Group PLC

    181,718       1,838,677  

CRH PLC

    139,739       7,059,653  

Flutter Entertainment PLC, Class DI(a)

    27,945       5,085,188  

Kerry Group PLC, Class A

    27,719       2,764,285  

Kingspan Group PLC

    28,044       1,921,723  

Ryanair Holdings PLC, ADR(a)(c)

    18,116       1,708,158  

Smurfit Kappa Group PLC

    48,659       1,764,865  
   

 

 

 
      22,142,549  
Italy — 3.6%            

Assicurazioni Generali SpA

    218,737       4,358,246  

CNH Industrial NV

    182,906       2,798,675  

Enel SpA

    1,402,250       8,552,248  

Eni SpA

    457,509       6,380,587  

Ferrari NV

    23,304       6,315,002  

FinecoBank Banca Fineco SpA

    112,146       1,718,200  

Intesa Sanpaolo SpA

    3,178,590       8,157,663  

Mediobanca Banca di Credito Finanziario SpA

    119,470       1,200,545  

Moncler SpA

    38,097       2,631,416  

Nexi SpA(a)(b)

    153,177       1,244,891  

Prysmian SpA

    49,145       2,063,634  

Snam SpA

    367,044       1,946,080  

Stellantis NV

    393,967       7,164,791  

Telecom Italia SpA/Milano(a)

    1,964,435       647,838  

Tenaris SA

    83,155       1,178,239  

Terna - Rete Elettrica Nazionale

    255,669       2,098,374  

UniCredit SpA

    354,420       6,680,057  
   

 

 

 
      65,136,486  
Netherlands — 7.1%            

ABN AMRO Bank NV, CVA(b)

    75,343       1,194,748  

Adyen NV(a)(b)

    5,678       9,047,483  

Aegon NV

    252,744       1,085,070  

Akzo Nobel NV

    33,424       2,614,245  

ASM International NV

    8,343       3,386,430  

ASML Holding NV

    74,129       50,515,056  
Security   Shares     Value  

Netherlands (continued)

   

EXOR NV, NVS(a)

    21,585     $ 1,779,889  

Heineken Holding NV

    19,912       1,826,888  

Heineken NV

    42,863       4,605,662  

IMCD NV

    10,622       1,736,864  

ING Groep NV

    689,568       8,188,851  

Koninklijke Ahold Delhaize NV

    181,994       6,217,845  

Koninklijke DSM NV

    31,933       3,779,089  

Koninklijke KPN NV

    585,255       2,068,038  

Koninklijke Philips NV

    164,275       3,017,219  

NN Group NV

    57,362       2,082,808  

Prosus NV

    211,611       16,569,988  

Randstad NV

    22,933       1,361,410  

Universal Music Group NV

    138,671       3,511,807  

Wolters Kluwer NV

    47,034       5,937,405  
   

 

 

 
      130,526,795  
Norway — 0.9%            

Aker BP ASA

    55,535       1,361,997  

DNB Bank ASA

    163,170       2,920,048  

Equinor ASA

    190,796       5,424,024  

Mowi ASA

    83,508       1,544,563  

Norsk Hydro ASA

    250,755       1,871,490  

Orkla ASA

    141,760       1,005,434  

Telenor ASA

    115,568       1,355,054  

Yara International ASA

    30,399       1,321,158  
   

 

 

 
      16,803,768  
Portugal — 0.2%            

EDP - Energias de Portugal SA

    563,289       3,069,313  

Galp Energia SGPS SA

    82,488       933,374  
   

 

 

 
      4,002,687  
Singapore — 0.4%            

STMicroelectronics NV , New

    119,703       6,374,482  
   

 

 

 
Spain — 3.9%            

ACS Actividades de Construccion y Servicios SA

    41,276       1,314,629  

Aena SME SA(a)(b)

    13,363       2,160,908  

Amadeus IT Group SA(a)

    82,274       5,519,229  

Banco Bilbao Vizcaya Argentaria SA

    1,097,935       7,849,531  

Banco Santander SA

    3,044,111       11,343,817  

CaixaBank SA

    779,532       3,041,696  

Cellnex Telecom SA(b)

    108,605       4,223,391  

Enagas SA

    40,348       775,315  

Endesa SA

    58,071       1,261,290  

Ferrovial SA

    92,513       2,724,265  

Grifols SA(a)

    54,312       537,594  

Iberdrola SA

    1,073,008       13,367,317  

Industria de Diseno Textil SA

    204,171       6,859,164  

Naturgy Energy Group SA

    35,572       1,070,842  

Red Electrica Corp. SA

    72,128       1,269,186  

Repsol SA

    242,622       3,731,007  

Telefonica SA

    1,051,529       4,528,738  
   

 

 

 
      71,577,919  
Sweden — 4.7%            

Alfa Laval AB

    54,932       1,961,462  

Assa Abloy AB, Class B

    181,263       4,341,697  

Atlas Copco AB, Class A

    463,005       5,865,507  

Atlas Copco AB, Class B

    286,155       3,291,566  

Boliden AB

    49,685       1,951,835  

Electrolux AB, Class B(c)

    44,040       535,280  

Embracer Group AB(a)(c)

    147,287       690,385  

 

 

36  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments   (continued)

March 31, 2023

  

iShares® Europe ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Sweden (continued)

   

Epiroc AB, Class A

    115,049     $ 2,283,724  

Epiroc AB, Class B

    71,238       1,214,640  

EQT AB

    60,412       1,234,059  

Essity AB, Class B

    111,165       3,175,305  

Evolution AB(b)

    35,231       4,720,191  

Getinge AB, Class B

    39,054       952,460  

H & M Hennes & Mauritz AB, Class B(c)

    133,524       1,909,064  

Hexagon AB, Class B

    387,433       4,459,124  

Industrivarden AB, Class A

    32,830       887,314  

Industrivarden AB, Class C

    30,617       825,567  

Investor AB, Class B

    331,604       6,605,745  

Kinnevik AB, Class B(a)

    42,449       634,735  

Nibe Industrier AB, Class B

    275,730       3,143,080  

Nordea Bank Abp

    604,153       6,451,321  

Sandvik AB

    197,657       4,195,426  

Skandinaviska Enskilda Banken AB, Class A

    306,005       3,377,763  

Skanska AB, Class B

    72,354       1,108,223  

SKF AB, Class B

    68,630       1,351,798  

Svenska Cellulosa AB SCA, Class B

    111,058       1,462,693  

Svenska Handelsbanken AB, Class A

    278,640       2,413,261  

Swedbank AB, Class A

    169,322       2,784,435  

Tele2 AB, Class B

    99,501       990,340  

Telefonaktiebolaget LM Ericsson, Class B

    564,687       3,310,095  

Telia Co. AB

    443,963       1,127,338  

Volvo AB, Class B

    289,047       5,956,287  
   

 

 

 
      85,211,720  
Switzerland — 15.4%            

ABB Ltd., Registered

    312,113       10,737,156  

Adecco Group AG, Registered

    30,614       1,115,116  

Alcon Inc.

    91,677       6,507,920  

Baloise Holding AG, Registered

    8,190       1,275,316  

Barry Callebaut AG, Registered

    722       1,529,751  

Chocoladefabriken Lindt & Spruengli AG, Participation Certificates, NVS

    211       2,492,045  

Chocoladefabriken Lindt & Spruengli AG, Registered

    20       2,368,722  

Cie. Financiere Richemont SA, Class A, Registered

    95,540       15,320,417  

Credit Suisse Group AG, Registered(c)

    694,896       624,033  

Geberit AG, Registered

    6,608       3,690,218  

Givaudan SA, Registered

    1,469       4,781,283  

Holcim AG

    103,544       6,677,687  

Julius Baer Group Ltd.

    39,159       2,674,890  

Kuehne + Nagel International AG, Registered

    10,212       3,041,491  

Logitech International SA, Registered

    30,974       1,807,845  

Lonza Group AG, Registered

    13,657       8,221,506  

Nestle SA, Registered

    503,217       61,357,502  

Novartis AG, Registered

    439,877       40,388,854  

Partners Group Holding AG

    4,159       3,916,623  

Roche Holding AG, Bearer

    4,916       1,477,212  

Roche Holding AG, NVS

    128,586       36,742,480  

Schindler Holding AG, Participation Certificates, NVS

    7,549       1,672,691  

Schindler Holding AG, Registered

    3,963       838,644  

SGS SA, Registered

    1,148       2,532,199  

SIG Group AG(a)

    63,520       1,636,477  

Sika AG, Registered

    27,823       7,804,224  

Sonova Holding AG, Registered

    9,493       2,800,326  

Straumann Holding AG

    21,578       3,236,367  

Swatch Group AG (The), Bearer

    5,232       1,801,852  

Swatch Group AG (The), Registered

    9,845       624,237  

Swiss Life Holding AG, Registered

    5,701       3,518,124  

Swiss Prime Site AG, Registered

    13,932       1,158,552  
Security   Shares     Value  

Switzerland (continued)

   

Swiss Re AG

    52,707     $ 5,414,771  

Swisscom AG, Registered

    4,695       2,996,216  

Temenos AG, Registered

    11,872       826,126  

UBS Group AG, Registered

    641,748       13,579,894  

VAT Group AG(b)

    5,087       1,837,850  

Zurich Insurance Group AG

    27,393       13,126,688  
   

 

 

 
      282,153,305  
United Kingdom — 23.3%            

3i Group PLC

    179,872       3,749,158  

abrdn PLC

    416,818       1,049,076  

Admiral Group PLC

    51,737       1,299,163  

Anglo American PLC

    243,684       8,105,293  

Antofagasta PLC

    62,898       1,232,013  

Ashtead Group PLC

    81,754       5,020,092  

Associated British Foods PLC

    65,209       1,564,878  

AstraZeneca PLC

    283,543       39,286,093  

Auto Trader Group PLC(b)

    173,540       1,323,709  

Aviva PLC

    510,454       2,549,786  

BAE Systems PLC

    559,496       6,767,732  

Barclays PLC

    2,742,571       4,936,365  

Barratt Developments PLC

    183,435       1,055,628  

Berkeley Group Holdings PLC

    20,498       1,061,959  

BP PLC

    3,400,048       21,490,067  

British American Tobacco PLC

    407,030       14,268,180  

British Land Co. PLC (The)

    171,132       820,863  

BT Group PLC

    1,303,597       2,348,204  

Bunzl PLC(c)

    61,027       2,305,146  

Burberry Group PLC

    72,513       2,321,852  

Centrica PLC

    1,153,423       1,510,561  

Compass Group PLC

    323,490       8,129,801  

Croda International PLC

    25,916       2,082,959  

DCC PLC

    18,618       1,085,266  

Diageo PLC

    426,642       19,040,872  

Direct Line Insurance Group PLC

    252,174       428,384  

DS Smith PLC

    249,690       972,123  

Entain PLC

    105,045       1,631,360  

Experian PLC

    176,033       5,796,362  

Glencore PLC

    2,204,309       12,684,068  

GSK PLC

    729,639       12,892,220  

Haleon PLC

    926,556       3,680,680  

Halma PLC

    70,147       1,936,511  

Hargreaves Lansdown PLC

    63,759       631,626  

HSBC Holdings PLC

    3,645,503       24,776,641  

IMI PLC

    52,958       1,002,431  

Imperial Brands PLC

    175,808       4,042,819  

Informa PLC

    274,916       2,356,430  

InterContinental Hotels Group PLC

    34,551       2,261,903  

Intermediate Capital Group PLC

    52,507       792,539  

Intertek Group PLC

    29,490       1,476,997  

J Sainsbury PLC

    310,001       1,066,770  

Johnson Matthey PLC

    35,826       878,322  

Kingfisher PLC(c)

    373,044       1,205,866  

Land Securities Group PLC

    138,467       1,062,948  

Legal & General Group PLC

    1,088,897       3,220,526  

Lloyds Banking Group PLC

    12,248,185       7,201,284  

London Stock Exchange Group PLC

    69,418       6,742,547  

M&G PLC

    472,360       1,157,769  

Marks & Spencer Group PLC(a)

    357,343       737,192  

Melrose Industries PLC

    761,279       1,567,894  

Mondi PLC

    88,353       1,402,781  

 

 

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

  37


Schedule of Investments   (continued)

March 31, 2023

  

iShares® Europe ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United Kingdom (continued)            

National Grid PLC

    707,948     $ 9,576,411  

NatWest Group PLC, NVS

    927,782       3,027,375  

Next PLC

    23,469       1,907,555  

Ocado Group PLC(a)

    128,835       853,068  

Pearson PLC

    141,696       1,482,837  

Persimmon PLC

    57,069       886,151  

Phoenix Group Holdings PLC

    151,607       1,024,321  

Prudential PLC

    511,754       7,006,744  

Reckitt Benckiser Group PLC

    134,281       10,215,759  

RELX PLC

    361,462       11,706,632  

Rentokil Initial PLC

    450,972       3,295,947  

Rightmove PLC

    156,341       1,088,233  

Rio Tinto PLC

    194,287       13,187,792  

Rolls-Royce Holdings PLC(a)

    1,514,369       2,789,257  

Sage Group PLC (The)

    202,479       1,943,075  

Schroders PLC

    167,304       954,043  

Segro PLC

    224,342       2,137,035  

Severn Trent PLC

    46,475       1,650,928  

Shell PLC

    1,301,063       37,078,435  

Smith & Nephew PLC

    159,483       2,216,898  

Smiths Group PLC

    66,678       1,414,158  

Spirax-Sarco Engineering PLC

    13,184       1,935,711  

SSE PLC

    191,729       4,278,209  

St. James’s Place PLC

    101,320       1,520,353  

Standard Chartered PLC

    443,927       3,364,550  

Taylor Wimpey PLC

    661,893       973,758  

Tesco PLC

    1,363,948       4,471,607  

Unilever PLC

    481,112       24,930,740  

United Utilities Group PLC

    124,677       1,631,704  

Vodafone Group PLC

    4,866,020       5,367,691  

Weir Group PLC (The)

    47,692       1,094,123  

Whitbread PLC

    36,144       1,335,205  

WPP PLC

    195,749       2,325,676  
   

 

 

 
      426,683,690  
   

 

 

 

Total Common Stocks — 98.9%
(Cost: $1,850,444,149)

        1,813,278,598  
   

 

 

 

Preferred Stocks

   
Germany — 0.7%            

Bayerische Motoren Werke AG, Preference Shares, NVS

    11,424       1,167,742  
Security   Shares     Value  
Germany (continued)            

Henkel AG & Co. KGaA, Preference Shares, NVS

    32,633     $ 2,553,008  

Porsche Automobil Holding SE, Preference Shares, NVS

    27,811       1,596,546  

Sartorius AG, Preference Shares, NVS

    4,837       2,038,584  

Volkswagen AG, Preference Shares, NVS

    33,415       4,560,221  
   

 

 

 
      11,916,101  
Italy — 0.0%            

Telecom Italia SpA/Milano, Preference Shares, NVS(a)

    1,187,149       381,637  
   

 

 

 

Total Preferred Stocks — 0.7%
(Cost: $18,654,905)

      12,297,738  
   

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $1,869,099,054)

      1,825,576,336  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.3%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(d)(e)(f)

    3,783,531       3,784,666  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(d)(e)

    2,050,000       2,050,000  
   

 

 

 

Total Short-Term Securities — 0.3%
(Cost: $5,832,496)

      5,834,666  
   

 

 

 

Total Investments — 99.9%
(Cost: $1,874,931,550)

      1,831,411,002  

Other Assets Less Liabilities — 0.1%

      1,522,393  
   

 

 

 

Net Assets — 100.0%

    $   1,832,933,395  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

All or a portion of this security is on loan.

(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.

 

 

38  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Europe ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   

Value at

03/31/22

    

Purchases

at Cost

    

Proceeds

from Sale

    

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

03/31/23

    

Shares

Held at

03/31/23

     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 2,533,435      $ 1,235,973 (a)     $      $ 13,404      $ 1,854      $ 3,784,666        3,783,531      $ 69,366 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     2,630,000               (580,000 )(a)                     2,050,000        2,050,000        71,568        3  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ 13,404      $ 1,854      $ 5,834,666         $ 140,934      $ 3  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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

           

Euro STOXX 50 Index

     96        06/16/23      $ 4,444      $ 159,113  

FTSE 100 Index

     27        06/16/23        2,549        37,776  
           

 

 

 
            $ 196,889  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 196,889      $      $      $      $ 196,889  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

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

 

For the period ended March 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ 61,134      $      $      $      $ 61,134  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 32,693      $      $      $      $ 32,693  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

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

  39


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Europe ETF

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — long

   $ 4,587,437  

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  

 

 

Assets

           

Investments

           

Long-Term Investments

           

Common Stocks

   $ 1,708,158      $ 1,811,570,440      $      $ 1,813,278,598  

Preferred Stocks

            12,297,738               12,297,738  

Short-Term Securities

           

Money Market Funds

     5,834,666                      5,834,666  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 7,542,824      $ 1,823,868,178      $      $ 1,831,411,002  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative Financial Instruments(a)

           

Assets

           

Equity Contracts

   $      $ 196,889      $                  —      $ 196,889  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

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

 

See notes to financial statements.

 

 

40  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments

March 31, 2023

  

iShares® Future Metaverse Tech and Communications ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

 

Communications Equipment — 0.2%  

Arista Networks Inc.(a)

    56     $ 9,400  
   

 

 

 
Electronic Equipment, Instruments & Components — 0.1%  

TDK Corp.

    100       3,590  
   

 

 

 
Entertainment — 28.1%            

Activision Blizzard Inc.

    2,844       243,418  

Electronic Arts Inc.

    2,013       242,466  

Kakao Games Corp.(a)

    872       28,261  

NetEase Inc.

    13,600       240,079  

Nintendo Co. Ltd.

    6,000       233,049  

ROBLOX Corp., Class A(a)

    5,452       245,231  

Take-Two Interactive Software Inc.(a)

    1,940       231,442  

Ubisoft Entertainment SA(a)

    1,504       40,086  
   

 

 

 
          1,504,032  
Household Durables — 5.1%            

Garmin Ltd.

    376       37,946  

Sony Group Corp.

    2,600       236,817  
   

 

 

 
      274,763  
Interactive Media & Services — 13.4%            

Alphabet Inc., Class A(a)

    1,432       148,541  

Bumble Inc., Class A(a)

    75       1,466  

JOYY Inc., ADR

    8       250  

Match Group Inc.(a)

    136       5,221  

Meta Platforms Inc, Class A(a)

    1,300       275,522  

Snap Inc., Class A, NVS(a)

    2,276       25,514  

Tencent Holdings Ltd.

    5,300       259,007  
   

 

 

 
      715,521  
IT Services — 0.3%            

Shopify Inc., Class A(a)

    312       14,959  
   

 

 

 
Security   Shares     Value  

 

 
Semiconductors & Semiconductor Equipment — 15.5%  

Advanced Micro Devices Inc.(a)

    381     $ 37,342  

Intel Corp.

    988       32,278  

Micron Technology Inc.

    2,736       165,090  

Nvidia Corp.

    1,020       283,326  

Qualcomm Inc.

    1,697       216,503  

SK Hynix Inc.

    1,372       93,893  
   

 

 

 
      828,432  
Software — 29.7%            

Adobe Inc.(a)

    110       42,391  

Ansys Inc.(a)

    748       248,934  

Aspen Technology Inc.(a)

    9       2,060  

Autodesk Inc.(a)

    1,111       231,266  

Dassault Systemes SE

    5,800       239,256  

Microsoft Corp.

    608       175,286  

PTC Inc.(a)

    1,833       235,045  

Salesforce Inc.(a)

    224       44,751  

Unity Software Inc.(a)

    3,952       128,203  

Zoom Video Communications Inc., Class A(a)

    3,295       243,303  
   

 

 

 
      1,590,495  
Technology Hardware, Storage & Peripherals — 7.4%  

Apple Inc.

    2,016       332,438  

Samsung Electronics Co. Ltd.

    1,292       63,891  
   

 

 

 
      396,329  

Total Investments — 99.8%
(Cost: $5,103,438)

 

    5,337,521  

Other Assets Less Liabilities — 0.2%

 

    12,900  
   

 

 

 

Net Assets — 100.0%

    $   5,350,421  
   

 

 

 

 

(a)

Non-income producing security

    

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the period ended March 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    

Value at

02/14/23

 

(a) 

   

Purchases

at Cost

 

 

   

Proceeds

from Sale

 

 

   
Net Realized
Gain (Loss)
 
 
   

Change in

Unrealized

Appreciation

(Depreciation)

 

 

 

 

   

Value at

03/31/23

 

 

   

Shares

Held at

03/31/23

 

 

 

    Income      

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

 

 

 

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares(b)

  $     $ 0 (c)    $     $     $     $           $ 6     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Commencement of operations.

 

 

  (b) 

As of period end, the entity is no longer held.

 

 

  (c) 

Represents net amount purchased (sold).

 

 

 

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

  41


Schedule of Investments  (continued)

March 31, 2023

  

iShares® Future Metaverse Tech and Communications ETF

 

Fair Value Hierarchy as of Period End

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

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

 

                                                                       

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 3,899,592        $ 1,437,929        $        $ 5,337,521  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

42  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments

March 31, 2023

  

iShares® India 50 ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Automobiles — 5.3%            

Bajaj Auto Ltd.

    69,837     $ 3,303,610  

Eicher Motors Ltd.

    86,049       3,091,860  

Hero MotoCorp Ltd.

    80,362       2,301,005  

Mahindra & Mahindra Ltd.

    556,356       7,862,103  

Maruti Suzuki India Ltd.

    82,592       8,352,410  

Tata Motors Ltd.(a)

    1,107,684       5,706,908  
   

 

 

 
      30,617,896  
Banks — 27.4%            

Axis Bank Ltd.

    1,701,441       17,825,599  

HDFC Bank Ltd.

    2,739,087       53,874,651  

ICICI Bank Ltd.

    4,338,451       46,362,612  

IndusInd Bank Ltd.

    402,716       5,253,417  

Kotak Mahindra Bank Ltd.

    913,452       19,307,506  

State Bank of India

    2,384,637       15,243,883  
   

 

 

 
          157,867,668  
Chemicals — 2.1%            

Asian Paints Ltd.

    280,137       9,438,285  

UPL Ltd.

    330,031       2,887,457  
   

 

 

 
      12,325,742  
Construction & Engineering — 3.4%            

Larsen & Toubro Ltd.

    751,059       19,825,179  
   

 

 

 
Construction Materials — 2.0%            

Grasim Industries Ltd.

    231,448       4,606,955  

UltraTech Cement Ltd.

    71,754       6,667,633  
   

 

 

 
      11,274,588  
Consumer Finance — 2.0%            

Bajaj Finance Ltd.

    165,531       11,357,855  
   

 

 

 
Financial Services — 7.2%            

Bajaj Finserv Ltd.

    334,719       5,178,882  

Housing Development Finance Corp. Ltd.

    1,125,812       36,102,592  
   

 

 

 
      41,281,474  
Electric Utilities — 1.0%            

Power Grid Corp. of India Ltd.

    2,123,895       5,847,253  
   

 

 

 
Food Products — 2.1%            

Britannia Industries Ltd.

    73,168       3,856,709  

Nestle India Ltd.

    22,167       5,322,458  

Tata Consumer Products Ltd.

    372,681       3,220,554  
   

 

 

 
      12,399,721  
Health Care Providers & Services — 0.6%            

Apollo Hospitals Enterprise Ltd.

    62,982       3,312,267  
   

 

 

 
Independent Power and Renewable Electricity Producers — 1.1%  

NTPC Ltd.

    2,952,453       6,303,318  
   

 

 

 
Insurance — 1.3%            

HDFC Life Insurance Co. Ltd.(b)

    614,373       3,736,113  

SBI Life Insurance Co. Ltd.(b)

    279,871       3,754,703  
   

 

 

 
      7,490,816  
Security   Shares     Value  

 

 
IT Services — 14.2%            

HCL Technologies Ltd.

    657,636     $ 8,730,499  

Infosys Ltd.

    2,216,973       38,759,634  

Tata Consultancy Services Ltd.

    636,636       24,954,744  

Tech Mahindra Ltd.

    387,409       5,222,526  

Wipro Ltd.

    917,429       4,093,004  
   

 

 

 
      81,760,407  
Life Sciences Tools & Services — 0.5%            

Divi’s Laboratories Ltd.

    78,644       2,707,990  
   

 

 

 
Metals & Mining — 2.7%            

Hindalco Industries Ltd.

    901,090       4,467,713  

JSW Steel Ltd.

    585,795       4,918,720  

Tata Steel Ltd.

    5,012,266       6,403,022  
   

 

 

 
      15,789,455  
Oil, Gas & Consumable Fuels — 12.1%            

Bharat Petroleum Corp. Ltd.

    603,421       2,532,903  

Coal India Ltd.

    1,292,762       3,369,968  

Oil & Natural Gas Corp. Ltd.

    2,405,139       4,432,499  

Reliance Industries Ltd.

    2,102,005       59,769,607  
   

 

 

 
      70,104,977  
Personal Care Products — 3.0%            

Hindustan Unilever Ltd.

    554,805       17,326,158  
   

 

 

 
Pharmaceuticals — 2.8%            

Cipla Ltd.

    333,281       3,657,973  

Dr. Reddy’s Laboratories Ltd.

    75,337       4,248,146  

Sun Pharmaceutical Industries Ltd.

    670,916       8,039,097  
   

 

 

 
      15,945,216  
Textiles, Apparel & Luxury Goods — 1.4%            

Titan Co. Ltd.

    259,281       7,963,617  
   

 

 

 
Tobacco — 4.4%            

ITC Ltd.

    5,479,717       25,638,962  
   

 

 

 
Trading Companies & Distributors — 0.6%            

Adani Enterprises Ltd.

    166,267       3,557,876  
   

 

 

 
Transportation Infrastructure — 0.6%            

Adani Ports & Special Economic Zone Ltd.

    457,289       3,531,763  
   

 

 

 
Wireless Telecommunication Services — 2.4%  

Bharti Airtel Ltd.

    1,524,307       13,900,924  
   

 

 

 

Total Investments — 100.2%
(Cost: $578,875,509)

 

    578,131,122  

Liabilities in Excess of Other Assets — (0.2)%

 

    (1,359,162
   

 

 

 

Net Assets — 100.0%

    $   576,771,960  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

 

 

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

  43


Schedule of Investments  (continued)

March 31, 2023

  

iShares® India 50 ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer  

Value at

03/31/22

   

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

03/31/23

   

Shares

Held at

03/31/23

    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares(a)

  $ 20,390,000     $     $ (20,390,000 )(b)    $     $     $           $ 229,967     $ 18  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

As of period end, the entity is no longer held.

 

 

  (b) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description   Number of
Contracts
   

Expiration

Date

   

Notional

Amount

(000)

   

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Futures

       

SGX Nifty Index

    28       04/27/23     $ 978     $ 22,829  
       

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
   

Commodity

Contracts

   

Credit

Contracts

   

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

   

Interest

Rate

Contracts

   

Other

Contracts

    Total  

 

 

Assets — Derivative Financial Instruments

             

Futures contracts

             

Unrealized appreciation on futures contracts(a)

  $     $     $ 22,829     $     $     $     $ 22,829  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

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

 

For the period ended March 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
   

Commodity

Contracts

   

Credit

Contracts

   

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

   

Interest

Rate

Contracts

   

Other

Contracts

    Total  

 

 

Net Realized Gain (Loss) from

             

Futures contracts

  $     $     $ (294,979   $     $     $     $ (294,979
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

             

Futures contracts

  $     $     $ 21,880     $     $     $     $ 21,880  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts

  

Average notional value of contracts — long

   $ 1,526,404  

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

 

 

44  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

March 31, 2023

  

iShares® India 50 ETF

 

Fair Value Hierarchy as of Period End

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

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

 

                                                                                       

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $        $ 578,131,122        $        $ 578,131,122  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $        $ 22,829        $        $ 22,829  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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

  45


Schedule of Investments

March 31, 2023

  

iShares® International Developed Property ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Australia — 12.7%            

Abacus Property Group

    25,844     $ 45,177  

Arena REIT

    22,071       53,851  

BWP Trust

    30,549       77,491  

Cedar Woods Properties Ltd.

    3,893       11,554  

Centuria Capital Group

    43,651       44,486  

Centuria Industrial REIT

    33,959       68,604  

Centuria Office REIT

    27,358       26,264  

Charter Hall Group

    29,789       221,291  

Charter Hall Long Wale REIT

    40,989       115,299  

Charter Hall Retail REIT

    32,555       82,384  

Charter Hall Social Infrastructure REIT

    21,387       42,872  

Cromwell Property Group

    89,960       33,497  

Dexus

    67,867       343,124  

Dexus Industria REIT

    12,791       22,757  

GDI Property Group Partnership

    30,972       14,958  

Goodman Group

    107,908       1,369,335  

GPT Group (The)

    120,912       345,537  

Growthpoint Properties Australia Ltd.

    18,044       36,990  

HealthCo REIT

    16,418       14,706  

HealthCo REIT, NVS

    8,641       7,740  

Home Consortium Ltd.

    12,160       29,512  

HomeCo Daily Needs REIT

    97,561       75,986  

Hotel Property Investments Ltd.

    12,156       27,706  

Ingenia Communities Group

    22,878       58,163  

Lendlease Corp. Ltd.

    43,666       212,506  

Lifestyle Communities Ltd.

    6,136       65,748  

Mirvac Group

    249,014       348,774  

National Storage REIT

    75,968       128,667  

RAM Essential Services Property Ltd.

    23,023       11,183  

Region RE Ltd.

    72,441       114,408  

Rural Funds Group

    24,264       32,481  

Scentre Group

    326,983       605,273  

Stockland

    150,588       403,243  

Vicinity Ltd.

    244,433       319,681  

Waypoint REIT Ltd.

    42,297       73,637  
   

 

 

 
          5,484,885  
Austria — 0.3%            

CA Immobilien Anlagen AG(a)

    2,884       77,486  

IMMOFINANZ AG(a)

    2,012       28,270  

S IMMO AG

    554       7,979  
   

 

 

 
      113,735  
Belgium — 2.5%            

Aedifica SA

    2,510       202,216  

Care Property Invest NV

    2,320       32,043  

Cofinimmo SA

    1,925       170,597  

Immobel SA(b)

    264       13,738  

Intervest Offices & Warehouses NV

    1,657       31,448  

Montea NV

    851       69,086  

Retail Estates NV

    726       51,225  

Shurgard Self Storage Ltd.

    1,568       74,992  

VGP NV

    825       73,545  

Warehouses De Pauw CVA

    9,770       290,522  

Xior Student Housing NV

    1,459       49,229  
   

 

 

 
      1,058,641  
Canada — 3.7%            

Allied Properties REIT

    3,916       70,584  

Artis REIT

    3,638       20,485  

Automotive Properties Real Estate Investment Trust

    1,200       10,246  
Security   Shares     Value  
Canada (continued)            

Boardwalk REIT

    1,400     $ 57,119  

BSR Real Estate Investment Trust

    1,152       15,343  

BTB Real Estate Investment Trust

    2,304       6,103  

Canadian Apartment Properties REIT

    5,275       185,044  

Choice Properties REIT

    10,135       108,886  

Crombie REIT

    3,249       36,637  

CT REIT

    3,351       39,746  

Dream Industrial REIT(b)

    7,851       85,394  

Dream Office REIT

    1,357       14,599  

DREAM Unlimited Corp., Class A

    1,418       24,835  

European Residential Real Estate Investment Trust

    2,784       6,695  

First Capital Real Estate Investment Trust

    6,611       76,945  

Granite REIT

    1,985       122,919  

H&R Real Estate Investment Trust

    8,226       76,691  

Inovalis Real Estate Investment Trust(b)

    1,018       2,968  

InterRent REIT

    4,398       43,573  

Killam Apartment REIT

    3,603       45,747  

Minto Apartment Real Estate Investment Trust(c)

    1,158       12,647  

Morguard Corp.

    278       21,339  

Morguard North American Residential REIT

    1,246       16,042  

Nexus Industrial REIT

    2,080       15,005  

NorthWest Healthcare Properties REIT

    7,319       45,869  

Prinmaris REIT

    3,040       30,389  

PRO Real Estate Investment Trust

    1,822       8,008  

RioCan REIT

    9,362       141,244  

Slate Grocery REIT

    1,799       18,196  

Slate Office REIT(b)

    2,437       6,383  

SmartCentres Real Estate Investment Trust

    4,466       87,800  

Tricon Residential Inc.

    17,300       134,150  

True North Commercial Real Estate Investment Trust

    2,960       7,600  
   

 

 

 
          1,595,231  
China — 0.6%            

Gemdale Properties & Investment Corp. Ltd.

    356,000       24,417  

Greenland Hong Kong Holdings Ltd.

    48,000       4,212  

Wharf Holdings Ltd. (The)

    77,000       176,170  

Yuexiu REIT

    140,000       35,618  
   

 

 

 
      240,417  
Finland — 0.4%            

Citycon OYJ

    5,152       35,214  

Kojamo OYJ

    11,205       131,868  
   

 

 

 
      167,082  
France — 3.4%            

Altarea SCA

    296       36,422  

Carmila SA

    3,620       54,287  

Covivio

    2,917       169,682  

Gecina SA

    3,436       356,658  

ICADE

    2,012       94,737  

Klepierre SA

    12,318       279,276  

Mercialys SA

    4,848       49,531  

Nexity SA

    3,186       80,005  

Unibail-Rodamco-Westfield(a)

    6,743       362,814  
   

 

 

 
      1,483,412  
Germany — 3.7%            

ADLER Group SA(a)(b)(c)

    4,190       4,108  

alstria office REIT-AG

    561       3,702  

Aroundtown SA(b)

    58,076       83,022  

Deutsche EuroShop AG

    775       16,187  

Deutsche Wohnen SE

    3,259       64,071  

DIC Asset AG

    2,363       20,314  

 

 

46  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments   (continued)

March 31, 2023

  

iShares® International Developed Property ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Germany (continued)            

Grand City Properties SA

    4,882     $ 34,722  

Hamborner REIT AG

    4,496       35,666  

Instone Real Estate Group SE(c)

    2,922       24,765  

LEG Immobilien SE

    4,660       256,095  

TAG Immobilien AG

    11,067       76,614  

Vib Vermoegen AG

    699       13,191  

Vonovia SE

    50,215       945,790  
   

 

 

 
          1,578,247  
Hong Kong — 13.2%            

Champion REIT

    122,000       52,483  

CK Asset Holdings Ltd.

    122,500       742,677  

Far East Consortium International Ltd.

    80,700       19,840  

Fortune REIT

    93,000       77,036  

Hang Lung Group Ltd.

    44,000       77,685  

Hang Lung Properties Ltd.

    116,000       217,060  

Henderson Land Development Co. Ltd.

    83,044       287,315  

Hongkong Land Holdings Ltd.(b)

    67,500       296,964  

Hysan Development Co. Ltd.

    38,000       108,025  

K Wah International Holdings Ltd.

    86,000       30,566  

Kerry Properties Ltd.

    36,500       93,221  

Link REIT

    159,279       1,024,201  

New World Development Co. Ltd.

    87,000       233,212  

Prosperity REIT

    80,000       20,389  

Shun Tak Holdings Ltd.(a)

    136,000       24,967  

Sino Land Co. Ltd.

    214,000       289,397  

Sun Hung Kai Properties Ltd.

    95,000       1,330,912  

Sunlight REIT

    64,000       26,097  

Swire Properties Ltd.

    66,000       169,864  

Wharf Real Estate Investment Co. Ltd.

    98,000       564,222  

Zensun Enterprises Ltd.(a)

    35,000       4,107  
   

 

 

 
      5,690,240  
Ireland — 0.1%            

Irish Residential Properties REIT PLC

    27,251       27,463  
   

 

 

 
Israel — 2.2%            

AFI Properties Ltd.(a)

    336       8,859  

Africa Israel Residences Ltd.

    391       15,414  

Airport City Ltd.(a)

    4,068       53,851  

Alony Hetz Properties & Investments Ltd.

    9,681       76,040  

Amot Investments Ltd.

    13,612       69,074  

Ashtrom Group Ltd.

    1       11  

Aura Investments Ltd.(b)

    7,914       10,689  

Azrieli Group Ltd.

    2,291       131,637  

Big Shopping Centers Ltd.(a)

    746       61,882  

Blue Square Real Estate Ltd.

    352       19,193  

Electra Real Estate Ltd.

    1,429       12,743  

G City Ltd.

    5,052       16,785  

Gav-Yam Lands Corp. Ltd.

    1,757       12,881  

IES Holdings Ltd.

    176       11,779  

Israel Canada T.R Ltd.

    8,391       15,351  

Israel Land Development - Urban Renewal Ltd.

    1,148       9,505  

Isras Investment Co. Ltd.

    99       16,319  

Mega Or Holdings Ltd.

    1,395       30,038  

Mehadrin Ltd.(a)

    1       27  

Melisron Ltd.

    1,427       89,692  

Menivim- The New REIT Ltd.

    43,449       19,444  

Mivne Real Estate KD Ltd.

    37,701       104,334  

Norstar Holdings Inc.(a)

    1,982       5,005  

Prashkovsky Investments and Construction Ltd.(b)

    476       10,289  

Property & Building Corp. Ltd.(a)

    176       8,367  
Security   Shares     Value  
Israel (continued)            

Reit 1 Ltd.

    12,152     $ 53,239  

Sella Capital Real Estate Ltd.

    13,520       27,336  

Summit Real Estate Holdings Ltd.

    2,166       23,966  

YH Dimri Construction & Development Ltd.

    433       24,701  
   

 

 

 
      938,451  
Italy — 0.0%            

Immobiliare Grande Distribuzione SIIQ SpA

    3,584       10,992  
   

 

 

 
Japan — 28.8%            

Activia Properties Inc.

    46       131,241  

Advance Logistics Investment Corp.

    40       39,894  

Advance Residence Investment Corp.

    87       207,719  

Aeon Mall Co. Ltd.

    5,980       78,490  

AEON REIT Investment Corp.

    111       121,341  

Arealink Co. Ltd.

    500       8,879  

Comforia Residential REIT Inc.

    42       99,920  

CRE Inc./Japan

    1,000       9,718  

CRE Logistics REIT Inc.

    36       45,926  

Daito Trust Construction Co. Ltd.

    4,400       438,371  

Daiwa House Industry Co. Ltd.

    42,000       989,573  

Daiwa House REIT Investment Corp.

    134       274,567  

Daiwa Office Investment Corp.

    18       82,333  

Daiwa Securities Living Investments Corp.

    142       116,632  

Dear Life Co. Ltd.

    1,600       8,075  

ESCON Japan Reit Investment Corp.

    21       17,196  

Frontier Real Estate Investment Corp.

    33       118,240  

Fukuoka REIT Corp.

    45       54,998  

Global One Real Estate Investment Corp.

    65       51,249  

GLP J-Reit

    297           321,035  

Goldcrest Co. Ltd.

    900       11,628  

Hankyu Hanshin REIT Inc.

    44       46,038  

Health Care & Medical Investment Corp.

    23       28,420  

Heiwa Real Estate Co. Ltd.

    2,000       57,241  

Heiwa Real Estate REIT Inc.

    62       71,329  

Hoshino Resorts REIT Inc.

    16       83,266  

Hulic Co. Ltd.

    37,600       309,270  

Hulic Reit Inc.

    81       91,433  

Ichigo Hotel REIT Investment Corp.

    17       13,284  

Ichigo Inc.

    15,200       31,863  

Ichigo Office REIT Investment Corp.

    96       70,061  

Industrial & Infrastructure Fund Investment Corp.

    131       142,577  

Invincible Investment Corp.

    382       160,785  

Japan Excellent Inc.

    80       72,397  

Japan Hotel REIT Investment Corp.

    280       158,803  

Japan Logistics Fund Inc.

    59       131,096  

Japan Metropolitan Fund Invest

    439       320,581  

Japan Prime Realty Investment Corp.

    63       165,966  

Japan Property Management Center Co. Ltd.

    900       7,179  

Japan Real Estate Investment Corp.

    87       346,716  

JINUSHI Co Ltd.

    700       10,129  

JSB Co. Ltd.

    400       13,746  

Katitas Co. Ltd.

    3,200       62,628  

Keihanshin Building Co. Ltd.

    2,700       24,425  

Kenedix Office Investment Corp.

    53       122,595  

Kenedix Residential Next Investment Corp.

    68       105,087  

Kenedix Retail REIT Corp.

    38       67,333  

LaSalle Logiport REIT

    112       129,970  

Leopalace21 Corp.(a)

    11,200       30,253  

Marimo Regional Revitalization REIT Inc.

    14       13,398  

Mirai Corp.

    112       38,072  

 

 

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

  47


Schedule of Investments   (continued)

March 31, 2023

  

iShares® International Developed Property ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)            

Mitsubishi Estate Co. Ltd.

    79,200     $ 942,057  

Mitsubishi Estate Logistics REIT Investment Corp.

    32       94,288  

Mitsui Fudosan Co. Ltd.

    60,056       1,128,118  

Mitsui Fudosan Logistics Park Inc.

    35       122,801  

Mori Hills REIT Investment Corp.

    102       113,590  

Mori Trust Sogo REIT Inc.

    158       81,621  

Nippon Accommodations Fund Inc.

    32       144,165  

Nippon Building Fund Inc.

    107       445,392  

Nippon Prologis REIT Inc.

    173       366,249  

NIPPON REIT Investment Corp.

    28       67,648  

Nisshin Fudosan Co.

    1,800       6,187  

Nomura Real Estate Holdings Inc.

    7,300       161,648  

Nomura Real Estate Master Fund Inc.

    297       332,814  

NTT UD REIT Investment Corp.

    87       88,522  

One REIT Inc.

    17       29,589  

Ooedo Onsen Reit Investment Corp.

    16       7,708  

Orix JREIT Inc.

    175       221,888  

SAMTY Co. Ltd.

    2,600       43,240  

Samty Residential Investment Corp.

    46       38,742  

Sankei Real Estate Inc.

    29       18,050  

Sekisui House Reit Inc.

    274       148,662  

SOSiLA Logistics REIT Inc.

    46       45,121  

SRE Holdings Corp.(a)

    600       15,396  

Star Asia Investment Corp.

    121       50,033  

Star Mica Holdings Co. Ltd.

    1,600       8,430  

Starts Corp. Inc.

    2,100       40,429  

Starts Proceed Investment Corp.

    16       27,476  

Sumitomo Realty & Development Co. Ltd.

    30,000       677,444  

Sun Frontier Fudousan Co. Ltd.

    1,800       17,429  

Takara Leben Co. Ltd.

    5,200       14,811  

Takara Leben Real Estate Investment Corp.

    41       27,722  

TKP Corp.(a)

    1,000       21,680  

TOC Co. Ltd.

    3,200       15,393  

Tokaido REIT Inc.

    14       12,382  

Tokyo Tatemono Co. Ltd.

    13,100       159,941  

Tokyu Fudosan Holdings Corp.

    38,200       183,473  

Tokyu REIT Inc.

    59       80,549  

Tosei Corp.

    1,700       18,929  

Tosei Reit Investment Corp.

    20       20,047  

United Urban Investment Corp.

    196       211,471  

XYMAX REIT Investment Corp.

    16       13,313  
   

 

 

 
          12,417,414  
Netherlands — 0.5%            

Argo Properties NV(a)(b)

    764       9,589  

Brack Capital Properties NV(a)

    1       92  

CTP NV(c)

    4,777       61,643  

Eurocommercial Properties NV

    2,689       61,281  

NSI NV

    1,164       29,287  

Vastned Retail NV

    1,108       25,546  

Wereldhave NV

    2,489       38,404  
   

 

 

 
      225,842  
New Zealand — 0.7%            

Argosy Property Ltd.

    52,588       36,574  

Goodman Property Trust

    67,030       89,866  

Kiwi Property Group Ltd.

    98,832       56,277  

Precinct Properties New Zealand Ltd.

    84,920       67,555  

Stride Property Group

    34,025       27,871  

Vital Healthcare Property Trust

    30,154       44,080  
   

 

 

 
      322,223  
Security   Shares     Value  
Norway — 0.2%            

Entra ASA(c)

    7,668     $ 74,200  
   

 

 

 
Singapore — 8.9%            

AIMS APAC REIT(b)

    33,485       33,262  

CapitaLand Ascendas REIT

    211,892       456,884  

CapitaLand Ascott Trust(b)

    129,560       97,013  

CapitaLand China Trust

    73,926       62,275  

Capitaland India Trust

    47,100       38,653  

CapitaLand Integrated Commercial Trust

    317,110       472,947  

Capitaland Investment Ltd/Singapore

    154,800       429,495  

CDL Hospitality Trusts

    53,962       48,361  

City Developments Ltd.

    32,000       177,566  

Cromwell European Real Estate Investment Trust

    22,720       37,206  

Daiwa House Logistics Trust(b)

    35,000       14,861  

Digital Core REIT Management Pte Ltd.

    21,300       9,511  

Eagle Hospitality Trust(a)(d)

    53,200        

EC World Real Estate Investment Trust(b)

    16,900       4,064  

ESR-LOGOS REIT

    353,136       86,374  

Far East Hospitality Trust

    66,100       29,115  

First REIT

    71,500       13,949  

Frasers Centrepoint Trust

    68,206       117,611  

Frasers Logistics & Commercial Trust

    181,972       179,610  

Hong Fok Corp. Ltd.(b)

    25,900       19,912  

Keppel DC REIT

    83,203       129,020  

Keppel Pacific Oak US REIT

    47,300       17,974  

Keppel REIT

    124,800       83,097  

Lendlease Global Commercial REIT

    119,692       61,275  

Manulife US Real Estate Investment Trust

    110,750       23,867  

Mapletree Industrial Trust

    126,332       225,554  

Mapletree Logistics Trust(b)

    203,711       262,780  

Mapletree Pan Asia Commercial Trust

    144,812       196,338  

OUE Commercial Real Estate Investment Trust

    152,700       36,190  

Parkway Life REIT

    24,600       73,827  

Prime U.S. REIT

    40,000       12,820  

Sasseur Real Estate Investment Trust

    35,500       19,872  

SPH REIT

    67,200       47,729  

Starhill Global REIT

    90,400       35,391  

Suntec REIT

    143,000       153,883  

UOL Group Ltd.

    29,300       152,984  
   

 

 

 
          3,861,270  
South Korea — 0.5%            

D&D Platform REIT Co. Ltd., NVS

    3,616       9,843  

Dongwon Development Co. Ltd.

    2,402       6,131  

E KOCREF CR-REIT Co. Ltd.

    1,476       5,633  

ESR Kendall Square REIT Co. Ltd.

    10,069       30,172  

IGIS Value Plus REIT Co. Ltd.

    2,059       7,043  

JR REIT XXVII

    9,327       31,667  

Koramco Energy Plus Reit

    2,665       10,258  

Korea REIT & Trust Co. Ltd.

    7,841       7,982  

LOTTE Reit Co. Ltd.

    7,415       21,036  

Mirae Asset Maps Asia Pacific Real Estate 1 Investment

    5,800       18,431  

NH All-One REIT Co. Ltd.

    2,659       7,128  

Shinhan Alpha REIT Co. Ltd.

    3,744       15,817  

Shinhan Seobu T&D REIT Co. Ltd.

    1,788       5,137  

SK D&D Co. Ltd.

    527       7,795  

SK REITs Co. Ltd.

    4,881       18,745  
   

 

 

 
      202,818  
Spain — 0.8%            

Aedas Homes SA(c)

    826       11,663  

Inmobiliaria Colonial Socimi SA

    18,688       118,438  

 

 

48  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments   (continued)

March 31, 2023

  

iShares® International Developed Property ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
Spain (continued)            

Lar Espana Real Estate Socimi SA

    3,510     $ 18,747  

Merlin Properties Socimi SA

    20,980       183,564  

Metrovacesa SA(b)(c)

    1,242       9,698  
   

 

 

 
      342,110  
Sweden — 4.0%            

Akelius Residential Property AB, Class D(b)

    13,047       26,120  

Atrium Ljungberg AB, Class B

    3,257       53,205  

Castellum AB(b)

    18,076       210,292  

Catena AB

    2,086       77,634  

Cibus Nordic Real Estate AB

    2,864       29,929  

Corem Property Group AB

    281       4,381  

Corem Property Group AB, Class B

    34,161       23,862  

Dios Fastigheter AB

    5,743       38,177  

Fabege AB

    16,839       129,156  

Fastighets AB Balder, Class B(a)

    41,047       168,645  

Heba Fastighets AB

    4,132       11,366  

Hufvudstaden AB, Class A

    7,401       100,388  

K-Fast Holding AB(a)

    3,846       7,583  

Klarabo Sverige AB(a)

    5,136       6,933  

Logistea AB(a)

    3,903       4,828  

Neobo Fastigheter AB(a)(b)

    7,034       8,458  

NP3 Fastigheter AB

    1,792       32,333  

Nyfosa AB

    9,744       67,824  

Pandox AB(a)

    5,574       69,545  

Platzer Fastigheter Holding AB, Class B

    4,104       31,847  

Sagax AB, Class B

    11,796       271,902  

Sagax AB, Class D

    6,739       17,013  

Samhallsbyggnadsbolaget i Norden AB(b)

    67,186       91,860  

Samhallsbyggnadsbolaget i Norden AB, Class D(b)

    9,147       14,200  

Wallenstam AB, Class B

    26,423       100,004  

Wihlborgs Fastigheter AB

    16,828       128,952  
   

 

 

 
          1,726,437  
Switzerland — 2.5%            

Allreal Holding AG, Registered

    976       164,720  

Intershop Holding AG

    77       56,018  

Mobimo Holding AG, Registered

    458       119,426  

Peach Property Group AG(b)

    659       8,818  

PSP Swiss Property AG, Registered

    2,883       328,083  

Swiss Prime Site AG, Registered

    4,835       402,067  
   

 

 

 
      1,079,132  
United Kingdom — 9.5%            

Abrdn Property Income Trust

    26,322       17,502  

AEW UK REIT PLC

    10,708       12,216  

Assura PLC

    187,586       113,065  

Balanced Commercial Property Trust Ltd.

    49,991       50,815  

Big Yellow Group PLC

    11,008       158,687  

British Land Co. PLC (The)

    59,235       284,130  

Capital & Counties Properties PLC

    114,726       162,330  

Civitas Social Housing PLC

    39,924       26,455  

CLS Holdings PLC

    11,952       19,816  

Custodian Reit PLC

    27,246       29,981  

Derwent London PLC

    7,122       207,288  

Ediston Property Investment Co. PLC

    13,308       10,080  

Empiric Student Property PLC

    37,864       42,178  

Grainger PLC

    46,564       133,838  

Great Portland Estates PLC

    15,963       99,838  

Hammerson PLC

    250,648       80,589  

Helical PLC

    6,641       24,577  

Home Reit PLC(d)

    52,824       22,880  
Security   Shares     Value  

 

 
United Kingdom (continued)            

Impact Healthcare Reit PLC

    25,359     $ 28,843  

Land Securities Group PLC

    47,420       364,022  

LondonMetric Property PLC

    61,611       134,208  

LXI REIT PLC

    108,159       131,658  

NewRiver REIT PLC

    18,767       18,266  

Phoenix Spree Deutschland Ltd.

    6,534       14,952  

Picton Property Income Ltd. (The)

    35,036       29,988  

Primary Health Properties PLC

    84,625       105,980  

PRS REIT PLC (The)

    34,496       34,426  

Regional REIT Ltd.(c)

    27,207       18,191  

Safestore Holdings PLC

    13,697       160,770  

Schroder REIT Ltd.

    34,160       18,466  

Segro PLC

    76,164       725,522  

Sirius Real Estate Ltd.

    75,069       71,028  

Supermarket Income Reit PLC

    78,054       83,572  

Triple Point Social Housing REIT PLC(c)

    23,769       12,520  

Tritax Big Box REIT PLC

    117,666       203,607  

UK Commercial Property REIT Ltd.

    54,826       34,915  

UNITE Group PLC (The)

    25,162       298,100  

Urban Logistics REIT PLC

    29,721       46,930  

Warehouse REIT PLC

    26,754       33,730  

Workspace Group PLC

    8,824       47,547  
   

 

 

 
      4,113,506  
   

 

 

 

Total Common Stocks — 99.2%
(Cost: $64,844,412)

 

    42,753,748  
   

 

 

 

Rights

   
Austria — 0.0%            

Buwog AG(d)

    463        
   

 

 

 
South Korea — 0.0%            

Shinhan Alpha REIT Co. Ltd.,
((Expires 04/28/23, Strike Price KRW 6,100.00)

    686        
   

 

 

 

Total Rights — 0.0%
(Cost: $—)

 

     
   

 

 

 

Total Long-Term Investments — 99.2%
(Cost: $64,844,412)

 

    42,753,748  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 2.1%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(e)(f)(g)

    912,181       912,455  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(e)(f)

    10,000       10,000  
   

 

 

 

Total Short-Term Securities — 2.1%
(Cost: $922,174)

 

    922,455  
   

 

 

 

Total Investments — 101.3%
(Cost: $65,766,586)

 

    43,676,203  

Liabilities in Excess of Other Assets — (1.3)%

      (552,802
   

 

 

 

Net Assets — 100.0%

    $   43,123,401  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

 

 

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

  49


Schedule of Investments  (continued)

March 31, 2023

  

iShares® International Developed Property ETF

 

(d) 

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

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

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

    

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer  

Value at

03/31/22

   

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

03/31/23

   

Shares

Held at

03/31/23

    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 458,807     $ 453,369 (a)    $     $ 125     $ 154     $ 912,455       912,181     $ 23,438 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    30,000             (20,000 )(a)                  10,000       10,000       401        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 125     $ 154     $ 922,455       $ 23,839     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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

       

Mini TOPIX Index

    12       06/08/23     $ 182     $ 898  

Dow Jones U.S. Real Estate Index

    6       06/16/23       199       6,367  
       

 

 

 
        $ 7,265  
       

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
   

Commodity

Contracts

   

Credit

Contracts

   

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

   

Interest

Rate

Contracts

    Other
Contracts
    Total  

 

 

Assets — Derivative Financial Instruments

             

Futures contracts

             

Unrealized appreciation on futures contracts(a)

  $     $     $ 7,265     $     $     $     $ 7,265  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

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

 

 

 

50  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

March 31, 2023

  

iShares® International Developed Property ETF

 

For the period ended March 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
   

Commodity

Contracts

   

Credit

Contracts

   

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

   

Interest

Rate

Contracts

   

Other

Contracts

    Total  

 

 

Net Realized Gain (Loss) from

             

Futures contracts

  $     $     $ (21,721   $     $     $     $ (21,721
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

             

Futures contracts

  $     $     $ (7,904   $     $     $     $ (7,904
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts

  

Average notional value of contracts — long

   $ 364,542  

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  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 3,179,453        $ 39,551,415        $ 22,880        $ 42,753,748  

Rights

                                 

Short-Term Securities

                 

Money Market Funds

     922,455                            922,455  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $  4,101,908        $ 39,551,415        $     22,880        $ 43,676,203  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $ 6,367        $ 898        $        $ 7,265  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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

  51


Schedule of Investments

March 31, 2023

  

iShares® International Developed Small Cap Value Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Australia — 8.8%            

Abacus Property Group

    150,990     $ 263,943  

Arena REIT

    101,977       248,816  

AUB Group Ltd.

    22,200       381,494  

Austal Ltd.

    101,031       116,758  

Bapcor Ltd.

    107,550       461,904  

Bega Cheese Ltd.

    95,000       230,859  

Bravura Solutions Ltd.

    89,201       23,898  

Brickworks Ltd.

    18,795       285,598  

BWP Trust

    152,240       386,176  

Cedar Woods Properties Ltd.

    19,600       58,171  

Centuria Capital Group

    221,150       225,382  

Centuria Industrial REIT

    166,404       336,172  

Centuria Office REIT

    153,121       146,996  

Charter Hall Long Wale REIT

    171,203       481,580  

Charter Hall Retail REIT

    152,547       386,035  

Charter Hall Social Infrastructure REIT

    105,843       212,171  

Credit Corp. Group Ltd.

    18,200       208,061  

Dexus Industria REIT

    68,187       121,314  

Elders Ltd.

    48,900       282,877  

Emeco Holdings Ltd.

    177,961       87,170  

Gold Road Resources Ltd.

    271,850       308,433  

GrainCorp Ltd., Class A

    73,050       339,003  

Growthpoint Properties Australia Ltd.

    88,962       182,372  

GUD Holdings Ltd.

    38,600       255,001  

Healius Ltd.

    184,212       391,163  

Ingenia Communities Group

    116,347       295,791  

InvoCare Ltd.

    45,800       363,378  

IPH Ltd.

    49,650       247,600  

Kelsian Group Ltd.

    46,215       181,900  

Link Administration Holdings Ltd.

    160,654       228,098  

McMillan Shakespeare Ltd.

    16,578       160,057  

Monadelphous Group Ltd.

    28,100       236,697  

National Storage REIT

    363,200       615,154  

Nine Entertainment Co. Holdings Ltd.

    463,450       616,320  

Perseus Mining Ltd.

    386,150       612,945  

Premier Investments Ltd.

    25,750       453,162  

Reliance Worldwide Corp. Ltd.

    250,485       623,045  

Rural Funds Group

    115,700       154,883  

Sandfire Resources Ltd.(a)(b)

    130,300       553,082  

Select Harvests Ltd.

    39,250       108,839  

Service Stream Ltd.

    183,840       79,548  

SmartGroup Corp. Ltd.

    28,000       120,586  

Super Retail Group Ltd.

    51,800       438,078  

Superloop Ltd.(a)

    135,050       50,682  

United Malt Grp Ltd.

    85,400       272,944  

Viva Energy Group Ltd.(c)

    270,550       549,989  

Waypoint REIT Ltd.

    232,050       403,987  

Westgold Resources Ltd.(a)

    99,350       86,719  
   

 

 

 
          13,874,831  
Austria — 2.1%            

CA Immobilien Anlagen AG(a)

    13,078       351,377  

EVN AG(b)

    11,613       257,911  

Mayr Melnhof Karton AG(b)

    2,681       445,607  

Oesterreichische Post AG(b)

    10,550       390,562  

Porr AG

    4,582       67,084  

Schoeller-Bleckmann Oilfield Equipment AG

    3,550       228,805  

UNIQA Insurance Group AG

    35,105       295,792  

Vienna Insurance Group AG Wiener Versicherung Gruppe

    12,050       324,055  
Security   Shares     Value  
Austria (continued)            

Wienerberger AG

    35,800     $ 1,036,448  
   

 

 

 
      3,397,641  
Belgium — 2.2%            

Aedifica SA

    11,550       930,515  

Bekaert SA

    11,162       504,152  

Deme Group NV(a)

    2,259       289,416  

Gimv NV

    6,150       297,176  

KBC Ancora

    11,322       521,698  

Montea NV

    3,900       316,613  

Shurgard Self Storage Ltd.

    7,700       368,264  

Tessenderlo Group SA(a)

    8,050       251,582  
   

 

 

 
      3,479,416  
Canada — 16.9%            

Allied Properties REIT

    39,962       720,292  

AltaGas Ltd.

    88,350       1,472,827  

ARC Resources Ltd.

    207,500       2,353,663  

Canadian Apartment Properties REIT

    55,097       1,932,778  

Canadian Western Bank

    27,250       499,230  

Capital Power Corp.

    36,550       1,126,113  

Celestica Inc.(a)

    33,150       427,528  

Choice Properties REIT

    81,400       874,531  

Finning International Inc.

    50,989       1,271,047  

Granite REIT

    19,586       1,212,839  

Home Capital Group Inc.

    16,005       489,091  

iA Financial Corp. Inc.

    34,100       2,161,307  

Laurentian Bank of Canada

    13,800       324,808  

Linamar Corp.

    14,400       692,883  

Maple Leaf Foods Inc.

    24,006       464,489  

Mullen Group Ltd.

    29,100       318,022  

North West Co. Inc. (The)

    14,950       418,025  

Onex Corp.

    24,100       1,126,628  

Parex Resources Inc.

    39,850       741,272  

PrairieSky Royalty Ltd.

    63,700       1,008,642  

Russel Metals Inc.

    19,850       504,218  

SSR Mining Inc.

    66,850       1,011,035  

Stella-Jones Inc.

    20,706       793,462  

Torex Gold Resources Inc.(a)

    27,250       453,461  

Transcontinental Inc., Class A

    22,755       236,221  

West Fraser Timber Co. Ltd.

    31,350       2,236,138  

Yamana Gold Inc.

    305,000       1,778,320  
   

 

 

 
      26,648,870  
Denmark — 2.1%            

FLSmidth & Co. A/S

    17,850       683,823  

Scandinavian Tobacco Group A/S, Class A(c)

    19,250       383,243  

Schouw & Co. A/S

    4,102       343,637  

Spar Nord Bank A/S

    25,900       409,090  

Sydbank AS

    18,900       849,769  

Topdanmark AS

    13,450       719,027  
   

 

 

 
          3,388,589  
Finland — 2.8%            

Cargotec OYJ, Class B

    15,445       751,873  

Kemira OYJ

    28,103       495,118  

Konecranes OYJ

    23,050       772,957  

Metsa Board OYJ, Class B

    54,428       438,663  

Outokumpu OYJ

    106,550       580,393  

Terveystalo OYJ(b)(c)

    24,050       183,241  

TietoEVRY OYJ

    29,800       936,159  

Uponor OYJ

    17,070       315,982  
      4,474,386  

 

 

52  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments   (continued)

March 31, 2023

  

iShares® International Developed Small Cap Value Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
France — 2.9%            

APERAM SA

    15,037     $ 560,939  

Beneteau SA

    11,450       191,339  

Carmila SA

    12,978       194,623  

Coface SA(a)

    32,966       466,964  

Derichebourg SA

    29,250       171,792  

Fnac Darty SA

    5,550       204,913  

IPSOS

    12,195       755,871  

Jacquet Metal Service SA

    3,500       68,053  

Mersen SA

    4,750       211,216  

Metropole Television SA

    20,550       333,310  

Nexity SA

    13,443       337,574  

Quadient SA

    10,750       196,361  

Rothschild & Co.

    8,859       447,233  

Television Francaise 1

    33,800       298,576  

Vicat SA

    4,751       142,571  
   

 

 

 
      4,581,335  
Germany — 3.2%            

Aurubis AG

    11,166       1,034,448  

Bilfinger SE

    8,550       362,585  

CropEnergies AG

    6,250       76,858  

Deutsche EuroShop AG

    3,180       66,420  

Deutz AG

    38,450       249,506  

Freenet AG

    39,850       1,035,481  

Hamburger Hafen und Logistik AG

    8,100       100,064  

Hornbach Holding AG & Co. KGaA

    2,700       216,097  

Instone Real Estate Group SE(c)

    14,812       125,534  

Krones AG

    4,650       550,016  

Salzgitter AG

    12,200       483,226  

Suedzucker AG

    24,855       417,574  

Takkt AG

    10,550       166,516  

Wacker Neuson SE

    7,650       160,180  
   

 

 

 
          5,044,505  
Hong Kong — 0.1%            

VSTECS Holdings Ltd.

    200,000       117,258  
   

 

 

 
Israel — 0.4%            

Clal Insurance Enterprises Holdings Ltd.(a)

    15,050       204,729  

Menora Mivtachim Holdings Ltd.

    7,150       145,576  

Migdal Insurance & Financial Holdings Ltd.(a)

    100,950       107,897  

Oil Refineries Ltd.

    482,350       132,026  
   

 

 

 
      590,228  
Italy — 1.1%            

Banca IFIS SpA

    8,302       125,591  

BFF Bank SpA(c)

    58,700       582,431  

Credito Emiliano SpA

    24,453       180,803  

Unipol Gruppo SpA

    153,700       789,039  
   

 

 

 
      1,677,864  
Japan — 18.8%            

ADEKA Corp.

    30,000       513,668  

Aichi Steel Corp.

    5,000       88,520  

Aida Engineering Ltd.

    20,000       123,720  

Aiphone Co. Ltd.

    5,000       77,053  

Aisan Industry Co. Ltd.

    10,000       68,093  

Alconix Corp.

    5,000       51,500  

Alpen Co. Ltd.

    5,000       75,329  

Anest Iwata Corp.

    10,000       75,888  

AOKI Holdings Inc.

    10,000       64,455  

Arata Corp.

    5,000       153,304  

Asahi Co. Ltd.

    5,000       51,133  
Security   Shares     Value  
Japan (continued)            

Asahi Diamond Industrial Co. Ltd.

    15,000     $ 106,284  

ASAHI YUKIZAI Corp.

    5,000       119,864  

Autobacs Seven Co. Ltd.

    20,000       218,089  

Awa Bank Ltd. (The)

    10,000       147,446  

BML Inc.

    5,000       116,724  

Bunka Shutter Co. Ltd.

    15,000       125,431  

Canon Electronics Inc.

    5,000       69,856  

Cawachi Ltd.

    5,000       86,359  

Central Glass Co. Ltd.

    15,000       332,995  

Chubu Shiryo Co. Ltd.

    10,000       78,902  

Chudenko Corp.

    10,000       161,165  

Chugoku Marine Paints Ltd.

    15,000       124,197  

Citizen Watch Co. Ltd.

    80,000       470,696  

Daihen Corp.

    5,000       168,057  

Daiichi Jitsugyo Co. Ltd.

    5,000       210,254  

Daiken Corp.

    5,000       86,148  

Dainichiseika Color & Chemicals Manufacturing Co. Ltd.

    5,000       67,412  

DCM Holdings Co. Ltd.

    30,000       261,425  

Digital Holdings Inc.

    5,000       43,371  

Doshisha Co. Ltd.

    5,000       73,201  

Duskin Co. Ltd.

    15,000           361,059  

DyDo Group Holdings Inc.

    2,400       88,245  

EDION Corp.(b)

    25,000       241,758  

Eizo Corp.

    5,000       154,774  

Exedy Corp.

    10,000       136,834  

Fuji Co. Ltd./Ehime

    5,000       65,293  

Fuji Seal International Inc.

    15,000       171,470  

Fujibo Holdings Inc.

    5,000       124,929  

Fukuda Corp.

    1,500       52,671  

Furuno Electric Co. Ltd.

    5,000       36,922  

Futaba Industrial Co. Ltd.

    20,000       64,452  

Glory Ltd.

    15,000       328,352  

Goldcrest Co. Ltd.

    5,000       64,602  

Gunze Ltd.

    5,000       169,371  

H2O Retailing Corp.

    25,000       281,241  

Hakuto Co. Ltd.

    3,200       119,231  

Heiwado Co. Ltd.

    10,000       153,687  

Hibiya Engineering Ltd.

    5,000       81,647  

Hodogaya Chemical Co. Ltd.

    1,600       36,490  

Hokuetsu Corp.

    45,000       301,845  

Hokuto Corp.

    5,000       69,956  

Hosiden Corp.

    15,000       182,707  

Hosokawa Micron Corp.

    5,000       109,638  

Inabata & Co. Ltd.

    15,000       305,036  

Ines Corp.

    5,000       51,886  

I-PEX Inc.

    5,000       53,223  

Iseki & Co. Ltd.

    5,000       45,048  

Ishihara Sangyo Kaisha Ltd.

    10,000       84,532  

Itochu Enex Co. Ltd.

    15,000       127,898  

Japan Wool Textile Co. Ltd. (The)

    20,000       149,148  

Joshin Denki Co. Ltd.

    5,000       73,837  

Joyful Honda Co. Ltd.

    20,000       259,011  

JVCKenwood Corp.

    45,000       129,782  

Kaga Electronics Co. Ltd.

    5,000       189,879  

Kanamoto Co. Ltd.

    10,000       164,763  

Kanematsu Corp.

    25,000       310,469  

Kanto Denka Kogyo Co. Ltd.

    15,000       117,342  

Katakura Industries Co. Ltd.

    5,000       70,133  

Kato Sangyo Co. Ltd.

    5,000       132,740  

Kissei Pharmaceutical Co. Ltd.

    10,000       199,669  

 

 

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

  53


Schedule of Investments   (continued)

March 31, 2023

  

iShares® International Developed Small Cap Value Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)            

Kitz Corp.

    20,000     $ 140,632  

Kiyo Bank Ltd. (The)

    20,000       224,654  

Koa Corp.

    10,000       139,674  

Kohnan Shoji Co. Ltd.

    10,000       245,227  

Kojima Co. Ltd.

    10,000       42,325  

Komeri Co. Ltd.

    10,000       206,558  

Komori Corp.

    15,000       112,550  

Kumagai Gumi Co. Ltd.

    10,000       200,745  

Kureha Corp.

    5,000       320,348  

KYB Corp.

    5,000       152,062  

Kyoei Steel Ltd.

    5,000       60,856  

Kyokuto Kaihatsu Kogyo Co. Ltd.

    10,000       122,224  

LEC Inc.

    5,000       30,427  

Life Corp.

    5,000       97,609  

Macnica Holdings Inc.

    15,000       427,268  

Makino Milling Machine Co. Ltd.

    5,000       183,752  

Marudai Food Co. Ltd.

    5,000       54,865  

Marusan Securities Co. Ltd.

    20,000       64,523  

Matsuda Sangyo Co. Ltd.

    5,000       85,924  

Maxell Ltd.

    15,000       174,573  

Meidensha Corp.

    15,000       218,318  

Meisei Industrial Co. Ltd.

    15,000       87,731  

Melco Holdings Inc.

    1,600       39,538  

Mimasu Semiconductor Industry Co. Ltd.

    5,000       111,712  

MIRAIT ONE corp

    25,000       311,348  

Mitsubishi Pencil Co. Ltd.

    15,000       184,599  

Mitsuboshi Belting Ltd.

    5,000       148,795  

Mizuno Corp.

    5,000       117,458  

Nachi-Fujikoshi Corp.

    5,000       149,542  

Neturen Co. Ltd.

    5,000       26,281  

Nichiha Corp.

    10,000           204,544  

Nichireki Co. Ltd.

    5,000       56,241  

Nihon Chouzai Co. Ltd.

    5,000       43,697  

Nihon Parkerizing Co. Ltd.

    30,000       225,503  

Nikkon Holdings Co. Ltd.

    15,000       281,098  

Nippn Corp., New

    15,000       187,800  

Nippon Coke & Engineering Co. Ltd.(a)

    45,000       29,585  

Nippon Denko Co. Ltd.

    30,000       81,149  

Nippon Koei Co. Ltd.

    5,000       127,487  

Nippon Light Metal Holdings Co. Ltd.

    20,000       221,122  

Nippon Soda Co. Ltd.

    7,600       265,179  

Nippon Suisan Kaisha Ltd.

    85,000       348,480  

Nippon Thompson Co. Ltd.

    20,000       88,153  

Nishimatsu Construction Co. Ltd.

    10,000       258,543  

Nishimatsuya Chain Co. Ltd.

    15,000       185,156  

Nishio Rent All Co. Ltd.

    5,000       117,451  

Nissha Co. Ltd.

    10,000       141,082  

Nisshinbo Holdings Inc.

    45,000       344,727  

Nitta Corp.

    5,000       110,866  

Nittetsu Mining Co. Ltd.

    5,000       135,440  

Nitto Kogyo Corp.

    10,000       199,656  

Nojima Corp.

    20,000       211,479  

Noritake Co. Ltd./Nagoya Japan

    5,000       173,559  

Noritz Corp.

    10,000       131,422  

Obara Group Inc.

    5,000       149,552  

Okamura Corp.

    25,000       258,174  

Oki Electric Industry Co. Ltd.

    25,000       135,837  

Okumura Corp.

    10,000       236,363  

Onoken Co. Ltd.

    5,000       56,129  

Osaka Soda Co. Ltd.

    5,000       164,785  
Security   Shares     Value  
Japan (continued)            

Osaka Steel Co. Ltd.

    5,000     $ 49,980  

Osaki Electric Co. Ltd.

    15,000       60,354  

Oyo Corp.

    5,000       84,064  

Pacific Industrial Co. Ltd.

    15,000       131,145  

Pack Corp. (The)

    5,000       111,808  

Piolax Inc.

    5,000       72,967  

Press Kogyo Co. Ltd.

    30,000       112,971  

Pressance Corp.

    5,000       67,507  

Prima Meat Packers Ltd.

    10,000       166,156  

Procrea Holdings Inc.

    5,000       79,476  

Qol Holdings Co. Ltd.

    5,000       43,888  

Restar Holdings Corp.

    10,000       163,707  

Ryobi Ltd.

    10,000       116,672  

S Foods Inc.

    5,000       107,656  

Sakai Chemical Industry Co. Ltd.

    5,000       66,952  

Sanki Engineering Co. Ltd.

    15,000       165,903  

Sanyo Chemical Industries Ltd.

    5,000       161,437  

Sanyo Special Steel Co. Ltd.

    5,000       92,928  

Seiko Group Corp.

    8,100       177,565  

Shinmaywa Industries Ltd.

    20,000       178,484  

Shizuoka Gas Co. Ltd.

    20,000       173,761  

Siix Corp.

    10,000       106,966  

Sinfonia Technology Co. Ltd.

    10,000       119,514  

SKY Perfect JSAT Holdings Inc.

    40,000       156,230  

Sodick Co. Ltd.

    15,000       86,319  

Star Micronics Co. Ltd.

    10,000       136,458  

Starts Corp. Inc.

    10,000       192,518  

Starzen Co. Ltd.

    5,000       82,122  

Stella Chemifa Corp.

    2,500       49,975  

Sumitomo Osaka Cement Co. Ltd.

    10,000       281,779  

Sumitomo Seika Chemicals Co. Ltd.

    2,600       85,011  

Sumitomo Warehouse Co. Ltd. (The)

    15,000           246,804  

Sun Frontier Fudousan Co. Ltd.

    10,000       96,828  

Suruga Bank Ltd.

    60,000       210,294  

SWCC Showa Holdings Co. Ltd.

    5,000       71,834  

Tadano Ltd.

    35,000       276,652  

Takamatsu Construction Group Co. Ltd.

    5,000       76,600  

Takaoka Toko Co. Ltd.

    5,000       88,986  

Takara Standard Co. Ltd.

    15,000       166,519  

Takasago Thermal Engineering Co. Ltd.

    20,000       318,918  

Tamron Co. Ltd.

    5,000       119,162  

Tatsuta Electric Wire and Cable Co. Ltd.

    5,000       26,837  

T-Gaia Corp.

    5,000       63,031  

Toa Corp./Tokyo

    5,000       100,204  

Toagosei Co. Ltd.

    40,000       373,029  

Toho Holdings Co. Ltd.

    15,000       266,183  

TOKAI Holdings Corp.

    40,000       263,571  

Tokyu Construction Co. Ltd.

    20,000       102,027  

Tomy Co. Ltd.

    30,000       335,865  

Topre Corp.

    15,000       139,475  

Towa Pharmaceutical Co. Ltd.

    10,000       143,203  

Toyo Construction Co. Ltd.

    25,000       172,891  

Toyo Ink SC Holdings Co. Ltd.

    10,000       155,433  

Toyo Tanso Co. Ltd.

    5,000       155,613  

Toyobo Co. Ltd.

    30,000       235,898  

Tsubakimoto Chain Co.

    10,000       243,496  

Tsurumi Manufacturing Co. Ltd.

    5,000       78,434  

Uchida Yoko Co. Ltd.

    2,500       92,961  

United Super Markets Holdings Inc.

    20,000       168,123  

V Technology Co. Ltd.

    2,500       53,131  

 

 

54  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments   (continued)

March 31, 2023

  

iShares® International Developed Small Cap Value Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)            

VT Holdings Co. Ltd.

    30,000     $ 114,964  

Wacoal Holdings Corp.

    20,000       375,905  

Warabeya Nichiyo Holdings Co. Ltd.

    5,000       68,364  

Xebio Holdings Co. Ltd.

    5,000       39,642  

Yamazen Corp.

    20,000       153,899  

Yellow Hat Ltd.

    10,000       137,684  

Yokogawa Bridge Holdings Corp.

    10,000       163,605  

Yondoshi Holdings Inc.

    5,000       67,452  

Yuasa Trading Co. Ltd.

    5,000       143,189  
   

 

 

 
          29,713,465  
Netherlands — 0.6%            

Flow Trades Ltd., NVS

    8,295       240,371  

Fugro NV(a)

    32,350       411,047  

Koninklijke BAM Groep NV(a)

    78,511       187,121  

NSI NV

    5,541       139,414  
   

 

 

 
      977,953  
New Zealand — 1.0%            

Argosy Property Ltd.

    265,881       184,915  

Goodman Property Trust

    340,486       456,486  

Kathmandu Holdings Ltd.

    196,300       135,107  

Precinct Properties New Zealand Ltd.

    419,227       333,500  

Stride Property Group

    134,450       110,134  

Summerset Group Holdings Ltd.

    73,250       403,767  
   

 

 

 
      1,623,909  
Norway — 1.6%            

Austevoll Seafood ASA

    28,850       258,552  

Elkem ASA(c)

    85,000       288,850  

Entra ASA(c)

    20,550       198,852  

SpareBank 1 SMN

    42,700       504,439  

Subsea 7 SA

    75,050       890,891  

Veidekke ASA

    36,068       382,815  
   

 

 

 
      2,524,399  
Poland — 0.3%            

Grupa Azoty SA(a)

    14,700       122,455  

PGE Polska Grupa Energetyczna SA(a)

    232,200       338,157  
   

 

 

 
      460,612  
Singapore — 1.5%            

CapitaLand China Trust(b)

    360,000       303,261  

Cromwell European Real Estate Investment Trust

    100,120       163,956  

First Resources Ltd.

    165,000       195,813  

Frasers Centrepoint Trust

    340,000       586,277  

Keppel Pacific Oak US REIT

    255,000       96,900  

Parkway Life REIT

    120,000       360,130  

Prime U.S. REIT

    205,000       65,701  

Raffles Medical Group Ltd.

    300,000       336,368  

SPH REIT

    225,240       159,977  

Starhill Global REIT

    425,000       166,382  
   

 

 

 
      2,434,765  
Sweden — 5.6%            

AFRY AB

    31,200       562,217  

Arjo AB, Class B

    70,958       277,806  

Atrium Ljungberg AB, Class B

    14,200       231,965  

Betsson AB

    38,200       363,526  

Bilia AB, Class A

    24,057       297,132  

Billerud AB

    59,621       612,795  

Bravida Holding AB(c)

    64,150       725,648  

Bure Equity AB

    17,400       415,819  

Clas Ohlson AB, Class B

    12,692       94,298  
Security   Shares     Value  
Sweden (continued)            

Cloetta AB, Class B

    67,600     $ 142,557  

Fabege AB

    81,973       628,739  

Granges AB

    33,400       318,637  

Hexpol AB

    78,800       976,092  

Hufvudstaden AB, Class A

    34,050       461,857  

Lindab International AB

    21,750       333,300  

Loomis AB

    24,000       822,257  

MEKO AB

    13,300       158,185  

Munters Group AB(c)

    33,753       311,775  

NCC AB, Class B

    30,200       267,864  

Nolato AB, Class B

    55,850       283,675  

Peab AB, Class B

    63,158       316,343  

Ratos AB, Class B

    63,250       193,267  
   

 

 

 
          8,795,754  
Switzerland — 8.7%            

ALSO Holding AG, Registered

    850       173,034  

Arbonia AG

    13,924       167,702  

Bell Food Group AG, Registered

    593       181,891  

Bossard Holding AG, Class A, Registered

    823       208,007  

Bucher Industries AG, Registered

    2,077       971,436  

Burckhardt Compression Holding AG

    1,000       621,783  

Bystronic AG, Registered

    400       288,610  

Cembra Money Bank AG

    9,335       734,678  

Comet Holding AG, Registered

    2,350       653,659  

COSMO Pharmaceuticals NV

    2,981       185,060  

Daetwyler Holding AG, Bearer

    2,335       482,269  

dormakaba Holding AG

    955       408,580  

Forbo Holding AG, Registered

    321       463,909  

Galenica AG(c)

    15,352       1,298,745  

Huber + Suhner AG, Registered

    5,597       480,629  

Interroll Holding AG, Registered

    154       553,384  

Kardex Holding AG, Registered

    1,850       402,466  

Komax Holding AG, Registered

    1,138       319,481  

Landis+Gyr Group AG(b)

    7,802       600,500  

Rieter Holding AG, Registered

    950       99,480  

SFS Group AG

    5,350       694,398  

Siegfried Holding AG, Registered

    1,300       956,467  

St. Galler Kantonalbank AG, Class A, Registered

    890       479,036  

Swissquote Group Holding SA, Registered

    2,750       537,108  

u-blox Holding AG

    2,124       296,843  

Valiant Holding AG, Registered

    4,950       532,154  

Vontobel Holding AG, Registered

    8,750       567,824  

Ypsomed Holding AG, Registered

    1,000       210,658  

Zehnder Group AG, Registered

    3,130       255,844  
   

 

 

 
      13,825,635  
United Kingdom — 18.2%            

AG Barr PLC

    24,904       154,659  

Balanced Commercial Property Trust Ltd

    161,600       164,264  

Balfour Beatty PLC

    202,150       928,662  

Bank of Georgia Group PLC

    12,000       407,557  

Big Yellow Group PLC

    53,600       772,675  

Bodycote PLC

    59,150       475,898  

Capricorn Energy PLC(a)

    157,000       452,226  

Chemring Group PLC

    89,367       308,468  

Close Brothers Group PLC

    47,500       529,743  

Coats Group PLC

    456,550       415,078  

Cranswick PLC

    16,600       617,901  

Crest Nicholson Holdings PLC

    79,300       213,716  

Currys PLC

    320,700       233,659  

 

 

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

  55


Schedule of Investments   (continued)

March 31, 2023

  

iShares® International Developed Small Cap Value Factor ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
United Kingdom (continued)            

Drax Group PLC

    126,500     $ 950,180  

Elementis PLC(a)

    182,450       268,059  

Essentra PLC

    95,300       228,115  

Frasers Group PLC(a)

    57,694       553,372  

Grafton Group PLC

    69,325       759,293  

Great Portland Estates PLC

    80,350       502,537  

Greencore Group PLC(a)

    166,750       167,133  

Halfords Group PLC

    63,127       136,123  

Ibstock PLC(c)

    122,219       260,077  

IG Group Holdings PLC

    115,232       994,391  

Inchcape PLC

    122,300       1,172,333  

Investec PLC

    211,200       1,172,052  

IP Group PLC

    311,250       212,521  

Jupiter Fund Management PLC

    138,261       231,850  

Just Group PLC

    329,250       348,691  

Lancashire Holdings Ltd.

    77,200       526,844  

LondonMetric Property PLC

    278,800       607,314  

Man Group PLC/Jersey

    434,300           1,265,212  

Mediclinic International PLC

    124,597       764,518  

Morgan Advanced Materials PLC

    88,900       312,297  

Morgan Sindall Group PLC

    12,800       267,664  

Ninety One PLC

    131,700       300,322  

OSB Group PLC

    120,000       717,827  

Paragon Banking Group PLC

    79,400       509,328  

Pets at Home Group PLC

    150,750       686,211  

Picton Property Income Ltd. (The)

    168,445       144,173  

Plus500 Ltd.

    31,100       649,135  

Premier Foods PLC

    225,034       337,183  

QinetiQ Group PLC

    178,254       716,124  

Redde Northgate PLC

    78,600       335,000  

Redrow PLC

    72,480       428,728  

RHI Magnesita NV

    8,950       247,950  

Safestore Holdings PLC

    65,059       763,639  

Savills PLC

    41,900       511,287  

Serco Group PLC

    380,650       720,320  

Sirius Real Estate Ltd

    303,550       287,210  

TBC Bank Group PLC

    11,250       310,867  

TP ICAP Group PLC

    250,900       557,428  

Tritax Big Box REIT PLC

    592,900       1,025,942  

UK Commercial Property REIT Ltd.

    234,983       149,646  
Security   Shares     Value  

 

 
United Kingdom (continued)            

Vesuvius PLC

    67,282     $ 343,497  

Virgin Money UK PLC

    395,300       714,421  

Vistry Group PLC

    70,150       678,785  

Workspace Group PLC

    42,500       229,005  
   

 

 

 
      28,739,110  
   

 

 

 

Total Common Stocks — 98.9%
(Cost: $166,870,527)

 

    156,370,525  
   

 

 

 

Preferred Stocks

   
Germany — 0.1%            

Draegerwerk AG & Co. KGaA, Preference Shares, NVS

    2,769       127,347  
   

 

 

 

Total Preferred Stocks — 0.1%
(Cost: $145,219)

 

    127,347  
   

 

 

 

Total Long-Term Investments — 99.0%
(Cost: $167,015,746)

 

    156,497,872  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 1.4%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(d)(e)(f)

    2,137,128       2,137,769  
   

 

 

 

Total Short-Term Securities — 1.4%
(Cost: $2,137,489)

 

    2,137,769  
   

 

 

 

Total Investments — 100.4%
(Cost: $169,153,235)

 

    158,635,641  

Liabilities in Excess of Other Assets — (0.4)%

 

    (634,875
   

 

 

 

Net Assets — 100.0%

    $   158,000,766  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 

 

56  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

March 31, 2023

  

iShares® International Developed Small Cap Value Factor ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   

Value at

03/31/22

    

Purchases

at Cost

    

Proceeds

from Sale

    

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

03/31/23

    

Shares

Held at

03/31/23

     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 17,607      $ 2,119,430 (a)     $      $ 449      $ 283      $ 2,137,769        2,137,128      $ 26,954 (b)     $  

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

     40,000               (40,000 )(a)                                   1,883         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ 449      $ 283      $ 2,137,769         $ 28,837      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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.

 

 

  (c) 

As of period end, the entity is no longer held.

 

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

       

Mini TOPIX Index

    40       06/08/23     $ 607     $ (375

Mini S&P/TSX 60 Index

    7       06/15/23       313       5,569  

FTSE 250 Index

    12       06/16/23       561       4,377  
       

 

 

 
        $ 9,571  
       

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

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

 

 

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 9,946      $      $      $      $ 9,946  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 375      $      $      $      $ 375  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

 

 

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

  57


Schedule of Investments  (continued)

March 31, 2023

  

iShares® International Developed Small Cap Value Factor ETF

 

For the period ended March 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

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

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ 76,788      $      $      $      $ 76,788  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (249    $      $      $      $ (249
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts

  

Average notional value of contracts — long

   $ 1,094,387  

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  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 36,977,624        $ 119,392,901        $        $ 156,370,525  

Preferred Stocks

              127,347                   127,347  

Short-Term Securities

                 

Money Market Funds

     2,137,769                            2,137,769  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 39,115,393        $ 119,520,248        $        $ 158,635,641  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $ 5,569        $ 4,377        $        $ 9,946  

Liabilities

                 

Equity Contracts

              (375                 (375
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 5,569        $ 4,002        $          9,571  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

 

58  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments

March 31, 2023

  

iShares® International Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Australia — 2.1%            

Altium Ltd.

    7,683     $ 197,390  

AUB Group Ltd.

    10,638       182,808  

Bapcor Ltd.

    52,993       227,594  

Brickworks Ltd.

    12,411       188,591  

carsales.com Ltd.

    40,188       600,611  

Cleanaway Waste Management Ltd.

    210,790       337,306  

Collins Foods Ltd.

    17,927       100,180  

Computershare Ltd.

    67,571       981,482  

CSL Ltd.

    25,807       4,998,052  

Elders Ltd.

    48,068       278,064  

IPH Ltd.

    35,460       176,836  

Nick Scali Ltd.

    26,595       167,340  

Northern Star Resources Ltd.

    117,215       961,181  

Pro Medicus Ltd.

    1,773       76,469  

PSC Insurance Group Ltd.

    25,216       80,964  

Sonic Healthcare Ltd.

    71,905       1,685,665  

Steadfast Group Ltd.

    119,579       469,650  

Technology One Ltd.

    19,700       193,589  

Washington H Soul Pattinson & Co. Ltd.

    30,338       614,853  
   

 

 

 
          12,518,625  
Belgium — 0.2%            

Elia Group SA/NV

    2,758       364,211  

UCB SA

    10,047       897,962  
   

 

 

 
      1,262,173  
Brazil — 0.2%            

Localiza Rent a Car SA

    84,907       894,560  
   

 

 

 
Canada — 19.4%            

Alimentation Couche-Tard Inc.

    26,792       1,347,034  

Altius Minerals Corp.

    3,349       56,969  

Atco Ltd., Class I, NVS

    14,863       476,408  

Badger Infrastructure Solutions Ltd.

    4,334       104,798  

Barrick Gold Corp.

    284,862       5,288,337  

Brookfield Asset Management Ltd.

    16,745       548,503  

Brookfield Corp.

    111,305       3,626,163  

Canadian Imperial Bank of Commerce

    230,293       9,765,514  

Canadian National Railway Co.

    52,008       6,136,675  

Canadian Natural Resources Ltd.

    204,486       11,315,951  

Canadian Tire Corp. Ltd., Class A, NVS

    9,259       1,208,294  

Canadian Western Bank

    21,670       397,003  

Capital Power Corp.

    30,141       928,651  

Cargojet Inc.(a)

    985       80,236  

CCL Industries Inc., Class B, NVS

    9,850       489,330  

Cogeco Communications Inc.

    3,940       191,913  

Dollarama Inc.

    4,334       259,014  

Empire Co. Ltd., Class A, NVS

    13,790       369,672  

Enghouse Systems Ltd.

    4,137       117,085  

EQB Inc.

    2,561       110,475  

Finning International Inc.

    20,291       505,811  

FirstService Corp.

    1,308       184,301  

Fortis Inc.

    92,590       3,935,846  

Franco-Nevada Corp.

    8,471       1,235,581  

George Weston Ltd.

    4,334       574,339  

Great-West Lifeco Inc.

    68,359       1,811,779  

Hydro One Ltd.(b)

    45,310       1,290,069  

iA Financial Corp. Inc.

    14,972       948,947  

Imperial Oil Ltd.

    16,745       851,560  

Intact Financial Corp.

    16,942       2,424,655  
Security   Shares     Value  

 

 
Canada (continued)            

Jamieson Wellness Inc.(b)

    4,531     $ 112,278  

Loblaw Companies Ltd.

    9,653       879,734  

Magna International Inc.

    39,991       2,142,026  

Manulife Financial Corp.

    448,053       8,221,764  

Maple Leaf Foods Inc.

    11,229       217,269  

Metro Inc.

    17,730       975,248  

North West Co. Inc. (The)

    9,062       253,387  

Open Text Corp.

    32,702       1,261,380  

Parkland Corp.

    29,156       698,967  

Power Corp. of Canada

    141,052       3,604,836  

Premium Brands Holdings Corp.

    5,516       408,098  

Quebecor Inc., Class B

    27,383       676,926  

Ritchie Bros Auctioneers Inc.

    8,865       498,775  

Royal Bank of Canada

    149,475       14,294,964  

Saputo Inc.

    23,443       606,587  

Stantec Inc.

    4,728       276,403  

Stella-Jones Inc.

    3,743       143,433  

Sun Life Financial Inc.

    117,018       5,466,901  

TFI International Inc.

    3,546       423,132  

TMX Group Ltd.

    6,501       656,594  

Toromont Industries Ltd.

    5,319       436,579  

Toronto-Dominion Bank (The)

    230,293       13,793,724  

Waste Connections Inc.

    8,274       1,151,565  

Wheaton Precious Metals Corp.

    31,914       1,537,020  
   

 

 

 
          115,318,503  
China — 6.1%            

Bank of China Ltd., Class A

    2,068,500       1,017,026  

Bosideng International Holdings Ltd.

    788,000       439,714  

China Coal Energy Co. Ltd.

    78,800       90,517  

China Coal Energy Co. Ltd., Class H

    591,000       448,500  

China Construction Bank Corp., Class A

    236,400       204,337  

China Foods Ltd.

    394,000       146,903  

China Medical System Holdings Ltd.

    394,000       621,641  

China Merchants Bank Co. Ltd., Class A

    354,600       1,765,656  

China Merchants Bank Co. Ltd., Class H

    689,500       3,501,293  

China National Nuclear Power Co. Ltd., Class A

    197,000       183,356  

China Railway Group Ltd., Class A

    275,800       275,975  

China Railway Group Ltd., Class H

    788,000       480,867  

China Resources Gas Group Ltd.

    197,000       724,646  

China Suntien Green Energy Corp. Ltd., Class H

    591,000       258,510  

China Water Affairs Group Ltd.

    92,000       75,119  

Citic Pacific Special Steel Group Co. Ltd.

    78,800       203,833  

CSPC Pharmaceutical Group Ltd.

    1,064,000       1,043,057  

ENN Energy Holdings Ltd.

    78,800       1,079,006  

Greentown China Holdings Ltd.

    115,500       149,488  

Haier Smart Home Co. Ltd., Class H

    236,400       740,233  

Harbin Boshi Automation Co. Ltd.

    16,400       39,031  

Hengli Petrochemical Co. Ltd., Class A

    157,600       371,784  

Huaxia Bank Co. Ltd., Class A

    363,800       285,070  

Industrial & Commercial Bank of China Ltd., Class A

    2,659,500       1,726,511  

Industrial Bank Co. Ltd., Class A

    492,500       1,212,081  

Inspur Electronic Information Industry Co. Ltd., Class A

    16,400       83,970  

Jiangsu King’s Luck Brewery JSC Ltd., Class A

    19,700       185,854  

Kweichow Moutai Co. Ltd., Class A

    5,200       1,373,390  

Lao Feng Xiang Co. Ltd.

    19,700       154,840  

Luzhou Laojiao Co. Ltd., Class A

    6,000       221,543  

Metallurgical Corp. of China Ltd., Class A

    177,300       100,595  

Midea Group Co. Ltd., Class A

    82,000       641,518  

Ping An Insurance Group Co. of China Ltd., Class A

    177,300       1,174,342  

Ping An Insurance Group Co. of China Ltd., Class H

    1,674,500       10,832,696  

 

 

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

    59  


Schedule of Investments  (continued)

March 31, 2023

  

iShares® International Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
China (continued)            

Postal Savings Bank of China Co. Ltd., Class H(b)

    2,167,000     $ 1,285,153  

Shanghai Baosight Software Co. Ltd., Class A

    90       763  

Shanghai Tunnel Engineering Co. Ltd., Class A

    118,200       98,036  

Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A

    93,600       110,674  

Sinoma Science & Technology Co. Ltd., Class A

    16,400       57,648  

Tsingtao Brewery Co. Ltd., Class H

    38,000       415,348  

Wuliangye Yibin Co. Ltd., Class A

    25,600       731,274  

Xiamen Xiangyu Co. Ltd.

    35,700       55,857  

Yankuang Energy Group Co. Ltd., Class A

    59,100       306,165  

Yuexiu Property Co. Ltd.

    394,000       595,735  

Zhengzhou Coal Mining Machinery Group Co. Ltd.

    19,700       40,371  

Zhengzhou Coal Mining Machinery Group Co. Ltd., Class H

    78,800       79,391  

Zhongsheng Group Holdings Ltd.

    98,500       485,347  
   

 

 

 
      36,114,664  
Colombia — 0.1%            

Grupo Argos SA

    70,920       138,429  

Grupo Nutresa SA

    7,486       80,374  

Interconexion Electrica SA ESP

    102,834       334,536  
   

 

 

 
      553,339  
Denmark — 3.6%            

Carlsberg AS, Class B

    11,426       1,772,937  

Coloplast A/S, Class B

    14,775       1,945,383  

DSV A/S

    3,940       763,956  

Novo Nordisk A/S, Class B

    90,423       14,361,094  

Orsted AS(b)

    19,503       1,662,981  

Royal Unibrew A/S

    5,713       498,010  

Scandinavian Tobacco Group A/S, Class A(b)

    17,139       341,216  
   

 

 

 
      21,345,577  
Finland — 0.6%            

Huhtamaki OYJ

    11,426       424,472  

Kesko OYJ, Class A

    23,825       515,946  

Kesko OYJ, Class B

    67,374       1,447,955  

Olvi OYJ, Class A

    3,152       102,208  

Uponor OYJ

    10,638       196,920  

Valmet OYJ

    31,914       1,036,049  
   

 

 

 
      3,723,550  
France — 4.3%            

Equasens

    591       45,944  

Sanofi

    154,842       16,797,061  

Schneider Electric SE

    52,993       8,856,390  

Thermador Groupe

    985       104,837  
   

 

 

 
      25,804,232  
Germany — 5.8%            

Adesso SE

    197       31,538  

Atoss Software AG

    394       71,245  

Bechtle AG

    5,516       264,147  

Brenntag SE

    15,366       1,156,386  

Deutsche Boerse AG

    18,321       3,567,283  

E.ON SE

    527,763       6,583,694  

Eckert & Ziegler Strahlen- und Medizintechnik AG

    985       44,522  

Encavis AG

    9,850       169,210  

Fresenius Medical Care AG & Co. KGaA

    36,642       1,555,242  

Fresenius SE & Co. KGaA

    76,042       2,053,380  

FUCHS PETROLUB SE

    5,910       202,280  

LANXESS AG

    10,441       429,574  

Nemetschek SE

    2,364       163,189  

SAP SE

    94,166           11,890,384  

STRATEC SE

    394       26,860  

Symrise AG

    6,698       728,903  
Security   Shares     Value  

 

 
Germany (continued)            

Vonovia SE

    291,363     $ 5,487,766  
   

 

 

 
          34,425,603  
Hong Kong — 2.5%            

AIA Group Ltd.

    1,024,400       10,743,247  

CK Infrastructure Holdings Ltd.

    197,000       1,071,852  

Kerry Logistics Network Ltd.

    98,500       153,026  

Swire Properties Ltd.

    236,400       608,423  

Techtronic Industries Co. Ltd.

    197,000       2,134,516  

VSTECS Holdings Ltd.

    394,000       230,999  
   

 

 

 
          14,942,063  
India — 2.1%            

Aegis Logistics Ltd.

    16,351       75,533  

Asian Paints Ltd.

    14,184       477,883  

Astral Ltd.

    978       15,951  

Balaji Amines Ltd.

    197       4,671  

Berger Paints India Ltd.

    3,743       26,545  

Bharat Electronics Ltd.

    285,847       340,210  

CRISIL Ltd.

    1,773       69,514  

Grindwell Norton Ltd.

    1,576       36,093  

Indraprastha Gas Ltd.

    33,096       172,974  

Infosys Ltd.

    386,514       6,757,476  

ITC Ltd.

    459,207       2,148,576  

KEI Industries Ltd.

    985       20,426  

Larsen & Toubro Infotech Ltd.(b)

    2,385       138,884  

Mphasis Ltd.

    8,820       193,897  

Persistent Systems Ltd.

    1,576       88,900  

Pidilite Industries Ltd.

    3,152       90,416  

Radico Khaitan Ltd.

    743       10,823  

Reliance Industries Ltd.

    42,158       1,198,745  

Reliance Industries Ltd., GDR(b)

    5,769       325,480  

Schaeffler India Ltd.

    1,182       41,326  

Tata Elxsi Ltd.

    1,182       86,067  

TTK Prestige Ltd.

    1,322       11,271  

UltraTech Cement Ltd.

    2,664       247,548  

Vinati Organics Ltd.

    164       3,614  

ZF Commercial Vehicle Control Systems India Ltd.

    199       25,200  
   

 

 

 
      12,608,023  
Indonesia — 0.5%            

Bank Central Asia Tbk PT

    5,003,800       2,927,444  

Bank Pembangunan Daerah Jawa Timur Tbk PT

    847,100       41,561  
   

 

 

 
      2,969,005  
Ireland — 1.2%            

CRH PLC

    91,408       4,617,957  

Kerry Group PLC, Class A

    7,880       785,835  

Smurfit Kappa Group PLC

    45,704       1,657,688  
   

 

 

 
      7,061,480  
Italy — 0.9%            

A2A SpA

    516,731       824,605  

ACEA SpA

    12,608       172,394  

Buzzi Unicem SpA

    8,668       210,385  

DiaSorin SpA

    985       103,801  

Interpump Group SpA

    2,758       154,664  

Iren SpA

    158,979       304,921  

Italgas SpA

    124,504       759,391  

Recordati Industria Chimica e Farmaceutica SpA

    13,987       591,641  

Reply SpA

    985       123,689  

Terna - Rete Elettrica Nazionale

    282,892       2,321,804  
   

 

 

 
      5,567,295  

 

 

60  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

March 31, 2023

  

iShares® International Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
Japan — 18.9%            

Aeon Mall Co. Ltd.

    19,700     $ 258,572  

AGC Inc.

    42,800       1,595,624  

Aica Kogyo Co. Ltd.

    19,700       452,693  

Air Water Inc.

    39,800       500,136  

Alfresa Holdings Corp.

    39,400       504,822  

Astellas Pharma Inc.

    256,100       3,638,493  

Chiba Bank Ltd. (The)

    98,500       635,745  

COMSYS Holdings Corp.

    19,700       363,843  

DCM Holdings Co. Ltd.

    39,400       343,338  

Denka Co. Ltd.

    19,700       407,688  

Elecom Co. Ltd.

    19,700       187,370  

EXEO Group Inc.

    19,700       356,586  

FUJIFILM Holdings Corp.

    29,400       1,492,431  

Fujitec Co. Ltd.

    19,700       489,995  

Hisamitsu Pharmaceutical Co. Inc.

    19,700       563,453  

Hulic Co. Ltd.

    118,200       972,225  

Itochu Techno-Solutions Corp.

    19,700       485,407  

Kandenko Co. Ltd.

    19,700       139,166  

Kao Corp.

    78,800       3,067,311  

KDDI Corp.

    256,100       7,897,547  

Kobayashi Pharmaceutical Co. Ltd.

    500       30,580  

Kokuyo Co. Ltd.

    19,700       279,696  

Kubota Corp.

    118,200       1,792,069  

Kurita Water Industries Ltd.

    2,600       119,098  

Kyowa Kirin Co. Ltd.

    19,700       430,081  

Lasertec Corp.

    700       124,375  

M3 Inc.

    19,700       495,830  

MCJ Co. Ltd.

    19,700       138,691  

Medipal Holdings Corp.

    19,700       268,480  

Mitsubishi Corp.

    216,700       7,787,429  

Mitsubishi UFJ Financial Group Inc.

    1,930,600           12,372,574  

MonotaRO Co. Ltd.

    19,700       248,134  

Morinaga & Co. Ltd./Japan

    1,500       42,484  

Murata Manufacturing Co. Ltd.

    59,100       3,601,863  

NEC Networks & System Integration Corp.

    19,700       240,651  

Nichias Corp.

    19,700       397,036  

Nippon Gas Co. Ltd.

    19,700       285,895  

Nippon Sanso Holdings Corp.

    19,900       359,525  

Nippon Telegraph & Telephone Corp.

    180,800       5,402,795  

Nissan Chemical Corp.

    19,700       894,715  

Nisshin Seifun Group Inc.

    39,400       461,094  

Nitori Holdings Co. Ltd.

    2,800       338,133  

Nitto Denko Corp.

    21,100       1,365,619  

Nomura Real Estate Holdings Inc.

    20,700       458,373  

Nomura Research Institute Ltd.

    40,800       954,218  

NSD Co. Ltd.

    19,700       355,349  

NTT Data Corp.

    39,400       517,974  

Obic Co. Ltd.

    2,100       332,626  

Open House Group Co. Ltd.

    4,500       168,750  

PALTAC Corp.

    200       7,599  

Pan Pacific International Holdings Corp.

    19,700       381,121  

Raito Kogyo Co. Ltd.

    19,700       290,060  

Sangetsu Corp.

    19,700       332,306  

SBI Holdings Inc.

    74,400       1,477,571  

SCSK Corp.

    19,900       291,374  

Sekisui House Ltd.

    128,000       2,608,798  

Seven & i Holdings Co. Ltd.

    59,100       2,669,790  

Shin-Etsu Chemical Co. Ltd.

    239,000       7,758,184  

Shionogi & Co. Ltd.

    21,100       951,726  

Ship Healthcare Holdings Inc.

    200       3,684  
Security   Shares     Value  

 

 
Japan (continued)            

Sohgo Security Services Co. Ltd.

    4,200     $ 113,119  

Sompo Holdings Inc.

    67,200       2,662,807  

Sony Group Corp.

    39,400       3,588,685  

Sumitomo Mitsui Financial Group Inc.

    236,400       9,460,153  

Sumitomo Realty & Development Co. Ltd.

    39,400       889,709  

Sundrug Co. Ltd.

    19,700       540,471  

TDK Corp.

    39,400       1,414,307  

TechnoPro Holdings Inc.

    19,700       546,399  

Terumo Corp.

    39,400       1,065,585  

TIS Inc.

    19,700       520,979  

Tokio Marine Holdings Inc.

    328,500       6,321,963  

Tokyo Tatemono Co. Ltd.

    39,400       481,043  

Unicharm Corp.

    20,700       850,888  

USS Co. Ltd.

    39,400       683,573  

Valor Holdings Co. Ltd.

    19,900       289,690  

Yakult Honsha Co. Ltd.

    8,200       595,815  

Yamaguchi Financial Group Inc.

    39,400       241,408  

Yamato Holdings Co. Ltd.

    39,800       683,178  
   

 

 

 
          112,338,567  
Malaysia — 0.0%            

Allianz Malaysia Bhd

    19,900       62,004  
   

 

 

 
Mexico — 0.7%            

America Movil SAB de CV(a)

    2,150,100       2,258,679  

Arca Continental SAB de CV

    78,800       715,585  

Bolsa Mexicana de Valores SAB de CV

    137,900       295,467  

Grupo Bimbo SAB de CV, Series A

    98,500       495,670  

Grupo Comercial Chedraui SA de CV

    19,700       113,149  

Orbia Advance Corp. SAB de CV

    256,100       556,826  
   

 

 

 
      4,435,376  
Netherlands — 1.1%            

IMCD NV

    3,349       547,614  

NN Group NV

    100,076       3,633,749  

Wolters Kluwer NV

    18,912       2,387,384  
   

 

 

 
      6,568,747  
New Zealand — 0.2%            

EBOS Group Ltd.

    17,730       516,652  

Mainfreight Ltd.

    10,047       440,865  

Summerset Group Holdings Ltd.

    31,717       174,830  
   

 

 

 
      1,132,347  
Norway — 0.1%            

Borregaard ASA

    7,683       128,495  

Medistim ASA

    1,379       39,514  

TOMRA Systems ASA

    12,411       209,527  
   

 

 

 
      377,536  
Philippines — 0.1%            

International Container Terminal Services Inc.

    116,230       456,364  
   

 

 

 
Poland — 0.0%            

Neuca SA

    197       27,977  
   

 

 

 
Portugal — 0.0%            

Sonae SGPS SA

    188,529       205,728  
   

 

 

 
Saudi Arabia — 0.1%            

Mouwasat Medical Services Co.

    3,349       210,322  

United Electronics Co.

    10,943       226,987  
   

 

 

 
          437,309  
South Africa — 0.0%            

PSG Konsult Ltd.

    203,501       138,067  
   

 

 

 

 

 

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

    61  


Schedule of Investments  (continued)

March 31, 2023

  

iShares® International Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
South Korea — 0.7%            

AfreecaTV Co. Ltd.

    591     $ 38,843  

Cheil Worldwide Inc.

    18,912       270,956  

CS Wind Corp.

    1,515       85,099  

Daesang Corp.

    2,866       43,258  

Hyundai Home Shopping Network Corp.

    743       27,641  

KIWOOM Securities Co. Ltd.

    3,546       276,600  

Kolmar BNH Co. Ltd.

    2,364       43,205  

Korea Zinc Co. Ltd.

    2,364       1,005,797  

Kumho Petrochemical Co. Ltd.

    8,471       937,008  

LEENO Industrial Inc.

    1,182       131,084  

NAVER Corp.

    3,546       555,626  

NICE Information Service Co. Ltd.

    5,516       52,410  

Park Systems Corp.

    357       41,945  

Samsung Electro-Mechanics Co. Ltd.

    4,180       493,538  

SK Gas Ltd.

    197       18,012  

Youngone Corp.

    3,546       124,775  

Youngone Holdings Co. Ltd.

    743       36,717  
   

 

 

 
      4,182,514  
Spain — 2.6%            

Iberdrola SA

    1,204,261       15,002,440  

Vidrala SA

    2,049       224,410  

Viscofan SA

    5,516       395,031  
   

 

 

 
          15,621,881  
Sweden — 0.7%            

AAK AB

    11,426       206,878  

Assa Abloy AB, Class B

    79,391       1,901,611  

Atrium Ljungberg AB, Class B

    7,562       123,529  

Bravida Holding AB(b)

    27,580       311,978  

Castellum AB(a)

    83,134       967,163  

Catena AB

    3,349       124,638  

Heba Fastighets AB

    9,062       24,928  

Lifco AB, Class B

    7,880       169,913  

NP3 Fastigheter AB

    2,758       49,763  

Platzer Fastigheter Holding AB, Class B

    8,865       68,793  
   

 

 

 
      3,949,194  
Switzerland — 12.1%            

ALSO Holding AG, Registered

    788       160,412  

Chocoladefabriken Lindt & Spruengli AG, Participation Certificates, NVS

    57       673,206  

Chocoladefabriken Lindt & Spruengli AG, Registered

    6       710,617  

DKSH Holding AG

    4,925       397,055  

Geberit AG, Registered

    4,531       2,530,324  

Givaudan SA, Registered

    985       3,205,966  

Logitech International SA, Registered

    16,548       965,849  

Nestle SA, Registered

    154,251       18,807,902  

Novartis AG, Registered

    208,820       19,173,543  

Partners Group Holding AG

    4,137       3,895,906  

Roche Holding AG, Bearer

    4,334       1,302,327  

Roche Holding AG, NVS

    58,903       16,831,088  

Siegfried Holding AG, Registered

    86       63,274  

Sika AG, Registered

    8,668       2,431,334  

Tecan Group AG, Registered

    414       181,348  

Temenos AG, Registered

    4,531       315,295  

VZ Holding AG

    1,773       145,619  
   

 

 

 
          71,791,065  
Taiwan — 0.4%            

Advantech Co. Ltd.

    42,000       513,821  

Lotes Co. Ltd.

    6,155       186,031  

Parade Technologies Ltd.

    13,000       450,084  
Security   Shares     Value  

 

 
Taiwan (continued)            

Silergy Corp.

    9,000     $ 142,889  

Sinbon Electronics Co. Ltd.

    22,000       247,603  

Unimicron Technology Corp.

    197,000       960,822  

Voltronic Power Technology Corp.

    2,000       113,887  
   

 

 

 
      2,615,137  
Turkey — 0.0%            

Aselsan Elektronik Sanayi Ve Ticaret AS

    9,958       26,992  

Otokar Otomotiv Ve Savunma Sanayi AS

    776       37,126  

Tofas Turk Otomobil Fabrikasi AS

    20,488       199,895  
   

 

 

 
      264,013  
United Kingdom — 11.8%            

Advanced Medical Solutions Group PLC

    29,944       82,189  

Ashtead Group PLC

    27,383       1,681,449  

BAE Systems PLC

    452,509       5,473,604  

British American Tobacco PLC

    427,490           14,985,392  

Bunzl PLC

    32,899       1,242,680  

Chemring Group PLC

    14,775       50,999  

Clarkson PLC

    3,940       150,270  

Coca-Cola HBC AG, Class DI(c)

    27,186       744,221  

Craneware PLC

    2,561       36,331  

Cranswick PLC

    6,107       227,321  

Croda International PLC

    11,229       902,514  

DCC PLC

    19,503       1,136,854  

Dechra Pharmaceuticals PLC

    9,259       303,135  

Diageo PLC

    251,569       11,227,430  

Diploma PLC

    11,820       411,545  

Drax Group PLC

    62,055       466,114  

EMIS Group PLC

    5,319       98,423  

Ferguson PLC

    25,216       3,333,849  

Games Workshop Group PLC

    6,501       774,339  

Gamma Communications PLC

    5,713       76,625  

GlobalData PLC

    1,379       20,754  

Halma PLC

    17,730       489,463  

Hargreaves Lansdown PLC

    83,134       823,564  

Hilton Food Group PLC

    15,760       134,914  

Impax Asset Management Group PLC

    18,124       179,564  

Learning Technologies Group PLC

    28,762       45,770  

Liontrust Asset Management PLC

    23,246       294,029  

London Stock Exchange Group PLC

    23,443       2,277,011  

National Grid PLC

    955,450       12,924,370  

RELX PLC

    201,531       6,526,964  

RWS Holdings PLC

    52,796       194,736  

Sage Group PLC (The)

    127,853       1,226,932  

Sirius Real Estate Ltd.

    310,472       293,759  

Softcat PLC

    11,032       177,215  

Spectris PLC

    11,820       536,289  

Spirax-Sarco Engineering PLC

    4,531       665,254  
   

 

 

 
      70,215,872  
   

 

 

 

Total Common Stocks — 99.1%
(Cost: $577,841,135)

      589,928,390  
   

 

 

 

Preferred Stocks

   
Germany — 0.0%            

Fuchs Petrolub SE, Preference Shares, NVS

    9,259       377,530  
   

 

 

 

 

 

62  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

March 31, 2023

  

iShares® International Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
South Korea — 0.0%            

Samsung Electro-Mechanics Co. Ltd., Preference Shares

    357     $ 20,245  
   

 

 

 

Total Preferred Stocks — 0.0%
(Cost: $317,228)

      397,775  
   

 

 

 

Rights

   
Brazil — 0.0%            

Localiza Rent a Car SA, Rights,

   

(Expires 05/18/23, Strike Price BRL 41.15)

    379       982  
   

 

 

 

Total Rights — 0.0%
(Cost: $—)

      982  
   

 

 

 

Total Long-Term Investments — 99.1%
(Cost: $578,158,363)

      590,327,147  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.7%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(d)(e)(f)

    2,608,428       2,609,211  
Security   Shares     Value  

 

 
Money Market Funds (continued)            

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(d)(e)

    1,310,000     $ 1,310,000  
   

 

 

 

Total Short-Term Securities — 0.7%
(Cost: $3,919,638)

      3,919,211  
   

 

 

 

Total Investments — 99.8%
(Cost: $582,078,001)

      594,246,358  

Other Assets Less Liabilities — 0.2%

      1,173,313  
   

 

 

 

Net Assets — 100.0%

    $  595,419,671  
   

 

 

 

 

(a) 

All or a portion of this security is on loan.

(b) 

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

(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 year ended March 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer  

Value at

03/31/22

    

Purchases

at Cost

   

Proceeds

from Sale

    

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

03/31/23

    

Shares

Held at

03/31/23

     Income    

Capital

Gain

Distributions

from
Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $      $ 2,609,054 (a)    $      $ 584      $ (427   $ 2,609,211        2,608,428      $ 5,335 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    370,000        940,000 (a)                          1,310,000        1,310,000        19,818       1  
         

 

 

    

 

 

   

 

 

       

 

 

   

 

 

 
          $ 584      $ (427   $ 3,919,211         $ 25,153     $ 1  
         

 

 

    

 

 

   

 

 

       

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description  

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 
Long Contracts                           

S&P/TSX 60 Index

    3        06/15/23      $ 537      $ 6,354  

MSCI EAFE Index

    41        06/16/23        4,298        135,352  
          

 

 

 
           $ 141,706  
          

 

 

 

 

 

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

    63  


Schedule of Investments  (continued)

March 31, 2023

  

iShares® International Dividend Growth 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:

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

 

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 141,706      $      $      $      $ 141,706  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

For the period ended March 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

 

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ (31,130    $      $      $      $ (31,130
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 103,863      $      $      $      $ 103,863  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 2,727,191      

 

 

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  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 122,318,632        $ 467,609,758        $        $ 589,928,390  

Preferred Stocks

              397,775                   397,775  

Rights

     982                            982  

Short-Term Securities

                 

Money Market Funds

     3,919,211                            3,919,211  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 126,238,825        $ 468,007,533        $        $ 594,246,358  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $ 141,706        $        $        $ 141,706  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

64  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  

March 31, 2023

  

iShares® Latin America 40 ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Brazil — 41.0%            

Ambev SA, ADR

    10,721,873     $ 30,235,681  

B3 SA - Brasil, Bolsa, Balcao

    14,828,073       30,279,584  

Banco do Brasil SA

    3,483,244       26,877,975  

CCR SA

    2,706,463       6,834,975  

Centrais Eletricas Brasileiras SA

    3,095,728       20,326,890  

Localiza Rent a Car SA

    1,842,467       19,411,800  

Lojas Renner SA

    2,380,233       7,781,563  

Magazine Luiza SA(a)

    6,861,396       4,480,901  

Natura & Co. Holding SA

    2,042,340       5,318,961  

NU Holdings Ltd.(a)

    5,556,541       26,449,135  

Petroleo Brasileiro SA, ADR

    4,523,580       47,180,939  

Rede D’Or Sao Luiz SA(b)

    2,116,263       8,868,476  

Vale SA, ADR

    9,411,049       148,506,353  

WEG SA

    3,571,626       28,574,699  
   

 

 

 
      411,127,932  
Chile — 7.2%            

Banco de Chile

    105,606,185       10,256,510  

Banco Santander Chile, ADR

    378,545       6,749,457  

Cencosud SA

    3,139,030       6,065,682  

Empresas CMPC SA

    2,662,693       4,449,825  

Empresas COPEC SA

    886,635       6,257,498  

Enel Americas SA

    47,049,539       6,197,193  

Falabella SA

    1,821,715       4,189,378  

Sociedad Quimica y Minera de Chile SA, ADR(c)

    347,226       28,146,140  
   

 

 

 
      72,311,683  
Colombia — 1.7%            

Bancolombia SA, ADR

    275,246       6,916,932  

Ecopetrol SA, ADR

    597,170       6,306,115  

Interconexion Electrica SA ESP

    1,072,510       3,489,055  
   

 

 

 
      16,712,102  
Mexico — 28.1%            

America Movil SAB de CV

    48,039,746       50,465,727  

Cemex SAB de CV, NVS(a)

    36,802,650       20,198,569  

Fibra Uno Administracion SA de CV

    6,987,006       9,759,320  

Fomento Economico Mexicano SAB de CV

    4,466,173       42,579,829  

Grupo Bimbo SAB de CV, Series A

    3,340,637       16,810,708  

Grupo Financiero Banorte SAB de CV, Class O

    6,028,899       50,820,741  

Grupo Mexico SAB de CV, Series B

    7,570,851       35,850,206  

Grupo Televisa SAB, CPO

    6,162,608       6,521,694  

Wal-Mart de Mexico SAB de CV

    12,311,280       49,210,960  
   

 

 

 
          282,217,754  
Peru — 3.7%            

Credicorp Ltd.

    165,214       21,872,681  

Southern Copper Corp.

    206,754       15,764,993  
   

 

 

 
      37,637,674  
   

 

 

 

Total Common Stocks — 81.7%
(Cost: $860,082,149)

      820,007,145  
   

 

 

 
Security   Shares     Value  

 

 

Preferred Stocks

   
Brazil — 17.6%            

Banco Bradesco SA, Preference Shares, ADR

    12,934,373     $ 33,888,057  

Gerdau SA, Preference Shares, ADR

    2,631,582       12,973,701  

Itau Unibanco Holding SA, Preference Shares, ADR

    11,781,365       57,375,247  

Itausa SA, Preference Shares, NVS

    12,539,474       20,336,489  

Petroleo Brasileiro SA, Preference Shares, ADR

    5,584,142       51,820,838  
   

 

 

 
      176,394,332  
   

 

 

 

Total Preferred Stocks — 17.6%
(Cost: $275,106,198)

      176,394,332  
   

 

 

 

Rights

   
Brazil — 0.0%            

Localiza Rent a Car SA, Rights,
(Expires 05/18/23, Strike Price BRL 41.15)

    8,243       21,354  
   

 

 

 

Total Rights — 0.0%
(Cost: $—)

      21,354  
   

 

 

 

Total Long-Term Investments — 99.3%
(Cost: $1,135,188,347)

      996,422,831  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 3.5%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(d)(e)(f)

    28,490,296       28,498,843  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(d)(e)

    6,620,000       6,620,000  
   

 

 

 

Total Short-Term Securities — 3.5%
(Cost: $35,123,444)

      35,118,843  
   

 

 

 

Total Investments — 102.8%
(Cost: $1,170,311,791)

      1,031,541,674  

Liabilities in Excess of Other Assets — (2.8)%

 

    (28,408,667
   

 

 

 

Net Assets — 100.0%

    $   1,003,133,007  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

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

(c) 

All or a portion of this security is on loan.

(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

    65  


Schedule of Investments  (continued)

March 31, 2023

   iShares® Latin America 40 ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

   
    Affiliated Issuer  

Value at

03/31/22

   

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

03/31/23

   

Shares

Held at

03/31/23

    Income    

 

Capital

Gain

Distributions

from

Underlying

Funds

       
 

 

   

    

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 23,454,989     $ 5,060,743 (a)    $      $ (3,469    $ (13,420   $ 28,498,843       28,490,296     $ 104,937 (b)    $    
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    3,600,000       3,020,000 (a)                        6,620,000       6,620,000       98,321          
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   
           $ (3,469    $ (13,420   $ 35,118,843       $ 203,258     $    
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

  (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

           

Bclear MSCI Brazil Index

     81        06/16/23      $ 3,804      $ 82,755  

Mexican BOLSA Index

     65        06/16/23        1,960        36,682  
           

 

 

 
            $ 119,437  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

 

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 119,437      $      $      $      $ 119,437  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

For the period ended March 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
    

 

Foreign
Currency
Exchange
Contracts

     Interest
Rate
Contracts
     Other
Contracts
     Total  

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ (5,906,611    $      $      $      $ (5,906,611
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (510,411    $      $      $      $ (510,411
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

66  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

March 31, 2023

   iShares® Latin America 40 ETF

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 10,601,769      

 

 

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  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 820,007,145        $        $        $ 820,007,145  

Preferred Stocks

     176,394,332                            176,394,332  

Rights

     21,354                            21,354  

Short-Term Securities

                 

Money Market Funds

     35,118,843                            35,118,843  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 1,031,541,674        $        $        $ 1,031,541,674  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $ 119,437        $        $        $ 119,437  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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

    67  


Statements of Assets and Liabilities  

March 31, 2023

  

    

    

 

   

iShares

Asia 50 ETF

   

iShares

Blockchain

and Tech

ETF

   

iShares

Emerging

Markets

Infrastructure

ETF

   

iShares

Europe ETF

 

 

 

ASSETS

       

Investments, at value — unaffiliated(a)(b)

  $ 1,668,266,891     $ 6,497,415     $ 22,560,350     $ 1,825,576,336  

Investments, at value — affiliated(c)

    700,000       2,274,838       991,005       5,834,666  

Cash

    1,677       5,981       3,203       9,426  

Cash pledged for futures contracts

    516,000       1,599       2,000        

Foreign currency collateral pledged for futures contracts(d)

                      606,503  

Foreign currency, at value(e)

    2,180,173       3,902       14,361       3,110,021  

Receivables:

       

Investments sold

                2,001,334        

Securities lending income — affiliated

    2,876       16,953       201       3,909  

Dividends — unaffiliated

    4,550,178       4,824       48,626       5,032,435  

Dividends — affiliated

    5,172       40       103       9,306  

Tax reclaims

                      4,814,738  

Variation margin on futures contracts

          753             54,774  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

    1,676,222,967       8,806,305       25,621,183       1,845,052,114  
 

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES

       

Collateral on securities loaned, at value

          2,274,571       952,251       3,764,849  

Payables:

       

Investments purchased

                2,044,639        

Capital shares redeemed

                      1,001,568  

Investment advisory fees

    681,516       2,349       11,289       958,518  

IRS compliance fee for foreign withholding tax claims

                      6,283,073  

Professional fees

                      110,711  

Variation margin on futures contracts

    16,898             120        
 

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    698,414       2,276,920       3,008,299       12,118,719  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS

  $ 1,675,524,553     $ 6,529,385     $ 22,612,884     $ 1,832,933,395  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS CONSIST OF

       

Paid-in capital

  $ 1,834,932,222     $ 8,983,970     $ 56,634,068     $ 2,263,671,696  

Accumulated loss

    (159,407,669     (2,454,585     (34,021,184     (430,738,301
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS

  $ 1,675,524,553     $ 6,529,385     $ 22,612,884     $ 1,832,933,395  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETVALUE

       

Shares outstanding

    27,100,000       400,000       1,050,000       36,600,000  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value

  $ 61.83     $ 16.32     $ 21.54     $ 50.08  
 

 

 

   

 

 

   

 

 

   

 

 

 

Shares authorized

    Unlimited       Unlimited       Unlimited       Unlimited  
 

 

 

   

 

 

   

 

 

   

 

 

 

Par value

    None       None       None       None  
 

 

 

   

 

 

   

 

 

   

 

 

 

(a) Investments, at cost — unaffiliated

  $ 1,690,716,366     $ 5,826,031     $ 21,372,931     $ 1,869,099,054  

(b) Securities loaned, at value

  $     $ 2,303,103     $ 866,108     $ 3,585,971  

(c)  Investments, at cost — affiliated

  $ 700,000     $ 2,274,707     $ 990,976     $ 5,832,496  

(d) Foreign currency collateral pledged, at cost

  $     $     $     $ 638,094  

(e) Foreign currency, at cost

  $ 2,179,843     $ 3,896     $ 14,071     $ 3,083,443  

See notes to financial statements.

 

 

68  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Statements of Assets and Liabilities  (continued)

March 31, 2023

  

    

    

 

   

iShares

Future

Metaverse

Tech and

Communications

ETF

    

iShares

India 50 ETF

    

iShares

International

Developed

Property ETF

   

iShares

International

Developed

Small Cap

Value Factor

ETF

 

 

 

ASSETS

           

Investments, at value — unaffiliated(a)(b)

               $ 5,337,521      $ 578,131,122      $ 42,753,748     $ 156,497,872  

Investments, at value — affiliated(c)

                    922,455       2,137,769  

Cash

      3,547        2,940,917        9,288       5,231  

Cash pledged for futures contracts

             126,000        18,000       76,000  

Foreign currency collateral pledged for futures contracts(d)

                    5,935        

Foreign currency, at value(e)

      5,329        12,629        80,362       350,995  

Receivables:

           

Investments sold

      9,732        2,066,726              32  

Securities lending income — affiliated

                    1,095       8,071  

Dividends — unaffiliated

      4,896               240,361       953,093  

Dividends — affiliated

      6        22,740        9       176  

Tax reclaims

      274               28,987       131,190  

Variation margin on futures contracts

             16,845        7,890       16,965  
   

 

 

    

 

 

    

 

 

   

 

 

 

Total assets

      5,361,305        583,316,979        44,068,130       160,177,394  
   

 

 

    

 

 

    

 

 

   

 

 

 

LIABILITIES

           

Collateral on securities loaned, at value

                    913,028       2,137,073  

Payables:

           

Investments purchased

      8,881        3,550,377        7,798        

Deferred foreign capital gain tax

             2,563,330        3,503        

Foreign taxes

                    360        

Investment advisory fees

      2,003        431,312        17,578       39,555  

Professional fees

                    2,462        
   

 

 

    

 

 

    

 

 

   

 

 

 

Total liabilities

      10,884        6,545,019        944,729       2,176,628  
   

 

 

    

 

 

    

 

 

   

 

 

 

NET ASSETS

    $ 5,350,421      $ 576,771,960      $ 43,123,401     $ 158,000,766  
   

 

 

    

 

 

    

 

 

   

 

 

 

NET ASSETS CONSIST OF

           

Paid-in capital

    $ 5,104,279      $ 301,258,434      $ 98,016,160     $ 170,287,914  

Accumulated earnings (loss)

      246,142        275,513,526        (54,892,759     (12,287,148
   

 

 

    

 

 

    

 

 

   

 

 

 

NET ASSETS

    $ 5,350,421      $ 576,771,960      $ 43,123,401     $ 158,000,766  
   

 

 

    

 

 

    

 

 

   

 

 

 

NET ASSETVALUE

           

Shares outstanding

      200,000        14,000,000        1,600,000       5,000,000  
   

 

 

    

 

 

    

 

 

   

 

 

 

Net asset value

    $ 26.75      $ 41.20      $ 26.95     $ 31.60  
   

 

 

    

 

 

    

 

 

   

 

 

 

Shares authorized

      Unlimited        Unlimited        Unlimited       Unlimited  
   

 

 

    

 

 

    

 

 

   

 

 

 

Par value

      None        None        None       None  
   

 

 

    

 

 

    

 

 

   

 

 

 

(a)  Investments, at cost — unaffiliated

    $ 5,103,438      $ 578,875,509      $ 64,844,412     $ 167,015,746  

(b)  Securities loaned, at value

    $      $      $ 802,084     $ 2,037,507  

(c)  Investments, at cost — affiliated

    $      $      $ 922,174     $ 2,137,489  

(d)  Foreign currency collateral pledged, at cost

    $      $      $ 6,022     $  

(e)  Foreign currency, at cost

    $ 5,307      $ 12,604      $ 80,318     $ 350,696  

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

    69  


Statements of Assets and Liabilities  (continued)

March 31, 2023

  

    

    

 

   

iShares

International

Dividend

Growth ETF

   

  

    

iShares

Latin America 40

ETF

 

 

 

ASSETS

      

Investments, at value — unaffiliated(a)(b)

  $ 590,327,147        $ 996,422,831  

Investments, at value — affiliated(c)

    3,919,211          35,118,843  

Cash

    105          130,620  

Cash pledged for futures contracts

    165,000          983,508  

Foreign currency collateral pledged for futures contracts(d)

    30,337          304,162  

Foreign currency, at value(e)

    582,799          1,169,245  

Receivables:

      

Investments sold

             3,323  

Securities lending income — affiliated

    326          6,785  

Dividends — unaffiliated

    2,562,398          2,083,280  

Dividends — affiliated

    4,376          8,891  

Tax reclaims

    510,649           

Variation margin on futures contracts

    22,033          22,924  
 

 

 

      

 

 

 

Total assets

    598,124,381          1,036,254,412  
 

 

 

      

 

 

 

LIABILITIES

      

Collateral on securities loaned, at value

    2,609,638          28,438,149  

Payables:

      

Investments purchased

             4,288,304  

Bank borrowings

    409           

Capital shares redeemed

    27           

Deferred foreign capital gain tax

    20,352           

Investment advisory fees

    73,012          394,952  

Professional fees

    1,272           
 

 

 

      

 

 

 

Total liabilities

    2,704,710          33,121,405  
 

 

 

      

 

 

 

NET ASSETS

  $ 595,419,671        $ 1,003,133,007  
 

 

 

      

 

 

 

NET ASSETS CONSIST OF

      

Paid-in capital

  $ 615,780,185        $ 2,268,822,948  

Accumulated loss

    (20,360,514        (1,265,689,941
 

 

 

      

 

 

 

NET ASSETS

  $ 595,419,671        $ 1,003,133,007  
 

 

 

      

 

 

 

NET ASSETVALUE

      

Shares outstanding

    9,850,000          42,000,000  
 

 

 

      

 

 

 

Net asset value

  $ 60.45        $ 23.88  
 

 

 

      

 

 

 

Shares authorized

    Unlimited          Unlimited  
 

 

 

      

 

 

 

Par value

    None          None  
 

 

 

      

 

 

 

(a)  Investments, at cost — unaffiliated

  $ 578,158,363        $ 1,135,188,347  

(b)  Securities loaned, at value

  $ 2,468,734        $ 27,738,165  

(c)  Investments, at cost — affiliated

  $ 3,919,638        $ 35,123,444  

(d)  Foreign currency collateral pledged, at cost

  $ 29,938        $ 298,158  

(e)  Foreign currency, at cost

  $ 581,662        $ 1,150,735  

See notes to financial statements.

 

 

 

70  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Statements of Operations

Year Ended March 31, 2023

  

    

    

 

   

iShares

Asia 50 ETF

 

 

   

 

 

 

    

iShares

Blockchain

and Tech

ETF

 

 

 

(a) 

 

 

    

iShares

Emerging

Markets

Infrastructure

ETF

 

 

 

 

 

 

 

    

iShares

Europe ETF

 

 

 

 

INVESTMENT INCOME

                

Dividends — unaffiliated

  $ 42,253,977        $ 19,643        $ 747,876        $ 62,248,688  

Dividends — affiliated

    33,046          206          824          71,568  

Securities lending income — affiliated — net

    10,844          86,813          15,180          69,366  

Other income — unaffiliated

                               1,884,104  

Foreign taxes withheld

    (4,875,472        (742        (49,765        (5,560,615

Foreign withholding tax claims

                               11,482,506  

IRS compliance fee for foreign withholding tax claims

                               (4,340,623

Other foreign taxes

    (191                           
 

 

 

      

 

 

      

 

 

      

 

 

 

Total investment income

    37,422,204          105,920          714,115          65,854,994  
 

 

 

      

 

 

      

 

 

      

 

 

 

EXPENSES

                

Investment advisory

    7,623,024          24,511          129,926          10,031,041  

Commitment costs

    18,962                   260           

Professional

                               1,336,691  
 

 

 

      

 

 

      

 

 

      

 

 

 

Total expenses

    7,641,986          24,511          130,186          11,367,732  
 

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income

    29,780,218          81,409          583,929          54,487,262  
 

 

 

      

 

 

      

 

 

      

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

                

Net realized gain (loss) from:

                

Investments — unaffiliated

    (26,829,651        (3,174,374        (2,072,722        (46,105,974

Investments — affiliated

    (3,438        136          (205        13,404  

Capital gain distributions from underlying funds — affiliated

                               3  

Foreign currency transactions

    (418,816        101          (1,968        (285,112

Futures contracts

    (556,346        (1,154        (15,567        61,134  

In-kind redemptions — unaffiliated(b)

    (27,215,081                 354,069          92,398,942  
 

 

 

      

 

 

      

 

 

      

 

 

 
    (55,023,332        (3,175,291        (1,736,393        46,082,397  
 

 

 

      

 

 

      

 

 

      

 

 

 

Net change in unrealized appreciation (depreciation) on:

                

Investments — unaffiliated

    (146,728,195        671,384          591,564          (60,341,089

Investments — affiliated

             131          546          1,854  

Foreign currency translations

    27,505          4          520          15,518  

Futures contracts

    (63,530        750          (1,832        32,693  
 

 

 

      

 

 

      

 

 

      

 

 

 
    (146,764,220        672,269          590,798          (60,291,024
 

 

 

      

 

 

      

 

 

      

 

 

 

Net realized and unrealized loss

    (201,787,552        (2,503,022        (1,145,595        (14,208,627
 

 

 

      

 

 

      

 

 

      

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

  $ (172,007,334      $ (2,421,613      $ (561,666      $ 40,278,635  
 

 

 

      

 

 

      

 

 

      

 

 

 

 

(a) 

For the period from April 25, 2022 (commencement of operations) to March 31, 2023.

(b) 

See Note 2 of the Notes to Financial Statements.

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

    71  


Statements of Operations  (continued)

Year Ended March 31, 2023

  

    

    

 

   

iShares

Future

Metaverse

Tech and

Communications

 

 

 

 

 

   

iShares

India 50 ETF

 

 

   

iShares

International

Developed

 

 

 

   

iShares

International

Developed

Small Cap

Value Factor

 

 

 

 

 

      ETF (a)      (Consolidated )      Property ETF       ETF  

 

 

INVESTMENT INCOME

                    

Dividends — unaffiliated

    $ 8,748     $ 8,692,565     $ 2,173,940     $ 6,319,264  

Dividends — affiliated

      6       229,967       401       1,883  

Securities lending income — affiliated — net

                  23,438       26,954  

Other income — unaffiliated

                  62        

Foreign taxes withheld

      (665     (1,920,511     (198,651     (623,112

Foreign withholding tax claims

                  24,774        
   

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

      8,089       7,002,021       2,023,964       5,724,989  
   

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

         

Investment advisory

      2,899       5,249,288       240,576       588,646  

Commitment costs

            7,387              

Professional

                  2,483        

Interest expense

            253,126              
   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

      2,899       5,509,801       243,059       588,646  

Less:

         

Investment advisory fees waived

                        (147,162
   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

      2,899       5,509,801       243,059       441,484  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      5,190       1,492,220       1,780,905       5,283,505  
   

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

         

Net realized gain (loss) from:

         

Investments — unaffiliated(b)

      6,851       338,548,316       (1,643,911     (2,536,783

Investments — affiliated

                  125       449  

Capital gain distributions from underlying funds — affiliated

            18              

Foreign currency transactions

      (3     (2,516,535     (32,807     (56,406

Futures contracts

            (294,979     (21,721     76,788  

In-kind redemptions — unaffiliated(c)

                  (1,097,678      
   

 

 

   

 

 

   

 

 

   

 

 

 
      6,848       335,736,820       (2,795,992     (2,515,952
   

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

         

Investments — unaffiliated(d)

      234,083       (390,353,096     (12,825,483     (9,754,481

Investments — affiliated

                  154       283  

Foreign currency translations

      21       1,977       3,657       8,043  

Futures contracts

            21,880       (7,904     (249
   

 

 

   

 

 

   

 

 

   

 

 

 
      234,104       (390,329,239     (12,829,576     (9,746,404
   

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain (loss)

      240,952       (54,592,419     (15,625,568     (12,262,356
   

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

    $ 246,142     $ (53,100,199   $ (13,844,663   $ (6,978,851
   

 

 

   

 

 

   

 

 

   

 

 

 

(a)  For the period from February 14, 2023 (commencement of operations) to March 31, 2023.

         

(b)  Net of foreign capital gain tax and capital gain tax refund, if applicable

    $     $ (20,469,569   $ (376   $  

(c)  See Note 2 of the Notes to Financial Statements.

         

(d)  Net of reduction in deferred foreign capital gain tax of

    $     $ 21,974,458     $ 9,685     $  

See notes to financial statements.

 

 

72  

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Statements of Operations  (continued)

Year Ended March 31, 2023

  

    

    

 

   

iShares

International

Dividend

Growth ETF

   

iShares

Latin America

40 ETF

 

 

 

INVESTMENT INCOME

   

Dividends — unaffiliated

  $ 14,719,013     $ 133,994,753  

Dividends — affiliated

    19,818       98,321  

Interest — unaffiliated

    4,997        

Securities lending income — affiliated — net

    5,335       104,937  

Other income — unaffiliated

    37        

Foreign taxes withheld

    (1,520,195     (5,655,392

Foreign withholding tax claims

    12,687        
 

 

 

   

 

 

 

Total investment income

    13,241,692       128,542,619  
 

 

 

   

 

 

 

EXPENSES

   

Investment advisory

    652,212       5,454,026  

Interest expense

    1,969        

Commitment costs

    1,921       14,813  

Professional

    1,272        
 

 

 

   

 

 

 

Total expenses

    657,374       5,468,839  
 

 

 

   

 

 

 

Net investment income

    12,584,318       123,073,780  
 

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

   

Investments — unaffiliated(a)

    (27,369,878     (212,716,560

Investments — affiliated

    584       (3,469

Capital gain distributions from underlying funds — affiliated

    1        

Foreign currency transactions

    (77,536     (163,020

Futures contracts

    (31,130     (5,906,611

In-kind redemptions — unaffiliated(b)

          10,857,200  
 

 

 

   

 

 

 
    (27,477,959     (207,932,460
 

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

   

Investments — unaffiliated(c)

    10,859,367       (181,418,033

Investments — affiliated

    (427     (13,420

Foreign currency translations

    17,497       79,945  

Futures contracts

    103,863       (510,411
 

 

 

   

 

 

 
    10,980,300       (181,861,919
 

 

 

   

 

 

 

Net realized and unrealized loss

    (16,497,659     (389,794,379
 

 

 

   

 

 

 

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ (3,913,341   $ (266,720,599
 

 

 

   

 

 

 

(a) Net of foreign capital gain tax and capital gain tax refund, if applicable

  $ (39,214   $  

(b) See Note 2 of the Notes to Financial Statements.

   

(c)  Net of reduction in deferred foreign capital gain tax of

  $ 146,252     $  

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

    73  


Statements of Changes in Net Assets

 

    iShares
Asia 50 ETF
    iShares
Blockchain and
Tech ETF
 
             
   

Year Ended

03/31/23

 

 

      

Year Ended

03/31/22

 

 

      

Period From

04/25/22

to 03/31/23

 

(a) 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

           

OPERATIONS

           

Net investment income

  $ 29,780,218              $ 28,699,918                     $ 81,409  

Net realized gain (loss)

    (55,023,332        100,321,770          (3,175,291

Net change in unrealized appreciation (depreciation)

    (146,764,220        (756,399,361        672,269  
 

 

 

      

 

 

      

 

 

 

Net decrease in net assets resulting from operations

    (172,007,334        (627,377,673        (2,421,613
 

 

 

      

 

 

      

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(b)

           

Decrease in net assets resulting from distributions to shareholders

    (36,273,723        (35,774,281        (32,972
 

 

 

      

 

 

      

 

 

 

CAPITAL SHARE TRANSACTIONS

           

Net increase (decrease) in net assets derived from capital share transactions

    (1,319,572        (624,392,740        8,983,970  
 

 

 

      

 

 

      

 

 

 

NET ASSETS

           

Total increase (decrease) in net assets

    (209,600,629        (1,287,544,694        6,529,385  

Beginning of period

    1,885,125,182          3,172,669,876           
 

 

 

      

 

 

      

 

 

 

End of period

  $ 1,675,524,553        $ 1,885,125,182        $ 6,529,385  
 

 

 

      

 

 

      

 

 

 

 

(a) 

Commencement of operations.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

74  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Statements of Changes in Net Assets (continued)

 

    iShares
Emerging Markets Infrastructure ETF
   

  

    iShares
Europe ETF
 
                   
   

  

   

Year Ended

03/31/23

          

Year Ended

03/31/22

                

Year Ended

03/31/23

          

Year Ended

03/31/22

 

 

 

INCREASE (DECREASE) IN NET ASSETS

                    

OPERATIONS

                    

Net investment income

    $ 583,929                 $ 655,382          $ 54,487,262                 $ 46,610,305  

Net realized gain (loss)

      (1,736,393        (1,282,326          46,082,397          (27,424,827

Net change in unrealized appreciation (depreciation)

      590,798          76,169            (60,291,024        3,559,544  
   

 

 

      

 

 

        

 

 

      

 

 

 

Net increase (decrease) in net assets resulting from operations

      (561,666        (550,775          40,278,635          22,745,022  
   

 

 

      

 

 

        

 

 

      

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

                    

Decrease in net assets resulting from distributions to shareholders

      (641,405        (642,264          (50,928,655        (56,175,033
   

 

 

      

 

 

        

 

 

      

 

 

 

CAPITAL SHARE TRANSACTIONS

                    

Net increase (decrease) in net assets derived from capital share transactions

      3,220,760          5,705,641            (100,395,818        311,464,772  
   

 

 

      

 

 

        

 

 

      

 

 

 

NET ASSETS

                    

Total increase (decrease) in net assets

      2,017,689          4,512,602            (111,045,838        278,034,761  

Beginning of year

      20,595,195          16,082,593            1,943,979,233          1,665,944,472  
   

 

 

      

 

 

        

 

 

      

 

 

 

End of year

    $ 22,612,884        $ 20,595,195          $ 1,832,933,395        $ 1,943,979,233  
   

 

 

      

 

 

        

 

 

      

 

 

 

 

(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

    75  


Statements of Changes in Net Assets (continued)

 

    iShares
Future
Metaverse Tech
and
Communications
ETF
    iShares
India 50 ETF
(Consolidated)
 
             
     

Period From
02/14/23

to 03/31/23

 
(a)  

 

   

Year Ended

03/31/23

 

 

   

Year Ended

03/31/22

 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

       

OPERATIONS

       

Net investment income

             $ 5,190     $ 1,492,220     $ 661,178  

Net realized gain

      6,848       335,736,820       52,516,496  

Net change in unrealized appreciation (depreciation)

      234,104       (390,329,239     16,573,355  
   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

      246,142       (53,100,199     69,751,029  
   

 

 

   

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(b)

       

Decrease in net assets resulting from distributions to shareholders

            (21,001,621     (48,495,153
   

 

 

   

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

       

Net increase (decrease) in net assets derived from capital share transactions

      5,104,279       (12,354,375     (49,311,607
   

 

 

   

 

 

   

 

 

 

NET ASSETS

       

Total increase (decrease) in net assets

      5,350,421       (86,456,195     (28,055,731

Beginning of period

            663,228,155       691,283,886  
   

 

 

   

 

 

   

 

 

 

End of period

    $ 5,350,421     $ 576,771,960     $ 663,228,155  
   

 

 

   

 

 

   

 

 

 

 

(a) 

Commencement of operations.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

76  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Statements of Changes in Net Assets (continued)

 

    iShares
International Developed Property ETF
       iShares
International Developed Small Cap
Value Factor ETF
 
                
   

Year Ended

03/31/23

      

Year Ended

03/31/22

      

Year Ended

03/31/23

      

Year Ended

03/31/22

 

 

 

INCREASE (DECREASE) IN NET ASSETS

                

OPERATIONS

                

Net investment income

  $ 1,780,905        $ 2,144,487        $ 5,283,505        $ 1,194,731  

Net realized loss

    (2,795,992        (1,322,252        (2,515,952        (452,059

Net change in unrealized appreciation (depreciation)

    (12,829,576        1,609,503          (9,746,404        (723,621
 

 

 

      

 

 

      

 

 

      

 

 

 

Net increase (decrease) in net assets resulting from operations

    (13,844,663        2,431,738          (6,978,851        19,051  
 

 

 

      

 

 

      

 

 

      

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

                

Decrease in net assets resulting from distributions to shareholders

    (977,169        (3,007,345        (4,915,147        (407,661
 

 

 

      

 

 

      

 

 

      

 

 

 

CAPITAL SHARE TRANSACTIONS

                

Net increase (decrease) in net assets derived from capital share transactions

    (5,900,739        (18,963,064        5,713,393          157,695,420  
 

 

 

      

 

 

      

 

 

      

 

 

 

NET ASSETS

                

Total increase (decrease) in net assets

    (20,722,571        (19,538,671        (6,180,605        157,306,810  

Beginning of year

    63,845,972          83,384,643          164,181,371          6,874,561  
 

 

 

      

 

 

      

 

 

      

 

 

 

End of year

  $ 43,123,401        $ 63,845,972        $ 158,000,766        $ 164,181,371  
 

 

 

      

 

 

      

 

 

      

 

 

 

 

(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

    77  


Statements of Changes in Net Assets (continued)

 

    iShares
International Dividend Growth ETF
       iShares
Latin America 40 ETF
 
                
         

Year Ended

03/31/23

      

Year Ended

03/31/22

      

Year Ended

03/31/23

      

Year Ended

03/31/22

 

 

 

INCREASE (DECREASE) IN NET ASSETS

                  

OPERATIONS

                  

Net investment income

           $ 12,584,318        $ 6,718,910        $ 123,073,780        $ 87,719,376  

Net realized gain (loss)

      (27,477,959        5,289,828          (207,932,460        (97,985,906

Net change in unrealized appreciation (depreciation)

      10,980,300          (9,199,161        (181,861,919        277,163,233  
   

 

 

      

 

 

      

 

 

      

 

 

 

Net increase (decrease) in net assets resulting from operations

      (3,913,341        2,809,577          (266,720,599        266,896,703  
   

 

 

      

 

 

      

 

 

      

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

                  

Decrease in net assets resulting from distributions to shareholders

      (11,034,484        (5,744,772        (138,313,795        (99,359,955
   

 

 

      

 

 

      

 

 

      

 

 

 

CAPITAL SHARE TRANSACTIONS

                  

Net increase (decrease) in net assets derived from capital share transactions

      288,496,363          134,951,001          (330,022,276        (199,937,506
   

 

 

      

 

 

      

 

 

      

 

 

 

NET ASSETS

                  

Total increase (decrease) in net assets

      273,548,538          132,015,806          (735,056,670        (32,400,758

Beginning of year

      321,871,133          189,855,327          1,738,189,677          1,770,590,435  
   

 

 

      

 

 

      

 

 

      

 

 

 

End of year

    $ 595,419,671        $ 321,871,133        $ 1,003,133,007        $ 1,738,189,677  
   

 

 

      

 

 

      

 

 

      

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

78  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Asia 50 ETF  
 

 

 

 
   

Year Ended

03/31/23

    

Year Ended

03/31/22

    

Year Ended

03/31/21

    

Year Ended

03/31/20

    

Year Ended

03/31/19

 

 

 

Net asset value, beginning of year

  $ 68.67      $ 90.91      $ 56.05      $ 61.05      $ 67.20  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    1.17        0.93        1.31        1.42        1.48  

Net realized and unrealized gain (loss)(b)

    (6.54      (21.99      34.52        (4.94      (6.25
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    (5.37      (21.06      35.83        (3.52      (4.77
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions from net investment income(c)

    (1.47      (1.18      (0.97      (1.48      (1.38
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 61.83      $ 68.67      $ 90.91      $ 56.05      $ 61.05  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return(d)

             

Based on net asset value

    (7.77 )%       (23.36 )%       64.22      (6.00 )%       (6.94 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets(e)

             

Total expenses

    0.50      0.50      0.50      0.50      0.50
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    1.95      1.12      1.66      2.32      2.43
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

             

Net assets, end of year (000)

  $ 1,675,525      $ 1,885,125      $ 3,172,670      $ 1,059,289      $ 1,089,745  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(f)

    12      13      46      6      10
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

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

    79  


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares
Blockchain
and Tech
ETF
 
 

 

 

 

Period From

 

 

      04/25/22 (a) 
    to 03/31/23  

 

 

Net asset value, beginning of period

          $ 25.56  
   

 

 

 

Net investment income(b)

      0.22  

Net realized and unrealized gain(c)

      (9.38
   

 

 

 

Net increase from investment operations

      (9.16
   

 

 

 

Distributions from net investment income(d)

      (0.08
   

 

 

 

Net asset value, end of period

    $ 16.32  
   

 

 

 

Total Return(e)

   

Based on net asset value

      (35.71 )%(f) 
   

 

 

 

Ratios to Average Net Assets(g)

   

Total expenses

      0.47 %(h) 
   

 

 

 

Net investment income

      1.56 %(h) 
   

 

 

 

Supplemental Data

   

Net assets, end of period (000)

    $ 6,529  
   

 

 

 

Portfolio turnover rate(i)

      87
   

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

The amount 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) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h) 

Annualized.

(i) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

80  

2 0 2 3   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Emerging Markets Infrastructure ETF  
 

 

 

 
   

Year Ended

03/31/23

   

Year Ended

03/31/22

   

Year Ended

03/31/21

   

Year Ended

03/31/20

   

Year Ended

03/31/19

 

 

 

Net asset value, beginning of year

    $ 22.88       $ 24.74       $ 19.80       $ 28.64       $ 32.07  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

      0.57         0.95         0.65         0.75         0.75  

Net realized and unrealized gain (loss)(b)

      (1.27       (1.84       4.91         (8.94       (3.45
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (0.70       (0.89       5.56         (8.19       (2.70
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(c)

      (0.64       (0.97       (0.62       (0.65       (0.73
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of year

    $ 21.54       $ 22.88       $ 24.74       $ 19.80       $ 28.64  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(d)

                   

Based on net asset value

      (3.11 )%        (3.83 )%        28.33       (29.33 )%        (8.35 )% 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(e)

                   

Total expenses

      0.60       0.60       0.60       0.75       0.75
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      2.70       3.96       2.90       2.60       2.56
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                   

Net assets, end of year (000)

    $ 22,613       $ 20,595       $ 16,083       $ 12,870       $ 25,773  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(f)

      26       23       27       18       25
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(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) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

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

    81  


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Europe ETF  
 

 

 

 
    Year Ended
03/31/23
    Year Ended
03/31/22
    Year Ended
03/31/21
    Year Ended
03/31/20
    Year Ended
03/31/19
 

 

 

Net asset value, beginning of year

  $ 50.17     $ 50.25     $ 35.42     $ 43.40     $ 46.48  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    1.45 (b)      1.24 (b)      0.85       1.24       1.42  

Net realized and unrealized gain (loss)(c)

    (0.15     0.21       14.82       (7.78     (3.16
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    1.30       1.45       15.67       (6.54     (1.74
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions from net investment income(d)

    (1.39     (1.53     (0.84     (1.44     (1.34
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of year

  $ 50.08     $ 50.17     $ 50.25     $ 35.42     $ 43.40  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

         

Based on net asset value

    2.87 %(b)      2.69 %(b)      44.70     (15.61 )%      (3.73 )% 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(f)

         

Total expenses

    0.67     0.63     0.60     0.59     0.59
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

    0.59     0.58     0.59     0.59     0.59
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    3.21 %(b)      2.34 %(b)      1.94     2.84     3.23
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

         

Net assets, end of year (000)

  $ 1,832,933     $ 1,943,979     $ 1,665,944     $ 1,252,107     $ 2,002,860  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(g)

    5     5     5     5     7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

 
(b) 

Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the years ended March 31, 2023 and March 31, 2022, respectively:

 
 

Net investment income per share by $0.27 and $0.18.

 
 

Total return by 0.56% and 0.36%.

 
 

Ratio of net investment income to average net assets by 0.60% and 0.34%.

 
(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) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

 
(g) 

Portfolio turnover rate excludes in-kind transactions.

 

See notes to financial statements.

 

 

82  

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Financial Highlights (continued)

(For a share outstanding throughout the period)

 

   

iShares

Future

Metaverse

Tech and

Communications

 
   

              ETF

 
    Period From  
      02/14/23 (a) 
    to 03/31/23  

 

 

Net asset value, beginning of period

                      $ 25.52  
   

 

 

 

Net investment income(b)

      0.03  

Net realized and unrealized gain(c)

      1.20  
   

 

 

 

Net increase from investment operations

      1.23  
   

 

 

 

Net asset value, end of period

    $ 26.75  
   

 

 

 

Total Return(d)

   

Based on net asset value

      4.82 %(e) 
   

 

 

 

Ratios to Average Net Assets(f)

   

Total expenses

      0.47 %(g) 
   

 

 

 

Net investment income

      0.84 %(g) 
   

 

 

 

Supplemental Data

   

Net assets, end of period (000)

    $ 5,350  
   

 

 

 

Portfolio turnover rate(h)

      7
   

 

 

 

 

(a) 

Commencement of operations.

(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) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(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

    83  


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

   

iShares India 50 ETF

(Consolidated)

 
 

 

 

 
   

Year Ended

03/31/23

   

Year Ended

03/31/22

   

Year Ended

03/31/21

   

Year Ended

03/31/20

   

Year Ended

03/31/19

 

 

 

Net asset value, beginning of year

          $ 46.38       $ 44.60       $ 25.87       $ 37.92       $ 35.00  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

      0.11               0.05               0.02               0.19               0.16  

Net realized and unrealized gain (loss)(b)

      (3.70       5.10         18.74         (12.01       2.97  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (3.59       5.15         18.76         (11.82       3.13  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions(c)

                   

From net investment income

              (3.37       (0.03       (0.23       (0.21

From net realized gain

      (1.59                                
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total distributions

      (1.59       (3.37       (0.03       (0.23       (0.21
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of year

    $ 41.20       $ 46.38       $ 44.60       $ 25.87       $ 37.92  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(d)

                   

Based on net asset value

      (7.92 )%        11.57       72.59       (31.41 )%        9.04
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(e)

                   

Total expenses

      0.93 %(f)        0.89       0.90       0.93       0.94
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      0.25       0.10       0.06       0.51       0.45
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                   

Net assets, end of year (000)

    $ 576,772       $ 663,228       $ 691,284       $ 483,841       $ 828,545  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(g)

      108       12       8       26       24
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(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) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Includes non-recurring expense of Interest expense. Without this cost, total expenses would have been 0.89%.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

84  

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares International Developed Property ETF  
 

 

 

 
   

Year Ended

03/31/23

   

Year Ended

03/31/22

   

Year Ended

03/31/21

   

Year Ended

03/31/20

   

Year Ended

03/31/19

 

 

 

Net asset value, beginning of year

          $ 35.47             $ 36.25             $ 27.97             $ 38.79             $ 38.95  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

      1.03 (b)        1.06 (b)        0.94         1.14         1.19  

Net realized and unrealized gain (loss)(c)

      (8.99       (0.35       8.19         (9.31       0.23  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (7.96       0.71         9.13         (8.17       1.42  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(d)

      (0.56       (1.49       (0.85       (2.65       (1.58
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of year

    $ 26.95       $ 35.47       $ 36.25       $ 27.97       $ 38.79  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(e)

                   

Based on net asset value

      (22.49 )%(b)        1.79 %(b)        32.96       (22.52 )%        3.91
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(f)

                   

Total expenses

      0.48       0.49       0.48       0.48       0.48
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

      0.48       0.48       N/A         N/A         N/A  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      3.55 %(b)        2.82 %(b)        2.92       3.01       3.16
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                   

Net assets, end of year (000)

    $ 43,123       $ 63,846       $ 83,385       $ 78,329       $ 131,871  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(g)

      6       12       16       8       9
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Reflects positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the years ended March 31, 2023 and March 31, 2022, respectively:

• Net investment income per share by 0.01 and $0.04.

• Total return by 0.04% and 0.12%.

• Ratio of net investment income to average net assets by 0.04% and 0.09%.

(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) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(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

    85  


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

   

iShares International Developed Small Cap Value Factor  ETF

 
          Period From  
    Year Ended

 

    Year Ended         03/23/21 (a) 
    03/31/23

 

    03/31/22       to 03/31/21  

 

 

Net asset value, beginning of period

        $ 34.20             $ 34.37             $ 34.52  
     

 

 

     

 

 

     

 

 

 

Net investment income(b)

                                       1.09         1.59         0.16  

Net realized and unrealized loss(c)

        (2.68       (0.74       (0.31
     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

        (1.59       0.85         (0.15
     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(d)

        (1.01       (1.02        
     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

      $ 31.60       $ 34.20       $ 34.37  
     

 

 

     

 

 

     

 

 

 

Total Return(e)

             

Based on net asset value

        (4.56 )%        2.42       (0.43 )%(f) 
     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(g)

             

Total expenses

        0.40       0.40       0.40 %(h) 
     

 

 

     

 

 

     

 

 

 

Total expenses after fees waived

        0.30       0.30       0.30 %(h) 
     

 

 

     

 

 

     

 

 

 

Net investment income

        3.59       4.55       17.96 %(h) 
     

 

 

     

 

 

     

 

 

 

Supplemental Data

             

Net assets, end of period (000)

      $ 158,001       $ 164,181       $ 6,875  
     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(i)

        18       35       0
     

 

 

     

 

 

     

 

 

 

 

(a) 

Commencement of operations.

(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) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h) 

Annualized.

(i) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

86  

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares International Dividend Growth ETF  
 

 

 

 
   

Year Ended

03/31/23

   

Year Ended

03/31/22

   

Year Ended

03/31/21

   

Year Ended

03/31/20

   

Year Ended

03/31/19

 

 

 

Net asset value, beginning of period

          $ 65.02             $ 64.36             $ 45.51             $ 53.81             $ 56.40  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

      1.67         1.74         1.53         1.56         1.51  

Net realized and unrealized gain (loss)(b)

      (4.77       0.39         18.87         (8.24       (2.58
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (3.10       2.13         20.40         (6.68       (1.07
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(c)

      (1.47       (1.47       (1.55       (1.62       (1.52
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 60.45       $ 65.02       $ 64.36       $ 45.51       $ 53.81  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(d)

                   

Based on net asset value

      (4.60 )%        3.28       45.29       (12.75 )%        (1.88 )% 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(e)

                   

Total expenses

      0.15       0.15       0.19       0.22       0.22
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

      0.15       N/A         N/A         N/A         N/A  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      2.89       2.60       2.66       2.81       2.80
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                   

Net assets, end of period (000)

    $ 595,420       $ 321,871       $ 189,855       $ 79,644       $ 75,329  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(f)

      37       40       66       35       34
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(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) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Latin America 40 ETF  
   

 

 

 
   

Year Ended

03/31/23

   

Year Ended

03/31/22

   

Year Ended

03/31/21

   

Year Ended

03/31/20

   

Year Ended

03/31/19

 

 

 

Net asset value, beginning of year

          $ 30.36             $ 27.56             $ 18.34             $ 33.24             $ 37.28  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(a)

      2.69         1.70         0.68         0.98         0.88  

Net realized and unrealized gain (loss)(b)

      (6.26       3.09         9.09         (14.83       (3.96
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      (3.57       4.79         9.77         (13.85       (3.08
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions from net investment income(c)

      (2.91       (1.99       (0.55       (1.05       (0.96
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of year

    $ 23.88       $ 30.36       $ 27.56       $ 18.34       $ 33.24  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(d)

                   

Based on net asset value

      (11.29 )%        19.25       53.62       (43.05 )%        (7.93 )% 
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets(e)

                   

Total expenses

      0.48       0.47       0.48       0.48       0.48
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      10.76       6.07       2.78       3.08       2.68
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                   

Net assets, end of year (000)

    $ 1,003,133       $ 1,738,190       $ 1,770,590       $ 797,877       $ 1,529,164  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(f)

      24       27       20       22       20
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(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) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

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Notes to Financial Statements  

 

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  

 

Asia 50

    Non-diversified    

Blockchain and Tech

    Non-diversified    

Emerging Markets Infrastructure

    Non-diversified    

Europe

    Diversified    

Future Metaverse Tech and Communications(a)

    Non-diversified    

India 50

    Non-diversified    

International Developed Property

    Diversified    

International Developed Small Cap Value Factor

    Non-diversified    

International Dividend Growth

    Diversified    

Latin America 40

    Non-diversified    

 

  (a)

The Fund commenced operations on February 14, 2023.

 

Basis of Consolidation: The accompanying consolidated financial statements for the iShares India 50 ETF includes the accounts of its subsidiary in the Republic of Mauritius, which is a wholly-owned subsidiary of the Fund that invests in Indian securities. Through this investment structure, the Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India.

Effective March 17, 2023, iShares India 50 ETF no longer invests in the Subsidiary. iShares India 50 ETF transferred all of the assets of iShares India 50 ETF’s wholly owned Mauritius Subsidiary to iShares India 50 ETF through on-exchange transactions in India. iShares India 50 ETF recognized a net realized gain of $348,861,864 as a result of this transaction. After the transfer, iShares India 50 ETF began making new investments in India directly. On March 29, 2023, iShares India 50 ETF’s Subsidiary was dissolved.

 

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. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis.

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: The 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 March 31, 2023, if any, are disclosed in the Statements of Assets and Liabilities.

 

 

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

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Notes to Financial Statements  (continued)

 

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.

The iShares India 50 ETF has conducted investment activities in India through its Subsidiary and, where applicable, expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”) between India and Mauritius. In order to be eligible to claim benefits under the DTAA, the Subsidiary must have commercial substance, on an annual basis, to satisfy certain tests and conditions, including the establishment and maintenance of valid tax residence in Mauritius, have the place of effective management outside of India, and related requirements. The Fund has obtained a current tax residence certificate issued by the Mauritian Revenue Authorities.

Based upon current interpretation and practice of the current tax laws in India and Mauritius and the DTAA, the Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, the Subsidiary is entitled to a tax credit equivalent to the higher of the actual foreign tax incurred or 80% of the Mauritius tax on its foreign source income, thus reducing its maximum effective tax rate to 3% up to June 30, 2021. After June 30, 2021, under the new tax regime and subject to meeting the necessary substance requirements as required under the Financial Services Act 2007 (as amended by the Finance Act 2018) and such guidelines issued by the Financial Services Commission (the “FSC”), the Subsidiary is entitled to either (a) a foreign tax credit equivalent to the actual foreign tax suffered on its foreign income against the Subsidiary’s tax liability computed at 15% on such income, or (b) a partial exemption of 80% of some of the income derived, including interest income or foreign source dividends. Taxes on income, if any, are paid by the Subsidiary and are disclosed in its Consolidated Statements of Operations. Any dividends paid by a Subsidiary to its Fund are not subject to tax in Mauritius. The Subsidiary is currently exempt from tax in Mauritius on any gains from the sale of securities.

The DTAA provides that capital gains will be taxable in India with respect to the sale of shares acquired on or after April 1, 2017. Capital gains arising from shares acquired before April 1, 2017, regardless of when they are sold, will continue to be exempt from taxation under the amended DTAA, assuming requirements for eligibility under the DTAA are satisfied. There can be no assurance, however, that the DTAA will remain in effect during the Subsidiary’s existence or that it will continue to enjoy its benefits on the shares acquired prior to April 1, 2017.

Collateralization: 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.

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.

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. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. 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 BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

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.

 

 

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Notes to Financial Statements  (continued)

 

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

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 Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the 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 Valuation Committee 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 Valuation Committee deems relevant and consistent with the principles of fair value measurement.

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 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 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

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 BFA, 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.

 

 

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

    91  


Notes to Financial Statements  (continued)

 

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     

Securities Loaned

at Value

 

 

      

Cash Collateral

Received

 

(a) 

    

Non-Cash Collateral

Received, at Fair Value

 

(a) 

     Net Amount  

 

 

Blockchain and Tech

             

BNP Paribas SA

   $ 17,159        $ (16,715    $      $ 444 (b) 

BofA Securities, Inc.

     236,765          (221,690             15,075 (b) 

J.P. Morgan Securities LLC

     441,733          (441,733              

Jefferies LLC

     862,236          (859,192             3,044 (b) 

UBS AG

     745,210          (705,881             39,329 (b) 
  

 

 

      

 

 

    

 

 

    

 

 

 
   $ 2,303,103        $ (2,245,211    $      $ 57,892  
  

 

 

      

 

 

    

 

 

    

 

 

 

Emerging Markets Infrastructure

             

Barclays Bank PLC

   $ 349,082        $ (349,082    $      $  

HSBC Bank PLC

     517,026          (517,026              
  

 

 

      

 

 

    

 

 

    

 

 

 
   $ 866,108        $ (866,108    $      $  
  

 

 

      

 

 

    

 

 

    

 

 

 

Europe

             

BNP Paribas SA

   $ 273,441        $ (273,441    $      $  

BofA Securities, Inc.

     46,634          (46,634              

Citigroup Global Markets, Inc.

     240,627          (240,627              

Goldman Sachs & Co. LLC

     689,403          (689,403              

HSBC Bank PLC

     1,611,173          (1,611,173              

J.P. Morgan Securities LLC

     582,881          (582,881              

UBS Securities LLC

     141,812          (141,812              
  

 

 

      

 

 

    

 

 

    

 

 

 
   $ 3,585,971        $ (3,585,971    $      $  
  

 

 

      

 

 

    

 

 

    

 

 

 

International Developed Property

             

Barclays Capital, Inc.

   $ 15,842        $ (15,842    $      $  

BofA Securities, Inc.

     14,193          (14,193              

Citigroup Global Markets, Inc.

     75,464          (75,464              

Goldman Sachs & Co. LLC

     106,089          (106,089              

HSBC Bank PLC

     18,808          (18,808              

J.P. Morgan Securities LLC

     11,944          (11,944              

Morgan Stanley & Co. LLC

     329,327          (329,327              

SG Americas Securities LLC

     221,500          (221,500              

UBS AG

     8,917          (8,917              
  

 

 

      

 

 

    

 

 

    

 

 

 
   $ 802,084        $ (802,084    $      $  
  

 

 

      

 

 

    

 

 

    

 

 

 

International Developed Small Cap Value Factor

             

Barclays Capital, Inc.

   $ 418,349        $ (418,349    $      $  

BNP Paribas SA

     55,680          (55,680              

BofA Securities, Inc.

     581,663          (581,663              

Credit Suisse Securities (USA) LLC

     3,451          (3,451              

Goldman Sachs & Co. LLC

     2,962          (2,962              

HSBC Bank PLC

     257,386          (257,386              

J.P. Morgan Securities LLC

     350,702          (350,702              

UBS AG

     367,314          (367,314              
  

 

 

      

 

 

    

 

 

    

 

 

 
   $ 2,037,507        $ (2,037,507    $      $  
  

 

 

      

 

 

    

 

 

    

 

 

 

International Dividend Growth

             

Goldman Sachs & Co. LLC

   $ 1,453,575        $ (1,453,575    $      $  

J.P. Morgan Securities LLC

     942,906          (942,906              

Morgan Stanley

     72,253          (72,253              
  

 

 

      

 

 

    

 

 

    

 

 

 
   $ 2,468,734        $ (2,468,734    $      $  
  

 

 

      

 

 

    

 

 

    

 

 

 

Latin America 40

             

Citigroup Global Markets, Inc.

   $ 20,029,359        $ (20,029,359    $      $  

National Financial Services LLC

     7,708,806          (7,708,806              
  

 

 

      

 

 

    

 

 

    

 

 

 
   $ 27,738,165        $ (27,738,165    $      $  
  

 

 

      

 

 

    

 

 

    

 

 

 

 

  (a) 

Collateral received, if any, 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 Statements of Assets and Liabilities.

 
  (b) 

The market value of the loaned securities is determined as of March 31, 2023. 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.

 

 

 

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Notes to Financial Statements  (continued)

 

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).

For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:

 

   
iShares ETF   Investment Advisory Fees      

Asia 50

    0.50%   

Blockchain and Tech

    0.47      

Emerging Markets Infrastructure

    0.60      

Future Metaverse Tech and Communications

    0.47      

India 50

    0.89      

International Developed Property

    0.48      

International Developed Small Cap Value Factor

    0.40      

International Dividend Growth

    0.15      

For its investment advisory services to the iShares Europe 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 Fees      

First $12 billion

    0.6000%   

Over $12 billion, up to and including $18 billion

    0.5700      

Over $18 billion, up to and including $24 billion

    0.5415      

Over $24 billion, up to and including $30 billion

    0.5145      

Over $30 billion

    0.4888      

 

 

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

    93  


Notes to Financial Statements  (continued)

 

For its investment advisory services to the iShares Latin America 40 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 Fees  

First $46 billion

     0.5000

Over $46 billion, up to and including $81 billion

     0.4750  

Over $81 billion, up to and including $111 billion

     0.4513  

Over $111 billion, up to and including $141 billion

     0.4287  

Over $141 billion, up to and including $171 billion

     0.4073  

Over $171 billion

     0.3869  

The Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. The Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.

Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses, if any, is a fund’s total annual operating expenses. Total expenses as shown in the Statements of Operations does not include acquired fund fees and expenses.

For the iShares Emerging Markets Infrastructure ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through July 31, 2027 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other iShares funds. For the iShares International Developed Small Cap Value Factor ETF, BFA has contractually agreed to waive a portion of its investment advisory fee through July 31, 2024 in order to limit the Fund’s total annual operating expenses after fee waiver to 0.30% of average daily net assets.

These amounts are included in investment advisory fees waived in the Statements of Operations. For the year ended March 31, 2023, the amounts waived in investment advisory fees pursuant to these arrangements were as follows:

 

   
iShares ETF    Amounts Waived      

International Developed Small Cap Value Factor

   $ 147,162      

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, including any custodial costs. 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, the iShares Blockchain and Tech ETF (the “Group 1 Funds”), retains 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.

Pursuant to the current securities lending agreement, each of iShares Asia 50 ETF, iShares Emerging Markets Infrastructure ETF, iShares Europe ETF, iShares Future Metaverse Tech and Communications ETF, iShares India 50 ETF, iShares International Developed Property ETF, iShares International Developed Small Cap Value Factor ETF, iShares International Dividend Growth ETF and iShares Latin America 40 ETF (the “Group 2 Funds”), retains 82% 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 a given calendar year exceeds a specified threshold: (1) the Group 1 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, and (2) each Group 2 Fund will retain for the remainder of that calendar year 85% 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.

 

 

94  

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Notes to Financial Statements  (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 year ended March 31, 2023, the Funds paid BTC the following amounts for securities lending agent services:

 

   
iShares ETF      Amounts    

Asia 50

   $ 3,366    

Blockchain and Tech

     19,925    

Emerging Markets Infrastructure

     3,630    

Europe

     19,638    

International Developed Property

     5,447    

International Developed Small Cap Value Factor

     6,233    

International Dividend Growth

     1,052    

Latin America 40

     37,558    

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 year ended March 31, 2023, 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)

 

Asia 50

   $   10,674,870      $   8,965,990      $ (8,430,634 )   

Emerging Markets Infrastructure

     43,929        437,039        (916,303 )   

Europe

     6,095,333        1,799,847        (1,123,289 )   

International Developed Property

     2,826        64,494        (45,601 )   

International Developed Small Cap Value Factor

     1,475,581        7,220,023        505,819  

International Dividend Growth

     17,284,480        8,921,301        (1,467,285 )   

Latin America 40

     482,525        1,405,640        (936,779 )   

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 year ended March 31, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:

 

     
iShares ETF    Purchases      Sales    

Asia 50

   $   323,736,679      $   188,518,620    

Blockchain and Tech

     5,405,035        4,754,454    

Emerging Markets Infrastructure

     7,900,196        5,529,679    

Europe

     96,798,817        88,305,642    

Future Metaverse Tech and Communications

     545,114        358,055    

India 50

     639,134,509        671,030,490    

International Developed Property

     3,680,302        2,961,170    

International Developed Small Cap Value Factor

     28,230,927        26,598,180    

International Dividend Growth

     202,329,066        159,414,575    

Latin America 40

     276,348,245        370,456,208    

 

 

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

    95  


Notes to Financial Statements  (continued)

 

For the year ended March 31, 2023, in-kind transactions were as follows:

 

     
iShares ETF   

In-kind

Purchases

    

In-kind  

Sales  

 

Asia 50

   $   12,272,331      $   144,395,498    

Blockchain and Tech

     8,349,861        —    

Emerging Markets Infrastructure

     1,914,839        1,029,160    

Europe

     255,100,997        358,964,403    

Future Metaverse Tech and Communications

     4,909,528        —    

International Developed Property

            5,623,202    

International Developed Small Cap Value Factor

     5,630,276        —    

International Dividend Growth

     244,214,743        —    

Latin America 40

     278,037,013        534,657,996    

 

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.

Management has analyzed tax laws and regulations and their application to the Funds as of March 31, 2023, 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.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of March 31, 2023, permanent differences attributable to net investment loss, distributions paid in excess of taxable income and realized gains (losses) from in-kind redemptions were reclassified to the following accounts:

 

     
iShares ETF     Paid-in Capital     

Accumulated

 Earnings (Loss)

 

Asia 50

   $ (39,330,520    $ 39,330,520  

Emerging Markets Infrastructure

     285,243        (285,243

Europe

     78,391,052        (78,391,052

India 50

     (36,875,144      36,875,144  

International Developed Property

     (1,628,297      1,628,297  

Latin America 40

     (18,256,533      18,256,533  

The tax character of distributions paid was as follows:

 

 

 
iShares ETF   

Year Ended

03/31/23

    

Year Ended

03/31/22

 

 

 

Asia 50

     

Ordinary income

   $ 36,273,723      $ 35,774,281  
  

 

 

    

 

 

 

    

     

 

 
iShares ETF          

Period Ended

03/31/23

 

 

 

Blockchain and Tech

     

Ordinary income

      $ 32,972  
     

 

 

 

    

     

 

 
iShares ETF   

Year Ended

03/31/23

    

Year Ended

03/31/22

 

 

 

Emerging Markets Infrastructure

     

Ordinary income

   $ 641,405      $ 642,264  
  

 

 

    

 

 

 

Europe

     

Ordinary income

   $ 50,928,655      $ 56,175,033  
  

 

 

    

 

 

 

India 50

     

Ordinary income

   $      $ 48,495,153  

Long-term capital gains

     21,001,621         
  

 

 

    

 

 

 
   $   21,001,621      $ 48,495,153  
  

 

 

    

 

 

 

International Developed Property

     

Ordinary income

   $ 977,169      $ 3,007,345  
  

 

 

    

 

 

 

 

 

96  

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Notes to Financial Statements  (continued)

 

 

 
iShares ETF   

Year Ended

03/31/23

    

Year Ended

03/31/22

 

 

 

International Developed Small Cap Value Factor

     

Ordinary income

   $ 4,915,147      $ 407,661  
  

 

 

    

 

 

 

International Dividend Growth

     

Ordinary income

   $ 11,034,484      $ 5,744,772  
  

 

 

    

 

 

 

Latin America 40

     

Ordinary income

   $  138,313,795      $  99,359,955  
  

 

 

    

 

 

 

As of March 31, 2023, the tax components of accumulated net earnings (losses) were as follows:

 

             

iShares ETF

   

Undistributed

Ordinary Income

 

 

   

Undistributed

Long-Term Capital Gains

 

 

   

Non-expiring

Capital Loss

Carryforwards

 

 

(a) 

   

Net Unrealized

Gains (Losses)

 

(b) 

   

Qualified

Late-Year Losses

 

(c) 

    Total  

Asia 50

  $ 9,437,598     $     $ (91,304,416   $ (77,540,851   $     $ (159,407,669

Blockchain and Tech

    60,658             (3,088,039     572,796             (2,454,585

Emerging Markets Infrastructure

    20,842             (34,170,843     128,817             (34,021,184

Europe

    15,182,643             (368,616,712     (77,304,232           (430,738,301

Future Metaverse Tech and Communications

    12,038                   234,104             246,142  

India 50

          2,101,248             273,907,902       (495,624     275,513,526  

International Developed Property

                (31,498,243     (23,394,516           (54,892,759

International Developed Small Cap Value Factor

    1,735,366             (2,549,938     (11,472,576           (12,287,148

International Dividend Growth

    2,561,443             (32,658,402     9,736,445             (20,360,514

Latin America 40

                (1,036,874,384     (228,815,557           (1,265,689,941

 

  (a) 

Amounts available to offset future realized capital gains.

 
  (b) 

The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain futures contracts, timing and recognition of partnership income, the characterization of corporate actions, the realization for tax purposes of unrealized gains on investments in passive foreign investment companies and the timing and recognition of realized gains (losses) for tax purposes.

 
  (c) 

The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

 

For the year ended March 31, 2023, the iShares India 50 ETF utilized $7,613,251 of its capital loss carryforwards.

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of March 31, 2023, 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)

 

Asia 50

   $  1,746,449,387      $ 301,662,433      $ (379,142,706    $ (77,480,273

Blockchain and Tech

     8,199,461        980,601        (407,809      572,792  

Emerging Markets Infrastructure

     23,422,793        4,561,113        (4,432,551      128,562  

Europe

     1,908,692,205        308,566,030        (385,847,233      (77,281,203

Future Metaverse Tech and Communications

     5,103,438        326,708        (92,625      234,083  

India 50

     301,682,071        288,368,652        (11,896,772      276,471,880  

International Developed Property

     67,068,566        667,248        (24,058,713      (23,391,465

International Developed Small Cap Value Factor

     170,119,727        8,781,399        (20,260,291      (11,478,892

International Dividend Growth

     584,512,685        38,845,577        (29,105,550      9,740,027  

Latin America 40

     1,260,461,317        75,180,429        (304,063,390      (228,882,961

 

9.

LINE OF CREDIT

The iShares Asia 50 ETF, iShares Emerging Markets Infrastructure ETF, iShares India 50 ETF, iShares International Dividend Growth ETF and iShares Latin America 40 ETF, along with certain other iShares funds (“Participating Funds”), are parties to a $800 million credit agreement (“Syndicated Credit Agreement”) with a group of lenders, which expires on August 11, 2023. 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

 

 

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

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Notes to Financial Statements  (continued)

 

agreement and interest at a rate equal to the higher of (a) Daily Simple Secured Overnight Financing Rate (“SOFR”) plus 0.10% and 1.00% per annum or (b) the U.S. Federal Funds rate 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 year ended March 31, 2023, the iShares Asia 50 ETF, iShares Emerging Markets Infrastructure ETF, iShares India 50 ETF and iShares Latin America 40 ETF did not borrow under the Syndicated Credit Agreement.

For the year ended March 31, 2023, the maximum amount borrowed, the average daily borrowing and the weighted average interest rate, if any, under the Syndicated Credit Agreement were as follows:

 

       
iShares ETF   

Maximum

Amount

Borrowed

    

Average

Borrowing

    

Weighted

Average

Interest Rates

 

International Dividend Growth

   $ 2,600,000      $ 35,479        4.99

Effective April 21, 2022, iShares India 50 ETF, along with certain other iShares funds (“Mauritius Participating Funds”), was a party to a $1.50 billion unsecured and uncommitted line of credit (“Uncommitted Liquidity Facility”) with State Street Bank and Trust Company, which was used solely to facilitate trading associated with the closure of the Fund’s Mauritius subsidiary. The Uncommitted Liquidity Facility had interest at a rate equal to the higher of (a) the U.S. Federal Funds rate (not less than zero) plus 1.25% per annum or (b) the Overnight Bank Funding rate (not less than zero) plus 1.25% per annum on amounts borrowed. The Uncommitted Liquidity Facility was terminated on December 7, 2022.

For the year ended March 31, 2023, the maximum amount borrowed, the average daily borrowing and the weighted average interest rate, if any, under the Uncommitted Liquidity Facility were as follows:

 

       
iShares ETF   

Maximum

Amount

Borrowed

    

Average

Borrowing

    

Weighted

Average

Interest Rates

 

India 50

   $ 151,350,000      $ 7,624,795        3.27

 

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.

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: Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain additional risks that do not generally apply to investments in securities of issuers in more developed capital markets, such as (i) low or nonexistent trading volume, resulting in a lack of liquidity and increased volatility in prices for such securities; (ii) uncertain national policies and social, political and economic instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) lack of publicly available or reliable information about issuers as a result of not being subject to the same degree of regulatory requirements and accounting, auditing and financial reporting standards; and (iv) possible fluctuations in exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial restrictions or other foreign or U.S. governmental laws or restrictions applicable to such investments.

Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.

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

 

 

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Notes to Financial Statements  (continued)

 

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 BFA 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 issuers located in a single country or a limited number of countries. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Unanticipated or sudden political or social developments may cause uncertainty in the markets and as a result adversely affect the Fund’s investments. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be more volatile and less liquid than U.S. securities and may be less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the Schedule of Investments.

Certain Funds invest a significant portion of their assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries as well as acts of war in the region. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Funds’ investments.

Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. The United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. These events and actions have adversely affected, and may in the future adversely affect, the value and exchange rate of the Euro and may continue to significantly affect the economies of every country in Europe, including countries that do not use the Euro and non-European Union member states. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching. In addition, Russia launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting future market disruptions in the region are impossible to predict, but have been, and may continue to be significant and have a severe adverse effect on the region, including significant negative impacts on the economy and the markets for certain securities and commodities, such as oil and natural gas, as well as other sectors.

Certain Funds invest a significant portion of their assets in securities of issuers located in China or with significant exposure to Chinese issuers. Investments in Chinese securities, including certain Hong Kong-listed securities, involve risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and a fund’s investments. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers,

 

 

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Notes to Financial Statements  (continued)

 

or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. In addition, measures may be taken to limit the flow of capital and/or sanctions may be imposed, which could prohibit or restrict the ability to own or transfer fund assets and may also include retaliatory actions, such as seizure of fund assets.

Certain Funds invest a significant portion of their assets in securities of issuers located in Asia or with significant exposure to Asian issuers or countries. The Asian financial markets have recently experienced volatility and adverse trends due to concerns in several Asian countries regarding monetary policy, government intervention in the markets, rising government debt levels or economic downturns. These events may spread to other countries in Asia and may affect the value and liquidity of certain of the Funds’ 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.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

 

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.

Transactions in capital shares were as follows:

 

 

 
    

Year Ended

03/31/23

    

Year Ended

03/31/22

 
  

 

 

    

 

 

 
iShares ETF    Shares      Amount      Shares      Amount  

 

 

Asia 50

           

Shares sold

     4,250,000      $ 268,352,378        550,000      $ 50,293,530  

Shares redeemed

     (4,600,000      (269,671,950      (8,000,000      (674,686,270
  

 

 

    

 

 

    

 

 

    

 

 

 
     (350,000    $ (1,319,572      (7,450,000    $ (624,392,740
  

 

 

    

 

 

    

 

 

    

 

 

 

    

 

 

 

 

                  Period Ended
03/31/23
 
       
iShares ETF                 Shares        Amount  

 

 

Blockchain and Tech

            

Shares sold

          400,000        $ 8,983,970  
       

 

 

      

 

 

 

    

 

 

 

 

     Year Ended
03/31/23
     Year Ended
03/31/22
 
     
iShares ETF    Shares      Amount      Shares      Amount  

 

 

Emerging Markets Infrastructure

           

Shares sold

     200,000      $ 4,326,610        250,000      $ 5,705,641  

Shares redeemed

     (50,000      (1,105,850              
  

 

 

    

 

 

    

 

 

    

 

 

 
     150,000      $ 3,220,760        250,000      $ 5,705,641  
  

 

 

    

 

 

    

 

 

    

 

 

 
           

Europe

           

Shares sold

     5,600,000      $ 267,045,938        6,250,000      $ 340,588,053  

Shares redeemed

     (7,750,000      (367,441,756      (650,000      (29,123,281
  

 

 

    

 

 

    

 

 

    

 

 

 
     (2,150,000    $ (100,395,818      5,600,000      $ 311,464,772  
  

 

 

    

 

 

    

 

 

    

 

 

 

    

 

 

 

 

                 

Period Ended

03/31/23

 
       

 

 

 
iShares ETF                 Shares        Amount  

 

 

Future Metaverse Tech and Communications(a)

            

Shares sold

          200,000        $ 5,104,279  
       

 

 

      

 

 

 

 

(a) 

The Fund commenced operations on February 14, 2023.

 

 

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Notes to Financial Statements  (continued)

 

 

 
   

Year Ended

03/31/23

      

Year Ended

03/31/22

 
 

 

 

      

 

 

 
iShares ETF   Shares     Amount        Shares     Amount  

 

 

India 50

          

Shares sold

    750,000     $      32,231,430          850,000     $      44,660,162  

Shares redeemed

    (1,050,000     (44,585,805        (2,050,000     (93,971,769
 

 

 

   

 

 

      

 

 

   

 

 

 
    (300,000   $ (12,354,375        (1,200,000   $ (49,311,607
 

 

 

   

 

 

      

 

 

   

 

 

 

International Developed Property

          

Shares sold

        $ 21              $ 58  

Shares redeemed

    (200,000     (5,900,760        (500,000     (18,963,122
 

 

 

   

 

 

      

 

 

   

 

 

 
    (200,000   $ (5,900,739        (500,000   $ (18,963,064
 

 

 

   

 

 

      

 

 

   

 

 

 

International Developed Small Cap Value Factor

          

Shares sold

    200,000     $ 5,713,393          4,600,000     $ 157,695,420  
 

 

 

   

 

 

      

 

 

   

 

 

 

International Dividend Growth

          

Shares sold

    4,900,000     $ 288,496,363          2,450,000     $ 165,044,172  

Shares redeemed

                   (450,000     (30,093,171
 

 

 

   

 

 

      

 

 

   

 

 

 
    4,900,000     $ 288,496,363          2,000,000     $ 134,951,001  
 

 

 

   

 

 

      

 

 

   

 

 

 

Latin America 40

          

Shares sold

    13,500,000     $ 362,330,132          25,250,000     $ 664,304,225  

Shares redeemed

    (28,750,000     (692,352,408        (32,250,000     (864,241,731
 

 

 

   

 

 

      

 

 

   

 

 

 
    (15,250,000   $ (330,022,276        (7,000,000   $ (199,937,506
 

 

 

   

 

 

      

 

 

   

 

 

 

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.

FOREIGN WITHHOLDING TAX CLAIMS

iShares Europe ETF, iShares International Developed Property ETF, and iShares International Dividend Growth ETF have filed claims to recover taxes withheld by Sweden on dividend income based upon certain provisions in the Treaty on the Functioning of the European Union. The Funds have recorded a receivable for all recoverable taxes withheld by Sweden based upon determinations made by Swedish tax authorities. Professional and other fees associated with the filing of tax claims in Sweden that result in the recovery of foreign withholding taxes have been approved by the Board as appropriate expenses of the Funds. The Funds continue to evaluate developments in Sweden, for potential impacts to the receivables and associated professional fees payable. Swedish tax claims receivable and related liabilities are disclosed in the Statements of Assets and Liabilities. Collection of this receivable, and any subsequent payment of associated liabilities, depends upon determinations made by Swedish tax authorities.

The Internal Revenue Service (“IRS”) has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior calendar years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid which iShares International Dividend Growth ETF is able to pass through to shareholders as a foreign tax credit in the current year, the Fund will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Fund.

The iShares Europe ETF is seeking or expected to seek a closing agreement with the Internal Revenue Service (“IRS”) to address any prior years’ U.S. income tax liabilities attributable to Fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the Fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by Fund shareholders on their tax returns in prior years. The Fund has accrued a liability for the estimated IRS compliance fee related to foreign withholding tax claims, which is disclosed in the Statements of Assets and Liabilities. The actual IRS compliance fee may differ from the estimate and that difference may be material.

 

 

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Notes to Financial Statements  (continued)

 

13.

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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Report of Independent Registered Public Accounting Firm        

 

To the Board of Trustees of

iShares Trust and Shareholders of each of the ten funds listed in the table below

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds listed in the table below (ten of the funds constituting iShares Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2023, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2023, the results of each of their operations, the changes in each of their net assets, and each of the financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.

 

iShares Asia 50 ETF(1)

iShares Blockchain and Tech ETF(2)

iShares Emerging Markets Infrastructure ETF(1)

iShares Europe ETF(1)

iShares Future Metaverse Tech and Communications ETF(3)

iShares India 50 ETF(4)

iShares International Developed Property ETF(1)

iShares International Developed Small Cap Value Factor ETF(1)

iShares International Dividend Growth ETF(1)

iShares Latin America 40 ETF(1)

(1) Statements of operations for the year ended March 31, 2023, statements of changes in net assets for each of the two years in the period ended March 31, 2023 and each of the financial highlights for each of the periods indicated therein.

(2) Statement of operations, statement of changes in net assets and the financial highlights for the period April 25, 2022 (commencement of operations) to March 31, 2023.

(3) Statement of operations, statement of changes in net assets and the financial highlights for the period February 14, 2023 (commencement of operations) to March 31, 2023.

(4) Consolidated statement of operations for the year ended March 31, 2023, consolidated statements of changes in net assets for each of the two years in the period ended March 31, 2023 and the consolidated financial highlights for each of the periods indicated therein.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

May 25, 2023

We have served as the auditor of one or more BlackRock investment companies since 2000.

 

 

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  103


Important Tax Information (unaudited)

 

The following amounts, or maximum amounts allowable by law, are hereby designated as qualified dividend income for individuals for the fiscal year ended March 31, 2023:

 

   
iShares ETF  

  Qualified Dividend

Income

 

Asia 50

  $ 17,560,404  

Blockchain and Tech

    17,289  

Emerging Markets Infrastructure

    430,694  

Europe

    61,317,041  

Future Metaverse Tech and Communications

    7,911  

India 50

    8,154,489  

International Developed Property

    1,124,416    

International Developed Small Cap Value Factor

    5,393,511  

International Dividend Growth

    13,785,189  

Latin America 40

    121,182,425  

The Funds intend to pass through to their shareholders the following amounts, or maximum amounts allowable by law, of foreign source income earned and foreign taxes paid for the fiscal year ended March 31, 2023:

 

     
iShares ETF  

Foreign Source

Income Earned

    

Foreign

    Taxes Paid

 

Asia 50

  $ 50,744,673      $ 5,178,732  

Emerging Markets Infrastructure

    747,705        46,471    

Europe

    62,258,308         

India 50

    8,689,091        22,390,750  

International Developed Property

    2,168,003        196,339  

International Developed Small Cap Value Factor

    6,319,445        513,430  

International Dividend Growth

    14,719,015        1,392,657  

Latin America 40

    133,107,092        5,860,869  

The following percentage, or maximum percentage allowable by law, of ordinary income distributions paid during the fiscal year ended March 31, 2023 qualified for the dividends-received deduction for corporate shareholders:

 

   
iShares ETF  

Dividends-Received

Deduction

 

Blockchain and Tech

    13.33

Future Metaverse Tech and Communications

    15.23

Latin America 40

    0.66

The Fund hereby designates the following amount, or maximum amount allowable by law, as capital gain dividends, subject to a long-term capital gains tax rate as noted below, for the fiscal year ended March 31, 2023:

 

   
iShares ETF  

20% Rate Long-Term

Capital Gain Dividends

 

India 50

  $ 21,001,621    

 

 

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Board Review and Approval of Investment Advisory Contract

 

iShares Future Metaverse Tech and Communications 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 to consider and approve the proposed Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. 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 terms of the proposed Advisory Agreement. At a meeting held on December 12-14, 2022, the Board, including the Independent Board Members, approved the selection of BFA as investment adviser and approved the proposed Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA. The Board also considered information previously provided by BFA, BlackRock Institutional Trust Company, N.A. (“BTC”), and BlackRock, Inc. (“BlackRock”), as applicable, at prior Board meetings. 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 Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses of the Fund; (ii) the nature, extent and quality of the services to be provided by BFA; (iii) the costs of services to be provided to the Fund and the availability of information related to profits to be realized by BFA and its affiliates; (iv) potential economies of scale; (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, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the Advisory Agreement are discussed below.

Expenses 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 of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense 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 investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

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 of the Fund supported the Board’s approval of the Advisory Agreement.

Nature, Extent and Quality of Services to be Provided by BFA: The Board reviewed the scope of services to be provided by BFA under the Advisory Agreement. 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 and have made significant investments into the iShares business to support the iShares funds and their shareholders. The Board considered representations by BFA, BTC, and BlackRock that the scope and quality of services to be provided to the Fund would be similar to the scope and quality of services provided to other iShares funds. The Board also considered BFA’s compliance program and its compliance record with respect to other iShares funds. 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 who will be responsible for the day-to-day management of the Fund, as well as the resources that will be available to them in managing the Fund. The Board also considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies, which were provided throughout the year with respect to other iShares funds, and other matters related to BFA’s portfolio compliance program.

Based on review of this information, the Board concluded that the nature, extent and quality of services to be provided to the Fund under the Advisory Agreement supported the Board’s approval of the Advisory Agreement.

Costs of Services to be Provided to the Fund and Profits to be Realized by BFA and Affiliates: The Board did not consider the profitability of the Fund to BFA based on the fees payable under the Advisory Agreement or revenue to be received by BFA or its affiliates in connection with services to be provided to the Fund since the proposed relationship had not yet commenced. The Board noted that it expects to receive profitability information from BFA periodically following the Fund’s launch and will thus be in a position to evaluate whether any new or additional breakpoints or other adjustments in Fund fees would be appropriate.

Economies of Scale: The Board considered information that it had previously received regarding potential economies of scale, efficiencies and scale benefits shared with the iShares funds 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 did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.

This consideration 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 Advisory Agreement.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and 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 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

 

 

B O A R D   R E V I E W   A N D   A P P R O V A L   O F   I N V E S T M E N T   A D V I S O R Y   C O N T R A C T

    105  


Board Review and Approval of Investment Advisory Contract  (continued)

 

as the Fund. The Board further noted that BFA previously provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the iShares funds, including in terms of the different and generally more extensive services provided to the iShares funds, 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 considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement.

Other Benefits to BFA and/or its Affiliates: Except as noted below, the Board did not consider the “fallout” benefits or ancillary revenue to be received by BFA and/or its affiliates in connection with the services to be provided to the Fund by BFA since the proposed relationship had not yet commenced. However, the Board 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 considered the potential payment of advisory fees and/or administration 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 and/or administration services. The Board also noted the potential revenue to be received by BFA and/or its affiliates pursuant to an agreement that would permit 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. The Board also considered the potential for revenue to BTC, the Fund’s securities lending agent, and its affiliates in the event of any loaning of portfolio securities of 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 Advisory Agreement.

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 to be rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the Advisory Agreement.

 

 

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Statement Regarding Liquidity Risk Management Program (unaudited)

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), iShares Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for iShares Asia 50 ETF, iShares Blockchain and Tech ETF, iShares Emerging Markets Infrastructure ETF, iShares Europe ETF, iShares India 50 ETF, iShares International Developed Property ETF, iShares International Developed Small Cap Value Factor ETF, iShares International Dividend Growth ETF and iShares Latin America 40 ETF (the “Funds” or “ETFs”), each a series of the Trust, which is reasonably designed to assess and manage each Fund’s liquidity risk.

The Board of Trustees (the “Board”) of the Trust, on behalf of the Funds, met on December 9, 2022 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program. BlackRock also previously delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the management of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2021 through September 30, 2022 (the “Program Reporting Period”).

The Report described the Program’s liquidity classification methodology for categorizing each Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also referenced the methodology used by BlackRock to establish each Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually. The Report also discussed notable events affecting liquidity over the Program Reporting Period, including extended market holidays, the imposition of capital controls in certain non-U.S. countries, Russian sanctions and the closure of the Russian securities market.

The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing each Fund’s liquidity risk, as follows:

 

  a)

The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for an open-end fund structure, with a focus on funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Derivative exposure was also considered in the calculation of a fund’s liquidity bucketing. Finally, a factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes.

 

  b)

Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size (“RATS”). The Committee may also take into consideration a fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a fund’s distribution channels, and the degree of certainty associated with a fund’s short-term and long-term cash flow projections.

 

  c)

Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimis amounts of cash. The Committee also considered that ETFs generally do not engage in borrowing.

 

  d)

The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs. However, there were no ETFs with persistent deviations of fund premium/discount or bid/ask spreads from long-term averages over the Program Reporting Period.

 

  e)

The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of custom baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review.

There were no material changes to the Program during the Program Reporting Period other than the enhancement of certain model components in the Program’s classification methodology. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

 

S T A T E M E N T   R E G A R D I N G   L I Q U I D I T Y   R I S K   M A N A G E M E N T   P R O G R A M

    107  


Supplemental Information (unaudited) 

 

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

March 31, 2023

 

     
    Total Cumulative Distributions
for the Fiscal Year
    % Breakdown of the Total Cumulative
Distributions for the Fiscal Year
 
iShares ETF  

Net

Investment

Income

    Net Realized
Capital Gains
    Return of
Capital
   

Total Per

Share

   

Net

Investment

Income

    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
 

Asia 50

  $ 1.468540     $     $     $ 1.468540       100             100

Europe

    1.385332                   1.385332       100                   100  

India 50

          1.585028             1.585028             100             100  

International Developed Property

    0.557877                   0.557877       100                   100  

Premium/Discount Information

Information on the Fund’s net asset value, market price, premiums and discounts, and bid-ask spreads can be found at iShares.com.

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive, and its United Kingdom (“UK”) equivalent, (“AIFMD”) impose detailed and prescriptive obligations on fund managers established in the European Union (the “EU”) and the UK. These do not currently apply to managers established outside of the EU or UK, such as BFA (the “Company”). Rather, the Company is only required to comply with certain disclosure, reporting and transparency obligations of AIFMD because it has registered the iShares India 50 ETF (the “Fund”) to be marketed to investors in the EU and/or UK.

Report on Remuneration

The Company is required under AIFMD to make quantitative disclosures of remuneration. These disclosures are made in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in that same year.

Disclosures are provided in relation to (a) the staff of the Company; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Fund.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the Fund is included in the aggregate figures disclosed.

BlackRock has a clear and well-defined pay-for-performance philosophy, and compensation programs which support that philosophy.

BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management and staff who have the ability to materially affect the risk profile of the Fund, a significant percentage of variable remuneration is deferred over time. All employees are subject to a clawback policy.

Remuneration decisions for employees are made once annually in January following the end of the performance year, based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total compensation is also based on strategic and operating results and other considerations such as management and leadership capabilities. No set formulas are established and no fixed benchmarks are used in determining annual incentive awards.

Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.

Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organizational structures which are independent of the business units and therefore staff members in control functions are remunerated independently of the businesses they oversee. Functional bonus pools for those control functions are determined with reference to the performance of each individual function and the remuneration of the senior members of control functions is directly overseen by BlackRock’s independent remuneration committee.

 

 

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Supplemental Information (unaudited) (continued)

 

Members of staff and senior management of the Company typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of the Company and across the broader BlackRock group. Conversely, members of staff and senior management of the broader BlackRock group may provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of the broader BlackRock group and of the Company. Therefore, the figures disclosed are a sum of individuals’ portion of remuneration attributable to the Company according to an objective apportionment methodology which acknowledges the multiple-service nature of the Company and the broader BlackRock group. Accordingly, the figures are not representative of any individual’s actual remuneration or their remuneration structure.

The amount of the total remuneration awarded to the Company’s staff in respect of the Company’s financial year ending December 31, 2022 was USD 4,121 million. This figure is comprised of fixed remuneration of USD 685 million and variable remuneration of USD 3,436 million. There was a total of 8 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by the Company in respect of the Company’s financial year ending December 31, 2022, to its senior management was USD 2,958 million, and to other members of its staff whose actions potentially have a material impact on the risk profile of the Company or its funds was USD 970 million. These figures relate to the entire Company and not to the Fund.

Disclosures Under the EU Sustainable Finance Disclosure Regulation

The iShares India 50 ETF (the “Fund”) is registered under the Alternative Investment Fund Managers Directive to be marketed to European Union (“EU”) investors, as noted above. As a result, certain disclosures are required under the EU Sustainable Finance Disclosure Regulation (“SFDR”).

The Fund has not been categorized under the SFDR as an “Article 8” or “Article 9” product. In addition, the Fund’s investment strategy does not take into account the criteria for environmentally sustainable economic activities under the EU sustainable investment taxonomy regulation or principal adverse impacts (“PAIs”) on sustainability factors under the SFDR. PAIs are identified under the SFDR as the material impacts of investment decisions on sustainability factors relating to environmental, social and employee matters, respect for human rights, and anti-corruption and anti-bribery matters.

 

 

S U P P L E M E N T A L   I N F O R M A T I O N

    109  


Trustee and Officer Information (unaudited) 

 

The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).

The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of open-end equity, multi-asset, index and money market funds and ETFs (the “BlackRock Multi-Asset Complex”), one complex of closed-end funds and open-end non-index fixed-income funds (including ETFs) (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 380 funds as of March 31, 2023. With the exception of Robert S. Kapito, Salim Ramji and Charles Park, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji and Mr. Park is c/o BlackRock, Inc., 50 Hudson Yards, New York, NY 10001. The Board has designated John E. Kerrigan as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).

 

Interested Trustees
       

Name

(Year of

Birth)

   Position(s)   

Principal Occupation(s)

During Past 5 Years

   Other Directorships Held by Trustee

Robert S. Kapito(a)

(1957)

   Trustee (since 2009).    President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002).    Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).

Salim Ramji(b)

(1970)

   Trustee (since 2019).    Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014).    Director of iShares, Inc. (since 2019); Trustee of iShares U.S. ETF Trust (since 2019).

(a)   Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

(b)   Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

 

Independent Trustees
       

Name

(Year of

Birth)

   Position(s)   

Principal Occupation(s)

During Past 5 Years

   Other Directorships Held by Trustee

John E. Kerrigan

(1955)

   Trustee (since 2005); Independent Board Chair (since 2022).    Chief Investment Officer, Santa Clara University (since 2002).    Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares, Inc. and iShares U.S. ETF Trust (since 2022).

Jane D. Carlin

(1956)

   Trustee (since 2015); Risk Committee Chair (since 2016).    Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).    Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Member of the Audit Committee (since 2016), Chair of the Audit Committee (since 2020) and Director of The Hanover Insurance Group, Inc. (since 2016).

Richard L. Fagnani

(1954)

   Trustee (since 2017); Audit Committee Chair (since 2019).    Partner, KPMG LLP (2002-2016); Director of One Generation Away (since 2021).    Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

 

 

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Trustee and Officer Information (unaudited) (continued)

 

Independent Trustees (continued)
       

Name

(Year of

Birth)

   Position(s)   

Principal Occupation(s)

During Past 5 Years

   Other Directorships Held by Trustee

Cecilia H. Herbert

(1949)

   Trustee (since 2005); Nominating and Governance and Equity Plus Committee Chairs (since 2022).    Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Audit and Quality Committees of Stanford Health Care (since 2016); Trustee of WNET, New York’s public media company (since 2011) and Member of the Audit Committee (since 2018), Investment Committee (since 2011) and Personnel Committee (since 2022); Chair (1994-2005) and Member (1992-2021) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015-2018); Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Director of the Senior Center of Jackson Hole (since 2020); Director of the Jackson Hole Center for the Arts (since 2021); Member of the Wyoming State Investment Funds Committee (since 2022).    Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

Drew E. Lawton

(1959)

   Trustee (since 2017); 15(c) Committee Chair (since 2017).    Senior Managing Director of New York Life Insurance Company (2010-2015).    Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017); Director of Jackson Financial Inc. (since 2021).

John E. Martinez

(1961)

   Trustee (since 2003); Securities Lending Committee Chair (since 2019).    Director of Real Estate Equity Exchange, Inc. (since 2005); Director of Cloudera Foundation (2017-2020); and Director of Reading Partners (2012-2016).    Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).

Madhav V. Rajan

(1964)

   Trustee (since 2011); Fixed-Income Plus Committee Chair (since 2019).    Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Advisory Board Member (since 2016) and Director (since 2020) of C.M. Capital Corporation; Chair of the Board for the Center for Research in Security Prices, LLC (since 2020); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).    Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).

 

Officers
     

Name

(Year of

Birth)

   Position(s)   

Principal Occupation(s)

During Past 5 Years

Dominik Rohé

(1973)

   President (since 2019).    Managing Director, BlackRock, Inc. (since 2005); Head of Americas ETF and Index Investments (since 2023); Head of Latin America (2019-2023).

Trent Walker

(1974)

   Treasurer and Chief Financial Officer (since 2020).    Managing Director, BlackRock, Inc. (since September 2019); Chief Financial Officer of iShares Delaware Trust Sponsor LLC, BlackRock Funds, BlackRock Funds II, BlackRock Funds IV, BlackRock Funds V and BlackRock Funds VI (since 2021); Executive Vice President of PIMCO (2016-2019); Senior Vice President of PIMCO (2008-2015); Treasurer (2013-2019) and Assistant Treasurer (2007-2017) of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds.

Charles Park

(1967)

   Chief Compliance Officer (since 2006).    Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006).

Marisa Rolland

(1980)

   Secretary (since 2022).    Managing Director, BlackRock, Inc. (since 2023); Director, BlackRock, Inc. (2018-2022); Vice President, BlackRock, Inc. (2010-2017).

Rachel Aguirre

(1982)

   Executive Vice President (since 2022).    Managing Director, BlackRock, Inc. (since 2018); Director, BlackRock, Inc. (2009-2018); Head of U.S. iShares Product (since 2022); Head of EII U.S. Product Engineering (since 2021); Co-Head of EII’s Americas Portfolio Engineering (2020-2021); Head of Developed Markets Portfolio Engineering (2016-2019).

 

 

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Trustee and Officer Information (unaudited) (continued)

 

Officers (continued)
     

Name

(Year of

Birth)

   Position(s)   

Principal Occupation(s)

During Past 5 Years

Jennifer Hsui

(1976)

   Executive Vice President (since 2022).   

Managing Director, BlackRock, Inc. (since 2009); Co-Head of Index Equity (since 2022).

James Mauro (1970)    Executive Vice President (since 2022).    Managing Director, BlackRock, Inc. (since 2010); Head of Fixed Income Index Investments in the Americas and Head of San Francisco Core Portfolio Management (since 2020).
           
 

Effective June 15, 2022, Marisa Rolland replaced Deepa Damre Smith as Secretary.

 

Effective March 30, 2023, Dominik Rohé replaced Armando Senra as President.

 

 

 

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General Information

 

Electronic Delivery

Shareholders can sign up for e-mail 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:

 

   

Go to icsdelivery.com.

   

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 Trust’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 Abbreviation
ADR    American Depositary Receipt
CPO    Certificates of Participation (Ordinary)
GDR    Global Depositary Receipt
JSC    Joint Stock Company
NVDR    Non-Voting Depositary Receipt
NVS    Non-Voting Shares
PJSC    Public Joint Stock Company
REIT    Real Estate Investment Trust

        

 

 

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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, FTSE International Limited, India Index Services & Products Ltd., Morningstar Inc. 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.

©2023 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-AR-304-0323

 

 

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