|
OCTOBER 31, 2021 |
2021 Annual Report |
iShares Trust
· |
iShares iBonds Dec 2021 Term Treasury ETF | IBTA | NASDAQ |
· |
iShares iBonds Dec 2022 Term Treasury ETF | IBTB | NASDAQ |
· |
iShares iBonds Dec 2023 Term Treasury ETF | IBTD | NASDAQ |
· |
iShares iBonds Dec 2024 Term Treasury ETF | IBTE | NASDAQ |
· |
iShares iBonds Dec 2025 Term Treasury ETF | IBTF | NASDAQ |
· |
iShares iBonds Dec 2026 Term Treasury ETF | IBTG | NASDAQ |
· |
iShares iBonds Dec 2027 Term Treasury ETF | IBTH | NASDAQ |
· |
iShares iBonds Dec 2028 Term Treasury ETF | IBTI | NASDAQ |
· |
iShares iBonds Dec 2029 Term Treasury ETF | IBTJ | NASDAQ |
· |
iShares iBonds Dec 2030 Term Treasury ETF | IBTK | NASDAQ |
· |
iShares iBonds Dec 2031 Term Treasury ETF | IBTL | NASDAQ |
Dear Shareholder,
The 12-month reporting period as of October 31, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. The United States began the reporting period as the initial reopening-led economic rebound was beginning to slow. Nonetheless, the economy continued to grow at a solid pace for the reporting period, eventually regaining the output lost from the pandemic. However, a rapid rebound in consumer spending pushed up against supply constraints and led to elevated inflation.
Equity prices rose with the broader economy, as the implementation of mass vaccination campaigns and passage of two additional fiscal stimulus packages further boosted stocks, and many equity indices neared or surpassed all-time highs late in the reporting period. In the United States, returns of small-capitalization stocks, which benefited the most from the resumption of in-person activities, outpaced large-capitalization stocks. International equities also gained, as both developed and emerging markets continued to recover from the effects of the pandemic.
The 10-year U.S. Treasury yield (which is inversely related to bond prices) had fallen sharply prior to the beginning of the reporting period, which meant bonds were priced for extreme risk avoidance and economic disruption. Despite expectations of doom and gloom, the economy expanded rapidly, stoking inflation concerns in early 2021, which led to higher yields and a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and led to solid returns for high-yield corporate bonds, outpacing investment-grade corporate bonds.
The Fed remained committed to accommodative monetary policy by maintaining near-zero interest rates and by reiterating that inflation could exceed its 2% target for a sustained period without triggering a rate increase. In response to rising inflation late in the period, the Fed changed its market guidance, raising the possibility of higher rates in 2022 and reducing bond purchasing beginning in late 2021.
Looking ahead, we believe that the global expansion will continue to broaden as Europe and other developed market economies gain momentum, although the Delta variant of the coronavirus remains a threat, particularly in emerging markets. While we expect inflation to remain elevated in the medium-term as the expansion continues, we believe the recent uptick owes more to temporary supply disruptions than a lasting change in fundamentals. The change in Fed policy also means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the economic expansion.
Overall, we favor a moderately positive stance toward risk, with an overweight in equities. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long-term. U.S. small-capitalization stocks and European equities are likely to benefit from the continuing vaccine-led restart, while Chinese equities stand to gain from a more accommodative monetary and fiscal environment as the Chinese economy slows. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.
In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, 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.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of October 31, 2021 | ||||
6-Month | 12-Month | |||
U.S.
large cap equities |
10.91% | 42.91% | ||
U.S.
small cap equities |
1.85 | 50.80 | ||
International
equities |
4.14 | 34.18 | ||
Emerging
market equities |
(4.87) | 16.96 | ||
3-month
Treasury bills |
0.01 | 0.06 | ||
U.S.
Treasury securities |
1.59 | (4.77) | ||
U.S. investment grade bonds (Bloomberg U.S. Aggregate Bond Index) |
1.06 | (0.48) | ||
Tax-exempt municipal bonds (S&P Municipal Bond Index) |
0.33 | 2.76 | ||
U.S.
high yield bonds |
2.36 | 10.53 | ||
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 E I S N O T P A R T O F Y O U R F U N D R E P O R T |
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27 | ||||
Financial Statements |
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61 | ||||
69 | ||||
70 | ||||
71 | ||||
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78 |
iShares Trust
U.S. Treasury Bond Market Overview
Short- and intermediate-term U.S. Treasuries declined for the 12 months ended October 31, 2021 (“reporting period”). The ICE Bank of America 1 – 10 year U.S. Treasury Index, which tracks short- and intermediate-maturity U.S. Treasuries, returned -1.48%.
The U.S. economy continued to recover from the effects of the coronavirus pandemic, growing at a brisk pace during the reporting period. Driven by strong consumer spending and significant fiscal and monetary stimulus, U.S. growth outpaced most other developed economies. An ongoing COVID-19 vaccination program helped accelerate the easing of pandemic-related restrictions, and consumers returned to activities that were previously curtailed, such as travel, restaurant dining, and in-person shopping. Spending on goods also remained elevated, leading imports to rise to an all-time high.
However, this robust consumer demand combined with continued pandemic-related disruptions to the global supply chain led to significantly higher inflation. Similarly, in the labor market, the reopening economy and pent-up demand meant that hiring accelerated, and the unemployment rate fell substantially. Nonetheless, total employment remained notably below pre-pandemic levels and job openings reached a record high despite rising wages. Elevated demand drove an increase in industrial production, although rising commodities prices and supply delays constrained growth, particularly late in the reporting period. The emergence of the highly contagious Delta variant, which was responsible for a significant rise in cases beginning late in summer 2021, also weighed on the economy.
The U.S. Federal Reserve Bank (“Fed”) continued to keep short-term interest rates at near-zero levels and maintained a significant bond-buying program for U.S. Treasuries and mortgage-backed securities, although it discontinued its corporate bond purchasing program. The Fed indicated that it would begin slowing its bond buying activities late in 2021 and signaled that an interest rate increase could be possible in 2022. However, the improving employment environment and a sharp rise in inflation led investors to anticipate a more accelerated tightening of monetary policy. Trading activity showed that investors view multiple interest rate increases as probable in 2022.
U.S. Treasuries declined as inflation increased and investors shifted toward equities and lower-rated bonds. Rising domestic inflation expectations pressured U.S. Treasuries, which typically lose value in an inflationary environment. U.S. Treasury yields (which move inversely to prices) began the reporting period near historic lows, but generally rose as inflation increased and the economy continued to strengthen. Yields of U.S. Treasuries with intermediate-term maturities, which are more sensitive to inflation, generally increased more than short-term U.S. Treasuries. The three-month U.S. Treasury yield declined modestly from 0.09% to 0.05%, while the two-year U.S. Treasury yield rose from 0.14% to 0.48%. Intermediate-term U.S. Treasury yields rose at a faster rate, with the 10-year U.S. Treasury yield increasing from 0.88% to 1.55%.
The more rapid growth of longer-dated U.S. Treasury yields meant that the yield curve (a graphical representation of U.S. Treasury yields at different maturities) steepened, particularly in the first half of the reporting period, driven by fiscal stimulus and investors’ expectations that the U.S. economy will continue to expand. However, concerns about slowing growth and the potential impact of the Delta variant flattened the yield curve late in the reporting period, partially reversing its earlier trend. As investors began to anticipate earlier interest rate increases from the Fed, shorter-term U.S. Treasury yields rose.
U.S. Treasury issuance declined slightly from record issuance in 2020 but was still greatly elevated by historical standards. The substantial issuance accompanied heavy deficit spending, in part to finance multiple additional rounds of fiscal stimulus.
4 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of October 31, 2021 | iShares® iBonds® Dec 2021 Term Treasury ETF |
Investment Objective
The iShares iBonds Dec 2021 Term Treasury ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. Treasury bonds maturing in 2021, as represented by the ICE 2021 Maturity US Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year |
Since Inception |
1 Year | Since Inception |
|||||||||||||||||
Fund NAV |
0.06 | % | 0.97 | % | 0.06 | % | 1.65 | % | ||||||||||||
Fund Market |
0.06 | 0.97 | 0.06 | 1.64 | ||||||||||||||||
Index |
0.11 | 1.04 | 0.11 | 1.75 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 2/25/20. The first day of secondary market trading was 2/27/20.
On 3/1/2021 the Fund began to track the 4pm pricing variant of the ICE 2021 Maturity US Treasury Index. Historical index data prior to 3/1/2021 is for the 3pm pricing variant of the ICE 2021 Maturity US Treasury Index. Index data on and after 3/1/2021 is for the 4pm pricing variant of the ICE 2021 Maturity US Treasury Index.
Past performance is no guarantee 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” on page 26 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ 1,000.00 | $ 1,000.00 | $ 0.15 | $ 1,000.00 | $ 1,025.10 | $ 0.15 | 0.03 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 26 for more information. |
F U N D S U M M A R Y |
5 |
Fund Summary as of October 31, 2021 (continued) | iShares® iBonds® Dec 2021 Term Treasury ETF |
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Ratings* | Percent of Net Assets |
|||
Aaa |
18.5 | % | ||
Short-Term and Other Assets |
81.5 |
FIVE LARGEST HOLDINGS
Security(a) | Percent of Net Assets |
|||
U.S. Treasury Note/Bond, 8.00%, 11/15/21 |
10.6% | |||
U.S. Treasury Note/Bond, 1.50%, 11/30/21 |
7.0 | |||
U.S. Treasury Bill, 0.04%, 12/02/21 |
0.9 |
* |
Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) |
Excludes money market funds. |
6 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of October 31, 2021 | iShares® iBonds® Dec 2022 Term Treasury ETF |
Investment Objective
The iShares iBonds Dec 2022 Term Treasury ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. Treasury bonds maturing in 2022, as represented by the ICE 2022 Maturity US Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year | Since Inception |
1 Year | Since Inception |
|||||||||||||||||
Fund NAV |
0.09 | % | 1.48 | % | 0.09 | % | 2.50 | % | ||||||||||||
Fund Market |
0.13 | 1.52 | 0.13 | 2.58 | ||||||||||||||||
Index |
0.17 | 1.57 | 0.17 | 2.65 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 2/25/20. The first day of secondary market trading was 2/27/20.
On 3/1/2021 the Fund began to track the 4pm pricing variant of the ICE 2022 Maturity US Treasury Index. Historical index data prior to 3/1/2021 is for the 3pm pricing variant of the ICE 2022 Maturity US Treasury Index. Index data on and after 3/1/2021 is for the 4pm pricing variant of the ICE 2022 Maturity US Treasury Index.
Past performance is no guarantee 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” on page 26 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ 1,000.00 | $ 999.70 | $ 0.35 | $ 1,000.00 | $ 1,024.90 | $ 0.36 | 0.07 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 26 for more information. |
F U N D S U M M A R Y |
7 |
Fund Summary as of October 31, 2021 (continued) | iShares® iBonds® Dec 2022 Term Treasury ETF |
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Ratings* | Percent of Net Assets |
|||
Aaa |
96.3 | % | ||
Short-Term and Other Assets |
3.7 |
FIVE LARGEST HOLDINGS
Security(a) | Percent of Net Assets |
|||
U.S. Treasury Note/Bond, 1.75%, 09/30/22 |
18.0 | % | ||
U.S. Treasury Note/Bond, 1.38%, 01/31/22 |
11.3 | |||
U.S. Treasury Note/Bond, 2.50%, 02/15/22 |
11.2 | |||
U.S. Treasury Note/Bond, 1.75%, 06/30/22 |
9.9 | |||
U.S. Treasury Note/Bond, 2.00%, 10/31/22 |
8.7 |
* |
Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) |
Excludes money market funds. |
8 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of October 31, 2021 | iShares® iBonds® Dec 2023 Term Treasury ETF |
Investment Objective
The iShares iBonds Dec 2023 Term Treasury ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. Treasury bonds maturing in 2023, as represented by the ICE 2023 Maturity US Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year | Since Inception |
1 Year | Since Inception |
|||||||||||||||||
Fund NAV |
(0.30 | )% | 1.74 | % | (0.30 | )% | 2.94 | % | ||||||||||||
Fund Market |
(0.26 | ) | 1.78 | (0.26 | ) | 3.02 | ||||||||||||||
Index |
(0.20 | ) | 1.82 | (0.20 | ) | 3.07 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 2/25/20. The first day of secondary market trading was 2/27/20.
On 3/1/2021 the Fund began to track the 4pm pricing variant of the ICE 2023 Maturity US Treasury Index. Historical index data prior to 3/1/2021 is for the 3pm pricing variant of the ICE 2023 Maturity US Treasury Index. Index data on and after 3/1/2021 is for the 4pm pricing variant of the ICE 2023 Maturity US Treasury Index.
Past performance is no guarantee 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” on page 26 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ 1,000.00 | $ 996.90 | $ 0.35 | $ 1,000.00 | $ 1,024.90 | $ 0.36 | 0.07 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 26 for more information. |
F U N D S U M M A R Y |
9 |
Fund Summary as of October 31, 2021 (continued) | iShares® iBonds® Dec 2023 Term Treasury ETF |
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Ratings* | Percent of Net Assets |
|||
Aaa |
98.6 | % | ||
Short-Term and Other Assets |
1.4 |
FIVE LARGEST HOLDINGS
Security(a) | Percent of Net Assets |
|||
U.S. Treasury Note/Bond, 2.38%, 01/31/23 |
23.1 | % | ||
U.S. Treasury Note/Bond, 2.50%, 08/15/23 |
18.8 | |||
U.S. Treasury Note/Bond, 2.75%, 05/31/23 |
18.3 | |||
U.S. Treasury Note/Bond, 2.88%, 11/30/23 |
13.2 | |||
U.S. Treasury Note/Bond, 2.75%, 07/31/23 |
12.2 |
* |
Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) |
Excludes money market funds. |
10 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of October 31, 2021 | iShares® iBonds® Dec 2024 Term Treasury ETF |
Investment Objective
The iShares iBonds Dec 2024 Term Treasury ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. Treasury bonds maturing in 2024, as represented by the ICE 2024 Maturity US Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year |
Since Inception |
1 Year |
Since Inception |
|||||||||||||||||
Fund NAV |
(0.90 | )% | 1.78 | % | (0.90 | )% | 3.01 | % | ||||||||||||
Fund Market |
(0.90 | ) | 1.80 | (0.90 | ) | 3.05 | ||||||||||||||
Index |
(0.86 | ) | 1.83 | (0.86 | ) | 3.09 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 2/25/20. The first day of secondary market trading was 2/27/20.
On 3/1/2021 the Fund began to track the 4pm pricing variant of the ICE 2024 Maturity US Treasury Index. Historical index data prior to 3/1/2021 is for the 3pm pricing variant of the ICE 2024 Maturity US Treasury Index. Index data on and after 3/1/2021 is for the 4pm pricing variant of the ICE 2024 Maturity US Treasury Index.
Past performance is no guarantee 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” on page 26 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ 1,000.00 | $ 994.00 | $ 0.35 | $ 1,000.00 | $ 1,024.90 | $ 0.36 | 0.07 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 26 for more information. |
F U N D S U M M A R Y |
11 |
Fund Summary as of October 31, 2021 (continued) | iShares® iBonds® Dec 2024 Term Treasury ETF |
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Ratings* | Percent of Net Assets |
|||
Aaa |
99.5 | % | ||
Short-Term and Other Assets |
0.5 |
FIVE LARGEST HOLDINGS
Security(a) | Percent of Net Assets |
|||
U.S. Treasury Note/Bond, 0.38%, 09/15/24 |
25.6 | % | ||
U.S. Treasury Note/Bond, 1.50%, 09/30/24 |
18.0 | |||
U.S. Treasury Note/Bond, 2.50%, 01/31/24 |
17.1 | |||
U.S. Treasury Note/Bond, 2.25%, 04/30/24 |
12.2 | |||
U.S. Treasury Note/Bond, 0.13%, 01/15/24 |
7.2 |
* |
Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) |
Excludes money market funds. |
12 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of October 31, 2021 | iShares® iBonds® Dec 2025 Term Treasury ETF |
Investment Objective
The iShares iBonds Dec 2025 Term Treasury ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. Treasury bonds maturing in 2025, as represented by the ICE 2025 Maturity US Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year | Since Inception |
1 Year | Since Inception |
|||||||||||||||||
Fund NAV |
(1.83 | )% | 1.47 | % | (1.83 | )% | 2.48 | % | ||||||||||||
Fund Market |
(1.83 | ) | 1.49 | (1.83 | ) | 2.52 | ||||||||||||||
Index |
(1.79 | ) | 1.52 | (1.79 | ) | 2.57 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 2/25/20. The first day of secondary market trading was 2/27/20.
On 3/1/2021 the Fund began to track the 4pm pricing variant of the ICE 2025 Maturity US Treasury Index. Historical index data prior to 3/1/2021 is for the 3pm pricing variant of the ICE 2025 Maturity US Treasury Index. Index data on and after 3/1/2021 is for the 4pm pricing variant of the ICE 2025 Maturity US Treasury Index.
Past performance is no guarantee 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” on page 26 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ 1,000.00 | $ 992.20 | $ 0.35 | $ 1,000.00 | $ 1,024.90 | $ 0.36 | 0.07 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 26 for more information. |
F U N D S U M M A R Y |
13 |
Fund Summary as of October 31, 2021 (continued) | iShares® iBonds® Dec 2025 Term Treasury ETF |
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Ratings* | Percent of Net Assets |
|||
Aaa |
98.7 | % | ||
Short-Term and Other Assets |
1.3 |
FIVE LARGEST HOLDINGS
Security(a) | Percent of Net Assets |
|||
U.S. Treasury Note/Bond, 2.63%, 03/31/25 |
19.7 | % | ||
U.S. Treasury Note/Bond, 2.75%, 06/30/25 |
19.1 | |||
U.S. Treasury Note/Bond, 3.00%, 09/30/25 |
16.8 | |||
U.S. Treasury Note/Bond, 2.88%, 07/31/25 |
15.9 | |||
U.S. Treasury Note/Bond, 3.00%, 10/31/25 |
14.9 |
* |
Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) |
Excludes money market funds. |
14 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of October 31, 2021 | iShares® iBonds® Dec 2026 Term Treasury ETF |
Investment Objective
The iShares iBonds Dec 2026 Term Treasury ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. Treasury bonds maturing in 2026, as represented by the ICE 2026 Maturity US Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year | Since Inception |
1 Year | Since Inception |
|||||||||||||||||
Fund NAV |
(2.55 | )% | 1.31 | % | (2.55 | )% | 2.22 | % | ||||||||||||
Fund Market |
(2.48 | ) | 1.36 | (2.48 | ) | 2.30 | ||||||||||||||
Index |
(2.54 | ) | 1.35 | (2.54 | ) | 2.27 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 2/25/20. The first day of secondary market trading was 2/27/20.
On 3/1/2021 the Fund began to track the 4pm pricing variant of the ICE 2026 Maturity US Treasury Index. Historical index data prior to 3/1/2021 is for the 3pm pricing variant of the ICE 2026 Maturity US Treasury Index. Index data on and after 3/1/2021 is for the 4pm pricing variant of the ICE 2026 Maturity US Treasury Index.
Past performance is no guarantee 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” on page 26 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ 1,000.00 | $ 992.50 | $ 0.35 | $ 1,000.00 | $ 1,024.90 | $ 0.36 | 0.07 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 26 for more information. |
F U N D S U M M A R Y |
15 |
Fund Summary as of October 31, 2021 (continued) | iShares® iBonds® Dec 2026 Term Treasury ETF |
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Ratings* | Percent of Net Assets |
|||
Aaa |
99.3 | % | ||
Short-Term and Other Assets |
0.7 |
FIVE LARGEST HOLDINGS
Security(a) | Percent of Net Assets |
|||
U.S. Treasury Note/Bond, 0.88%, 06/30/26 |
22.2 | % | ||
U.S. Treasury Note/Bond, 2.38%, 04/30/26 |
19.6 | |||
U.S. Treasury Note/Bond, 2.25%, 03/31/26 |
19.2 | |||
U.S. Treasury Note/Bond, 1.88%, 07/31/26 |
15.9 | |||
U.S. Treasury Note/Bond, 1.63%, 11/30/26 |
12.6 |
* |
Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) |
Excludes money market funds. |
16 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of October 31, 2021 | iShares® iBonds® Dec 2027 Term Treasury ETF |
Investment Objective
The iShares iBonds Dec 2027 Term Treasury ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. Treasury bonds maturing in 2027, as represented by the ICE 2027 Maturity US Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year | Since Inception |
1 Year | Since Inception |
|||||||||||||||||
Fund NAV |
(3.31 | )% | 0.85 | % | (3.31 | )% | 1.44 | % | ||||||||||||
Fund Market |
(3.16 | ) | 0.90 | (3.16 | ) | 1.52 | ||||||||||||||
Index |
(3.23 | ) | 0.95 | (3.23 | ) | 1.61 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 2/25/20. The first day of secondary market trading was 2/27/20.
On 3/1/2021 the Fund began to track the 4pm pricing variant of the ICE 2027 Maturity US Treasury Index. Historical index data prior to 3/1/2021 is for the 3pm pricing variant of the ICE 2027 Maturity US Treasury Index. Index data on and after 3/1/2021 is for the 4pm pricing variant of the ICE 2027 Maturity US Treasury Index.
Past performance is no guarantee 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” on page 26 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ 1,000.00 | $ 996.70 | $ 0.35 | $ 1,000.00 | $ 1,024.90 | $ 0.36 | 0.07 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 26 for more information. |
F U N D S U M M A R Y |
17 |
Fund Summary as of October 31, 2021 (continued) | iShares® iBonds® Dec 2027 Term Treasury ETF |
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Ratings* | Percent of Net Assets |
|||
Aaa |
99.4 | % | ||
Short-Term and Other Assets |
0.6 |
FIVE LARGEST HOLDINGS
Security(a) | Percent of Net Assets |
|||
U.S. Treasury Note/Bond, 2.25%, 08/15/27 |
30.1 | % | ||
U.S. Treasury Note/Bond, 0.50%, 08/31/27 |
29.5 | |||
U.S. Treasury Note/Bond, 2.25%, 11/15/27 |
10.0 | |||
U.S. Treasury Note/Bond, 1.50%, 01/31/27 |
9.9 | |||
U.S. Treasury Note/Bond, 2.25%, 02/15/27 |
9.2 |
* |
Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) |
Excludes money market funds. |
18 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of October 31, 2021 | iShares® iBonds® Dec 2028 Term Treasury ETF |
Investment Objective
The iShares iBonds Dec 2028 Term Treasury ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. Treasury bonds maturing in 2028, as represented by the ICE 2028 Maturity US Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year | Since Inception |
1 Year | Since Inception |
|||||||||||||||||
Fund NAV |
(3.71 | )% | 0.66 | % | (3.71 | )% | 1.11 | % | ||||||||||||
Fund Market |
(3.60 | ) | 0.68 | (3.60 | ) | 1.15 | ||||||||||||||
Index |
(3.67 | ) | 0.73 | (3.67 | ) | 1.23 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 2/25/20. The first day of secondary market trading was 2/27/20.
On 3/1/2021 the Fund began to track the 4pm pricing variant of the ICE 2028 Maturity US Treasury Index. Historical index data prior to 3/1/2021 is for the 3pm pricing variant of the ICE 2028 Maturity US Treasury Index. Index data on and after 3/1/2021 is for the 4pm pricing variant of the ICE 2028 Maturity US Treasury Index.
Past performance is no guarantee 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” on page 26 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ 1,000.00 | $ 999.50 | $ 0.35 | $ 1,000.00 | $ 1,024.90 | $ 0.36 | 0.07 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 26 for more information. |
F U N D S U M M A R Y |
19 |
Fund Summary as of October 31, 2021 (continued) | iShares® iBonds® Dec 2028 Term Treasury ETF |
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Ratings* | Percent of Net Assets |
|||
Aaa |
99.1 | % | ||
Short-Term and Other Assets |
0.9 |
FIVE LARGEST HOLDINGS
Security(a) | Percent of Net Assets |
|||
U.S. Treasury Note/Bond, 3.13%, 11/15/28 |
25.3 | % | ||
U.S. Treasury Note/Bond, 2.88%, 05/15/28 |
16.3 | |||
U.S. Treasury Note/Bond, 2.75%, 02/15/28 |
11.3 | |||
U.S. Treasury Note/Bond, 1.13%, 02/29/28 |
9.5 | |||
U.S. Treasury Note/Bond, 2.88%, 08/15/28 |
8.9 |
* |
Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) |
Excludes money market funds. |
20 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of October 31, 2021 | iShares® iBonds® Dec 2029 Term Treasury ETF |
Investment Objective
The iShares iBonds Dec 2029 Term Treasury ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. Treasury bonds maturing in 2029, as represented by the ICE 2029 Maturity US Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year | Since Inception |
1 Year | Since Inception |
|||||||||||||||||
Fund NAV |
(4.08 | )% | 0.62 | % | (4.08 | )% | 1.04 | % | ||||||||||||
Fund Market |
(3.90 | ) | 0.67 | (3.90 | ) | 1.12 | ||||||||||||||
Index |
(4.03 | ) | 0.70 | (4.03 | ) | 1.17 |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 2/25/20. The first day of secondary market trading was 2/27/20.
On 3/1/2021 the Fund began to track the 4pm pricing variant of the ICE 2029 Maturity US Treasury Index. Historical index data prior to 3/1/2021 is for the 3pm pricing variant of the ICE 2029 Maturity US Treasury Index. Index data on and after 3/1/2021 is for the 4pm pricing variant of the ICE 2029 Maturity US Treasury Index.
Past performance is no guarantee 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” on page 26 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ 1,000.00 | $ 1,005.20 | $ 0.35 | $ 1,000.00 | $ 1,024.90 | $ 0.36 | 0.07 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 26 for more information. |
F U N D S U M M A R Y |
21 |
Fund Summary as of October 31, 2021 (continued) | iShares® iBonds® Dec 2029 Term Treasury ETF |
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Ratings* | Percent of Net Assets |
|||
Aaa |
98.3 | % | ||
Short-Term and Other Assets |
1.7 |
FIVE LARGEST HOLDINGS
Security(a) | Percent of Net Assets |
|||
U.S. Treasury Note/Bond, 2.38%, 05/15/29 |
38.2 | % | ||
U.S. Treasury Note/Bond, 1.63%, 08/15/29 |
31.5 | |||
U.S. Treasury Note/Bond, 2.63%, 02/15/29 |
17.7 | |||
U.S. Treasury Note/Bond, 1.75%, 11/15/29 |
10.9 |
* |
Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) |
Excludes money market funds. |
22 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of October 31, 2021 | iShares® iBonds® Dec 2030 Term Treasury ETF |
Investment Objective
The iShares iBonds Dec 2030 Term Treasury ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. Treasury bonds maturing in 2030, as represented by the ICE 2030 Maturity US Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||||||
1 Year | Since Inception |
1 Year | Since Inception |
|||||||||||||||||
Fund NAV |
(4.58 | )% | (4.88 | )% | (4.58 | )% | (6.31 | )% | ||||||||||||
Fund Market |
(4.42 | ) | (4.82 | ) | (4.42 | ) | (6.23 | ) | ||||||||||||
Index |
(4.55 | ) | (4.88 | ) | (4.55 | ) | (6.28 | ) |
GROWTH OF $10,000 INVESTMENT
(SINCE INCEPTION AT NET ASSET VALUE)
The inception date of the Fund was 7/14/20. The first day of secondary market trading was 7/16/20.
On 3/1/2021 the Fund began to track the 4pm pricing variant of the ICE 2030 Maturity US Treasury Index. Historical index data prior to 3/1/2021 is for the 3pm pricing variant of the ICE 2030 Maturity US Treasury Index. Index data on and after 3/1/2021 is for the 4pm pricing variant of the ICE 2030 Maturity US Treasury Index.
Past performance is no guarantee 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” on page 26 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ 1,000.00 | $ 1,013.30 | $ 0.36 | $ 1,000.00 | $ 1,024.90 | $ 0.36 | 0.07 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 26 for more information. |
F U N D S U M M A R Y |
23 |
Fund Summary as of October 31, 2021 (continued) | iShares® iBonds® Dec 2030 Term Treasury ETF |
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Ratings* | Percent of Net Assets |
|||
Aaa |
99.2 | % | ||
Short-Term and Other Assets |
0.8 |
FIVE LARGEST HOLDINGS
Security(a) | Percent of Net Assets |
|||
U.S. Treasury Note/Bond, 0.88%, 11/15/30 |
30.7 | % | ||
U.S. Treasury Note/Bond, 0.63%, 08/15/30 |
28.2 | |||
U.S. Treasury Note/Bond, 0.63%, 05/15/30 |
22.9 | |||
U.S. Treasury Note/Bond, 1.50%, 02/15/30 |
17.4 |
* |
Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) |
Excludes money market funds. |
24 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of October 31, 2021 | iShares® iBonds® Dec 2031 Term Treasury ETF |
Investment Objective
The iShares iBonds Dec 2031 Term Treasury ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. Treasury bonds maturing in 2031, as represented by the ICE 2031 Maturity US Treasury Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
Performance
Cumulative Total Returns | ||||||||||||||||||||
Since Inception |
||||||||||||||||||||
Fund NAV |
(0.81 | )% | ||||||||||||||||||
Fund Market |
(0.73 | ) | ||||||||||||||||||
Index |
(0.78 | ) |
For the fiscal period ended 10/31/21, the Fund did not have six months of performance and therefore line graphs are not presented.
The inception date of the Fund was 7/13/21. The first day of secondary market trading was 7/15/21.
Past performance is no guarantee 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” on page 26 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||
|
Beginning Account Value (07/13/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (05/01/21) |
|
|
Ending Account Value (10/31/21) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ 1,000.00 | $ 991.90 | $ 0.21 | $ 1,000.00 | $ 1,024.90 | $ 0.36 | 0.07 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (110 days for actual and 184 days for hypothetical expenses) and divided by the number of days in the year (365 days). 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 “Shareholder Expenses” on page 26 for more information. |
Portfolio Information
ALLOCATION BY CREDIT QUALITY
Moody’s Credit Ratings* | Percent of Net Assets |
|||
Aaa |
99.3 | % | ||
Short-Term and Other Assets |
0.7 |
FIVE LARGEST HOLDINGS
Security(a) | Percent of Net Assets |
|||
U.S. Treasury Note/Bond, 1.63%, 05/15/31 |
42.0 | % | ||
U.S. Treasury Note/Bond, 1.13%, 02/15/31 |
29.9 | |||
U.S. Treasury Note/Bond, 1.25%, 08/15/31 |
25.1 | |||
U.S. Treasury Note/Bond, 5.38%, 02/15/31 |
2.3 |
* |
Credit quality ratings shown reflect the ratings assigned by Moody’s Investors Service (“Moody’s”), a widely used independent, nationally recognized statistical rating organization. Moody’s credit ratings are opinions of the credit quality of individual obligations or of an issuer’s general creditworthiness. Investment grade ratings are credit ratings of Baa or higher. Below investment grade ratings are credit ratings of Ba or lower. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(a) |
Excludes money market funds. |
F U N D S U M M A R Y |
25 |
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 by 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.
As a shareholder of your Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.
Actual Expenses – The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
26 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
October 31, 2021 |
iShares® iBonds® Dec 2021 Term Treasury ETF (Percentages shown are based on Net Assets) |
Security | Par/ Shares (000) |
Value | ||||||
U.S. Government Obligations | ||||||||
U.S. Government Obligations — 18.5% |
||||||||
U.S. Treasury Bill, 0.04%, 12/02/21(a) |
$ | 414 | $ | 413,978 | ||||
U.S.
Treasury Note/Bond |
3,073 | 3,076,180 | ||||||
8.00%, 11/15/21 |
4,690 | 4,704,774 | ||||||
|
|
|||||||
8,194,932 | ||||||||
|
|
|||||||
Total
U.S. Government Obligations — 18.5% |
8,194,932 | |||||||
|
|
|||||||
Short-Term Investments | ||||||||
Money Market Funds — 79.6% |
||||||||
BlackRock
Cash Funds: Treasury, |
35,314 | 35,314,000 | ||||||
|
|
|||||||
Total
Short-Term Investments — 79.6% |
35,314,000 | |||||||
|
|
|||||||
Total
Investments in Securities — 98.1% |
43,508,932 | |||||||
Other Assets, Less Liabilities — 1.9% |
851,343 | |||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 44,360,275 | ||||||
|
|
(a) |
Zero-coupon bond. |
(b) |
Affiliate of the Fund. |
(c) |
Annualized 7-day yield as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 10/31/20 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 10/31/21 |
Shares Held at 10/31/21 (000) |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
$ | 464,000 | $34,850,000 | (a) | $ | — | $ | — | $ | — | $ | 35,314,000 | 35,314 | $ | 681 | (b) | $ | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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 | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
U.S. Government Obligations |
$ | — | $ | 8,194,932 | $ | — | $ | 8,194,932 | ||||||||
Money Market Funds |
35,314,000 | — | — | 35,314,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 35,314,000 | $ | 8,194,932 | $ | — | $ | 43,508,932 | |||||||||
|
|
|
|
|
|
|
|
27 |
Schedule of Investments October 31, 2021 |
iShares® iBonds® Dec 2022 Term Treasury ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||
U.S. Government Obligations | ||||||||
U.S. Government Obligations — 96.3% |
||||||||
U.S.
Treasury Note/Bond |
$ | 5,526 | $ | 5,526,948 | ||||
0.13%, 07/31/22 |
3,264 | 3,264,382 | ||||||
0.13%, 08/31/22 |
320 | 320,000 | ||||||
0.13%, 09/30/22 |
1,043 | 1,043,137 | ||||||
0.13%, 10/31/22(a) |
5,955 | 5,953,139 | ||||||
0.13%, 11/30/22 |
3,303 | 3,300,923 | ||||||
1.38%, 01/31/22 |
9,174 | 9,203,371 | ||||||
1.75%, 06/30/22 |
8,000 | 8,087,812 | ||||||
1.75%, 07/15/22 |
960 | 971,062 | ||||||
1.75%, 09/30/22 |
14,400 | 14,610,938 | ||||||
1.88%, 01/31/22 |
3,517 | 3,532,784 | ||||||
2.00%, 10/31/22 |
6,921 | 7,047,826 | ||||||
2.00%, 11/30/22 |
5,852 | 5,967,440 | ||||||
2.25%, 04/15/22 |
361 | 364,295 | ||||||
2.50%, 02/15/22 |
9,070 | 9,133,940 | ||||||
|
|
|||||||
78,327,997 | ||||||||
|
|
|||||||
Total
U.S. Government Obligations — 96.3% |
78,327,997 | |||||||
|
|
Security |
Shares (000) |
Value | ||||||
Short-Term Investments | ||||||||
Money Market Funds — 10.4% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(b)(c)(d) |
8,460 | $ | 8,459,814 | |||||
|
|
|||||||
Total
Short-Term Investments — 10.4% |
8,459,814 | |||||||
|
|
|||||||
Total
Investments in Securities — 106.7% |
|
86,787,811 | ||||||
Other Assets, Less Liabilities — (6.7)% |
(5,454,924 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
|
$ | 81,332,887 | |||||
|
|
(a) |
All or a portion of this security is on loan. |
(b) |
Affiliate of the Fund. |
(c) |
Annualized 7-day yield as of period end. |
(d) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 10/31/20 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 10/31/21 |
Shares Held at 10/31/21 (000) |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
$ | — | $8,459,814 | (a) | $ | — | $ | — | $ | — | $ | 8,459,814 | 8,460 | $ | 196 | (b) | $ | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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 | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
U.S. Government Obligations |
$ | — | $ | 78,327,997 | $ | — | $ | 78,327,997 | ||||||||
Money Market Funds |
8,459,814 | — | — | 8,459,814 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 8,459,814 | $ | 78,327,997 | $ | — | $ | 86,787,811 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
28 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments October 31, 2021 |
iShares® iBonds® Dec 2023 Term Treasury ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||
U.S. Government Obligations |
||||||||
U.S. Government Obligations — 98.6% |
||||||||
U.S.
Treasury Note/Bond |
$ | 384 | $ | 381,285 | ||||
0.13%, 12/15/23 |
46 | 45,389 | ||||||
0.25%, 11/15/23 |
468 | 465,089 | ||||||
0.38%, 08/15/24 |
287 | 284,408 | ||||||
2.38%, 01/31/23 |
15,510 | 15,915,721 | ||||||
2.50%, 08/15/23 |
12,555 | 13,014,533 | ||||||
2.75%, 05/31/23 |
12,150 | 12,604,201 | ||||||
2.75%, 07/31/23 |
8,100 | 8,427,480 | ||||||
2.88%, 10/31/23 |
7,425 | 7,773,917 | ||||||
2.88%, 11/30/23 |
8,696 | 9,116,718 | ||||||
|
|
|||||||
68,028,741 | ||||||||
|
|
|||||||
Total
U.S. Government Obligations — 98.6% |
68,028,741 | |||||||
|
|
Security | Shares (000) |
Value | ||||||
Short-Term Investments |
| |||||||
Money Market Funds — 0.6% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(a)(b) |
397 | $ | 397,000 | |||||
|
|
|||||||
Total
Short-Term Investments — 0.6% |
397,000 | |||||||
|
|
|||||||
Total
Investments in Securities — 99.2% |
|
68,425,741 | ||||||
Other Assets, Less Liabilities — 0.8% |
570,785 | |||||||
|
|
|||||||
Net Assets — 100.0% |
|
$ | 68,996,526 | |||||
|
|
(a) |
Affiliate of the Fund. |
(b) |
Annualized 7-day yield as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 10/31/20 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 10/31/21 |
Shares Held at 10/31/21 (000) |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
$ | 497,000 | $ | — | $ | (100,000 | )(a) | $ | — | $ | — | $ | 397,000 | 397 | $ | 189 | (b) | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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 | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
U.S. Government Obligations |
$ | — | $ | 68,028,741 | $ | — | $ | 68,028,741 | ||||||||
Money Market Funds |
397,000 | — | — | 397,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 397,000 | $ | 68,028,741 | $ | — | $ | 68,425,741 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
29 |
Schedule of Investments October 31, 2021 |
iShares® iBonds® Dec 2024 Term Treasury ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||
U.S. Government Obligations |
||||||||
U.S. Government Obligations — 99.5% |
||||||||
U.S.
Treasury Note/Bond |
$ | 3,428 | $ | 3,394,023 | ||||
0.25%, 06/15/24 |
104 | 103,189 | ||||||
0.38%, 04/15/24 |
578 | 574,049 | ||||||
0.38%, 07/15/24 |
261 | 258,170 | ||||||
0.38%, 09/15/24 |
12,215 | 12,090,644 | ||||||
1.50%, 09/30/24 |
8,325 | 8,504,833 | ||||||
1.50%, 11/30/24 |
675 | 689,476 | ||||||
1.75%, 07/31/24 |
278 | 286,133 | ||||||
2.00%, 04/30/24 |
2,312 | 2,389,734 | ||||||
2.13%, 07/31/24 |
990 | 1,028,558 | ||||||
2.25%, 04/30/24 |
5,550 | 5,768,748 | ||||||
2.25%, 11/15/24 |
463 | 482,951 | ||||||
2.38%, 02/29/24 |
2,564 | 2,668,871 | ||||||
2.38%, 08/15/24 |
666 | 696,386 | ||||||
2.50%, 01/31/24 |
7,751 | 8,081,514 | ||||||
|
|
|||||||
47,017,279 | ||||||||
|
|
|||||||
Total
U.S. Government Obligations — 99.5% |
47,017,279 | |||||||
|
|
Security | Shares (000) |
Value | ||||||
Short-Term Investments |
| |||||||
Money Market Funds — 0.1% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(a)(b) |
58 | $ | 58,000 | |||||
|
|
|||||||
Total
Short-Term Investments — 0.1% |
58,000 | |||||||
|
|
|||||||
Total
Investments in Securities — 99.6% |
|
47,075,279 | ||||||
Other Assets, Less Liabilities — 0.4% |
181,543 | |||||||
|
|
|||||||
Net Assets — 100.0% |
|
$ | 47,256,822 | |||||
|
|
(a) |
Affiliate of the Fund. |
(b) |
Annualized 7-day yield as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 10/31/20 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 10/31/21 |
Shares Held at 10/31/21 (000) |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock
Cash Funds: Treasury, |
$ | 108,000 | $ | — | $ | (50,000 | )(a) | $ | — | $ | — | $ | 58,000 | 58 | $ | 567 | (b) | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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 | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
U.S. Government Obligations |
$ | — | $ | 47,017,279 | $ | — | $ | 47,017,279 | ||||||||
Money Market Funds |
58,000 | — | — | 58,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 58,000 | $ | 47,017,279 | $ | — | $ | 47,075,279 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
30 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments October 31, 2021 |
iShares® iBonds® Dec 2025 Term Treasury ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||
U.S. Government Obligations |
||||||||
U.S. Government Obligations — 98.7% | ||||||||
U.S. Treasury Note/Bond 0.25%, 05/31/25 |
$ | 1,488 | $ | 1,450,952 | ||||
0.25%, 08/31/25 |
133 | 129,192 | ||||||
0.25%, 09/30/25 |
21 | 20,575 | ||||||
0.25%, 10/31/25 |
106 | 102,692 | ||||||
0.38%, 11/30/25 |
772 | 750,395 | ||||||
1.13%, 02/28/25 |
200 | 201,680 | ||||||
2.63%, 03/31/25 |
4,016 | 4,250,842 | ||||||
2.75%, 06/30/25 |
3,891 | 4,142,471 | ||||||
2.88%, 07/31/25 |
3,208 | 3,433,095 | ||||||
3.00%, 09/30/25 |
3,382 | 3,641,404 | ||||||
3.00%, 10/31/25 |
2,996 | 3,227,038 | ||||||
|
|
|||||||
21,350,336 | ||||||||
|
|
|||||||
Total
U.S. Government Obligations — 98.7% |
21,350,336 | |||||||
|
|
Security | Shares (000) |
Value | ||||||
Short-Term Investments |
||||||||
Money Market Funds — 0.7% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(a)(b) |
140 | $ | 140,000 | |||||
|
|
|||||||
Total
Short-Term Investments — 0.7% |
140,000 | |||||||
|
|
|||||||
Total
Investments in Securities — 99.4% |
21,490,336 | |||||||
Other Assets, Less Liabilities — 0.6% |
132,870 | |||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 21,623,206 | ||||||
|
|
(a) |
Affiliate of the Fund. |
(b) |
Annualized 7-day yield as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 10/31/20 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 10/31/21 |
Shares Held at 10/31/21 (000) |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
$ | 44,000 | $ | 96,000 | (a) | $ | — | $ | — | $ | — | $ | 140,000 | 140 | $ | 37 | (b) | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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 | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
U.S. Government Obligations |
$ | — | $ | 21,350,336 | $ | — | $ | 21,350,336 | ||||||||
Money Market Funds |
140,000 | — | — | 140,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 140,000 | $ | 21,350,336 | $ | — | $ | 21,490,336 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
31 |
Schedule of Investments October 31, 2021 |
iShares® iBonds® Dec 2026 Term Treasury ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||
U.S. Government Obligations |
||||||||
U.S. Government Obligations — 99.3% | ||||||||
U.S. Treasury Note/Bond |
||||||||
0.63%, 07/31/26 |
$ | 200 | $ | 194,930 | ||||
0.75%, 04/30/26 |
850 | 835,623 | ||||||
0.88%, 06/30/26 |
3,707 | 3,658,346 | ||||||
1.38%, 08/31/26 |
212 | 214,458 | ||||||
1.63%, 11/30/26 |
2,028 | 2,069,792 | ||||||
1.88%, 06/30/26 |
104 | 106,933 | ||||||
1.88%, 07/31/26 |
2,531 | 2,614,938 | ||||||
2.00%, 11/15/26 |
248 | 257,356 | ||||||
2.25%, 03/31/26 |
3,022 | 3,170,909 | ||||||
2.38%, 04/30/26 |
3,055 | 3,222,070 | ||||||
|
|
|||||||
16,345,355 | ||||||||
|
|
|||||||
Total
U.S. Government Obligations — 99.3% |
16,345,355 | |||||||
|
|
Security | Shares (000) |
Value | ||||||
Short-Term Investments |
||||||||
Money Market Funds — 0.2% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(a)(b) |
30 | $ | 30,000 | |||||
|
|
|||||||
Total
Short-Term Investments — 0.2% |
30,000 | |||||||
|
|
|||||||
Total
Investments in Securities — 99.5% |
16,375,355 | |||||||
Other Assets, Less Liabilities — 0.5% |
86,296 | |||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 16,461,651 | ||||||
|
|
(a) |
Affiliate of the Fund. |
(b) |
Annualized 7-day yield as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 10/31/20 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 10/31/21 |
Shares Held at 10/31/21 (000) |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
$ | 108,000 | $ | — | $ | (78,000 | )(a) | $ | — | $ | — | $ | 30,000 | 30 | $ | 125 | (b) | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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 | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
U.S. Government Obligations |
$ | — | $ | 16,345,355 | $ | — | $ | 16,345,355 | ||||||||
Money Market Funds |
30,000 | — | — | 30,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 30,000 | $ | 16,345,355 | $ | — | $ | 16,375,355 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
32 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments October 31, 2021 |
iShares® iBonds® Dec 2027 Term Treasury ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||
U.S. Government Obligations |
||||||||
U.S. Government Obligations — 99.4% | ||||||||
U.S. Treasury Note/Bond |
||||||||
0.50%, 05/31/27 |
$ | 129 | $ | 123,256 | ||||
0.50%, 08/31/27 |
9,747 | 9,292,490 | ||||||
0.63%, 11/30/27 |
878 | 839,753 | ||||||
0.63%, 12/31/27 |
842 | 803,830 | ||||||
1.50%, 01/31/27 |
3,083 | 3,125,854 | ||||||
2.25%, 02/15/27 |
2,763 | 2,904,612 | ||||||
2.25%, 08/15/27 |
9,000 | 9,466,172 | ||||||
2.25%, 11/15/27 |
2,995 | 3,151,418 | ||||||
2.38%, 05/15/27 |
1,446 | 1,530,818 | ||||||
|
|
|||||||
31,238,203 | ||||||||
|
|
|||||||
Total
U.S. Government Obligations — 99.4% |
31,238,203 | |||||||
|
|
Security | Shares (000) |
Value | ||||||
Short-Term Investments |
||||||||
Money Market Funds — 0.2% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(a)(b) |
70 | $ | 70,000 | |||||
|
|
|||||||
Total
Short-Term Investments — 0.2% |
70,000 | |||||||
|
|
|||||||
Total
Investments in Securities — 99.6% |
31,308,203 | |||||||
Other Assets, Less Liabilities — 0.4% |
134,909 | |||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 31,443,112 | ||||||
|
|
(a) |
Affiliate of the Fund. |
(b) |
Annualized 7-day yield as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 10/31/20 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 10/31/21 |
Shares Held at 10/31/21 (000) |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
$ | 50,000 | $ | 20,000 | (a) | $ | — | $ | — | $ | — | $ | 70,000 | 70 | $ | 19 | (b) | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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 | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
U.S. Government Obligations |
$ | — | $ | 31,238,203 | $ | — | $ | 31,238,203 | ||||||||
Money Market Funds |
70,000 | — | — | 70,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 70,000 | $ | 31,238,203 | $ | — | $ | 31,308,203 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
33 |
Schedule of Investments October 31, 2021 |
iShares® iBonds® Dec 2028 Term Treasury ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||
U.S. Government Obligations |
||||||||
U.S. Government Obligations — 99.1% | ||||||||
U.S. Treasury Note/Bond |
||||||||
1.00%, 07/31/28 |
$ | 1,520 | $ | 1,476,235 | ||||
1.13%, 02/29/28 |
1,822 | 1,792,880 | ||||||
1.13%, 08/31/28 |
1,629 | 1,593,131 | ||||||
1.25%, 03/31/28 |
89 | 87,632 | ||||||
1.25%, 06/30/28 |
1,540 | 1,521,150 | ||||||
1.25%, 09/30/28 |
560 | 552,212 | ||||||
2.75%, 02/15/28 |
1,964 | 2,126,093 | ||||||
2.88%, 05/15/28 |
2,822 | 3,080,716 | ||||||
2.88%, 08/15/28 |
1,535 | 1,678,945 | ||||||
3.13%, 11/15/28 |
4,286 | 4,766,000 | ||||||
|
|
|||||||
18,674,994 | ||||||||
|
|
|||||||
Total
U.S. Government Obligations — 99.1% |
18,674,994 | |||||||
|
|
Security | Shares (000) |
Value | ||||||
Short-Term Investments |
||||||||
Money Market Funds — 0.2% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(a)(b) |
40 | $ | 40,000 | |||||
|
|
|||||||
Total
Short-Term Investments — 0.2% |
40,000 | |||||||
|
|
|||||||
Total
Investments in Securities — 99.3% |
18,714,994 | |||||||
Other Assets, Less Liabilities — 0.7% |
136,650 | |||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 18,851,644 | ||||||
|
|
(a) |
Affiliate of the Fund. |
(b) |
Annualized 7-day yield as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 10/31/20 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 10/31/21 |
Shares Held at 10/31/21 (000) |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
$ | 140,000 | $ | — | $ | (100,000 | )(a) | $ | — | $ | — | $ | 40,000 | 40 | $ | 509 | (b) | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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 | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
U.S. Government Obligations |
$ | — | $ | 18,674,994 | $ | — | $ | 18,674,994 | ||||||||
Money Market Funds |
40,000 | — | — | 40,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 40,000 | $ | 18,674,994 | $ | — | $ | 18,714,994 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
34 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments October 31, 2021 |
iShares® iBonds® Dec 2029 Term Treasury ETF (Percentages shown are based on Net Assets) |
Security |
Par/ Shares |
Value | ||||||
U.S. Government Obligations |
||||||||
U.S. Government Obligations — 98.3% | ||||||||
U.S. Treasury Note/Bond |
||||||||
1.63%, 08/15/29 |
$ | 5,462 | $ | 5,525,132 | ||||
1.75%, 11/15/29 |
1,863 | 1,903,214 | ||||||
2.38%, 05/15/29 |
6,289 | 6,690,514 | ||||||
2.63%, 02/15/29 |
2,862 | 3,091,296 | ||||||
|
|
|||||||
17,210,156 | ||||||||
|
|
|||||||
Total
U.S. Government Obligations — 98.3% |
17,210,156 | |||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 1.0% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(a)(b) |
180 | 180,000 | ||||||
|
|
|||||||
Total
Short-Term Investments — 1.0% |
180,000 | |||||||
|
|
|||||||
Total
Investments in Securities — 99.3% |
17,390,156 | |||||||
Other Assets, Less Liabilities — 0.7% |
121,649 | |||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 17,511,805 | ||||||
|
|
(a) |
Affiliate of the Fund. |
(b) |
Annualized 7-day yield as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 10/31/20 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 10/31/21 |
Shares Held at 10/31/21 (000) |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
$ | 340,000 | $ | — | $ | (160,000 | )(a) | $ | — | $ | — | $ | 180,000 | 180 | $ | 1,017 | (b) | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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 | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
U.S. Government Obligations |
$ | — | $ | 17,210,156 | $ | — | $ | 17,210,156 | ||||||||
Money Market Funds |
180,000 | — | — | 180,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 180,000 | $ | 17,210,156 | $ | — | $ | 17,390,156 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
35 |
Schedule of Investments October 31, 2021 |
iShares® iBonds® Dec 2030 Term Treasury ETF (Percentages shown are based on Net Assets) |
Security |
Par/ Shares (000) |
Value | ||||||
U.S. Government Obligations |
||||||||
U.S. Government Obligations — 99.2% | ||||||||
U.S. Treasury Note/Bond |
||||||||
0.63%, 05/15/30 |
$ | 863 | $ | 801,350 | ||||
0.63%, 08/15/30 |
1,062 | 984,319 | ||||||
0.88%, 11/15/30 |
1,135 | 1,072,353 | ||||||
1.50%, 02/15/30(a) |
606 | 606,716 | ||||||
|
|
|||||||
3,464,738 | ||||||||
|
|
|||||||
Total
U.S. Government Obligations — 99.2% |
3,464,738 | |||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 17.9% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(b)(c)(d) |
625 | 625,040 | ||||||
|
|
|||||||
Total
Short-Term Investments — 17.9% |
625,040 | |||||||
|
|
|||||||
Total
Investments in Securities — 117.1% |
4,089,778 | |||||||
Other Assets, Less Liabilities — (17.1)% |
(597,135 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 3,492,643 | ||||||
|
|
(a) |
All or a portion of this security is on loan. |
(b) |
Affiliate of the Fund. |
(c) |
Annualized 7-day yield as of period end. |
(d) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer | Value at 10/31/20 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 10/31/21 |
Shares Held at 10/31/21 (000) |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
$ | — | $ | 625,040 | (a) | $ | — | $ | — | $ | — | $ | 625,040 | 625 | $ | 368 | (b) | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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 | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
U.S. Government Obligations |
$ | — | $ | 3,464,738 | $ | — | $ | 3,464,738 | ||||||||
Money Market Funds |
625,040 | — | — | 625,040 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 625,040 | $ | 3,464,738 | $ | — | $ | 4,089,778 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
36 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments October 31, 2021 |
iShares® iBonds® Dec 2031 Term Treasury ETF (Percentages shown are based on Net Assets) |
Security | Par (000) |
Value | ||||||
U.S. Government Obligations |
||||||||
U.S. Government Obligations — 99.3% | ||||||||
U.S. Treasury Note/Bond |
||||||||
1.13%, 02/15/31 |
$ | 765 | $ | 737,384 | ||||
1.25%, 08/15/31 |
636 | 618,013 | ||||||
1.63%, 05/15/31 |
1,029 | 1,036,235 | ||||||
5.38%, 02/15/31 |
43 | 57,478 | ||||||
|
|
|||||||
2,449,110 | ||||||||
|
|
|||||||
Total
U.S. Government Obligations — 99.3% |
2,449,110 | |||||||
|
|
|||||||
Total
Investments in Securities — 99.3% |
2,449,110 | |||||||
Other Assets, Less Liabilities — 0.7% |
16,047 | |||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 2,465,157 | ||||||
|
|
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the period ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliated Issuer |
Value at 07/13/21(a) |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 10/31/21 |
Shares Held at 10/31/21 (000) |
Income | Capital
Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares(b) |
$ | — | $ | 0 | (c) | $ | — | $ | — | $ | — | $ | — | — | $ | 4 | (d) | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
The Fund commenced operations on July 13, 2021. |
(b) |
As of period end, the entity is no longer held. |
(c) |
Represents net amount purchased (sold). |
(d) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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 | |||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
U.S. Government Obligations |
$ | — | $ | 2,449,110 | $ | — | $ | 2,449,110 | ||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
37 |
Statements of Assets and Liabilities
October 31, 2021
iShares iBonds Dec 2021 Term Treasury ETF |
iShares iBonds Dec 2022 Term Treasury ETF |
iShares iBonds Dec 2023 Term Treasury ETF |
iShares iBonds Dec 2024 Term Treasury ETF |
|||||||||||||
|
||||||||||||||||
ASSETS |
||||||||||||||||
Investments in securities, at value (including securities on loan)(a): |
||||||||||||||||
Unaffiliated(b) |
$ | 8,194,932 | $ | 78,327,997 | $ | 68,028,741 | $ | 47,017,279 | ||||||||
Affiliated(c) |
35,314,000 | 8,459,814 | 397,000 | 58,000 | ||||||||||||
Cash |
605 | 4,578 | 4,783 | 1,535 | ||||||||||||
Receivables: |
||||||||||||||||
Investments sold |
654,900 | — | — | 693,586 | ||||||||||||
Securities lending income — Affiliated |
— | 114 | 10 | 136 | ||||||||||||
Capital shares sold |
— | 87,304 | — | 653,634 | ||||||||||||
Dividends |
148 | 11 | 2 | — | ||||||||||||
Interest |
196,834 | 297,447 | 569,799 | 183,087 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
44,361,419 | 87,177,265 | 69,000,335 | 48,607,257 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES |
||||||||||||||||
Collateral on securities loaned, at value |
— | 5,839,814 | — | — | ||||||||||||
Payables: |
||||||||||||||||
Investments purchased |
— | — | — | 1,347,898 | ||||||||||||
Investment advisory fees |
1,144 | 4,564 | 3,809 | 2,537 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
1,144 | 5,844,378 | 3,809 | 1,350,435 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 44,360,275 | $ | 81,332,887 | $ | 68,996,526 | $ | 47,256,822 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS CONSIST OF: |
||||||||||||||||
Paid-in capital |
$ | 44,360,625 | $ | 81,319,739 | $ | 69,120,655 | $ | 47,466,234 | ||||||||
Accumulated earnings (loss) |
(350 | ) | 13,148 | (124,129 | ) | (209,412 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 44,360,275 | $ | 81,332,887 | $ | 68,996,526 | $ | 47,256,822 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares outstanding |
1,750,000 | 3,200,000 | 2,700,000 | 1,850,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net asset value |
$ | 25.35 | $ | 25.42 | $ | 25.55 | $ | 25.54 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares authorized |
Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Par value |
None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(a) Securities loaned, at value |
$ | — | $ | 5,709,525 | $ | — | $ | — | ||||||||
(b) Investments, at cost — Unaffiliated |
$ | 8,195,282 | $ | 78,324,048 | $ | 68,151,036 | $ | 47,161,690 | ||||||||
(c) Investments, at cost — Affiliated |
$ | 35,314,000 | $ | 8,459,814 | $ | 397,000 | $ | 58,000 |
See notes to financial statements
38 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Assets and Liabilities (continued)
October 31, 2021
iShares iBonds Dec 2025 Term Treasury ETF |
iShares iBonds Dec 2026 Term Treasury ETF |
iShares iBonds Dec 2027 Term Treasury ETF |
iShares iBonds Dec 2028 Term Treasury ETF |
|||||||||||||
|
||||||||||||||||
ASSETS |
||||||||||||||||
Investments in securities, at value: |
||||||||||||||||
Unaffiliated(a) |
$ | 21,350,336 | $ | 16,345,355 | $ | 31,238,203 | $ | 18,674,994 | ||||||||
Affiliated(b) |
140,000 | 30,000 | 70,000 | 40,000 | ||||||||||||
Cash |
8,034 | 1,070 | 8,946 | 7,883 | ||||||||||||
Receivables: |
||||||||||||||||
Investments sold |
— | — | — | 545,120 | ||||||||||||
Securities lending income — Affiliated |
— | — | — | 15 | ||||||||||||
Interest |
126,106 | 86,207 | 127,481 | 137,847 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
21,624,476 | 16,462,632 | 31,444,630 | 19,405,859 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES |
||||||||||||||||
Payables: |
||||||||||||||||
Investments purchased |
— | — | — | 553,091 | ||||||||||||
Investment advisory fees |
1,270 | 981 | 1,518 | 1,124 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
1,270 | 981 | 1,518 | 554,215 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 21,623,206 | $ | 16,461,651 | $ | 31,443,112 | $ | 18,851,644 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS CONSIST OF: |
||||||||||||||||
Paid-in capital |
$ | 21,879,964 | $ | 16,825,550 | $ | 31,992,018 | $ | 19,601,748 | ||||||||
Accumulated loss |
(256,758 | ) | (363,899 | ) | (548,906 | ) | (750,104 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 21,623,206 | $ | 16,461,651 | $ | 31,443,112 | $ | 18,851,644 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares outstanding |
850,000 | 650,000 | 1,250,000 | 750,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net asset value |
$ | 25.44 | $ | 25.33 | $ | 25.15 | $ | 25.14 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares authorized |
Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Par value |
None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(a) Investments, at cost — Unaffiliated |
$ | 21,613,287 | $ | 16,607,695 | $ | 31,775,169 | $ | 19,223,282 | ||||||||
(b) Investments, at cost — Affiliated |
$ | 140,000 | $ | 30,000 | $ | 70,000 | $ | 40,000 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
39 |
Statements of Assets and Liabilities (continued)
October 31, 2021
iShares iBonds Dec 2029 Term Treasury ETF |
iShares iBonds Dec Term Treasury ETF |
iShares iBonds Dec Term Treasury ETF |
||||||||||
|
||||||||||||
ASSETS |
||||||||||||
Investments in securities, at value (including securities on loan)(a): |
||||||||||||
Unaffiliated(b) |
$ | 17,210,156 | $ | 3,464,738 | $ | 2,449,110 | ||||||
Affiliated(c) |
180,000 | 625,040 | — | |||||||||
Cash |
3,876 | 7,704 | 167 | |||||||||
Receivables: |
||||||||||||
Investments sold |
— | — | 96,883 | |||||||||
Securities lending income — Affiliated |
19 | — | 3 | |||||||||
Interest |
118,790 | 10,408 | 11,722 | |||||||||
|
|
|
|
|
|
|||||||
Total assets |
17,512,841 | 4,107,890 | 2,557,885 | |||||||||
|
|
|
|
|
|
|||||||
LIABILITIES |
||||||||||||
Collateral on securities loaned, at value |
— | 615,040 | — | |||||||||
Payables: |
||||||||||||
Investments purchased |
— | — | 92,581 | |||||||||
Investment advisory fees |
1,036 | 207 | 147 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
1,036 | 615,247 | 92,728 | |||||||||
|
|
|
|
|
|
|||||||
NET ASSETS |
$ | 17,511,805 | $ | 3,492,643 | $ | 2,465,157 | ||||||
|
|
|
|
|
|
|||||||
NET ASSETS CONSIST OF: |
||||||||||||
Paid-in capital |
$ | 18,392,710 | $ | 3,678,299 | $ | 2,490,895 | ||||||
Accumulated loss |
(880,905 | ) | (185,656 | ) | (25,738 | ) | ||||||
|
|
|
|
|
|
|||||||
NET ASSETS |
$ | 17,511,805 | $ | 3,492,643 | $ | 2,465,157 | ||||||
|
|
|
|
|
|
|||||||
Shares outstanding |
700,000 | 150,000 | 100,000 | |||||||||
|
|
|
|
|
|
|||||||
Net asset value |
$ | 25.02 | $ | 23.28 | $ | 24.65 | ||||||
|
|
|
|
|
|
|||||||
Shares authorized |
Unlimited | Unlimited | Unlimited | |||||||||
|
|
|
|
|
|
|||||||
Par value |
None | None | None | |||||||||
|
|
|
|
|
|
|||||||
(a) Securities loaned, at value |
$ | — | $ | 600,648 | $ | — | ||||||
(b) Investments, at cost — Unaffiliated |
$ | 18,092,906 | $ | 3,608,908 | $ | 2,480,776 | ||||||
(c) Investments, at cost — Affiliated |
$ | 180,000 | $ | 625,040 | $ | — |
See notes to financial statements.
40 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Year Ended October 31, 2021
iShares iBonds Dec 2021 Term Treasury ETF |
iShares iBonds Dec 2022 Term Treasury ETF |
iShares iBonds Dec 2023 Term Treasury ETF |
iShares iBonds Dec 2024 Term Treasury ETF |
|||||||||||||
INVESTMENT INCOME |
||||||||||||||||
Dividends — Affiliated. |
$ | 671 | $ | 72 | $ | 170 | $ | 41 | ||||||||
Interest — Unaffiliated |
11,657 | 76,425 | 146,805 | 116,619 | ||||||||||||
Securities lending income — Affiliated — net |
10 | 124 | 19 | 526 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total investment income |
12,338 | 76,621 | 146,994 | 117,186 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
EXPENSES |
||||||||||||||||
Investment advisory fees |
16,961 | 34,244 | 29,197 | 15,461 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
16,961 | 34,244 | 29,197 | 15,461 | ||||||||||||
Less: |
||||||||||||||||
Investment advisory fees waived |
(7,655 | ) | (690 | ) | (616 | ) | (136 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses after fees waived |
9,306 | 33,554 | 28,581 | 15,325 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income |
3,032 | 43,067 | 118,413 | 101,861 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments — Unaffiliated |
76 | 1,788 | (13,574 | ) | (75,949 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized gain (loss) |
76 | 1,788 | (13,574 | ) | (75,949 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments — Unaffiliated |
(775 | ) | (34,822 | ) | (316,548 | ) | (350,886 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) |
(775 | ) | (34,822 | ) | (316,548 | ) | (350,886 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized and unrealized loss |
(699 | ) | (33,034 | ) | (330,122 | ) | (426,835 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 2,333 | $ | 10,033 | $ | (211,709 | ) | $ | (324,974 | ) | ||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
41 |
Statements of Operations (continued)
Year Ended October 31, 2021
iShares iBonds Dec 2025 Term Treasury ETF |
iShares iBonds Dec 2026 Term Treasury ETF |
iShares iBonds Dec 2027 Term Treasury ETF |
iShares iBonds Dec 2028 Term Treasury ETF |
|||||||||||||
INVESTMENT INCOME |
||||||||||||||||
Dividends — Affiliated |
$ | 9 | $ | 43 | $ | 9 | $ | 56 | ||||||||
Interest — Unaffiliated |
128,973 | 130,757 | 167,532 | 215,509 | ||||||||||||
Securities lending income — Affiliated — net |
28 | 82 | 10 | 453 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total investment income |
129,010 | 130,882 | 167,551 | 216,018 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
EXPENSES |
||||||||||||||||
Investment advisory fees |
13,894 | 13,209 | 13,744 | 16,819 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
13,894 | 13,209 | 13,744 | 16,819 | ||||||||||||
Less: |
||||||||||||||||
Investment advisory fees waived |
(59 | ) | (93 | ) | (34 | ) | (138 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses after fees waived |
13,835 | 13,116 | 13,710 | 16,681 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income |
115,175 | 117,766 | 153,841 | 199,337 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments — Unaffiliated |
(7,793 | ) | (110,082 | ) | (26,543 | ) | (259,944 | ) | ||||||||
In-kind redemptions — Unaffiliated |
48,633 | 66,498 | 174,387 | 315,634 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized gain (loss) |
40,840 | (43,584 | ) | 147,844 | 55,690 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments — Unaffiliated |
(555,962 | ) | (577,405 | ) | (629,663 | ) | (627,887 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) |
(555,962 | ) | (577,405 | ) | (629,663 | ) | (627,887 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized and unrealized loss |
(515,122 | ) | (620,989 | ) | (481,819 | ) | (572,197 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (399,947 | ) | $ | (503,223 | ) | $ | (327,978 | ) | $ | (372,860 | ) | ||||
|
|
|
|
|
|
|
|
See notes to financial statements.
42 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Operations (continued)
Year Ended October 31, 2021
|
iShares
iBonds Dec 2029 Term Treasury ETF |
|
|
iShares
iBonds Dec 2030 Term Treasury ETF |
|
|
iShares
iBonds Dec 2031 Term Treasury ETF |
(a) | ||||
|
||||||||||||
INVESTMENT INCOME |
||||||||||||
Dividends — Affiliated. |
$ | 108 | $ | 1 | $ | — | ||||||
Interest — Unaffiliated |
159,543 | 24,437 | 10,265 | |||||||||
Securities lending income — Affiliated — net |
909 | 367 | 4 | |||||||||
|
|
|
|
|
|
|||||||
Total investment income |
160,560 | 24,805 | 10,269 | |||||||||
|
|
|
|
|
|
|||||||
EXPENSES |
||||||||||||
Investment advisory fees |
13,921 | 1,934 | 528 | |||||||||
|
|
|
|
|
|
|||||||
Total expenses |
13,921 | 1,934 | 528 | |||||||||
Less: |
||||||||||||
Investment advisory fees waived |
(225 | ) | (6 | ) | (2 | ) | ||||||
|
|
|
|
|
|
|||||||
Total expenses after fees waived |
13,696 | 1,928 | 526 | |||||||||
|
|
|
|
|
|
|||||||
Net investment income |
146,864 | 22,877 | 9,743 | |||||||||
|
|
|
|
|
|
|||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||
Net realized gain (loss) from: |
||||||||||||
Investments — Unaffiliated |
(3,205 | ) | (32,495 | ) | 2,149 | |||||||
In-kind redemptions — Unaffiliated |
(2,832 | ) | — | — | ||||||||
|
|
|
|
|
|
|||||||
Net realized gain (loss) |
(6,037 | ) | (32,495 | ) | 2,149 | |||||||
|
|
|
|
|
|
|||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||
Investments — Unaffiliated |
(1,040,934 | ) | (106,668 | ) | (31,666 | ) | ||||||
|
|
|
|
|
|
|||||||
Net change in unrealized appreciation (depreciation) |
(1,040,934 | ) | (106,668 | ) | (31,666 | ) | ||||||
|
|
|
|
|
|
|||||||
Net realized and unrealized loss |
(1,046,971 | ) | (139,163 | ) | (29,517 | ) | ||||||
|
|
|
|
|
|
|||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (900,107 | ) | $ | (116,286 | ) | $ | (19,774 | ) | |||
|
|
|
|
|
|
(a) |
For the period from July 13, 2021 (commencement of operations) to October 31, 2021. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
43 |
Statements of Changes in Net Assets
iShares iBonds Dec 2021 Term Treasury ETF |
iShares iBonds Dec 2022 Term Treasury ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
|
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
| |||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 3,032 | $ | 16,190 | $ | 43,067 | $ | 19,457 | ||||||||||||
Net realized gain |
76 | 32,180 | 1,788 | 13,626 | ||||||||||||||||
Net change in unrealized appreciation (depreciation) |
(775 | ) | 425 | (34,822 | ) | 38,771 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase in net assets resulting from operations |
2,333 | 48,795 | 10,033 | 71,854 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) |
||||||||||||||||||||
From net investment income and net realized gain |
(9,275 | ) | (15,564 | ) | (51,622 | ) | (17,117 | ) | ||||||||||||
Return of capital |
(900 | ) | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(10,175 | ) | (15,564 | ) | (51,622 | ) | (17,117 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase in net assets derived from capital share transactions |
34,224,979 | 10,109,907 | 77,542,926 | 3,776,813 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase in net assets |
34,217,137 | 10,143,138 | 77,501,337 | 3,831,550 | ||||||||||||||||
Beginning of period |
10,143,138 | — | 3,831,550 | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 44,360,275 | $ | 10,143,138 | $ | 81,332,887 | $ | 3,831,550 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
44 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares iBonds Dec 2023 Term Treasury ETF |
iShares iBonds Dec 2024 Term Treasury ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
|
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
| |||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 118,413 | $ | 58,517 | $ | 101,861 | $ | 52,334 | ||||||||||||
Net realized gain (loss) |
(13,574 | ) | 123 | (75,949 | ) | 11,978 | ||||||||||||||
Net change in unrealized appreciation (depreciation) |
(316,548 | ) | 194,253 | (350,886 | ) | 206,475 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets resulting from operations |
(211,709 | ) | 252,893 | (324,974 | ) | 270,787 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(114,767 | ) | (50,546 | ) | (110,304 | ) | (44,921 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase in net assets derived from capital share transactions |
51,326,943 | 17,793,712 | 34,727,789 | 12,738,445 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase in net assets |
51,000,467 | 17,996,059 | 34,292,511 | 12,964,311 | ||||||||||||||||
Beginning of period |
17,996,059 | — | 12,964,311 | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 68,996,526 | $ | 17,996,059 | $ | 47,256,822 | $ | 12,964,311 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
45 |
Statements of Changes in Net Assets (continued)
iShares iBonds Dec 2025 Term Treasury ETF |
iShares iBonds Dec 2026 Term Treasury ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
|
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
| |||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 115,175 | $ | 70,509 | $ | 117,766 | $ | 87,431 | ||||||||||||
Net realized gain (loss) |
40,840 | 2,956 | (43,584 | ) | (951 | ) | ||||||||||||||
Net change in unrealized appreciation (depreciation) |
(555,962 | ) | 293,011 | (577,405 | ) | 315,065 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets resulting from operations |
(399,947 | ) | 366,476 | (503,223 | ) | 401,545 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(114,346 | ) | (60,308 | ) | (121,486 | ) | (74,356 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
6,495,478 | 15,335,853 | (5,143,801 | ) | 21,902,972 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
5,981,185 | 15,642,021 | (5,768,510 | ) | 22,230,161 | |||||||||||||||
Beginning of period |
15,642,021 | — | 22,230,161 | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 21,623,206 | $ | 15,642,021 | $ | 16,461,651 | $ | 22,230,161 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
46 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares iBonds Dec 2027 Term Treasury ETF |
iShares iBonds Dec 2028 Term Treasury ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
|
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
| |||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 153,841 | $ | 50,587 | $ | 199,337 | $ | 57,478 | ||||||||||||
Net realized gain (loss) |
147,844 | (7,740 | ) | 55,690 | (4,276 | ) | ||||||||||||||
Net change in unrealized appreciation (depreciation) |
(629,663 | ) | 92,697 | (627,887 | ) | 79,599 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets resulting from operations |
(327,978 | ) | 135,544 | (372,860 | ) | 132,801 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(138,686 | ) | (43,399 | ) | (181,730 | ) | (49,188 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase in net assets derived from capital share transactions |
17,505,219 | 14,312,412 | 4,938,936 | 14,383,685 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase in net assets |
17,038,555 | 14,404,557 | 4,384,346 | 14,467,298 | ||||||||||||||||
Beginning of period |
14,404,557 | — | 14,467,298 | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 31,443,112 | $ | 14,404,557 | $ | 18,851,644 | $ | 14,467,298 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
47 |
Statements of Changes in Net Assets (continued)
iShares iBonds Dec 2029 Term Treasury ETF |
iShares iBonds Dec 2030 Term Treasury ETF |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
|
|
Year Ended 10/31/21 |
|
|
Period From 07/14/20 to 10/31/20 |
(a)
| |||||||||
|
||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||
Net investment income |
$ | 146,864 | $ | 98,923 | $ | 22,877 | $ | 3,938 | ||||||||||||
Net realized loss |
(6,037 | ) | (4,857 | ) | (32,495 | ) | (12,108 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) |
(1,040,934 | ) | 158,184 | (106,668 | ) | (37,502 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net increase (decrease) in net assets resulting from operations |
(900,107 | ) | 252,250 | (116,286 | ) | (45,672 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) |
||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(151,665 | ) | (84,237 | ) | (21,081 | ) | (2,617 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
(5,081,745 | ) | 23,477,309 | 1,171,868 | 2,506,431 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NET ASSETS |
||||||||||||||||||||
Total increase (decrease) in net assets |
(6,133,517 | ) | 23,645,322 | 1,034,501 | 2,458,142 | |||||||||||||||
Beginning of period |
23,645,322 | — | 2,458,142 | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
End of period |
$ | 17,511,805 | $ | 23,645,322 | $ | 3,492,643 | $ | 2,458,142 | ||||||||||||
|
|
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
48 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
iShares iBonds Dec 2031 Term Treasury ETF |
||||
|
|
|||
|
Period From 07/13/21 to 10/31/21 |
(a)
| ||
|
||||
INCREASE (DECREASE) IN NET ASSETS |
||||
OPERATIONS |
||||
Net investment income |
$ | 9,743 | ||
Net realized gain |
2,149 | |||
Net change in unrealized appreciation (depreciation) |
(31,666 | ) | ||
|
|
|||
Net decrease in net assets resulting from operations |
(19,774 | ) | ||
|
|
|||
DISTRIBUTIONS TO SHAREHOLDERS(b) |
||||
Decrease in net assets resulting from distributions to shareholders |
(5,964 | ) | ||
|
|
|||
CAPITAL SHARE TRANSACTIONS |
||||
Net increase in net assets derived from capital share transactions |
2,490,895 | |||
|
|
|||
NET ASSETS |
||||
Total increase in net assets |
2,465,157 | |||
Beginning of period |
— | |||
|
|
|||
End of period |
$ | 2,465,157 | ||
|
|
(a) |
Commencement of operations. |
(b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
49 |
(For a share outstanding throughout each period)
iShares iBonds Dec 2021 Term Treasury ETF | ||||||||
|
|
|||||||
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
| |||
|
||||||||
Net asset value, beginning of period |
$ | 25.36 | $ | 25.03 | ||||
|
|
|
|
|||||
Net investment income(b) |
0.00 | (c) | 0.06 | |||||
Net realized and unrealized gain(d) |
0.01 | 0.34 | ||||||
|
|
|
|
|||||
Net increase from investment operations |
0.01 | 0.40 | ||||||
|
|
|
|
|||||
Distributions(e) |
||||||||
From net investment income |
(0.01 | ) | (0.07 | ) | ||||
From net realized gain |
(0.01 | ) | — | |||||
Return of capital |
(0.00 | )(c) | — | |||||
|
|
|
|
|||||
Total distributions |
(0.02 | ) | (0.07 | ) | ||||
|
|
|
|
|||||
Net asset value, end of period |
$ | 25.35 | $ | 25.36 | ||||
|
|
|
|
|||||
Total Return(f) |
||||||||
Based on net asset value |
0.06 | % | 1.59 | %(g) | ||||
|
|
|
|
|||||
Ratios to Average Net Assets |
||||||||
Total expenses |
0.07 | % | 0.07 | %(h) | ||||
|
|
|
|
|||||
Total expenses after fees waived |
0.04 | % | 0.07 | %(h) | ||||
|
|
|
|
|||||
Net investment income |
0.01 | % | 0.33 | %(h) | ||||
|
|
|
|
|||||
Supplemental Data |
||||||||
Net assets, end of period (000) |
$ | 44,360 | $ | 10,143 | ||||
|
|
|
|
|||||
Portfolio turnover rate(i) |
0 | % | 32 | %(g) | ||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
Rounds to less than $0.01. |
(d) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(e) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(f) |
Where applicable, assumes the reinvestment of distributions. |
(g) |
Not annualized. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
50 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares iBonds Dec 2022 Term Treasury ETF | ||||||||
|
|
|||||||
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
| |||
|
||||||||
Net asset value, beginning of period |
$ | 25.54 | $ | 25.05 | ||||
|
|
|
|
|||||
Net investment income(b) |
0.02 | 0.13 | ||||||
Net realized and unrealized gain(c) |
0.01 | 0.47 | ||||||
|
|
|
|
|||||
Net increase from investment operations |
0.03 | 0.60 | ||||||
|
|
|
|
|||||
Distributions(d) |
||||||||
From net investment income |
(0.06 | ) | (0.11 | ) | ||||
From net realized gain |
(0.09 | ) | — | |||||
|
|
|
|
|||||
Total distributions |
(0.15 | ) | (0.11 | ) | ||||
|
|
|
|
|||||
Net asset value, end of period |
$ | 25.42 | $ | 25.54 | ||||
|
|
|
|
|||||
Total Return(e) |
||||||||
Based on net asset value |
0.09 | % | 2.41 | %(f) | ||||
|
|
|
|
|||||
Ratios to Average Net Assets |
||||||||
Total expenses |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Total expenses after fees waived |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Net investment income |
0.09 | % | 0.76 | %(g) | ||||
|
|
|
|
|||||
Supplemental Data |
||||||||
Net assets, end of period (000) |
$ | 81,333 | $ | 3,832 | ||||
|
|
|
|
|||||
Portfolio turnover rate(h) |
5 | % | 29 | %(f) | ||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
51 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares iBonds Dec 2023 Term Treasury ETF | ||||||||
|
|
|||||||
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
| |||
|
||||||||
Net asset value, beginning of period |
$ | 25.71 | $ | 24.99 | ||||
|
|
|
|
|||||
Net investment income(b) |
0.07 | 0.11 | ||||||
Net realized and unrealized gain (loss)(c) |
(0.15 | ) | 0.70 | |||||
|
|
|
|
|||||
Net increase (decrease) from investment operations |
(0.08 | ) | 0.81 | |||||
|
|
|
|
|||||
Distributions(d) |
||||||||
From net investment income |
(0.08 | ) | (0.09 | ) | ||||
|
|
|
|
|||||
Total distributions |
(0.08 | ) | (0.09 | ) | ||||
|
|
|
|
|||||
Net asset value, end of period |
$ | 25.55 | $ | 25.71 | ||||
|
|
|
|
|||||
Total Return(e) |
||||||||
Based on net asset value |
(0.30 | )% | 3.25 | %(f) | ||||
|
|
|
|
|||||
Ratios to Average Net Assets |
||||||||
Total expenses |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Total expenses after fees waived |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Net investment income |
0.28 | % | 0.63 | %(g) | ||||
|
|
|
|
|||||
Supplemental Data |
||||||||
Net assets, end of period (000) |
$ | 68,997 | $ | 17,996 | ||||
|
|
|
|
|||||
Portfolio turnover rate(h) |
10 | % | 1 | %(f) | ||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
52 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares iBonds Dec 2024 Term Treasury ETF | ||||||||
|
|
|||||||
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
| |||
|
||||||||
Net asset value, beginning of period |
$ | 25.93 | $ | 25.04 | ||||
|
|
|
|
|||||
Net investment income(b) |
0.12 | 0.12 | ||||||
Net realized and unrealized gain (loss)(c) |
(0.35 | ) | 0.87 | |||||
|
|
|
|
|||||
Net increase (decrease) from investment operations |
(0.23 | ) | 0.99 | |||||
|
|
|
|
|||||
Distributions(d) |
||||||||
From net investment income |
(0.14 | ) | (0.10 | ) | ||||
From net realized gain |
(0.02 | ) | — | |||||
|
|
|
|
|||||
Total distributions |
(0.16 | ) | (0.10 | ) | ||||
|
|
|
|
|||||
Net asset value, end of period |
$ | 25.54 | $ | 25.93 | ||||
|
|
|
|
|||||
Total Return(e) |
||||||||
Based on net asset value |
(0.90 | )% | 3.95 | %(f) | ||||
|
|
|
|
|||||
Ratios to Average Net Assets |
||||||||
Total expenses |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Total expenses after fees waived |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Net investment income |
0.46 | % | 0.69 | %(g) | ||||
|
|
|
|
|||||
Supplemental Data |
||||||||
Net assets, end of period (000) |
$ | 47,257 | $ | 12,964 | ||||
|
|
|
|
|||||
Portfolio turnover rate(h) |
112 | % | 7 | %(f) | ||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
53 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares iBonds Dec 2025 Term Treasury ETF | ||||||||
|
|
|||||||
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
| |||
|
||||||||
Net asset value, beginning of period |
$ | 26.07 | $ | 25.07 | ||||
|
|
|
|
|||||
Net investment income(b) |
0.15 | 0.13 | ||||||
Net realized and unrealized gain (loss)(c) |
(0.62 | ) | 0.97 | |||||
|
|
|
|
|||||
Net increase (decrease) from investment operations |
(0.47 | ) | 1.10 | |||||
|
|
|
|
|||||
Distributions(d) |
||||||||
From net investment income |
(0.16 | ) | (0.10 | ) | ||||
|
|
|
|
|||||
Total distributions |
(0.16 | ) | (0.10 | ) | ||||
|
|
|
|
|||||
Net asset value, end of period |
$ | 25.44 | $ | 26.07 | ||||
|
|
|
|
|||||
Total Return(e) |
||||||||
Based on net asset value |
(1.83 | )% | 4.39 | %(f) | ||||
|
|
|
|
|||||
Ratios to Average Net Assets |
||||||||
Total expenses |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Total expenses after fees waived |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Net investment income |
0.58 | % | 0.71 | %(g) | ||||
|
|
|
|
|||||
Supplemental Data |
||||||||
Net assets, end of period (000) |
$ | 21,623 | $ | 15,642 | ||||
|
|
|
|
|||||
Portfolio turnover rate(h) |
15 | % | 2 | %(f) | ||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
54 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares iBonds Dec 2026 Term Treasury ETF | ||||||||
|
|
|||||||
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
| |||
|
||||||||
Net asset value, beginning of period |
$ | 26.15 | $ | 25.02 | ||||
|
|
|
|
|||||
Net investment income(b) |
0.16 | 0.12 | ||||||
Net realized and unrealized gain (loss)(c) |
(0.82 | ) | 1.11 | |||||
|
|
|
|
|||||
Net increase (decrease) from investment operations |
(0.66 | ) | 1.23 | |||||
|
|
|
|
|||||
Distributions(d) |
||||||||
From net investment income |
(0.16 | ) | (0.10 | ) | ||||
|
|
|
|
|||||
Total distributions |
(0.16 | ) | (0.10 | ) | ||||
|
|
|
|
|||||
Net asset value, end of period |
$ | 25.33 | $ | 26.15 | ||||
|
|
|
|
|||||
Total Return(e) |
||||||||
Based on net asset value |
(2.55 | )% | 4.90 | %(f) | ||||
|
|
|
|
|||||
Ratios to Average Net Assets |
||||||||
Total expenses |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Total expenses after fees waived |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Net investment income |
0.62 | % | 0.69 | %(g) | ||||
|
|
|
|
|||||
Supplemental Data |
||||||||
Net assets, end of period (000) |
$ | 16,462 | $ | 22,230 | ||||
|
|
|
|
|||||
Portfolio turnover rate(h) |
41 | % | 5 | %(f) | ||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
55 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares iBonds Dec 2027 Term Treasury ETF | ||||||||
|
|
|||||||
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
| |||
|
||||||||
Net asset value, beginning of period |
$ | 26.19 | $ | 25.05 | ||||
|
|
|
|
|||||
Net investment income(b) |
0.20 | 0.12 | ||||||
Net realized and unrealized gain (loss)(c) |
(1.06 | ) | 1.11 | |||||
|
|
|
|
|||||
Net increase (decrease) from investment operations |
(0.86 | ) | 1.23 | |||||
|
|
|
|
|||||
Distributions(d) |
||||||||
From net investment income |
(0.18 | ) | (0.09 | ) | ||||
|
|
|
|
|||||
Total distributions |
(0.18 | ) | (0.09 | ) | ||||
|
|
|
|
|||||
Net asset value, end of period |
$ | 25.15 | $ | 26.19 | ||||
|
|
|
|
|||||
Total Return(e) |
||||||||
Based on net asset value |
(3.31 | )% | 4.92 | %(f) | ||||
|
|
|
|
|||||
Ratios to Average Net Assets |
||||||||
Total expenses |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Total expenses after fees waived |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Net investment income |
0.78 | % | 0.66 | %(g) | ||||
|
|
|
|
|||||
Supplemental Data |
||||||||
Net assets, end of period (000) |
$ | 31,443 | $ | 14,405 | ||||
|
|
|
|
|||||
Portfolio turnover rate(h) |
18 | % | 45 | %(f) | ||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
56 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares iBonds Dec 2028 Term Treasury ETF | ||||||||
|
|
|||||||
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
| |||
|
||||||||
Net asset value, beginning of period |
$ | 26.30 | $ | 25.14 | ||||
|
|
|
|
|||||
Net investment income(b) |
0.21 | 0.13 | ||||||
Net realized and unrealized gain (loss)(c) |
(1.17 | ) | 1.13 | |||||
|
|
|
|
|||||
Net increase (decrease) from investment operations |
(0.96 | ) | 1.26 | |||||
|
|
|
|
|||||
Distributions(d) |
||||||||
From net investment income |
(0.20 | ) | (0.10 | ) | ||||
|
|
|
|
|||||
Total distributions |
(0.20 | ) | (0.10 | ) | ||||
|
|
|
|
|||||
Net asset value, end of period |
$ | 25.14 | $ | 26.30 | ||||
|
|
|
|
|||||
Total Return(e) |
||||||||
Based on net asset value |
(3.71 | )% | 5.01 | %(f) | ||||
|
|
|
|
|||||
Ratios to Average Net Assets |
||||||||
Total expenses |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Total expenses after fees waived |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Net investment income |
0.83 | % | 0.71 | %(g) | ||||
|
|
|
|
|||||
Supplemental Data |
||||||||
Net assets, end of period (000) |
$ | 18,852 | $ | 14,467 | ||||
|
|
|
|
|||||
Portfolio turnover rate(h) |
73 | % | 10 | %(f) | ||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
57 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares iBonds Dec 2029 Term Treasury ETF | ||||||||
|
|
|||||||
|
Year Ended 10/31/21 |
|
|
Period From 02/25/20 to 10/31/20 |
(a)
| |||
|
||||||||
Net asset value, beginning of period |
$ | 26.27 | $ | 25.04 | ||||
|
|
|
|
|||||
Net investment income(b) |
0.19 | 0.14 | ||||||
Net realized and unrealized gain (loss)(c) |
(1.25 | ) | 1.20 | |||||
|
|
|
|
|||||
Net increase (decrease) from investment operations |
(1.06 | ) | 1.34 | |||||
|
|
|
|
|||||
Distributions(d) |
||||||||
From net investment income |
(0.19 | ) | (0.11 | ) | ||||
|
|
|
|
|||||
Total distributions |
(0.19 | ) | (0.11 | ) | ||||
|
|
|
|
|||||
Net asset value, end of period |
$ | 25.02 | $ | 26.27 | ||||
|
|
|
|
|||||
Total Return(e) |
||||||||
Based on net asset value |
(4.08 | )% | 5.35 | %(f) | ||||
|
|
|
|
|||||
Ratios to Average Net Assets |
||||||||
Total expenses |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Total expenses after fees waived |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Net investment income |
0.74 | % | 0.78 | %(g) | ||||
|
|
|
|
|||||
Supplemental Data |
||||||||
Net assets, end of period (000) |
$ | 17,512 | $ | 23,645 | ||||
|
|
|
|
|||||
Portfolio turnover rate(h) |
0 | %(i) | 19 | %(f) | ||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. (i) Rounds to less than 1%. |
See notes to financial statements.
58 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares iBonds Dec 2030 Term Treasury ETF |
||||||||
|
Year Ended 10/31/21 |
|
|
Period From 07/14/20 to 10/31/20 |
(a)
| |||
|
||||||||
Net asset value, beginning of period |
$ | 24.58 | $ | 25.06 | ||||
|
|
|
|
|||||
Net investment income(b) |
0.20 | 0.04 | ||||||
Net realized and unrealized loss(c) |
(1.32 | ) | (0.49 | ) | ||||
|
|
|
|
|||||
Net decrease from investment operations |
(1.12 | ) | (0.45 | ) | ||||
|
|
|
|
|||||
Distributions(d) |
||||||||
From net investment income |
(0.18 | ) | (0.03 | ) | ||||
|
|
|
|
|||||
Total distributions |
(0.18 | ) | (0.03 | ) | ||||
|
|
|
|
|||||
Net asset value, end of period |
$ | 23.28 | $ | 24.58 | ||||
|
|
|
|
|||||
Total Return(e) |
||||||||
Based on net asset value |
(4.58 | )% | (1.81 | )%(f) | ||||
|
|
|
|
|||||
Ratios to Average Net Assets |
||||||||
Total expenses |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Total expenses after fees waived |
0.07 | % | 0.07 | %(g) | ||||
|
|
|
|
|||||
Net investment income |
0.83 | % | 0.53 | %(g) | ||||
|
|
|
|
|||||
Supplemental Data |
||||||||
Net assets, end of period (000) |
$ | 3,493 | $ | 2,458 | ||||
|
|
|
|
|||||
Portfolio turnover rate(h) |
37 | % | 36 | %(f) | ||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
59 |
Financial Highlights (continued)
(For a share outstanding throughout the period)
iShares iBonds Dec 2031 Term Treasury ETF |
||||
|
Period From 07/13/21 to 10/31/21 |
(a)
| ||
|
||||
Net asset value, beginning of period |
$ | 24.91 | ||
|
|
|||
Net investment income(b) |
0.10 | |||
Net realized and unrealized loss(c) |
(0.30 | ) | ||
|
|
|||
Net decrease from investment operations |
(0.20 | ) | ||
|
|
|||
Distributions(d) |
||||
From net investment income |
(0.06 | ) | ||
|
|
|||
Total distributions |
(0.06 | ) | ||
|
|
|||
Net asset value, end of period |
$ | 24.65 | ||
|
|
|||
Total Return(e) |
||||
Based on net asset value |
(0.81 | )%(f) | ||
|
|
|||
Ratios to Average Net Assets |
||||
Total expenses |
0.07 | %(g) | ||
|
|
|||
Total expenses after fees waived |
0.07 | %(g) | ||
|
|
|||
Net investment income |
1.29 | %(g) | ||
|
|
|||
Supplemental Data |
||||
Net assets, end of period (000) |
$ | 2,465 | ||
|
|
|||
Portfolio turnover rate(h) |
26 | %(f) | ||
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
60 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements |
1. ORGANIZATION
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):
iShares ETF | Diversification Classification | |
iBonds Dec 2021 Term Treasury |
Non-diversified | |
iBonds Dec 2022 Term Treasury |
Non-diversified | |
iBonds Dec 2023 Term Treasury |
Non-diversified | |
iBonds Dec 2024 Term Treasury |
Non-diversified | |
iBonds Dec 2025 Term Treasury |
Non-diversified | |
iBonds Dec 2026 Term Treasury |
Non-diversified | |
iBonds Dec 2027 Term Treasury |
Non-diversified | |
iBonds Dec 2028 Term Treasury |
Non-diversified | |
iBonds Dec 2029 Term Treasury |
Non-diversified | |
iBonds Dec 2030 Term Treasury |
Diversified | |
iBonds Dec 2031 Term Treasury(a) |
Diversified |
(a) |
The Fund commenced operation on July 13, 2021. |
2. SIGNIFICANT ACCOUNTING POLICIES
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• |
Fixed-income investments for which market quotations are readily available are generally valued using the last available bid price or current market quotations provided by independent dealers or third-party pricing services. Pricing services generally value fixed income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent |
N O T E S T O F I N A N C I A L S T A T E M E N T S |
61 |
Notes to Financial Statements (continued)
representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value. |
• |
Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• |
Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access; |
• |
Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and |
• |
Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. SECURITIES AND OTHER INVESTMENTS
Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.
Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral
62 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (continued)
received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
iShares ETF and Counterparty |
|
Market Value of Securities on Loan |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received |
|
Net Amount | ||||||
iBonds Dec 2022 Term Treasury |
||||||||||||||||
J.P. Morgan Securities LLC |
$ | 5,709,525 | $ | 5,709,525 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
iBonds Dec 2030 Term Treasury |
||||||||||||||||
Barclays Capital, Inc |
$ | 600,648 | $ | 600,648 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
(a) |
Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee of 0.07%, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund.
Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses, if any, is a fund’s total annual operating expenses. Total expenses as shown in the Statement of Operations does not include acquired fund fees and expenses.
BFA has contractually agreed to waive a portion of its investment advisory fee for each Fund through the termination date of such Fund, in an amount equal to acquired fund fees and expenses, if any, attributable to each Fund’s investments in other funds advised by BFA or its affiliates.
These amounts are included in investment advisory fees waived in the Statements of Operations. For the year ended October 31, 2021, the amounts waived in investment advisory fees pursuant to this arrangement were as follows:
iShares ETF | Amounts waived | |||
iBonds Dec 2021 Term Treasury |
$ | 7,655 | ||
iBonds Dec 2022 Term Treasury |
690 | |||
iBonds Dec 2023 Term Treasury |
616 | |||
iBonds Dec 2024 Term Treasury |
136 | |||
iBonds Dec 2025 Term Treasury |
59 | |||
iBonds Dec 2026 Term Treasury |
93 | |||
iBonds Dec 2027 Term Treasury |
34 | |||
iBonds Dec 2028 Term Treasury |
138 | |||
iBonds Dec 2029 Term Treasury |
225 | |||
iBonds Dec 2030 Term Treasury |
6 | |||
iBonds Dec 2031 Term Treasury |
2 |
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees
N O T E S T O F I N A N C I A L S T A T E M E N T S |
63 |
Notes to Financial Statements (continued)
each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the year ended October 31, 2021, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF | Fees Paid to BTC |
|||
iBonds Dec 2021 Term Treasury |
$ | 5 | ||
iBonds Dec 2022 Term Treasury |
53 | |||
iBonds Dec 2023 Term Treasury |
8 | |||
iBonds Dec 2024 Term Treasury |
219 | |||
iBonds Dec 2025 Term Treasury |
13 | |||
iBonds Dec 2026 Term Treasury |
35 | |||
iBonds Dec 2027 Term Treasury |
5 | |||
iBonds Dec 2028 Term Treasury |
195 | |||
iBonds Dec 2029 Term Treasury |
386 | |||
iBonds Dec 2030 Term Treasury |
165 | |||
iBonds Dec 2031 Term Treasury |
1 |
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the Statements of Operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
6. PURCHASES AND SALES
For the year ended October 31, 2021, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:
U.S. Government Securities | ||||||||
iShares ETF | Purchases | Sales | ||||||
iBonds Dec 2021 Term Treasury |
$ | — | $ | 2,720,230 | ||||
iBonds Dec 2022 Term Treasury |
5,055,478 | 2,390,304 | ||||||
iBonds Dec 2023 Term Treasury |
6,186,211 | 4,040,052 | ||||||
iBonds Dec 2024 Term Treasury |
26,216,266 | 25,637,129 | ||||||
iBonds Dec 2025 Term Treasury |
3,151,587 | 2,976,814 | ||||||
iBonds Dec 2026 Term Treasury |
7,878,028 | 7,608,431 | ||||||
iBonds Dec 2027 Term Treasury |
3,871,889 | 3,731,628 | ||||||
iBonds Dec 2028 Term Treasury |
17,581,173 | 16,924,826 | ||||||
iBonds Dec 2029 Term Treasury |
373,451 | 63,175 | ||||||
iBonds Dec 2030 Term Treasury |
1,027,147 | 1,028,757 | ||||||
iBonds Dec 2031 Term Treasury |
1,889,159 | 640,838 |
64 |
2 0 2 1 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (continued)
For the year ended October 31, 2021, in-kind transactions were as follows:
iShares ETF | In-kind Purchases |
In-kind Sales |
||||||
iBonds Dec 2021 Term Treasury |
$ | 23,168,058 | $ | — | ||||
iBonds Dec 2022 Term Treasury |
76,249,167 | — | ||||||
iBonds Dec 2023 Term Treasury |
49,742,850 | — | ||||||
iBonds Dec 2024 Term Treasury |
34,350,903 | — | ||||||
iBonds Dec 2025 Term Treasury |
8,995,635 | 2,545,551 | ||||||
iBonds Dec 2026 Term Treasury |
— | 5,075,859 | ||||||
iBonds Dec 2027 Term Treasury |
30,255,628 | 12,820,233 | ||||||
iBonds Dec 2028 Term Treasury |
31,603,044 | 26,832,299 | ||||||
iBonds Dec 2029 Term Treasury |
2,544,344 | 7,528,650 | ||||||
iBonds Dec 2030 Term Treasury |
1,162,544 | — | ||||||
iBonds Dec 2031 Term Treasury |
1,230,473 | — |
7. INCOME TAX INFORMATION
Each Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of October 31, 2021, permanent differences attributable to realized gains (losses) from in-kind redemptions were reclassified to the following accounts:
iShares ETF | Paid-in Capital | Accumulated Earnings (Loss) |
||||||
iBonds Dec 2025 Term Treasury |
$ | 48,633 | $ | (48,633 | ) | |||
iBonds Dec 2026 Term Treasury |
66,379 | (66,379 | ) | |||||
iBonds Dec 2027 Term Treasury |
174,387 | (174,387 | ) | |||||
iBonds Dec 2028 Term Treasury |
279,127 | (279,127 | ) | |||||
iBonds Dec 2029 Term Treasury |
(2,854 | ) | 2,854 |
The tax character of distributions paid was as follows:
iShares ETF | Year Ended 10/31/21 |
Period Ended 10/31/20 |
||||||
iBonds Dec 2021 Term Treasury |
||||||||
Ordinary income |
$ | 9,275 | $ | 15,564 | ||||
Return of capital |
900 | — | ||||||
|
|
|
|
|||||
$ | 10,175 | $ | 15,564 | |||||
|
|
|
|
|||||
iBonds Dec 2022 Term Treasury |
||||||||
Ordinary income |
$ | 51,622 | $ | 17,117 | ||||
|
|
|
|
|||||
iBonds Dec 2023 Term Treasury |
||||||||
Ordinary income |
$ | 114,767 | $ | 50,546 | ||||
|
|
|
|
|||||
iBonds Dec 2024 Term Treasury |
||||||||
Ordinary income |
$ | 110,304 | $ | 44,921 | ||||
|
|
|
|
|||||
iBonds Dec 2025 Term Treasury |
||||||||
Ordinary income |
$ | 114,346 | $ | 60,308 | ||||
|
|
|
|
|||||
iBonds Dec 2026 Term Treasury |
||||||||
Ordinary income |
$ | 121,486 | $ | 74,356 | ||||
|
|
|
|
|||||
iBonds Dec 2027 Term Treasury |
||||||||
Ordinary income |
$ | 138,686 | $ | 43,399 | ||||
|
|
|
|
|||||
iBonds Dec 2028 Term Treasury |
||||||||
Ordinary income |
$ | 181,730 | $ | 49,188 | ||||
|
|
|
|
N O T E S T O F I N A N C I A L S T A T E M E N T S |
65 |