iShares Trust

· iShares 0-5 Year Investment Grade Corporate Bond ETF | SLQD | NASDAQ

· iShares Aaa  - A Rated Corporate Bond ETF | QLTA | NYSE Arca

· iShares BB Rated Corporate Bond ETF | HYBB | NYSE Arca

· iShares Convertible Bond ETF | ICVT | Cboe BZX

· iShares Floating Rate Bond ETF | FLOT | Cboe BZX

· iShares USD Green Bond ETF | BGRN | NASDAQ

Table of Contents

Market Overview

iShares Trust

U.S. Bond Market Overview

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

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

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

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

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

Investment Objective

The iShares 0-5 Year Investment Grade Corporate Bond ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated, investment-grade corporate bonds with remaining maturities of less than five years, as represented by the Markit iBoxx^® USD Liquid Investment Grade 0-5 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

High quality corporate bonds with shorter maturities experienced meaningful positive returns over the 12-month period, despite the continued rise in Treasury yields which weighed on broader bond market performance.

Given continued strength in economic growth and inflation that remained above its 2% target, the U.S. Federal Reserve (the Fed) raised its benchmark overnight lending rate six times over the course of the 12-month period, bringing the fed funds target from a range of 3.0-3.25% to 5.25%-5.50%. In addition, the Fed indicated that rates were likely to stay “higher for longer”. The U.S. government’s mounting debt load and need for greater Treasury issuance also weighed on bond market sentiment. Against this backdrop, Treasury yields finished the period higher across the maturity spectrum. To illustrate, the two-year Treasury yield rose from 4.48% to 5.09% while the 10-year yield rose from 4.05% to 4.93%

Investment grade corporate bonds experienced positive returns in aggregate, as the sector is less interest rate-sensitive relative to Treasuries. In addition, corporate issues trade at a yield advantage versus Treasuries and their prices broadly were supported by a narrowing in spreads over the period.

Returns for investment grade corporate bonds with maturities of five years or less exceeded those for their longer-term counterparts given their lower interest rate sensitivity. In addition, an inverted yield curve eliminated the traditional income advantage for longer maturity bonds. In terms of credit quality, lower-rated issues in the Moody’s A and Baa rating categories led performance within the Index and accounted for the great majority of the positive return due to their significant weights within the Index. All maturity segments within the Index finished well into positive territory, with positive contributions led by the 1 to 3 year segment which comprises the largest weight within the Index.

Portfolio Information

Investment Objective

The iShares Aaa - A Rated Corporate Bond ETF (the “Fund”) seeks to track the investment results of an index composed of Aaa to A, or equivalently rated, fixed rate U.S. dollar-denominated bonds issued by U.S. and non-U.S. corporations, as represented by the Bloomberg U.S. Corporate Aaa - A 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

(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

Despite the backdrop of rising interest rates, returns for corporate bonds rated Aaa to A were positive for the reporting period.

Given continued strength in economic growth and inflation that remained above its 2% target, the U.S. Federal Reserve (the Fed) raised its benchmark overnight lending rate six times over the course of the 12-month period, bringing the fed funds target from a range of 3.0-3.25% to 5.25%-5.50%. In addition, the Fed indicated that rates were likely to stay “higher for longer”. The U.S. government’s mounting debt load and need for greater Treasury issuance also weighed on bond market sentiment. Against this backdrop, Treasury yields finished the period higher across the maturity spectrum. To illustrate, the two-year Treasury yield rose from 4.48% to 5.09% while the 10-year yield rose from 4.05% to 4.93%

Performance for corporate bonds generally benefited as the sector is less interest rate-sensitive relative to Treasuries. In addition, corporate issues trade at a yield advantage versus Treasuries and their prices broadly were supported by a narrowing in spreads over the period.

Bonds rated A accounted for the great majority of the Index’s positive return as they outperformed their higher-rated counterparts and also constitute the heaviest weight within the Index by a wide margin. In terms of maturities, bonds with maturities in the 2-7 year range led contributions given their lower interest rate sensitivity. In addition, an inverted yield curve eliminated the traditional income advantage for longer maturity bonds. Bonds with maturities greater than 10 years were the biggest laggards given the rise in Treasury yields seen during the period.

Portfolio Information

Investment Objective

The iShares BB Rated Corporate Bond ETF (the “Fund”) seeks to track the investment results of an index composed of BB (or its equivalent) fixed rate U.S. dollar-denominated bonds issued by U.S. and non-U.S. corporate issuers, as represented by the ICE BofA BB US High Yield Constrained 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 ASSET VALUE)

The inception date of the Fund was October 6, 2020. The first day of secondary market trading was October 8, 2020.

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

Given continued strength in economic growth and inflation that remained above its 2% target, the U.S. Federal Reserve (the Fed) raised its benchmark overnight lending rate six times over the course of the 12-month period, bringing the fed funds target from a range of 3.0-3.25% to 5.25%-5.50%. In addition, the Fed indicated that rates were likely to stay “higher for longer”. The U.S. government’s mounting debt load and need for greater Treasury issuance also weighed on bond market sentiment. Against this backdrop, Treasury yields finished the period higher across the maturity spectrum. To illustrate, the two-year Treasury yield rose from 4.51% to 5.07% while the 10-year yield rose from 4.10% to 4.88%.

Investment grade and high yield corporate bonds experienced positive returns in aggregate over the period, as performance for both sectors was supported by a relative lack of interest rate sensitivity. In addition, corporate bonds trade at a yield advantage versus Treasuries and their prices broadly were supported by a narrowing of spreads over the period. BB-rated bonds outperformed their higher quality, investment grade counterparts due to their higher yields and lower interest rate sensitivity in a rising rate environment. In sector terms, positive contributions to Index performance were led by industrials, most notably the consumer cyclical and energy segments. All maturity segments within the Index contributed positively to performance, led by bonds with maturities in the 7-10 year range.

Portfolio Information

Investment Objective

The iShares Convertible Bond ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated convertible securities, specifically cash pay bonds, with outstanding issue sizes greater than $250 million, as represented by the Bloomberg U.S. Convertible Cash Pay Bond greater than $250MM 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 ASSET VALUE)

The inception date of the Fund was June 2, 2015. The first day of secondary market trading was June 4, 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

U.S. dollar-denominated convertible bonds experienced modest positive performance over the reporting period, supported by a rise in equity prices. Convertible bonds are hybrid securities that have features of both debt and equity. The bonds represented in the Index pay interest on a periodic basis, similar to standard corporate bonds, but they also have an equity conversion feature and can be redeemed for shares of the issuer’s stock. Due to their convertibility feature, these securities are correlated with stocks but may have less volatility given their fixed-income component.

Given continued strength in economic growth and inflation that remained above its 2% target, the U.S. Federal Reserve (the Fed) raised its benchmark overnight lending rate six times over the course of the 12-month period, bringing the fed funds target from a range of 3.0-3.25% to 5.25%-5.50%. In addition, the Fed indicated that rates were likely to stay “higher for longer”. The U.S. government’s mounting debt load and need for greater Treasury issuance also weighed on bond market sentiment. Against this backdrop, Treasury yields finished the period higher across the maturity spectrum. To illustrate, the two-year Treasury yield rose from 4.48% to 5.09% while the 10-year yield rose from 4.05% to 4.93%.

Throughout the period, the shifting outlook for interest rate policy led to significant volatility for risk assets including convertible securities. The prospect of a higher interest rate regime for an extended period constrained performance for assets with more distant cash flows, such the type of growth company heavily represented in the convertible market. Nonetheless, convertibles managed to post a modest positive return for the 12 months.

Much of the convertible universe is unrated, and unrated issues accounted for the great majority of the Index’s positive return. In sector terms, technology issues are the largest Index constituent and the sector accounted for nearly half of the Index return. The leisure and retail segments within the consumer cyclical sector were also significant sources of strength as consumer spending remained robust. Finally, energy issues contributed meaningfully as well as oil and gas prices rose over the second half of the period..

Portfolio Information

Investment Objective

The iShares Floating Rate Bond ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated, investment-grade floating rate bonds with remaining maturities between one month and five years, as represented by the Bloomberg US Floating Rate Note<5 Years 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

Investment-grade floating-rate bonds posted a strong positive performance for the reporting period, as investors benefited from their relative price stability in a rising interest rate environment and their coupons adjusted upwards with changes in short-term rates.

Given continued strength in economic growth and inflation that remained above its 2% target, the U.S. Federal Reserve (the Fed) raised its benchmark overnight lending rate six times over the course of the 12-month period, bringing the fed funds target from a range of 3.0-3.25% to 5.25%-5.50%. In addition, the Fed indicated that rates were likely to stay “higher for longer”. The U.S. government’s mounting debt load and need for greater Treasury issuance also weighed on bond market sentiment. Against this backdrop, Treasury yields finished the period higher across the maturity spectrum. To illustrate, the two-year Treasury yield rose from 4.48% to 5.09% while the 10-year yield rose from 4.05% to 4.93%.

The Index principally comprises U.S. dollar-denominated bonds with coupons that reset periodically. Floating rate bonds are generally attractive to investors in a rising interest-rate environment because their coupon rates adjust to reflect shifts in short-term interest rates. As a result their prices are not as sensitive to changing interest rates. That said, prices for floating rate bonds can fluctuate based on changes in the economic outlook and credit sentiment, as a weaker economy can impact the ability of companies to service their debts.

In quality terms, bonds rated A led positive contributions to Index return as this segment comprises the largest weight within the Index and benefited from higher yields and a narrowing of credit spreads.

Portfolio Information

Investment Objective

The iShares USD Green Bond ETF (the “Fund”) seeks to track the investment results of an index composed of U.S.dollar-denominated investment-grade green bonds that are issued by U.S. and non-U.S. issuers to fund environmental projects, as represented by Bloomberg MSCI USD Green Bond Select Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index

Performance

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 11/13/18. The first day of secondary market trading was 11/15/18.

Index performance through February 28, 2022 reflects the performance of the Bloomberg MSCI Global Green Bond Select (USD Hedged) Index. Index performance beginning on March 1, 2022 reflects the performance of the Bloomberg MSCI USD Green Bond Select 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

The proceeds of green bonds are exclusively applied to projects or activities that promote climate or other environmental sustainability purposes. Projects financed using green bonds can include investments in climate change mitigation, climate change adaptation, natural resource conservation, biodiversity conservation, and pollution prevention and control, among other project categories as outlined by ICMA Green Bond Principles.

After plummeting in the second half of 2022, green bond issuance was robust during the period. To illustrate, sales of green bonds in the first half of 2023 were more than 20% higher compared to the same period in 2022, and exceeded the previous record for any half calendar year. Both corporate and sovereign issuances staged a recovery. According to data from Climate Bonds Initiative, green bond issuance is expected to exceed US$500 billion in 2023, with USD green bonds comprising ~US$120 billion of this issuance. This surpasses the 2022 USD green bond issuance at ~US$113 billion

The Index had a positive return for the period despite a volatile geopolitical backdrop, U.S. Federal Reserve interest rate hikes and a rise in U.S. Treasury yields. Given continued strength in economic growth and inflation that remained above its 2% target, the U.S. Federal Reserve (the Fed) raised its benchmark overnight lending rate six times over the course of the 12-month period, bringing the fed funds target from a range of 3.0-3.25% to 5.25%-5.50%, and indicated that rates were likely to stay “higher for longer”. The U.S. government’s mounting debt load and need for greater Treasury issuance also weighed on bond market sentiment. Against this backdrop, Treasury yields finished the period higher across the maturity spectrum.

The index is less interest rate-sensitive relative to a comparable Treasury index. In addition, corporate issues offer additional spread above Treasury yields and their prices broadly were supported by a narrowing in this spread over the period. Viewed by credit quality, holdings of bonds rated Baa by Moody’s, the lowest investment grade rating, had the biggest positive impact on return given the narrowing of credit spreads. In terms of bond maturities, all segments were comfortably in positive territory except for issues with maturities of 10 years which had an essentially flat return.

Portfolio Information

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.