Table of Contents

 

LOGO

  AUGUST 31, 2022

 

  

  

2022 Annual Report

 

 

iShares, Inc.

 

·

 

 

iShares Currency Hedged MSCI Emerging Markets ETF | HEEM | Cboe BZX

·

 

 

iShares MSCI Emerging Markets ETF | EEM | NYSE Arca


Table of Contents

The Markets in Review

Dear Shareholder,

The 12-month reporting period as of August 31, 2022 saw the emergence of significant challenges that disrupted the economic recovery and strong financial markets of 2021. The U.S. economy shrank in the first half of 2022, ending the run of robust growth that followed the reopening of global economies and the development of COVID-19 vaccines. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the ongoing war continued to present challenges for both investors and policymakers.

Equity prices fell as interest rates rose, particularly weighing on relatively high-valuation growth stocks and economically sensitive small-capitalization stocks. While both large- and small-capitalization U.S. stocks fell, declines for small-capitalization U.S. stocks were steeper. Both emerging market stocks and international equities from developed markets fell significantly, pressured by rising interest rates and a strengthening U.S. dollar.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose notably during the reporting period as investors reacted to higher inflation and attempted to anticipate its impact on future interest rate changes. The corporate bond market also faced inflationary headwinds, and increasing uncertainty led to higher corporate bond spreads (the difference in yield between U.S. Treasuries and similarly-dated corporate bonds).

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is growing faster than expected, raised interest rates four times while indicating that additional rate hikes were likely. Furthermore, the Fed wound down its bond-buying programs and began to reduce its balance sheet. As investors attempted to assess the Fed’s future trajectory, the Fed’s statements late in the reporting period led markets to believe that additional tightening is likely in the near term.

The horrific war in Ukraine has significantly clouded the outlook for the global economy, leading to major volatility in energy and metals markets. Sanctions on Russia, Europe’s top energy supplier, and general wartime disruption have magnified supply problems for key commodities. We believe elevated energy prices will continue to exacerbate inflationary pressure while also constraining economic growth. Combating inflation without stifling a recovery, while buffering against ongoing supply and price shocks, will be an especially challenging environment for setting effective monetary policy. Despite the likelihood of more rate increases on the horizon, we believe the Fed will ultimately err on the side of protecting employment, even at the expense of higher inflation. In the meantime, however, we are likely to see a period of slowing growth paired with relatively high inflation.

In this environment, while we favor an overweight to equities in the long-term, the market’s concerns over excessive rate hikes from central banks moderate our outlook. Furthermore, the energy shock and a deteriorating economic backdrop in China and Europe are likely to challenge corporate earnings, so we are underweight equities overall in the near term. We take the opposite view on credit, where higher spreads provide near-term opportunities, while the likelihood of higher inflation leads us to take an underweight stance on credit in the long term. We believe that investment-grade corporates, U.K. gilts, local-currency emerging market debt, and inflation-protected bonds (particularly in Europe) offer strong opportunities for a six- to twelve-month horizon.

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

 

LOGO

 

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of August 31, 2022
     
   6-Month   12-Month 
   

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

  (8.84 )%   (11.23 )%
   

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

  (9.31 )   (17.88 )
   

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

  (13.97 )   (19.80 )
   

Emerging market equities
(MSCI Emerging Markets
Index)

  (13.30 )   (21.80 )
   

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

  0.36   0.39
   

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

  (9.71 )   (13.27 )
   

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

  (7.76 )   (11.52 )
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

  (5.72 )   (8.63 )
   

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

  (7.78 )   (10.61 )
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

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Table of Contents

Table of Contents

 

 

     

Page

 

 

The Markets in Review

  

 

2

 

Annual Report:

  

Market Overview

  

 

4

 

Fund Summary

  

 

5

 

About Fund Performance

  

 

9

 

Disclosure of Expenses

  

 

9

 

Schedules of Investments

  

 

10

 

Financial Statements

  

Statements of Assets and Liabilities

  

 

29

 

Statements of Operations

  

 

30

 

Statements of Changes in Net Assets

  

 

31

 

Financial Highlights

  

 

32

 

Notes to Financial Statements

  

 

34

 

Report of Independent Registered Public Accounting Firm

  

 

45

 

Important Tax Information

  

 

46

 

Board Review and Approval of Investment Advisory Contract

  

 

47

 

Supplemental Information

  

 

51

 

Director and Officer Information

  

 

53

 

General Information

  

 

56

 

Glossary of Terms Used in this Report

  

 

57

 

 


Table of Contents

Market Overview

 

iShares, Inc.

Global Market Overview

Global equity markets declined in U.S. dollar terms during the 12 months ended August 31, 2022 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned -15.88% in U.S. dollar terms for the reporting period.

For the first third of the reporting period, economic recovery supported stocks in most regions of the world. The global economy continued to rebound from the impact of restrictions imposed at the beginning of the coronavirus pandemic, as mitigation and adaptation allowed most economic activity to continue. However, substantial challenges emerged at the beginning of 2022 which negatively affected stock prices. Inflation rose significantly in many countries, reducing consumers’ purchasing power and leading many central banks to tighten monetary policy. Russia’s invasion of Ukraine presented a further challenge to the global economy, disrupting important commodities markets.

The U.S. economy grew briskly over the final half of 2021, powered primarily by consumer spending. Record-high personal savings rates allowed consumers to spend at an elevated level, releasing pent-up demand for goods and services. Growth subsequently stalled in the first half of 2022, and the economy contracted amid lower inventories and faltering business investment. Despite the economic downturn, unemployment declined substantially, falling to 3.7% in August 2022 while the number of long-term unemployed dropped below the pre-pandemic level. Although high inflation negatively impacted consumer sentiment, which declined significantly, consumer spending continued to grow.

Rising inflation led to a shift in policy from the U.S. Federal Reserve (“the Fed”). As the reporting period began, the Fed was using accommodative monetary policy to stimulate the economy. Short-term interest rates were kept at near-zero levels, and the Fed used bond-buying programs to stabilize debt markets. However, rising prices led the Fed to tighten monetary policy during the reporting period in an attempt to prevent runaway inflation. The Fed slowed and then ended its bond-buying activities, finally reversing course as it began to reduce its balance sheet in June 2022. In March 2022, the Fed began to raise short-term interest rates, followed by three more increases for a total increase of 225 basis points, the most rapid rise in decades. Interest rates rose significantly in response, leading to higher borrowing costs for businesses. In that environment, the U.S. dollar significantly appreciated relative to most foreign currencies.

Stocks declined in Europe in U.S. dollar terms as economic growth stalled and the euro declined sharply relative to the U.S. dollar. Significantly higher inflation and Russia’s invasion of Ukraine negatively impacted equities. Russia is an important trading partner with many European countries, and new sanctions imposed limits on certain types of trade with Russia. Investors became concerned that the sharp rise in energy prices during the reporting period would constrain economic growth, as Europe relies on imported energy for much of its industrial and heating needs. The European Central Bank (“ECB”) responded to elevated inflation by raising interest rates in July 2022, the first such increase in over a decade.

Despite relatively low inflation by global standards, Asia-Pacific stocks declined significantly in U.S. dollar terms. Chinese stocks faced significant headwinds amid regulatory interventions by the Chinese government and strict lockdowns following COVID-19 outbreaks. Japanese stocks also declined amid an economic contraction in the first quarter of 2022 and a sharp decline in the Japanese yen relative to the U.S. dollar. Emerging market stocks declined substantially, as higher interest rates and a strengthening U.S. dollar raised the cost of borrowing in many emerging economies.

 

 

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Table of Contents
Fund Summary as of August 31, 2022    iShares® Currency Hedged MSCI Emerging Markets ETF

 

Investment Objective

The iShares Currency Hedged MSCI Emerging Markets ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI Emerging Markets 100% Hedged to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Emerging Markets ETF.

Performance

 

    Average Annual Total Returns           Cumulative Total Returns  
     1 Year      5 Years      Since
Inception
           1 Year      5 Years     

 

Since
Inception

 

Fund NAV

    (17.62 )%       1.98      3.16       (17.62 )%       10.31      27.98

Fund Market

    (17.74      1.95        3.17         (17.74      10.16        28.08  

Index

    (17.12      2.61        3.69               (17.12      13.74        33.32  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was September 23, 2014. The first day of secondary market trading was September 25, 2014.

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
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      892.80          $      0.00               $      1,000.00          $      1,025.20          $      0.00          0.00

 

  (a)

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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. The fees and expenses of the underlying funds in which the Fund invests are not included in the Fund’s annualized expense ratio.

 

 

 

U N D    U M M A R Y

  5


Table of Contents
Fund Summary as of August 31, 2022  (continued)   

iShares® Currency Hedged MSCI Emerging Markets ETF

 

Portfolio Management Commentary

Emerging markets stocks declined sharply during the reporting period in U.S. dollar terms, as higher interest rates raised the cost of borrowing in many emerging economies. Chinese equities drove the majority of detraction from the Index’s return, as economic growth slowed amid continuing coronavirus-related restrictions and lockdowns. Unemployment ran high and consumer spending weakened, while inflationary pressures mounted and supply chain disruptions persisted. Concerns about delisting from U.S. exchanges arising from U.S. audit requirements also impacted Chinese stocks.

Within China, the consumer discretionary sector detracted significantly from the Index’s return. The government’s campaign to rein in large internet firms, which included billions of dollars in anti-trust fines and restrictions on listings on foreign stock exchanges, weighed on investor sentiment. The internet and direct marketing retail industry declined as competitive advantages weakened, while concerns surrounding customer growth and slowing consumption pressured margins and earnings.

Technology-related equities in China’s communication services sector detracted substantially from the Index’s return, as coronavirus-related restrictions and regulatory issues weighed on earnings and forward guidance. The media and entertainment industry declined amid rules limiting video game use and restrictions on key advertisers. Revenue growth slowed for media and videogaming firms, constraining earnings and raising concerns about future growth.

Chinese healthcare stocks also detracted from the Index’s performance after the U.S. Commerce Department added several pharmaceuticals, biotechnology, and life sciences companies to a list of firms with restricted access to U.S. technology, meaning U.S. companies must conduct stricter due diligence in any dealings with them.

South Korean stocks also weighed on the Index’s return, particularly in the technology hardware, storage, and peripherals industry in the information technology sector. Budgetary reductions from major chip customers amid global economic uncertainty slowed sales growth, lowered profits, and affected capacity expansion plans for producers of semiconductors. Indications of weakening consumer demand for personal computers and cell phones further pressured the near-term outlook for semiconductors stocks.

In terms of currency performance, the U.S. dollar appreciated relative to most emerging market currencies for the reporting period. Increasing inflation, multiple Fed interest rate increases, and concerns about the state of the global economy drove U.S. dollar strength. The Chinese yuan, Indian rupee, Taiwanese new dollar, and South Korean won depreciated relative to the U.S. dollar by approximately 6%, 8%, 9%, and 14%, respectively.

The negative performance of some foreign currencies meant hedging activity contributed to the Index’s return. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the negative impact of foreign currency performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the Index’s return measured in local currencies.

Portfolio Information

 

PORTFOLIO COMPOSITION

 

Investment Type   Percent of
Net Assets
 

Investment Companies

    99.9

Short-term Investments

    0.6  
Forward foreign currency exchange contracts, net cumulative appreciation     0.7  

Other assets less liabilities

    (1.2

SECTOR ALLOCATION (of the UNDERLYING FUND)

 

Sector    
Percent of
Total Investment(a)
 
 

Financials

    21.6

Information Technology

    19.3  

Consumer Discretionary

    14.4  

Communication Services

    10.0  

Materials

    8.4  

Consumer Staples

    6.1  

Industrials

    5.8  

Energy

    5.3  

Health Care

    4.0  

Utilities

    3.1  

Real Estate

    2.0  

 

  (a)

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary as of August 31, 2022    iShares® MSCI Emerging Markets ETF

 

Investment Objective

The iShares MSCI Emerging Markets ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities, as represented by the MSCI Emerging Markets Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

 

10 Years

 

Fund NAV

    (22.73 )%       (0.23 )%       2.20       (22.73 )%       (1.13 )%       24.32

Fund Market

    (22.97      (0.37      2.12         (22.97      (1.85      23.36  

Index

    (21.80      0.59        2.92               (21.80      3.00        33.31  

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
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      863.30          $      3.24               $      1,000.00          $      1,021.70          $      3.52          0.69

 

  (a)

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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.

 

 

 

U N D    U M M A R Y

  7


Table of Contents
Fund Summary as of August 31, 2022  (continued)    iShares® MSCI Emerging Markets ETF

 

Portfolio Management Commentary

Emerging markets stocks declined sharply during the reporting period, as higher interest rates and a strengthening U.S. dollar raised the cost of borrowing in many emerging economies. The strong U.S. dollar made investments denominated in some foreign currencies worth less in U.S. dollar terms, which further detracted from the Index’s performance.

Chinese equities drove the majority of detraction from the Index’s return, as economic growth slowed amid continuing coronavirus-related restrictions and lockdowns. Unemployment ran high and consumer spending weakened, while inflationary pressures mounted and supply chain disruptions persisted. Concerns about delisting from U.S. exchanges arising from U.S. audit requirements also impacted Chinese stocks.

Within China, the consumer discretionary sector detracted significantly from the Index’s return. The government’s campaign to rein in large internet firms, which included billions of dollars in anti-trust fines and restrictions on listings on foreign stock exchanges, weighed on investor sentiment. The internet and direct marketing retail industry declined as competitive advantages weakened, while concerns surrounding customer growth and slowing consumption pressured margins and earnings.

Technology-related equities in China’s communication services sector detracted substantially from the Index’s return, as coronavirus-related restrictions and regulatory issues weighed on earnings and forward guidance. The media and entertainment industry declined amid rules limiting video game use and restrictions on key advertisers. Revenue growth slowed for media and videogaming firms, constraining earnings and raising concerns about future growth.

Chinese healthcare stocks also detracted from the Index’s performance after the U.S. Commerce Department added several pharmaceuticals, biotechnology, and life sciences companies to a list of firms with restricted access to U.S. technology, meaning U.S. companies must conduct stricter due diligence in any dealings with them.

South Korean stocks also weighed on the Index’s return, particularly in the technology hardware, storage, and peripherals industry in the information technology sector. Budgetary reductions from major chip customers amid global economic uncertainty slowed sales growth, lowered profits, and affected capacity expansion plans for producers of semiconductors. Indications of weakening consumer demand for personal computers and cell phones further pressured the near-term outlook for semiconductors stocks.

Portfolio Information

 

SECTOR ALLOCATION

 

Sector    
Percent of
Total Investments
 
(a) 

Financials

    21.6

Information Technology

    19.3  

Consumer Discretionary

    14.4  

Communication Services

    10.0  

Materials

    8.4  

Consumer Staples

    6.1  

Industrials

    5.8  

Energy

    5.3  

Health Care

    4.0  

Utilities

    3.1  

Real Estate

    2.0  

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

China

    32.5

Taiwan

    14.5  

India

    14.3  

South Korea

    11.5  

Brazil

    5.3  

Saudi Arabia

    4.7  

South Africa

    3.2  

Thailand

    2.0  

Mexico

    2.0  

Indonesia

    2.0  

Malaysia

    1.5  

United Arab Emirates

    1.3  

Qatar

    1.1  

Other (each representing less than 1%)

    4.1  
  (a)

Excludes money market funds.

 

 

 

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Table of Contents

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.

 

 

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

  9


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® Currency Hedged MSCI Emerging Markets ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Investment Companies

 

Exchange-Traded Funds — 99.9%  

iShares MSCI Emerging Markets ETF(a)

    3,899,692     $ 153,764,856  
   

 

 

 

Total Investment Companies
(Cost: $179,475,475)

 

    153,764,856  
   

 

 

 

Short-Term Securities

 

Money Market Funds — 0.6%  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 2.07%(a)(b)

    960,000       960,000  
   

 

 

 

Total Short-Term Securities — 0.6%
(Cost: $960,000)

 

    960,000  
   

 

 

 

Total Investments in Securities — 100.5%
(Cost: $180,435,475)

 

    154,724,856  

Liabilities in Excess of Other Assets — (0.5)%

 

    (731,812
   

 

 

 

Net Assets — 100.0%

 

  $ 153,993,044  
   

 

 

 

 

(a) 

Affiliate of the Fund.

(b) 

Annualized 7-day yield as of period end.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

Affiliated Issuer

 

Value at

08/31/21

   

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in
Unrealized
Appreciation
(Depreciation)

   

Value at

08/31/22

   

Shares

Held at

08/31/22

   

Income

   

Capital

Gain

Distributions
from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares

 

$

370,000

 

 

$

590,000

(a)  

 

$

 

 

$

 

 

$

 

 

$

960,000

 

 

 

960,000

 

 

$

6,902

 

 

$

 

iShares MSCI Emerging Markets ETF

 

 

202,917,841

 

 

 

80,144,817

 

 

 

(78,076,957

 

 

3,335,363

 

 

 

(54,556,208

 

 

153,764,856

 

 

 

3,899,692

 

 

 

4,326,001

 

 

 

 

       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
       

$

3,335,363

 

 

$

(54,556,208

 

$

154,724,856

 

   

$

4,332,903

 

 

$

 

       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Forward Foreign Currency Exchange Contracts

 

 

 
Currency Purchased        Currency Sold        Counterparty          Settlement Date        Unrealized
Appreciation
(Depreciation)
 

 

 

CLP

    14,978,000        USD     16,482        Morgan Stanley & Co. International PLC        09/06/22        $ 217  

HKD

    300,001,000        USD     38,227,158        Morgan Stanley & Co. International PLC        09/06/22          341  

INR

    1,710,355,000        USD     21,509,308        Morgan Stanley & Co. International PLC        09/06/22          1,250  

KRW

          29,361,624,000        USD                  21,878,287        Morgan Stanley & Co. International PLC        09/06/22          45,495  

MXN

    1,095,000        USD     53,647        Morgan Stanley & Co. International PLC        09/06/22          665  

MYR

    10,372,000        USD     2,313,113        Morgan Stanley & Co. International PLC        09/06/22          3,388  

THB

    105,654,000        USD     2,895,007        Morgan Stanley & Co. International PLC        09/06/22          3,213  

 

 

10  

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


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® Currency Hedged MSCI Emerging Markets ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

 

 
Currency Purchased        Currency Sold        Counterparty          Settlement Date        Unrealized
Appreciation
(Depreciation)
 

 

 

TRY

    242,000        USD     13,022        Morgan Stanley & Co. International PLC        09/06/22        $ 247  

USD

    27,994        BRL     144,000        Morgan Stanley & Co. International PLC        09/06/22          339  

USD

    1,860        CLP     1,661,000        Morgan Stanley & Co. International PLC        09/06/22          8  

USD

    8,788,228        CNY     59,307,320        Morgan Stanley & Co. International PLC        09/06/22          187,283  

USD

    1,870,505        EUR     1,830,000        Morgan Stanley & Co. International PLC        09/06/22          30,966  

USD

    41,444,762        HKD     325,010,000        Morgan Stanley & Co. International PLC        09/06/22          30,502  

USD

    35,923        INR     2,848,000        Morgan Stanley & Co. International PLC        09/06/22          105  

USD

                 22,708,124        KRW     29,653,420,000        Morgan Stanley & Co. International PLC        09/06/22          566,463  

USD

    5,315        MXN     107,000        Morgan Stanley & Co. International PLC        09/06/22          8  

USD

    2,351,594        MYR     10,473,000        Morgan Stanley & Co. International PLC        09/06/22          12,535  

USD

    2,987,345        THB     108,596,000        Morgan Stanley & Co. International PLC        09/06/22          8,422  

USD

    768        TRY     14,000        Morgan Stanley & Co. International PLC        09/06/22          1  

USD

    23,126,810        TWD     694,847,000        Morgan Stanley & Co. International PLC        09/06/22          279,245  

USD

    5,628,905        ZAR     94,145,000        Morgan Stanley & Co. International PLC        09/06/22          134,334  

BRL

    1,425,000        USD     271,444        Morgan Stanley & Co. International PLC        10/06/22          195  

HKD

    4,847,000        USD     617,967        HSBC Bank PLC        10/06/22          39  

USD

    8,543,871        BRL     44,167,000        Morgan Stanley & Co. International PLC        10/06/22          124,586  

USD

    1,178,078        CLP     1,055,912,000        Morgan Stanley & Co. International PLC        10/06/22          7,315  

USD

    1,801,964        EUR     1,788,000        Morgan Stanley & Co. International PLC        10/06/22          1,082  

USD

    1,043,905        INR     83,230,000        Morgan Stanley & Co. International PLC        10/06/22          255  

USD

          21,883,179        KRW           29,361,624,000        Morgan Stanley & Co. International PLC        10/06/22          688  

USD

    3,327,462        MXN     67,355,000        Morgan Stanley & Co. International PLC        10/06/22          5,713  

USD

    536,344        TRY     10,021,000        Morgan Stanley & Co. International PLC        10/06/22          74  

USD

    5,492,779        ZAR     93,912,000        Morgan Stanley & Co. International PLC        10/06/22          27,134  

USD

    8,329,389        CNH     57,404,320        Morgan Stanley & Co. International PLC        10/11/22          16,790  
                       

 

 

 
                          1,488,898  
                       

 

 

 

BRL

    42,243,000        USD     8,245,360        Morgan Stanley & Co. International PLC        09/06/22          (132,494

 

 

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

  11


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® Currency Hedged MSCI Emerging Markets ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

 

 
Currency Purchased        Currency Sold        Counterparty          Settlement Date        Unrealized
Appreciation
(Depreciation)
 

 

 

CLP

           1,025,998,000        USD     1,152,224        Morgan Stanley & Co. International PLC        09/06/22        $ (8,375

CNY

    59,307,320        USD     8,609,615        Morgan Stanley & Co. International PLC        09/06/22          (8,671

EUR

    1,830,000        USD     1,841,304        Morgan Stanley & Co. International PLC        09/06/22          (1,764

HKD

    25,009,000        USD     3,189,631        Morgan Stanley & Co. International PLC        09/06/22          (2,870

KRW

    291,796,000        USD     224,575        Morgan Stanley & Co. International PLC        09/06/22          (6,696

MXN

    67,355,000        USD     3,346,542        Morgan Stanley & Co. International PLC        09/06/22          (5,755

MYR

    101,000        USD     22,732        Morgan Stanley & Co. International PLC        09/06/22          (174

THB

    2,942,000        USD     81,863        Morgan Stanley & Co. International PLC        09/06/22          (1,161

TRY

    7,940,000        USD     435,438        Morgan Stanley & Co. International PLC        09/06/22          (92

TWD

    694,847,000        USD     22,877,202        Morgan Stanley & Co. International PLC        09/06/22          (29,638

USD

    8,030,870        BRL     42,099,000        Morgan Stanley & Co. International PLC        09/06/22          (54,341

USD

    1,142,511        CLP             1,039,315,000        Morgan Stanley & Co. International PLC        09/06/22          (16,184

USD

    21,444,528        INR     1,707,507,000        Morgan Stanley & Co. International PLC        09/06/22          (30,212

USD

    3,335,319        MXN     68,343,000        Morgan Stanley & Co. International PLC        09/06/22          (54,473

USD

    436,275        TRY     8,168,000        Morgan Stanley & Co. International PLC        09/06/22          (11,573

ZAR

    94,145,000        USD     5,523,947        Morgan Stanley & Co. International PLC        09/06/22          (29,376

CLP

    23,207,000        USD     25,762        Morgan Stanley & Co. International PLC        10/06/22          (30

EUR

    47,000        USD     47,355        Bank of America N.A.        10/06/22          (16

EUR

    63,000        USD     63,492        Morgan Stanley & Co. International PLC        10/06/22          (39

HKD

    7,882,000        USD     1,004,988        Morgan Stanley & Co. International PLC        10/06/22          (11

KRW

    146,034,000        USD     108,968        Morgan Stanley & Co. International PLC        10/06/22          (132

MXN

    3,711,000        USD     183,339        Morgan Stanley & Co. International PLC        10/06/22          (324

MYR

    38,000        USD     8,505        Morgan Stanley & Co. International PLC        10/06/22          (18

TRY

    134,000        USD     7,173        Citibank N.A.        10/06/22          (3

TWD

    10,298,000        USD     339,543        Morgan Stanley & Co. International PLC        10/06/22          (85

USD

    38,247,627        HKD     300,001,000        Morgan Stanley & Co. International PLC        10/06/22          (3,336

USD

    21,220,831        INR     1,693,295,000        Morgan Stanley & Co. International PLC        10/06/22          (11,974

USD

    2,326,061        MYR     10,430,000        Morgan Stanley & Co. International PLC        10/06/22          (3,195

 

 

12  

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


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® Currency Hedged MSCI Emerging Markets ETF

 

Forward Foreign Currency Exchange Contracts (continued)

 

 

 
Currency Purchased        Currency Sold        Counterparty          Settlement Date        Unrealized
Appreciation
(Depreciation)
 

 

 

USD

    8,294        THB     303,000        Barclays Bank PLC        10/06/22        $ (31

USD

    2,897,111        THB     105,654,000        Morgan Stanley & Co. International PLC        10/06/22          (6,050

USD

    110,796        THB     4,041,000        State Street Bank and Trust Co.        10/06/22          (242

USD

                 22,530,552        TWD                683,604,000        Morgan Stanley & Co. International PLC        10/06/22          (3,454

ZAR

    3,550,000        USD     207,139        Deutsche Bank Securities Inc.        10/06/22          (530

CNH

    977,000        USD     141,614        Bank of America N.A.        10/11/22          (137

CNH

    1,153,000        USD     167,312        Morgan Stanley & Co. International PLC        10/11/22          (349
                       

 

 

 
                       

 

 

 

(423,805

 

                       

 

 

 
                       

 

 

 

$1,065,093

 

 

                       

 

 

 

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

                                

Forward foreign currency exchange contracts

                                

Unrealized appreciation on forward foreign currency exchange contracts

   $        $        $        $ 1,488,898        $        $        $ 1,488,898  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Liabilities — Derivative Financial Instruments

                                

Forward foreign currency exchange contracts

                                

Unrealized depreciation on forward foreign currency exchange contracts

   $        $        $        $ 423,805        $        $        $ 423,805  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

For the period ended August 31, 2022, 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

                                

Forward foreign currency exchange contracts

   $        $        $        $ 9,573,652        $        $        $ 9,573,652  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                                

Forward foreign currency exchange contracts

   $        $        $        $ 1,826,063        $        $        $ 1,826,063  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Forward foreign currency exchange contracts

  

Average amounts purchased — in USD

     $175,295,735      

Average amounts sold — in USD

     $333,944,643      

 

 

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

Derivative Financial Instruments - Offsetting as of Period End

The Fund’s derivative assets and liabilities (by type) were as follows:

 

 

 
     Assets        Liabilities  

 

 

Derivative Financial Instruments:

       

Forward foreign currency exchange contracts

   $ 1,488,898        $   423,805  
  

 

 

      

 

 

 

Total derivative assets and liabilities in the Statement of Assets and Liabilities

     1,488,898          423,805  

Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)

               
  

 

 

      

 

 

 

Total derivative assets and liabilities subject to an MNA

     1,488,898          423,805  
  

 

 

      

 

 

 

 

 

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

  13


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® Currency Hedged MSCI Emerging Markets ETF

 

Derivative Financial Instruments - Offsetting as of Period End (continued)

The following tables present the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:

 

 

 
Counterparty    Derivative
Assets
Subject to
an MNA by
Counterparty
       Derivatives
Available
for Offset(a)
      

Non-Cash
Collateral

Received

       Cash
Collateral
Received(b)
       Net Amount
of Derivative
Assets(c)
 

 

 

HSBC Bank PLC

   $ 39        $        $        $        $ 39  

Morgan Stanley & Co. International PLC

     1,488,859          (422,846                 (880,000        186,013  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 
   $ 1,488,898        $ (422,846      $        $ (880,000      $ 186,052  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

            

                      

 

 
Counterparty    Derivative
Liabilities
Subject to
an MNA by
Counterparty
       Derivatives
Available
for Offset(a)
       Non-Cash
Collateral
Pledged
       Cash
Collateral
Pledged
       Net Amount
of Derivative
Liabilities(d)
 

 

 

Bank of America N.A.

   $ 153        $        $        $        $ 153  

Barclays Bank PLC

     31                                     31  

Citibank N.A.

     3                                     3  

Deutsche Bank Securities Inc.

     530                                     530  

Morgan Stanley & Co. International PLC

     422,846          (422,846                           

State Street Bank and Trust Co.

     242                                     242  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 
   $ 423,805        $ (422,846      $        $        $ 959  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.

 

 

  (b) 

Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.

 

 

  (c) 

Net amount represents the net amount receivable from the counterparty in the event of default.

 

 

  (d) 

Net amount represents the net amount payable due to the counterparty in the event of default.

 

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Investments

                 

Assets

                 

Investment Companies

   $ 153,764,856        $        $        $ 153,764,856  

Money Market Funds

     960,000                            960,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 154,724,856        $        $        $ 154,724,856  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Forward Foreign Currency Exchange Contracts

   $        $ 1,488,898        $        $ 1,488,898  

Liabilities

                 

Forward Foreign Currency Exchange Contracts

              (423,805                 (423,805
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $   1,065,093        $             —        $ 1,065,093  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are forward foreign currency exchange contracts. Forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

14  

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Table of Contents

Schedule of Investments  

August 31, 2022

  

iShares® MSCI Emerging Markets ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Common Stocks

   
Brazil — 3.8%            

Ambev SA

    18,574,377     $ 54,519,210  

Americanas SA

    2,564,832       8,055,773  

Atacadao SA

        1,964,458       7,457,721  

B3 SA - Brasil, Bolsa, Balcao

    24,238,889               55,211,217  

Banco Bradesco SA

    6,259,963       19,060,013  

Banco BTG Pactual SA

    4,724,704       23,113,124  

Banco do Brasil SA

    3,412,538       27,346,746  

Banco Santander Brasil SA

    1,430,560       8,076,185  

BB Seguridade Participacoes SA

    2,844,898       15,464,731  

BRF SA(a)

    2,383,183       7,260,774  

CCR SA

    4,760,337       12,618,224  

Centrais Eletricas Brasileiras SA

    4,151,285       36,793,740  

Cia. de Saneamento Basico do Estado de Sao Paulo

    1,373,881       12,979,827  

Cia. Siderurgica Nacional SA

    2,735,978       7,257,515  

Cosan SA

    4,886,925       18,768,407  

CPFL Energia SA

    919,907       6,183,521  

Energisa SA

    749,588       6,093,356  

Engie Brasil Energia SA

    813,523       6,333,170  

Equatorial Energia SA

    4,054,196       18,843,315  

Hapvida Participacoes e Investimentos SA(b)

    18,462,669       25,835,812  

Hypera SA

    1,693,752       14,022,355  

JBS SA

    3,124,238       17,769,914  

Klabin SA

    3,021,911       10,937,756  

Localiza Rent a Car SA

    2,958,651       34,588,873  

Lojas Renner SA

    3,951,402       20,104,877  

Magazine Luiza SA(a)

    12,262,001       10,064,344  

Natura & Co. Holding SA

    3,543,079       9,820,698  

Petro Rio SA(a)

    2,849,744       14,959,732  

Petroleo Brasileiro SA

    14,964,860       106,920,622  

Raia Drogasil SA

    4,278,122       17,894,036  

Rede D’Or Sao Luiz SA(b)

    1,579,091       10,116,697  

Rumo SA

    5,136,425       19,953,704  

Suzano SA

    2,966,042       25,233,934  

Telefonica Brasil SA

    1,975,719       15,623,766  

Tim SA

    3,349,641       7,616,918  

TOTVS SA

    2,106,702       11,561,268  

Ultrapar Participacoes SA

    2,883,354       7,498,804  

Vale SA

    15,915,048       197,316,738  

Vibra Energia SA

    4,637,709       16,367,126  

WEG SA

    6,751,241       36,712,403  
   

 

 

 
   

 

 

 

982,356,946

 

 

Chile — 0.4%            

Banco de Chile

    184,801,789       17,532,715  

Banco de Credito e Inversiones SA

    235,478       6,936,256  

Banco Santander Chile

    265,565,250       10,667,056  

Cencosud SA

    5,727,941       8,007,933  

Cia. Cervecerias Unidas SA

    525,370       2,855,082  

Cia. Sud Americana de Vapores SA

    64,010,011       6,024,261  

Empresas CMPC SA

    4,478,158       8,494,135  

Empresas COPEC SA

    1,564,360       13,494,078  

Enel Americas SA

    85,240,340       9,234,965  

Enel Chile SA

    103,060,332       3,383,024  

Falabella SA

    2,912,146       6,862,429  
   

 

 

 
   

 

 

 

93,491,934

 

 

China — 32.3%            

360 DigiTech Inc.

    400,190       6,395,036  

360 Security Technology Inc., Class A

    2,389,106       2,522,010  
Security   Shares     Value  

 

China (continued)

           

37 Interactive Entertainment Network Technology Group Co. Ltd., Class A

    624,588     $ 1,829,629  

3SBio Inc.(b)

    6,033,500       4,011,423  

AAC Technologies Holdings Inc.(c)

    2,894,500       5,362,419  

Advanced Micro-Fabrication Equipment Inc., Class A(a)

    170,029       3,017,037  

AECC Aviation Power Co. Ltd., Class A

    702,473       4,658,996  

Agricultural Bank of China Ltd., Class A

    22,217,900       9,157,828  

Agricultural Bank of China Ltd., Class H

    114,423,000               37,389,046  

Aier Eye Hospital Group Co. Ltd., Class A

        1,756,805       7,449,792  

Air China Ltd., Class A(a)

    2,495,793       3,710,133  

Air China Ltd., Class H(a)

    6,026,000       4,827,142  

Alibaba Group Holding Ltd.(a)

    60,465,156       721,382,037  

Alibaba Health Information Technology
Ltd.(a)

    18,660,000       10,693,371  

Alibaba Pictures Group Ltd.(a)

    51,160,000       4,024,612  

A-Living Smart City Services Co. Ltd., Class A(b)

    2,494,750       2,569,803  

Aluminum Corp. of China Ltd., Class A

    4,324,300       2,806,812  

Aluminum Corp. of China Ltd., Class H

    14,784,000       5,462,837  

Anhui Conch Cement Co. Ltd., Class A

    1,137,886       5,243,232  

Anhui Conch Cement Co. Ltd., Class H

    4,815,500       18,351,161  

Anhui Gujing Distillery Co. Ltd., Class A

    111,285       4,098,507  

Anhui Gujing Distillery Co. Ltd., Class B

    433,500       6,619,080  

Anhui Kouzi Distillery Co. Ltd., Class A

    184,052       1,343,356  

Anjoy Foods Group Co. Ltd., Class A

    87,400       1,956,736  

ANTA Sports Products Ltd.(c)

    4,878,602       58,750,246  

Asymchem Laboratories Tianjin Co. Ltd., Class A

    99,680       2,469,354  

Autohome Inc., ADR

    302,032       10,755,360  

Avary Holding Shenzhen Co. Ltd., Class A

    567,900       2,424,746  

AVIC Electromechanical Systems Co. Ltd., Class A

    1,236,000       1,979,023  

AVIC Industry-Finance Holdings Co. Ltd., Class A

    3,594,289       1,754,901  

AviChina Industry & Technology Co. Ltd., Class H

    10,424,000       5,073,710  

AVICOPTER PLC, Class A

    220,353       1,341,922  

Baidu Inc.(a)

    7,205,856       128,628,683  

Baidu Inc., ADR(a)

    215,578       31,036,767  

Bank of Beijing Co. Ltd., Class A

    5,968,606       3,563,285  

Bank of Chengdu Co. Ltd., Class A

    1,155,395       2,616,907  

Bank of China Ltd., Class A

    10,498,500       4,615,168  

Bank of China Ltd., Class H

    313,691,000       109,468,155  

Bank of Communications Co. Ltd., Class A

    10,732,573       7,105,636  

Bank of Communications Co. Ltd., Class H

    33,669,600       19,183,886  

Bank of Hangzhou Co. Ltd., Class A

    1,611,545       3,335,792  

Bank of Jiangsu Co. Ltd., Class A

    4,193,110       4,387,491  

Bank of Nanjing Co. Ltd., Class A

    2,768,846       4,249,764  

Bank of Ningbo Co. Ltd., Class A

    1,673,379       7,193,973  

Bank of Shanghai Co. Ltd., Class A

    4,303,642       3,675,485  

Baoshan Iron & Steel Co. Ltd., Class A

    5,870,173       4,517,347  

BeiGene Ltd., ADR(a)(c)

    187,750       32,229,165  

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

    8,036,000       5,043,846  

Beijing Enlight Media Co. Ltd., Class A

    1,188,395       1,584,868  

Beijing Enterprises Holdings Ltd.

    2,153,000       6,403,935  

Beijing Enterprises Water Group Ltd.

    18,078,000       4,643,867  

Beijing Kingsoft Office Software Inc., Class A

    119,281       3,097,069  

Beijing New Building Materials PLC, Class A

    514,413       1,949,472  

Beijing Roborock Technology Co. Ltd., Class A

    28,880       1,332,469  

Beijing Shiji Information Technology Co. Ltd., Class A

    529,786       997,879  

Beijing Shunxin Agriculture Co. Ltd., Class A

    296,100       1,020,010  

Beijing Sinnet Technology Co. Ltd., Class A

    748,286       1,002,005  

 

 

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

  15


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Emerging Markets ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

China (continued)

           

Beijing Tiantan Biological Products Corp. Ltd., Class A

    577,614     $ 1,852,138  

Beijing Tongrentang Co. Ltd., Class A

    300,000       2,030,402  

Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., Class A

    150,493       2,781,098  

Beijing-Shanghai High Speed Railway Co. Ltd., Class A

    10,402,100       6,954,678  

Betta Pharmaceuticals Co. Ltd., Class A

    172,796       1,130,925  

BGI Genomics Co. Ltd., Class A

    163,100       1,421,709  

Bilibili Inc., ADR(a)

    638,112       15,927,276  

Bilibili, Inc.(a)

    96,302       2,395,180  

BOC Aviation Ltd.(b)(c)

    888,500       7,111,983  

BOE Technology Group Co. Ltd., Class A

    10,131,000       5,408,650  

Bosideng International Holdings Ltd.

    13,424,000       7,537,454  

BYD Co. Ltd., Class A

    448,312               18,544,957  

BYD Co. Ltd., Class H

    3,271,000       100,796,908  

BYD Electronic International Co. Ltd.(c)

    2,729,000       7,210,368  

Caitong Securities Co. Ltd., Class A

    2,470,474       2,702,076  

CanSino Biologics Inc., Class H(b)(c)

    446,400       2,786,227  

CGN Power Co. Ltd., Class H(b)

    44,370,000       10,552,357  

Changchun High & New Technology Industry Group Inc., Class A

    108,094       2,759,388  

Changjiang Securities Co. Ltd., Class A

    3,585,135       2,939,843  

Changzhou Xingyu Automotive Lighting Systems Co. Ltd., Class A

    98,300       1,990,650  

Chaozhou Three-Circle Group Co. Ltd., Class A

    651,330       2,545,642  

China Cinda Asset Management Co. Ltd., Class H

    36,309,000       4,986,051  

China CITIC Bank Corp. Ltd., Class H

    35,072,800       15,036,059  

China Coal Energy Co. Ltd., Class H

    8,598,000       7,645,918  

China Communications Services Corp. Ltd., Class H

    10,428,000       4,477,748  

China Conch Venture Holdings Ltd.

        6,630,000       13,530,414  

China Construction Bank Corp., Class A

    3,030,768       2,418,029  

China Construction Bank Corp., Class H

    382,029,760       236,164,259  

China CSSC Holdings Ltd., Class A

    1,271,900       4,594,239  

China Eastern Airlines Corp. Ltd., Class A(a)

    3,400,197       2,409,745  

China Energy Engineering Corp. Ltd.

    8,271,652       2,697,958  

China Everbright Bank Co. Ltd., Class A

    11,901,603       4,935,834  

China Everbright Bank Co. Ltd., Class H

    10,134,000       3,106,704  

China Everbright Environment Group Ltd.

    15,224,813       7,525,054  

China Evergrande Group(a)(c)(d)

    13,878,388       1,914,527  

China Feihe Ltd.(b)

    14,339,000       11,867,758  

China Galaxy Securities Co. Ltd., Class A

    1,778,300       2,541,065  

China Galaxy Securities Co. Ltd., Class H

    13,079,500       7,150,755  

China Gas Holdings Ltd.

    12,071,600       17,082,548  

China Greatwall Technology Group Co. Ltd., Class A

    1,196,273       1,565,753  

China Hongqiao Group Ltd.(c)

    9,627,500       9,335,419  

China International Capital Corp. Ltd., Class H(b)

    6,716,800       11,816,878  

China Jinmao Holdings Group Ltd.

    22,510,000       4,739,963  

China Jushi Co. Ltd., Class A

    1,231,940       2,562,847  

China Lesso Group Holdings Ltd.

    4,677,000       5,559,091  

China Life Insurance Co. Ltd., Class A

    1,026,512       4,549,935  

China Life Insurance Co. Ltd., Class H

    28,122,000       40,319,152  

China Literature Ltd.(a)(b)

    1,637,400       6,635,255  

China Longyuan Power Group Corp. Ltd., Class H

    13,532,000       21,856,407  

China Medical System Holdings Ltd.

    5,619,000       8,316,005  

China Meidong Auto Holdings Ltd.

    2,372,000       4,823,588  

China Mengniu Dairy Co. Ltd.

    12,648,000       57,273,650  

China Merchants Bank Co. Ltd., Class A

    5,095,389       25,734,744  

China Merchants Bank Co. Ltd., Class H

    15,457,967       79,053,757  
Security   Shares     Value  

 

China (continued)

           

China Merchants Energy Shipping Co. Ltd., Class A

    1,864,000     $ 2,021,189  

China Merchants Port Holdings Co. Ltd.

    5,524,000       8,293,000  

China Merchants Securities Co. Ltd., Class A

    2,142,179       4,098,347  

China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A

    1,971,190       4,159,419  

China Minsheng Banking Corp. Ltd., Class A

    10,867,955       5,657,182  

China Minsheng Banking Corp. Ltd., Class H

    21,000,048       6,680,077  

China National Building Material Co. Ltd., Class H

    15,628,000       14,757,046  

China National Chemical Engineering Co. Ltd., Class A

    1,932,467       2,400,806  

China National Nuclear Power Co. Ltd., Class A

    4,944,800       4,544,922  

China Northern Rare Earth Group High-Tech Co. Ltd., Class A

    971,154       4,215,065  

China Oilfield Services Ltd., Class H

        7,634,000       7,928,926  

China Overseas Land & Investment Ltd.

    15,247,460               40,977,103  

China Overseas Property Holdings Ltd.

    5,255,000       5,576,781  

China Pacific Insurance Group Co. Ltd., Class A

    1,965,407       5,941,857  

China Pacific Insurance Group Co. Ltd., Class H

    10,063,200       21,317,042  

China Petroleum & Chemical Corp., Class A

    9,256,289       5,721,020  

China Petroleum & Chemical Corp., Class H

    100,668,800       47,338,988  

China Power International Development Ltd.

    22,103,000       12,339,062  

China Railway Group Ltd., Class A

    5,531,200       4,595,686  

China Railway Group Ltd., Class H

    16,475,000       9,431,823  

China Resources Beer Holdings Co. Ltd.

    6,500,000       45,311,612  

China Resources Cement Holdings Ltd.(c)

    10,120,000       6,238,060  

China Resources Gas Group Ltd.

    3,718,500       14,477,628  

China Resources Land Ltd.

    12,803,333       52,420,000  

China Resources Mixc Lifestyle Services Ltd.(b)

    2,732,600       12,391,710  

China Resources Power Holdings Co. Ltd.

    7,786,999       15,483,196  

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A

    352,699       2,010,923  

China Ruyi Holdings Ltd.(a)(c)

    18,708,000       4,747,461  

China Shenhua Energy Co. Ltd., Class A

    1,804,539       7,908,585  

China Shenhua Energy Co. Ltd., Class H

    13,487,000       42,298,885  

China Southern Airlines Co. Ltd., Class A(a)

    3,640,700       3,382,994  

China Southern Airlines Co. Ltd., Class H(a)

    6,546,000       3,533,264  

China State Construction Engineering Corp. Ltd., Class A

    10,511,671       7,806,537  

China State Construction International Holdings Ltd.

    8,432,000       9,736,019  

China Suntien Green Energy Corp. Ltd., Class H

    7,793,000       3,495,127  

China Taiping Insurance Holdings Co. Ltd.

    5,742,260       5,862,707  

China Three Gorges Renewables Group Co. Ltd., Class A

    7,304,825       6,430,195  

China Tourism Group Duty Free Corp. Ltd., Class A

    472,832       13,332,966  

China Tower Corp. Ltd., Class H(b)

    176,810,000       22,047,826  

China Traditional Chinese Medicine Holdings Co. Ltd.

    11,486,000       4,953,146  

China United Network Communications Ltd., Class A

    8,822,100       4,525,236  

China Vanke Co. Ltd., Class A

    2,608,334       6,270,506  

China Vanke Co. Ltd., Class H

    6,429,331       12,551,527  

China Yangtze Power Co. Ltd., Class A

    5,697,415       19,731,948  

China Zhenhua Group Science & Technology Co. Ltd., Class A

    184,700       2,988,308  

China Zheshang Bank Co. Ltd., Class A(a)

    6,175,500       2,901,599  

Chinasoft International Ltd.

    11,318,000       8,847,274  

Chongqing Brewery Co. Ltd., Class A

    132,500       2,135,877  

Chongqing Changan Automobile Co. Ltd., Class A

    2,095,817       4,383,683  

 

 

16  

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


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Emerging Markets ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

China (continued)

           

Chongqing Zhifei Biological Products Co. Ltd., Class A

    395,676     $ 5,368,443  

CIFI Holdings Group Co. Ltd.(c)

    15,951,991       4,037,364  

CITIC Ltd.

    23,338,000       24,058,639  

CITIC Securities Co. Ltd., Class A

    3,430,818       9,651,461  

CITIC Securities Co. Ltd., Class H

    8,072,600       16,361,843  

CMOC Group Ltd., Class A

    5,454,698       3,870,042  

CMOC Group Ltd., Class H

    12,735,000       5,678,747  

Contemporary Amperex Technology Co. Ltd., Class A(a)

    567,330               39,324,138  

COSCO SHIPPING Holdings Co. Ltd., Class A

        3,232,164       6,604,179  

COSCO SHIPPING Holdings Co. Ltd., Class H

    12,643,849       18,875,499  

COSCO SHIPPING Ports Ltd.(c)

    7,814,000       5,056,261  

Country Garden Holdings Co. Ltd.(c)

    31,658,939       9,345,585  

Country Garden Services Holdings Co. Ltd.

    7,992,000       15,705,582  

CRRC Corp. Ltd., Class A

    7,383,400       5,342,643  

CRRC Corp. Ltd., Class H

    16,466,000       6,156,463  

CSC Financial Co. Ltd., Class A

    1,271,433       4,879,195  

CSPC Pharmaceutical Group Ltd.

    35,874,479       36,391,920  

Dali Foods Group Co. Ltd.(b)

    9,102,000       4,160,999  

Daqin Railway Co. Ltd., Class A

    4,144,900       3,864,800  

Daqo New Energy Corp., ADR(a)

    238,288       15,886,661  

DHC Software Co. Ltd., Class A

    2,130,498       1,786,185  

Dongfeng Motor Group Co. Ltd., Class H

    11,552,000       7,324,522  

Dongxing Securities Co. Ltd., Class A

    1,766,797       2,119,708  

Dongyue Group Ltd.

    6,074,000       6,817,109  

East Money Information Co. Ltd., Class A

    3,288,299       10,493,709  

Ecovacs Robotics Co. Ltd., Class A

    147,053       1,729,895  

ENN Energy Holdings Ltd.

    3,172,900       46,094,041  

Eve Energy Co. Ltd., Class A

    500,853       6,813,886  

Everbright Securities Co. Ltd., Class A

    1,058,983       2,452,152  

Fangda Carbon New Material Co. Ltd., Class A(a)

    1,350,034       1,357,352  

Far East Horizon Ltd.(c)

    6,280,000       4,757,437  

Fiberhome Telecommunication Technologies Co. Ltd., Class A

    823,381       1,709,766  

First Capital Securities Co. Ltd., Class A

    2,174,500       1,930,080  

Flat Glass Group Co. Ltd., Class A(a)

    479,000       2,764,252  

Flat Glass Group Co. Ltd., Class H(a)

    1,663,000       5,477,395  

Focus Media Information Technology Co. Ltd., Class A

    3,968,778       3,465,539  

Foshan Haitian Flavouring & Food Co. Ltd., Class A

    949,750       11,050,351  

Fosun International Ltd.

    10,176,500       7,511,598  

Founder Securities Co. Ltd., Class A

    3,736,587       3,749,588  

Foxconn Industrial Internet Co. Ltd., Class A

    2,779,897       3,728,469  

Fuyao Glass Industry Group Co. Ltd., Class A

    557,772       3,148,943  

Fuyao Glass Industry Group Co. Ltd., Class H(b)

    2,414,400       11,521,122  

Ganfeng Lithium Co. Ltd., Class A

    429,073       5,289,136  

Ganfeng Lithium Co. Ltd., Class H(b)(c)

    1,446,080       12,704,476  

GCL System Integration Technology Co. Ltd., Class A(a)

    2,172,000       1,148,997  

GD Power Development Co. Ltd., Class A(a)

    5,115,100       3,209,575  

GDS Holdings Ltd., ADR(a)

    433,200       11,800,368  

Geely Automobile Holdings Ltd.

    24,023,000       48,267,437  

GEM Co. Ltd., Class A

    1,854,000       2,232,221  

Gemdale Corp., Class A

    1,236,730       2,083,961  

Genscript Biotech Corp.(a)

    4,678,000       15,026,635  

GF Securities Co. Ltd., Class A

    1,518,694       3,590,585  

GF Securities Co. Ltd., Class H

    4,471,400       5,841,020  

GigaDevice Semiconductor Inc., Class A

    182,794       3,048,440  

Ginlong Technologies Co. Ltd., Class A

    103,600       3,418,533  
Security   Shares     Value  

 

China (continued)

           

GoerTek Inc., Class A

    918,600     $ 4,304,419  

Gotion High-tech Co. Ltd., Class A

    487,223       2,405,655  

Great Wall Motor Co. Ltd., Class A

    665,000       3,206,301  

Great Wall Motor Co. Ltd., Class H

    12,127,500       18,195,261  

Gree Electric Appliances Inc. of Zhuhai, Class A

    812,400       3,741,126  

Greentown China Holdings Ltd.

    3,603,500       6,799,032  

Greentown Service Group Co. Ltd.

    5,874,000       4,243,695  

Guangdong Haid Group Co. Ltd., Class A

    456,627       4,025,379  

Guangdong Investment Ltd.

    11,932,110       10,931,629  

Guanghui Energy Co. Ltd., Class A

    1,922,600       3,525,781  

Guangzhou Automobile Group Co. Ltd., Class A

    1,266,100       2,538,657  

Guangzhou Automobile Group Co. Ltd., Class H

    11,835,838       10,176,572  

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A

    651,496       2,562,200  

Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A

    143,984       1,386,510  

Guangzhou Shiyuan Electronic Technology Co. Ltd., Class A

    185,891       1,814,735  

Guangzhou Tinci Materials Technology Co. Ltd., Class A

    504,200       3,452,549  

Guosen Securities Co. Ltd., Class A

        2,401,851       3,202,720  

Guotai Junan Securities Co. Ltd., Class A

    2,436,940       5,198,790  

H World Group Ltd., ADR

    776,560               29,221,953  

Haidilao International Holding Ltd.(a)(b)(c)

    4,421,000       10,403,045  

Haier Smart Home Co. Ltd., Class A

    1,735,141       6,465,920  

Haier Smart Home Co. Ltd., Class H

    9,081,200       29,668,267  

Haitian International Holdings Ltd.

    2,749,000       6,734,924  

Haitong Securities Co. Ltd., Class A

    3,185,700       4,356,238  

Haitong Securities Co. Ltd., Class H

    9,969,600       6,527,295  

Hangzhou First Applied Material Co. Ltd., Class A

    372,480       3,476,499  

Hangzhou Robam Appliances Co. Ltd., Class A

    359,064       1,302,583  

Hangzhou Silan Microelectronics Co. Ltd., Class A

    387,300       2,209,586  

Hangzhou Tigermed Consulting Co. Ltd., Class A

    152,300       2,376,604  

Hangzhou Tigermed Consulting Co. Ltd., Class H(b)

    426,600       4,223,707  

Hansoh Pharmaceutical Group Co. Ltd.(b)

    4,780,000       9,536,752  

Henan Shuanghui Investment & Development Co. Ltd., Class A

    944,400       3,656,417  

Hengan International Group Co. Ltd.

    2,619,500       12,535,643  

Hengli Petrochemical Co. Ltd., Class A

    1,576,491       4,368,664  

Hengyi Petrochemical Co. Ltd., Class A

    1,648,429       2,154,018  

Hithink RoyalFlush Information Network Co. Ltd., Class A

    168,400       2,064,128  

Hopson Development Holdings Ltd.(c)

    3,149,569       4,330,611  

Hoshine Silicon Industry Co. Ltd., Class A

    144,300       2,334,131  

Hua Hong Semiconductor Ltd.(a)(b)

    2,333,000       6,848,443  

Huadong Medicine Co. Ltd., Class A

    519,805       3,157,026  

Huafon Chemical Co. Ltd., Class A

    1,804,300       1,956,879  

Hualan Biological Engineering Inc., Class A

    560,783       1,596,449  

Huaneng Power International Inc., Class A(a)

    2,359,400       2,781,858  

Huaneng Power International Inc., Class H(a)(c)

    15,952,000       8,152,509  

Huatai Securities Co. Ltd., Class A

    2,517,609       4,769,705  

Huatai Securities Co. Ltd., Class H(b)

    5,194,400       6,942,948  

Huaxia Bank Co. Ltd., Class A

    3,994,780       2,967,382  

Huaxin Cement Co. Ltd., Class A

    482,206       1,209,213  

Huayu Automotive Systems Co. Ltd., Class A

    917,268       2,470,618  

Huizhou Desay Sv Automotive Co. Ltd., Class A

    155,400       3,424,637  

Hundsun Technologies Inc., Class A

    596,237       2,890,004  

Hutchmed China Ltd., ADR(a)(c)

    349,246       4,491,304  

Hygeia Healthcare Holdings Co. Ltd.(a)(b)

    1,387,600       7,489,539  

Iflytek Co. Ltd., Class A

    650,919       3,515,640  

 

 

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

  17


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Emerging Markets ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

China (continued)

           

Imeik Technology Development Co. Ltd., Class A

    47,500     $ 3,825,121  

Industrial & Commercial Bank of China Ltd., Class A

    16,313,362       10,331,657  

Industrial & Commercial Bank of China Ltd., Class H

    223,088,085       113,338,309  

Industrial Bank Co. Ltd., Class A

    5,088,222       12,551,185  

Industrial Securities Co. Ltd., Class A(a)

    3,145,676       2,814,265  

Ingenic Semiconductor Co. Ltd., Class A

    138,100       1,620,044  

Inner Mongolia BaoTou Steel Union Co. Ltd., Class A

    12,803,300       3,713,748  

Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A

        2,944,700       1,850,146  

Inner Mongolia Yili Industrial Group Co. Ltd., Class A

    1,677,170       8,662,315  

Inner Mongolia Yitai Coal Co. Ltd., Class B

    4,604,000       7,748,297  

Innovent Biologics Inc.(a)(b)(c)

    4,095,500               17,264,686  

Inspur Electronic Information Industry Co. Ltd., Class A

    665,590       2,224,879  

Intco Medical Technology Co. Ltd., Class A

    208,171       659,869  

iQIYI Inc., ADR(a)(c)

    1,352,269       4,949,305  

JA Solar Technology Co. Ltd., Class A

    588,900       5,556,908  

Jafron Biomedical Co. Ltd., Class A

    251,556       1,705,015  

JCET Group Co. Ltd., Class A

    629,400       2,248,228  

JD Health International Inc.(a)(b)(c)

    4,460,000       30,723,250  

JD.com Inc., Class A

    8,567,054       271,191,171  

Jiangsu Eastern Shenghong Co. Ltd., Class A

    1,124,500       3,117,501  

Jiangsu Expressway Co. Ltd., Class H

    5,294,000       4,534,340  

Jiangsu Hengli Hydraulic Co. Ltd., Class A

    381,188       2,691,495  

Jiangsu Hengrui Medicine Co. Ltd., Class A

    1,624,741       8,126,765  

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

    379,886       2,535,157  

Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A

    377,350       8,951,030  

Jiangsu Zhongtian Technology Co. Ltd., Class A

    910,624       2,919,306  

Jiangxi Copper Co. Ltd., Class A

    1,007,000       2,374,097  

Jiangxi Copper Co. Ltd., Class H

    4,243,000       5,211,139  

Jiangxi Zhengbang Technology Co. Ltd., Class A(a)

    1,165,024       1,004,628  

Jinke Properties Group Co. Ltd., Class A(a)

    1,298,282       468,261  

Jinxin Fertility Group Ltd.(b)

    6,122,500       3,986,829  

JiuGui Liquor Co. Ltd., Class A

    97,800       2,105,315  

Jiumaojiu International Holdings Ltd.(b)

    2,961,000       5,825,432  

Jonjee Hi-Tech Industrial And Commercial Holding Co. Ltd., Class A

    310,425       1,541,319  

JOYY Inc., ADR

    198,520       6,019,126  

Juewei Food Co. Ltd., Class A

    212,814       1,433,764  

Kanzhun Ltd., ADR(a)

    692,111       16,257,687  

KE Holdings Inc., ADR(a)(c)

    2,614,534       47,166,193  

Kingboard Holdings Ltd.

    2,775,500       8,764,191  

Kingboard Laminates Holdings Ltd.(c)

    4,021,500       3,836,160  

Kingdee International Software Group Co. Ltd.(a)(c)

    10,447,000       20,276,612  

Kingfa Sci & Tech Co. Ltd., Class A

    1,121,200       1,738,596  

Kingsoft Corp. Ltd.

    3,866,000       11,749,878  

Kuaishou Technology(a)(b)

    6,955,800       60,268,428  

Kunlun Energy Co. Ltd.

    15,890,000       13,835,848  

Kweichow Moutai Co. Ltd., Class A

    302,187       84,003,093  

LB Group Co. Ltd., Class A

    749,000       1,898,243  

Legend Biotech Corp., ADR(a)

    195,472       9,087,493  

Lenovo Group Ltd.(c)

    28,914,000       23,813,912  

Lens Technology Co. Ltd., Class A

    1,437,200       2,248,306  

Lepu Medical Technology Beijing Co. Ltd., Class A

    664,335       1,815,892  

Li Auto Inc., ADR(a)(c)

    2,182,429       62,788,482  

Li Ning Co. Ltd.

    9,444,000       86,018,850  
Security   Shares     Value  

 

China (continued)

           

Lingyi iTech Guangdong Co., Class A(a)

    3,114,580     $ 2,470,433  

Longfor Group Holdings Ltd.(b)

    7,253,500       23,543,142  

LONGi Green Energy Technology Co. Ltd., Class A

    1,861,631               13,697,890  

Lufax Holding Ltd., ADR

    2,846,915       12,441,019  

Luxshare Precision Industry Co. Ltd., Class A

    1,778,946       9,612,214  

Luzhou Laojiao Co. Ltd., Class A

    362,239       12,244,809  

Mango Excellent Media Co. Ltd., Class A

    495,800       1,982,965  

Maxscend Microelectronics Co. Ltd., Class A

    150,144       2,198,365  

Meinian Onehealth Healthcare Holdings Co. Ltd., Class A(a)

        1,510,680       1,053,414  

Meituan, Class B(a)(b)

    17,521,100       420,807,891  

Metallurgical Corp. of China Ltd., Class A

    5,495,790       2,545,947  

Microport Scientific Corp.(a)(c)

    2,635,000       5,235,952  

Ming Yang Smart Energy Group Ltd., Class A

    587,000       2,268,260  

Ming Yuan Cloud Group Holdings Ltd.

    2,730,000       2,237,566  

Minth Group Ltd.

    3,070,000       8,687,099  

MMG Ltd.(a)(c)

    13,072,000       3,575,982  

Montage Technology Co. Ltd., Class A

    320,200       2,563,530  

Muyuan Foods Co. Ltd., Class A

    1,308,739       11,056,939  

Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd., Class A

    560,853       1,453,155  

Nanjing Securities Co. Ltd., Class A

    1,940,700       2,382,964  

NARI Technology Co. Ltd., Class A

    1,804,245       7,132,895  

National Silicon Industry Group Co. Ltd., Class A(a)

    690,400       2,048,768  

NAURA Technology Group Co. Ltd., Class A

    136,400       5,526,814  

NavInfo Co. Ltd., Class A

    836,600       1,577,573  

NetEase Inc.

    8,260,050       147,502,882  

New China Life Insurance Co. Ltd., Class A

    628,602       2,612,387  

New China Life Insurance Co. Ltd., Class H

    3,053,100       7,186,033  

New Hope Liuhe Co. Ltd., Class A(a)

    1,312,897       2,973,761  

New Oriental Education & Technology Group Inc.(a)

    6,104,800       17,621,502  

Nine Dragons Paper Holdings Ltd.

    6,868,000       5,389,115  

Ninestar Corp., Class A

    528,138       3,366,483  

Ningbo Deye Technology Co. Ltd., NVS

    49,700       2,647,429  

Ningbo Joyson Electronic Corp., Class A(a)

    448,700       1,002,489  

Ningbo Shanshan Co. Ltd.

    634,300       2,271,927  

Ningbo Tuopu Group Co. Ltd., Class A

    340,100       3,867,961  

Ningxia Baofeng Energy Group Co. Ltd., Class A

    1,813,200       3,551,310  

NIO Inc., ADR(a)(c)

    5,448,110       108,471,870  

Nongfu Spring Co. Ltd., Class H(b)

    7,123,400       42,354,666  

OFILM Group Co. Ltd., Class A(a)

    1,286,865       1,189,674  

Oppein Home Group Inc., Class A

    165,900       3,126,638  

Orient Overseas International Ltd.(c)

    533,000       14,857,347  

Orient Securities Co. Ltd., Class A

    2,248,134       2,806,343  

Ovctek China Inc., Class A

    251,700       1,547,668  

People’s Insurance Co. Group of China Ltd. (The), Class A

    2,486,600       1,791,120  

People’s Insurance Co. Group of China Ltd. (The), Class H

    29,025,000       8,970,569  

Perfect World Co. Ltd., Class A

    632,100       1,348,154  

PetroChina Co. Ltd., Class A

    5,454,000       4,225,669  

PetroChina Co. Ltd., Class H

    84,080,000       39,098,662  

Pharmaron Beijing Co. Ltd., Class A

    286,200       2,814,264  

Pharmaron Beijing Co. Ltd., Class H(b)

    751,400       4,970,274  

PICC Property & Casualty Co. Ltd., Class H

    27,561,192       29,811,021  

Pinduoduo Inc., ADR(a)

    2,008,293       143,191,291  

Ping An Bank Co. Ltd., Class A

    4,685,567       8,611,592  

Ping An Healthcare and Technology Co. Ltd.(a)(b)(c)

    2,025,800       5,484,106  

 

 

18  

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


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Emerging Markets ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

China (continued)

           

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

    2,817,384     $ 17,803,162  

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

    24,941,500       146,697,010  

Poly Developments and Holdings Group Co. Ltd., Class A

    3,004,984       7,508,616  

Pop Mart International Group Ltd.(b)(c)

    2,215,800       5,726,291  

Postal Savings Bank of China Co. Ltd., Class A

    7,126,000       4,637,916  

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

    31,238,000               18,648,187  

Power Construction Corp. of China Ltd., Class A

    3,941,200       4,386,881  

Pylon Technologies Co. Ltd., NVS

    38,801       2,409,791  

Qinghai Salt Lake Industry Co. Ltd., Class A(a)

        1,323,200       5,325,365  

RLX Technology Inc., ADR(a)(c)

    1,913,703       2,736,595  

Rongsheng Petrochemical Co. Ltd., Class A

    2,696,758       5,505,282  

SAIC Motor Corp. Ltd., Class A

    2,062,606       4,599,053  

Sangfor Technologies Inc., Class A

    121,600       1,692,276  

Sany Heavy Equipment International Holdings Co. Ltd.

    4,965,000       5,143,068  

Sany Heavy Industry Co. Ltd., Class A

    2,212,752       5,024,016  

Satellite Chemical Co. Ltd., Class A

    807,239       2,554,083  

SDIC Power Holdings Co. Ltd., Class A

    2,374,090       3,826,478  

Seazen Group Ltd.(a)

    7,698,000       2,555,298  

Seazen Holdings Co. Ltd., Class A(a)

    578,873       1,739,104  

SF Holding Co. Ltd., Class A

    1,201,235       8,558,985  

SG Micro Corp., Class A

    103,086       2,375,029  

Shaanxi Coal Industry Co. Ltd., Class A

    2,670,176       8,504,361  

Shandong Gold Mining Co. Ltd., Class A

    1,413,136       3,649,563  

Shandong Gold Mining Co. Ltd., Class H(b)(c)

    2,615,250       4,433,510  

Shandong Hualu Hengsheng Chemical Co. Ltd., Class A

    699,880       2,947,948  

Shandong Linglong Tyre Co. Ltd., Class A

    469,800       1,543,871  

Shandong Weigao Group Medical Polymer Co. Ltd., Class H

    10,074,000       13,666,075  

Shanghai Bairun Investment Holding Group Co. Ltd., Class A

    363,372       1,221,540  

Shanghai Baosight Software Co. Ltd., Class A

    470,480       2,576,829  

Shanghai Baosight Software Co. Ltd., Class B

    2,293,511       6,946,189  

Shanghai Construction Group Co. Ltd., Class A

    3,391,552       1,328,380  

Shanghai Electric Group Co. Ltd., Class A(a)

    4,959,500       3,036,261  

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A

    578,100       3,369,826  

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H

    1,888,500       6,075,339  

Shanghai International Airport Co. Ltd., Class A(a)

    310,298       2,525,354  

Shanghai International Port Group Co. Ltd., Class A

    3,068,399       2,396,622  

Shanghai Junshi Biosciences Co. Ltd., Class A(a)

    161,600       1,234,462  

Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B

    5,218,006       4,346,964  

Shanghai M&G Stationery Inc., Class A

    295,337       1,894,190  

Shanghai Pharmaceuticals Holding Co. Ltd., Class A

    829,800       2,071,642  

Shanghai Pharmaceuticals Holding Co. Ltd., Class H

    2,972,500       4,321,398  

Shanghai Pudong Development Bank Co. Ltd., Class A

    7,508,122       7,885,990  

Shanghai Putailai New Energy Technology Co. Ltd., Class A

    393,400       3,586,954  

Shanghai RAAS Blood Products Co. Ltd., Class A

    2,885,000       2,434,687  

Shanxi Coking Coal Energy Group Co. Ltd., Class A

    988,700       1,836,413  

Shanxi Meijin Energy Co. Ltd., Class A

    1,260,200       2,060,008  
Security   Shares     Value  

 

China (continued)

           

Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A

    300,400     $ 12,718,871  

Shengyi Technology Co. Ltd., Class A

    818,000       1,876,922  

Shennan Circuits Co. Ltd., Class A

    155,140       1,898,986  

Shenwan Hongyuan Group Co. Ltd., Class A

    6,793,470       4,097,260  

Shenzhen Dynanonic Co. Ltd.

    47,700       2,202,579  

Shenzhen Inovance Technology Co. Ltd., Class A

    725,897       6,275,005  

Shenzhen International Holdings Ltd.

    5,004,500       4,313,913  

Shenzhen Kangtai Biological Products Co. Ltd., Class A

    302,635       1,470,326  

Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A

    298,032               12,827,505  

Shenzhen Overseas Chinese Town Co. Ltd., Class A

        2,387,500       1,842,370  

Shenzhen Transsion Holding Co. Ltd., Class A

    193,601       1,904,380  

Shenzhou International Group Holdings Ltd.

    3,302,600       34,516,483  

Shimao Group Holdings Ltd.(c)(d)

    4,704,500       1,348,647  

Sichuan Chuantou Energy Co. Ltd., Class A

    1,439,660       2,744,994  

Sichuan Kelun Pharmaceutical Co. Ltd., Class A

    719,278       2,229,932  

Sichuan Swellfun Co. Ltd., Class A

    147,993       1,558,750  

Sino Biopharmaceutical Ltd.

    41,478,750       21,785,288  

Sinoma Science & Technology Co. Ltd., Class A

    570,600       1,903,761  

Sinopharm Group Co. Ltd., Class H

    5,425,200       12,086,222  

Sinotruk Hong Kong Ltd.

    2,861,000       2,852,513  

Skshu Paint Co. Ltd., Class A(a)

    117,540       1,581,239  

Smoore International Holdings Ltd.(b)(c)

    7,175,000       12,809,352  

Songcheng Performance Development Co. Ltd., Class A

    917,318       1,677,654  

StarPower Semiconductor Ltd., Class A

    48,500       2,769,461  

Sunac China Holdings Ltd.(c)(d)

    12,385,000       3,155,937  

Sungrow Power Supply Co. Ltd., Class A

    372,300       5,957,277  

Sunny Optical Technology
Group Co. Ltd.(c)

    2,844,900       38,839,853  

Sunwoda Electronic Co. Ltd., Class A

    518,600       2,031,768  

Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A

    639,500       2,380,519  

Suzhou Maxwell Technologies Co. Ltd., Class A

    50,400       3,393,494  

TAL Education Group, ADR(a)(c)

    1,743,775       10,079,019  

TBEA Co. Ltd., Class A

    1,066,800       3,809,688  

TCL Technology Group Corp., Class A

    4,260,755       2,549,253  

TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A

    824,293       5,711,655  

Tencent Holdings Ltd.

    24,880,600       1,028,333,752  

Tencent Music Entertainment Group, ADR(a)(c)

    2,810,066       14,359,437  

Thunder Software Technology Co. Ltd., Class A

    128,187       2,266,412  

Tianma Microelectronics Co. Ltd., Class A

    2,205,623       3,003,218  

Tianqi Lithium Corp., Class A(a)

    362,700       5,998,530  

Tingyi Cayman Islands Holding Corp.(c)

    8,064,000       14,319,447  

Tongcheng Travel Holdings Ltd.(a)(c)

    5,025,600       10,293,235  

Tongkun Group Co. Ltd., Class A

    868,900       1,789,113  

Tongwei Co. Ltd., Class A

    1,107,984       8,451,272  

Topchoice Medical Corp., Class A(a)

    91,900       1,541,226  

Topsports International Holdings Ltd.(b)

    7,567,000       5,972,596  

Transfar Zhilian Co. Ltd., Class A

    1,438,598       1,156,832  

TravelSky Technology Ltd., Class H

    3,894,000       6,786,786  

Trina Solar Co. Ltd.

    561,686       5,777,968  

Trip.com Group Ltd., ADR(a)(c)

    2,170,774       55,832,307  

Tsingtao Brewery Co. Ltd., Class A

    244,300       3,806,252  

Tsingtao Brewery Co. Ltd., Class H

    2,402,000       23,325,747  

Unigroup Guoxin Microelectronics Co. Ltd., Class A

    236,339       5,318,219  

Uni-President China Holdings Ltd.

    5,617,000       4,835,942  

 

 

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

  19


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Emerging Markets ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

China (continued)

           

Unisplendour Corp. Ltd., Class A

    885,254     $ 2,206,968  

Vinda International Holdings Ltd.

    1,698,000       4,748,697  

Vipshop Holdings Ltd., ADR(a)

    1,751,980       20,340,488  

Walvax Biotechnology Co. Ltd., Class A

    422,347       2,657,269  

Wanhua Chemical Group Co. Ltd., Class A

    815,991       10,424,112  

Want Want China Holdings Ltd.

    19,683,000       13,865,126  

Weibo Corp., ADR(a)

    273,429       5,657,246  

Weichai Power Co. Ltd., Class A

    2,139,644       3,583,794  

Weichai Power Co. Ltd., Class H

    7,404,800       9,892,911  

Wens Foodstuffs Group Co. Ltd., Class A(a)

    1,794,870       6,147,522  

Western Securities Co. Ltd., Class A

    2,587,710       2,418,275  

Western Superconducting Technologies Co. Ltd., Class A

    168,866       2,482,275  

Wharf Holdings Ltd. (The)

        4,958,000               18,671,641  

Will Semiconductor Co. Ltd. Shanghai, Class A

    299,970       4,047,702  

Wingtech Technology Co. Ltd., Class A

    328,500       3,057,015  

Winning Health Technology Group Co. Ltd., Class A

    875,024       892,513  

Wuhan Guide Infrared Co. Ltd., Class A

    1,395,840       2,876,383  

Wuliangye Yibin Co. Ltd., Class A

    941,328       22,684,341  

WUS Printed Circuit Kunshan Co. Ltd., Class A

    702,803       1,210,810  

WuXi AppTec Co. Ltd., Class A

    680,429       8,785,797  

WuXi AppTec Co. Ltd., Class H(b)

    1,347,870       15,216,112  

Wuxi Biologics Cayman Inc., New(a)(b)

    14,305,000       126,200,113  

Wuxi Shangji Automation Co. Ltd., Class A

    122,080       2,370,506  

XCMG Construction Machinery Co. Ltd., Class A(a)

    3,215,269       2,417,054  

Xiaomi Corp., Class B(a)(b)

    60,845,800       88,874,940  

Xinjiang Goldwind Science & Technology Co. Ltd., Class A

    1,492,493       2,756,185  

Xinjiang Goldwind Science & Technology Co. Ltd., Class H

    2,721,846       4,055,991  

Xinyi Solar Holdings Ltd.(c)

    19,604,000       26,959,790  

XPeng Inc., ADR(a)(c)

    1,687,134       31,245,722  

Xtep International Holdings Ltd.

    5,329,000       7,394,972  

Yadea Group Holdings Ltd.(b)

    4,942,000       9,426,354  

Yankuang Energy Group Co. Ltd., Class A

    659,600       4,569,257  

Yankuang Energy Group Co. Ltd., Class H(c)

    6,092,800       24,117,796  

Yantai Jereh Oilfield Services Group Co. Ltd., Class A

    316,898       1,739,319  

Yealink Network Technology Corp. Ltd., Class A

    288,730       2,980,119  

Yifeng Pharmacy Chain Co. Ltd., Class A

    265,236       2,043,202  

Yihai International Holding Ltd.(c)

    1,934,000       4,870,586  

Yihai Kerry Arawana Holdings Co. Ltd., Class A

    382,700       2,521,503  

YongXing Special Materials Technology Co. Ltd., Class A

    120,100       2,321,195  

Yonyou Network Technology Co. Ltd., Class A

    958,551       2,772,389  

YTO Express Group Co. Ltd., Class A

    952,200       2,701,553  

Yuexiu Property Co. Ltd.

    5,778,000       7,226,961  

Yum China Holdings Inc.

    1,681,873       84,278,656  

Yunda Holding Co. Ltd., Class A

    941,804       2,287,573  

Yunnan Baiyao Group Co. Ltd., Class A

    505,021       3,819,323  

Yunnan Energy New Material Co. Ltd., Class A

    237,200       6,603,132  

Zai Lab Ltd., ADR(a)(c)

    350,512       16,197,160  

Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A

    154,850       6,724,679  

Zhaojin Mining Industry Co. Ltd., Class H(a)

    4,903,000       4,151,535  

Zhejiang Century Huatong Group Co. Ltd., Class A(a)

    2,429,098       1,601,573  

Zhejiang Chint Electrics Co. Ltd., Class A

    609,223       2,777,161  

Zhejiang Dahua Technology Co. Ltd., Class A

    993,084       2,108,404  

Zhejiang Expressway Co. Ltd., Class H

    6,002,000       4,572,981  
Security   Shares     Value  

 

China (continued)

           

Zhejiang Huahai Pharmaceutical Co. Ltd., Class A

    524,404     $ 1,510,782  

Zhejiang Huayou Cobalt Co. Ltd., Class A

    422,915       4,551,657  

Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., Class A

    379,800       4,148,675  

Zhejiang NHU Co. Ltd., Class A

    947,387       3,074,634  

Zhejiang Supor Co. Ltd., Class A

    188,082       1,245,006  

Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A

    188,847       1,262,672  

Zheshang Securities Co. Ltd., Class A

    1,398,600       2,203,509  

ZhongAn Online P&C Insurance Co. Ltd., Class H(a)(b)(c)

    2,822,900       8,272,682  

Zhongji Innolight Co. Ltd., Class A

    314,100       1,328,237  

Zhongsheng Group Holdings Ltd.

    2,457,500       11,619,964  

Zhuzhou CRRC Times Electric Co. Ltd.(c)

    2,477,200       11,978,504  

Zijin Mining Group Co. Ltd., Class A

        5,651,500       7,157,635  

Zijin Mining Group Co. Ltd., Class H

    22,628,000               25,569,029  

Zoomlion Heavy Industry Science and Technology Co. Ltd., Class A

    2,568,654       2,136,157  

Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H

    5,039,200       2,271,652  

ZTE Corp., Class A

    990,600       3,497,015  

ZTE Corp., Class H

    3,006,200       6,347,016  

ZTO Express Cayman Inc., ADR

    1,679,026       43,738,627  
   

 

 

 
   

 

 

 

8,361,114,198

 

 

Colombia — 0.1%            

Bancolombia SA

    1,004,533       7,756,836  

Ecopetrol SA

    19,799,511       10,089,749  

Interconexion Electrica SA ESP

    1,815,930       7,859,873  
   

 

 

 
   

 

 

 

25,706,458

 

 

Czech Republic — 0.1%            

CEZ AS

    655,425       26,552,598  

Komercni Banka AS

    278,775       6,529,196  

Moneta Money Bank AS(b)

    1,302,899       4,129,607  
   

 

 

 
   

 

 

 

37,211,401

 

 

Egypt — 0.1%            

Commercial International Bank Egypt SAE

    6,682,339       13,234,556  

Eastern Co. SAE

    4,132,247       2,093,501  

Egyptian Financial Group-Hermes Holding Co.(a)

    369,274       245,927  
   

 

 

 
   

 

 

 

15,573,984

 

 

Greece — 0.3%            

Alpha Services and Holdings SA(a)

    8,751,191       8,081,753  

Eurobank Ergasias Services and Holdings SA, Class A(a)

    10,369,884       9,621,255  

FF Group(a)(d)

    246,892       2,481  

Hellenic Telecommunications Organization SA

    806,579       12,831,745  

JUMBO SA

    454,557       6,498,234  

Mytilineos SA

    404,126       6,319,597  

National Bank of Greece SA(a)

    2,214,159       7,145,608  

OPAP SA

    746,659       9,834,925  

Public Power Corp. SA(a)

    834,611       4,356,998  
   

 

 

 
   

 

 

 

64,692,596

 

 

Hungary — 0.2%            

MOL Hungarian Oil & Gas PLC

    1,635,369       11,268,266  

OTP Bank Nyrt

    872,751       18,560,800  

Richter Gedeon Nyrt

    557,868       11,247,797  
   

 

 

 
   

 

 

 

41,076,863

 

 

India — 14.3%            

ACC Ltd.

    307,553       8,812,744  

Adani Enterprises Ltd.

    1,129,428       44,819,936  

Adani Green Energy Ltd.(a)

    1,260,348       38,082,471  

 

 

20  

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


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Emerging Markets ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

India (continued)

       

Adani Ports & Special Economic Zone Ltd.

    2,026,978     $ 21,207,257  

Adani Power Ltd.(a)

    3,079,429       15,725,566  

Adani Total Gas Ltd.

    1,102,395       51,412,890  

Adani Transmission Ltd.(a)

    1,108,686       54,368,305  

Ambuja Cements Ltd.

    2,403,224       12,323,340  

Apollo Hospitals Enterprise Ltd.

    404,347       21,724,909  

Asian Paints Ltd.

    1,543,287       64,970,562  

AU Small Finance Bank Ltd.(b)

    634,836       4,992,501  

Aurobindo Pharma Ltd.

    991,175       6,748,145  

Avenue Supermarts Ltd.(a)(b)

    649,270       36,496,916  

Axis Bank Ltd.

    9,052,571       84,365,331  

Bajaj Auto Ltd.

    270,877       13,796,810  

Bajaj Finance Ltd.

    1,085,074       97,929,338  

Bajaj Finserv Ltd.

    154,311       32,350,558  

Balkrishna Industries Ltd.

    320,537       8,142,626  

Bandhan Bank Ltd.(b)

    2,544,001       8,779,799  

Berger Paints India Ltd.

    991,053       8,288,532  

Bharat Electronics Ltd.

    4,918,557       18,793,718  

Bharat Forge Ltd.

    985,125       9,068,737  

Bharat Petroleum Corp. Ltd.

    3,361,441       13,769,764  

Bharti Airtel Ltd.

    8,728,703               79,068,451  

Biocon Ltd.

    1,611,745       6,236,206  

Britannia Industries Ltd.

    430,143       20,126,979  

Cholamandalam Investment and Finance Co. Ltd.

    1,670,400       16,365,087  

Cipla Ltd.

    1,914,187       24,804,668  

Coal India Ltd.

    6,143,129       17,950,140  

Colgate-Palmolive India Ltd.

    481,327       10,106,391  

Container Corp. of India Ltd.

    1,047,220       9,084,094  

Dabur India Ltd.

        2,421,181       17,653,591  

Divi’s Laboratories Ltd.

    525,345       23,718,676  

DLF Ltd.

    2,497,060       12,062,116  

Dr. Reddy’s Laboratories Ltd.

    455,159       24,053,460  

Eicher Motors Ltd.

    546,070       22,790,361  

GAIL India Ltd.

    6,041,367       10,262,034  

Godrej Consumer Products Ltd.(a)

    1,607,075       18,511,707  

Godrej Properties Ltd.(a)

    502,886       8,771,211  

Grasim Industries Ltd.

    1,072,415       22,350,667  

Havells India Ltd.

    1,019,587       17,650,738  

HCL Technologies Ltd.

    4,281,727       49,804,346  

HDFC Life Insurance Co. Ltd.(b)

    3,742,724       26,821,132  

Hero MotoCorp Ltd.

    430,900       15,178,535  

Hindalco Industries Ltd.

    5,483,579       29,740,736  

Hindustan Petroleum Corp. Ltd.

    2,502,267       7,594,992  

Hindustan Unilever Ltd.

    3,277,154       108,493,334  

Housing Development Finance Corp. Ltd.

    6,867,423       207,914,067  

ICICI Bank Ltd.

    20,533,922       225,161,534  

ICICI Lombard General Insurance Co. Ltd.(b)

    919,446       14,769,530  

ICICI Prudential Life Insurance Co. Ltd.(b)

    1,388,982       10,254,022  

Indian Oil Corp. Ltd.

    10,999,561       9,815,002  

Indian Railway Catering & Tourism Corp. Ltd.

    990,897       8,691,538  

Indraprastha Gas Ltd.

    1,161,168       6,070,961  

Indus Towers Ltd.

    2,643,111       6,572,765  

Info Edge India Ltd.

    287,610       15,471,387  

Infosys Ltd.

    13,384,557       246,691,980  

InterGlobe Aviation Ltd.(a)(b)

    386,911       9,662,127  

ITC Ltd.

    11,741,551       46,922,520  

Jindal Steel & Power Ltd.

    1,683,907       9,060,636  

JSW Steel Ltd.

    2,935,412       24,343,770  

Jubilant Foodworks Ltd.

    1,546,836       11,782,617  

Kotak Mahindra Bank Ltd.

    2,208,885       52,403,962  
Security   Shares     Value  

 

India (continued)

       

Larsen & Toubro Infotech Ltd.(b)

    209,464     $ 11,986,230  

Larsen & Toubro Ltd.

    2,735,632       65,291,970  

Lupin Ltd.

    746,139       6,235,067  

Mahindra & Mahindra Ltd.

    3,477,231       56,437,648  

Marico Ltd.

    2,046,151              13,432,697  

Maruti Suzuki India Ltd.

    480,020       54,145,010  

Mindtree Ltd.

    244,142       9,934,127  

Mphasis Ltd.

    334,702       8,805,162  

MRF Ltd.

    7,625       8,127,648  

Muthoot Finance Ltd.

    489,848       6,417,632  

Nestle India Ltd.

    132,486       32,986,214  

NTPC Ltd.

    15,613,339       32,005,125  

Oil & Natural Gas Corp. Ltd.

    9,851,022       17,053,237  

Page Industries Ltd.

    24,804       15,803,050  

Petronet LNG Ltd.

    2,984,542       8,233,630  

PI Industries Ltd.

    319,481       13,660,765  

Pidilite Industries Ltd.

    635,147       21,681,061  

Piramal Pharma Ltd., NVS

    1,909,920       5,131,137  

Power Grid Corp. of India Ltd.

    12,580,575       36,019,082  

Reliance Industries Ltd.

    12,124,944       397,213,709  

Samvardhana Motherson International Ltd.

    5,049,549       7,701,926  

SBI Cards & Payment Services Ltd.

    954,108       10,940,058  

SBI Life Insurance Co. Ltd.(b)

    1,791,913       29,612,678  

Shree Cement Ltd.

    43,159       11,848,024  

Shriram Transport Finance Co. Ltd.

    762,968       12,805,891  

Siemens Ltd.

    299,848       10,765,889  

SRF Ltd.

    601,955       18,996,383  

State Bank of India

    7,142,562       47,026,410  

Sun Pharmaceutical Industries Ltd.

    3,786,810       42,261,615  

Tata Consultancy Services Ltd.

    3,630,978       144,809,157  

Tata Consumer Products Ltd.

    2,248,220       22,722,903  

Tata Elxsi Ltd.

    138,561       15,455,636  

Tata Motors Ltd.(a)

    6,616,752       38,533,264  

Tata Power Co. Ltd. (The)

    5,805,971       17,025,225  

Tata Steel Ltd.

    29,401,154       39,474,058  

Tech Mahindra Ltd.

    2,305,897       30,722,683  

Titan Co. Ltd.

    1,414,954       45,850,582  

Torrent Pharmaceuticals Ltd.

    401,777       7,763,444  

Trent Ltd.

    764,178       13,365,538  

UltraTech Cement Ltd.

    403,865       33,575,262  

United Spirits Ltd.(a)

    1,207,295       12,203,193  

UPL Ltd.

    1,989,550       19,056,016  

Vedanta Ltd.

    3,065,834       10,274,865  

Wipro Ltd.

    5,360,792       27,448,228  

Yes Bank Ltd.(a)

    44,946,224       9,212,413  

Zomato Ltd.(a)

    8,955,265       6,401,451  
   

 

 

 
   

 

 

 

3,688,211,818

 

 

Indonesia — 2.0%            

Adaro Energy Indonesia Tbk PT

    58,999,300       14,065,240  

Adaro Minerals Indonesia Tbk PT(a)

    33,076,700       3,814,638  

Aneka Tambang Tbk

    35,150,800       4,700,246  

Astra International Tbk PT

    80,207,400       37,634,842  

Bank Central Asia Tbk PT

    218,541,100       120,683,385  

Bank Jago Tbk PT(a)

    16,747,000       9,489,533  

Bank Mandiri Persero Tbk PT

    73,614,400       43,806,819  

Bank Negara Indonesia Persero Tbk PT

    30,040,476       17,230,189  

Bank Rakyat Indonesia Persero Tbk PT

    270,196,408       78,905,187  

Barito Pacific Tbk PT

    118,104,900       6,519,706  

Charoen Pokphand Indonesia Tbk PT

    29,203,445       11,559,390  

Gudang Garam Tbk PT

    1,668,800       2,668,561  

 

 

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

  21


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Emerging Markets ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Indonesia (continued)

           

Indah Kiat Pulp & Paper Tbk PT

    11,263,000     $ 6,308,951  

Indofood CBP Sukses Makmur Tbk PT

    9,032,700       5,055,561  

Indofood Sukses Makmur Tbk PT

    16,793,800       7,045,256  

Kalbe Farma Tbk PT

    84,976,115       9,609,007  

Merdeka Copper Gold Tbk PT(a)

    51,809,963               14,898,999  

Sarana Menara Nusantara Tbk PT

    95,234,800       7,961,846  

Semen Indonesia Persero Tbk PT

    11,731,100       5,209,315  

Sumber Alfaria Trijaya Tbk PT

    67,109,900       9,849,183  

Telkom Indonesia Persero Tbk PT

    196,097,200       60,050,996  

Tower Bersama Infrastructure Tbk PT

    24,936,400       4,734,303  

Unilever Indonesia Tbk PT

    30,168,400       9,322,847  

United Tractors Tbk PT

    6,871,353       15,646,529  

Vale Indonesia Tbk PT(a)

    10,441,600       4,279,719  
   

 

 

 
   

 

 

 

511,050,248

 

 

Kuwait — 0.8%            

Agility Public Warehousing Co. KSC

    5,881,632       16,045,982  

Boubyan Bank KSCP

    5,704,433       15,462,430  

Gulf Bank KSCP

    6,563,793       7,452,893  

Kuwait Finance House KSCP

    20,402,479       59,554,442  

Mabanee Co. KPSC

    2,659,251       7,146,993  

Mobile Telecommunications Co. KSCP

    8,161,550       16,022,682  

National Bank of Kuwait SAKP

    28,525,141       97,579,132  
   

 

 

 
   

 

 

 

219,264,554

 

 

Malaysia — 1.5%            

AMMB Holdings Bhd

    7,509,275       6,979,465  

Axiata Group Bhd

    10,722,900       7,271,580  

CIMB Group Holdings Bhd

    26,484,300       31,671,755  

Dialog Group Bhd

    14,416,312       7,798,611  

DiGi.Com Bhd

    12,138,200       10,130,915  

Genting Bhd

    8,227,900       8,599,679  

Genting Malaysia Bhd

    11,619,900       7,712,994  

HAP Seng Consolidated Bhd

    2,629,900       4,083,969  

Hartalega Holdings Bhd(c)

    6,669,900       2,473,921  

Hong Leong Bank Bhd

    2,581,500       12,015,690  

Hong Leong Financial Group Bhd

    1,036,500       4,480,478  

IHH Healthcare Bhd

    7,216,100       9,959,480  

Inari Amertron Bhd

    11,347,900       6,753,914  

IOI Corp. Bhd

    9,799,020       9,261,503  

Kuala Lumpur Kepong Bhd

    1,740,000       8,996,447  

Malayan Banking Bhd

    18,820,300       37,649,961  

Malaysia Airports Holdings Bhd(a)

    2,916,100       3,810,497  

Maxis Bhd(c)

    9,003,200       7,717,727  

MISC Bhd

    4,954,700       7,839,529  

MR DIY Group M Bhd(b)

    9,578,800       4,624,149  

Nestle Malaysia Bhd

    282,100       8,370,857  

Petronas Chemicals Group Bhd

    9,798,500       19,219,453  

Petronas Dagangan Bhd

    1,280,100       6,721,562  

Petronas Gas Bhd

    3,174,200       12,266,736  

PPB Group Bhd

    2,670,660       10,502,428  

Press Metal Aluminium Holdings Bhd

    15,036,000       15,936,601  

Public Bank Bhd

    57,786,050       60,677,664  

QL Resources Bhd

    4,705,300       5,361,866  

RHB Bank Bhd

    5,852,925       7,478,750  

Sime Darby Bhd

    10,401,573       5,299,596  

Sime Darby Plantation Bhd

    8,206,973       8,157,742  

Telekom Malaysia Bhd

    4,715,900       6,269,206  

Tenaga Nasional Bhd

    9,488,850       19,060,387  

Top Glove Corp. Bhd(c)

    20,540,400       3,677,661  
   

 

 

 
   

 

 

 

388,832,773

 

 

Security   Shares     Value  

 

Mexico — 2.0%

           

Alfa SAB de CV, Class A

    11,523,200     $ 7,332,659  

America Movil SAB de CV, Series L, NVS

    110,856,600       94,478,337  

Arca Continental SAB de CV

    1,733,736       11,802,640  

Cemex SAB de CV, NVS(a)

    60,437,873       22,409,397  

Coca-Cola Femsa SAB de CV

    2,051,493       12,543,266  

Fibra Uno Administracion SA de CV

    12,604,700       13,195,003  

Fomento Economico Mexicano SAB de CV

    7,640,500       47,887,521  

Gruma SAB de CV, Class B(c)

    827,135       9,013,027  

Grupo Aeroportuario del Pacifico SAB de CV, Class B

        1,450,800               20,656,068  

Grupo Aeroportuario del Sureste SAB de CV, Class B

    775,100       16,416,892  

Grupo Bimbo SAB de CV, Series A(c)

    5,514,800       18,126,725  

Grupo Carso SAB de CV, Series A1(c)

    1,925,441       6,626,006  

Grupo Financiero Banorte SAB de CV, Class O

    10,303,456       60,849,537  

Grupo Financiero Inbursa SAB de CV, Class O(a)(c)

    8,875,100       13,982,363  

Grupo Mexico SAB de CV, Series B

    12,594,988       47,687,970  

Grupo Televisa SAB, CPO(c)

    9,467,100       11,931,088  

Industrias Penoles SAB de CV

    582,093       4,784,393  

Kimberly-Clark de Mexico SAB de CV, Class A

    5,934,500       8,038,741  

Operadora De Sites Mexicanos SAB de CV

    5,580,100       5,556,142  

Orbia Advance Corp. SAB de CV

    4,090,434       7,719,371  

Promotora y Operadora de Infraestructura SAB de CV

    793,945       5,580,649  

Wal-Mart de Mexico SAB de CV(c)

    20,677,600       67,575,667  
   

 

 

 
   

 

 

 

514,193,462

 

 

Peru — 0.2%            

Cia. de Minas Buenaventura SAA, ADR

    867,823       4,616,818  

Credicorp Ltd.

    284,131       36,621,645  

Southern Copper Corp.

    343,751       16,180,360  
   

 

 

 
   

 

 

 

57,418,823

 

 

Philippines — 0.8%            

Aboitiz Equity Ventures Inc.

    7,384,010       7,364,717  

ACEN Corp.

    35,724,698       4,757,514  

Ayala Corp.

    979,606       12,207,369  

Ayala Land Inc.

    28,771,700       14,605,444  

Bank of the Philippine Islands

    6,770,964       11,432,019  

BDO Unibank Inc.

    7,878,931       18,016,331  

Converge Information and Communications Technology Solutions Inc.(a)

    8,992,000       2,772,704  

Globe Telecom Inc.

    110,870       4,136,729  

GT Capital Holdings Inc.

    365,862       3,133,567  

International Container Terminal Services Inc.

    4,217,720       13,583,850  

JG Summit Holdings Inc.

    12,059,543       10,966,417  

Jollibee Foods Corp.

    1,813,569       7,729,942  

Manila Electric Co.

    898,910       4,814,250  

Metro Pacific Investments Corp.

    46,932,500       3,114,188  

Metropolitan Bank & Trust Co.

    7,164,105       6,695,784  

Monde Nissin Corp.(a)(b)

    24,438,100       7,172,199  

PLDT Inc.

    347,198       10,349,168  

SM Investments Corp.

    951,142       14,039,755  

SM Prime Holdings Inc.

    43,887,325       29,502,034  

Universal Robina Corp.

    3,556,120       7,718,445  
   

 

 

 
   

 

 

 

194,112,426

 

 

Poland — 0.5%            

Allegro.eu SA (a)(b)(c)

    1,467,410       7,696,835  

Bank Polska Kasa Opieki SA

    723,773       10,012,754  

CD Projekt SA(c)

    256,051       4,566,169  

Cyfrowy Polsat SA

    928,748       3,830,416  

 

 

22  

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


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Emerging Markets ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Poland (continued)

           

Dino Polska SA(a)(b)

    203,197     $ 14,823,941  

KGHM Polska Miedz SA

    567,076       10,626,656  

LPP SA

    4,487       8,079,393  

mBank SA(a)(c)

    61,238       2,813,342  

Orange Polska SA(c)

        2,650,073       3,377,123  

PGE Polska Grupa Energetyczna SA(a)

    3,556,251       5,420,995  

Polski Koncern Naftowy ORLEN SA

    1,624,713               21,043,635  

Polskie Gornictwo Naftowe i Gazownictwo SA(a)

    6,967,340       8,276,702  

Powszechna Kasa Oszczednosci Bank Polski SA

    3,426,666       17,094,067  

Powszechny Zaklad Ubezpieczen SA

    2,345,160       14,037,723  

Santander Bank Polska SA

    143,398       6,515,943  
   

 

 

 
   

 

 

 

138,215,694

 

 

Qatar — 1.1%            

Barwa Real Estate Co.

    7,465,281       7,458,825  

Commercial Bank PSQC (The)

    11,647,451       23,142,495  

Industries Qatar QSC

    6,057,614       29,808,415  

Masraf Al Rayan QSC

    21,761,656       26,690,987  

Mesaieed Petrochemical Holding Co.

    18,901,209       13,332,740  

Ooredoo QPSC

    3,042,268       7,504,732  

Qatar Electricity & Water Co. QSC

    1,854,894       9,524,294  

Qatar Fuel QSC

    1,874,491       9,680,936  

Qatar Gas Transport Co. Ltd.

    10,496,939       11,387,997  

Qatar International Islamic Bank QSC

    2,936,123       9,486,746  

Qatar Islamic Bank SAQ

    6,520,139       45,294,005  

Qatar National Bank QPSC

    18,211,329       101,959,214  
   

 

 

 
   

 

 

 

295,271,386

 

 

Romania — 0.0%            

NEPI Rockcastle SA

    1,788,798       9,531,687  
   

 

 

 

 

Russia — 0.0%

           

Alrosa PJSC(d)

    9,805,890       1,608  

Gazprom PJSC(a)(d)

    43,696,315       7,163  

Inter RAO UES PJSC(d)

    121,651,300       19,943  

LUKOIL PJSC(d)

    1,533,792       251  

Magnit PJSC(d)

    246,156       40  

Magnit PJSC, GDR(d)

    2        

MMC Norilsk Nickel PJSC(d)

    233,757       38  

Mobile TeleSystems PJSC(d)

    3,162,662       518  

Moscow Exchange MICEX-RTS PJSC(a)(d)

    5,279,850       866  

Novatek PJSC(d)

    3,371,230       553  

Novolipetsk Steel PJSC(d)

    5,629,360       923  

Ozon Holdings PLC, ADR(a)(d)

    197,078       32  

PhosAgro PJSC(d)

    174,249       29  

PhosAgro PJSC, GDR(d)

    2        

PhosAgro PJSC, New(d)

    3,367       34  

Polymetal International PLC(d)

    1,312,267       215  

Polyus PJSC(d)

    126,490       21  

Rosneft Oil Co. PJSC(d)

    4,281,715       702  

Sberbank of Russia PJSC(a)(d)

    39,606,181       6,493  

Severstal PAO(d)

    805,849       132  

Surgutneftegas PJSC(d)

    26,192,370       4,294  

Tatneft PJSC(d)

    5,175,395       848  

TCS Group Holding PLC, GDR(a)(d)

    445,207       73  

United Co. RUSAL International PJSC(a)(d)

    11,428,270       1,873  

VK Co. Ltd.(a)(d)

    404,870       66  

VTB Bank PJSC(d)

    11,783,971,998       1,932  

X5 Retail Group NV, GDR(d)

    424,766       70  

Yandex NV(a)(d)

    1,127,576       185  
   

 

 

 
   

 

 

 

48,902

 

 

Security   Shares     Value  

 

Saudi Arabia — 4.7%

           

ACWA Power Co.

    328,232     $ 15,253,818  

Advanced Petrochemical Co.

    528,177       7,007,099  

Al Rajhi Bank

        7,821,135       187,236,293  

Alinma Bank

    3,969,558       39,992,350  

Almarai Co. JSC

    946,038       13,314,688  

AngloGold Ashanti Ltd.

    1,672,359       22,333,790  

Arab National Bank

    2,406,937       19,187,226  

Bank AlBilad(a)

    1,961,257       26,351,402  

Bank Al-Jazira

    1,663,498       10,386,978  

Banque Saudi Fransi

    2,373,133               31,317,132  

Bupa Arabia for Cooperative Insurance Co.

    246,451       10,778,543  

Dar Al Arkan Real Estate Development
Co.(a)

    2,173,342       8,148,470  

Dr Sulaiman Al Habib Medical Services Group Co.

    349,152       18,551,257  

Elm Co.

    99,397       9,072,328  

Emaar Economic City(a)

    1,602,140       4,293,091  

Etihad Etisalat Co.

    1,514,143       14,727,350  

Jarir Marketing Co.

    222,898       10,177,009  

Mobile Telecommunications Co.(a)

    1,690,336       5,193,898  

Mouwasat Medical Services Co.

    200,642       12,859,183  

National Industrialization Co.(a)

    1,368,161       5,771,295  

Rabigh Refining & Petrochemical Co.(a)

    1,781,422       8,194,001  

Reinet Investments SCA

    558,972       9,174,271  

Riyad Bank

    5,414,736       50,991,288  

SABIC Agri-Nutrients Co.

    862,217       39,803,282  

Sahara International Petrochemical Co.

    1,466,717       18,525,691  

Saudi Arabian Mining Co.(a)

    3,477,659       68,620,601  

Saudi Arabian Oil Co.(b)

    9,534,856       94,976,543  

Saudi Basic Industries Corp.

    3,554,501       94,426,154  

Saudi British Bank (The)

    3,666,116       38,889,867  

Saudi Electricity Co.

    3,299,705       22,087,773  

Saudi Industrial Investment Group

    1,493,126       10,126,692  

Saudi Investment Bank (The)

    1,968,865       10,468,213  

Saudi Kayan Petrochemical Co.(a)

    2,974,651       11,567,698  

Saudi National Bank (The)

    8,726,941       161,831,189  

Saudi Research & Media Group(a)

    146,994       8,239,629  

Saudi Tadawul Group Holding Co.

    144,140       8,707,633  

Saudi Telecom Co.

    5,879,002       65,271,674  

Savola Group (The)

    982,876       8,514,162  

Yanbu National Petrochemical Co.

    985,080       13,090,060  
   

 

 

 
   

 

 

 

1,215,459,621

 

 

South Africa — 3.2%            

Absa Group Ltd.

    3,226,579       33,418,179  

African Rainbow Minerals Ltd.

    500,600       6,905,452  

Anglo American Platinum Ltd.

    214,806       14,995,510  

Aspen Pharmacare Holdings Ltd.

    1,525,541       13,091,878  

Bid Corp. Ltd.(c)

    1,337,410       25,379,851  

Bidvest Group Ltd. (The)

    1,136,340       14,260,018  

Capitec Bank Holdings Ltd.

    347,240       41,288,694  

Clicks Group Ltd.

    982,326       17,091,311  

Discovery Ltd.(a)

    1,989,961       14,257,954  

Exxaro Resources Ltd.

    1,016,543       12,951,001  

FirstRand Ltd.

    20,021,800       74,783,603  

Foschini Group Ltd. (The)

    1,318,304       9,786,793  

Gold Fields Ltd.

    3,575,423       28,876,374  

Growthpoint Properties Ltd.

    13,343,722       9,924,777  

Harmony Gold Mining Co. Ltd.

    2,261,737       5,759,741  

Impala Platinum Holdings Ltd.

    3,409,292       35,723,745  

Kumba Iron Ore Ltd.

    261,036       5,779,155  

Mr. Price Group Ltd.

    1,031,577       11,174,872  

MTN Group Ltd.

    6,754,605       48,890,125  

 

 

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

  23


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Emerging Markets ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

South Africa (continued)

           

MultiChoice Group

        1,475,107     $ 9,956,192  

Naspers Ltd., Class N

    867,384       122,306,726  

Nedbank Group Ltd.

    1,824,364       21,533,819  

Northam Platinum Holdings Ltd.(a)

    1,372,824       12,919,754  

Old Mutual Ltd.

    18,714,876       11,087,109  

Pepkor Holdings Ltd.(b)

    6,682,131       7,845,152  

Remgro Ltd.

    2,066,049       15,320,654  

Sanlam Ltd.

    7,043,096       21,895,894  

Sasol Ltd.(a)

    2,267,852       43,616,797  

Shoprite Holdings Ltd.

    2,019,712               27,387,335  

Sibanye Stillwater Ltd.

    11,249,767       25,132,216  

SPAR Group Ltd. (The)

    725,291       6,630,143  

Standard Bank Group Ltd.

    5,324,283       47,511,638  

Vodacom Group Ltd.

    2,501,057       18,409,422  

Woolworths Holdings Ltd.

    4,005,488       13,095,371  
   

 

 

 
      828,987,255  
South Korea — 10.9%            

Alteogen Inc.(a)(c)

    117,279       5,529,482  

Amorepacific Corp.(c)

    115,475       10,524,509  

AMOREPACIFIC Group

    115,348       2,985,924  

BGF retail Co. Ltd.

    32,436       3,885,141  

Celltrion Healthcare Co. Ltd.

    342,548       18,331,165  

Celltrion Inc.

    393,286       55,357,940  

Celltrion Pharm Inc.(a)(c)

    68,184       3,965,942  

Cheil Worldwide Inc.

    290,354       4,733,787  

CJ CheilJedang Corp.

    33,321       10,107,517  

CJ Corp.

    57,313       3,334,613  

CJ ENM Co. Ltd.

    42,252       3,079,612  

CJ Logistics Corp.(a)(c)

    33,141       2,921,114  

Coway Co. Ltd.

    226,479       10,745,164  

DB Insurance Co. Ltd.

    184,746       8,227,437  

Doosan Bobcat Inc.

    214,859       5,524,095  

Doosan Enerbility Co. Ltd.(a)

    1,638,207       24,620,035  

Ecopro BM Co. Ltd.(c)

    196,526       16,261,110  

E-MART Inc.

    80,698       5,858,526  

F&F Co. Ltd./New

    71,577       7,552,416  

Green Cross Corp.

    23,639       2,885,724  

GS Engineering & Construction Corp.

    257,106       5,751,036  

GS Holdings Corp.

    201,499       6,917,866  

Hana Financial Group Inc.

    1,176,725       34,297,592  

Hankook Tire & Technology Co. Ltd.

    288,441       8,131,674  

Hanmi Pharm Co. Ltd.(c)

    28,558       6,544,358  

Hanon Systems(c)

    732,251       5,599,667  

Hanwha Solutions Corp.(a)(c)

    459,210       17,905,459  

HD Hyundai Co. Ltd.

    197,560       9,276,097  

HLB Inc.(a)(c)

    388,751       14,193,046  

HMM Co. Ltd.(c)

    1,072,126       17,668,748  

Hotel Shilla Co. Ltd.(c)

    131,161       7,184,885  

HYBE Co. Ltd.(a)(c)

    72,015       9,650,406  

Hyundai Engineering & Construction Co. Ltd.(c)

    314,774       11,255,638  

Hyundai Glovis Co. Ltd.

    73,574       9,640,179  

Hyundai Heavy Industries Co. Ltd.(a)(c)

    71,407       7,598,476  

Hyundai Mobis Co. Ltd.

    242,824       38,723,931  

Hyundai Motor Co.

    555,452       80,697,302  

Hyundai Steel Co.

    362,290       8,834,339  

Iljin Materials Co. Ltd.(c)

    94,960       5,203,802  

Industrial Bank of Korea

    1,004,346       7,151,274  

Kakao Corp.

    1,242,391       67,466,369  

Kakao Games Corp.(a)(c)

    143,227       5,586,508  

KakaoBank Corp.(a)(c)

    479,264       9,704,463  
Security   Shares     Value  

 

South Korea (continued)

           

Kangwon Land Inc.(a)

    386,119     $ 7,612,928  

KB Financial Group Inc.(c)

    1,565,200       57,456,832  

Kia Corp.

    1,045,603       62,671,172  

Korea Aerospace Industries Ltd.(c)

    301,374       13,675,081  

Korea Electric Power Corp.(a)

    1,019,311       15,893,988  

Korea Investment Holdings Co. Ltd.

    162,693       6,859,958  

Korea Shipbuilding & Offshore Engineering Co. Ltd.(a)

    170,253       12,287,318  

Korea Zinc Co. Ltd.

    36,485       18,250,769  

Korean Air Lines Co. Ltd.(a)

    690,473       13,723,208  

Krafton Inc.(a)

    98,164       17,932,110  

KT&G Corp.

    421,059       26,155,108  

Kumho Petrochemical Co. Ltd.(c)

    73,469       7,086,598  

L&F Co. Ltd.(a)(c)

    93,970       15,937,567  

LG Chem Ltd.

    197,117       92,269,734  

LG Corp.

    374,755       22,867,919  

LG Display Co. Ltd.(c)

    921,677       10,651,793  

LG Electronics Inc.

    424,306       31,750,822  

LG Energy Solution(a)(c)

    91,617       31,398,717  

LG H&H Co. Ltd.(c)

    37,363       19,785,242  

LG Innotek Co. Ltd.

    57,707       14,689,775  

LG Uplus Corp.

    831,654       7,122,273  

Lotte Chemical Corp.

    68,429       8,885,129  

Lotte Shopping Co. Ltd.

    47,611       3,494,732  

Meritz Financial Group Inc.(c)

    138,832       3,182,063  

Meritz Fire & Marine Insurance Co. Ltd.(c)

    148,871       4,250,335  

Meritz Securities Co. Ltd.(c)

    1,162,248       4,188,791  

Mirae Asset Securities Co. Ltd.

    1,062,591       5,182,084  

NAVER Corp.

    522,001       92,627,295  

NCSoft Corp.

    65,382       18,373,142  

Netmarble Corp.(b)(c)

    81,008       3,819,246  

NH Investment & Securities Co. Ltd.

    538,901       3,989,392  

Orion Corp./Republic of Korea

    96,215       7,048,185  

Pan Ocean Co. Ltd.

    1,078,252       4,125,783  

Pearl Abyss Corp.(a)(c)

    120,416       5,063,632  

POSCO Chemical Co. Ltd.(c)

    110,916       13,788,394  

POSCO Holdings Inc.

    313,441       59,292,123  

S-1 Corp.(c)

    71,151       3,089,368  

Samsung Biologics Co. Ltd.(a)(b)(c)

    70,813       44,042,786  

Samsung C&T Corp.

    331,038       29,640,099  

Samsung Electro-Mechanics Co. Ltd.

    222,724       23,060,079  

Samsung Electronics Co. Ltd.

    19,014,523       842,357,498  

Samsung Engineering Co. Ltd.(a)(c)

    634,522       11,032,464  

Samsung Fire & Marine Insurance Co. Ltd.

    119,860       17,419,743  

Samsung Heavy Industries Co. Ltd.(a)

    2,501,131       11,097,120  

Samsung Life Insurance Co. Ltd.(c)

    303,757       14,019,613  

Samsung SDI Co. Ltd.

    219,655       97,109,811  

Samsung SDS Co. Ltd.

    132,905       12,684,260  

Samsung Securities Co. Ltd.

    244,492       6,155,120  

SD Biosensor Inc.(c)

    151,053       3,949,217  

Seegene Inc.(c)

    149,659       3,506,201  

Shinhan Financial Group Co. Ltd.

    1,816,065       49,203,499  

SK Biopharmaceuticals Co. Ltd.(a)(c)

    124,529       6,620,843  

SK Bioscience Co. Ltd.(a)(c)

    92,771       7,766,673  

SK Chemicals Co. Ltd.(c)

    49,921       3,618,913  

SK Hynix Inc.

    2,171,903       152,701,999  

SK IE Technology Co. Ltd.(a)(b)(c)

    100,523       6,183,397  

SK Inc.

    146,857       25,401,694  

SK Innovation Co. Ltd.(a)

    221,178       31,136,397  

SK Square Co. Ltd.(a)

    395,366       11,880,340  

 

 

24  

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Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Emerging Markets ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
South Korea (continued)            

SKC Co. Ltd.(c)

    87,840     $ 7,893,306  

S-Oil Corp.

    181,676       13,780,116  

Woori Financial Group Inc.

        2,069,177       18,717,616  

Yuhan Corp.(c)

    213,661       9,035,919  
   

 

 

 
      2,807,907,697  
Taiwan — 14.4%            

Accton Technology Corp.

    2,026,000       18,656,627  

Acer Inc.(c)

    11,600,121       8,331,458  

Advantech Co. Ltd.(c)

    1,685,455       17,980,443  

Airtac International Group(a)(c)

    567,526       15,217,601  

ASE Technology Holding Co. Ltd.(c)

    13,169,110       36,636,596  

Asia Cement Corp.

    9,340,077               13,222,082  

ASMedia Technology Inc.

    112,000       3,380,614  

Asustek Computer Inc.(c)

    2,764,968       23,007,405  

AUO Corp.(c)

    32,637,000       17,820,760  

Catcher Technology Co. Ltd.(a)(c)

    2,632,210       15,955,903  

Cathay Financial Holding Co. Ltd.(c)

    31,044,710       45,164,659  

Chailease Holding Co. Ltd.(c)

    5,511,433       35,387,303  

Chang Hwa Commercial Bank Ltd.

    19,194,412       11,086,896  

Cheng Shin Rubber Industry Co. Ltd.

    7,013,128       8,124,322  

China Airlines Ltd.(c)

    11,161,000       8,256,073  

China Development Financial Holding Corp.(c)

    62,011,588       27,092,431  

China Steel Corp.(c)

    47,411,313       44,901,648  

Chunghwa Telecom Co. Ltd.

    14,890,410       59,086,463  

Compal Electronics Inc.(c)

    16,317,908       12,149,749  

CTBC Financial Holding Co. Ltd.

    69,445,772       53,192,406  

Delta Electronics Inc.(c)

    7,792,000       66,712,353  

E Ink Holdings Inc.

    3,488,000       27,122,117  

E.Sun Financial Holding Co. Ltd.(c)

    51,232,510       47,206,083  

Eclat Textile Co. Ltd.(c)

    766,427       11,100,497  

eMemory Technology Inc.

    263,000       11,762,478  

Eva Airways Corp.(c)

    10,293,000       11,264,343  

Evergreen Marine Corp. Taiwan Ltd.

    10,132,810       29,037,749  

Far Eastern New Century Corp.

    12,284,038       13,163,078  

Far EasTone Telecommunications Co. Ltd.(c)

    6,466,000       15,858,223  

Feng TAY Enterprise Co. Ltd.

    1,745,137       9,790,840  

First Financial Holding Co. Ltd.

    42,548,679       36,914,321  

Formosa Chemicals & Fibre Corp.

    13,936,090       31,308,788  

Formosa Petrochemical Corp.(c)

    4,487,000       12,299,373  

Formosa Plastics Corp.(c)

    16,483,280       49,146,451  

Fubon Financial Holding Co. Ltd.(c)

    28,032,974       52,563,183  

Giant Manufacturing Co. Ltd.

    1,191,203       9,304,975  

Globalwafers Co. Ltd.

    874,000       13,827,441  

Hon Hai Precision Industry Co. Ltd.

    49,499,873       176,258,102  

Hotai Motor Co. Ltd.(c)

    1,226,000       24,566,235  

Hua Nan Financial Holdings Co. Ltd.

    36,381,407       27,613,957  

Innolux Corp.

    39,933,002       15,729,310  

Inventec Corp.(c)

    9,891,281       7,488,387  

Largan Precision Co. Ltd.

    403,000       25,634,895  

Lite-On Technology Corp.(c)

    8,030,246       17,281,323  

MediaTek Inc.(c)

    6,042,338       130,736,399  

Mega Financial Holding Co. Ltd.

    44,505,666       52,201,851  

Micro-Star International Co. Ltd.(c)

    2,698,000       10,100,302  

momo.com Inc(c)

    270,600       6,416,592  

Nan Ya Plastics Corp.(c)

    19,027,160       42,738,731  

Nan Ya Printed Circuit Board Corp.(c)

    921,000       8,035,012  

Nanya Technology Corp.(c)

    4,792,000       8,322,697  

Nien Made Enterprise Co. Ltd.

    715,000       6,602,832  

Novatek Microelectronics Corp.(c)

    2,297,000       19,651,531  

Parade Technologies Ltd.

    308,000       8,622,040  
Security   Shares     Value  
Taiwan (continued)            

Pegatron Corp.(c)

    7,697,414     $ 16,009,266  

Pou Chen Corp.

    8,669,220       8,212,280  

Powerchip Semiconductor Manufacturing Corp.

    11,255,000       12,620,694  

President Chain Store Corp.

    2,253,000       19,798,384  

Quanta Computer Inc.(c)

    10,582,000       27,432,867  

Realtek Semiconductor Corp.(c)

    1,824,637       20,502,886  

Ruentex Development Co. Ltd.(c)

    4,779,161       9,854,874  

Shanghai Commercial & Savings Bank Ltd. (The)(c)

    14,613,318       23,786,199  

Shin Kong Financial Holding Co. Ltd.

    49,911,149       14,338,539  

Silergy Corp.(c)

    1,288,000       22,080,811  

SinoPac Financial Holdings Co. Ltd.

    42,883,212       24,311,016  

Synnex Technology International Corp.

    5,505,834       10,035,937  

Taishin Financial Holding Co. Ltd.

    43,515,009       21,597,662  

Taiwan Cement Corp.(c)

    24,451,751       31,476,442  

Taiwan Cooperative Financial Holding Co. Ltd.(c)

    40,225,716       36,327,446  

Taiwan High Speed Rail Corp.(c)

    7,597,000       7,263,239  

Taiwan Mobile Co. Ltd.

    6,821,600       22,297,358  

Taiwan Semiconductor Manufacturing Co. Ltd.

    98,111,000       1,606,055,619  

Unimicron Technology Corp.(c)

    5,035,000       24,670,117  

Uni-President Enterprises Corp.(c)

    18,996,839       41,053,341  

United Microelectronics Corp.(c)

    47,189,000       62,783,387  

Vanguard International Semiconductor Corp.(c)

    3,594,000       8,688,581  

Voltronic Power Technology Corp.

    268,000       15,122,868  

Walsin Lihwa Corp.(c)

    10,378,406       13,403,019  

Wan Hai Lines Ltd.(c)

    2,813,090       7,928,389  

Win Semiconductors Corp.(c)

    1,321,000       7,672,812  

Winbond Electronics Corp.(c)

    11,961,000       8,617,947  

Wiwynn Corp.(c)

    349,000       8,736,694  

WPG Holdings Ltd.(c)

    6,458,449       10,861,359  

Yageo Corp.(c)

    1,744,861       18,661,664  

Yang Ming Marine Transport Corp.(c)

    6,978,000       17,876,048  

Yuanta Financial Holding Co. Ltd.(c)

    38,971,059       25,868,800  

Zhen Ding Technology Holding Ltd.(c)

    2,612,075       9,693,883  
   

 

 

 
      3,726,674,356  
Thailand — 2.0%            

Advanced Info Service PCL, NVDR

    4,745,000       24,963,983  

Airports of Thailand PCL, NVDR(a)

    16,672,200       33,223,567  

Asset World Corp. PCL, NVDR

    33,969,000       5,202,726  

B Grimm Power PCL, NVDR

    3,685,900       3,733,779  

Bangkok Commercial Asset Management PCL, NVDR(c)

    7,490,400       3,775,205  

Bangkok Dusit Medical Services PCL, NVDR

    40,995,000       32,855,459  

Bangkok Expressway & Metro PCL, NVDR

    29,974,100       7,187,114  

Berli Jucker PCL, NVDR

    4,964,000       4,561,776  

BTS Group Holdings PCL, NVDR

    29,302,800       6,745,294  

Bumrungrad Hospital PCL, NVDR

    2,248,400       13,313,344  

Carabao Group PCL, NVDR

    1,314,900       3,638,018  

Central Pattana PCL, NVDR

    8,111,300       15,382,352  

Central Retail Corp. PCL, NVDR

    7,507,534       8,321,792  

Charoen Pokphand Foods PCL, NVDR

    14,781,600       10,531,967  

CP ALL PCL, NVDR

    23,012,600       38,788,993  

Delta Electronics Thailand PCL, NVDR

    1,256,500       18,004,526  

Electricity Generating PCL, NVDR

    1,072,700       5,378,595  

Energy Absolute PCL, NVDR(c)

    6,830,700       15,947,593  

Global Power Synergy PCL, NVDR(c)

    2,864,000       5,331,224  

Gulf Energy Development PCL, NVDR

    11,987,900       16,822,053  

Home Product Center PCL, NVDR

    23,772,514       9,056,043  

Indorama Ventures PCL, NVDR

    7,137,180       8,452,637  

Intouch Holdings PCL, NVDR

    4,572,625       9,108,360  

 

 

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

  25


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Emerging Markets ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Thailand (continued)

           

JMT Network Services PCL, NVDR

    2,713,800     $ 5,797,916  

Kasikornbank PCL, NVDR

    2,084,600       8,775,759  

Krung Thai Bank PCL, NVDR

    13,846,200       6,402,088  

Krungthai Card PCL, NVDR(c)

    3,772,800       6,220,706  

Land & Houses PCL, NVDR

    31,983,500       7,802,724  

Minor International PCL, NVDR(a)

    12,602,420       11,285,435  

Muangthai Capital PCL, NVDR(c)

    3,120,900       3,630,830  

Osotspa PCL, NVDR

    5,960,300       5,103,213  

PTT Exploration & Production PCL, NVDR

    5,556,639       25,699,627  

PTT Global Chemical PCL, NVDR

    8,786,130       11,423,971  

PTT Oil & Retail Business PCL, NVDR

    12,040,900       8,988,948  

PTT Public Company Ltd., NVDR

    39,255,100       40,331,567  

Ratch Group PCL, NVDR

    3,782,000       4,562,187  

SCB X PCL, NVS(c)

    3,335,200       10,081,828  

SCG Packaging PCL, NVDR

    5,346,600       8,305,237  

Siam Cement PCL (The), NVDR

    3,060,900       30,027,339  

Srisawad Corp. PCL, NVDR(c)

    2,921,000       3,895,463  

Thai Oil PCL, NVDR(c)

    4,759,600       7,918,972  

Thai Union Group PCL, NVDR(c)

    11,659,600       5,590,938  

True Corp. PCL, NVDR(c)

    48,633,001       6,078,546  
   

 

 

 
      518,249,694  
Turkey — 0.3%            

Akbank TAS

    12,272,482       7,906,523  

Aselsan Elektronik Sanayi Ve Ticaret AS

    2,531,502       3,621,391  

BIM Birlesik Magazalar AS

    1,748,489       10,489,963  

Enka Insaat ve Sanayi AS

    2       1  

Eregli Demir ve Celik Fabrikalari TAS(c)

    5,730,581       9,055,259  

Ford Otomotiv Sanayi AS

    280,293       5,092,941  

Haci Omer Sabanci Holding AS

    3,976,987       5,565,934  

KOC Holding AS

    2,899,164       7,233,126  

Turk Hava Yollari AO(a)

    2,242,872       8,995,384  

Turkcell Iletisim Hizmetleri AS

    4,607,242       5,444,381  

Turkiye Is Bankasi AS, Class C(c)

    14,199,227       6,150,730  

Turkiye Petrol Rafinerileri AS(a)

    525,344       10,357,594  

Turkiye Sise ve Cam Fabrikalari AS(c)

    5,776,150       7,868,017  
   

 

 

 
      87,781,244  
United Arab Emirates — 1.3%            

Abu Dhabi Commercial Bank PJSC

    11,188,696       27,601,433  

Abu Dhabi Islamic Bank PJSC

    6,062,912       14,584,530  

Abu Dhabi National Oil Co. for Distribution PJSC

    12,352,939       14,925,993  

Aldar Properties PJSC

    15,388,576       20,153,224  

Dubai Islamic Bank PJSC

    11,474,482       18,249,693  

Emaar Properties PJSC

    16,000,233       27,191,797  

Emirates NBD Bank PJSC

    7,508,578       27,238,779  

Emirates Telecommunications Group Co. PJSC

    13,858,636       97,041,768  

First Abu Dhabi Bank PJSC

    17,590,925       91,357,617  
   

 

 

 
      338,344,834  
   

 

 

 

Total Common Stocks — 97.3%
(Cost: $24,873,954,611)

      25,160,780,854  
   

 

 

 
Preferred Stocks            
Brazil — 1.4%            

Banco Bradesco SA, Preference Shares, NVS

    21,186,468       77,213,485  

Braskem SA, Class A, Preference Shares, NVS

    767,510       4,492,288  

Centrais Eletricas Brasileiras SA, Class B, Preference Shares, NVS

    1,077,207       9,918,156  

Cia. Energetica de Minas Gerais, Preference Shares, NVS

    5,698,424       13,253,678  
Security   Shares     Value  

 

Brazil (continued)

           

Gerdau SA, Preference Shares, NVS

    4,638,617     $ 20,792,816  

Itau Unibanco Holding SA, Preference Shares, NVS

    19,172,732       95,119,217  

Itausa SA, Preference Shares, NVS

    18,219,560       32,044,628  

Petroleo Brasileiro SA, Preference Shares, NVS

    18,859,408       120,463,272  
   

 

 

 
      373,297,540  
Chile — 0.2%            

Sociedad Quimica y Minera de Chile SA, Class B, Preference Shares

    576,643       57,649,502  
   

 

 

 
Colombia — 0.1%            

Bancolombia SA, Preference Shares, NVS

    1,806,285       12,471,482  
   

 

 

 
Russia — 0.0%            

Surgutneftegas PJSC, Preference Shares, NVS(d)

    25,014,400       4,101  
   

 

 

 
South Korea — 0.6%            

Hyundai Motor Co.

   

Preference Shares, NVS

    88,584       6,011,221  

Series 2, Preference Shares, NVS

    137,724       9,554,671  

LG Chem Ltd., Preference Shares, NVS

    31,535       7,046,084  

LG H&H Co. Ltd., Preference Shares, NVS

    7,694       2,096,955  

Samsung Electronics Co. Ltd., Preference Shares, NVS

    3,262,331       131,968,325  
   

 

 

 
      156,677,256  
   

 

 

 

Total Preferred Stocks — 2.3%
(Cost: $418,890,938)

      600,099,881  
   

 

 

 

Rights

   
China — 0.0%            

Kangmei Pharmaceutical Co. Ltd.
(Expires 12/31/49)(a)

    274,733        
   

 

 

 
Thailand — 0.0%            

Thai Oil PCL (Expires 09/14/22)(a)

    404,449        
   

 

 

 
Total Rights — 0.0%
    (Cost: $—)
         
   

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $25,292,845,549)

      25,760,880,735  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 3.3%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 2.42%(e)(f)(g)

    794,752,519       794,990,945  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 2.07%(e)(f)

    64,750,000       64,750,000  
   

 

 

 

Total Short-Term Securities — 3.3%
(Cost: $859,346,790)

      859,740,945  
   

 

 

 

Total Investments in Securities — 102.9%
(Cost: $26,152,192,339)

      26,620,621,680  

Liabilities in Excess of Other Assets — (2.9)%

      (750,240,322
   

 

 

 

Net Assets — 100.0%

    $ 25,870,381,358  
   

 

 

 

 

(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.

 

 

26  

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


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Emerging Markets 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 August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
08/31/21
    Purchases at
Cost
    Proceeds from
Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
08/31/22
    Shares
Held at
08/31/22
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institu-tional, SL Agency Shares

  $ 930,601,386     $     $ (135,461,124 )(a)    $ (241,307   $ 91,990     $ 794,990,945       794,752,519     $ 13,507,638 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    25,200,000       39,550,000 (a)                        64,750,000       64,750,000       196,602        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (241,307   $ 91,990     $ 859,740,945       $ 13,704,240     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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

     2,111        09/16/22      $ 103,640      $ (2,503,829
           

 

 

 

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  

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 2,503,829      $      $      $      $ 2,503,829  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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).

 

 

 

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

  27


Table of Contents

Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI Emerging Markets ETF

 

Derivative Financial Instruments Categorized by Risk Exposure (continued)

 

For the period ended August 31, 2022, 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

   $      $      $ (32,508,753    $      $      $      $ (32,508,753
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (2,503,829)      $      $      $      $ (2,503,829
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   
Futures contracts       

Average notional value of contracts — long

   $ 114,972,424  

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Investments

                 

Assets

                 

Common Stocks

   $ 2,969,616,678        $ 22,184,693,682        $ 6,470,494        $ 25,160,780,854  

Preferred Stocks

     443,418,524          156,677,256          4,101          600,099,881  

Rights

                                 

Money Market Funds

     859,740,945                            859,740,945  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 4,272,776,147        $ 22,341,370,938        $         6,474,595        $ 26,620,621,680  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $ (2,503,829      $        $        $ (2,503,829
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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Table of Contents

 

Statements of Assets and Liabilities

August 31, 2022

 

   

iShares

Currency

Hedged

MSCI

Emerging

Markets ETF

   

iShares

MSCI Emerging

Markets ETF

 

 

 

ASSETS

   

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

  $     $ 25,760,880,735  

Investments, at value — affiliated(c)

    154,724,856       859,740,945  

Cash

    6,039       3,766,641  

Foreign currency, at value(d)

          84,710,132  

Cash pledged for futures contracts

          8,231,000  

Receivables:

   

Investments sold

          52,192,691  

Securities lending income — affiliated

          1,054,596  

Variation margin on futures contracts

          899,854  

Dividends — unaffiliated

          64,294,574  

Dividends — affiliated

    562       83,469  

Tax reclaims

          190,263  

Unrealized appreciation on forward foreign currency exchange contracts

    1,488,898        
 

 

 

   

 

 

 

Total assets

    156,220,355       26,836,044,900  
 

 

 

   

 

 

 

LIABILITIES

   

Cash received as collateral for OTC derivatives

    880,000        

Collateral on securities loaned, at value

          794,398,989  

Payables:

   

Investments purchased

    923,506       151,740,063  

Bank borrowings

          3,757,743  

Investment advisory fees

          15,379,618  

Foreign taxes

          387,129  

Unrealized depreciation on forward foreign currency exchange contracts

    423,805        
 

 

 

   

 

 

 

Total liabilities

    2,227,311       965,663,542  
 

 

 

   

 

 

 

NET ASSETS

  $ 153,993,044     $ 25,870,381,358  
 

 

 

   

 

 

 

NET ASSETS CONSIST OF

   

Paid-in capital

  $ 178,953,567     $ 37,124,757,352  

Accumulated loss

    (24,960,523     (11,254,375,994
 

 

 

   

 

 

 

NET ASSETS

  $ 153,993,044     $ 25,870,381,358  
 

 

 

   

 

 

 

NET ASSET VALUE

   

Shares outstanding

    6,110,000       652,050,000  
 

 

 

   

 

 

 

Net asset value

  $ 25.20     $ 39.68  
 

 

 

   

 

 

 

Shares authorized

    250 million       4 billion  
 

 

 

   

 

 

 

Par value

  $ 0.001     $ 0.001  
 

 

 

   

 

 

 

(a) Investments, at cost — unaffiliated

  $     $ 25,292,845,549  

(b) Securities loaned, at value

  $     $ 708,493,611  

(c)  Investments, at cost — affiliated

  $ 180,435,475     $ 859,346,790  

(d) Foreign currency, at cost

  $     $ 84,927,795  

See notes to financial statements.

 

 

I N A N C I A L    T A T E M E N T  S

  29


Table of Contents

Statements of Operations

Year Ended August 31, 2022

 

   

iShares

Currency

Hedged

MSCI

Emerging

Markets ETF

   

iShares

MSCI Emerging

Markets ETF

(Consolidated)

 

 

 

INVESTMENT INCOME

   

Dividends — unaffiliated

  $     $ 947,452,077  

Dividends — affiliated

    4,332,903       256,934  

Securities lending income — affiliated — net(a)

          13,447,306  

Other income — unaffiliated

          272,221  

Foreign taxes withheld

          (96,718,589

Foreign withholding tax claims

          2,319,352  

Other foreign taxes

          (777,834
 

 

 

   

 

 

 

Total investment income

    4,332,903       866,251,467  
 

 

 

   

 

 

 

EXPENSES

   

Investment advisory fees

    1,421,002       194,187,377  

Commitment fees

    1,997       43,057  

Professional fees

    217       245,053  

Mauritius income taxes

          295  

Interest expense

    464       555,434  
 

 

 

   

 

 

 

Total expenses

    1,423,680       195,031,216  
Less:            

Investment advisory fees waived

    (1,423,680      
 

 

 

   

 

 

 

Total expenses after fees waived

          195,031,216  
 

 

 

   

 

 

 

Net investment income

    4,332,903       671,220,251  
 

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

   

Net realized gain (loss) from:

   

Investments — unaffiliated(b)

          813,504,430  

Investments — affiliated

    (1,561,637     (241,307

In-kind redemptions — unaffiliated(c)

          12,864,557  

In-kind redemptions — affiliated(c)

    4,897,000        

Futures contracts

          (32,508,753

Forward foreign currency exchange contracts

    9,573,652        

Foreign currency transactions

          (21,008,721
 

 

 

   

 

 

 
    12,909,015       772,610,206  
 

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

   

Investments — unaffiliated(d)

          (8,767,149,471

Investments — affiliated

    (54,556,208     91,990  

Futures contracts

          (2,503,829

Forward foreign currency exchange contracts

    1,826,063        

Foreign currency translations

          (2,242,583
 

 

 

   

 

 

 
    (52,730,145     (8,771,803,893
 

 

 

   

 

 

 

Net realized and unrealized loss

    (39,821,130     (7,999,193,687
 

 

 

   

 

 

 

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ (35,488,227   $ (7,327,973,436
 

 

 

   

 

 

 

(a) Net of securities lending income tax paid of

  $     $ 1,386,408  

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

  $     $ (134,079,740

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

   

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

  $     $ 109,498,234  

See notes to financial statements.

 

 

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Table of Contents

 

Statements of Changes in Net Assets

 

    iShares
Currency Hedged MSCI Emerging Markets
ETF
           iShares
MSCI Emerging Markets ETF
(Consolidated)
 
   

        Year Ended

08/31/22

   

        Year Ended

08/31/21

          

Year Ended

08/31/22

   

Year Ended

08/31/21

 

 

 

INCREASE (DECREASE) IN NET ASSETS

               

OPERATIONS

               

Net investment income

             $ 4,332,903                 $ 2,863,955        $ 671,220,251     $ 422,538,344  

Net realized gain (loss)

      12,909,015          1,206,589          772,610,206       (540,784,216

Net change in unrealized appreciation (depreciation)

      (52,730,145        22,470,366          (8,771,803,893     4,851,060,910  
   

 

 

      

 

 

      

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

      (35,488,227        26,540,910          (7,327,973,436     4,732,815,038  
   

 

 

      

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

               

Decrease in net assets resulting from distributions to shareholders

      (4,334,101        (2,865,230        (668,521,066     (421,960,887
   

 

 

      

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

               

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

      (9,364,272        (4,122,036        2,883,573,948       2,647,877,164  
   

 

 

      

 

 

      

 

 

   

 

 

 

NET ASSETS

               

Total increase (decrease) in net assets

      (49,186,600        19,553,644          (5,112,920,554     6,958,731,315  

Beginning of year

      203,179,644          183,626,000          30,983,301,912       24,024,570,597  
   

 

 

      

 

 

      

 

 

   

 

 

 

End of year

    $ 153,993,044        $ 203,179,644        $ 25,870,381,358     $ 30,983,301,912  
   

 

 

      

 

 

      

 

 

   

 

 

 

 

(a) 

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

See notes to financial statements.

 

 

I N A N C I A L    T A T E M E N T  S

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Table of Contents

Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Currency Hedged MSCI Emerging Markets ETF  
 

 

 

 
   

Year Ended

08/31/22

   

Year Ended

08/31/21

   

Year Ended

08/31/20

   

Year Ended

08/31/19

   

Year Ended

08/31/18

 

 

 

Net asset value, beginning of year

  $ 31.31     $ 27.41     $ 24.38     $ 25.70     $ 25.57  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    0.67       0.44       0.71       0.55       0.60  

Net realized and unrealized gain (loss)(b)

    (6.12     3.92       3.03       (1.27     0.12  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    (5.45     4.36       3.74       (0.72     0.72  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions from net investment income(c)

    (0.66     (0.46     (0.71     (0.60     (0.59
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of year

  $ 25.20     $ 31.31     $ 27.41     $ 24.38     $ 25.70  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

         

Based on net asset value

    (17.62 )%      15.96     15.49     (2.72 )%      2.77
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(e)

         

Total expenses

    0.78     0.78     0.78     0.78     0.78
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

    0.00     0.00 %(f)       0.00 %(f)       0.00     0.00
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    2.38     1.41     2.84     2.22     2.25
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

         

Net assets, end of year (000)

  $ 153,993     $ 203,180     $ 183,626     $ 180,376     $ 344,328  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(g)

    4     6     9     7     7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b)

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

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

(f) 

Rounds to less than 0.01%.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

 

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Table of Contents

Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

   

iShares MSCI Emerging Markets ETF

(Consolidated)

 
 

 

 

 
   

Year Ended

08/31/22

   

Year Ended

08/31/21

   

Year Ended

08/31/20

   

Year Ended

08/31/19

   

Year Ended

08/31/18

 

 

 

Net asset value, beginning of year

  $ 52.56     $ 44.56     $ 40.22     $ 43.24     $ 44.76  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    1.09 (b)       0.75       0.98       0.90       0.83 (b)  

Net realized and unrealized gain (loss)(c)

    (12.88     8.01       4.52       (3.02     (1.36
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    (11.79     8.76       5.50       (2.12     (0.53
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions from net investment income(d)

    (1.09     (0.76     (1.16     (0.90     (0.99
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of year

  $ 39.68     $ 52.56     $ 44.56     $ 40.22     $ 43.24  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

         

Based on net asset value

    (22.73 )%(b)       19.72     13.82     (4.87 )%      (1.28 )%(b)  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(f)

         

Total expenses

    0.69     0.69     0.70     0.68     0.67
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

    0.69     0.68     0.70     0.68     0.67
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    2.38 %(b)       1.45     2.38     2.16     1.78 %(b)  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

         

Net assets, end of year (000)

  $ 25,870,381     $ 30,983,302     $ 24,024,571     $ 24,631,575     $ 31,149,012  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(g)

    21     9     19     15     16
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the years ended August 31, 2022 and August 31, 2018:

• Net investment income per share by $ — and $0.02, respectively.

• Total return by 0.01% and 0.07%, respectively.

• Ratio of net investment income to average net assets by 0.01% and 0.04%, respectively.

(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.

 

 

I N A N C I A L    I G H L I G H T  S

  33


Table of Contents

Notes to Financial Statements

 

1.

ORGANIZATION

iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company is organized as a Maryland corporation 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  

Currency Hedged MSCI Emerging Markets

  Diversified  

MSCI Emerging Markets

  Diversified  

Currently the iShares Currency Hedged MSCI Emerging Markets ETF seeks to achieve its investment objective by investing a substantial portion of its assets in the iShares MSCI Emerging Markets ETF (the “underlying fund”). The financial statements, including the accounting policies, and Schedule of Investments for the underlying fund are included in this report and should be read in conjunction with the financial statements of the iShares Currency Hedged MSCI Emerging Markets ETF.

Basis of Consolidation: The accompanying consolidated financial statements for the iShares MSCI Emerging Markets ETF includes the accounts of its subsidiary in the Republic of Mauritius, which is a wholly-owned subsidiary (the “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. The net assets of the Subsidiary as of period end were $0, which is 0.0% of the Fund’s consolidated net assets. Intercompany accounts and transactions, if any, have been eliminated.

Effective September 23, 2021, MSCI Emerging Markets transferred all of the assets of MSCI Emerging Markets’s wholly owned Mauritius Subsidiary to MSCI Emerging Markets through on-exchange transactions in India. MSCI Emerging Markets recognized a net realized gain of $1,882,431,068 as a result of this transaction. After the transfer, MSCI Emerging Markets began making new investments in India directly. On October 29, 2021, MSCI Emerging Markets’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.

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. However, the currency hedged fund has elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for U.S. federal income tax purposes.

Foreign Taxes: Certain Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2022, if any, are disclosed in the Statements of Assets and Liabilities.

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

 

 

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Notes to Financial Statements  (continued)

 

The iShares MSCI Emerging Markets ETF has conducted investment activities in India through its Subsidiary and 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 the 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 Directors of the Company (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.

 

   

Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day may be 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.

 

   

Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE based on that day’s prevailing forward exchange rate for the underlying currencies.

 

 

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Table of Contents

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.

 

 

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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  

 

 

MSCI Emerging Markets

         

Barclays Bank PLC

  $ 864,080      $ (864,080   $      $  

Barclays Capital, Inc.

    1,811,252        (1,811,252             

BNP Paribas SA

    29,258,069        (29,258,069             

BofA Securities, Inc.

    47,385,216        (47,385,216             

Citigroup Global Markets Ltd.

    11,621,278        (11,621,278             

Citigroup Global Markets, Inc.

    64,495,433        (64,495,433             

Credit Suisse Securities (USA) LLC

    6,623,863        (6,623,863             

Goldman Sachs & Co. LLC

    40,630,757        (40,630,757             

Goldman Sachs International

    112,725,609        (112,725,609             

HSBC Bank PLC

    1,828,854        (1,828,854             

J.P. Morgan Securities LLC

    40,696,231        (40,696,231             

J.P. Morgan Securities PLC

    41,347,823        (41,347,823             

Macquarie Bank Ltd.

    7,581,846        (7,581,846             

Morgan Stanley

    275,471,407        (275,471,407             

RBC Capital Markets LLC

    14,385        (14,385             

Scotia Capital (USA), Inc.

    7,716        (7,716             

SG Americas Securities LLC

    2,499,937        (2,499,937             

State Street Bank & Trust Co.

    450,779        (450,779             

Toronto-Dominion Bank

    7,768,882        (7,768,882             

UBS AG

    10,059,518        (10,059,518             

UBS Europe SE

    3,422,121        (3,422,121             

UBS Securities LLC

    1,675,610        (1,675,610             

Wells Fargo Bank N.A.

    252,945        (247,688            5,257 (b) 
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 708,493,611      $ (708,488,354   $      $ 5,257  
 

 

 

    

 

 

   

 

 

    

 

 

 

 

  (a) 

Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities.

 
  (b) 

The market value of the loaned securities is determined as of August 31, 2022. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty.

 

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange contracts are entered into to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).

 

 

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Notes to Financial Statements  (continued)

 

A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a specified date. These contracts help to manage the overall exposure to the currencies in which some of the investments held by the Funds are denominated and in some cases, may be used to obtain exposure to a particular market. The contracts are traded over-the-counter (“OTC”) and not on an organized exchange.

The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation 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 value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a contract changes unfavorably due to movements in the value of the referenced foreign currencies, and such value may exceed the amount(s) reflected in the Statements of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the Statements of Assets and Liabilities. A fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Fund.

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a fund and the counterparty.

Cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately in the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Funds, if any, is noted in the Schedules of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Funds. Any additional required collateral is delivered to/pledged by the Funds on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. A fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Funds from the counterparty are not fully collateralized, each Fund bears the risk of loss from counterparty non-performance. Likewise, to the extent the Funds have delivered collateral to a counterparty and stand ready to perform under the terms of their agreement with such counterparty, each Fund bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.

For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statements of Assets and Liabilities.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Company, 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 directors).

For its investment advisory services to the iShares Currency Hedged MSCI Emerging Markets ETF, BFA is entitled to an annual investment advisory fee of 0.78%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.

For its investment advisory services to the iShares MSCI Emerging Markets 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 $14 billion

    0.75

Over $14 billion, up to and including $28 billion

    0.68  

Over $28 billion, up to and including $42 billion

    0.61  

Over $42 billion, up to and including $56 billion

    0.54  

Over $56 billion, up to and including $70 billion

    0.47  

Over $70 billion, up to and including $84 billion

    0.41  

Over $84 billion

    0.35  

 

 

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Notes to Financial Statements  (continued)

 

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 Statement of Operations does not include acquired fund fees and expenses.

For the iShares Currency Hedged MSCI Emerging Markets ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2025 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Emerging Markets ETF (“EEM”), after taking into account any fee waivers by EEM.

This amount is included in investment advisory fees waived in the Statements of Operations. For the year ended August 31, 2022, the amounts waived in investment advisory fees pursuant to this arrangement were as follows:

 

   
iShares ETF   Amounts Waived    

Currency Hedged MSCI Emerging Markets

  $ 1,423,680    

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, each Fund 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 that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, 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.

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 August 31, 2022, the Funds paid BTC the following amounts for securities lending agent services:

 

   
iShares ETF   Fees Paid  
to BTC  
 

MSCI Emerging Markets

  $ 3,579,205    

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors 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 August 31, 2022, 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)  
 

MSCI Emerging Markets

  $ 77,675,727      $ 113,592,610      $ (147,982,936)   

 

 

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Table of Contents

Notes to Financial Statements  (continued)

 

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 August 31, 2022, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:

 

     
iShares ETF   Purchases      Sales    

Currency Hedged MSCI Emerging Markets

  $ 18,948,654      $ 7,547,366    

MSCI Emerging Markets

    8,200,600,256        5,859,374,813    

For the year ended August 31, 2022, in-kind transactions were as follows:

 

     
iShares ETF   In-kind
Purchases
    

In-kind  

Sales  

 

Currency Hedged MSCI Emerging Markets

  $ 61,196,163      $   70,529,591    

MSCI Emerging Markets

    435,529,039        39,763,950    

 

8.

INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Company’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 August 31, 2022, 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 August 31, 2022, permanent differences attributable to realized gains (losses) from in-kind redemptions were reclassified to the following accounts:

 

     
iShares ETF   Paid-in Capital      Accumulated  
Earnings (Loss)  
 

Currency Hedged MSCI Emerging Markets

  $ 4,134,921      $ (4,134,921)   

MSCI Emerging Markets

    10,747,015        (10,747,015)   

The tax character of distributions paid was as follows:

 

     
iShares ETF   Year Ended
08/31/22
     Year Ended
08/31/21
 

Currency Hedged MSCI Emerging Markets

    

Ordinary income

  $ 4,334,101      $ 2,865,230  
 

 

 

    

 

 

 

MSCI Emerging Markets

    

Ordinary income

  $ 668,521,066      $ 421,960,887  
 

 

 

    

 

 

 

As of August 31, 2022, the tax components of accumulated net earnings (losses) were as follows:

 

         
iShares ETF   Undistributed
Ordinary Income
    

Non-expiring   
Capital Loss   
Carryforwards(a)

   

Net Unrealized   
Gains (Losses)(b)

    Total    

Currency Hedged MSCI Emerging Markets

  $ 2,488,143      $     $ (27,448,666   $ (24,960,523)   

MSCI Emerging Markets

    236,594,953        (12,846,992,803     1,356,021,856       (11,254,375,994)   

 

  (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 foreign currency contracts and futures contracts, the characterization of corporate actions and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.

 

For the year ended August 31, 2022, the iShares Currency Hedged MSCI Emerging Markets ETF utilized $8,227,708 of its capital loss carryforwards.

 

 

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Notes to Financial Statements  (continued)

 

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 August 31, 2022, 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)  
 

Currency Hedged MSCI Emerging Markets

  $ 182,460,943      $ 1,488,898      $ (28,937,564   $ (27,448,666)   

MSCI Emerging Markets

    25,263,305,925        7,117,658,102        (5,760,351,396     1,357,306,706    

 

9.

LINE OF CREDIT

The Funds, 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 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.

For the year ended August 31, 2022, 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
 

Currency Hedged MSCI Emerging Markets

  $ 1,510,000      $ 24,822        1.84

MSCI Emerging Markets

    104,000,000        2,177,430        1.70  

The iShares MSCI Emerging Markets ETF, along with certain other iShares funds (“Mauritius Participating Funds”), was a party to a $750,000,000 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 an 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. Effective April 21, 2022, the iShares MSCI Emerging Markets ETF was removed from the Uncommitted Liquidity Facility as trading out of its holdings in the Mauritius subsidiary was completed on September 23, 2021.

For the year ended August 31, 2022, 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
 

MSCI Emerging Markets

  $ 600,000,000      $ 37,808,219        1.33

 

10.

PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

 

 

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Notes to Financial Statements  (continued)

 

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Market Risk: 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.

An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. Although vaccines have been developed and approved for use by various governments, the duration of this pandemic and its effects cannot be determined with certainty.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.

Certain Funds invest a significant portion of their assets in 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 China or with significant exposure to Chinese issuers or countries. Investments in Chinese securities, including certain Hong Kong-listed securities, involves 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.

 

 

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Notes to Financial Statements  (continued)

 

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, 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.

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.

LIBOR Transition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates ceased to be published or no longer are representative of the underlying market they seek to measure after December 31, 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

 

11.

CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.

Transactions in capital shares were as follows:

 

 

 
    Year Ended
08/31/22
    Year Ended
08/31/21
 
iShares ETF   Shares     Amount     Shares     Amount  

 

 

Currency Hedged MSCI Emerging Markets

       

Shares sold

    2,150,000     $ 61,374,135       1,320,000     $ 41,187,291  

Shares redeemed

    (2,530,000     (70,738,407     (1,530,000     (45,309,327
 

 

 

   

 

 

   

 

 

   

 

 

 
    (380,000   $ (9,364,272     (210,000   $ (4,122,036
 

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Emerging Markets

       

Shares sold

    65,250,000     $ 2,993,594,824       50,400,000     $ 2,647,877,164  

Shares redeemed

    (2,700,000     (110,020,876            
 

 

 

   

 

 

   

 

 

   

 

 

 
    62,550,000     $  2,883,573,948       50,400,000     $   2,647,877,164  
 

 

 

   

 

 

   

 

 

   

 

 

 

The consideration for the purchase of Creation Units of a fund in the Company generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Company 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 Company’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

The Internal Revenue Service 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 the iShares MSCI Emerging Markets ETF is able to pass through to its 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.

 

 

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Table of Contents

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 Directors of

iShares, Inc. and Shareholders of each of the two 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 (two of the funds constituting iShares, Inc., hereafter collectively referred to as the “Funds”) as of August 31, 2022, 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 August 31, 2022, the results of each of their operations and the changes in each of their net assets for the periods indicated in the table below, 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 Currency Hedged MSCI Emerging Markets ETF(1)

 iShares MSCI Emerging Markets ETF(2)

(1) Statement of assets and liabilities, including the schedule of investments as of August 31, 2022 and the related statement of operations for the year ended August 31, 2022, statements of changes in net assets for each of the two years in the period ended August 31, 2022 and the financial highlights for the years ended August 31, 2022, 2021, 2020, 2019 and 2018.

(2) Statement of assets and liabilities, including the schedule of investments as of August 31, 2022 and the related consolidated statement of operations for the year ended August 31, 2022, consolidated statements of changes in net assets for each of the two years in the period ended August 31, 2022 and the financial highlights (consolidated) for the years ended August 31, 2022, 2021, 2020, 2019 and 2018.

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 August 31, 2022 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

October 21, 2022

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

 

 

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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 August 31, 2022:

 

   
iShares ETF  

Qualified Dividend  

Income  

 

Currency Hedged MSCI Emerging Markets

  $ 2,171,071    

MSCI Emerging Markets

    409,118,835    

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 August 31, 2022:

 

     
iShares ETF   Foreign Source
Income Earned
    

Foreign  

Taxes Paid  

 

Currency Hedged MSCI Emerging Markets

  $ 5,547,969      $ 1,213,579    

MSCI Emerging Markets

    982,445,569        228,733,755    

 

 

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Board Review and Approval of Investment Advisory Contract

 

iShares Currency Hedged MSCI Emerging Markets ETF (the “Fund”)

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Board Members who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider and approve the Investment Advisory Agreement between the Company and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 3, 2022 and May 18, 2022, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 13-15, 2022, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, 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 higher 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.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about recent enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies, provided at the May 3, 2022 meeting and throughout the year, and matters related to BFA’s portfolio compliance program.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).

Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund 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.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.

iShares MSCI Emerging Markets ETF (the “Fund”)

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Board Members who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required annually to consider and approve the

 

 

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Table of Contents

Board Review and Approval of Investment Advisory Contract  (continued)

 

Investment Advisory Agreement between the Company and BFA (the “Advisory Agreement”) on behalf of the Fund. The Board’s consideration entails a year-long process whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 3, 2022 and May 18, 2022, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 13-15, 2022, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

Expenses and Performance of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs, 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 higher 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.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of such relevant comparison fund(s) for the same periods. The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including additional detailed information as requested by the Board, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: Based on management’s representations, including information about recent enhancements and initiatives with respect to the iShares business, including with respect to capital markets support and analysis, technology, portfolio management, product design and quality, compliance and risk management, global public policy and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Agreement for the coming year as compared with the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to support the iShares funds and their shareholders and have made significant investments into the iShares business. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies, provided at the May 3, 2022 meeting and throughout the year, and matters related to BFA’s portfolio compliance program.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided to the Fund under the Advisory Agreement supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue,

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below).

Based on this review, the Board concluded that the information considered with respect to the profits realized by BFA and its affiliates under the Advisory Agreement and from other relationships between the Fund and BFA and/or its affiliates, if any, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement and noted that the investment advisory fee rate under the Advisory Agreement for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates: The Board reviewed other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Agreement for the coming year.

 

 

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Table of Contents

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.

August 31, 2022

 

     
    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
 

Currency Hedged MSCI Emerging Markets

  $ 0.657151      $      $      $ 0.657151        100             100

MSCI Emerging Markets(a)

    0.772259               0.322444        1.094703        71             29       100  

 

  (a) 

The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

 

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 the Alternative Investment Fund Managers Regulations 2013 (as amended) and the “Guidelines on sound remuneration policies under the AIFMD” issued by the European Securities and Markets Authority (together the “Regulations”) 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, non-EU and non-UK managers are only required to comply with certain disclosure, reporting and transparency obligations of the Regulations if such managers market a fund to EU investors.

The Company has registered the iShares MSCI Emerging Markets ETF (the “Fund”) to be marketed to United Kingdom and EU investors in the Netherlands, Finland and Sweden.

Report on Remuneration

The Company is required under the Regulations 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 programmes 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, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back 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.

 

 

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Supplemental Information  (unaudited) (continued)

 

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 organisational structures which are independent of the business units. 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.

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. Therefore, the figures disclosed are a sum of each individual’s portion of remuneration attributable to the Fund according to an objective apportionment methodology which acknowledges the multiple-service nature of the Company. Accordingly the figures are not representative of any individual’s actual remuneration or their remuneration structure.

The amount of total & aggregate remuneration awarded by the Company to its staff which has been attributed to the Fund in respect of the Company’s financial year ending December 31, 2021 were as follows:

 

             

iShares ETF

 

Total

Remuneration

    

Fixed

Remuneration

    

Variable

Remuneration

    

No. of

Beneficiaries

    

Senior Management

Remuneration

    

Risk Taker

Remuneration

 

MSCI Emerging Markets

    $2,578,127        $1,205,443        $1,372,684        661        $315,568        $32,614  

Disclosures Under the EU Sustainable Finance Disclosure Regulation

The iShares MSCI Emerging Markets 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 investments do not take into account the criteria for environmentally sustainable economic activities under the EU sustainable investment taxonomy regulation.

 

 

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Director and Officer Information  (unaudited)

 

The Board of Directors 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 Director 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. Directors who are not “interested persons” (as defined in the 1940 Act) of the Company are referred to as independent directors (“Independent Directors”).

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 Director also serves as a Trustee of iShares Trust 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 378 funds as of August 31, 2022. With the exception of Robert S. Kapito, Salim Ramji and Charles Park, the address of each Director 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., Park Avenue Plaza, 55 East 52nd Street, New York, NY 10055. The Board has designated John E. Kerrigan as its Independent Board Chair. Additional information about the Funds’ Directors 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 Directors
       

  Name (Age)

   Position(s)   

Principal Occupation(s)

During Past 5 Years

   Other Directorships Held by Director

Robert S.

Kapito(a) (65)

   Director (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); Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2009).

Salim Ramji(b)

(52)

   Director (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).    Trustee of iShares U.S. ETF Trust (since 2019); Trustee of iShares Trust (since 2019).

(a)  Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company 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 Company due to his affiliations with BlackRock, Inc. and its affiliates.

 

Independent Directors
       
  Name (Age)    Position(s)   

Principal Occupation(s)

During Past 5 Years

   Other Directorships Held by Director

John E.

Kerrigan (67)

   Director (since 2005); Independent Board Chair (since 2022).    Chief Investment Officer, Santa Clara University (since 2002).    Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2005); Independent Board Chair of iShares Trust and iShares U.S. ETF Trust (since 2022).

Jane D.

Carlin (66)

   Director (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).    Trustee of iShares U.S. ETF Trust (since 2015); Trustee of iShares 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 (67)

   Director (since 2017); Audit Committee Chair (since 2019).    Partner, KPMG LLP (2002-2016).    Trustee of iShares U.S. ETF Trust (since 2017); Trustee of iShares Trust (since 2017).

 

 

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Director and Officer Information  (unaudited) (continued)

 

Independent Directors (continued)
       
  Name (Age)    Position(s)   

Principal Occupation(s)

During Past 5 Years

   Other Directorships Held by Director

Cecilia H.

Herbert (73)

   Director (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) and Investment Committee (since 2011); Chair (1994-2005) and Member (since 1992) 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).    Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2005); Trustee of Thrivent Church Loan and Income Fund (since 2019).

Drew E.

Lawton (63)

   Director (since 2017); 15(c) Committee Chair (since 2017).    Senior Managing Director of New York Life Insurance Company (2010-2015).    Trustee of iShares U.S. ETF Trust (since 2017); Trustee of iShares Trust (since 2017).

John E.

Martinez (61)

   Director (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).    Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2003).

Madhav V.

Rajan (58)

   Director (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).    Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2011).

 

Officers
     
  Name (Age)    Position(s)   

Principal Occupation(s)

During Past 5 Years

Armando

Senra (51)

   President (since 2019).    Managing Director, BlackRock, Inc. (since 2007); Head of U.S., Canada and Latam iShares, BlackRock, Inc. (since 2019); Head of Latin America Region, BlackRock, Inc. (2006-2019); Managing Director, Bank of America Merrill Lynch (1994-2006).

Trent

Walker (48)

   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 (55)

   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 (42)

   Secretary (since 2022).    Director, BlackRock, Inc. (since 2018); Vice President, BlackRock, Inc. (2010-2017).

Rachel

Aguirre (40)

   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).

Jennifer

Hsui (46)

   Executive Vice President (since 2022).    Managing Director, BlackRock, Inc. (since 2009); Co-Head of Index Equity (since 2022).

James

Mauro (51)

   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).

 

 

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Director and Officer Information  (unaudited) (continued)

 

 

Effective March 18, 2022, Rachel Aguirre, Jennifer Hsui, and James Mauro have replaced Scott Radell, Alan Mason, and Marybeth Leithead as Executive Vice Presidents.

 

Effective June 15, 2022, Marisa Rolland replaced Deepa Damre Smith as Secretary.

 

 

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Table of Contents

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 Company’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

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Glossary of Terms Used in this Report

 

Portfolio Abbreviations
ADR   

American Depositary Receipt

CPO    Certificates of Participation (Ordinary)
GDR    Global Depositary Receipt
JSC    Joint Stock Company

 

Currency Abbreviations
BRL    Brazilian Real
CLP    Chilean Peso
CNY    Chinese Yuan
EUR    Euro
HKD    Hong Kong Dollar
INR    Indian Rupee
KRW    South Korean Won
MXN    Mexican Peso
MYR    Malaysian Ringgit
THB    Thai Baht
TRY    Turkish Lira
TWD    New Taiwan Dollar
USD    United States Dollar
ZAR    South African Rand
Portfolio Abbreviations (continued)
NVDR    Non-Voting Depositary Receipt
NVS    Non-Voting Shares
PJSC    Public Joint Stock Company

 

 

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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 MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

©2022 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-805-0822

 

 

 

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