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

Table of Contents

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.

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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

Past performance is 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

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

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

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSETVALUE)

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

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

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

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSETVALUE)

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

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

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