MARCH 31, 2023



2023 Annual Report



iShares Trust

·  iShares Preferred and Income Securities ETF | PFF | NASDAQ

The Markets in Review

Dear Shareholder,

Significant economic headwinds emerged during the 12-month reporting period ended March 31, 2023, as investors navigated changing economic conditions and volatile markets. The U.S. economy shrank in the first half of 2022 before returning to modest growth in the second half of the year, marking a shift to a more challenging post-reopening economic environment. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high before beginning to moderate.

Equity prices fell as interest rates rose, particularly during the first half of the reporting period. Both large- and small-capitalization U.S. stocks declined, although equities began to recover in the second half of the period as inflation eased and economic growth resumed. Emerging market stocks and international equities from developed markets declined overall, pressured by rising interest rates and volatile commodities prices.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to fluctuating inflation data and attempted to anticipate its impact on future interest rate changes. The corporate bond market also faced inflationary headwinds, and higher interest rates led to rising borrowing costs for corporate issuers.

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation has been more persistent than expected, raised interest rates eight times. Furthermore, the Fed wound down its bond-buying programs and accelerated the reduction of its balance sheet.

Restricted labor supply kept inflation elevated even as other inflation drivers, such as goods prices and energy costs, moderated. While economic growth slowed in the last year, we believe that taming inflation requires a more substantial decline that lowers demand to a level more in line with the economy’s productive capacity. Although the Fed has decelerated the pace of interest rate hikes, we believe that it still seems determined to get inflation back to target. With this in mind, we believe the possibility of a U.S. recession in the near-term is high, but the dimming economic outlook has not yet been fully reflected in current market prices. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt to rapidly changing conditions. Turmoil in the banking sector late in the period highlighted the potential for the knock-on effects of substantially higher interest rates to disrupt markets with little warning.

While we favor an overweight to equities in the long term, we prefer an underweight stance on equities overall in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with the possibility of a recession. Nevertheless, we are overweight on emerging market stocks as we believe a weakening U.S. dollar provides a supportive backdrop. We also see long-term opportunities in credit, where we believe that valuations are appealing and higher yields provide attractive income, although we are neutral on credit in the near term, as we’re concerned about tightening credit and financial conditions. However, we believe there are still some strong opportunities for a six- to twelve-month horizon, particularly short-term U.S. Treasuries, global inflation-linked bonds, and emerging market bonds denominated in local currency.

Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.




Rob Kapito

President, BlackRock, Inc.


Rob Kapito

President, BlackRock, Inc.


Total Returns as of March 31, 2023
     6-Month    12-Month

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

  15.62%     (7.73)%

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

    9.14      (11.61)   

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

  27.27        (1.38)   

Emerging market equities
(MSCI Emerging Markets Index)

  14.04      (10.70)   

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

    1.93         2.52   

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

    4.38        (6.90)   

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

    4.89        (4.78)   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

    7.00         0.26   

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

    7.88        (3.35)   

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




H I S  A G E   I S  O T  A R T   O F  O U R  U N D  E P O R T

Table of Contents



The Markets in Review


Annual Report:


Market Overview


Fund Summary


About Fund Performance


Disclosure of Expenses


Schedule of Investments


Financial Statements:


Statement of Assets and Liabilities


Statement of Operations


Statements of Changes in Net Assets


Financial Highlights


Notes to Financial Statements


Report of Independent Registered Public Accounting Firm


Important Tax Information


Statement Regarding Liquidity Risk Management Program


Supplemental Information


Trustee and Officer Information


General Information


Glossary of Terms Used in this Report





Market Overview


iShares Trust

Domestic Market Overview

U.S. stocks declined for the 12 months ended March 31, 2023 (“reporting period”), when the Russell 3000® Index, a broad measure of U.S. equity market performance, returned -8.58%. Elevated inflation and rapid tightening of monetary policy dampened growth and weighed on equities. Higher interest rates drove bond yields higher and increased borrowing costs for businesses and consumers. Equities began to recover in the second half of the reporting period, as the broader economy remained resilient and the pace of inflation declined. In March 2023, two banks suddenly failed, representing the second and third largest bank failures in U.S. history by asset value. This drove concern among investors about the resiliency of the financial system in the face of rapidly rising interest rates. However, government agencies acted swiftly to organize a sale of the failed banks’ assets and inject liquidity, and equity prices recovered.

Inflation was a significant driver of the economic outlook. As the reporting period began, the consumer price index, a widely followed measure of inflation, stood at multi-decade highs. Strong consumer spending and a tight labor market, along with continued supply chain disruptions in Asia, combined to drive prices higher. But the rate of inflation began to decline as the reporting period wore on, decelerating for nine consecutive months beginning in July 2022. Nonetheless, inflation remained elevated by historic standards, and higher prices negatively impacted both consumers and businesses.

The U.S. economy recovered from a decline in the first half of 2022 to post modest growth in the third and fourth quarters of 2022. Consumers continued to power the economy with growing spending, despite higher prices for many consumer goods and services. The strong labor market supported spending, as unemployment remained very low, at one point dropping to the lowest recorded level since 1969. Furthermore, the labor force participation rate—which measures the total proportion of employed persons of working age—rose, indicating that more people were being drawn into the labor force. Amid tightening labor supply, wages rose significantly, with the largest gains at the lower end of the wage spectrum.

To contain inflation, the U.S. Federal Reserve (“Fed”) tightened monetary policy rapidly, raising short-term interest rates eight times over the course of the reporting period. The pace of tightening accelerated as the Fed twice stepped up the increment of increase before reducing it again as inflation began to subside. The Fed also started to reduce the size of its balance sheet by reducing the store of U.S. Treasuries it had accumulated to stabilize markets in the early phases of the coronavirus pandemic. While the Fed indicated that more tightening could be needed to achieve its long-term inflation goal, it sounded a more cautious note about the potential for further interest rate increases near the end of the reporting period.

Despite economic headwinds, corporate profits remained robust, and many companies were able to sufficiently raise prices to preserve profit margins even in the face of rising labor and input costs. Nonetheless, profits declined overall in the fourth quarter of 2022, and the yield curve (a graphical representation of U.S. Treasury rates at different maturities) inverted, a sign that markets were concerned about the impact of higher borrowing costs on the economy. Furthermore, dwindling personal savings and rising household debt raised questions about the sustainability of consumer spending as an engine of economic growth.




2 0 2 3   B L A C K O C K   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 March 31, 2023    iShares® Preferred and Income Securities ETF


Investment Objective

The iShares Preferred and Income Securities ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated preferred and hybrid securities, as represented by the ICE Exchange-Listed Preferred & Hybrid Securities Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment portfolio 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.



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

Fund NAV

    (8.99 )%      1.64     3.09     (8.99 )%      8.48     35.53

Fund Market

    (8.96     1.65       3.08       (8.96     8.51       35.40  


    (8.66     2.28       3.73       (8.66     11.93       44.17  







Index performance through January 31, 2019 reflects the performance of the S&P U.S. Preferred Stock Index. Index performance beginning on February 1, 2019 through October 31, 2019 reflects the performance of the ICE Exchange-Listed Preferred & Hybrid Securities Transition Index, which terminated on October 31, 2019. Index performance beginning on November 1, 2019 reflects the performance of the ICE Exchange-Listed Preferred & Hybrid Securities 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 7 for more information.

Expense Example


Actual           Hypothetical 5% Return         


Account Value







        Account Value







      Paid During

the Period






Account Value







        Account Value







      Paid During

the Period








  $        1,000.00        $       1,017.30          $          2.31               $       1,000.00          $        1,022.65          $          2.32        0.46% 



Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.




U N D   S U M M A R Y


Fund Summary as of March 31, 2023 (continued)    iShares® Preferred and Income Securities ETF


Portfolio Management Commentary

U.S. dollar-denominated preferred stocks posted a notable decline for the reporting period. Preferred stock typically pays a steady stream of dividends; therefore, its value is sensitive to prevailing interest rates. When interest rates rise, the dividends paid on preferred stock become relatively less attractive to investors, which weighs on its value. During the reporting period, the Fed raised short-term interest rates eight times and bond yields rose substantially. The value of preferred and hybrid securities is also influenced by the financial conditions of the issuing company, and the negative performance of some companies represented in the Index during the reporting period also negatively impacted the Index’s return.

The financials sector, representing approximately 58% of the Index on average for the reporting period, detracted the most from the Index’s return. In particular, preferred stock issued by banks, which tend to issue high levels of preferred stock due to regulatory capital requirements, declined. Because preferred stock is classified as equity rather than debt on balance sheets, it can be a useful tool to meet target capital ratios.

Late in the reporting period, the failure of two banks represented in the Index negatively impacted the Index’s performance. The banks were unable to meet a surge in customer deposit withdrawals and the government intervened to help depositors and provide liquidity in order to maintain the stability of the financial system. While the government arranged for the sale of both banks’ assets to other institutions, the disruption created by the failures led to increased scrutiny of the industry by investors. The information technology sector also declined, primarily due to weakness in the semiconductors and semiconductor equipment industry.

Portfolio Information




Sector   Percent of   
Total Investments(a)





Real Estate


Communication Services


Consumer Discretionary


Health Care






Consumer Staples




Other (each representing less than 1%)




Excludes money market funds.



Security   Percent of   
Total Investments(a)

Wells Fargo & Co., Series L, NVS


Citigroup Capital XIII, (3-mo. USD LIBOR + 6.370%), NVS


PG&E Corp.


Danaher Corp., Series B, NVS


Bank of America Corp., Series L, NVS


NextEra Energy, Inc.


NextEra Energy, Inc.


ArcelorMittal SA


JPMorgan Chase & Co., Series EE, NVS


JPMorgan Chase & Co., Series DD, NVS





2 0 2 3   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

About Fund Performance


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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

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

Disclosure of Expenses

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

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

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

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



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


Schedule of Investments

March 31, 2023


iShares® Preferred and Income Securities ETF

(Percentages shown are based on Net Assets)


Security   Shares     Value  

Preferred Securities

Preferred Stocks — 98.8%            
Automobile Components — 0.8%            

Aptiv PLC, Series A, 5.50%, NVS(a)

    869,844     $ 106,764,653  



Automobiles — 1.2%            

Ford Motor Co.



    2,420,405       59,566,167  

6.50%, NVS

    1,815,445       44,387,630  


    2,269,113       56,841,281  



Banks — 25.3%            

Associated Banc-Corp
(5 year CMT + 2.812%), 6.63%(b)

    907,901       21,553,570  

Series E, 5.88%, NVS(c)(d)

    308,000       5,753,440  

Series F, 5.63%, NVS(c)

    308,354       6,000,569  

Atlantic Union Bankshares Corp., Series A, 6.88%, NVS(c)

    515,337       11,172,506  

Bank of America Corp.


Series 02, (3-mo. USD LIBOR + 0.650%), 5.60%, NVS(b)(c)

    539,808       11,325,172  

Series 4, (3-mo. USD LIBOR + 0.750%), 5.70%, NVS(b)(c)

    375,126       8,173,996  

Series 5, (3-mo. USD LIBOR + 0.500%), 5.42%, NVS(b)(c)(d)

    756,493       15,417,327  

Series E, (3-mo. USD LIBOR + 0.350%), 5.21%, NVS(b)(c)

    565,988       12,010,265  

Series GG, 6.00%(c)

    2,460,018       60,541,043  

Series HH, 5.88%, NVS(c)(d)

    1,546,906       37,032,930  

Series K*, (3-mo. USD LIBOR + 1.327%), 6.45%(b)

    1,912,332       47,827,423  

Series KK, 5.38%, NVS(c)

    2,539,023       58,321,358  

Series L, 7.25%, NVS(a)(c)

    140,486           164,053,931  

Series LL, 5.00%, NVS(c)

    2,377,046       50,654,850  

Series NN, 4.38%, NVS(c)

    1,961,127       36,418,128  

Series PP, 4.13%, NVS(c)

    1,656,337       29,002,461  

Series QQ, 4.25%, NVS(c)

    2,361,354       42,929,416  

Series SS, 4.75%, NVS(c)(d)

    1,247,508       25,848,366  

Bank of Hawaii Corp., Series A, 4.38%, NVS(c)

    547,620       9,052,159  

Bank OZK, Series A, 4.63%, NVS(c)

    1,058,891       16,878,723  

Cadence Bank, Series A, 5.50%, NVS(c)

    525,808       11,057,742  

Citigroup, Inc.


Series J, (3-mo. USD LIBOR + 4.040%), 7.13%(b)(c)(d)

    2,874,236       71,942,127  

Series K, (3-mo. USD LIBOR + 4.130%), 6.88%, NVS(b)(c)(d)

    4,523,227       112,130,797  

Citizens Financial Group, Inc.


Series D, (3-mo. USD LIBOR + 3.642%), 6.35%, NVS(b)(c)

    907,685       21,366,905  

Series E, 5.00%, NVS(c)

    1,361,467       26,888,973  

ConnectOne Bancorp, Inc., Series A, (5 year CMT + 4.420%), 5.25%, NVS(b)(c)

    354,466       5,685,635  

Cullen/Frost Bankers, Inc., Series B, 4.45%, NVS(c)

    456,773       8,765,474  

Dime Community Bancshares, Inc., 5.50%, NVS(c)

    400,847       7,014,823  

Fifth Third Bancorp


Series A, 6.00%, NVS(c)(d)

    605,538       13,975,817  

Series I, (3-mo. USD LIBOR + 3.710%), 6.63%, NVS(b)(c)

    1,361,466       32,280,359  

Series K, 4.95%, NVS(c)

    756,360       16,420,576  

First Citizens BancShares, Inc.


Series A, 5.38%, NVS(c)

    1,043,773       22,722,938  
Security   Shares     Value  
Banks (continued)            

First Citizens BancShares, Inc.


Series C, 5.63%, NVS(c)

    605,857     $ 13,038,043  

First Horizon Corp.
6.50%, NVS(c)

    449,995       9,940,390  

Series D, (3-mo. USD LIBOR + 3.859%), 6.10%(b)(c)

    302,580       6,596,244  

Series F, 4.70%(c)

    449,995       8,635,404  

First Republic Bank


Series H, 5.13%, NVS(c)(d)

    596,244       3,708,638  

Series I, 5.50%, NVS(c)(d)

    900,383       5,654,405  

Series J, 4.70%, NVS(c)

    1,208,629       6,889,185  

Series K, 4.13%(c)(d)

    1,524,903       8,127,733  

Series L, 4.25%(c)

    2,266,498       12,080,434  

Series M, 4.00%(c)(d)

    2,274,773       12,147,288  

Series N, 4.50%(c)

    2,243,500       12,496,295  

FNB Corp., (3-mo. USD LIBOR + 4.600%), 7.25%, NVS(b)(c)(d)

    335,478       8,115,213  

Fulton Financial Corp., Series A, 5.13%, NVS(c)

    607,412       10,101,262  

Hancock Whitney Corp., 6.25%

    517,444       12,573,889  

Heartland Financial U.S.A., Inc., Series E, (5 year CMT + 6.675%), 7.00%, NVS(b)(c)

    350,469       8,463,826  

Huntington Bancshares, Inc.


Series C, 5.70%, NVS(c)

    531,235       11,628,734  

Series H, 4.50%, NVS(c)(d)

    1,512,791       27,668,947  

Series J, 6.88%, NVS(b)(c)

    983,521       23,929,066  

JPMorgan Chase & Co.


Series DD, 5.75%, NVS(c)

    4,534,083           112,944,008  

Series EE, 6.00%, NVS(c)(d)

    5,121,594       128,961,737  

Series GG, 4.75%, NVS(c)

    2,395,315       51,762,757  

Series JJ, 4.55%, NVS(c)

    4,149,524       87,637,947  

Series LL, 4.63%, NVS(c)

    5,119,984       108,134,062  

Series MM, 4.20%, NVS(c)(d)

    5,535,196       109,430,825  



(5 year CMT + 3.132%), 6.20%, NVS(b)(c)

    1,815,298       40,535,604  

Series E, (3-mo. USD LIBOR + 3.892%), 6.13%, NVS(b)(c)

    1,512,791       35,414,437  

Series F, 5.65%, NVS(c)

    1,285,853       26,501,430  

Series G, 5.63%, NVS(c)

    1,361,466       29,870,564  

M&T Bank Corp., Series H, (3-mo. USD LIBOR + 4.020%), 5.63%, NVS(b)(c)

    756,360       18,500,566  

Midland States Bancorp, Inc., (5 year CMT + 4.713%), 7.75%, NVS(b)(c)

    350,463       7,829,343  

New York Community Bancorp, Inc., Series A., (3-mo. USD LIBOR + 3.821%), 6.38%, NVS(b)(c)(d)

    1,558,122       36,054,943  

New York Community Capital Trust V, 6.00%, NVS(a)

    220,626       8,538,226  

Old National Bancorp


Series A, 7.00%, NVS(c)

    329,722       8,015,542  

Series C, 7.00%, NVS(c)

    372,696       9,093,782  

PacWest Bancorp, Series A, (5 year CMT + 4.820%), 7.75%, NVS(b)(c)

    1,552,844       22,997,620  

Pinnacle Financial Partners, Inc., Series B, 6.75%, NVS(c)

    680,769       16,440,571  

Popular Capital Trust II, 6.13%

    303,068       7,867,645  

Regions Financial Corp.


Series B, (3-mo. USD LIBOR + 3.536%), 6.38%, NVS(b)(c)

    1,512,791       35,626,228  

Series C, (3-mo. USD LIBOR + 3.148%), 5.70%, NVS(b)(c)

    1,512,791       32,403,983  

Series E, 4.45%, NVS(c)

    1,210,191       21,359,871  




2 0 2 3   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  (continued)

March 31, 2023


iShares® Preferred and Income Securities ETF

(Percentages shown are based on Net Assets)


Security   Shares     Value  
Banks (continued)            

Synovus Financial Corp.


Series D, (3-mo. USD LIBOR + 3.352%), 6.30%, NVS(b)(c)(d)

    605,498     $ 13,750,860  

Series E, (5 year CMT + 4.127%), 5.88%, NVS(b)(c)

    1,058,938       22,978,955  

Texas Capital Bancshares, Inc., Series B, 5.75%, NVS(c)

    907,685       17,200,631  

Truist Financial Corp.


Series I, (3-mo. USD LIBOR + 0.530%), 5.40%, NVS(b)(c)

    523,733       10,893,646  

Series O, 5.25%, NVS(c)

    1,739,636       40,133,403  

Series R, 4.75%, NVS(c)

    2,798,576       59,301,825  

U.S. Bancorp


Series A, (3-mo. USD LIBOR + 1.020%), 5.85%, NVS(b)(c)

    43,477       32,607,750  

Series B*, (3-mo. USD LIBOR + 0.600%), 5.39%, NVS(b)(c)

    3,025,489       57,847,350  

Series K, 5.50%, NVS(c)

    1,739,635       42,916,795  

Series L, 3.75%, NVS(c)

    1,512,791       26,927,680  

Series M, 4.00%, NVS(c)(d)

    2,269,152       42,206,227  

Series O, 4.50%, NVS(c)

    1,361,467       28,781,412  

United Community Banks, Inc., Series I, 6.88%, NVS(c)

    304,694       6,767,254  

Valley National Bancorp


Series A, (3-mo. USD LIBOR + 3.850%), 6.25%, NVS(b)(c)

    351,039       7,435,006  

Series B, (3-mo. USD LIBOR + 3.578%), 8.83%, NVS(b)(c)(d)

    306,328       7,057,797  

Washington Federal, Inc., Series A, 4.88%, NVS(c)

    896,223       14,518,813  

Webster Financial Corp.


Series F, 5.25%, NVS(c)(d)

    449,995       7,784,914  

Series G, 6.50%(c)

    411,345       8,457,253  

Wells Fargo & Co.


Series AA, 4.70%, NVS(c)

    2,344,503       44,287,662  

Series CC, 4.38%, NVS(c)

    2,099,236       36,925,561  

Series DD, 4.25%, NVS(c)

    2,504,013       43,069,024  

Series L, 7.50%, NVS(a)(c)

    204,342       240,357,277  

Series Q, (3-mo. USD LIBOR + 3.090%), 5.85%, NVS(b)(c)

    3,546,392       82,489,078  

Series R, (3-mo. USD LIBOR + 3.690%), 6.63%, NVS(b)(c)(d)

    1,721,765       41,838,889  

Series Y, 5.63%, NVS(c)(d)

    1,411,929       32,191,981  

Series Z, 4.75%, NVS(c)

    4,136,893       79,469,715  

WesBanco, Inc., Series A, (5 year CMT + 6.557%), 6.75%, NVS(b)(c)

    449,995       10,390,385  

Western Alliance Bancorp, Series A, (5 year CMT + 3.452%), 4.25%, NVS(b)(c)

    909,997       12,375,959  

Wintrust Financial Corp.


Series D, (3-mo. USD LIBOR + 4.060%), 6.50%, NVS(b)(c)

    380,452       8,963,449  

Series E, (5 year CMT + 6.507%), 6.88%, NVS(b)(c)(d)

    869,842       19,762,810  

Zions Bancorp N.A., Series G, (3-mo. USD LIBOR + 4.240%), 9.11%, NVS(b)(c)

    420,749       10,262,068  



Broadline Retail — 0.5%            

Dillard’s Capital Trust I, 7.50%(d)

    605,107       15,599,658  

Qurate Retail, Inc., 8.00%(d)

    958,602       28,096,625  
Security   Shares     Value  
Broadline Retail (continued)            

QVC, Inc.



    1,517,797     $ 12,840,563  


    688,003       5,813,625  



Capital Markets — 11.4%            

Affiliated Managers Group, Inc.

    608,349       9,715,334  


    832,403       14,949,958  


    907,672       20,994,453  

B Riley Financial, Inc.

    508,197       9,579,513  


    718,971       12,121,851  


    647,196       12,335,556  


    956,905       15,530,568  


    997,988       17,574,569  


    336,405       7,989,619  


    433,640       9,383,970  

Brookfield Finance I UK PLC, 4.50%(c)

    698,556       10,275,759  

Brookfield Finance, Inc., Series 50, 4.63%, NVS

    1,210,191       18,624,839  

Carlyle Finance LLC, 4.63%, NVS

    1,512,791       27,835,354  

Charles Schwab Corp.


Series D, 5.95%, NVS(c)(d)

    2,269,151       52,258,548  

Series J, 4.45%, NVS(c)

    1,815,298       35,071,557  

Cowen, Inc., 7.75%

    294,707       7,432,511  

Crescent Capital BDC, Inc., 5.00%

    340,611       7,823,835  

Gladstone Investment Corp.
5.00%, NVS

    389,477       9,250,079  


    409,082       9,682,971  

Goldman Sachs Group, Inc.


Series A, (3-mo. USD LIBOR + 0.750%), 5.61%, NVS(b)(c)

    2,269,082       47,015,379  

Series C, (3-mo. USD LIBOR + 0.750%), 6.01%, NVS(b)(c)

    599,993       12,131,858  

Series D, (3-mo. USD LIBOR + 0.670%), 5.53%, NVS(b)(c)

    4,084,378       84,914,219  

Series J, (3-mo. USD LIBOR + 3.640%), 5.50%, NVS(b)(c)

    3,025,489       75,092,637  

Series K, (3-mo. USD LIBOR + 3.550%), 6.38%(b)(c)(d)

    2,117,775       53,177,330  

KKR & Co., Inc., Series C, 6.00%, NVS(a)(d)

    1,739,636           110,379,904  

KKR Group Finance Co. IX LLC, 4.63%, NVS

    1,512,654       27,984,099  

Morgan Stanley


Series A, (3-mo. USD LIBOR + 0.700%), 5.49%(b)(c)

    3,328,089       68,991,285  

Series E, (3-mo. USD LIBOR + 4.320%), 7.13%, NVS(b)(c)

    2,609,479       65,497,923  

Series F, (3-mo. USD LIBOR + 3.940%), 6.88%, NVS(b)(c)

    2,571,658       63,519,953  

Series I, (3-mo. USD LIBOR + 3.708%), 6.38%, NVS(b)(c)

    3,025,489       74,517,794  

Series K, (3-mo. USD LIBOR + 3.491%), 5.85%, NVS(b)(c)

    3,025,489       74,971,617  

Series L, 4.88%, NVS(c)

    1,512,791       33,644,472  

Series O, 4.25%, NVS(c)

    3,933,174       74,533,647  

Series P, 6.50%, NVS(c)

    3,025,490       76,817,191  

NewtekOne, Inc., 5.50%

    306,424       7,544,159  

Northern Trust Corp., Series E, 4.70%, NVS(c)

    1,210,191       27,846,495  

Oaktree Capital Group LLC


Series A, 6.63%, NVS(c)

    539,986       11,431,504  

Series B, 6.55%, NVS(c)

    710,992       14,802,853  

Prospect Capital Corp., Series A, 5.35%(c)

    459,664       7,354,624  



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


Schedule of Investments  (continued)

March 31, 2023


iShares® Preferred and Income Securities ETF

(Percentages shown are based on Net Assets)


Security   Shares     Value  
Capital Markets (continued)            

State Street Corp.


Series D, (3-mo. USD LIBOR + 3.108%), 5.90%, NVS(b)(c)(d)

    2,269,151     $ 52,939,293  

Series G, (3-mo. USD LIBOR + 3.709%), 5.35%, NVS(b)(c)(d)

    1,512,791       37,925,670  

Stifel Financial Corp.

    573,277       11,826,704  

Series B, 6.25%, NVS(c)

    479,978       11,394,678  

Series C, 6.13%, NVS(c)

    680,769       16,372,494  

Series D, 4.50%, NVS(c)

    907,858       14,770,850  

Trinity Capital, Inc., 7.00%

    529,655       13,368,492  



Chemicals — 0.1%            

EIDP, Inc., Series B, 4.50%, NVS(c)(d)

    126,887       11,904,538  



Commercial Services & Supplies — 0.2%  

Charah Solutions, Inc., 8.50%

    408,894       3,843,604  

Pitney Bowes, Inc., 6.70%

    1,288,379       20,343,504  



Consumer Finance — 2.4%            

Atlanticus Holdings Corp., 6.13%

    455,858       10,498,410  

Capital One Financial Corp.


Series I, 5.00%, NVS(c)

    4,538,281       91,446,362  

Series J, 4.80%, NVS(c)

    3,781,850       72,384,609  

Series K, 4.63%, NVS(c)

    382,228       6,845,703  

Series L, 4.38%, NVS(c)

    2,042,214       34,860,593  

Series N, 4.25%, NVS(c)

    1,285,846       21,370,761  

Navient Corp., 6.00%

    907,685       17,954,009  

SLM Corp., Series B, (3-mo. USD LIBOR + 1.700%), 6.57%(b)(c)

    302,578       18,911,125  

Synchrony Financial, Series A, 5.63%, NVS(c)

    2,269,154       38,666,384  



Diversified REITs — 0.4%            

Armada Hoffler Properties, Inc., Series A, 6.75%, NVS(c)

    513,199       10,720,727  

EPR Properties


Series C, 5.75%, NVS(a)(c)

    410,834       7,312,845  

Series E, 9.00%, NVS(a)(c)

    264,029       6,983,567  

Gladstone Commercial Corp., Series G, 6.00%, NVS(c)(d)

    302,631       5,598,674  

Global Net Lease, Inc.


Series A, 7.25%, NVS(c)

    516,138       10,658,250  

Series B, 6.88%(c)

    358,834       7,506,807  

LXP Industrial Trust, Series C, 6.50%,

    146,307       7,100,279  



Diversified Telecommunication Services — 3.3%  

AT&T Inc.

    4,001,276       93,989,973  


    2,496,067       62,177,029  

Series A, 5.00%, NVS(c)

    3,630,596       82,269,305  

Series C, 4.75%, NVS(c)

    5,294,641       112,617,014  

Qwest Corp.

    1,996,810       29,652,629  

6.50%, NVS

    2,957,412       42,172,695  



Electric Utilities — 8.4%            

American Electric Power Co., Inc., 6.13%, NVS(a)

    1,285,854       64,742,749  

BIP Bermuda Holdings I Ltd., 5.13%(c)

    907,671       16,637,609  

Brookfield BRP Holdings Canada, Inc.
4.63%, NVS(c)

    1,058,894       16,254,023  


    788,348       11,746,385  
Security   Shares     Value  
Electric Utilities (continued)            

Brookfield Infrastructure Finance ULC, 5.00%

    757,373     $ 13,822,057  

Duke Energy Corp.

    1,512,791       37,895,415  

Series A, 5.75%, NVS(c)

    3,025,490       76,998,721  

Entergy Arkansas LLC, 4.88%

    1,240,450       27,872,912  

Entergy Louisiana LLC, 4.88%(d)

    816,857       19,106,285  

Entergy Mississippi LLC, 4.90%

    786,597       18,154,659  

Georgia Power Co., Series 2017, 5.00%

    816,857       20,494,942  

NextEra Energy Capital Holdings, Inc., Series N, 5.65%

    2,080,057       53,457,465  

NextEra Energy, Inc.

    3,025,496       147,765,225  


    3,025,490       140,231,461  

Pacific Gas & Electric Co., Series A,

    321,618       7,197,811  

PG&E Corp., 5.50%(a)

    1,210,191       172,246,485  

SCE Trust II, 5.10%, NVS(c)

    666,157       13,829,419  

SCE Trust III, Series H, (3-mo. USD LIBOR + 2.990%), 5.75%, NVS(b)(c)(d)

    832,022       17,064,771  

SCE Trust IV, Series J, (3-mo. USD LIBOR + 3.132%), 5.38%, NVS(b)(c)(d)

    983,276       19,960,503  

SCE Trust V, Series K, (3-mo. USD LIBOR + 3.790%), 5.45%, NVS(b)(c)

    907,685       20,332,144  

SCE Trust VI, 5.00%, NVS(c)

    1,437,129       28,713,837  

Southern Co.

    1,361,467       33,247,024  

Series 2020, 4.95%

    3,025,490       68,376,074  

Series C, 4.20%

    2,269,152       45,383,040  



Electrical Equipment — 0.2%            

Babcock & Wilcox Enterprises, Inc.

    460,444       9,977,822  


    485,413       11,955,722  

Series A, 7.75%, NVS(c)

    582,414       10,623,231  



Electronic Equipment, Instruments & Components — 0.2%  

Coherent Corp., Series A, 6.00%, NVS(a)

    174,001       30,448,435  



Entertainment — 0.0%            

Chicken Soup For The Soul Entertainment, Inc., Series A, NVS, 9.75%(c)(d)

    310,146       4,894,104  



Financial Services — 3.5%            

Apollo Asset Management, Inc.


Series A, 6.38%, NVS(c)(d)

    832,022       17,555,664  

Series B, 6.38%, NVS(c)

    907,685       20,332,144  

Citigroup Capital XIII, (3-mo. USD LIBOR + 6.370%), 11.17%, NVS(b)

    6,795,264       193,936,834  

Compass Diversified Holdings


Series A, 7.25%, NVS(c)

    306,844       7,051,275  

Series B, (3-mo. USD LIBOR + 4.985%), 7.88%, NVS(b)(c)

    306,378       7,598,174  

Series C, 7.88%, NVS(c)

    350,304       8,459,842  

Equitable Holdings, Inc.


Series A, 5.25%, NVS(c)

    2,420,404       52,982,644  

Series C, 4.30%(c)

    907,487       16,879,258  

Federal Agricultural Mortgage Corp.


Series D, 5.70%, NVS(c)

    301,738       7,458,963  

Series F, 5.25%, NVS(c)(d)

    366,800       7,999,908  

Series G, 4.88%, NVS(c)(d)

    382,594       7,908,218  

Jackson Financial, Inc., (5 year CMT + 3.728%), 8.00%(b)(c)

    1,472,115       36,508,452  

Merchants Bancorp (5 year CMT + 4.340%), 8.25%, NVS(c)

    432,722       11,294,044  




2 0 2 3   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  (continued)

March 31, 2023


iShares® Preferred and Income Securities ETF

(Percentages shown are based on Net Assets)


Security   Shares     Value  
Financial Services (continued)            

Merchants Bancorp


Series B, (3-mo. USD LIBOR + 4.569%), 6.00%, NVS(b)(c)

    381,329     $ 8,015,536  

Series C, 6.00%, NVS(c)

    595,181       11,594,126  

National Rural Utilities Cooperative Finance Corp., Series US, 5.50%(d)

    756,360       17,683,697  

Voya Financial, Inc., Series B, (5 year CMT + 3.210%), 5.35%, NVS(b)(c)

    907,685       21,058,292  



Food Products — 1.4%            

CHS, Inc.
8.00%, NVS(c)(d)

    928,199       27,465,408  

Series 1, 7.88%, NVS(c)

    1,623,136       43,321,500  

Series 2, (3-mo. USD LIBOR + 4.298%), 7.10%, NVS(b)(c)

    1,270,711       31,856,725  

Series 3, (3-mo. USD LIBOR + 4.155%), 6.75%, NVS(b)(c)

    1,490,044       37,251,100  

Series 4, 7.50%(c)

    1,565,706       41,131,097  



Gas Utilities — 0.3%            

Entergy New Orleans LLC, 5.50%

    335,850       8,231,684  

Spire, Inc., Series A, 5.90%, NVS(c)

    756,360       18,190,458  

UGI Corp., 7.25%(a)(d)

    166,541       13,251,667  



Health Care Equipment & Supplies — 1.6%  

Becton Dickinson & Co., Series B, 6.00%, NVS(a)

    2,269,152       112,822,237  

Boston Scientific Corp., Series A, 5.50%, NVS(a)

    761,069       92,119,792  



Health Care REITs — 0.2%            

Diversified Healthcare Trust
6.25%, NVS

    762,389       10,200,765  


    1,060,177       13,527,858  



Health Care Technology — 0.1%            

CareCloud, Inc., Series A, 11.00%, NVS(c)

    344,153       9,522,713  



Hotel & Resort REITs — 1.0%            

Braemar Hotels & Resorts, Inc., Series B, 5.50%, NVS(a)(c)

    238,864       3,826,601  

Chatham Lodging Trust, Series A, 6.63%, NVS(c)

    359,152       7,362,616  

DiamondRock Hospitality Co., 8.25%, NVS(c)

    360,007       9,367,382  

Hersha Hospitality Trust


Series D, 6.50%, NVS(c)

    584,304       11,341,341  

Series E, 6.50%, NVS(c)

    304,486       6,031,868  

Pebblebrook Hotel Trust


Series E, 6.38%, NVS(c)

    330,164       6,213,686  

Series F, 6.30%, NVS(c)

    448,168       8,425,558  

Series G, 6.38%, NVS(c)

    687,163       12,794,975  

Series H, 5.70%, NVS(c)

    701,620       11,436,406  

RLJ Lodging Trust, Series A, 1.95%(a)(c)

    974,197       24,413,377  

Summit Hotel Properties, Inc.


Series E, 6.25%, NVS(c)

    487,008       9,223,932  

Series F, 5.88%, NVS(c)

    303,314       5,371,691  

Sunstone Hotel Investors, Inc.


Series H, 6.13%(c)

    341,879       6,919,631  

Series I, 5.70%, NVS(c)

    298,317       5,715,754  



Hotels, Restaurants & Leisure — 0.1%            

FAT Brands, Inc., Series B, NVS, 8.25%(d)

    558,370       9,101,431  



Security   Shares     Value  
Independent Power and Renewable Electricity Producers — 0.9%  

AES Corp., 6.88%(a)

    788,976     $ 70,621,242  

Brookfield Renewable Partners LP, Series 17, 5.25%, NVS(c)

    606,750       11,977,245  

Tennessee Valley Authority


Series A, (30 yr. CMT + 0.840%), 2.22%(b)(d)

    629,826       13,327,118  

Series D, (30 yr. CMT + 0.940%), 2.13%(b)

    774,522       16,737,420  



Industrial Conglomerates — 0.1%            

Steel Partners Holdings LP, Series A, 6.00%, NVS

    487,119       11,281,676  



Insurance — 11.7%            

AEGON Funding Co. LLC, 5.10%, NVS

    2,798,576       60,421,256  

Allstate Corp.


(3-mo. USD LIBOR + 3.165%), 8.00%, NVS(b)

    1,512,791       38,606,426  

Series G, 5.63%, NVS(c)

    1,739,636       43,386,522  

Series H, 5.10%, NVS(c)

    3,479,343       78,180,837  

Series I, 4.75%, NVS(c)

    907,685       20,096,146  

American Equity Investment Life Holding Co.


Series A, (5 year CMT + 4.322%), 5.95%, NVS(b)(c)

    1,207,878       28,348,897  

Series B, (5 year CMT + 6.297%), 6.63%, NVS(b)(c)

    907,689       22,628,687  

American Financial Group, Inc.



    371,878       8,006,533  


    596,688       11,044,695  


    446,921       9,841,200  


    597,412       11,553,948  

American International Group, Inc., Series A, 5.85%, NVS(c)

    1,512,793       35,338,844  

Arch Capital Group Ltd.


Series F, 5.45%, NVS(c)

    998,441       22,974,127  

Series G, 4.55%(c)

    1,512,791       29,121,227  

Argo Group International Holdings Ltd., (5 year CMT + 6.712%), 7.00%, NVS(b)(c)

    454,450       10,943,156  

Argo Group U.S., Inc., 6.50%

    437,096       9,690,418  

Aspen Insurance Holdings Ltd.
5.63%, NVS(c)

    778,146       14,255,635  

5.63%, NVS(c)

    734,869       14,013,952  

(3-mo. USD LIBOR + 4.060%), 5.95%, NVS(b)(c)(d)

    832,022       19,136,506  

Assurant, Inc., 5.25%

    758,991       14,815,504  

Athene Holding Ltd.


Series A, (3-mo. USD LIBOR + 4.253%), 6.35%, NVS(b)(c)

    2,609,479       56,756,168  

Series B, 5.63%, NVS(c)(d)

    1,043,773       21,000,713  

Series C, (5 year CMT + 5.970%), 6.38%, NVS(b)(c)

    1,812,757       43,669,316  

Series D, 4.88%(c)

    1,739,636       27,381,871  

Series E, (5 year CMT + 3.962%), 7.75%, NVS(b)(c)(d)

    1,512,641       36,136,994  

Axis Capital Holdings Ltd., Series E, 5.50%, NVS(c)

    1,664,047       35,261,156  

Brighthouse Financial, Inc.



    1,134,529       24,868,876  

Series A, 6.60%, NVS(c)

    1,285,854       29,214,603  

Series B, 6.75%, NVS(c)

    1,217,774       29,043,910  

Series C, 5.38%(c)

    1,739,636       29,138,903  

Series D, 4.63%, NVS(c)

    1,058,938       16,900,650  

CNO Financial Group, Inc., 5.13%

    459,664       7,469,540  

Enstar Group Ltd.


Series D, (3-mo. USD LIBOR + 4.015%), 7.00%, NVS(b)(c)

    1,210,191       26,987,259  



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


Schedule of Investments  (continued)

March 31, 2023


iShares® Preferred and Income Securities ETF

(Percentages shown are based on Net Assets)


Security   Shares     Value  
Insurance (continued)            

Enstar Group Ltd.


Series E, 7.00%, NVS(c)

    335,570     $ 7,714,754  

Globe Life, Inc., 4.25%, NVS

    983,276       18,780,572  

Hartford Financial Services Group, Inc., Series G, 6.00%, NVS(c)

    1,043,775       26,407,508  

Kemper Corp., (5 year CMT + 4.140%), 5.88%(b)

    457,029       8,793,238  

Lincoln National Corp., Series D, 9.00%(c)

    1,512,791       38,576,171  

Maiden Holdings Ltd., 6.63%

    333,095       4,796,568  

Maiden Holdings North America Ltd., 7.75%

    465,839       7,779,511  

MetLife, Inc.


Series A, (3-mo. USD LIBOR + 1.000%), 5.87%, NVS(b)(c)

    1,815,258       43,293,903  

Series E, 5.63%, NVS(c)(d)

    2,435,572       60,743,166  

Series F, 4.75%, NVS(c)

    3,025,490       65,864,917  

PartnerRe Ltd., Series J, 4.88%, NVS(c)

    606,125       12,383,134  

Prudential Financial, Inc.

    907,684       23,009,789  


    1,709,375       42,734,375  

4.13%, NVS(d)

    1,512,791       30,346,587  

Reinsurance Group of America, Inc.


(3-mo. USD LIBOR + 4.040%), 5.75%, NVS(b)(d)

    1,210,191       30,980,890  

(5 year CMT + 3.456%), 7.13%(b)

    2,117,876       55,700,139  

RenaissanceRe Holdings Ltd.


Series F, 5.75%, NVS(c)

    756,360       17,487,043  

Series G, 4.20%, NVS(c)

    1,512,791       26,125,901  

Selective Insurance Group, Inc., Series B, 4.60%(c)(d)

    607,238       10,444,494  

SiriusPoint Ltd., Series B, (5 year CMT + 7.298%), 8.00%, NVS(b)(c)

    599,933       13,198,526  

Unum Group, 6.25%

    905,937       22,766,197  

W R Berkley Corp.

    560,580       13,700,575  


    907,685       19,215,691  


    907,685       15,748,335  


    756,630       14,655,923  



IT Services — 0.1%            

Exela Technologies, Inc., Series B,

    263,903       786,431  

Sabre Corp., 6.50%, NVS(a)

    248,907       15,606,469  



Leisure Products — 0.3%            

Brunswick Corp.

    559,954       14,194,834  


    379,966       9,711,931  


    695,863       17,709,713  



Life Sciences Tools & Services — 1.3%            

Danaher Corp., Series B, 5.00%, NVS(a)(d)

    130,097       165,789,112  



Machinery — 0.6%            

Chart Industries, Inc., Series B, 6.75%, NVS(a)

    608,888       32,569,419  

RBC Bearings, Inc., Series A, 5.00%, NVS(a)

    347,932       39,211,937  



Marine Transportation — 0.1%            

Global Ship Lease, Inc., 8.75%, NVS(c)

    331,485       8,283,810  



Media — 0.3%            

Liberty Broadband Corp., Series A,

    544,914       12,473,082  

Paramount Global, Series A, 5.75%,

    756,360       22,645,418  



Security   Shares     Value  
Metals & Mining — 1.0%            

ArcelorMittal SA, 5.50%(a)(d)

    1,839,544     $     131,067,510  



Mortgage Real Estate Investment Trusts (REITs) — 5.3%  

ACRES Commercial Realty Corp.


Series C, (3-mo. USD LIBOR + 5.927%), 8.63%(b)(c)

    366,580       7,698,180  

Series D, 7.88%, NVS(c)

    353,760       6,880,632  

AGNC Investment Corp.


Series C, (3-mo. USD LIBOR + 5.111%), 9.90%, NVS(b)(c)(d)

    983,276       23,126,652  

Series D, (3-mo. USD LIBOR + 4.332%), 6.88%, NVS(b)(c)

    711,020       14,618,571  

Series E, (3-mo. USD LIBOR + 4.993%), 6.50%, NVS(b)(c)

    1,217,774       24,611,213  

Series F, (3-mo. USD LIBOR + 4.697%), 6.13%, NVS(b)(c)

    1,739,636       33,940,298  

Series G, (5 year CMT + 4.390%), 7.75%, NVS(b)(c)

    455,663       9,938,010  

Annaly Capital Management, Inc.


Series F, (3-mo. USD LIBOR + 4.993%), 10.16%, NVS(b)(c)(d)

    2,178,396       51,431,930  

Series G, (3-mo. USD LIBOR + 4.172%), 6.50%, NVS(b)(c)(d)

    1,285,854       30,616,184  

Series I, (3-mo. USD LIBOR + 4.989%), 6.75%, NVS(b)(c)

    1,338,791       30,055,858  

Arbor Realty Trust, Inc.


Series D, 6.38%, NVS(c)(d)

    697,363       12,168,984  

Series E, 6.25%, NVS(c)

    434,887       7,393,079  

Series F, (SOFR + 5.440%), 6.25%,

    857,909       14,584,453  

ARMOUR Residential REIT, Inc., Series C, 7.00%(c)

    520,042       10,400,840  

Chimera Investment Corp.


Series A, 8.00%, NVS(c)

    441,780       8,521,936  

Series B, (3-mo. USD LIBOR + 5.791%), 8.00%, NVS(b)(c)

    983,276       18,839,568  

Series C, (3-mo. USD LIBOR + 4.743%), 7.75%, NVS(b)(c)

    785,288       15,101,088  

Series D, (3-mo. USD LIBOR + 5.379%), 8.00%, NVS(b)(c)

    606,682       11,466,290  

Dynex Capital, Inc., Series C, (3-mo. USD LIBOR + 5.461%), 6.90%, NVS(b)(c)

    337,529       7,364,883  

Ellington Financial, Inc.


(3-mo. USD LIBOR + 5.196%), 6.75%,

    352,174       7,321,697  

Series B, (5 year CMT + 4.990%), 6.25%, NVS(b)(c)

    367,972       7,841,483  

Series C, (5 year CMT + 5.130%),

    305,822       6,514,009  

Franklin BSP Realty Trust, Inc., Series E, 7.50%, NVS(c)(d)

    774,620       14,981,151  

Granite Point Mortgage Trust, Inc., Series A,


(SOFR + 5.830%), 7.00%, NVS(b)(c)

    617,180       10,183,470  

Great Ajax Corp., 7.25%, NVS(a)(d)

    353,068       8,540,715  

Invesco Mortgage Capital, Inc.


Series B, (3-mo. USD LIBOR + 5.180%), 7.75%, NVS(b)(c)

    343,204       6,901,832  

Series C, (3-mo. USD LIBOR + 5.289%), 7.50%, NVS(b)(c)

    592,904       10,737,491  

KKR Real Estate Finance Trust, Inc., Series A, 6.50%, NVS(c)

    991,643       15,836,539  

MFA Financial, Inc.


Series B, 7.50%, NVS(c)

    606,914       11,677,025  

Series C, (3-mo. USD LIBOR + 5.345%), 6.50%, NVS(b)(c)

    832,425       14,184,522  




2 0 2 3   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  (continued)

March 31, 2023


iShares® Preferred and Income Securities ETF

(Percentages shown are based on Net Assets)


Security   Shares     Value  
Mortgage Real Estate Investment Trusts (REITs) (continued)  

New York Mortgage Trust, Inc.


Series D, (3-mo. USD LIBOR + 5.695%), 8.00%, NVS(b)(c)

    459,236     $ 8,913,771  

Series E, (3-mo. USD LIBOR + 6.429%), 7.88%, NVS(b)(c)

    555,805       11,360,654  

Series F, (SOFR + 6.130%), 6.88%,

    434,887       7,571,383  

PennyMac Mortgage Investment Trust


Series A, (3-mo. USD LIBOR + 5.831%), 8.13%, NVS(b)(c)(d)

    347,932       8,291,220  

Series B, (3-mo. USD LIBOR + 5.990%), 8.00%, NVS(b)(c)

    584,942       13,453,666  

Series C, 6.75%, NVS(c)

    749,920       13,873,520  

Ready Capital Corp.

    350,084       8,741,598  


    315,391       7,443,228  


    609,335       14,106,105  

Series E, 6.50%, NVS(c)

    347,932       6,415,866  

Rithm Capital Corp.


Series A, (3-mo. USD LIBOR + 5.802%), 7.50%, NVS(b)(c)

    471,915       10,457,636  

Series B, (3-mo. USD LIBOR + 5.640%), 7.13%(b)(c)

    854,699       18,410,216  

Series C, (3-mo. USD LIBOR + 4.969%), 6.38%, NVS(b)(c)

    1,204,771       22,794,267  

Series D, (5 year CMT + 6.223%), 7.00%, NVS(b)(c)

    1,406,861       27,715,162  

TPG RE Finance Trust, Inc., Series C, 6.25%, NVS(c)(d)

    610,672       10,601,266  

Two Harbors Investment Corp.


Series A, (3-mo. USD LIBOR + 5.660%), 8.13%, NVS(b)(c)

    431,226       9,336,043  

Series B, (3-mo. USD LIBOR + 5.352%), 7.63%, NVS(b)(c)

    869,832       17,727,176  

Series C, (3-mo. USD LIBOR + 5.011%), 7.25%, NVS(b)(c)(d)

    892,519       18,519,769  



Multi-Utilities — 3.3%            

Algonquin Power & Utilities Corp.

    1,739,636       51,962,927  

(3-mo. USD LIBOR + 3.677%), 6.88%(b)

    869,757       19,969,621  

Series 19-A, (3-mo. USD LIBOR + 4.010%), 6.20%, NVS(b)

    1,058,938       24,588,540  

Brookfield Infrastructure Partners LP


Series 13, 5.13%, NVS(c)

    607,030       11,357,531  

Series 14, 5.00%, NVS(c)

    607,313       11,283,876  

CMS Energy Corp.

    1,906,056       46,298,100  

5.88%, NVS

    847,116       20,440,909  


    605,304       14,678,622  

Series C, 4.20%, NVS(c)

    696,424       13,824,016  

DTE Energy Co.

    847,116       16,815,253  

Series E, 5.25%(d)

    1,210,191       27,870,699  

Series G, 4.38%

    696,288       14,886,638  

NiSource, Inc.

    652,363       68,145,839  

Series B, (5 year CMT + 3.632%),

    1,512,791       36,306,984  

Sempra Energy, 5.75%

    2,291,808       56,699,330  



Office REITs — 0.8%            

Brookfield DTLA Fund Office Trust Investor, Inc., Series A, 7.63%(c)

    747,534       1,315,660  
Security   Shares     Value  
Office REITs (continued)            

City Office REIT, Inc., Series A, 6.63%, NVS(c)

    344,925     $ 6,094,825  

Equity Commonwealth, Series D, 6.50%,

    374,309       9,353,982  

Hudson Pacific Properties, Inc., Series C, 4.75%, NVS(c)

    1,285,856       12,858,560  

Office Properties Income Trust, 6.38%

    485,926       8,294,757  

SL Green Realty Corp., Series I, 6.50%, NVS(c)

    687,163       12,801,847  

Vornado Realty Trust


Series L, 5.40%, NVS(c)

    909,967       12,721,338  

Series M, 5.25%, NVS(c)(d)

    968,341       13,091,970  

Series N, 5.25%, NVS(c)

    910,945       11,842,285  

Series O, 4.45%, NVS(c)

    915,205       10,424,185  



Oil, Gas & Consumable Fuels — 2.6%            

DCP Midstream LP


Series B, (3-mo. USD LIBOR + 4.919%), 7.88%, NVS(b)(c)

    488,831       12,259,881  

Series C, (3-mo. USD LIBOR + 4.882%), 7.95%, NVS(b)(c)

    335,102       8,404,358  

El Paso Energy Capital Trust I, 4.75%(a)

    334,335       15,369,380  

Enbridge, Inc., Series B, (3-mo. USD LIBOR + 3.593%), 6.38%(b)

    1,815,298       46,090,416  

Energy Transfer LP


Series C, (3-mo. USD LIBOR + 4.530%), 7.38%, NVS(b)(c)

    1,361,449       32,633,933  

Series D, (3-mo. USD LIBOR + 4.738%), 7.63%, NVS(b)(c)

    1,346,373       31,410,882  

Series E, (3-mo. USD LIBOR + 5.161%), 7.60%, NVS(b)(c)

    2,414,532       58,383,384  

NGL Energy Partners LP, Series B, (3-mo. USD LIBOR + 7.213%), 12.47%, NVS(b)(c)

    951,947       20,800,042  

NuStar Energy LP


Series A, (3-mo. USD LIBOR + 6.766%), 12.02%, NVS(b)(c)

    685,262       15,939,194  

Series B, (3-mo. USD LIBOR + 5.643%), 10.90%, NVS(b)(c)

    1,162,330       27,721,571  

Series C, (3-mo. USD LIBOR + 6.880%), 11.75%, NVS(b)(c)

    521,345       14,780,131  

NuStar Logistics LP, (3-mo. USD LIBOR + 6.734%), 11.53%(b)

    1,217,864       30,811,959  

Seapeak LLC


9.00%, NVS(c)

    376,732       9,067,939  

Series B, (3-mo. USD LIBOR + 6.241%), 8.50%, NVS(b)(c)

    514,587       12,514,756  



Professional Services — 0.3%            

Clarivate PLC, Series A, 5.25%(a)

    1,087,272       44,654,261  



Real Estate Management & Development — 0.9%  

Brookfield Property Partners LP


Series A, 5.75%, NVS(c)

    871,726       10,852,989  

Series A-1, 6.50%, NVS(c)

    559,616       8,903,491  

Series A2, 6.38%, NVS(c)

    753,281       11,359,478  

Brookfield Property Preferred LP, 6.25%

    2,030,495       32,894,019  

DigitalBridge Group, Inc.


Series H, 7.13%, NVS(c)

    640,193       12,035,628  

Series I, 7.15%, NVS(c)

    982,491       18,844,177  

Series J, 7.13%, NVS(c)

    884,235       16,605,933  



Residential REITs — 0.2%            

American Homes 4 Rent


Series G, 5.88%, NVS(c)

    350,751       8,246,156  



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


Schedule of Investments  (continued)

March 31, 2023


iShares® Preferred and Income Securities ETF

(Percentages shown are based on Net Assets)


Security   Shares     Value  
Residential REITs (continued)            

American Homes 4 Rent


Series H, 6.25%, NVS(c)

    351,818     $ 8,545,659  

UMH Properties, Inc., Series D, 6.38%,

    689,954       15,096,194  



Retail REITs — 0.9%            

Agree Realty Corp., Series A, 4.25%,

    532,297       9,368,427  

Cedar Realty Trust, Inc., Series C, 6.50%, NVS(c)

    387,054       4,559,496  

Federal Realty Investment Trust, Series C, 5.00%, NVS(c)(d)

    456,117       9,701,608  

Kimco Realty Corp.


Series L, 5.13%, NVS(c)

    677,232       13,294,064  

Series M, 5.25%, NVS(c)

    793,325       16,104,497  

Necessity Retail REIT, Inc., Series A, 7.50%, NVS(c)

    601,038       12,621,798  

Saul Centers, Inc., Series E, 6.00%, NVS(c)

    336,964       7,463,753  

SITE Centers Corp., Series A, 6.38%, NVS(c)

    530,640       12,438,202  

Spirit Realty Capital, Inc., Series A, 6.00%, NVS(c)

    523,097       12,094,003  

Urstadt Biddle Properties, Inc.


Series H, 6.25%, NVS(c)

    335,703       7,298,183  

Series K, 5.88%, NVS(c)

    321,632       6,651,350  



Software — 0.0%            

Synchronoss Technologies, Inc., 8.38%

    382,766       6,633,335  



Specialized REITs — 2.7%            

CorEnergy Infrastructure Trust, Inc., Series A, 7.38%, NVS(c)

    403,077       2,982,770  

Digital Realty Trust, Inc.


Series J, 5.25%, NVS(c)(d)

    606,047       13,023,950  

Series K, 5.85%, NVS(c)

    635,474       14,749,352  

Series L, 5.20%, NVS(c)

    1,043,773       22,441,119  

EPR Properties, Series G, 5.75%, NVS(c)

    458,427       7,674,068  

Gladstone Land Corp., Series B, 6.00%(c)(d)

    452,158       10,512,673  

National Storage Affiliates Trust, Series A, 6.00%, NVS(c)

    682,053       15,694,040  

Public Storage


Series F, 5.15%, NVS(c)

    847,116       20,305,371  

Series G, 5.05%, NVS(c)(d)

    907,685       21,375,982  

Series H, 5.60%(c)(d)

    862,281       21,945,051  

Series I, 4.88%, NVS(c)(d)

    956,818       20,858,632  

Series J, 4.70%, NVS(c)

    782,817       16,885,363  

Series K, 4.75%, NVS(c)

    695,875       15,142,240  

Series L, 4.63%, NVS(c)

    1,709,377       35,725,979  

Series M, 4.13%, NVS(c)(d)

    696,774       12,932,125  

Series N, 3.88%, NVS(c)(d)

    854,699       15,555,522  

Series O, 3.90%, NVS(c)

    517,136       9,427,389  

Series P, 4.00%, NVS(c)

    1,826,660       33,738,410  

Series Q, 3.95%, NVS(c)

    440,163       7,962,549  

Series R, 4.00%, NVS(c)

    1,316,112       24,348,072  

Series S, 4.10%, NVS(c)(d)

    756,761       14,007,646  



Specialty Retail — 0.3%            

Franchise Group, Inc., Series A, 7.50%, NVS(c)

    347,295       7,821,084  

TravelCenters of America, Inc.

    334,989       8,424,973  


    364,968       9,332,232  


    305,822       7,691,423  



Textiles, Apparel & Luxury Goods — 0.1%            

Fossil Group, Inc., 7.00%

    457,361       8,259,940  



Security   Shares     Value  
Trading Companies & Distributors — 1.1%  

Air Lease Corp., Series A, (3-mo. USD LIBOR + 3.650%), 6.15%, NVS(b)(c)(d)

    756,360     $ 15,626,398  

FTAI Aviation Ltd.


Series A, NVS, (3-mo. USD LIBOR + 6.886%), 8.25%(b)(c)

    316,690       7,511,887  

Series B, NVS, (3-mo. USD LIBOR + 6.447%), 8.00%(b)(c)

    373,946       8,458,658  

Series C, NVS, (5 year CMT + 7.378%), 8.25%(b)(c)

    319,542       7,442,133  

Textainer Group Holdings Ltd.


(5 year CMT + 6.134%), 7.00%, NVS(b)(c)

    455,314       11,018,599  

Series B, 6.25%, NVS(c)

    456,463       9,503,560  

Triton International Ltd.
8.00%, NVS(c)

    436,523       10,825,770  

7.38%, NVS(c)

    530,416       12,348,084  

6.88%, NVS(c)(d)

    455,793       9,749,412  

Series E, 5.75%, NVS(c)

    529,446       11,308,967  

WESCO International, Inc., Series A, (5 year CMT + 10.325%), 10.63%, NVS(b)(c)

    1,634,642       44,315,145  



Transportation Infrastructure — 0.3%            

Atlas Corp.


Series D, 7.95%(c)

    387,518       9,133,799  

Series H, 7.88%, NVS(c)

    682,624       15,256,647  

Series I, (3-mo. USD LIBOR + 5.008%), 8.00%(b)(c)

    455,230       11,144,030  



Wireless Telecommunication Services — 1.0%        

Telephone & Data Systems, Inc.


Series UU, 6.63%, NVS(c)(d)

    1,270,711       18,056,803  

Series VV, 6.00%, NVS(c)

    2,087,638       29,247,809  

United States Cellular Corp.

    1,512,791       29,060,715  


    1,512,791       25,414,889  


    1,512,791       25,823,342  







Total Long-Term Investments — 98.8%
(Cost: $15,453,358,302)








2 0 2 3   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  (continued)

March 31, 2023


iShares® Preferred and Income Securities ETF

(Percentages shown are based on Net Assets)


Security   Shares     Value  
Short-Term Securities            

Money Market Funds — 3.1%


BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(e)(f)(g)

    175,052,647     $ 175,105,163  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.73%(e)(f)

    231,214,441       231,214,441  




Total Short-Term Securities — 3.1%
(Cost: $406,234,362)






Total Investments — 101.9%
(Cost: $15,859,592,664)



Liabilities in Excess of Other Assets — (1.9)%






Net Assets — 100.0%

    $     12,981,968,865  






Convertible security.


Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.


Perpetual security with no stated maturity date.


All or a portion of this security is on loan.


Affiliate of the Fund.


Annualized 7-day yield as of period end.


All or a portion of this security was purchased with the cash collateral from loaned securities.



Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


       Affiliated Issuer  

Value at




at Cost



from Sale




Gain (Loss)


Change in





Value at




Held at






from Underlying





BlackRock Cash Funds: Institutional, SL Agency Shares

  $  275,720,624     $       $ (100,791,979 )(a)    $ 21,896     $ 154,622     $  175,105,163       175,052,647     $ 3,820,403 (b)    $    

BlackRock Cash Funds: Treasury, SL Agency Shares

    190,910,000        40,304,441 (a)                        231,214,441       231,214,441       2,693,104       55    















          $ 21,896     $ 154,622     $ 406,319,604       $ 6,513,507     $ 55    


















Represents net amount purchased (sold).


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.




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


Schedule of Investments  (continued)

March 31, 2023


iShares® Preferred and Income Securities ETF


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  





Long-Term Investments


Preferred Securities


Preferred Stocks

   $ 12,648,885,813        $ 173,221,623        $        $ 12,822,107,436  

Short-Term Securities


Money Market Funds

     406,319,604                            406,319,604  












   $     13,055,205,417        $     173,221,623        $                         —        $     13,228,427,040  













See notes to financial statements.




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Statement of Assets and Liabilities

March 31, 2023


Preferred and
Income Securities



Investments, at value — unaffiliated(a)(b)

  $ 12,822,107,436  

Investments, at value — affiliated(c)






Investments sold


Securities lending income — affiliated


Capital shares sold


Dividends — unaffiliated


Dividends — affiliated





Total assets







Collateral on securities loaned




Investments purchased


Capital shares redeemed


Investment advisory fees





Total liabilities






  $     12,981,968,865  






Paid-in capital

  $ 17,531,749,265  

Accumulated loss






  $ 12,981,968,865  






Shares outstanding





Net asset value

  $ 31.18  




Shares authorized





Par value





(a) Investments, at cost — unaffiliated

  $ 15,453,358,302  

(b) Securities loaned, at value

  $ 171,053,209  

(c)  Investments, at cost — affiliated

  $ 406,234,362  

See notes to financial statements.



I N A N C I A L   S T A T E M E N T S


Statement of Operations

Year Ended March 31, 2023




Preferred and
Income Securities




Dividends — unaffiliated

  $        913,775,841  

Dividends — affiliated


Securities lending income — affiliated — net


Foreign taxes withheld





Total investment income







Investment advisory





Total expenses





Net investment income







Net realized gain (loss) from:


Investments — unaffiliated


Investments — affiliated


Capital gain distributions from underlying funds — affiliated


In-kind redemptions — unaffiliated








Net change in unrealized appreciation (depreciation) on:


Investments — unaffiliated


Investments — affiliated








Net realized and unrealized loss






  $ (1,564,846,008




See notes to financial statements.




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Statements of Changes in Net Assets


    iShares Preferred and Income Securities ETF  
     Year Ended
    Year Ended





Net investment income

  $ 851,776,239     $ 888,159,729  

Net realized gain (loss)

    (249,407,839     122,946,775  

Net change in unrealized appreciation (depreciation)

    (2,167,214,408     (1,182,583,024







Net decrease in net assets resulting from operations

    (1,564,846,008     (171,476,520









Decrease in net assets resulting from distributions to shareholders

    (887,370,473     (853,841,960









Net increase (decrease) in net assets derived from capital share transactions

    (2,277,562,637     372,726,191  









Total decrease in net assets

    (4,729,779,118     (652,592,289

Beginning of year

    17,711,747,983       18,364,340,272  







End of year

  $ 12,981,968,865     $ 17,711,747,983  









Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.



I N A N C I A L   S T A T E M E N T S


Financial Highlights

(For a share outstanding throughout each period)


    iShares Preferred and Income Securities ETF  



    Year Ended
    Year Ended
    Year Ended
    Year Ended
    Year Ended



Net asset value, beginning of year

  $ 36.39     $ 38.27     $ 31.50     $ 36.47     $ 37.54  
















Net investment income(a)

    1.90       1.75       1.81       1.93       2.10  

Net realized and unrealized gain (loss)(b)

    (5.13     (1.94     6.78       (4.93     (1.02
















Net increase (decrease) from investment operations

    (3.23     (0.19     8.59       (3.00     1.08  
















Distributions from net investment income(c)

    (1.98     (1.69     (1.82     (1.97     (2.15
















Net asset value, end of year

  $ 31.18     $ 36.39     $ 38.27     $ 31.50     $ 36.47  
















Total Return(d)


Based on net asset value

    (8.99 )%      (0.67 )%      27.88     (8.90 )%      3.01
















Ratios to Average Net Assets(e)


Total expenses

    0.46     0.45     0.46     0.46     0.46
















Net investment income

    5.80     4.56     4.97     5.25     5.73
















Supplemental Data


Net assets, end of year (000)

  $  12,981,969     $  17,711,748     $  18,364,340     $  13,816,631     $  14,370,721  
















Portfolio turnover rate(f)

    16     21     28     46     28


















Based on average shares outstanding.


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.


Distributions for annual periods determined in accordance with U.S. federal income tax regulations.


Where applicable, assumes the reinvestment of distributions.


Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.


Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.




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Notes to Financial Statements




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 fund (the “Fund”):


iShares ETF   Diversification

Preferred and Income Securities





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. The 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. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

Foreign Taxes: The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are reflected in its Statement of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividend are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of March 31, 2023, if any, are disclosed in the Statement of Assets and Liabilities.

The Fund files withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Fund may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable tax laws, payment history and market convention. The Statement of Operations include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Collateralization: If required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains and losses to the Fund. Because such gains or losses are not taxable to the Fund 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 Fund’s tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

Distributions: Dividends and distributions paid by the 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. Dividend and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Fund. 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, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.




Investment Valuation Policies: The 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. The Board of Trustees of the Trust (the “Board”) of the Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, as the valuation designee for the Fund. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. 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 BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.



O T E S   T O  I N A N C I A L  T A T E M E N T S


Notes to Financial Statements  (continued)


Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:



Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.



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 Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the 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 Valuation Committee seeks to determine the price that the 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 Valuation Committee deems relevant and consistent with the principles of fair value measurement.

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 the 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.




Securities Lending: The 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 the 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, the 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 BFA 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 the 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 Statement of Assets and Liabilities.

Securities lending transactions are entered into by the Fund 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 Fund, 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 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 Fund can reinvest cash collateral 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.




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Notes to Financial Statements  (continued)


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    
Loaned at Value
Collateral Received

Collateral Received,
at Fair Value

Barclays Bank PLC

  $ 449,816      $ (449,816   $     $  

Barclays Capital, Inc.

    2,566,625        (2,566,625            

BMO Capital Markets Corp.

    23,163        (23,163            

BNP Paribas SA

    30,605,667        (30,605,667            

BofA Securities, Inc.

    16,948,467        (16,948,467            

Deutsche Bank Securities, Inc.

    1,889,609        (1,889,609            

Goldman Sachs & Co. LLC

    4,175,339        (4,175,339            

J.P. Morgan Securities LLC

    88,657,876        (88,657,876            

Morgan Stanley

    2,231,015        (2,231,015            

National Financial Services LLC

    3,450,576        (3,450,576            

RBC Capital Market LLC

    5,632,000        (5,632,000            

SG Americas Securities LLC

    14,655        (14,125           530  

Toronto-Dominion Bank

    2,967,778        (2,967,778            

UBS Securities LLC

    2,303        (2,303            

Wells Fargo Bank N.A

    9,724,516        (9,724,516            

Wells Fargo Securities LLC

    1,713,804        (1,713,804            












  $ 171,053,209      $ (171,052,679   $     $ 530  















Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by the Fund is disclosed in the Fund’s Statement of Assets and Liabilities.


The market value of the loaned securities is determined as of March 31, 2023. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by the counterparty.


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, the 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. The 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 the Fund.




Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of the 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 Fund, 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 the Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:


Aggregate Average Daily Net Assets   Investment Advisory Fees  

First $46 billion


Over $46 billion, up to and including $81 billion


Over $81 billion, up to and including $111 billion


Over $111 billion, up to and including $141 billion


Over $141 billion, up to and including $171 billion


Over $171 billion


Distributor: BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, is the distributor for the Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Fund.

ETF Servicing Fees: The Fund has entered into an ETF Services Agreement with BRIL to perform certain order processing, Authorized Participant communications, and related services in connection with the issuance and redemption of Creation Units (“ETF Services”). BRIL is entitled to a transaction fee from Authorized Participants on each creation or redemption order for the ETF Services provided. The Fund does not pay BRIL for ETF Services.

Prior to April 25, 2022, ETF Services were performed by State Street Bank and Trust Company.

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 Fund, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. The 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,



O T E S   T O  I N A N C I A L  T A T E M E N T S


Notes to Financial Statements  (continued)


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 the 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. The 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, the Fund retains 81% 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 fund (the “iShares ETF Complex”) in a given calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% 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 the Fund is shown as securities lending income - affiliated - net in its Statement of Operations. For the year ended March 31, 2023, the Fund paid BTC $988,273 for securities lending agent services.

Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.

The 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 Statement 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.




For the year ended March 31, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:


iShares ETF   Purchases      Sales  

Preferred and Income Securities

  $   2,387,166,905      $   2,460,144,621  

For the year ended March 31, 2023, in-kind transactions were as follows:


iShares ETF   In-kind

Preferred and Income Securities

  $   754,564,310      $   3,009,244,301  




The Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the 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 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 Fund as of March 31, 2023, 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 Fund’s 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 March 31, 2023, 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)  

Preferred and Income Securities

  $ (125,784,518   $ 125,784,518  

The tax character of distributions paid was as follows:


iShares ETF   Year Ended
March 31, 2023
     Year Ended
March 31, 2022

Preferred and Income Securities
Ordinary income

  $ 887,370,473      $ 853,841,960  




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Notes to Financial Statements  (continued)


As of March 31, 2023, the tax components of accumulated earnings (loss) were as follows:


iShares ETF   Undistributed
Ordinary Income


Capital Loss

    Net Unrealized
Gains (Losses)(b)

Preferred and Income Securities

  $ 52,616,651      $   (1,946,804,348   $   (2,655,592,703   $   (4,549,780,400



Amounts available to offset future realized capital gains.


The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the amortization methods for premiums and discounts on fixed income securities, tax deferral of losses on wash sales, dividends deemed recognized for tax purposes, the classification of investments, the timing and recognition of partnership income and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.


A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of March 31, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:


iShares ETF   Tax Cost      Gross Unrealized
     Gross Unrealized
    Net Unrealized

Preferred and Income Securities

  $     15,884,019,743        $    146,910,198      $   (2,802,502,901   $   (2,655,592,703




In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. The Fund’s prospectus provides details of the risks to which the Fund is subject.

BFA uses a “passive” or index approach to try to achieve the Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

The price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Fund manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its Schedule of Investments.



O T E S   T O  I N A N C I A L  T A T E M E N T S


Notes to Financial Statements  (continued)


The Fund invests a significant portion of its assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.

The Fund invests a significant portion of its assets within the financials sector. Performance of companies in the financials sector may be adversely impacted by many factors, including, among others, changes in government regulations, economic conditions, and interest rates, credit rating downgrades, adverse public perception, exposure concentration and decreased liquidity in credit markets. The impact of changes in capital requirements and recent or future regulation of any individual financial company, or of the financials sector as a whole, cannot be predicted, but may negatively impact the Fund.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

LIBOR Transition Risk: The Fund may be exposed to financial instruments that are tied to the London Interbank Offered Rate (“LIBOR”) to determine payment obligations, financing terms, hedging strategies or investment value. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, announced that a majority of USD LIBOR settings will no longer be published after June 30, 2023. All other LIBOR settings and certain other interbank offered rates ceased to be published after December 31, 2021. The Secured Overnight Financing Rate (“SOFR”) has been used increasingly on a voluntary basis in new instruments and transactions. The Federal Reserve Board adopted regulations that provide a fallback mechanism by identifying benchmark rates based on SOFR that will replace LIBOR in certain financial contracts after June 30, 2023. The ultimate effect of the LIBOR transition process on the Fund is uncertain.


Capital shares are issued and redeemed by the Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of the Fund are not redeemable.

Transactions in capital shares were as follows:


iShares ETF   Year Ended
    Year Ended
  Shares     Amount     Shares     Amount  

Preferred and Income Securities


Shares sold

    19,150,000     $ 629,044,759       85,800,000     $ 3,332,513,336  

Shares redeemed

    (89,600,000     (2,906,607,396     (78,850,000       (2,959,787,145












    (70,450,000   $   (2,277,562,637     6,950,000     $ 372,726,191  













The consideration of the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to BRIL, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shared sold in the table above.

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statement of Assets and Liabilities.




Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.




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Report of Independent Registered Public Accounting Firm


To the Board of Trustees of iShares Trust and

Shareholders of iShares Preferred and Income Securities ETF

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of iShares Preferred and Income Securities ETF (one of the funds constituting iShares Trust, referred to hereafter as the “Fund”) as of March 31, 2023, the related statement of operations for the year ended March 31, 2023, the statements of changes in net assets for each of the two years in the period ended March 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended March 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended March 31, 2023 and the financial highlights for each of the five years in the period ended March 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

May 25, 2023

We have served as the auditor of one or more BlackRock investment companies since 2000.



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


Important Tax Information  (unaudited)


The following amount, or maximum amount allowable by law, is hereby designated as qualified dividend income for individuals for the fiscal year ended March 31, 2023:


iShares ETF   Qualified Dividend

Preferred and Income Securities

  $ 547,277,340  

The following amount, or maximum amount allowable by law, is hereby designated as qualified business income for individuals for the fiscal year ended March 31, 2023:


iShares ETF   Qualified Business

Preferred and Income Securities

  $ 47,050,581  

The following percentage, or maximum percentage allowable by law, of ordinary income distributions paid during the fiscal year ended March 31, 2023 qualified for the dividends-received deduction for corporate shareholders:


iShares ETF   Dividends-Received

Preferred and Income Securities


The Fund hereby designates the following amount, or maximum amount allowable by law, as interest income eligible to be treated as a Section 163(j) interest dividend for the fiscal year ended March 31, 2023:


Fund Name   Interest Dividends  

Preferred and Income Securities

  $ 194,645,509  

The Fund hereby designates the following amount, or maximum amount allowable by law, as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended March 31, 2023:


iShares ETF   Interest-Related

Preferred and Income Securities

  $ 177,617,483  




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Statement Regarding Liquidity Risk Management Program


In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), iShares Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for iShares Preferred and Income Securities ETF (the “Fund” or “ETF”), a series of the Trust, which is reasonably designed to assess and manage the Fund’s liquidity risk.

The Board of Trustees (the “Board”) of the Trust, on behalf of the Fund, met on December 9, 2022 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Fund, as the program administrator for the Fund’s Program. BlackRock also previously delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the management of the Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2021 through September 30, 2022 (the “Program Reporting Period”).

The Report described the Program’s liquidity classification methodology for categorizing the Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also referenced the methodology used by BlackRock to establish the Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to the Fund no less frequently than annually. The Report also discussed notable events affecting liquidity over the Program Reporting Period, including extended market holidays, the imposition of capital controls in certain non-U.S. countries, Russian sanctions and the closure of the Russian securities market.

The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing the Fund’s liquidity risk, as follows:



The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end fund structure, with a focus on funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Derivative exposure was also considered in the calculation of a fund’s liquidity bucketing. Finally, a factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes.



Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size (“RATS”). The Committee may also take into consideration a fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a fund’s distribution channels, and the degree of certainty associated with a fund’s short-term and long-term cash flow projections.



Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimis amounts of cash. The Committee also considered that ETFs generally do not engage in borrowing.



The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs. However, there were no ETFs with persistent deviations of fund premium/discount or bid/ask spreads from long-term averages over the Program Reporting Period.



The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of custom baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review.

There were no material changes to the Program during the Program Reporting Period other than the enhancement of certain model components in the Program’s classification methodology. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.



T A T E M E N T  E G A R D I N G   L I Q U I D I T Y  I S K   M A N A G E M E N T  R O G R A M


Supplemental Information (unaudited)


Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon the Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

March 31, 2023


    Total Cumulative Distributions
for the Fiscal Year-to-Date
           % Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
iShares ETF   Net
     Net Realized
Capital Gains
     Return of
     Total Per
    Net Realized
Capital Gains
    Return of
    Total Per

Preferred and Income Securities(a)

  $ 1.844478      $      $   0.132570      $   1.977048                93         7     100



The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

Premium/Discount Information

Information on the Fund’s net asset value, market price, premiums and discounts, and bid-ask spreads can be found at iShares.com.

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive, and its United Kingdom (“UK”) equivalent, ( “AIFMD”) impose detailed and prescriptive obligations on fund managers established in the European Union (the “EU”) and the UK. These do not currently apply to managers established outside of the EU or UK, such as BFA (the “Company”). Rather, the Company is only required to comply with certain disclosure, reporting and transparency obligations of AIFMD because it has registered the BFA fund to be marketed to investors in the EU and/or UK.

The Company has registered the iShares Preferred and Income Securities ETF (the “Fund”) to be marketed to United Kingdom and EU investors in the Netherlands, Finland and Sweden.

Report on Remuneration

The Company is required under AIFMD to make quantitative disclosures of remuneration. These disclosures are made in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in that same year.

Disclosures are provided in relation to (a) the staff of the Company; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Fund.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the Fund is included in the aggregate figures disclosed.

BlackRock has a clear and well-defined pay-for-performance philosophy, and compensation programs which support that philosophy.

BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management and staff who have the ability to materially affect the risk profile of the Fund, a significant percentage of variable remuneration is deferred over time. All employees are subject to a clawback policy.

Remuneration decisions for employees are made once annually in January following the end of the performance year, based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total compensation is also based on strategic and operating results and other considerations such as management and leadership capabilities. No set formulas are established and no fixed benchmarks are used in determining annual incentive awards.

Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.




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Supplemental Information (unaudited)


Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organizational structures which are independent of the business units and therefore staff members in control functions are remunerated independently of the businesses they oversee. Functional bonus pools for those control functions are determined with reference to the performance of each individual function and the remuneration of the senior members of control functions is directly overseen by BlackRock’s independent remuneration committee.

Members of staff and senior management of the Company typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of the Company and across the broader BlackRock group. Conversely, members of staff and senior management of the broader BlackRock group may provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of the broader BlackRock group and of the Company. Therefore, the figures disclosed are a sum of individuals’ portion of remuneration attributable to the Company according to an objective apportionment methodology which acknowledges the multiple-service nature of the Company and the broader BlackRock group. Accordingly, the figures are not representative of any individual’s actual remuneration or their remuneration structure.

The amount of the total remuneration awarded to the Company’s staff in respect of the Company’s financial year ending December 31, 2022 was USD 4,121 million. This figure is comprised of fixed remuneration of USD 685 million and variable remuneration of USD 3,436 million. There was a total of 8 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by the Company in respect of the Company’s financial year ending December 31, 2022, to its senior management was USD 2,958 million, and to other members of its staff whose actions potentially have a material impact on the risk profile of the Company or its funds was USD 970 million. These figures relate to the entire Company and not to the Fund.

Disclosures Under the EU Sustainable Finance Disclosure Regulation

The Fund is registered under the Alternative Investment Fund Managers Directive to be marketed to European Union (“EU”) investors, as noted above. As a result, certain disclosures are required under the EU Sustainable Finance Disclosure Regulation (“SFDR”).

The Fund has not been categorized under the SFDR as an “Article 8” or “Article 9” product. In addition, the Fund’s investment strategy does not take into account the criteria for environmentally sustainable economic activities under the EU sustainable investment taxonomy regulation or principal adverse impacts (“PAIs”) on sustainability factors under the SFDR. PAIs are identified under the SFDR as the material impacts of investment decisions on sustainability factors relating to environmental, social and employee matters, respect for human rights, and anti-corruption and anti-bribery matters.



S U P P L E M E N T A L   I N F O R M A T I O N


Trustee and Officer Information


The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).

The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of open-end equity, multi-asset, index and money market funds and ETFs (the “BlackRock Multi-Asset Complex”), one complex of closed-end funds and open-end non-index fixed-income funds (including ETFs) (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). The Fund is included in the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 380 funds as of March 31, 2023. With the exception of Robert S. Kapito, Salim Ramji and Charles Park, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji and Mr. Park is c/o BlackRock, Inc., 50 Hudson Yards, New York, NY 10001. The Board has designated John E. Kerrigan as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).


Interested Trustees

 Name (Year of


   Position(s)    Principal Occupation(s)
During Past 5 Years
   Other Directorships Held by Trustee
Robert S. Kapito(a)
   Trustee (since 2009).   

President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002).


Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).

Salim Ramji(b)
   Trustee (since 2019).   

Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014).


Director of iShares, Inc. (since 2019); Trustee of iShares U.S. ETF Trust (since 2019).

(a) Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

(b) Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

Independent Trustees

 Name (Year of


   Position(s)    Principal Occupation(s)
During Past 5 Years
   Other Directorships Held by Trustee
John E. Kerrigan
   Trustee (since 2005); Independent Board Chair (since 2022).   

Chief Investment Officer, Santa Clara University (since 2002).


Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares, Inc. and iShares U.S. ETF Trust (since 2022).

Jane D. Carlin
   Trustee (since 2015); Risk Committee Chair (since 2016).   

Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).


Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Member of the Audit Committee (since 2016), Chair of the Audit Committee (since 2020) and Director of The Hanover Insurance Group, Inc. (since 2016).

Richard L. Fagnani
   Trustee (since 2017); Audit Committee Chair (since 2019).   

Partner, KPMG LLP (2002-2016); Director of One Generation Away (since 2021).


Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).




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Trustee and Officer Information  (continued)


Independent Trustees

 Name (Year of


   Position(s)    Principal Occupation(s)
During Past 5 Years
   Other Directorships Held by Trustee
Cecilia H. Herbert
   Trustee (since 2005); Nominating and Governance and Equity Plus Committee Chairs (since 2022).   

Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Audit and Quality Committees of Stanford Health Care (since 2016); Trustee of WNET, New York’s public media company (since 2011) and Member of the Audit Committee (since 2018), Investment Committee (since 2011) and Personnel Committee (since 2022); Chair (1994-2005) and Member (1992-2021) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015- 2018); Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Director of the Senior Center of Jackson Hole (since 2020); Director of the Jackson Hole Center for the Arts (since 2021); Member of the Wyoming State Investment Funds Committee (since 2022).


Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).

Drew E. Lawton
   Trustee (since 2017); 15(c) Committee Chair (since 2017).   

Senior Managing Director of New York Life Insurance Company (2010-2015).


Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017); Director of Jackson Financial Inc. (since 2021).

John E. Martinez
   Trustee (since 2003); Securities Lending Committee Chair (since 2019).   

Director of Real Estate Equity Exchange, Inc. (since 2005); Director of Cloudera Foundation (2017-2020); and Director of Reading Partners (2012-2016).


Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).

Madhav V. Rajan
   Trustee (since 2011); Fixed Income Plus Committee Chair (since 2019).   

Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Advisory Board Member (since 2016) and Director (since 2020) of C.M. Capital Corporation; Chair of the Board for the Center for Research in Security Prices, LLC (since 2020); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).


Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).



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Trustee and Officer Information  (continued)



 Name (Year of


  Position(s)    Principal Occupation(s)
During Past 5 Years
Dominik Rohé
  President (since 2023).   

Managing Director, BlackRock, Inc. (since 2005); Head of Americas ETF and Index Investments (since 2023); Head of Latin America (2019- 2023).

Trent Walker
  Treasurer and Chief Financial Officer (since 2020).   

Managing Director, BlackRock, Inc. (since September 2019); Chief Financial Officer of iShares Delaware Trust Sponsor LLC, BlackRock Funds, BlackRock Funds II, BlackRock Funds IV, BlackRock Funds V and BlackRock Funds VI (since 2021); Executive Vice President of PIMCO (2016-2019); Senior Vice President of PIMCO (2008-2015); Treasurer (2013-2019) and Assistant Treasurer (2007-2017) of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds.

Charles Park
  Chief Compliance Officer (since 2006).   

Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006).

Marisa Rolland
  Secretary (since 2022).   

Managing Director, BlackRock, Inc. (since 2023); Director, BlackRock, Inc. (2018-2022); Vice President, BlackRock, Inc. (2010-2017).

Rachel Aguirre
  Executive Vice President (since 2022).   

Managing Director, BlackRock, Inc. (since 2018); Director, BlackRock, Inc. (2009-2018); Head of U.S. iShares Product (since 2022); Head of EII U.S. Product Engineering (since 2021); Co-Head of EII’s Americas Portfolio Engineering (2020-2021); Head of Developed Markets Portfolio Engineering (2016-2019).

Jennifer Hsui
  Executive Vice President (since 2022).   

Managing Director, BlackRock, Inc. (since 2009); Co-Head of Index Equity (since 2022).

James Mauro
  Executive Vice President (since 2022).   

Managing Director, BlackRock, Inc. (since 2010); Head of Fixed Income Index Investments in the Americas and Head of San Francisco Core Portfolio Management (since 2020).


Effective June 15, 2022, Marisa Rolland replaced Deepa Damre Smith as Secretary.


Effective March 30, 2023, Dominik Rohé replaced Armando Senra as President.




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General Information


Electronic Delivery

Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:



Go to icsdelivery.com.


If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.


Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, the Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.



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Glossary of Terms Used in this Report


Portfolio Abbreviation
CMT    Constant Maturity Treasury
LIBOR    London Interbank Offered Rate
LP    Limited Partnership
NVS    Non-Voting Shares
REIT    Real Estate Investment Trust
SOFR    Secured Overnight Financing Rate




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Want to know more?

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This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by ICE Data Indices, LLC, nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

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