February
28,
2023
iShares
Trust
iShares
ESG
Aware
MSCI
USA
ETF
|
ESGU
|
NASDAQ
iShares
ESG
Aware
MSCI
USA
Growth
ETF
|
EGUS
|
Cboe
BZX
iShares
ESG
Aware
MSCI
USA
Small-Cap
ETF
|
ESML
|
Cboe
BZX
iShares
ESG
Aware
MSCI
USA
Value
ETF
|
EVUS
|
Cboe
BZX
iShares
ESG
MSCI
USA
Leaders
ETF
|
SUSL
|
NASDAQ
iShares
Paris-Aligned
Climate
MSCI
USA
ETF
|
PABU
|
NASDAQ
2023
Semi-Annual
Report
(Unaudited)
Dear
Shareholder,
Significant
economic
headwinds
emerged
during
the
12-month
reporting
period
ended
February
28,
2023,
as
investors
navigated
changing
economic
conditions
and
volatile
markets.
The
U.S.
economy
shrank
in
the
first
half
of
2022
before
returning
to
modest
growth
in
the
second
half
of
the
year,
marking
a
shift
to
a
more
challenging
post-reopening
economic
environment.
Changes
in
consumer
spending
patterns
and
a
tight
labor
market
led
to
elevated
inflation,
which
reached
a
40-year
high
before
beginning
to
moderate.
Moreover,
while
the
foremost
effect
of
Russia’s
invasion
of
Ukraine
has
been
a
severe
humanitarian
crisis,
the
ongoing
war
continued
to
present
challenges
for
both
investors
and
policymakers.
Equity
prices
fell
as
interest
rates
rose,
particularly
during
the
first
half
of
the
reporting
period.
Both
large-
and
small-capitalization
U.S.
stocks
fell,
although
equities
began
to
recover
in
the
second
half
of
the
period
as
inflation
eased
and
economic
growth
resumed.
Emerging
market
stocks
and
international
equities
from
developed
markets
declined
overall,
pressured
by
rising
interest
rates
and
a
strong
U.S.
dollar.
The
10-year
U.S.
Treasury
yield
rose
notably
during
the
reporting
period,
driving
its
price
down,
as
investors
reacted
to
fluctuating
inflation
data
and
attempted
to
anticipate
its
impact
on
future
interest
rate
changes.
The
corporate
bond
market
also
faced
inflationary
headwinds,
and
higher
interest
rates
led
to
rising
borrowing
costs
for
corporate
issuers.
The
U.S.
Federal
Reserve
(the
“Fed”),
acknowledging
that
inflation
has
been
more
persistent
than
expected,
raised
interest
rates
eight
times.
Furthermore,
the
Fed
wound
down
its
bond-buying
programs
and
accelerated
the
reduction
of
its
balance
sheet.
Restricted
labor
supply
kept
inflation
elevated
even
as
other
inflation
drivers,
such
as
goods
prices
and
energy
costs,
moderated.
While
economic
growth
slowed
in
the
last
year,
we
believe
that
taming
inflation
requires
a
more
substantial
decline
that
lowers
demand
to
a
level
more
in
line
with
the
economy’s
productive
capacity.
Although
the
Fed
has
decelerated
the
pace
of
interest
rate
hikes,
it
still
seems
determined
to
get
inflation
back
to
target.
With
this
in
mind,
we
believe
the
possibility
of
a
U.S.
recession
in
the
near-term
is
high,
but
the
dimming
economic
outlook
has
not
yet
been
fully
reflected
in
current
market
prices.
We
believe
investors
should
expect
a
period
of
higher
volatility
as
markets
adjust
to
the
new
economic
reality
and
policymakers
attempt
to
adapt
to
rapidly
changing
conditions.
Turmoil
in
the
banking
sector
shortly
following
the
end
of
the
period
highlighted
the
potential
for
the
knock-on
effects
of
substantially
higher
interest
rates
to
disrupt
markets
with
little
warning.
While
we
favor
an
overweight
to
equities
in
the
long
term,
several
factors
lead
us
to
take
an
underweight
stance
on
equities
overall
in
the
near
term.
Expectations
for
corporate
earnings
remain
elevated,
which
seems
inconsistent
with
the
possibility
of
a
recession
in
a
business
environment
characterized
by
higher
costs
and
reduced
pricing
power.
Nevertheless,
we
are
overweight
on
emerging
market
stocks
as
a
weaker
U.S.
dollar
provides
a
supportive
backdrop.
We
also
see
long-term
opportunities
in
credit,
where
valuations
are
appealing
and
higher
yields
provide
attractive
income,
although
we
are
neutral
on
credit
in
the
near
term,
as
we
believe
that
troubles
in
the
banking
sector
will
likely
lead
to
reduced
lending.
However,
we
believe
there
are
still
some
strong
opportunities
for
a
six-
to
twelve-month
horizon,
particularly
short-term
U.S.
Treasuries,
global
inflation-linked
bonds,
and
emerging
market
bonds
denominated
in
local
currency.
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.
Sincerely,
Rob
Kapito
President,
BlackRock,
Inc.
The
Markets
in
Review
Rob
Kapito
President,
BlackRock,
Inc.
Total
Returns
as
of
February
28,
2023
Past
performance
is
not
an
indication
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
1.26%
(7.69)%
U.S.
small
cap
equities
(Russell
2000
®
Index)
3.63
(6.02)
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
12.58
(3.14)
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
(2.29)
(15.28)
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
1.74
2.11
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
(4.81)
(14.06)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
(2.13)
(9.72)
Tax-exempt
municipal
bonds
(Bloomberg
Municipal
Bond
Index)
0.66
(5.10)
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
2.52
(5.45)
2
This
Page
is
not
Part
of
Your
Fund
Report
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Semi-Annual
Report:
Fund
Summary
........................................................................................................
4
About
Fund
Performance
..................................................................................................
10
Disclosure
of
Expenses
...................................................................................................
10
Schedules
of
Investments
.................................................................................................
11
Financial
Statements:
Statements
of
Assets
and
Liabilities
.........................................................................................
47
Statements
of
Operations
................................................................................................
49
Statements
of
Changes
in
Net
Assets
........................................................................................
51
Financial
Highlights
.....................................................................................................
54
Notes
to
Financial
Statements
...............................................................................................
60
Board
Review
and
Approval
of
Investment
Advisory
Contract
...........................................................................
68
Statement
Regarding
Liquidity
Risk
Management
Program
.............................................................................
70
General
Information
.....................................................................................................
71
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
72
iShares
®
ESG
Aware
MSCI
USA
ETF
4
2023
iShares
Semi-Annual
Report
to
Shareholders
Fund
Summary
as
of
February
28,
2023
Investment
Objective
The
iShares
ESG
Aware
MSCI
USA
ETF
(the
“Fund”)
seeks
to
track
the
investment
results
of
an
index
composed
of
U.S.
companies
that
have
positive
environmental,
social
and
governance
characteristics,
as
identified
by
the
index
provider
while
exhibiting
risk
and
return
characteristics
similar
to
those
of
the
parent
index,
as
represented
by
the
MSCI
USA
Extended
ESG
Focus
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
The
inception
date
of
the
Fund
was
December
1,
2016.
The
first
day
of
secondary
market
trading
was
December
2,
2016.
Index
performance
through
May
31,
2018
reflects
the
performance
of
the
MSCI
USA
ESG
Focus
Index.
Index
performance
beginning
on
June
1,
2018
reflects
the
performance
of
the
MSCI
USA
Extended
ESG
Focus
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
Information
Average
Annual
Total
Returns
Cumulative
Total
Returns
6-Month
Total
Returns
1
Year
5
Years
Since
Inception
1
Year
5
Years
Since
Inception
Fund
NAV
...................
0.68
%
(9.11
)
%
9.83
%
11.92
%
(9.11
)
%
59.82
%
102.02
%
Fund
Market
.................
0.51
(9.12
)
9.80
11.90
%
(9.12
)
59.62
101.84
Index
......................
0.75
(8.98
)
10.00
12.11
(8.98
)
61.06
104.27
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(09/01/22)
Ending
Account
Value
(02/28/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(09/01/22)
Ending
Account
Value
(02/28/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
$
1,000.00
$
1,006.80
$
0.75
$
1,000.00
$
1,024.05
$
0.75
0.15
%
(a)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(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.
SECTOR
ALLOCATION
Sector
Percent
of
Total
Investments
(a)
Information
Technology
............................
28.6‌
%
Health
Care
...................................
14.3‌
Financials
.....................................
10.6‌
Consumer
Discretionary
...........................
10.2‌
Industrials
.....................................
9.3‌
Consumer
Staples
...............................
6.9‌
Communication
Services
...........................
6.8‌
Energy
.......................................
4.9‌
Real
Estate
....................................
3.0‌
Materials
.....................................
2.9‌
Utilities
.......................................
2.5‌
a
a
(a)
Excludes
money
market
funds.
TEN
LARGEST
HOLDINGS
Security
Percent
of
Total
Investments
(a)
Apple,
Inc.
....................................
6.5‌
%
Microsoft
Corp.
.................................
5.3‌
Amazon.com,
Inc.
...............................
2.4‌
NVIDIA
Corp.
..................................
1.7‌
Tesla,
Inc.
.....................................
1.6‌
Alphabet,
Inc.,
Class
C,
NVS
........................
1.4‌
Alphabet,
Inc.,
Class
A
............................
1.4‌
UnitedHealth
Group,
Inc.
...........................
1.4‌
JPMorgan
Chase
&
Co.
...........................
1.2‌
Coca-Cola
Co.
(The)
.............................
1.2‌
      aaa
aa
iShares
®
ESG
Aware
MSCI
USA
Growth
ETF
5
Fund
Summary
Fund
Summary
as
of
February
28,
2023
Investment
Objective
The
iShares
ESG
Aware
MSCI
USA Growth
ETF
(the
“Fund”)
seeks
to
track
the
investment
results
of
an
index
composed
of
U.S.
large-
and
mid-capitalization
equities
that
exhibit
growth
characteristics
as
well
as
positive
environmental,
social
and
governance
characteristics,
as represented
by
the
MSCI
USA
Growth
Extended
ESG
Focus
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
The
inception
date
of
the
Fund
was
January
31,
2023.
The
first
day
of
secondary
market
trading
was
February
2,
2023.
Past
performance
is
not
an
indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
fund
distributions
or
on
the
redemption
or
sale
of
fund
shares.
See
“About
Fund
Performance”
for
more
information.
Expense
Example
Portfolio
Information
Cumulative
Total
Returns
Since
Inception
Fund
NAV
.......................................................................................................
(1.50
)
%
Fund
Market
.....................................................................................................
%
(1.38
)
Index
..........................................................................................................
(1.46
)
Actual
Hypothetical
5%
Return
Beginning
Account
Value
(01/31/23)
(a)
Ending
Account
Value
(02/28/23)
Expenses
Paid
During
the
Period
(b)
Beginning
Account
Value
(09/01/22)
Ending
Account
Value
(02/28/23)
Expenses
Paid
During
the
Period
(b)
Annualized
Expense
Ratio
$
1,000.00
$
985.00
$
0.14
$
1,000.00
$
1,023.90
$
0.90
0.18
%
(a)
Commencement
of
operations.
(b)
Expenses
are
equal
to
the
annualized
expense
ratio,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
28/365
for
actual
expenses
and
181/365
for
hypothetical
expenses
(to
reflect
the
six
month
period
shown).
Other
fees,
such
as
brokerage
commissions
and
other
fees
to
financial
intermediaries,
may
be
paid
which
are
not
reflected
in
the
tables
and
examples
above.
See
“Disclosure
of
Expenses”
for
more
information.
SECTOR
ALLOCATION
Sector
Percent
of
Total
Investments
(a)
Information
Technology
............................
46.1‌
%
Consumer
Discretionary
...........................
15.3‌
Health
Care
...................................
11.6‌
Communication
Services
...........................
9.7‌
Industrials
.....................................
6.1‌
Financials
.....................................
3.2‌
Consumer
Staples
...............................
2.5‌
Real
Estate
....................................
2.3‌
Energy
.......................................
1.7‌
Materials
.....................................
1.5‌
a
a
(a)
Excludes
money
market
funds.
TEN
LARGEST
HOLDINGS
Security
Percent
of
Total
Investments
(a)
Apple,
Inc.
....................................
12.8‌
%
Microsoft
Corp.
.................................
10.9‌
Amazon.com,
Inc.
...............................
4.9‌
NVIDIA
Corp.
..................................
3.5‌
Tesla,
Inc.
.....................................
3.2‌
Alphabet,
Inc.,
Class
A
............................
2.8‌
Alphabet,
Inc.,
Class
C,
NVS
........................
2.6‌
Home
Depot,
Inc.
(The)
...........................
2.2‌
Visa,
Inc.,
Class
A
...............................
2.0‌
Mastercard,
Inc.,
Class
A
...........................
1.7‌
      aaa
aa
iShares
®
ESG
Aware
MSCI
USA
Small-Cap
ETF
6
2023
iShares
Semi-Annual
Report
to
Shareholders
Fund
Summary
as
of
February
28,
2023
Investment
Objective
The
iShares
ESG
Aware
MSCI
USA
Small-Cap
ETF
(the
“Fund”)
seeks
to
track
the
investment
results
of
an
optimized
index
designed
to
produce
investment
results
comparable
to
a
capitalization
weighted
index
of
small-capitalization
U.S.
companies,
while
reflecting
a
higher
allocation
to
those
companies
with
favorable
environmental,
social
and
governance
(“ESG”)
profiles
(as
determined
by
the
index
provider),
as
represented
by
the
MSCI
USA
Small
Cap
Extended
ESG
Focus
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
The
inception
date
of
the
Fund
was
April
10,
2018.
The
first
day
of
secondary
market
trading
was
April
12,
2018.
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
Information
Average
Annual
Total
Returns
Cumulative
Total
Returns
6-Month
Total
Returns
1
Year
Since
Inception
1
Year
Since
Inception
Fund
NAV
...............................................
6.71
%
(3.52
)
%
8.49
%
(3.52
)
%
48.94
%
Fund
Market
.............................................
6.66
(3.59
)
8.50
%
(3.59
)
49.00
Index
..................................................
6.75
(3.52
)
8.62
(3.52
)
49.78
Actual
Hypothetical
5%
Return
Beginning
Account
Value