LOGO

  AUGUST 31, 2023

 

 

 

  

  

2023 Annual Report

 

 

iShares Trust

· iShares MSCI Brazil Small-Cap ETF | EWZS | NASDAQ

· iShares MSCI China ETF | MCHI | NASDAQ

· iShares MSCI China Small-Cap ETF | ECNS | NYSE Arca

· iShares MSCI Indonesia ETF | EIDO | NYSE Arca

· iShares MSCI Peru and Global Exposure ETF | EPU | NYSE Arca

· iShares MSCI Philippines ETF | EPHE | NYSE Arca

· iShares MSCI Poland ETF | EPOL | NYSE Arca

· iShares MSCI Qatar ETF | QAT | NASDAQ

· iShares MSCI Saudi Arabia ETF | KSA | NYSE Arca

· iShares MSCI UAE ETF | UAE | NASDAQ


The Markets in Review

Dear Shareholder,

Despite an uncertain economic landscape during the 12-month reporting period ended August 31, 2023, the resilience of the U.S. economy in the face of ever tighter financial conditions provided an encouraging backdrop for investors. While inflation was near multi-decade highs at the beginning of the period, it declined precipitously as commodity prices dropped. Labor shortages also moderated, although wages continued to grow and unemployment rates reached the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy.

Equity returns were solid, as the durability of consumer sentiment eased investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. Most major classes of equities rose, as large-capitalization U.S. stocks and developed market equities advanced strongly. However, small-capitalization U.S. stocks and emerging market equities posted more modest 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 also faced inflationary headwinds, 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”), acknowledging that inflation has been more persistent than expected, raised interest rates seven times during the 12-month period. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at its June 2023 meeting, the first time it paused its tightening in the current cycle, before again raising rates in July 2023.

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 two 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. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.

While we favor an overweight position to 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 emerging market stocks in the near term as growth trends for emerging markets appear brighter. 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, 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 August 31, 2023
     
     6-Month   12-Month
   

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

  14.50%   15.94%
   

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

  0.99   4.65
   

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

  4.75   17.92
   

Emerging market equities
(MSCI Emerging Markets Index)

  3.62   1.25
   

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

  2.47   4.25
   

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

  0.11   (4.71)
   

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

  0.95   (1.19)
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

  1.04   1.70
   

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

  4.55   7.19
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

2  

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


Table of Contents

 

      Page  

The Markets in Review

     2  

Annual Report:

  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     25  

Disclosure of Expenses

     25  

Schedules of Investments

     26  

Financial Statements

  

Statements of Assets and Liabilities

     66  

Statements of Operations

     69  

Statements of Changes in Net Assets

     72  

Financial Highlights

     77  

Notes to Financial Statements

     87  

Report of Independent Registered Public Accounting Firm

     98  

Important Tax Information

     99  

Board Review and Approval of Investment Advisory Contract

     100  

Supplemental Information

     111  

Trustee and Officer Information

     113  

General Information

     116  

Glossary of Terms Used in this Report

     117  

 

 

 


Market Overview

 

iShares Trust

Global Market Overview

Global equity markets advanced during the 12 months ended August 31, 2023 (“reporting period”), supported by continued economic growth and moderating inflation. The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 13.95% in U.S. dollar terms for the reporting period. Despite concerns about the impact of higher interest rates and rising prices, the global economy continued to grow, albeit at a slower pace than during the initial post-coronavirus pandemic recovery. Inflation began to subside in most regions of the world, and lower energy prices reduced pressure on consumers, leading consumer and business sentiment to improve. While the Russian invasion of Ukraine continued to disrupt trade in Europe and elsewhere, market adaptation lessened the economic impact of the ongoing war. The prices of several key commodities, including oil, natural gas, and wheat, either stabilized or declined during the reporting period, easing pressure on the world’s economies.

The U.S. Federal Reserve (“Fed”) tightened monetary policy rapidly, raising short-term interest rates seven times over the course of the reporting period. The pace of tightening decelerated as the Fed twice lowered the increment of increase before pausing entirely in June 2023, the first time it declined to take action since the tightening cycle began. However, the Fed then raised interest rates again at its July 2023 meeting and stated that it would continue to monitor economic data. The Fed also continued to decrease the size of its balance sheet by reducing the store of U.S. Treasuries it had accumulated to stabilize markets in the early phases of the pandemic.

Despite the tightening financial conditions, the U.S. economy demonstrated continued strength, and U.S. equities advanced. The economy returned to growth in the third quarter of 2022 and showed robust, if slightly slower, growth thereafter. Consumers powered the economy, increasing their spending in both nominal and inflation-adjusted terms. A strong labor market bolstered spending, as unemployment remained low, and the number of employed persons reached an all-time high. Tightness in the labor market drove higher wages, although wage growth slowed as the reporting period continued.

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

Stocks in the Asia-Pacific region gained, albeit at a slower pace than other regions of the world. Japan returned to growth in the fourth quarter of 2022 and first half of 2023, as strong business investment and exports helped boost the economy and support Japanese equities. However, Chinese stocks were negatively impacted by slowing economic growth. While investors were initially optimistic following China’s lifting of several pandemic-related lockdowns in December 2022, subsequent performance disappointed, and tensions with the U.S. increased. Emerging market stocks advanced modestly, as the resilient global economic environment reassured investors. The declining value of the U.S. dollar relative to many other currencies and the slowing pace of the Fed’s interest rate increases also supported emerging market stocks.

 

 

4  

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


Fund Summary as of August 31, 2023      iShares® MSCI Brazil Small-Cap ETF

 

Investment Objective

The iShares MSCI Brazil Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization Brazilian equities, as represented by the MSCI Brazil Small Cap 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

    5.95     6.35     (0.40 )%         5.95     36.06     (3.94 )% 

Fund Market

    7.31       6.21       (0.27        7.31       35.16       (2.67

Index

    6.30       7.11       0.19            6.30       41.01       1.91  

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

(03/01/23)

 

 

 

      

Ending

Account Value

(08/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

          

Beginning

Account Value

(03/01/23)

      

Ending

Account Value

(08/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $   1,000.00          $   1,222.10          $    3.30              $   1,000.00        $   1,022.20          $     3.01          0.59

 

  (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.

 

 

 

F U N D  S U M M A R Y

    5  


Fund Summary as of August 31, 2023(continued)    iShares® MSCI Brazil Small-Cap ETF

 

Portfolio Management Commentary

Small-capitalization Brazilian stocks advanced during the reporting period. After contracting in the fourth quarter of 2022, Brazil’s economy grew faster than anticipated in the first quarter of 2023, driven by a surge in agricultural output. The Brazilian real strengthened notably against the U.S. dollar, and low unemployment combined with an easing in the inflation rate paved the way for Brazil’s central bank to lower interest rates for the first time in three years.

The industrials sector contributed the most to the Index’s performance, led by the capital goods industry. Higher-than-expected totals for deliveries and new orders of airplanes supported aerospace and defense companies. Robust revenues in executive and commercial aviation also benefited the industry. In addition, indications of easing in supply-chain issues led manufacturers of airplanes to issue more optimistic forward guidance. Also within the capital goods industry, machinery companies contributed, as strong sales of buses, trailer trucks, and auto parts drove higher revenues for construction machinery and heavy transportation equipment companies.

The real estate sector also contributed to the Index’s performance, as companies involved in building and managing shopping malls drove gains in the real estate management and development industry. Following years of coronavirus pandemic-related lockdowns that kept consumers at home or buying online, Brazilian shoppers began returning to brick-and-mortar stores, boosting profits for mall operators.

On the downside, the information technology sector detracted from the Index’s return. Margins for companies in the IT services industry that process credit card payments came under pressure due to increased competition and lower cost efficiency. An analyst downgrade reflecting concerns over a slowdown in the volume of payments processed further weighed on the industry.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector  

Percent of  

Total Investments(a)

 

 

 

Industrials

    22.0%  

Consumer Discretionary

    20.8    

Consumer Staples

    11.7    

Utilities

    10.2    

Materials

    9.6    

Real Estate

    8.5    

Health Care

    5.6    

Financials

    5.1    

Energy

    4.8    

Information Technology

    1.7    

 

 
TEN LARGEST HOLDINGS  

 

 
Security  

Percent of  

Total Investments(a)

 

 

 

Embraer SA

    4.9%  

Aliansce Sonae Shopping Centers SA

    3.5    

Metalurgica Gerdau SA (Preferred)

    2.8    

3R Petroleum Oleo E Gas SA

    2.8    

BRF SA

    2.7    

Multiplan Empreendimentos Imobiliarios SA

    2.5    

Transmissora Alianca de Energia Eletrica SA

    2.4    

Cyrela Brazil Realty SA Empreendimentos e Participacoes

    2.2    

GPS Participacoes e Empreendimentos SA

    2.2    

Sao Martinho SA

    2.0    

 

 

 

  (a) 

Excludes money market funds.

 

 

 

6  

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


Fund Summary as of August 31, 2023      iShares® MSCI China ETF

 

Investment Objective

The iShares MSCI China ETF (the “Fund”) seeks to track the investment results of an index composed of Chinese equities that are available to international investors, as represented by the MSCI China 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

    (7.39 )%      (4.40 )%      1.96        (7.39 )%      (20.13 )%      21.37

Fund Market

    (7.41     (4.42     1.97          (7.41     (20.23     21.56  

Index

    (7.53     (3.89     2.48            (7.53     (18.01     27.72  

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

(03/01/23)

 

 

 

      

Ending

Account Value

(08/31/23

 

 

)  

      

Expenses

Paid During

the Period

 

 

(a)  

          

Beginning

Account Value

(03/01/23)

      

Ending
Account Value
(08/31/23
 
 
)  
      

Expenses
Paid During
the Period
 
 
(a)  
      

Annualized
Expense
Ratio
 
 
 
      $  1,000.00          $    949.30          $   2.90              $   1,000.00        $   1,022.20          $    3.01          0.59

 

  (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.

 

 

 

F U N D  S U M M A R Y

    7  


Fund Summary as of August 31, 2023 (continued)    iShares® MSCI China ETF

 

Portfolio Management Commentary

Chinese equities declined during the reporting period, negatively impacted by slowing economic growth. While investors were initially optimistic following China’s lifting of several coronavirus pandemic-related lockdowns in December 2022, subsequent economic performance disappointed.

The consumer discretionary sector detracted the most from the Index’s return, driven by the internet and direct marketing retail industry. The reopening of China’s economy dented the profit margins of food delivery service providers, as the end of pandemic-related lockdowns led to reduced demand. In addition, increased competition in the food delivery space, including from one of China’s largest technology firms, weighed on the industry. Some Chinese e-commerce platforms reduced prices during the reporting period with the goal of gaining market share. Investors grew concerned about the impact of lowered prices on profitability, which further pressured the stocks of internet and direct marketing retail companies.

China’s healthcare sector detracted notably from the Index’s return. Life sciences tools and services companies were pressured by a U.S. executive order introducing a national biotechnology and biomanufacturing initiative. Given the program’s stated goal of reducing American reliance on China, stocks of Chinese companies engaged in contract drug research declined.

The consumer staples sector also detracted, driven by the packaged foods and meats industry. A major supplier of flavorings drew scrutiny for its use of additives in products sold domestically. In addition, the profits of pork producers were dampened by the confluence of decreasing pork prices, an oversupply of the meat, and lower consumer demand.

On the upside, interactive media and services companies, in the communication services sector, contributed to the Index’s return. The Chinese government’s easing stance on the regulation of internet firms toward the end of 2022 buoyed investor sentiment, supporting the industry.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector  

Percent of  

Total Investments(a)

 

 

 

Consumer Discretionary

    31.2%  

Communication Services

    20.4    

Financials

    14.9    

Information Technology

    5.9    

Consumer Staples

    5.5    

Health Care

    5.4    

Industrials

    5.3    

Materials

    3.3    

Real Estate

    3.0    

Energy

    2.9    

Utilities

    2.2    

 

 
TEN LARGEST HOLDINGS

 

 

 
Security  

Percent of  

Total Investments(a)

 

 

 

Tencent Holdings Ltd.

    13.8%  

Alibaba Group Holding Ltd.

    9.4    

Meituan, Class B

    4.2    

Pinduoduo Inc.

    2.9    

China Construction Bank Corp., Class H

    2.6    

Baidu Inc.

    2.0    

NetEase Inc.

    2.0    

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

    2.0    

JD.com Inc., Class A

    1.9    

BYD Co. Ltd., Class H

    1.6    

 

 

 

  (a) 

Excludes money market funds.

 
   

 

 

8  

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


Fund Summary as of August 31, 2023      iShares® MSCI China Small-Cap ETF

 

Investment Objective

The iShares MSCI China Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization Chinese equities that are available to international investors, as represented by the MSCI China Small Cap 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

    (16.74 )%      (6.16 )%      (0.39 )%         (16.74 )%      (27.24 )%      (3.85 )% 

Fund Market

    (15.81     (6.14     (0.28        (15.81     (27.15     (2.76

Index

    (18.45     (8.16     (2.02          (18.45     (34.68     (18.42

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

(03/01/23)

 

 

 

      

Ending

Account Value

(08/31/23

 

 

)  

      

Expenses

Paid During

the Period

 

 

(a)  

          

Beginning

Account Value

(03/01/23)

      

Ending

 Account Value

(08/31/23

 

 

)  

      

Expenses

Paid During

the Period

 

 

(a)  

      

Annualized

Expense

Ratio

 

 

 

      $  1,000.00          $    787.90          $   2.66              $  1,000.00        $  1,022.20          $    3.01          0.59

 

  (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.

 

 

 

F U N D  S U M M A R Y

    9  


Fund Summary as of August 31, 2023 (continued)    iShares® MSCI China Small-Cap ETF

 

Portfolio Management Commentary

Small-capitalization Chinese equities declined sharply during the reporting period, negatively impacted by slowing economic growth and increased tensions between China and the U.S. While investors were initially optimistic following China’s lifting of several coronavirus pandemic-related lockdowns in December 2022, subsequent economic performance disappointed. Significant outflows of foreign investment from Chinese equities and the advancement of an economic decoupling from other countries as the Chinese government aims for greater supply chain independence also weighed on Chinese markets.

The real estate sector detracted the most from the Index’s return, as lower demand from home buyers continued to depress China’s housing market. Despite support from the Chinese government through guarantees of repayment for onshore bonds, the real estate management and development industry declined as high debt levels and difficulties in accessing capital pressured several companies. Investors reacted negatively to reports that property developers facing a cash-flow shortfall suspended payment of offshore debt obligations.

The consumer discretionary sector detracted significantly from the Index’s performance amid consumer pessimism, declining spending, and a slowdown in retail sales growth. In the specialty retail industry, competition from online sellers and continuing COVID-19 outbreaks pressured brick-and-mortar retailers. The challenging economic environment also pressured companies in the consumer durables industry, including sellers of home electronics and power tools.

The information technology sector also detracted, as investor concerns about oversupply of solar panels and related technology pressured the semiconductors and semiconductor equipment industry. Also within the sector, technology hardware and equipment companies focused on producing LCD screens for cars declined amid a reduction in demand for Chinese automobiles. The industrials sector also detracted meaningfully from the Index’s performance, notably among providers of industrial waste treatment in the commercial services and supplies industry.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector  

Percent of  

Total Investments(a)

 

 

 

Health Care

    21.6%  

Consumer Discretionary

    12.6    

Real Estate

    12.5    

Industrials

    11.3    

Information Technology

    10.7    

Communication Services

    9.2    

Materials

    7.8    

Financials

    5.3    

Utilities

    3.9    

Consumer Staples

    3.9    

Energy

    1.2    

 

 
TEN LARGEST HOLDINGS

 

 

 
Security  

Percent of  

Total Investments(a)

 

 

 

HUTCHMED China Ltd.

    1.8%  

JinkoSolar Holding Co. Ltd.

    1.7    

Lifetech Scientific Corp.

    1.5    

Hello Group Inc.

    1.4    

Chindata Group Holdings Ltd.

    1.4    

Weimob Inc.

    1.4    

Keymed Biosciences Inc.

    1.4    

Fu Shou Yuan International Group Ltd.

    1.2    

MMG Ltd.

    1.2    

China Education Group Holdings Ltd.

    1.2    

 

 

 

  (a) 

Excludes money market funds.

 

 

 

10  

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


Fund Summary as of August 31, 2023    iShares® MSCI Indonesia ETF

 

Investment Objective

The iShares MSCI Indonesia ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Indonesian equities, as represented by the MSCI Indonesia IMI 25/50 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

    (0.66 )%      1.50     1.00        (0.66 )%      7.74     10.48

Fund Market

    (0.11     1.63       1.73          (0.11     8.43       18.74  

Index

    (0.68     2.03       1.53            (0.68     10.59       16.35  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through May 28, 2019 reflects the performance of MSCI Indonesia Investable Market Index. Index performance beginning on May 29, 2019 reflects the performance of the MSCI Indonesia IMI 25/50 Index.

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

(03/01/23)

 

 

 

      

Ending

Account Value

(08/31/23

 

 

)  

      

Expenses

Paid During

the Period

 

 

(a) 

          

Beginning

Account Value

(03/01/23)

      

Ending

Account Value

(08/31/23

 

 

)  

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $  1,000.00          $   1,027.70          $   3.02              $   1,000.00        $  1,022.20          $    3.01          0.59

 

  (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.

 

 

 

F U N D  S U M M A R Y

    11  


Fund Summary as of August 31,  2023(continued)    iShares® MSCI Indonesia ETF

 

Portfolio Management Commentary

Stocks in Indonesia declined slightly during the reporting period as the country’s central bank raised its benchmark interest rate five times to address persistent inflation. Inflation moderated to within the central bank’s 2-4% annual target. Despite the increases, the country’s economy grew at a steady rate, driven by moderate growth in consumer spending and an expansion in manufacturing. In particular, orders for new goods rose at their fastest rate in more than two years, and unemployment fell amid the strong demand. However, exports, which account for about a quarter of Indonesia’s economic output, declined from all-time highs in mid-2022 despite the government’s effort to strengthen trade partnerships.

The communication sector detracted the most from the Index’s return. The stock price of a large operator of cellular towers declined, reflecting recognition of substantial investment losses in an online provider of e-commerce and financial services. The consumer discretionary sector also detracted, led by the same online e-commerce provider. The materials sector also detracted from the Index’s return, as declining copper prices weighed on the metals and mining industry, while a construction materials stock went to zero after a trading suspension on the Indonesian exchange.

The financials sector contributed the most to the Index’s return. Diversified banks, including those specializing in the growing microfinancing market focused on rural and small-business loans, benefited from rising interest rates. Net interest income margins expanded as higher loan yields outpaced more modest growth in deposit costs, and loan growth helped further boost overall bank industry earnings. Credit agencies also upgraded their ratings on key banks based on their government support.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector  

Percent of  

Total Investments(a)

 

 

 

Financials

    51.2%  

Materials

    9.6    

Consumer Staples

    9.5    

Communication Services

    6.7    

Industrials

    5.7    

Energy

    5.7    

Consumer Discretionary

    5.5    

Health Care

    2.6    

Real Estate

    2.5    

Other (each representing less than 1%)

    1.0    

 

 
TEN LARGEST HOLDINGS  

 

 
Security  

Percent of  

Total Investments(a)

 

 

 

Bank Central Asia Tbk PT

    20.9%  

Bank Rakyat Indonesia Persero Tbk PT

    15.4    

Bank Mandiri Persero Tbk PT

    8.6    

Telkom Indonesia Persero Tbk PT

    4.4    

Astra International Tbk PT

    4.1    

Bank Negara Indonesia Persero Tbk PT

    3.1    

GoTo Gojek Tokopedia Tbk PT

    3.0    

Sumber Alfaria Trijaya Tbk PT

    2.1    

Adaro Energy Indonesia Tbk PT

    1.9    

Charoen Pokphand Indonesia Tbk PT

    1.9    

 

 

 

  (a) 

Excludes money market funds.

 

 

 

12  

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


Fund Summary as of August 31, 2023    iShares® MSCI Peru and Global Exposure ETF

 

Investment Objective

The iShares MSCI Peru and Global Exposure ETF (the “Fund”) (formerly iShares MSCI Peru ETF) seeks to track the investment results of an equity index with exposure to Peru, as defined by the index provider, as represented by the MSCI All Peru Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

On March 29, 2023, the Board approved a proposal to change the Fund’s name and investment objective. These changes became effective on April 10, 2023.

Performance

 

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

Fund NAV

    32.09     0.34     2.08        32.09     1.70     22.91

Fund Market

    31.17       0.38       1.95          31.17       1.91       21.28  

Index

    32.63       0.67       2.58            32.63       3.39       28.97  

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

(03/01/23)

 

 

 

      

Ending

Account Value

(08/31/23

 

 

)  

      

Expenses

Paid During

the Period

 

 

(a) 

          

Beginning

Account Value

(03/01/23)

      

Ending

Account Value

(08/31/23

 

 

)  

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $  1,000.00          $   1,128.80          $   3.17              $   1,000.00        $  1,022.20          $    3.01          0.59

 

  (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.

 

 

 

F U N D  S U M M A R Y

    13  


Fund Summary as of August 31,  2023(continued)    iShares® MSCI Peru and Global Exposure ETF

 

Portfolio Management Commentary

Stocks in companies with exposure to Peru increased substantially for the reporting period. Early in the reporting period, increased exports and domestic demand drove solid economic growth and boosted the country’s equity market. As the world’s second-largest copper producer, Peru further benefited from a rebound in global copper prices. After a yearlong series of interest rate increases halted in January 2023, persistent inflation moderated but remained higher than Peru’s central bank’s target. As the reporting period progressed, poor weather dramatically reduced production in the nation’s fishing and agriculture industries, limiting economic output. The country’s government, beset with political turmoil and social unrest as it removed its president in an impeachment trial, lowered its calendar-year growth forecasts through 2024. Yet Peru’s equity market remained relatively resilient, retaining most of its earlier gains.

Stocks in Peru, which represented approximately 74% of the Index on average for the reporting period, contributed the most to the Index’s return, led by the materials sector. Mining accounts for 10% of Peru’s economic output and 60% of its exports. In the metals and mining industry, large copper producers benefited from rising prices, primarily early in the reporting period, though these prices remained lower than the previous year. Nonetheless, higher sales volumes, increased production, and reduced operating costs helped earnings exceed expectations and boosted returns on equity, even after prices moderated. Substantial investment in mines for future production persisted, some for projects not slated to commence until the early 2030s.

Materials stocks in Canada and the U.K. also contributed to the Index’s performance. Metals and mining companies in both countries operate precious metals mines in Peru, and their stocks increased alongside rising silver and gold prices.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector  

Percent of  

Total Investments(a)

 

 

 

Materials

    48.4%  

Financials

    26.3    

Consumer Staples

    8.6    

Consumer Discretionary

    5.2    

Industrials

    3.8    

Energy

    3.1    

Real Estate

    2.4    

Utilities

    2.2    

 

 

TEN LARGEST HOLDINGS

 

 

 
Security  

Percent of 

Total Investments(a)

 

 

 

Southern Copper Corp.

    22.7%  

Credicorp Ltd.

    22.2    

Cia. de Minas Buenaventura SAA

    4.7    

Alicorp SAA

    4.6    

Sociedad Minera Cerro Verde SAA

    3.5    

Ferreycorp SAA

    3.1    

PetroTal Corp.

    3.1    

Hochschild Mining PLC

    3.0    

InRetail Peru Corp.

    2.8    

Laureate Education Inc., Class A

    2.8    

 

 

 

  (a) 

Excludes money market funds.

 

 

 

14  

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


Fund Summary as of August 31, 2023    iShares® MSCI Philippines ETF

 

Investment Objective

The iShares MSCI Philippines ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Philippine equities, as represented by the MSCI Philippines IMI 25/50 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

    (6.16 )%      (4.79 )%      (1.74 )%         (6.16 )%      (21.75 )%      (16.08 )% 

Fund Market

    (5.54     (4.79     (1.55        (5.54     (21.76     (14.49

Index

    (5.70     (4.07     (1.03          (5.70     (18.75     (9.86

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through November 30, 2020 reflects the performance of the MSCI Philippines Investible Market Index (IMI). Index performance beginning on December 1, 2020 reflects the performance of the MSCI Philippines IMI 25/50 Index.

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

(03/01/23)

 

 

 

      

Ending

Account Value

(08/31/23

 

 

)  

      

Expenses

Paid During

the Period

 

 

(a) 

          

Beginning

Account Value

(03/01/23)

      

Ending

Account Value

(08/31/23

 

 

)  

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $  1,000.00          $    931.20          $   2.87              $   1,000.00        $  1,022.20          $    3.01          0.59

 

  (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.

 

 

 

F U N D  S U M M A R Y

    15  


Fund Summary as of August 31, 2023(continued)    iShares® MSCI Philippines ETF

 

Portfolio Management Commentary

Stocks in the Philippines declined for the reporting period. The Philippine central bank raised interest rates repeatedly to curb the inflation that accompanied the country’s most rapid economic growth in more than four decades. Five increases pushed the bank’s policy rate to its highest level since 2008. The tighter monetary policy helped curb surging food prices, which drove inflation to a 14-year high in January 2023. Inflation eventually moderated but remained higher than the central bank’s 2-4% annual target. Meanwhile, manufacturing output waned as interest rates increased, contracting for the first time in two years. The reduced activity contributed to slower-than-expected economic growth, and the country’s stock market declined sharply toward the end of the reporting period.

The real estate sector detracted the most from the Index’s return. Real estate management and development companies, including a large mall operator and residential builder, reported considerably higher net income. Rental fees on retail leases increased along with rising demand at cinema and other entertainment venues, reflecting higher consumer spending. Nevertheless, the industry’s stocks fell along with the broader market as the reporting period ended. The communication services sector also detracted from performance. Stock in the country’s largest wireless telecommunication services company dropped sharply amid an investigation into equipment cost overruns. In the integrated telecommunication services industry, higher interest rates increased financing costs for providing broadband services.

On the upside, the financials sector, led by banks, contributed to the Index’s return. The country’s robust economic growth supported improved business in the Philippine banking industry, strengthening banks’ capital position. Net interest margins—the difference between the interest banks pay on customer deposits and interest they charge for loans — rose amid higher interest rates, and growth in loan volume for large lenders significantly increased profitability.

Portfolio Information

 

SECTOR ALLOCATION

 

 
Sector   Percent of  
Total Investments(a)
 

 

 

Industrials

    28.5%  

Financials

    25.9    

Real Estate

    18.3    

Consumer Discretionary

    8.0    

Consumer Staples

    6.2    

Utilities

    6.1    

Communication Services

    4.6    

Energy

    1.5    

Materials

    0.9    

 

 

TEN LARGEST HOLDINGS

 

 
Security   Percent of  
Total Investments(a)
 

 

 

BDO Unibank Inc.

    10.9%  

SM Prime Holdings Inc.

    9.7    

Bank of the Philippine Islands

    6.9    

SM Investments Corp.

    6.4    

Ayala Land Inc.

    5.7    

Ayala Corp.

    5.2    

International Container Terminal Services Inc.

    4.4    

Jollibee Foods Corp.

    4.3    

Metropolitan Bank & Trust Co.

    4.0    

Manila Electric Co.

    4.0    

 

 

 

  (a) 

Excludes money market funds.

 

 

 

16  

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


Fund Summary as of August 31, 2023    iShares® MSCI Poland ETF

 

Investment Objective

The iShares MSCI Poland ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Polish equities, as represented by the MSCI Poland IMI 25/50 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

    55.04     (2.81 )%      (1.30 )%         55.04     (13.28 )%      (12.30 )% 

Fund Market

    55.27       (2.73     (1.32        55.27       (12.92     (12.40

Index

    55.34       (2.67     (1.12          55.34       (12.67     (10.62

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Past performance is 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
(03/01/23)
 
 
 
      

Ending
Account Value
(08/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Beginning

Account Value

(03/01/23)

      

Ending
Account Value
(08/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $  1,000.00          $   1,214.90          $   3.29          $   1,000.00        $  1,022.20          $   3.01          0.59

 

  (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.

 

 

 

F U N D  S U M M A R Y

    17  


Fund Summary as of August 31, 2023(continued)    iShares® MSCI Poland ETF

 

Portfolio Management Commentary

Stocks in Poland rose for the reporting period as declining inflation rates, climbing wages, and increased consumer confidence led to stronger consumer spending. Although interest rates remained at elevated levels, the Polish central bank announced a possible interest rate cut in September. Amid a tight housing market, the Polish government offered first-time homebuyers subsidies to offset high mortgage rates, among the most expensive in Europe. The housing subsidies and revived mortgage-lending activity, which had been on track for the weakest levels since 2005. The value of Polish stocks in U.S. dollar terms also increased, as the Polish zloty strengthened relative to the U.S. dollar, boosted by a record trade surplus, declining oil prices, and a recovery in the euro.

The financials sector contributed the most to the Index’s performance, led by the banking industry. Banks posted record profits, mainly from increased interest income as higher interest rates increased the gap between the rates the banks charge for loans and the rates they pay for deposits. The improved economic outlook kept loan defaults at low levels, decreasing costs for credit risk. However, banks also made provisions for legal costs arising from foreign currency mortgage loans after the top EU court ruled against them. Many Poles took out mortgage loans in Swiss francs, attracted by Switzerland’s lower interest rates, but sued the banks after weakening in the Polish zloty raised payment levels.

The consumer discretionary sector also contributed to the Index’s strong performance, led by the textiles and apparel industry. Fashion retailers with value-oriented brands benefited from budget-conscious consumers shopping for more affordable clothing and growing demand in markets in southern Europe.

Portfolio Information

 

SECTOR ALLOCATION

 

 
Sector   Percent of  
Total Investments(a)
 

 

 

Financials

    39.6%  

Consumer Discretionary

    13.6    

Energy

    12.5    

Materials

    8.9    

Communication Services

    7.3    

Consumer Staples

    6.8    

Utilities

    6.1    

Information Technology

    2.9    

Industrials

    2.3    

 

 

TEN LARGEST HOLDINGS

 

 
Security   Percent of  
Total Investments(a)
 

 

 

Polski Koncern Naftowy ORLEN SA

    12.5%  

Powszechna Kasa Oszczednosci Bank Polski SA

    10.9    

Powszechny Zaklad Ubezpieczen SA

    8.3    

Bank Polska Kasa Opieki SA

    6.4    

Dino Polska SA

    6.0    

LPP SA

    4.9    

KGHM Polska Miedz SA

    4.7    

Santander Bank Polska SA

    4.4    

Allegro.eu SA

    4.4    

CD Projekt SA

    3.8    

 

 

 

  (a) 

Excludes money market funds.

 

 

 

18  

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


Fund Summary as of August 31, 2023      iShares® MSCI Qatar ETF

 

Investment Objective

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

Performance

 

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

Fund NAV

    (18.16 )%      3.41   0.17%        (18.16 )%      18.25     1.62

Fund Market

    (16.95     3.54     0.34          (16.95     19.01       3.25  

Index

    (18.43     4.01     0.78            (18.43     21.74       7.53  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSETVALUE)

 

LOGO

The inception date of the Fund was April 29, 2014. The first day of secondary market trading was May 1, 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
(03/01/23)
 
 
 
      

Ending
Account Value
(08/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
     

Beginning

Account Value

(03/01/23)

      

Ending
Account Value
(08/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $  1,000.00          $    1,003.40          $   2.98         $   1,000.00        $  1,022.20          $    3.01          0.59

 

  (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.

 

 

 

F U N D  S U M M A R Y

    19  


Fund Summary as of August 31, 2023(continued)    iShares® MSCI Qatar ETF

 

Portfolio Management Commentary

Stocks in Qatar declined considerably for the reporting period, as exports, which accounted for more than a third of the nation’s economic output in 2022, fell substantially and the economy weakened. Prices for liquefied natural gas (“LNG”), Qatar’s largest export product, dropped by more than two thirds, as global markets adjusted to supply disruptions caused by Russia’s invasion of Ukraine in early 2022. LNG shipments to Europe decreased markedly in 2023. The value of the country’s crude oil exports also declined. Combined, the lower values for oil and LNG reduced Qatar’s trade surplus. The country’s economy stalled after it hosted the 2022 FIFA World Cup soccer tournament, which had prompted a dramatic increase in construction. Meanwhile, the central bank raised its benchmark interest rate significantly to reduce inflation, and price gains moderated. As it did so, however, economic activity unrelated to oil and gas production contracted.

The financials sector detracted the most from the Index’s return. Bank stocks declined, reflecting banks’ significant loan exposure to oil and gas businesses faced with lower prices. Although rising interest rates often benefit banks, Qatari banks’ net interest income—the difference between the interest banks pay on customer deposits and what they charge for loans—declined as overall deposits dropped and non-performing loans increased. Government deposits at the nation’s banks decreased considerably in response to the government’s debt reduction plan. In addition, hyperinflation in Turkey reduced earnings for Qatari lenders with operations there.

In the industrials sector, industrial conglomerates also detracted from performance, as their earnings fell following the World Cup amid waning construction demand. The materials sector also detracted amid sharp profit declines in the chemicals industry related to falling commodities prices.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector   Percent of  
Total Investments(a)
 

 

 

Financials

    55.0%  

Industrials

    11.5    

Energy

    9.2    

Materials

    7.1    

Communication Services

    5.6    

Real Estate

    5.3    

Utilities

    3.6    

Consumer Staples

    1.9    

Health Care

    0.8    

 

 
TEN LARGEST HOLDINGS

 

 
Security   Percent of  
Total Investments(a)
 

 

 

Qatar National Bank QPSC

    22.5%  

Qatar Islamic Bank SAQ

    11.0    

Industries Qatar QSC

    5.9    

Commercial Bank PSQC (The)

    5.5    

Masraf Al Rayan QSC

    4.5    

Qatar Gas Transport Co. Ltd.

    4.1    

Ooredoo QPSC

    3.9    

Qatar International Islamic Bank QSC

    3.7    

Mesaieed Petrochemical Holding Co.

    3.6    

Qatar Fuel QSC

    3.6    

 

 

 

  (a) 

Excludes money market funds.

 

 

 

20  

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


Fund Summary as of August 31, 2023    iShares® MSCI Saudi Arabia ETF

 

Investment Objective

The iShares MSCI Saudi Arabia ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Saudi Arabian equities, as represented by the MSCI Saudi Arabia IMI 25/50 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    

Since

Inception

         1 Year      5 Years     

Since

Inception

 

Fund NAV

    (6.20 )%       8.76     8.67       (6.20 )%       52.19      93.90

Fund Market

    (5.66      8.95       8.69         (5.66      53.51        94.10  

Index

    (5.62      9.54       9.51           (5.62      57.68        106.06  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSETVALUE)

 

LOGO

The inception date of the Fund was September 16, 2015. The first day of secondary market trading was September 17, 2015.

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

(03/01/23)

 

 

 

      

Ending

Account Value

(08/31/23

 

 

)  

      

Expenses

Paid During

the Period

 

 

(a) 

      

Beginning

Account Value

(03/01/23)

      

Ending

Account Value

(08/31/23

 

 

)  

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $  1,000.00          $  1,134.80          $   3.98          $  1,000.00        $  1,021.50          $   3.77          0.74

 

  (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.

 

 

 

F U N D  S U M M A R Y

    21  


Fund Summary as of August 31, 2023   (continued)    iShares® MSCI Saudi Arabia ETF

 

Portfolio Management Commentary

Stocks in Saudi Arabia declined during the reporting period, as lower crude oil prices and rising interest rates constricted economic growth. The world’s largest oil exporter, Saudi Arabia derives the majority of its government and export revenue from that commodity. As global prices declined, the Saudi government reduced production in an attempt to stabilize the market. The cuts, however, substantially reduced economic output even as non-oil activities exhibited strength. Saudi Arabia pegs its currency to the U.S. dollar, so as the Fed raised interest rates to contain inflation, the Saudi Central Bank followed suit, raising borrowing costs to their highest level since 2001. That further constrained growth for an economy that grew fastest of all the Group of 20 large economies in 2022.

The financials sector detracted the most from the Index’s return, led by banks. Bank stocks declined amid fallout from the global banking crisis. The nation’s largest lender incurred a substantial loss from its investment in a large Swiss bank forced into a takeover by a key rival. In addition, lower oil prices and their impact on the broader economy weighed on bank stocks. As the economy slowed and interest rates rose, investors grew concerned about tighter liquidity, declining deposits, and an increase in the percentage of non-performing loans.

The materials sector also detracted from performance. Profits in the chemicals industry declined sharply, mirroring falling prices and weaker demand for petrochemicals, polymers, and other products.

Conversely, sectors that bolstered the Index’s return included healthcare, consumer staples, and information technology. Revenue and profit increased among healthcare facilities operators, packaged foods and meats producers, and in the IT consulting and other services industry.

Portfolio Information

 

SECTOR ALLOCATION  

 

 
Sector  

Percent of  

Total Investments(a)

 

 

 

Financials

    39.8%  

Materials

    20.4    

Communication Services

    9.1    

Energy

    8.8    

Health Care

    4.8    

Consumer Staples

    4.7    

Consumer Discretionary

    3.3    

Utilities

    3.1    

Industrials

    2.3    

Real Estate

    2.3    

Information Technology

    1.4    

 

 
TEN LARGEST HOLDINGS  

 

 
Security  

Percent of  

Total Investments(a)

 

 

 

Al Rajhi Bank

    11.8%  

Saudi National Bank (The)

    8.7    

Saudi Arabian Oil Co.

    7.7    

Saudi Basic Industries Corp.

    6.6    

Saudi Telecom Co.

    6.1    

Saudi Arabian Mining Co.

    3.9    

Riyad Bank

    3.7    

Alinma Bank

    3.1    

Saudi Awwal Bank

    2.9    

SABIC Agri-Nutrients Co.

    2.2    

 

 

 

  (a) 

Excludes money market funds.

 

 

 

22  

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


Fund Summary as of August 31, 2023    iShares® MSCI UAE ETF

 

Investment Objective

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

Performance

 

    Average Annual Total Returns           Cumulative Total Returns  
     1 Year      5 Years     

Since

Inception

           1 Year      5 Years     

Since

Inception

 

Fund NAV

    (4.17 )%       3.23      (1.43 )%        (4.17 )%       17.24      (12.61 )% 

Fund Market

    (5.19      3.36        (1.44       (5.19      18.00        (12.63

Index

    (3.46      4.18        (0.68             (3.46      22.73        (6.14

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSETVALUE)

 

LOGO

The inception date of the Fund was April 29, 2014. The first day of secondary market trading was May 1, 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

(03/01/23)

 

 

 

      

Ending

Account Value

(08/31/23

 

 

)  

      

Expenses

Paid During

the Period

 

 

(a) 

      

Beginning

Account Value

(03/01/23)

      

Ending

Account Value

(08/31/23

 

 

)  

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $  1,000.00          $  1,055.40          $   3.06          $  1,000.00        $  1,022.20          $    3.01          0.59

 

  (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.

 

 

 

F U N D  S U M M A R Y

    23  


Fund Summary as of August 31, 2023   (continued)    iShares® MSCI UAE ETF

 

Portfolio Management Commentary

Stocks in the United Arab Emirates (“U.A.E.”) declined for the reporting period. Prices and production of crude oil and natural gas, which account for about 30% of the nation’s economic output, declined. At the same time, interest rates increased along with corresponding concerns about the health of global banks, pressuring equity prices. The Central Bank of the U.A.E. anchors its base policy rate to the Fed’s interest rate policy decisions and followed its interest rate increases during the reporting period. As interest rates rose, inflation fell by more than half. Nonetheless, the nation’s economy grew at a robust pace. Manufacturing expanded at the highest rate in four years, and strong domestic demand, aided by falling prices, boosted business activity. Overall, U.A.E. economic output grew at one of the highest rates globally, almost doubling in 2022.

The communication services sector detracted the most from the Index’s return, driven by the diversified telecommunication services industry. Sales in the industry remained relatively flat amid declining subscriber growth and significant exchange rate volatility in several Middle Eastern markets. Meanwhile, a state-owned mobile network operator’s stake in a foreign mobile services company weighed on the industry amid continued operating challenges and the falling equity values of that investment. The financials sector also detracted, as profits in the banking industry declined amid impaired loans and provisions set aside to cover potential loan losses.

On the upside, the real estate sector contributed the most to the Index’s return. The real estate management and development industry advanced as real estate owners benefited from rising property values and new construction projects, fed by Dubai’s post-coronavirus pandemic recovery.

Portfolio Information

 

SECTOR ALLOCATION

 

 

 
Sector  

Percent of  

Total Investments(a)

 

 

 

Financials

    38.4%  

Real Estate

    19.3    

Communication Services

    18.4    

Industrials

    11.8    

Consumer Discretionary

    7.1    

Utilities

    2.5    

Energy

    1.6    

Other (each representing less than 1%)

    0.9    

 

 
TEN LARGEST HOLDINGS

 

 

 
Security  

Percent of  

Total Investments(a)

 

 

 

Emirates Telecommunications Group Co. PJSC

    17.3%  

First Abu Dhabi Bank PJSC

    15.1    

Emaar Properties PJSC

    11.5    

Abu Dhabi Commercial Bank PJSC

    4.5    

Aldar Properties PJSC

    4.4    

Dubai Islamic Bank PJSC

    4.3    

Emirates NBD Bank PJSC

    4.3    

Abu Dhabi Islamic Bank PJSC

    4.1    

Multiply Group

    3.9    

Abu Dhabi National Oil Co. for Distribution PJSC

    3.5    

 

 

 

  (a) 

Excludes money market funds.

 

 

 

24  

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


About Fund Performance

 

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

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

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

Disclosure of Expenses

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

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

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

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

 

 

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

  25


Schedule of Investments

August 31, 2023

  

iShares® MSCI Brazil Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 4.8%            

Embraer SA(a)

    2,543,873     $  10,012,032  
   

 

 

 
Automobile Components — 1.0%            

Fras-Le SA

    244,117       677,329  

Mahle-Metal Leve SA

    139,202       1,347,311  
   

 

 

 
      2,024,640  
Biotechnology — 0.2%            

Blau Farmaceutica SA(a)

    131,209       468,182  
   

 

 

 
Commercial Services & Supplies — 3.1%            

Ambipar Participacoes e Empreendimentos SA

    163,365       689,808  

GPS Participacoes e Empreendimentos SA(b)

    1,215,393       4,533,135  

Orizon Valorizacao de Residuos SA(a)

    179,986       1,272,101  
   

 

 

 
      6,495,044  
Communications Equipment — 0.8%            

Intelbras SA Industria de Telecomunicacao Eletronica Brasileira

    355,424       1,571,113  
   

 

 

 
Consumer Staples Distribution & Retail — 1.3%        

Grupo Mateus SA(a)

    1,997,428       2,714,571  
   

 

 

 
Diversified Consumer Services — 3.8%        

Cogna Educacao(a)

    6,786,416       4,001,643  

YDUQS Participacoes SA

    950,101       3,908,191  
   

 

 

 
      7,909,834  
Electric Utilities — 3.9%            

Alupar Investimento SA

    551,053       3,148,048  

Transmissora Alianca de Energia Eletrica SA

    706,777       4,881,165  
   

 

 

 
      8,029,213  
Financial Services — 1.6%            

Cielo SA

    4,421,198       3,321,222  
   

 

 

 
Food Products — 10.3%            

BrasilAgro - Co. Brasileira de Propriedades Agricolas

    185,114       889,301  

BRF SA(a)

    3,042,184       5,553,527  

Camil Alimentos SA

    379,714       651,764  

Jalles Machado SA

    374,597       636,173  

M. Dias Branco SA

    245,187       1,841,855  

Marfrig Global Foods SA

    1,075,787       1,609,754  

Minerva SA

    988,260       1,676,353  

Sao Martinho SA

    576,099       4,203,200  

SLC Agricola SA

    368,862       2,995,856  

Tres Tentos Agroindustrial SA

    450,501       1,209,936  
   

 

 

 
      21,267,719  
Ground Transportation — 3.5%            

Movida Participacoes SA

    458,571       1,149,194  

SIMPAR SA

    1,212,782       2,387,824  

Vamos Locacao de Caminhoes Maquinas e Equipamentos SA

    1,597,438       3,777,425  
   

 

 

 
      7,314,443  
Health Care Providers & Services — 5.4%        

Alliar Medicos A Frente SA(a)

    14,730       23,826  

CM Hospitalar SA

    583,712       2,249,013  

Diagnosticos da America SA

    544,474       1,211,641  

Fleury SA

    890,460       2,654,091  

Hospital Mater Dei SA

    414,789       808,294  

Odontoprev SA

    999,002       2,085,940  
Security   Shares     Value  
Health Care Providers & Services (continued)            

Oncoclinicas do Brasil Servicos Medicos SA(a)

    858,395     $ 2,097,430  
   

 

 

 
       11,130,235  
Hotels, Restaurants & Leisure — 1.9%        

Smartfit Escola de Ginastica e Danca SA(a)

    954,019       3,968,617  
   

 

 

 
Household Durables — 6.2%            

Cury Construtora e Incorporadora SA

    474,982       1,564,394  

Cyrela Brazil Realty SA Empreendimentos e Participacoes

    1,011,920       4,585,471  

Direcional Engenharia SA

    407,831       1,667,709  

Ez Tec Empreendimentos e Participacoes SA

    399,584       1,778,421  

MRV Engenharia e Participacoes SA

    1,422,587       3,263,414  
   

 

 

 
      12,859,409  
Independent Power and Renewable Electricity Producers — 2.9%  

AES Brasil Energia SA

    761,867       1,698,491  

Auren Energia SA

    1,084,897       2,981,684  

Omega Energia SA(a)

    675,599       1,365,646  
   

 

 

 
      6,045,821  
Insurance — 0.9%            

IRB Brasil Resseguros S/A(a)

    223,118       1,935,592  
   

 

 

 
IT Services — 0.9%            

Locaweb Servicos de Internet SA(b)

    1,292,686       1,845,557  
   

 

 

 
Machinery — 1.3%            

Iochpe Maxion SA

    500,310       1,403,319  

Tupy SA

    260,696       1,366,113  
   

 

 

 
      2,769,432  
Marine Transportation — 0.8%            

Hidrovias do Brasil SA(a)

    2,199,832       1,750,253  
   

 

 

 
Metals & Mining — 0.6%            

Bradespar SA

    124,754       535,590  

Cia. Brasileira de Aluminio

    754,154       651,807  
   

 

 

 
      1,187,397  
Oil, Gas & Consumable Fuels — 4.8%        

3R Petroleum Oleo E Gas SA(a)

    867,863       5,769,338  

Enauta Participacoes SA

    528,684       1,675,075  

Petroreconcavo SA

    530,157       2,479,465  
   

 

 

 
      9,923,878  
Paper & Forest Products — 1.2%        

Dexco SA

    1,483,717       2,384,949  
   

 

 

 
Real Estate Management & Development — 8.4%        

Aliansce Sonae Shopping Centers SA

    1,556,656       7,157,653  

Iguatemi SA

    789,607       3,284,681  

JHSF Participacoes SA

    1,228,336       1,190,621  

LOG Commercial Properties e Participacoes SA

    166,248       631,145  

Multiplan Empreendimentos Imobiliarios SA

    1,021,948       5,105,561  
   

 

 

 
      17,369,661  
Specialty Retail — 1.5%            

Grupo SBF SA

    352,369       508,767  

Pet Center Comercio e Participacoes SA

    1,254,334       1,388,061  

Via S/A(a)

    4,624,356       1,185,960  
   

 

 

 
      3,082,788  
Textiles, Apparel & Luxury Goods — 5.6%        

Arezzo Industria e Comercio SA

    240,824       3,436,765  

Grendene SA

    1,141,876       1,570,294  

Grupo De Moda Soma SA

    1,844,636       2,790,021  

Vivara Participacoes SA

    427,084       2,344,109  

 

 

26  

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


Schedule of Investments (continued)

August 31, 2023

  

iShares® MSCI Brazil Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
Textiles, Apparel & Luxury Goods (continued)  

Vulcabras Azaleia SA

    355,725     $ 1,419,437  
   

 

 

 
      11,560,626  
Trading Companies & Distributors — 1.0%            

Armac Locacao Logistica E Servicos SA

    375,392       961,970  

Mills Estruturas e Servicos de Engenharia SA

    400,830       1,023,919  
   

 

 

 
      1,985,889  
Transportation Infrastructure — 3.0%            

EcoRodovias Infraestrutura e Logistica SA

    881,360       1,343,740  

Santos Brasil Participacoes SA

    1,718,816       2,995,403  

Wilson Sons Holdings Brasil SA, NVS

    716,014       1,814,597  
   

 

 

 
      6,153,740  
Water Utilities — 2.3%            

Cia. de Saneamento de Minas Gerais-COPASA

    687,559       2,488,072  

Cia. de Saneamento do Parana

    516,232       2,361,175  
   

 

 

 
      4,849,247  
   

 

 

 

Total Common Stocks — 83.0%
(Cost: $163,495,843)

       171,931,104  
   

 

 

 

Preferred Stocks

   
Aerospace & Defense — 0.3%            

Taurus Armas SA, Preference Shares, NVS

    231,992       696,156  
   

 

 

 
Banks — 2.5%            

Banco ABC Brasil SA, Preference Shares, NVS

    319,843       1,198,888  

Banco do Estado do Rio Grande do Sul SA, Class B, Preference Shares, NVS

    732,438       1,810,370  

Banco Pan SA, Preference Shares, NVS

    1,224,492       2,163,610  
   

 

 

 
      5,172,868  
Chemicals — 1.3%            

Unipar Carbocloro SA, Class B, Preference Shares, NVS

    177,168       2,765,539  
   

 

 

 
Electric Utilities — 0.2%            

Cia. Energetica do Ceara, Class A, Preference Shares, NVS

    51,149       457,981  
   

 

 

 
Machinery — 1.9%            

Marcopolo SA, Preference Shares, NVS

    1,860,516       2,276,780  

Randon SA Implementos e Participacoes, Preference Shares, NVS

    654,167       1,581,240  
   

 

 

 
      3,858,020  

Security   Shares     Value  

 

 
Metals & Mining — 6.5%            

Bradespar SA, Preference Shares, NVS

    922,567     $ 4,191,750  

Cia. Ferro Ligas da Bahia - FERBASA, Preference Shares, NVS

    117,111       1,094,476  

Metalurgica Gerdau SA, Preference Shares, NVS

    2,418,343       5,772,319  

Usinas Siderurgicas de Minas Gerais SA Usiminas, Class A, Preference Shares, NVS

    1,683,722       2,339,235  
   

 

 

 
      13,397,780  
Passenger Airlines — 1.9%            

Azul SA, Preference Shares, NVS

    1,031,665       3,018,715  

Gol Linhas Aereas Inteligentes SA, Preference Shares, NVS

    730,860       1,037,539  
   

 

 

 
      4,056,254  
Textiles, Apparel & Luxury Goods — 0.7%            

Alpargatas SA, Preference Shares, NVS

    807,556       1,371,462  
   

 

 

 
Water Utilities — 0.7%            

Cia. de Saneamento do Parana, Preference Shares, NVS

    1,578,412       1,453,450  
   

 

 

 

Total Preferred Stocks — 16.0%
(Cost: $31,555,997)

      33,229,510  
   

 

 

 

Rights

   
Food Products — 0.0%            

Jalles Machado SA (Expires 09/26/23, Strike Price BRL 6.47)(a)

    11,710       6,148  

Marfrig Global Foods SA (Expires 09/25/23, Strike Price BRL 7.21)(a)

    503,983       12,213  
   

 

 

 
      18,361  
   

 

 

 

Total Rights — 0.0%
(Cost: $0)

      18,361  
   

 

 

 

Total Investments — 99.0%
(Cost: $195,051,840)

      205,178,975  

Other Assets Less Liabilities — 1.0%

      2,113,831  
   

 

 

 

Net Assets — 100.0%

    $  207,292,806  
   

 

 

 

 

(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.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 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

08/31/22

    

Purchases

at Cost

    

Proceeds

from Sale

   

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

08/31/23

    

Shares

Held at

08/31/23

     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

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

    $ 40,000      $        $(40,000 )(b)    $      $      $             $ 5,273      $  
         

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

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

 
  (b) 

Represents net amount purchased (sold).

 

 

 

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

  27


Schedule of Investments(continued)

August 31, 2023

  

iShares® MSCI Brazil Small-Cap ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description  

Number of

Contracts

   

Expiration

Date

   

Notional

Amount

(000)

   

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Long Contracts

       

Bclear MSCI Brazil Index

    20       09/15/23     $ 1,085     $ 7,475  
       

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
   

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Assets — Derivative Financial Instruments

                   

Futures contracts

                   

Unrealized appreciation on futures contracts(a)

  $      $      $ 7,475      $      $      $      $ 7,475  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

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

 

 

 
   

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Net Realized Gain (Loss) from

                  

Futures contracts

  $      $      $ 239,699     $      $      $      $ 239,699  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                  

Futures contracts

  $      $      $ (19,580   $      $      $      $ (19,580
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

 

Average notional value of contracts — long

  $ 907,441   

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
    Level 1      Level 2      Level 3      Total  

 

 

Assets

          

Investments

          

Long-Term Investments

          

Common Stocks

  $ 170,232,613      $  1,698,491      $    —      $ 171,931,104  

Preferred Stocks

    33,229,510                      33,229,510  

Rights

    18,361                      18,361  
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 203,480,484      $ 1,698,491      $      $ 205,178,975  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

 

28  

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


Schedule of Investments(continued)

August 31, 2023

  

iShares® MSCI Brazil Small-Cap ETF

 

Fair Value Hierarchy as of Period End (continued)

 

 

 
    Level 1      Level 2      Level 3      Total  

 

 

Derivative Financial Instruments(a)

          

Assets

          

Equity Contracts

  $       7,475      $       —      $    —      $       7,475  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  29


Schedule of Investments

August 31, 2023

  

iShares® MSCI China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 0.1%            

AECC Aero-Engine Control Co. Ltd., Class A

    242,000     $ 744,086  

AECC Aviation Power Co. Ltd., Class A

    668,876       3,604,395  

AviChina Industry & Technology Co. Ltd., Class H

    9,841,000       4,410,136  
   

 

 

 
      8,758,617  
Air Freight & Logistics — 0.8%            

JD Logistics Inc.(a)(b)(c)

    7,189,600       9,583,532  

SF Holding Co. Ltd., Class A

    1,086,883       6,491,047  

YTO Express Group Co. Ltd., Class A

    836,000       1,735,853  

Yunda Holding Co. Ltd., Class A

    669,357       905,247  

ZTO Express Cayman Inc., ADR

    1,569,925       39,467,914  
   

 

 

 
       58,183,593  
Automobile Components — 0.5%            

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

    83,695       1,699,809  

Fuyao Glass Industry Group Co. Ltd., Class A

    418,098       2,184,342  

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

    2,340,800       10,591,776  

Huayu Automotive Systems Co. Ltd., Class A

    836,072       2,158,586  

Huizhou Desay Sv Automotive Co. Ltd., Class A

    167,700       3,352,120  

Minth Group Ltd.

    3,344,000       9,926,832  

Ningbo Tuopu Group Co. Ltd., Class A

    250,800       2,688,152  

Sailun Group Co. Ltd., Class A

    826,361       1,403,461  

Shandong Linglong Tyre Co. Ltd., Class A

    418,028       1,250,157  
   

 

 

 
      35,255,235  
Automobiles — 5.1%            

AIMA Technology Group Co. Ltd.

    252,400       983,706  

BYD Co. Ltd., Class A

    432,969       14,849,995  

BYD Co. Ltd., Class H

    3,841,500       120,664,049  

Chongqing Changan Automobile Co. Ltd., Class A

    1,935,420       3,339,559  

Dongfeng Motor Group Co. Ltd., Class H

    10,726,000       3,934,512  

Geely Automobile Holdings Ltd.

    22,604,000       28,060,063  

Great Wall Motor Co. Ltd., Class A

    585,200       2,102,195  

Great Wall Motor Co. Ltd., Class H

    8,801,500       10,428,021  

Guangzhou Automobile Group Co. Ltd., Class A

    1,086,800       1,506,394  

Guangzhou Automobile Group Co. Ltd., Class H

    11,344,400       5,973,804  

Li Auto Inc.(b)

    4,169,080       86,799,560  

NIO Inc., ADR(b)(c)

    5,142,541       52,813,896  

SAIC Motor Corp. Ltd., Class A

    1,755,604       3,468,034  

Seres Group Co. Ltd., NVS

    337,600       1,674,778  

XPeng Inc.(b)

    3,871,672       34,796,502  

Yadea Group Holdings Ltd.(a)

    5,016,000       9,644,006  
   

 

 

 
      381,039,074  
Banks — 8.9%            

Agricultural Bank of China Ltd., Class A

    19,228,000       9,139,026  

Agricultural Bank of China Ltd., Class H

    107,501,000       36,846,455  

Bank of Beijing Co. Ltd., Class A

    5,023,799       3,084,991  

Bank of Chengdu Co. Ltd., Class A

    836,093       1,574,119  

Bank of China Ltd., Class A

    8,360,000       4,306,503  

Bank of China Ltd., Class H

    294,290,000       99,739,894  

Bank of Communications Co. Ltd., Class A

    9,325,522       7,115,109  

Bank of Communications Co. Ltd., Class H

    32,638,200       18,680,486  

Bank of Hangzhou Co. Ltd., Class A

    1,504,828       2,318,257  

Bank of Jiangsu Co. Ltd., Class A

    4,175,615       4,093,787  

Bank of Nanjing Co. Ltd., Class A

    2,642,404       2,875,933  

Bank of Ningbo Co. Ltd., Class A

    1,475,302       5,303,560  

Bank of Shanghai Co. Ltd., Class A

    3,929,210       3,212,324  

China CITIC Bank Corp. Ltd., Class H

    33,441,800       14,883,892  

China Construction Bank Corp., Class A

    2,136,314       1,762,084  
Security   Shares     Value  
Banks (continued)            

China Construction Bank Corp., Class H

    356,190,000     $  190,579,761  

China Everbright Bank Co. Ltd., Class A

    12,038,400       4,979,167  

China Everbright Bank Co. Ltd., Class H

    9,279,000       2,672,549  

China Merchants Bank Co. Ltd., Class A

    4,681,625       20,335,760  

China Merchants Bank Co. Ltd., Class H(c)

    14,227,150       56,336,929  

China Minsheng Banking Corp. Ltd., Class A

    9,112,470       4,730,849  

China Minsheng Banking Corp. Ltd., Class H

    22,234,160       7,141,258  

China Zheshang Bank Co. Ltd., Class A

    6,287,390       2,222,244  

Chongqing Rural Commercial Bank Co. Ltd., Class A

    2,388,600       1,234,609  

CNPC Capital Co. Ltd., NVS

    1,504,800       1,391,562  

Huaxia Bank Co. Ltd., Class A

    3,594,861       2,736,569  

Industrial & Commercial Bank of China Ltd., Class A

    14,546,400       9,233,712  

Industrial & Commercial Bank of China Ltd., Class H

    239,255,000       109,692,973  

Industrial Bank Co. Ltd., Class A

    4,548,210       9,886,025  

Ping An Bank Co. Ltd., Class A

    4,353,655       6,658,178  

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

    6,604,400       4,412,045  

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

    29,282,000       14,442,767  

Shanghai Pudong Development Bank Co. Ltd., Class A

    6,855,224       6,579,985  

Shanghai Rural Commercial Bank Co. Ltd.

    2,556,900       2,045,495  
   

 

 

 
      672,248,857  
Beverages — 3.1%            

Anhui Gujing Distillery Co. Ltd., Class A

    94,396       3,733,545  

Anhui Gujing Distillery Co. Ltd., Class B

    334,780       5,569,172  

Anhui Kouzi Distillery Co. Ltd., Class A

    142,000       1,112,304  

Anhui Yingjia Distillery Co. Ltd., Class A

    146,800       1,546,534  

Beijing Yanjing Brewery Co. Ltd., Class A

    492,500       701,814  

China Resources Beer Holdings Co. Ltd.

    6,132,000       36,003,086  

Chongqing Brewery Co. Ltd., Class A

    83,600       1,049,787  

Eastroc Beverage Group Co. Ltd.

    83,600       2,254,942  

Hebei Hengshui Laobaigan Liquor Co. Ltd.

    86,000       278,464  

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

    334,403       2,751,788  

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

    334,476       6,162,156  

JiuGui Liquor Co. Ltd., Class A

    84,200       1,036,187  

Kweichow Moutai Co. Ltd., Class A

    284,055       72,207,957  

Luzhou Laojiao Co. Ltd., Class A

    354,900       11,334,003  

Nongfu Spring Co. Ltd., Class H(a)

    6,505,400       36,536,962  

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

    285,397       1,257,436  

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

    285,686       9,506,837  

Shede Spirits Co. Ltd.

    84,400       1,564,735  

Sichuan Swellfun Co. Ltd., Class A

    105,352       959,231  

Tsingtao Brewery Co. Ltd., Class A

    167,263       2,091,512  

Tsingtao Brewery Co. Ltd., Class H

    2,332,000       19,392,066  

Wuliangye Yibin Co. Ltd., Class A

    839,277       17,980,367  
   

 

 

 
      235,030,885  
Biotechnology — 1.5%            

3SBio Inc.(a)

    7,040,500       5,887,763  

Akeso Inc.(a)(b)(c)

    1,801,000       7,910,306  

BeiGene Ltd.(b)

    2,601,934       41,739,948  

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

    188,745       1,297,850  

BGI Genomics Co. Ltd., Class A

    167,299       1,233,777  

Bloomage Biotechnology Corp. Ltd.

    119,900       1,527,572  

 

 

30  

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


Schedule of Investments(continued)

August 31, 2023

  

iShares® MSCI China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Biotechnology (continued)            

Chongqing Zhifei Biological Products Co. Ltd., Class A

    544,360     $ 3,301,505  

Hualan Biological Engineering Inc., Class A

    543,472       1,585,502  

Imeik Technology Development Co. Ltd., Class A

    49,944       3,010,749  

Innovent Biologics Inc.(a)(b)

    4,325,500       19,344,246  

Legend Biotech Corp., ADR(b)(c)

    219,942       15,255,177  

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

    186,088       974,566  

Shenzhen Kangtai Biological Products Co. Ltd., Class A(b)

    347,188       1,328,008  

Walvax Biotechnology Co. Ltd., Class A

    418,097       1,356,928  

Zai Lab Ltd.(b)(c)

    3,478,560       9,058,530  
   

 

 

 
      114,812,427  
Broadline Retail — 14.6%            

Alibaba Group Holding Ltd.(b)

    60,900,468       706,819,078  

JD.com Inc., Class A

    8,707,596       144,616,646  

MINISO Group Holding Ltd.(b)

    358,079       9,274,246  

Pinduoduo Inc., ADR(b)(c)

    2,218,385       219,553,564  

Vipshop Holdings Ltd., ADR(b)

    1,268,528       20,030,057  
   

 

 

 
       1,100,293,591  
Building Products — 0.0%            

Beijing New Building Materials PLC, Class A

    501,670       2,061,658  

Zhejiang Weixing New Building Materials Co. Ltd., Class A

    456,100       1,266,307  
   

 

 

 
      3,327,965  
Capital Markets — 1.7%            

BOC International China Co. Ltd., Class A

    668,800       1,091,746  

Caitong Securities Co. Ltd., Class A

    1,155,600       1,272,084  

Changjiang Securities Co. Ltd., Class A

    2,424,436       1,991,911  

China Cinda Asset Management Co. Ltd., Class H

    36,595,000       3,588,670  

China Galaxy Securities Co. Ltd., Class A

    1,274,600       2,022,272  

China Galaxy Securities Co. Ltd., Class H

    11,729,000       6,309,780  

China International Capital Corp. Ltd., Class A

    335,202       1,797,066  

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

    5,826,000       11,189,600  

China Merchants Securities Co. Ltd., Class A

    1,922,868       3,758,388  

CITIC Securities Co. Ltd., Class A

    2,843,831       8,690,355  

CITIC Securities Co. Ltd., Class H(c)

    6,328,800       12,357,759  

CSC Financial Co. Ltd., Class A

    1,003,299       3,557,063  

Dongxing Securities Co. Ltd., Class A

    919,611       1,047,929  

East Money Information Co. Ltd., Class A

    3,393,451       7,408,635  

Everbright Securities Co. Ltd., Class A

    1,086,899       2,563,547  

First Capital Securities Co. Ltd., Class A

    1,337,689       1,105,639  

Founder Securities Co. Ltd., Class A

    2,697,600       2,680,419  

GF Securities Co. Ltd., Class A

    1,202,199       2,487,180  

GF Securities Co. Ltd., Class H

    3,854,200       5,499,434  

Guosen Securities Co. Ltd., Class A

    2,006,433       2,559,367  

Guotai Junan Securities Co. Ltd., Class A

    1,975,359       3,955,523  

Guoyuan Securities Co. Ltd., Class A

    1,066,670       1,018,153  

Haitong Securities Co. Ltd., Class A

    2,424,459       3,277,258  

Haitong Securities Co. Ltd., Class H

    9,363,200       5,809,684  

Hithink RoyalFlush Information Network Co. Ltd., Class A

    115,387       2,655,390  

Huatai Securities Co. Ltd., Class A

    1,755,693       3,837,425  

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

    4,425,000       5,822,382  

Huaxi Securities Co. Ltd., Class A

    1,254,073       1,468,505  

Industrial Securities Co. Ltd., Class A

    2,356,592       2,077,811  

Orient Securities Co. Ltd., Class A

    1,809,721       2,481,402  

SDIC Capital Co. Ltd., Class A

    1,751,400       1,764,155  

Shanxi Securities Co. Ltd., Class A

    972,141       808,979  

Shenwan Hongyuan Group Co. Ltd., Class A

    6,230,979       3,733,217  
Security   Shares     Value  
Capital Markets (continued)            

SooChow Securities Co. Ltd., Class A

    1,375,035     $ 1,546,652  

Southwest Securities Co. Ltd., Class A

    1,588,400       921,046  

Western Securities Co. Ltd., Class A

    1,588,430       1,473,373  

Zhongtai Securities Co. Ltd.

    1,922,800       1,931,948  
   

 

 

 
       127,561,747  
Chemicals — 1.1%            

Asia - Potash International Investment Guangzhou Co. Ltd.(b)

    250,800       963,893  

CNGR Advanced Material Co. Ltd.

    167,976       1,266,085  

Do-Fluoride New Materials Co. Ltd., Class A

    351,760       790,952  

Dongyue Group Ltd.

    6,345,000       5,444,616  

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

    1,448,600       6,919,402  

Ganfeng Lithium Group Co. Ltd., Class A

    463,341       3,020,025  

Guangzhou Tinci Materials Technology Co. Ltd., Class A

    502,400       2,264,744  

Hengli Petrochemical Co. Ltd., Class A(b)

    1,755,610       3,465,167  

Hengyi Petrochemical Co. Ltd., Class A(b)

    1,003,276       1,057,603  

Hoshine Silicon Industry Co. Ltd., Class A

    167,200       1,419,988  

Huafon Chemical Co. Ltd., Class A

    1,965,200       1,888,723  

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

    3,480,170       1,999,101  

Jiangsu Eastern Shenghong Co. Ltd., Class A

    1,506,500       2,378,492  

Jiangsu Yangnong Chemical Co. Ltd., Class A

    179,260       1,573,629  

LB Group Co. Ltd., Class A

    585,200       1,457,543  

Ningbo Shanshan Co. Ltd.

    724,191       1,354,276  

Ningxia Baofeng Energy Group Co. Ltd., Class A

    1,797,500       3,388,289  

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

    1,254,000       3,082,170  

Rongsheng Petrochemical Co. Ltd., Class A

    2,424,892       4,015,840  

Satellite Chemical Co. Ltd., Class A

    989,643       2,079,086  

Shandong Hualu Hengsheng Chemical Co. Ltd., Class A

    585,200       2,660,121  

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

    487,440       2,192,072  

Shenzhen Capchem Technology Co. Ltd., Class A

    216,320       1,426,982  

Shenzhen Dynanonic Co. Ltd.

    67,360       869,214  

Shenzhen Senior Technology Co. Ltd., Class A

    390,997       754,819  

Sichuan Yahua Industrial Group Co. Ltd., Class A

    239,000       514,545  

Sinoma Science & Technology Co. Ltd., Class A

    501,600       1,511,067  

Skshu Paint Co. Ltd., Class A(b)

    142,120       1,473,805  

SuZhou TA&A Ultra Clean Technology Co. Ltd., Class A

    219,280       813,367  

Tianqi Lithium Corp., Class A

    334,400       2,642,852  

Tongkun Group Co. Ltd., Class A(b)

    668,864       1,362,535  

Wanhua Chemical Group Co. Ltd., Class A

    752,473       9,696,989  

Weihai Guangwei Composites Co. Ltd., Class A

    268,160       1,030,815  

Yunnan Energy New Material Co. Ltd., Class A

    218,004       1,990,137  

Yunnan Yuntianhua Co. Ltd.

    501,600       1,188,624  

Zangge Mining Co. Ltd.

    418,000       1,290,343  

Zhejiang Juhua Co. Ltd., Class A

    585,972       1,318,658  
   

 

 

 
      82,566,569  
Commercial Services & Supplies — 0.1%            

China Everbright Environment Group Ltd.

    14,212,148       5,176,951  

Shanghai M&G Stationery Inc., Class A

    250,800       1,297,760  

Zhejiang Weiming Environment Protection Co. Ltd., Class A

    576,400       1,417,660  
   

 

 

 
      7,892,371  
Communications Equipment — 0.5%            

BYD Electronic International Co. Ltd.

    2,932,500       13,581,882  

 

 

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

  31


Schedule of Investments(continued)

August 31, 2023

  

iShares® MSCI China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Communications Equipment (continued)            

Guangzhou Haige Communications Group Inc. Co., Class A

    919,684     $ 1,337,615  

Hengtong Optic-Electric Co. Ltd., Class A

    660,000       1,281,952  

Suzhou TFC Optical Communication Co. Ltd.

    83,600       970,211  

Yealink Network Technology Corp. Ltd., Class A

    274,731       1,397,245  

Zhongji Innolight Co. Ltd., Class A

    167,277       2,634,533  

ZTE Corp., Class A

    865,264       4,211,666  

ZTE Corp., Class H

    2,842,440       9,148,138  
   

 

 

 
       34,563,242  
Construction & Engineering — 0.7%            

China Communications Services Corp. Ltd., Class H

    9,856,800       4,437,636  

China Conch Venture Holdings Ltd.

    5,446,500       5,351,386  

China Energy Engineering Corp. Ltd.

    7,737,400       2,434,658  

China National Chemical Engineering Co. Ltd., Class A

    1,588,495       1,698,946  

China Railway Group Ltd., Class A

    4,683,698       4,317,846  

China Railway Group Ltd., Class H

    16,497,000       8,727,416  

China State Construction Engineering Corp. Ltd., Class A

    9,112,438       7,047,709  

China State Construction International Holdings Ltd.

    8,360,000       9,298,358  

Metallurgical Corp. of China Ltd., Class A

    4,765,200       2,383,090  

Power Construction Corp. of China Ltd., Class A

    4,096,497       2,899,122  

Sichuan Road & Bridge Co. Ltd., Class A

    1,873,360       2,290,701  
   

 

 

 
      50,886,868  
Construction Materials — 0.4%            

Anhui Conch Cement Co. Ltd., Class A

    951,391       3,360,443  

Anhui Conch Cement Co. Ltd., Class H

    4,598,000       12,802,922  

China Jushi Co. Ltd., Class A

    1,170,405       2,245,589  

China National Building Material Co. Ltd., Class H

    15,048,000       7,648,383  

China Resources Cement Holdings Ltd.

    10,032,000       3,322,945  
   

 

 

 
      29,380,282  
Consumer Finance — 0.1%            

Lufax Holding Ltd., ADR

    2,667,766       3,227,997  

Qifu Technology Inc.

    419,494       7,131,398  
   

 

 

 
      10,359,395  
Consumer Staples Distribution & Retail — 0.6%  

Alibaba Health Information Technology
Ltd.(b)(c)

    19,640,000       11,595,320  

DaShenLin Pharmaceutical Group Co. Ltd., Class A

    334,786       1,225,841  

JD Health International Inc.(a)(b)

    4,038,350       21,773,413  

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

    2,068,400       5,162,929  

Yifeng Pharmacy Chain Co. Ltd., Class A

    333,572       1,630,792  
   

 

 

 
      41,388,295  
Containers & Packaging — 0.0%            

Shenzhen YUTO Packaging Technology Co. Ltd.

    250,740       831,361  
   

 

 

 
Distributors — 0.0%            

Wuchan Zhongda Group Co. Ltd., Class A

    1,755,603       1,121,993  
   

 

 

 
Diversified Consumer Services — 0.7%            

Koolearn Technology Holding Ltd.(a)(b)(c)

    1,562,000       7,912,749  

New Oriental Education & Technology Group Inc.(b)

    5,601,290       30,388,433  

Offcn Education Technology Co. Ltd., Class A(b)

    1,772,500       1,039,200  

TAL Education Group, ADR(b)

    1,690,695       11,919,400  
   

 

 

 
      51,259,782  
Diversified Telecommunication Services — 0.2%  

China Tower Corp. Ltd., Class H(a)

    162,220,000       15,695,108  
   

 

 

 
Security   Shares     Value  
Electrical Equipment — 1.0%            

Beijing Easpring Material Technology Co. Ltd., Class A

    204,400     $ 1,244,765  

Contemporary Amperex Technology Co. Ltd., Class A

    962,819        31,275,297  

Dongfang Electric Corp. Ltd., Class A

    752,400       1,733,912  

Eve Energy Co. Ltd., Class A

    510,036       3,461,228  

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

    1,337,647       1,071,568  

Ginlong Technologies Co. Ltd., Class A

    115,200       1,187,853  

Goldwind Science & Technology Co Ltd., Class A

    1,088,920       1,420,658  

Gotion High-tech Co. Ltd., Class A(b)

    455,892       1,516,511  

Hongfa Technology Co. Ltd., Class A

    250,891       1,211,361  

Jiangsu GoodWe Power Supply Technology Co. Ltd., NVS

    43,974       837,113  

Jiangsu Zhongtian Technology Co. Ltd., Class A

    836,000       1,673,787  

Jiangxi Special Electric Motor Co. Ltd., NVS(b)

    492,800       614,240  

Ming Yang Smart Energy Group Ltd., Class A

    501,752       1,028,861  

NARI Technology Co. Ltd., Class A

    1,839,854       6,015,649  

Ningbo Orient Wires & Cables Co. Ltd.

    230,331       1,170,547  

Ningbo Ronbay New Energy Technology Co. Ltd.

    110,180       771,520  

Pylon Technologies Co. Ltd., NVS

    44,710       849,513  

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

    3,845,600       2,359,851  

Shanghai Moons’ Electric Co. Ltd.

    83,600       755,285  

Sieyuan Electric Co. Ltd.

    252,400       1,774,173  

Sungrow Power Supply Co. Ltd., Class A

    357,800       4,904,813  

Sunwoda Electronic Co. Ltd., Class A

    501,608       1,091,450  

Suzhou Maxwell Technologies Co. Ltd., Class A

    56,947       1,193,373  

TBEA Co. Ltd., Class A

    1,305,134       2,636,819  

Zhejiang Chint Electrics Co. Ltd., Class A

    585,221       1,991,914  
   

 

 

 
      73,792,061  
Electronic Equipment, Instruments & Components — 1.2%  

AAC Technologies Holdings Inc.(c)

    2,926,000       5,667,811  

Avary Holding Shenzhen Co. Ltd., Class A

    460,600       1,351,456  

BOE Technology Group Co. Ltd., Class A

    9,279,600       5,110,409  

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

    555,777       2,450,198  

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

    139,500       1,756,833  

Foxconn Industrial Internet Co. Ltd., Class A

    2,257,286       6,785,637  

GoerTek Inc., Class A

    836,000       1,757,289  

Guangzhou Shiyuan Electronic Technology Co. Ltd., Class A

    167,219       1,223,859  

Hengdian Group DMEGC Magnetics Co. Ltd.

    464,500       1,046,548  

Huagong Tech Co. Ltd., Class A

    253,200       1,090,575  

Kingboard Holdings Ltd.

    2,517,000       5,711,694  

Kingboard Laminates Holdings Ltd.

    3,725,000       3,095,776  

Lens Technology Co. Ltd., Class A

    1,337,642       2,259,079  

Lingyi iTech Guangdong Co., Class A

    2,341,013       1,931,600  

Luxshare Precision Industry Co. Ltd., Class A

    1,588,641       7,197,236  

Maxscend Microelectronics Co. Ltd., Class A

    130,652       2,225,506  

Raytron Technology Co. Ltd., Class A

    70,314       494,862  

Shengyi Technology Co. Ltd., Class A

    501,600       1,021,057  

Shennan Circuits Co. Ltd., Class A

    101,224       920,281  

Shenzhen SED Industry Co. Ltd., NVS

    253,200       953,798  

Sunny Optical Technology Group Co. Ltd.

    2,592,700       21,169,873  

Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A

    418,000       1,078,787  

TCL Technology Group Corp., Class A(b)

    4,909,560       2,763,682  

Tianma Microelectronics Co. Ltd., Class A(b)

    1,003,236       1,185,223  

Unisplendour Corp. Ltd., Class A(b)

    705,927       2,611,499  

Westone Information Industry Inc., Class A

    223,100       765,868  

Wingtech Technology Co. Ltd., Class A(b)

    334,400       2,119,391  

 

 

32  

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


Schedule of Investments(continued)

August 31, 2023

  

iShares® MSCI China ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Electronic Equipment, Instruments & Components (continued)  

Wuhan Guide Infrared Co. Ltd., Class A

    1,557,964     $ 1,649,087  

WUS Printed Circuit Kunshan Co. Ltd., Class A

    419,618       1,216,310  

Xiamen Faratronic Co. Ltd.

    74,800       1,167,305  

Zhejiang Dahua Technology Co. Ltd., Class A

    755,600       2,241,709  

Zhejiang Supcon Technology Co. Ltd.

    198,469       1,374,240  
   

 

 

 
       93,394,478  
Energy Equipment & Services — 0.1%            

China Oilfield Services Ltd., Class H

    6,904,000       7,819,010  

Offshore Oil Engineering Co. Ltd., Class A

    1,288,198       1,032,170  

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

    334,492       1,313,582  
   

 

 

 
      10,164,762  
Entertainment — 2.9%            

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

    501,600       1,700,184  

Beijing Enlight Media Co. Ltd., Class A

    786,500       1,009,479  

Bilibili Inc.(b)(c)

    708,485       10,705,385  

China Film Co. Ltd., Class A(b)

    585,200       1,193,293  

China Ruyi Holdings Ltd.(b)(c)

    22,456,000       5,954,795  

Giant Network Group Co. Ltd., Class A

    590,000       1,183,624  

iQIYI Inc., ADR(b)

    1,671,092       8,422,304  

Kingsoft Corp. Ltd.

    3,513,400       14,004,195  

Kunlun Tech Co. Ltd., Class A(b)

    336,800       1,670,203  

Mango Excellent Media Co. Ltd., Class A

    501,680       2,037,581  

NetEase Inc.

    7,198,660       149,137,927  

Perfect World Co. Ltd., Class A

    522,000       990,631  

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

    2,679,598       18,274,858  

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

    1,839,298       1,369,810  
   

 

 

 
      217,654,269  
Financial Services — 0.1%            

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

    2,253,882       1,143,066  

Far East Horizon Ltd.

    5,472,000       3,738,305  
   

 

 

 
      4,881,371  
Food Products — 1.5%            

Angel Yeast Co. Ltd., Class A

    334,411       1,524,441  

Anjoy Foods Group Co. Ltd., Class A

    84,200       1,513,077  

China Feihe Ltd.(a)

    13,406,000       8,059,954  

China Mengniu Dairy Co. Ltd.

    12,103,000       40,695,933  

Chongqing Fuling Zhacai Group Co. Ltd., Class A

    435,109       951,431  

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

    1,002,545       5,396,887  

Guangdong Haid Group Co. Ltd., Class A

    452,097       2,995,427