LOGO

  OCTOBER 31, 2023

 

  

2023 Annual Report

 

 

iShares Trust

 

·  

iShares iBonds Oct 2024 Term TIPS ETF | IBIA | NYSE Arca

 

·  

iShares iBonds Oct 2025 Term TIPS ETF | IBIB | NYSE Arca

 

·  

iShares iBonds Oct 2026 Term TIPS ETF | IBIC | NYSE Arca

 

·  

iShares iBonds Oct 2027 Term TIPS ETF | IBID | NYSE Arca

 

·  

iShares iBonds Oct 2028 Term TIPS ETF | IBIE | NYSE Arca

 

·  

iShares iBonds Oct 2029 Term TIPS ETF | IBIF | NYSE Arca

 

·  

iShares iBonds Oct 2030 Term TIPS ETF | IBIG | NYSE Arca

 

·  

iShares iBonds Oct 2031 Term TIPS ETF | IBIH | NYSE Arca

 

·  

iShares iBonds Oct 2032 Term TIPS ETF | IBII | NYSE Arca

 

·  

iShares iBonds Oct 2033 Term TIPS ETF | IBIJ | NYSE Arca


The Markets in Review

Dear Shareholder,

The combination of continued economic growth and cooling inflation provided a supportive backdrop for investors during the 12-month reporting period ended October 31, 2023. Significantly tighter monetary policy helped to rein in inflation, as the annual increase in the Consumer Price Index declined to its long-term average of approximately 3% in October 2023. Meanwhile, real economic growth proved more resilient than many investors anticipated. A moderating labor market also helped ease inflationary pressure, although wages continued to grow and unemployment rates touched the lowest levels in decades before rising slightly. This robust labor market powered further growth in consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.

Equity returns were solid during the period, as the durability of consumer spending mitigated investors’ concerns about the economy’s trajectory. The U.S. economy continued to show strength, and growth further accelerated in the third quarter of 2023. However, equity returns were uneven, as the performance of a few notable technology companies supported gains among large-capitalization U.S. stocks, while small-capitalization U.S. stocks declined overall. Meanwhile, international developed market equities advanced, and emerging market equities posted solid gains.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.

The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates six times during the 12-month period, but slowed and then paused its tightening later in the period. The Fed also wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity.

Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for several pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again.

While we favor an overweight position in developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on Japanese stocks in the near term as shareholder-friendly policies generate increased investor interest. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, euro area government bonds and gilts, U.S. mortgage-backed securities, and hard-currency emerging market bonds.

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

 

 

LOGO

Rob Kapito    

President, BlackRock, Inc.

 

LOGO

Rob Kapito

President, BlackRock, Inc.

 

 

Total Returns as of October 31, 2023

 

     
     6-Month    12-Month
   

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

 

 

1.39%

 

 

10.14%

   

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

 

 

(5.29)   

 

 

(8.56) 

   

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

 

 

(7.88)   

 

 

14.40  

   

Emerging market equities (MSCI Emerging Markets Index)

 

 

(4.78)   

 

 

10.80  

   

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

 

 

2.63   

 

 

4.77 

   

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

 

 

(9.70)   

 

 

(3.25) 

   

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

 

 

(6.13)   

 

 

0.36 

   

Tax-exempt municipal bonds (Bloomberg Municipal Bond Index)

 

 

(4.65)   

 

 

2.64 

   

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

 

 

0.02   

 

 

6.23 

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

 

 

2  

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


Table of Contents

 

      Page  

The Markets in Review

     2  

Annual Report:

  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     15  

Disclosure of Expenses

     15  

Schedules of Investments

     16  

Financial Statements

  

Statements of Assets and Liabilities

     29  

Statements of Operations

     32  

Statements of Changes in Net Assets

     35  

Financial Highlights

     40  

Notes to Financial Statements

     50  

Report of Independent Registered Public Accounting Firm

     56  

Important Tax Information

     57  

Board Review and Approval of Investment Advisory Contract

     58  

Supplemental Information

     60  

Trustee and Officer Information

     61  

General Information

     64  

 


Market Overview

 

iShares Trust

U.S. Bond Market Overview

The U.S. fixed-income market, as measured by the Bloomberg U.S. Aggregate Bond Index, posted a return of 0.36% for the 12 months ended October 31, 2023 (the “reporting period”). The benefit of income outweighed the effect of falling prices, leading to a narrow gain.

Several factors played a role in the weak showing for bonds. When the reporting period began, the market was seeing support from a decline in inflation from the peak reached in the months following the outbreak of war in Ukraine. The easing of price pressures fueled expectations that the U.S. Federal Reserve (Fed) could be nearing the end of its long series of interest rate hikes, leading to positive market performance in late 2022. As 2023 progressed, however, the combination of persistent inflation and communications from Fed officials made it clear that although rate hikes were indeed winding down, interest rates were likely to remain “higher for longer.” Continued strength in economic growth, together with elevated housing prices and robust employment, reinforced the notion that the Fed would need to maintain high rates to prevent a reacceleration of inflation. The Fed ultimately raised rates six times over the course of the 12-month period, bringing the benchmark fed funds rate from a range of 3.0-3.25% to 5.25%-5.50%. More important, however, was the fact that the markets continued to push out expectations for the central bank’s first rate cut. At the beginning of the period, the futures markets were indicating the initial rate reduction would occur in the second half of 2023. In contrast, the expected timing had shifted to late 2024 by the end of October.

In this environment, U.S. Treasury yields moved higher across the maturity spectrum (as prices fell). The two-year note climbed 4.48% to 5.09% over the course of the 12-month period, while the 10-year yield rose from 4.05% to 4.93%. Both issues finished October 2023 near their highest levels since 2007. The government bond market, in addition to being affected by rising interest rates, was further pressured by worries that the need for increased Treasury issuance would create an imbalance of supply and demand in the market.

The volatility in U.S. Treasuries, together with lower mortgage pre-payments and the Fed’s efforts to reduce the fixed-income holdings on its balance sheet, caused mortgage-backed securities to finish with a negative return. Conversely, the other major segments of the securitized category—asset-backed securities and commercial mortgage-backed securities—posted gains. Investment-grade corporate bonds also produced positive returns and outpaced Treasuries. The asset class benefited from a larger contribution from income and a decline in its yield spreads versus government issues.

Bonds with maturities of ten years and above, which are most sensitive to rate movements, trailed the broader market. On the other hand, issues in the three- to- seven-year maturity range outperformed. Higher-rated investment-grade bonds, whose performance is dictated more by interest-rate trends than credit developments, generally lagged lower-rated securities.

 

 

4  

2 0 2 3    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


Fund Summary  as of October 31, 2023    iShares® iBonds® Oct 2024 Term TIPS ETF

 

Investment Objective

The iShares iBonds Oct 2024 Term TIPS ETF (the “Fund”) seeks to track the investment results of an index composed of inflation-protected U.S. Treasury bonds maturing in 2024, as represented by the ICE 2024 Maturity US Inflation-Linked Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

   

    Cumulative Total Returns    

    

Since    

Inception    

Fund NAV

  0.65%

Fund Market

  0.76   

Index

  0.67   

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

The inception date of the Fund was September 13, 2023. The first day of secondary market trading was September 15, 2023.

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

Expense Example

 

Actual

 

          Hypothetical 5% Return

 

          
 

Beginning
Account Value

(09/13/23)

 
 

(a) 

      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

           

Beginning
Account Value
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,006.50          $      0.13               $      1,000.00          $      1,024.70          $      0.51          0.10

 

  (a) 

Commencement of operations.

 
  (b) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 48/365 for actual expenses and 184/365 for hypothetical expenses (to reflect the six month period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

CREDIT QUALITY ALLOCATION

 

 

   
Moody’s Credit Ratings*    

Percent of

Net Assets

 

(a) 

Aaa

    99.8

Short-Term and Other Assets

    0.2  

ALL HOLDINGS

 

 

   
Security    

Percent of

Net Assets

 

(a) 

U.S. Treasury Inflation-Indexed Bonds, 0.63%, 01/15/24

    30.8

U.S. Treasury Inflation-Indexed Bonds, 0.13%, 07/15/24

    27.5  

U.S. Treasury Inflation-Indexed Bonds, 0.13%, 10/15/24

    24.4  

U.S. Treasury Inflation-Indexed Bonds, 0.50%, 04/15/24

    17.1  

 

  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

U N D    U M M A R Y

  5


Fund Summary  as of October 31, 2023    iShares® iBonds® Oct 2025 Term TIPS ETF

 

Investment Objective

The iShares iBonds Oct 2025 Term TIPS ETF (the “Fund”) seeks to track the investment results of an index composed of inflation-protected U.S. Treasury bonds maturing in 2025, as represented by the ICE 2025 Maturity US Inflation-Linked Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

   

    Cumulative Total Returns    

    

Since    

Inception    

Fund NAV

  0.33%

Fund Market

  0.44   

Index

  0.35   

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

The inception date of the Fund was September 13, 2023. The first day of secondary market trading was September 15, 2023.    

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

Expense Example

 

Actual

 

          Hypothetical 5% Return

 

          
 

Beginning
Account Value

(09/13/23)

 
 

(a) 

      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

           

Beginning
Account Value
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,003.30          $      0.13               $      1,000.00          $      1,024.70          $      0.51          0.10

 

  (a) 

Commencement of operations.

 
  (b) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 48/365 for actual expenses and 184/365 for hypothetical expenses (to reflect the six month period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

CREDIT QUALITY ALLOCATION

 

 

   
Moody’s Credit Ratings*    

Percent of

Net Assets

 

(a) 

Aaa

    99.8

Short-Term and Other Assets

    0.2  

FIVE LARGEST HOLDINGS

 

 

   
Security    

Percent of

Net Assets

 

(a) 

U.S. Treasury Inflation-Indexed Bonds, 0.38%, 07/15/25

    23.9

U.S. Treasury Inflation-Indexed Bonds, 0.25%, 01/15/25

    22.0  

U.S. Treasury Inflation-Indexed Bonds, 0.13%, 10/15/25

    21.1  

U.S. Treasury Inflation-Indexed Bonds, 0.13%, 04/15/25

    17.4  

U.S. Treasury Inflation-Indexed Bonds, 2.38%, 01/15/25

    15.4  

 

  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

6  

2 0 2 3    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


Fund Summary  as of October 31, 2023    iShares® iBonds® Oct 2026 Term TIPS ETF

 

Investment Objective

The iShares iBonds Oct 2026 Term TIPS ETF (the “Fund”) seeks to track the investment results of an index composed of inflation-protected U.S. Treasury bonds maturing in 2026, as represented by the ICE 2026 Maturity US Inflation-Linked Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

   

    Cumulative Total Returns    

    

Since    

Inception    

Fund NAV

  0.03%

Fund Market

  0.12   

Index

  0.05   

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

The inception date of the Fund was September 13, 2023. The first day of secondary market trading was September 15, 2023.    

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

Expense Example

 

Actual

 

          Hypothetical 5% Return

 

          
 

Beginning
Account Value

(09/13/23)

 
 

(a)  

      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

           

Beginning
Account Value
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,000.30          $      0.13               $      1,000.00          $      1,024.70          $      0.51          0.10

 

  (a) 

Commencement of operations.

 
  (b) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 48/365 for actual expenses and 184/365 for hypothetical expenses (to reflect the six month period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

CREDIT QUALITY ALLOCATION

 

 

   
Moody’s Credit Ratings*    
Percent of
Net Assets
 
(a) 

Aaa

    99.8

Short-Term and Other Assets

    0.2  

FIVE LARGEST HOLDINGS

 

 

   
Security    
Percent of
Net Assets
 
(a) 

U.S. Treasury Inflation-Indexed Bonds, 0.13%, 10/15/26

    25.1

U.S. Treasury Inflation-Indexed Bonds, 0.63%, 01/15/26

    22.9  

U.S. Treasury Inflation-Indexed Bonds, 0.13%, 07/15/26

    22.4  

U.S. Treasury Inflation-Indexed Bonds, 0.13%, 04/15/26

    18.2  

U.S. Treasury Inflation-Indexed Bonds, 2.00%, 01/15/26

    11.2  

 

  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

U N D    U M M A R Y

  7


Fund Summary  as of October 31, 2023    iShares® iBonds® Oct 2027 Term TIPS ETF

 

Investment Objective

The iShares iBonds Oct 2027 Term TIPS ETF (the “Fund”) seeks to track the investment results of an index composed of inflation-protected U.S. Treasury bonds maturing in 2027, as represented by the ICE 2027 Maturity US Inflation-Linked Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

   

    Cumulative Total Returns    

    

Since    

Inception    

Fund NAV

  (0.44)%

Fund Market

  (0.32)   

Index

  (0.42)   

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

The inception date of the Fund was September 13, 2023. The first day of secondary market trading was September 15, 2023.    

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

Expense Example

 

Actual

 

          Hypothetical 5% Return

 

          
 

Beginning
Account Value

(09/13/23)

 
 

(a)  

      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

           

Beginning
Account Value
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      995.60          $      0.13               $      1,000.00          $      1,024.70          $      0.51          0.10

 

  (a) 

Commencement of operations.

 
  (b) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 48/365 for actual expenses and 184/365 for hypothetical expenses (to reflect the six month period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

CREDIT QUALITY ALLOCATION

 

 

   
Moody’s Credit Ratings*    
Percent of
Net Assets
 
(a) 

Aaa

    99.6

Short-Term and Other Assets

    0.4  

FIVE LARGEST HOLDINGS

 

 

   
Security    
Percent of
Net Assets
 
(a) 

U.S. Treasury Inflation-Indexed Bonds, 1.63%, 10/15/27

    25.1

U.S. Treasury Inflation-Indexed Bonds, 0.13%, 04/15/27

    23.7  

U.S. Treasury Inflation-Indexed Bonds, 0.38%, 07/15/27

    21.3  

U.S. Treasury Inflation-Indexed Bonds, 0.38%, 01/15/27

    19.3  

U.S. Treasury Inflation-Indexed Bonds, 2.38%, 01/15/27

    10.2  

 

  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

8  

2 0 2 3    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


Fund Summary  as of October 31, 2023    iShares® iBonds® Oct 2028 Term TIPS ETF

 

Investment Objective

The iShares iBonds Oct 2028 Term TIPS ETF (the “Fund”) seeks to track the investment results of an index composed of inflation-protected U.S. Treasury bonds maturing in 2028, as represented by the ICE 2028 Maturity US Inflation-Linked Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

   

    Cumulative Total Returns    

    

Since    

Inception    

Fund NAV

  (0.91)%

Fund Market

  (0.84)   

Index

  (0.89)   

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

The inception date of the Fund was September 13, 2023. The first day of secondary market trading was September 15, 2023.    

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

Expense Example    

 

Actual

 

          Hypothetical 5% Return

 

          
 

Beginning
Account Value

(09/13/23)

 
 

(a)  

      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

           

Beginning
Account Value
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      990.90          $      0.13               $      1,000.00          $      1,024.70          $      0.51          0.10

 

  (a) 

Commencement of operations.

 
  (b) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 48/365 for actual expenses and 184/365 for hypothetical expenses (to reflect the six month period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information    

 

CREDIT QUALITY ALLOCATION

 

 

   
Moody’s Credit Ratings*    
Percent of
Net Assets
 
(a) 

Aaa

    99.6

Short-Term and Other Assets

    0.4  

FIVE LARGEST HOLDINGS

 

 

   
Security    
Percent of
Net Assets
 
(a) 

U.S. Treasury Inflation-Indexed Bonds, 1.25%, 04/15/28

    25.8

U.S. Treasury Inflation-Indexed Bonds, 0.50%, 01/15/28

    22.3  

U.S. Treasury Inflation-Indexed Bonds, 0.75%, 07/15/28

    20.2  

U.S. Treasury Inflation-Indexed Bonds, 3.63%, 04/15/28

    11.1  

U.S. Treasury Inflation-Indexed Bonds, 1.75%, 01/15/28

    11.0  

 

  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

U N D    U M M A R Y

  9


Fund Summary  as of October 31, 2023    iShares® iBonds® Oct 2029 Term TIPS ETF

 

Investment Objective

The iShares iBonds Oct 2029 Term TIPS ETF (the “Fund”) seeks to track the investment results of an index composed of inflation-protected U.S. Treasury bonds maturing in 2029, as represented by the ICE 2029 Maturity US Inflation-Linked Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance    

 

   

    Cumulative Total Returns    

    

Since    

Inception    

Fund NAV

  (1.06)%

Fund Market

  (0.96)   

Index

  (1.05)   

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

The inception date of the Fund was September 19, 2023. The first day of secondary market trading was September 21, 2023.    

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

Expense Example    

 

Actual

 

          Hypothetical 5% Return

 

          
 

Beginning
Account Value

(09/19/23)

 
 

(a)  

      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

           

Beginning
Account Value
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      989.40          $      0.11               $      1,000.00          $      1,024.70          $      0.51          0.10

 

  (a) 

Commencement of operations.

 
  (b) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 42/365 for actual expenses and 184/365 for hypothetical expenses (to reflect the six month period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information    

 

CREDIT QUALITY ALLOCATION

 

 

   
Moody’s Credit Ratings*    
Percent of
Net Assets
 
(a) 

Aaa

    99.5

Short-Term and Other Assets

    0.5  

ALL HOLDINGS

 

 

   
Security    
Percent of
Net Assets
 
(a) 

U.S. Treasury Inflation-Indexed Bonds, 0.25%, 07/15/29

    32.5

U.S. Treasury Inflation-Indexed Bonds, 0.88%, 01/15/29

    28.7  

U.S. Treasury Inflation-Indexed Bonds, 3.88%, 04/15/29

    22.2  

U.S. Treasury Inflation-Indexed Bonds, 2.50%, 01/15/29

    16.1  

 

  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

10  

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Fund Summary  as of October 31, 2023    iShares® iBonds® Oct 2030 Term TIPS ETF

 

Investment Objective

The iShares iBonds Oct 2030 Term TIPS ETF (the “Fund”) seeks to track the investment results of an index composed of inflation-protected U.S. Treasury bonds maturing in 2030, as represented by the ICE 2030 Maturity US Inflation-Linked Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance    

 

   

    Cumulative Total Returns    

    

Since    

Inception    

Fund NAV

  (1.99)%

Fund Market

  (1.88)   

Index

  (1.99)   

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

The inception date of the Fund was September 19, 2023. The first day of secondary market trading was September 21, 2023.    

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

Expense Example    

 

Actual

 

          Hypothetical 5% Return

 

          
 

Beginning
Account Value

(09/19/23)

 
 

(a)  

      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

           

Beginning
Account Value
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      980.10          $      0.11               $      1,000.00          $      1,024.70          $      0.51          0.10

 

  (a) 

Commencement of operations.

 
  (b) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 42/365 for actual expenses and 184/365 for hypothetical expenses (to reflect the six month period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

CREDIT QUALITY ALLOCATION

 

 

   
Moody’s Credit Ratings*    
Percent of
Net Assets
 
(a) 

Aaa

    99.8

Short-Term and Other Assets

    0.2  

ALL HOLDINGS

 

 

   
Security    
Percent of
Net Assets
 
(a) 

U.S. Treasury Inflation-Indexed Bonds, 0.13%, 07/15/30

    52.3

U.S. Treasury Inflation-Indexed Bonds, 0.13%, 01/15/30

    47.5  

 

  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

U N D    U M M A R Y

  11


Fund Summary  as of October 31, 2023    iShares® iBonds® Oct 2031 Term TIPS ETF

 

Investment Objective

The iShares iBonds Oct 2031 Term TIPS ETF (the “Fund”) seeks to track the investment results of an index composed of inflation-protected U.S. Treasury bonds maturing in 2031, as represented by the ICE 2031 Maturity US Inflation-Linked Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance    

 

   

    Cumulative Total Returns    

    

Since    

Inception    

Fund NAV

  (2.54)%

Fund Market

  (2.40)   

Index

  (2.54)   

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

The inception date of the Fund was September 19, 2023. The first day of secondary market trading was September 21, 2023.    

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

Expense Example    

 

Actual

 

          Hypothetical 5% Return

 

          
 

Beginning
Account Value

(09/19/23)

 
 

(a)  

      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

           

Beginning
Account Value
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      974.60          $      0.11               $      1,000.00          $      1,024.70          $      0.51          0.10

 

  (a) 

Commencement of operations.

 
  (b) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 42/365 for actual expenses and 184/365 for hypothetical expenses (to reflect the six month period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

CREDIT QUALITY ALLOCATION

 

 

   
Moody’s Credit Ratings*    
Percent of
Net Assets
 
(a) 

Aaa

    99.8

Short-Term and Other Assets

    0.2  

ALL HOLDINGS

 

 

   
Security    
Percent of
Net Assets
 
(a) 

U.S. Treasury Inflation-Indexed Bonds, 0.13%, 07/15/31

    50.3

U.S. Treasury Inflation-Indexed Bonds, 0.13%, 01/15/31

    49.5  

 

  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

12  

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Fund Summary  as of October 31, 2023    iShares® iBonds® Oct 2032 Term TIPS ETF

 

Investment Objective

The iShares iBonds Oct 2032 Term TIPS ETF (the “Fund”) seeks to track the investment results of an index composed of inflation-protected U.S. Treasury bonds maturing in 2032, as represented by the ICE 2032 Maturity US Inflation-Linked Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance    

 

   

    Cumulative Total Returns    

    

Since    

Inception    

Fund NAV

  (2.92)%

Fund Market

  (2.80)   

Index

  (2.91)   

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

The inception date of the Fund was September 19, 2023. The first day of secondary market trading was September 21, 2023.    

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

Expense Example    

 

Actual

 

          Hypothetical 5% Return

 

          
 

Beginning
Account Value

(09/19/23)

 
 

(a)  

      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

           

Beginning
Account Value
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      970.80          $      0.11               $      1,000.00          $      1,024.70          $      0.51          0.10

 

  (a) 

Commencement of operations.

 
  (b) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 42/365 for actual expenses and 184/365 for hypothetical expenses (to reflect the six month period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

CREDIT QUALITY ALLOCATION

 

 

   
Moody’s Credit Ratings*    
Percent of
Net Assets
 
(a) 

Aaa

    99.7

Short-Term and Other Assets

    0.3  

ALL HOLDINGS

 

 

   
Security    
Percent of
Net Assets
 
(a) 

U.S. Treasury Inflation-Indexed Bonds, 0.63%, 07/15/32

    47.7

U.S. Treasury Inflation-Indexed Bonds, 0.13%, 01/15/32

    44.1  

U.S. Treasury Inflation-Indexed Bonds, 3.38%, 04/15/32

    7.9  

 

  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

U N D    U M M A R Y

  13


Fund Summary  as of October 31, 2023    iShares® iBonds® Oct 2033 Term TIPS ETF

 

Investment Objective

The iShares iBonds Oct 2033 Term TIPS ETF (the “Fund”) seeks to track the investment results of an index composed of inflation-protected U.S. Treasury bonds maturing in 2033, as represented by the ICE 2033 Maturity US Inflation-Linked Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance    

 

   

    Cumulative Total Returns    

    

Since    

Inception    

Fund NAV

  (3.35)%

Fund Market

  (3.24)   

Index

  (3.38)   

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

The inception date of the Fund was September 19, 2023. The first day of secondary market trading was September 21, 2023.    

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

Expense Example    

 

Actual

 

          Hypothetical 5% Return

 

          
 

Beginning
Account Value

(09/19/23)

 
 

(a)  

      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

           

Beginning
Account Value
(05/01/23)
 
 
 
      

Ending
Account Value
(10/31/23)
 
 
 
      

Expenses
Paid During

the Period

 
 

(b) 

      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      966.50          $      0.11               $      1,000.00          $      1,024.70          $      0.51          0.10

 

  (a) 

Commencement of operations.

 
  (b) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 42/365 for actual expenses and 184/365 for hypothetical expenses (to reflect the six month period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

CREDIT QUALITY ALLOCATION

 

 

   
Moody’s Credit Ratings*    
Percent of
Net Assets
 
(a) 

Aaa

    99.5

Short-Term and Other Assets

    0.5  

ALL HOLDINGS

 

 

   
Security    
Percent of
Net Assets
 
(a) 

U.S. Treasury Inflation-Indexed Bonds, 1.13%, 01/15/33

    60.0

U.S. Treasury Inflation-Indexed Bonds, 1.38%, 07/15/33

    39.5  

 

  *

Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (a) 

Excludes money market funds.

 

 

 

 

14  

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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  /  D I S C L O S U R E    O F    X P E  N S E S

  15


Schedule of Investments  

October 31, 2023

  

iShares® iBonds® Oct 2024 Term TIPS ETF

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

 

 

U.S. Government Obligations

 

U.S. Government Obligations — 99.8%  

U.S. Treasury Inflation-Indexed Bonds

   

0.13%, 07/15/24

  $ 1,063     $ 1,038,133  

0.13%, 10/15/24

    948       919,429  

0.50%, 04/15/24

    657       646,199  

0.63%, 01/15/24

      1,172       1,161,721  
   

 

 

 
        3,765,482  

Total Investments — 99.8%
(Cost: $3,774,083)

 

    3,765,482  

Other Assets Less Liabilities — 0.2%

 

    8,817  
   

 

 

 

Net Assets — 100.0%

 

  $ 3,774,299  
   

 

 

 

    

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

U.S. Government Obligations

   $             —        $ 3,765,482        $             —        $ 3,765,482  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

16  

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Schedule of Investments  

October 31, 2023

  

iShares® iBonds® Oct 2025 Term TIPS ETF

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

 

 

U.S. Government Obligations

 

U.S. Government Obligations — 99.8%  

U.S. Treasury Inflation-Indexed Bonds

   

0.13%, 04/15/25

  $ 915     $ 873,715  

0.13%, 10/15/25

    1,114       1,057,381  

0.25%, 01/15/25

    1,146       1,103,083  

0.38%, 07/15/25

      1,253       1,200,385  

2.38%, 01/15/25

    780       769,885  
   

 

 

 
        5,004,449  

Total Investments — 99.8%
(Cost: $5,020,538)

 

    5,004,449  

Other Assets Less Liabilities — 0.2%

 

    11,945  
   

 

 

 

Net Assets — 100.0%

 

  $ 5,016,394  
   

 

 

 

    

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

U.S. Government Obligations

   $             —        $ 5,004,449        $             —        $ 5,004,449  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

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

  17


Schedule of Investments  

October 31, 2023

  

iShares® iBonds® Oct 2026 Term TIPS ETF

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

 

 

U.S. Government Obligations

 

U.S. Government Obligations — 99.8%  

U.S. Treasury Inflation-Indexed Bonds

   

0.13%, 04/15/26

  $ 732     $ 684,378  

0.13%, 07/15/26

    897       838,907  

0.13%, 10/15/26

      1,015       943,186  

0.63%, 01/15/26

    901       857,205  

2.00%, 01/15/26

    428       419,668  
   

 

 

 
        3,743,344  

Total Investments — 99.8%
(Cost: $3,765,907)

 

    3,743,344  

Other Assets Less Liabilities — 0.2%

 

    7,792  
   

 

 

 

Net Assets — 100.0%

 

  $ 3,751,136  
   

 

 

 

    

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

U.S. Government Obligations

   $             —        $ 3,743,344        $             —        $ 3,743,344  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

18  

2 0 2 3    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


Schedule of Investments  

October 31, 2023

  

iShares® iBonds® Oct 2027 Term TIPS ETF

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

 

 

U.S. Government Obligations

 

U.S. Government Obligations — 99.6%  

U.S. Treasury Inflation-Indexed Bonds

   

0.13%, 04/15/27

  $ 1,286     $ 1,178,266  

0.38%, 01/15/27

    1,037       963,534  

0.38%, 07/15/27

      1,145       1,058,441  

1.63%, 10/15/27

    1,291       1,248,017  

2.38%, 01/15/27

    513       507,432  
   

 

 

 
      4,955,690  
   

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $4,989,979)

 

    4,955,690  
   

 

 

 
    Shares        

 

 
Short-Term Securities  
Money Market Funds — 0.2%  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.33%(a)(b)

    10,000       10,000  
   

 

 

 

Total Short-Term Securities — 0.2%
(Cost: $10,000)

 

    10,000  
   

 

 

 

Total Investments — 99.8%
(Cost: $4,999,979)

 

    4,965,690  

Other Assets Less Liabilities — 0.2%

 

    12,151  
   

 

 

 

Net Assets — 100.0%

 

  $   4,977,841  
   

 

 

 

 

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

 

 

 
Affiliated Issuer    Value at  
09/13/23(a)
     Purchases
at Cost
     Proceeds
from Sale
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/23
     Shares
Held at
10/31/23
     Income      Capital
Gain
Distributions
from
Underlying
Funds
 

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares

   $      $ 10,000 (b)     $      $      $      $ 10,000        10,000      $ 9      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Commencement of operations.

  (b) 

Represents net amount purchased (sold).

 

 

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

  19


Schedule of Investments  (continued)

October 31, 2023

  

iShares® iBonds® Oct 2027 Term TIPS ETF

 

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

U.S. Government Obligations

   $        $ 4,955,690        $        $ 4,955,690  

Short-Term Securities

                 

Money Market Funds

     10,000                            10,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $     10,000        $ 4,955,690        $         —        $ 4,965,690  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

20  

2 0 2 3    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


Schedule of Investments  

October 31, 2023

  

iShares® iBonds® Oct 2028 Term TIPS ETF

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
     Value  

 

 

U.S. Government Obligations

 

U.S. Government Obligations — 99.6%  

U.S. Treasury Inflation-Indexed Bonds

    

0.50%, 01/15/28

  $ 902      $ 828,023  

0.75%, 07/15/28

    811        749,641  

1.25%, 04/15/28

    1,015        959,785  

1.75%, 01/15/28

    423        409,184  

2.38%, 10/15/28

    341        339,712  

3.63%, 04/15/28

    397        413,782  
    

 

 

 
       3,700,127  
    

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $3,738,329)

 

     3,700,127  
    

 

 

 
    Shares         

 

 
Short-Term Securities  
Money Market Funds — 0.2%  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.33%(a)(b)

    10,000        10,000  
    

 

 

 

Total Short-Term Securities — 0.2%
(Cost: $10,000)

 

     10,000  
    

 

 

 

Total Investments — 99.8%
(Cost: $3,748,329)

 

     3,710,127  

Other Assets Less Liabilities — 0.2%

 

     5,576  
    

 

 

 

Net Assets — 100.0%

 

   $   3,715,703  
    

 

 

 

 

 

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

 

 

 
Affiliated Issuer    Value at  
09/13/23(a)
  

Purchases

at Cost

     Proceeds
from Sale
    

Net Realized

Gain (Loss)

     Change in
Unrealized
Appreciation
(Depreciation)
    

Value at

10/31/23

     Shares
Held at
10/31/23
     Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares

   $            —      $10,000 (b)     $             —      $             —      $             —      $ 10,000        10,000      $     23      $             —  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Commencement of operations.

  (b) 

Represents net amount purchased (sold).

 

 

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

  21


Schedule of Investments  (continued)

October 31, 2023

  

iShares® iBonds® Oct 2028 Term TIPS ETF

 

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

U.S. Government Obligations

   $        $ 3,700,127        $        $ 3,700,127  

Short-Term Securities

                 

Money Market Funds

     10,000                            10,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $     10,000        $ 3,700,127        $             —        $ 3,710,127  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

22  

2 0 2 3    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


Schedule of Investments  

October 31, 2023

  

iShares® iBonds® Oct 2029 Term TIPS ETF

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

 

 

U.S. Government Obligations

 

U.S. Government Obligations — 99.5%  

U.S. Treasury Inflation-Indexed Bonds

    

0.25%, 07/15/29

  $   1,365      $ 1,208,239  

0.88%, 01/15/29

    1,156        1,063,857  

2.50%, 01/15/29

    599        597,877  

3.88%, 04/15/29

    771        822,469  
    

 

 

 
       3,692,442  
    

 

 

 

Total Long-Term Investments — 99.5%
(Cost: $3,736,828)

 

     3,692,442  
    

 

 

 
    Shares         

 

 
Short-Term Securities  
Money Market Funds — 0.6%  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.33%(a)(b)

    20,000        20,000  
    

 

 

 

Total Short-Term Securities — 0.6%
(Cost: $20,000)

 

     20,000  
    

 

 

 

Total Investments — 100.1%
(Cost: $3,756,828)

 

     3,712,442  

Liabilities in Excess of Other Assets — (0.1)%

 

     (2,211
    

 

 

 

Net Assets — 100.0%

 

   $   3,710,231  
    

 

 

 

 

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

 

 

 
Affiliated Issuer     

Value at

09/19/23

 

(a) 

    

Purchases

at Cost

 

 

    
Proceeds
from Sale
 
 
    

Net Realized

Gain (Loss)

 

 

    


Change in
Unrealized
Appreciation
(Depreciation)
 
 
 
 
    

Value at

10/31/23

 

 

    

Shares
Held at
10/31/23
 
 
 
     Income       





Capital

Gain
Distributions
from
Underlying
Funds

 


 
 
 
 

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares

   $        $20,000 (b)     $      $      $                 —      $ 20,000        20,000      $ 227      $                 —  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Commencement of operations.

  (b) 

Represents net amount purchased (sold).

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

U.S. Government Obligations

   $        $ 3,692,442        $        $ 3,692,442  

Short-Term Securities

                 

Money Market Funds

     20,000                            20,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $   20,000        $ 3,692,442        $             —        $ 3,712,442  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

 

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

  23


Schedule of Investments  (continued)

October 31, 2023

  

iShares® iBonds® Oct 2029 Term TIPS ETF

      

 

Fair Value Hierarchy as of Period End (continued)

See notes to financial statements.

 

 

24  

2 0 2 3    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


Schedule of Investments  

October 31, 2023

  

iShares® iBonds® Oct 2030 Term TIPS ETF

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

 

 

U.S. Government Obligations

 

U.S. Government Obligations — 99.8%  

U.S. Treasury Inflation-Indexed Bonds

    

0.13%, 01/15/30

  $   1,349      $ 1,163,999  

0.13%, 07/15/30

    1,494        1,280,055  
    

 

 

 
         2,444,054  

Total Investments — 99.8%
(Cost: $2,514,503)

 

     2,444,054  

Other Assets Less Liabilities — 0.2%

 

     6,105  
    

 

 

 

Net Assets — 100.0%

 

   $ 2,450,159  
    

 

 

 

    

Affiliates

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

 

 

 
Affiliated Issuer     
Value at
09/19/23
 
(a) 
    
Purchases
at Cost
 
 
    
Proceeds
from Sale
 
 
    

Net Realized

Gain (Loss)

 

 

    


Change in
Unrealized
Appreciation
(Depreciation)
 
 
 
 
    
Value at
10/31/23
 
 
    


Shares

Held at
10/31/23

 


 

     Income       





Capital

Gain
Distributions
from
Underlying
Funds

 


 
 
 
 

 

 

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

   $      $ 0 (c)     $      $                 —      $      $             $ 184      $                 —  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Commencement of operations.

  (b) 

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

  (c) 

Represents net amount purchased (sold).

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

U.S. Government Obligations

   $             —        $ 2,444,054        $             —        $ 2,444,054  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.    

 

 

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

  25


Schedule of Investments  

October 31, 2023

  

iShares® iBonds® Oct 2031 Term TIPS ETF

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

 

 

U.S. Government Obligations

 

U.S. Government Obligations — 99.8%  

U.S. Treasury Inflation-Indexed Bonds

   

0.13%, 01/15/31

  $   1,431     $   1,206,981  

0.13%, 07/15/31

    1,463       1,224,293  
   

 

 

 
      2,431,274  

Total Investments — 99.8%
(Cost: $2,515,765)

 

    2,431,274  

Other Assets Less Liabilities — 0.2%

 

    5,174  
   

 

 

 

Net Assets — 100.0%

 

  $ 2,436,448  
   

 

 

 

    

Affiliates

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

 

 

 
Affiliated Issuer     

Value at

09/19/23

 

(a) 

    
Purchases
at Cost
 
 
    
Proceeds
from Sale
 
 
    
Net Realized
Gain (Loss)
 
 
    


Change in
Unrealized
Appreciation
(Depreciation)
 
 
 
 
    
Value at
10/31/23
 
 
    

Shares
Held at
10/31/23
 
 
 
     Income       





Capital

Gain
Distributions
from
Underlying
Funds

 


 
 
 
 

 

 

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

   $        $0 (c)     $      $      $                 —      $         —             $ 184      $                 —  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Commencement of operations.

  (b) 

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

  (c) 

Represents net amount purchased (sold).

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

U.S. Government Obligations

   $         —        $ 2,431,274        $         —        $ 2,431,274  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.    

 

 

26  

2 0 2 3    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


Schedule of Investments  

October 31, 2023

  

iShares® iBonds® Oct 2032 Term TIPS ETF

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

 

 

U.S. Government Obligations

 

U.S. Government Obligations — 99.7%  

U.S. Treasury Inflation-Indexed Bonds

    

0.13%, 01/15/32

  $   1,950      $   1,606,983  

0.63%, 07/15/32

    2,028        1,735,976  

3.38%, 04/15/32

    270        286,364  
    

 

 

 
       3,629,323  

Total Investments — 99.7%
(Cost: $3,742,490)

 

     3,629,323  

Other Assets Less Liabilities — 0.3%

 

     11,180  
    

 

 

 

Net Assets — 100.0%

 

   $ 3,640,503  
    

 

 

 

    

Affiliates

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

 

 

 
Affiliated Issuer     

Value at

09/19/23

 

(a) 

    
Purchases
at Cost
 
 
    
Proceeds
from Sale
 
 
    
Net Realized
Gain (Loss)
 
 
    


Change in
Unrealized
Appreciation
(Depreciation)
 
 
 
 
    
Value at
10/31/23
 
 
    

Shares
Held at
10/31/23
 
 
 
     Income       





Capital

Gain
Distributions
from
Underlying
Funds

 


 
 
 
 

 

 

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

   $      $ 0 (c)     $      $      $                 —      $             $     184      $                 —  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Commencement of operations.

  (b) 

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

  (c) 

Represents net amount purchased (sold).

Fair Value Hierarchy as of Period End

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

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

 

 

     Level 1        Level 2        Level 3        Total

 

Assets

                 

Investments

                 

Long-Term Investments

                 

U.S. Government Obligations

   $             —        $ 3,629,323        $             —        $3,629,323
  

 

 

      

 

 

      

 

 

      

 

See notes to financial statements.    

 

 

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

  27


Schedule of Investments  

October 31, 2023

  

iShares® iBonds® Oct 2033 Term TIPS ETF

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

 

 

U.S. Government Obligations

 

U.S. Government Obligations — 99.5%  

U.S. Treasury Inflation-Indexed Bonds

    

1.13%, 01/15/33

  $   2,454      $   2,173,802  

1.38%, 07/15/33

    1,584        1,433,214  
    

 

 

 
       3,607,016  

Total Investments — 99.5%
(Cost: $3,707,599)

 

     3,607,016  

Other Assets Less Liabilities — 0.5%

 

     17,318  
    

 

 

 

Net Assets — 100.0%

 

   $ 3,624,334  
    

 

 

 

    

Affiliates

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

 

 

 
Affiliated Issuer     

Value at

09/19/23

 

(a) 

    
Purchases
at Cost
 
 
    
Proceeds
from Sale
 
 
    
Net Realized
Gain (Loss)
 
 
    


Change in
Unrealized
Appreciation
(Depreciation)
 
 
 
 
    
Value at
10/31/23
 
 
    

Shares
Held at
10/31/23
 
 
 
     Income       





Capital

Gain
Distributions
from
Underlying
Funds

 


 
 
 
 

 

 

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

   $      $ 0 (c)     $      $      $                 —      $         —             $ 184      $                 —  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Commencement of operations.

  (b) 

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

  (c) 

Represents net amount purchased (sold).

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

U.S. Government Obligations

   $         —        $ 3,607,016        $         —        $ 3,607,016  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.    

 

 

28  

2 0 2 3    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


 

Statements of Assets and Liabilities  

October 31, 2023

 

   

iShares

iBonds Oct

2024 Term

TIPS ETF

    

iShares

iBonds Oct

2025 Term

TIPS ETF

    

iShares

iBonds Oct

2026 Term

TIPS ETF

    

iShares

iBonds Oct

2027 Term

TIPS ETF

 

 

 

ASSETS

          

Investments, at value — unaffiliated(a)

  $ 3,765,482      $ 5,004,449      $ 3,743,344      $ 4,955,690  

Investments, at value — affiliated(b)

                         10,000  

Cash

    5,581        4,077        3,067        2,538  

Receivables:

          

Dividends — affiliated

                         9  

Interest — unaffiliated

    3,515        8,159        5,002        9,897  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

    3,774,578        5,016,685        3,751,413        4,978,134  
 

 

 

    

 

 

    

 

 

    

 

 

 

LIABILITIES

          

Payables:

          

Investment advisory fees

    279        291        277        293  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

    279        291        277        293  
 

 

 

    

 

 

    

 

 

    

 

 

 

Commitments and contingent liabilities

          

NET ASSETS

  $ 3,774,299      $ 5,016,394      $ 3,751,136      $ 4,977,841  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS CONSIST OF

          

Paid-in capital

  $ 3,753,140      $ 5,003,502      $ 3,747,031      $ 4,984,866  

Accumulated earnings (loss)

    21,159        12,892        4,105        (7,025
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS

  $ 3,774,299      $ 5,016,394      $ 3,751,136      $ 4,977,841  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSET VALUE

          

Shares outstanding

    150,000        200,000        150,000        200,000  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value

  $ 25.16      $ 25.08      $ 25.01      $ 24.89  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares authorized

    Unlimited        Unlimited        Unlimited        Unlimited  
 

 

 

    

 

 

    

 

 

    

 

 

 

Par value

    None        None        None        None  
 

 

 

    

 

 

    

 

 

    

 

 

 

(a) Investments, at cost — unaffiliated

  $ 3,774,083      $ 5,020,538      $ 3,765,907      $ 4,989,979  

(b) Investments, at cost — affiliated

  $      $      $      $ 10,000  

See notes to financial statements.

 

 

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

  29


 

Statements of Assets and Liabilities  (continued)

October 31, 2023

 

   

iShares

iBonds Oct

2028 Term

TIPS ETF

   

iShares

iBonds Oct

2029 Term

TIPS ETF

   

iShares

iBonds Oct

2030 Term

TIPS ETF

   

iShares

iBonds Oct

2031 Term

TIPS ETF

 

 

 

ASSETS

       

Investments, at value — unaffiliated(a)

  $ 3,700,127     $ 3,692,442     $ 2,444,054     $ 2,431,274  

Investments, at value — affiliated(b)

    10,000       20,000              

Cash

    2,609       5,347       5,261       4,310  

Receivables:

       

Investments sold

    330,351                    

Capital shares sold

    6,037                    

Dividends — affiliated

    23       42              

Interest — unaffiliated

    6,965       9,827       1,052       1,071  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

    4,056,112       3,727,658       2,450,367       2,436,655  
 

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES

       

Payables:

       

Investments purchased

    340,199       17,177              

Investment advisory fees

    210       250       208       207  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    340,409       17,427       208       207  
 

 

 

   

 

 

   

 

 

   

 

 

 

Commitments and contingent liabilities

       

NET ASSETS

  $ 3,715,703     $ 3,710,231     $ 2,450,159     $ 2,436,448  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS CONSIST OF

       

Paid-in capital

  $ 3,739,814     $ 3,732,944     $ 2,501,215     $ 2,501,352  

Accumulated loss

    (24,111     (22,713     (51,056     (64,904
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS

  $ 3,715,703     $ 3,710,231     $ 2,450,159     $ 2,436,448  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSET VALUE

       

Shares outstanding

    150,000       150,000       100,000       100,000  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value

  $ 24.77     $ 24.73     $ 24.50     $ 24.36  
 

 

 

   

 

 

   

 

 

   

 

 

 

Shares authorized

    Unlimited       Unlimited       Unlimited       Unlimited  
 

 

 

   

 

 

   

 

 

   

 

 

 

Par value

    None       None       None       None  
 

 

 

   

 

 

   

 

 

   

 

 

 

(a) Investments, at cost — unaffiliated

  $ 3,738,329     $ 3,736,828     $ 2,514,503     $ 2,515,765  

(b) Investments, at cost — affiliated

  $ 10,000     $ 20,000     $     $  

See notes to financial statements.

 

 

30  

2 0 2 3    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


 

Statements of Assets and Liabilities  (continued)

October 31, 2023

 

   

iShares

iBonds Oct

2032 Term

TIPS ETF

   

iShares

iBonds Oct

2033 Term

TIPS ETF

 

 

 

ASSETS

   

Investments, at value — unaffiliated(a)

  $ 3,629,323     $ 3,607,016  

Cash

    9,606       2,921  

Receivables:

   

Interest — unaffiliated

    6,417       14,630  
 

 

 

   

 

 

 

Total assets

    3,645,346       3,624,567  
 

 

 

   

 

 

 

LIABILITIES

   

Payables:

   

Investments purchased

    4,533        

Investment advisory fees

    310       233  
 

 

 

   

 

 

 

Total liabilities

    4,843       233  
 

 

 

   

 

 

 

Commitments and contingent liabilities

   

NET ASSETS

  $ 3,640,503     $ 3,624,334  
 

 

 

   

 

 

 

NET ASSETS CONSIST OF

   

Paid-in capital

  $ 3,725,636     $ 3,710,777  

Accumulated loss

    (85,133     (86,443
 

 

 

   

 

 

 

NET ASSETS

  $ 3,640,503     $ 3,624,334  
 

 

 

   

 

 

 

NET ASSETVALUE

   

Shares outstanding

    150,000       150,000  
 

 

 

   

 

 

 

Net asset value

  $ 24.27     $ 24.16  
 

 

 

   

 

 

 

Shares authorized

    Unlimited       Unlimited  
 

 

 

   

 

 

 

Par value

    None       None  
 

 

 

   

 

 

 

(a) Investments, at cost — unaffiliated

  $ 3,742,490     $ 3,707,599  

See notes to financial statements.

 

 

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

  31


 

Statements of Operations  

Year Ended October 31, 2023    

 

   

iShares

iBonds

Oct 2024

Term

TIPS

ETF

 

 

 

 

 

(a)  

   

iShares

iBonds

Oct 2025

Term

TIPS

ETF

 

 

 

 

 

(a)  

   

iShares

iBonds

Oct 2026

Term

TIPS

ETF

 

 

 

 

 

(a)  

   

iShares

iBonds

Oct 2027

Term

TIPS

ETF

 

 

 

 

 

(a)  

 

 

INVESTMENT INCOME

       

Dividends — affiliated

  $     $     $     $ 9  

Interest — unaffiliated

    30,155       29,390       27,061       27,664  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    30,155       29,390       27,061       27,673  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory

    395       408       393       409  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    395       408       393       409  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    29,760       28,982       26,668       27,264  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

          (1            
 

 

 

   

 

 

   

 

 

   

 

 

 
          (1            
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — unaffiliated

    (8,601     (16,089     (22,563     (34,289
 

 

 

   

 

 

   

 

 

   

 

 

 
    (8,601     (16,089     (22,563     (34,289
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized loss

    (8,601     (16,090     (22,563     (34,289
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

  $ 21,159     $ 12,892     $ 4,105     $ (7,025
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

For the period from September 13, 2023 (commencement of operations) to October 31, 2023.

See notes to financial statements.    

 

 

32  

2 0 2 3    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


 

Statements of Operations  (continued)

Year Ended October 31, 2023

 

   

iShares

iBonds

Oct 2028

Term

TIPS

ETF

 

 

 

 

 

(a)  

   

iShares

iBonds

Oct 2029

Term

TIPS

ETF

 

 

 

 

 

(b)  

   

iShares

iBonds

Oct 2030

Term

TIPS

ETF

 

 

 

 

 

(b)  

   

iShares

iBonds

Oct 2031

Term

TIPS

ETF

 

 

 

 

 

(b)  

 

 

INVESTMENT INCOME

       

Dividends — affiliated

  $ 23     $ 227     $ 184     $ 184  

Interest — unaffiliated

    20,424       21,768       19,489       19,682  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    20,447       21,995       19,673       19,866  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory

    326       326       283       282  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    326       326       283       282  

Less:

       

Investment advisory fees waived

          (4     (3     (3
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

    326       322       280       279  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    20,121       21,673       19,393       19,587  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

    (6,030                  
 

 

 

   

 

 

   

 

 

   

 

 

 
    (6,030                  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — unaffiliated

    (38,202     (44,386     (70,449     (84,491
 

 

 

   

 

 

   

 

 

   

 

 

 
    (38,202     (44,386     (70,449     (84,491
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized loss

    (44,232     (44,386     (70,449     (84,491
 

 

 

   

 

 

   

 

 

   

 

 

 

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ (24,111)     $ (22,713)     $ (51,056)     $ (64,904)  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

For the period from September 13, 2023 (commencement of operations) to October 31, 2023.

(b) 

For the period from September 19, 2023 (commencement of operations) to October 31, 2023.

See notes to financial statements.

 

 

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

  33


 

Statements of Operations  (continued)

Year Ended October 31, 2023    

 

   

iShares

iBonds Oct

2032 Term

TIPS ETF

 

 

 

(a) 

   

iShares

iBonds Oct

2033 Term

TIPS ETF

 

 

 

(a) 

 

 

INVESTMENT INCOME

   

Dividends — affiliated

  $ 184     $ 184  

Interest — unaffiliated

    28,238       21,030  
 

 

 

   

 

 

 

Total investment income

    28,422       21,214  
 

 

 

   

 

 

 

EXPENSES

   

Investment advisory

    391       307  
 

 

 

   

 

 

 

Total expenses

    391       307  

Less:

   

Investment advisory fees waived

    (3     (3
 

 

 

   

 

 

 

Total expenses after fees waived

    388       304  
 

 

 

   

 

 

 

Net investment income

    28,034       20,910  
 

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

   

Net realized gain (loss) from:

   

Investments — unaffiliated

          (6,770
 

 

 

   

 

 

 
          (6,770
 

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

   

Investments — unaffiliated

    (113,167     (100,583
 

 

 

   

 

 

 
    (113,167     (100,583
 

 

 

   

 

 

 

Net realized and unrealized loss

    (113,167     (107,353
 

 

 

   

 

 

 

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ (85,133)     $ (86,443)  
 

 

 

   

 

 

 

 

(a) 

For the period from September 19, 2023 (commencement of operations) to October 31, 2023.

See notes to financial statements.    

 

 

34  

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Statements of Changes in Net Assets    

 

    iShares
iBonds Oct
2024 Term
TIPS ETF
    iShares
iBonds Oct
2025 Term
TIPS ETF
 
   

Period From

09/13/23

to 10/31/23

 

(a) 

 

   

Period From

09/13/23

to 10/31/23

 

(a) 

 

 

 

INCREASE (DECREASE) IN NET ASSETS

   

OPERATIONS

   

Net investment income

  $ 29,760     $ 28,982  

Net realized loss

          (1