LOGO

  FEBRUARY 29, 2024

 

 

  

 

2024 Semi-Annual Report

(Unaudited)

 

 

 

iShares Trust

·  iShares Emergent Food and AgTech Multisector ETF | IVEG | NASDAQ

·  iShares ESG Aware MSCI EAFE ETF | ESGD | NASDAQ

·  iShares ESG MSCI EM Leaders ETF | LDEM | NASDAQ

·  iShares MSCI Global Sustainable Development Goals ETF | SDG | NASDAQ

·  iShares MSCI Water Management Multisector ETF | IWTR | NASDAQ

·  iShares Paris-Aligned Climate MSCI World ex USA ETF | PABD | NASDAQ


The Markets in Review

Dear Shareholder,

The combination of continued economic growth and cooling inflation provided a supportive backdrop for investors during the 12-month reporting period ended February 29, 2024. Significantly tighter monetary policy helped to rein in inflation, and the Consumer Price Index decelerated substantially while remaining above pre-pandemic levels. A moderating labor market helped ease inflationary pressure, although wages continued to grow. Wage and job growth powered robust consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.

Equity returns were robust during the period, as interest rates stabilized and the economy proved to be more resilient than many investors expected. The U.S. economy continued to show strength, and growth further accelerated in the second half of 2023. Large-capitalization U.S. stocks posted particularly substantial gains, supported by the performance of a few notable technology companies, while small-capitalization U.S. stocks advanced at a significantly slower pace. Meanwhile, international developed market equities also gained strongly, while emerging market stocks advanced at a more modest pace.

The 10-year U.S. Treasury yield rose during the reporting period, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. However, higher yields drove positive returns overall for 10-year U.S. Treasuries and solid gains in shorter-duration U.S. Treasuries. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.

The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates three times during the 12-month period, but paused its tightening after its July meeting. The Fed also continued to reduce its balance sheet by not replacing some of the securities that reach maturity.

Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has stopped tightening for now, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period despite the market’s hopes for rapid interest rate cuts, as reflected in the recent rally. In this new regime, we anticipate greater volatility and dispersion of returns, creating more opportunities for selective portfolio management.

Looking at developed market stocks, we have an overweight stance on U.S. stocks overall, particularly given the promise of emerging AI technologies. We are also overweight Japanese stocks as shareholder-friendly policies generate increased investor interest, although we maintain an underweight stance on European stocks. In credit, there are selective opportunities in the near term despite tighter credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries and hard-currency emerging market bonds.

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.

 

LOGO

Rob Kapito

President, BlackRock Inc.

LOGO

Rob Kapito

President, BlackRock Inc.

 

Total Returns as of February 29, 2024

 

 
    

 

6-Month

 

   

 

 12-Month

 

 
   

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

    13.93%        30.45%  
   

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

    8.97          10.05    
   

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

    9.23          14.41    
   

Emerging market equities
(MSCI Emerging Markets Index)

    4.93          8.73    
   

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

    2.69          5.22    
   

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

    0.58          0.69    
   

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

    2.35          3.33    
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

    4.33          5.42    
   

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

    6.18          11.01    
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

2  

T H I S  P A G EI SN O T  P A R TO F  Y O U R  F U N D  R E P O R T


Table of Contents

 

      Page  

The Markets in Review

     2  

Semi-Annual Report:

  

Fund Summary

     4  

About Fund Performance

     10  

Disclosure of Expenses

     10  

Schedules of Investments

     11  

Financial Statements

  

Statements of Assets and Liabilities

     40  

Statements of Operations

     42  

Statements of Changes in Net Assets

     44  

Financial Highlights

     47  

Notes to Financial Statements

     53  

Board Review and Approval of Investment Advisory Contract

     63  

Statement Regarding Liquidity Risk Management Program

     65  

Supplemental Information

     66  

General Information

     67  

Glossary of Terms Used in this Report

     68  


Fund Summary as of February 29, 2024    iShares® Emergent Food and AgTech Multisector ETF

 

Investment Objective

The iShares Emergent Food and AgTech Multisector ETF (the “Fund”) seeks to track the investment results of an index composed of companies from U.S. and non-U.S. markets that are expected to benefit from creating or using agricultural technologies or innovative food products or services as represented by the Morningstar Global Food Innovation Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns             Cumulative Total Returns  
    

6-Month

Total Returns

    1 Year    

Since

Inception

            1 Year    

Since

Inception

 

Fund NAV

    (1.01 )%      (6.38 )%      (9.69 )%         (6.38 )%      (17.17 )% 

Fund Market

    (1.27     (6.61     (9.71        (6.61     (17.22

Index

    (1.05     (6.70     (9.69              (6.70     (17.17

The inception date of the Fund was April 25, 2022. The first day of secondary market trading was April 27, 2022. 

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

      Actual            Hypothetical 5% Return               
         

Beginning

Account Value

(09/01/23)

 

 

 

   

  

 

 

 

   

Ending

Account Value

(02/29/24)

 

 

 

   

  

 

 

 

   

Expenses

Paid During

the Period

 

 

(a) 

            

Beginning

Account Value

(09/01/23)

 

 

 

    

  

 

 

 

   

Ending

Account Value

(02/29/24)

 

 

 

   

  

 

 

 

   

Expenses

Paid During

the Period

 

 

(a) 

            

 Annualized

Expense

Ratio

 

 

 

        $    1,000.00               $   989.90               $    2.33                $   1,000.00                $   1,022.50               $    2.36                0.47

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (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.

 

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector  

Percent of  

Total Investments(a)

Materials

  49.2%

Industrials

  18.4  

Consumer Staples

  14.1  

Health Care

  13.2  

Information Technology

  5.1  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region  

Percent of  

Total Investments(a)

United States

  60.8%

Germany

  9.8  

France

  6.8  

Norway

  6.2  

Netherlands

  4.6  

Japan

  3.9  

Canada

  3.8  

United Kingdom

  3.5  

Australia

  0.6  

 

  (a) 

Excludes money market funds.

 

 

 

4  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Fund Summary as of February 29, 2024    iShares® ESG Aware MSCI EAFE ETF

 

Investment Objective

The iShares ESG Aware MSCI EAFE ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization developed market equities, excluding the U.S. and Canada that have positive environmental, social and governance characteristics, as identified by the index provider while exhibiting risk and return characteristics similar to those of the parent index, as represented by the MSCI EAFE Extended ESG Focus Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
    

6-Month

Total Returns

    1 Year     5 Years    

Since

Inception

            1 Year     5 Years    

Since

Inception

 

Fund NAV

    8.84     14.35     7.02     8.12        14.35     40.38     82.06

Fund Market

    8.92       14.53       7.04       8.14          14.53       40.53       82.31  

Index

    8.63       13.87       7.03       8.19                13.87       40.48       82.92  

The inception date of the Fund was June 28, 2016. The first day of secondary market trading was June 30, 2016.

Index performance through May 31, 2018 reflects the performance of the MSCI EAFE ESG Focus Index. Index performance beginning on June 1, 2018 reflects the performance of the MSCI EAFE Extended ESG Focus Index.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

    Actual            Hypothetical 5% Return               
     

Beginning

Account Value

(09/01/23)

 

 

 

            

Ending

Account Value

(02/29/24)

 

 

 

             

Expenses

Paid During

the Period

 

 

(a) 

            

Beginning

Account Value

(09/01/23)

 

 

 

            

Ending

Account Value

(02/29/24)

 

 

 

            

Expenses

Paid During

the Period

 

 

(a) 

            

 Annualized

Expense

Ratio

 

 

 

    $   1,000.00               $ 1,088.40                $    1.04                $   1,000.00               $   1,023.90               $    1.01                0.20

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (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.

 

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector  

Percent of  

Total Investments(a)

Financials

  18.9%

Industrials

  17.0  

Consumer Discretionary

  12.6  

Health Care

  12.5  

Information Technology

  10.0  

Consumer Staples

  8.6  

Materials

  7.3  

Energy

  4.3  

Communication Services

  3.9  

Utilities

  3.0  

Real Estate

  1.9  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region  

Percent of  

Total Investments(a)

Japan

  23.7%

United Kingdom

  13.8  

France

  11.3  

Switzerland

  10.3  

Germany

  8.0  

Australia

  7.2  

Netherlands

  5.0  

Denmark

  3.7  

Sweden

  3.0  

Spain

  2.5  

Italy

  2.4  

Hong Kong

  1.9  

Finland

  1.5  

Ireland

  1.3  

Singapore

  1.2  

Norway

  1.0  

Other (each representing less than 1%)

  2.2  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D  S U M M A R Y

  5


Fund Summary as of February 29, 2024    iShares® ESG MSCI EM Leaders ETF

 

Investment Objective

The iShares ESG MSCI EM Leaders ETF (the “Fund”) seeks to track the investment results of an index composed of large and mid-capitalization stocks of emerging market companies with high environmental, social, and governance performance relative to their sector peers as determined by the index provider, as represented by the MSCI EM Extended ESG Leaders 5% Issuer Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

            Average Annual Total Returns           Cumulative Total Returns  
    

6-Month

Total Returns

    1 Year    

Since

Inception

   

   1 Year    

Since

Inception

 

Fund NAV

    1.03     2.35     (1.22 )%         2.35     (4.86 )% 

Fund Market

    0.97       2.07       (1.39        2.07       (5.55

Index

    1.64       3.31       (0.62          3.31       (2.49

The inception date of the Fund was February 5, 2020. The first day of secondary market trading was February 7, 2020.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

      Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      
         

Beginning

Account Value

(09/01/23)

 

 

 

      

Ending

Account Value

(02/29/24)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

           

Beginning

Account Value

(09/01/23)

 

 

 

      

Ending

Account Value

(02/29/24)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a)  

      

Annualized

Expense

Ratio

 

 

 

  $   1,000.00          $   1,010.30          $   0.80               $   1,000.00          $   1,024.10          $   0.81          0.16

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (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.

 

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector  

Percent of  

Total Investments(a)

Financials

  24.7%

Information Technology

  13.6  

Communication Services

  13.2  

Consumer Discretionary

  13.1  

Industrials

  8.0  

Materials

  6.6  

Consumer Staples

  6.2  

Energy

  5.5  

Health Care

  4.2  

Utilities

  2.8  

Real Estate

  2.1  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region  

Percent of  

Total Investments(a)

China

  27.5%

India

  18.7  

Taiwan

  14.5  

South Korea

  7.2  

South Africa

  5.0  

Brazil

  4.8  

Mexico

  3.4  

Saudi Arabia

  2.6  

Indonesia

  2.5  

Malaysia

  2.4  

Thailand

  2.4  

United Arab Emirates

  2.3  

Poland

  1.4  

Other (each representing less than 1%)

  5.3  

 

  (a) 

Excludes money market funds.

 

 

 

6  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Fund Summary as of February 29, 2024    iShares® MSCI Global Sustainable Development Goals ETF

 

Investment Objective

The iShares MSCI Global Sustainable Development Goals ETF (the “Fund”) (formerly the iShares MSCI Global Impact ETF) seeks to track the investment results of an index composed of companies that derive a majority of their revenue from products and services that address at least one of the world’s major social and environmental challenges as identified by the United Nations Sustainable Development Goals, as represented by the MSCIACWI Sustainable Impact Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns           Cumulative Total Returns  
    

6-Month

Total Returns

    1 Year     5 Years    

Since

Inception

       1 Year     5 Years    

Since

Inception

 

Fund NAV

    (0.96 )%      1.07     7.67     7.98        1.07     44.68     82.86

Fund Market

    (1.09     0.82       7.45       7.91          0.82       43.20       81.97  

Index

    (1.19     1.17       7.64       8.08            1.17       44.52       84.23  

The inception date of the Fund was April 20, 2016. The first day of secondary market trading was April 22, 2016.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

      Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      
         

Beginning

Account Value

(09/01/23)

 

 

 

      

Ending

Account Value

(02/29/24)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

           

Beginning

Account Value

(09/01/23)

 

 

 

      

Ending

Account Value

(02/29/24)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a)  

      

Annualized

Expense

Ratio

 

 

 

  $   1,000.00          $    990.40          $   2.42               $   1,000.00          $   1,022.40          $   2.46          0.49

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (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.

 

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   

Percent of

Total Investments

 

(a) 

Consumer Staples

    20.1

Health Care

    19.5  

Industrials

    18.4  

Real Estate

    16.9  

Consumer Discretionary

    11.1  

Materials

    6.0  

Information Technology

    4.5  

Utilities

    3.5  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region    

Percent of

Total Investments

 

(a) 

United States

    23.4

China

    14.6  

Japan

    13.1  

Denmark

    9.1  

France

    5.5  

Switzerland

    4.4  

Hong Kong

    4.2  

Belgium

    4.2  

South Korea

    3.7  

Sweden

    2.7  

Canada

    2.5  

Germany

    2.4  

Taiwan

    1.8  

United Kingdom

    1.8  

Australia

    1.4  

Norway

    1.0  

Other (each representing less than 1%)

    4.2  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D  S U M M A R Y

  7


 

Fund Summary as of February 29, 2024    iShares® MSCI Water Management Multisector ETF

 

Investment Objective

The iShares MSCI Water Management Multisector ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. and non-U.S. companies that either 1) derive a proportion of their revenues from sustainable water products or services or 2) demonstrate relative efficiency in their water management, as represented by the MSCI ACWI IMI Sustainable Water Transition Extended Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns           Cumulative Total Returns  
    

6-Month

Total Returns

    1 Year    

Since

Inception

       1 Year    

Since

Inception

 

Fund NAV

    10.07     14.09     16.96        14.09     25.38

Fund Market

    9.65       13.90       16.77          13.90       25.08  

Index

    10.07       13.92       16.78            13.92       25.12  

The inception date of the Fund was September 20, 2022. The first day of secondary market trading was September 22, 2022.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

      Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      
         

Beginning

Account Value

(09/01/23)

 

 

 

      

Ending

Account Value

(02/29/24)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

           

Beginning

Account Value

(09/01/23)

 

 

 

      

Ending

Account Value

(02/29/24)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

  $   1,000.00          $   1,100.70          $   2.45               $   1,000.00          $   1,022.50          $   2.36          0.47

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (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.

 

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector  

Percent of  

Total Investments(a)

Industrials

  32.7%

Utilities

  17.4  

Information Technology

  15.0  

Consumer Staples

  13.7  

Consumer Discretionary

  10.9  

Materials

  9.9  

Real Estate

  0.4  

GEOGRAPHIC ALLOCATION

 

   

Country/Geographic Region

 

Percent of  

Total Investments(a)

United States

  52.4%

United Kingdom

  8.0  

Taiwan

  6.8  

Switzerland

  6.1  

Brazil

  4.9  

Japan

  4.5  

France

  4.4  

Mexico

  2.7  

Austria

  2.6  

India

  2.5  

Saudi Arabia

  2.3  

China

  1.8  

Other (each representing less than 1%)

  1.0  

 

  (a) 

Excludes money market funds.

 

 

 

8  

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Fund Summary as of February 29, 2024    iShares® Paris-Aligned Climate MSCI World ex USA ETF

 

Investment Objective

The iShares Paris-Aligned Climate MSCI World ex USA ETF(the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization developed market equities, excluding the U.S., that is designed to be compatible with the objectives of the Paris Agreement by, in aggregate, following a decarbonization trajectory, reducing exposure to climate-related transition and physical risks and increasing exposure to companies favorably positioned for the transition to a low-carbon economy, as represented by the MSCI World ex USA Climate Paris Aligned Benchmark Extended Select Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

     Cumulative Total Returns  
    

Since

Inception

 

Fund NAV

    5.48

Fund Market

    6.29  

Index

    5.51  

The inception date of the Fund was January 17, 2024. The first day of secondary market trading was January 19, 2024.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

      Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      
         

Beginning

Account Value

(01/17/24)

 

 

(a)  

      

Ending

Account Value

(02/29/24)

 

 

 

      

Expenses

Paid During

the Period

 

 

(b)  

           

Beginning

Account Value

(09/01/23)

 

 

 

      

Ending

Account Value

(02/29/24)

 

 

 

      

Expenses

Paid During

the Period

 

 

(b)  

      

Annualized

Expense

Ratio

 

 

 

  $   1,000.00          $   1,054.80          $   0.15               $   1,000.00          $   1,024.30          $   0.60          0.12

 

  (a) 

Commencement of operations.

 
  (b) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 44/366 for actual expenses and 182/366 for hypothetical expenses (to reflect the six month period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector  

Percent of  

Total Investments(a)

Financials

  23.5%

Industrials

  18.6  

Health Care

  13.3  

Consumer Discretionary

  11.0  

Information Technology

  10.6  

Real Estate

  5.6  

Materials

  5.5  

Consumer Staples

  5.3  

Utilities

  3.7  

Communication Services

  2.6  

Energy

  0.3  

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region  

Percent of  

Total Investments(a)

Japan

  20.7%

Canada

  12.3  

France

  10.5  

United Kingdom

  10.1  

Switzerland

  9.9  

Germany

  6.3  

Australia

  6.3  

Netherlands

  4.5  

Denmark

  3.6  

Sweden

  3.1  

Italy

  2.3  

Spain

  2.1  

Finland

  1.4  

Hong Kong

  1.4  

Singapore

  1.3  

Belgium

  1.2  

Other (each representing less than 1%)

  3.0  

 

  (a) 

Excludes money market funds.

 

 

 

F U N D  S U M M A R Y

  9


About Fund Performance

 

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

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

Disclosure of Expenses

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

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

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

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

 

 

10  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited) 

February 29, 2024

  

iShares® Emergent Food and AgTech Multisector ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Australia — 0.6%            

Nufarm Ltd./Australia

    7,055     $ 26,454  
   

 

 

 
Canada — 3.8%            

Nutrien Ltd.

    3,455       180,343  
   

 

 

 
France — 6.7%            

Danone SA

    2,924       186,584  

Eurofins Scientific SE

    2,304       137,694  
   

 

 

 
      324,278  
Germany — 9.8%            

BASF SE

    3,860       196,617  

Bayer AG, Registered

    5,292       159,893  

GEA Group AG

    2,784       112,297  
   

 

 

 
      468,807  
Japan — 3.9%            

Kubota Corp.

    12,800       187,858  
   

 

 

 
Netherlands — 4.6%            

CNH Industrial NV

    16,817       200,963  

Corbion NV

    1,105       20,972  
   

 

 

 
       221,935  
Norway — 6.2%            

Bakkafrost P/F

    907       56,660  

Mowi ASA

    8,389       162,017  

Salmar ASA

    1,263       80,212  
   

 

 

 
      298,889  
United Kingdom — 3.4%            

Croda International PLC

    2,292       138,178  

Genus PLC

    1,200       27,137  
   

 

 

 
      165,315  
United States — 60.5%            

AGCO Corp.

    1,111       121,877  

CF Industries Holdings Inc.

    2,480       200,186  

Corteva Inc.

    4,185       223,981  

Deere & Co.

    512       186,906  

Ecolab Inc.

    973       218,769  
Security   Shares     Value  

 

 
United States (continued)            

Exponent Inc.

    855     $ 69,161  

FMC Corp.

    2,191       123,550  

International Flavors & Fragrances Inc.

    2,444       184,522  

International Paper Co.

    5,075       179,452  

Kellanova

    3,430       189,164  

Mosaic Co. (The)

    5,265       164,057  

Neogen Corp.(a)

    3,685       63,345  

Packaging Corp. of America

    1,130       204,745  

Sealed Air Corp.

    2,436       84,943  

Sotera Health Co.(a)

    1,917       28,774  

Trimble Inc.(a)

    3,989       244,087  

Waters Corp.(a)(b)

    637       214,937  

Westrock Co.

    4,510       204,258  
   

 

 

 
       2,906,714  
   

 

 

 

Total Long-Term Investments — 99.5%
(Cost: $5,732,504)

      4,780,593  
   

 

 

 

Short-Term Securities

   

Money Market Funds — 4.5%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.50%(c)(d)(e)

    216,927       217,035  
   

 

 

 

Total Short-Term Securities — 4.5%
(Cost: $217,035)

      217,035  
   

 

 

 

Total Investments — 104.0%
(Cost: $5,949,539)

      4,997,628  

Liabilities in Excess of Other Assets — (4.0)%

      (193,067
   

 

 

 

Net Assets — 100.0%

    $ 4,804,561  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

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

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 29, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   

Value at

08/31/23

    

Purchases

at Cost

    

Proceeds

from Sale

    

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

02/29/24

    

Shares

Held at

02/29/24

     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $      $ 217,029 (a)     $      $ 6      $      $ 217,035        216,927      $ 53 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares(c)

                   0 (a)                                   41         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ 6      $      $ 217,035         $ 94      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 
  (c) 

As of period end, the entity is no longer held.

 

 

 

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

  11


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® Emergent Food and AgTech Multisector ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description  

Number of

Contracts

   

Expiration

Date

   

Notional

Amount

(000)

   

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Long Contracts

       

Micro E-Mini Russell 2000 Index

    2       03/15/24     $ 21     $ 71  
       

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
   

Commodity

Contracts

   

Credit

Contracts

   

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

   

Interest

Rate

Contracts

   

Other

Contracts

    Total  

 

 

Assets — Derivative Financial Instruments

             

Futures contracts

             

Unrealized appreciation on futures contracts(a)

  $     $     $ 71     $     $     $     $ 71  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended February 29, 2024, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
   

Commodity

Contracts

   

Credit

Contracts

   

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

   

Interest

Rate

Contracts

   

Other

Contracts

    Total
 

 

 

Net Realized Gain (Loss) from

             

Futures contracts

  $     $     $ 582     $     $     $     $ 582  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

             

Futures contracts

  $     $     $ 62     $     $     $     $ 62  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 23,878   

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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  

 

 

Assets

          

Investments

          

Long-Term Investments

          

Common Stocks

  $ 3,288,020      $ 1,492,573      $      $ 4,780,593  

Short-Term Securities

          

Money Market Funds

    217,035                      217,035  
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 3,505,055      $ 1,492,573      $    —      $ 4,997,628  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

 

12  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® Emergent Food and AgTech Multisector ETF

 

Fair Value Hierarchy as of Period End (continued)

 

 

 
    Level 1      Level 2      Level 3      Total  

 

 

Derivative Financial Instruments(a)

          

Assets

          

Equity Contracts

  $      71      $       —      $     —      $     71  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

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

  13


Schedule of Investments (unaudited)

February 29, 2024

  

iShares® ESG Aware MSCI EAFE ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Australia — 7.2%            

ANZ Group Holdings Ltd.

    1,007,937     $ 18,682,773  

APA Group

    1,847,228       9,430,595  

Aristocrat Leisure Ltd.

    346,138       10,516,855  

ASX Ltd.

    194,516       8,334,405  

Aurizon Holdings Ltd.

    2,816,828       6,975,872  

BlueScope Steel Ltd.

    603,895       8,980,206  

Brambles Ltd.

    2,241,729       22,011,506  

Cochlear Ltd.

    81,568       18,593,688  

Coles Group Ltd.

    752,323       8,274,993  

Commonwealth Bank of Australia

    856,615       64,979,795  

Computershare Ltd.

    551,457       9,319,626  

CSL Ltd.

    250,255       46,588,529  

Fortescue Ltd.

    1,123,504       18,962,508  

Goodman Group

    781,970       15,223,069  

GPT Group (The)

    2,852,376       8,067,138  

IGO Ltd.

    109,090       562,671  

Insurance Australia Group Ltd.

    1,918,830       7,745,672  

James Hardie Industries PLC(a)

    209,853       8,300,821  

Macquarie Group Ltd.

    216,853       27,535,857  

Mineral Resources Ltd.

    217,394       9,433,643  

National Australia Bank Ltd.

    840,181       18,668,083  

Northern Star Resources Ltd.

    921,171       7,657,389  

Orica Ltd.

    785,079       8,748,882  

Pilbara Minerals Ltd.(b)

    3,245,489       8,862,769  

QBE Insurance Group Ltd.

    1,724,399       19,408,063  

Ramsay Health Care Ltd.

    231,889       8,272,607  

REA Group Ltd.

    64,431       8,148,547  

Rio Tinto Ltd.

    188,473       15,177,524  

Santos Ltd.

    1,587,164       7,308,151  

Sonic Healthcare Ltd.

    384,195       7,455,601  

Stockland

    2,304,815       6,726,600  

Suncorp Group Ltd.

    1,436,521       14,306,383  

Telstra Group Ltd.

    3,175,406       7,889,969  

Transurban Group

    4,799,193       42,291,536  

Westpac Banking Corp.

    858,246       14,726,856  

Woodside Energy Group Ltd.

    1,693,517       33,411,030  

Xero Ltd.(a)

    102,764       8,546,732  
   

 

 

 
       566,126,944  
Austria — 0.3%            

OMV AG

    221,733       9,770,873  

Verbund AG

    134,444       9,732,386  
   

 

 

 
      19,503,259  
Belgium — 0.9%            

Anheuser-Busch InBev SA/NV

    494,984       29,917,087  

Argenx SE(a)

    24,591       9,217,079  

KBC Group NV

    393,259       27,702,280  
   

 

 

 
      66,836,446  
Denmark — 3.7%            

AP Moller - Maersk A/S, Class B, NVS

    4,966       7,047,463  

Carlsberg A/S, Class B

    65,484       9,147,000  

Coloplast A/S, Class B

    61,567       8,178,143  

DSV A/S

    66,104       10,606,415  

Genmab A/S(a)

    36,676       10,189,330  

Novo Nordisk A/S

    1,594,099       190,280,624  

Novozymes A/S, Class B

    178,314       10,058,315  

Orsted A/S(c)

    199,356       11,164,279  

Pandora A/S

    81,475       13,176,147  

Vestas Wind Systems A/S(a)

    610,488       17,013,094  
   

 

 

 
      286,860,810  
Security   Shares     Value  

 

 
Finland — 1.5%            

Elisa OYJ

    293,358     $ 13,208,769  

Kesko OYJ, Class B

    485,857       9,289,385  

Metso OYJ

    898,763       9,613,855  

Neste OYJ

    459,041       12,583,275  

Nokia OYJ

    4,992,952       17,600,617  

Nordea Bank Abp, New

    975,275       11,869,575  

Sampo OYJ, Class A

    260,605       11,652,347  

Stora Enso OYJ, Class R

    647,669       8,188,872  

UPM-Kymmene OYJ

    499,135       16,705,737  

Wartsila OYJ Abp

    549,999       8,514,410  
   

 

 

 
       119,226,842  
France — 11.3%            

Aeroports de Paris SA

    54,176       7,360,161  

Air Liquide SA

    140,446       28,546,016  

Airbus SE

    162,165       26,831,654  

AXA SA

    1,121,248       39,918,555  

BNP Paribas SA

    519,896       31,204,155  

Bouygues SA

    213,444       8,440,785  

Capgemini SE

    37,074       9,018,018  

Carrefour SA

    458,907       7,710,257  

Cie. de Saint-Gobain SA

    117,114       9,028,388  

Cie. Generale des Etablissements Michelin SCA

    1,109,793       41,069,497  

Covivio SA/France

    380,460       17,083,427  

Danone SA

    619,200       39,511,959  

Dassault Systemes SE

    550,876       25,814,639  

Engie SA

    790,587       12,686,061  

EssilorLuxottica SA

    134,842       28,631,570  

Eurazeo SE

    101,674       8,601,666  

Gecina SA

    77,308       7,467,307  

Hermes International SCA

    14,551       36,411,536  

Kering SA

    52,755       24,300,417  

L’Oreal SA

    120,939       57,768,797  

LVMH Moet Hennessy Louis Vuitton SE

    129,793       118,466,625  

Pernod Ricard SA

    120,103       20,073,248  

Publicis Groupe SA

    106,233       11,240,034  

Rexel SA

    568,094       14,551,698  

Safran SA

    112,956       23,685,792  

Sanofi SA

    439,219       41,863,953  

Schneider Electric SE

    389,753       88,587,771  

Societe Generale SA

    487,468       11,838,467  

TotalEnergies SE

    1,278,870       81,514,083  

Worldline SA/France(a)(c)

    591,389       6,807,993  
   

 

 

 
      886,034,529  
Germany — 7.7%            

adidas AG

    89,999       18,205,002  

Allianz SE, Registered

    194,561       53,437,218  

BASF SE

    162,434       8,273,900  

Bayer AG, Registered

    354,122       10,699,493  

Bayerische Motoren Werke AG

    280,835       33,219,436  

Commerzbank AG

    653,957       7,570,155  

Continental AG

    95,548       7,664,401  

Daimler Truck Holding AG

    197,760       8,075,056  

Deutsche Bank AG, Registered

    828,031       11,089,578  

Deutsche Boerse AG

    118,350       24,776,240  

Deutsche Lufthansa AG, Registered(a)

    967,620       7,525,013  

E.ON SE

    654,554       8,358,194  

GEA Group AG

    267,307       10,782,219  

Heidelberg Materials AG

    92,556       8,987,082  

Henkel AG & Co. KGaA

    314,997       21,251,810  

Infineon Technologies AG

    735,304       26,401,497  

LEG Immobilien SE(a)

    101,709       7,491,825  

 

 

14  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® ESG Aware MSCI EAFE ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
Germany (continued)            

Mercedes-Benz Group AG

    334,540     $ 26,657,748  

Merck KGaA

    147,042       25,018,727  

MTU Aero Engines AG

    32,185       7,742,072  

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered

    97,542       45,412,911  

Puma SE

    170,309       7,833,090  

Rheinmetall AG

    23,190       10,640,883  

SAP SE

    626,162       117,338,550  

Siemens AG, Registered

    384,865       76,191,265  

Vonovia SE

    268,166       7,484,282  

Zalando SE(a)(b)(c)

    361,870       7,658,357  
   

 

 

 
       605,786,004  
Hong Kong — 1.8%            

AIA Group Ltd.

    5,443,000       43,877,031  

BOC Hong Kong Holdings Ltd.

    3,600,500       9,459,266  

Hang Lung Properties Ltd.

    7,125,000       7,647,355  

Hang Seng Bank Ltd.

    725,600       8,267,609  

Hong Kong Exchanges & Clearing Ltd.

    660,200       20,333,208  

MTR Corp. Ltd.

    9,438,000       31,223,464  

Sands China Ltd.(a)

    2,607,600       7,403,875  

Sino Land Co. Ltd.

    7,488,000       8,064,100  

Swire Pacific Ltd., Class A

    994,500       8,238,371  
   

 

 

 
      144,514,279  
Ireland — 1.3%            

CRH PLC

    576,544       48,020,510  

Flutter Entertainment PLC(a)

    89,513       19,382,692  

Kerry Group PLC, Class A

    253,895       22,294,984  

Kingspan Group PLC

    95,986       8,679,905  
   

 

 

 
      98,378,091  
Israel — 0.6%            

Bank Hapoalim BM

    1,503,054       14,397,366  

CyberArk Software Ltd.(a)

    29,198       7,701,265  

Elbit Systems Ltd.

    37,569       8,356,690  

Isracard Ltd.

    1       4  

Nice Ltd.(a)

    42,953       10,508,718  

Wix.com Ltd.(a)

    60,382       8,464,349  
   

 

 

 
      49,428,392  
Italy — 2.4%            

Assicurazioni Generali SpA

    1,825,019       43,287,641  

Enel SpA

    5,053,530       32,155,854  

Eni SpA

    514,822       7,927,451  

Intesa Sanpaolo SpA

    9,873,226       31,440,360  

Mediobanca Banca di Credito Finanziario SpA

    602,508       8,207,401  

Moncler SpA

    218,221       15,721,971  

Stellantis NV

    394,972       10,332,307  

Terna - Rete Elettrica Nazionale

    1,151,469       9,020,609  

UniCredit SpA

    882,922       29,573,124  
   

 

 

 
      187,666,718  
Japan — 23.5%            

Advantest Corp.

    376,700       17,733,490  

Aeon Co. Ltd.

    350,500       8,368,873  

Ajinomoto Co. Inc.

    546,300       20,093,608  

ANA Holdings Inc.(a)

    367,300       8,007,964  

Asahi Group Holdings Ltd.

    313,400       10,736,291  

Asahi Kasei Corp.

    3,532,600       24,579,736  

Astellas Pharma Inc.

    1,289,800       14,095,903  

Azbil Corp.

    396,700       11,657,933  

Bridgestone Corp.

    1,211,200       52,011,979  

Chugai Pharmaceutical Co. Ltd.

    448,600       17,917,812  

Daifuku Co. Ltd.

    357,900       8,497,837  

Daiichi Sankyo Co. Ltd.

    957,400       31,530,921  
Security   Shares     Value  

 

 
Japan (continued)            

Daikin Industries Ltd.

    141,100     $ 19,886,956  

Daiwa Securities Group Inc.

    3,786,400        27,915,954  

Disco Corp.

    33,600       10,949,813  

Eisai Co. Ltd.

    184,000       7,632,445  

ENEOS Holdings Inc.

    2,605,600       11,242,088  

FANUC Corp.

    887,200       25,861,338  

Fast Retailing Co. Ltd.

    93,500       27,082,259  

FUJIFILM Holdings Corp.

    211,200       13,452,740  

Fujitsu Ltd.

    147,600       23,065,850  

Hankyu Hanshin Holdings Inc.

    771,800       22,256,882  

Hitachi Ltd.

    530,900       44,978,115  

Honda Motor Co. Ltd.

    3,419,000       40,626,471  

Hoya Corp.

    263,400       34,383,452  

Ibiden Co. Ltd.

    190,900       8,836,182  

Inpex Corp.

    779,100       10,384,398  

ITOCHU Corp.

    1,104,600       47,984,848  

JFE Holdings Inc.

    708,400       11,617,978  

Kao Corp.

    226,000       8,551,391  

KDDI Corp.

    1,579,100       47,738,975  

Keyence Corp.

    58,200       27,275,752  

Kirin Holdings Co. Ltd.

    597,900       8,312,087  

Komatsu Ltd.

    459,900       13,350,011  

Kubota Corp.

    992,200       14,561,924  

Marubeni Corp.

    1,449,100       24,014,480  

MatsukiyoCocokara & Co.

    429,100       7,115,843  

Mazda Motor Corp.

    657,400       7,634,064  

Mitsubishi Chemical Group Corp.

    1,322,800       7,590,674  

Mitsubishi Corp.

    1,320,000       28,313,386  

Mitsubishi Electric Corp.

    1,198,100       19,083,314  

Mitsubishi Heavy Industries Ltd.

    201,600       15,956,013  

Mitsubishi UFJ Financial Group Inc.

    4,652,000       47,789,082  

Mitsui Chemicals Inc.

    277,300       7,690,123  

Mitsui Fudosan Co. Ltd.

    452,800       12,292,098  

Mizuho Financial Group Inc.

    1,476,200       27,578,491  

NEC Corp.

    163,200       11,015,543  

Nintendo Co. Ltd.

    402,880       22,513,026  

Nippon Telegraph & Telephone Corp.

    6,476,600       7,876,617  

Nippon Yusen KK

    288,300       9,181,331  

Nitto Denko Corp.

    85,500       7,861,208  

Nomura Holdings Inc.

    2,547,700       14,505,746  

Nomura Research Institute Ltd.

    490,900       13,794,306  

Obayashi Corp.

    844,200       8,173,068  

Omron Corp.

    332,600       12,366,965  

Oriental Land Co. Ltd./Japan

    619,000       22,185,084  

ORIX Corp.

    593,100       12,461,348  

Pan Pacific International Holdings Corp.

    316,700       7,466,058  

Panasonic Holdings Corp.

    1,399,400       13,229,410  

Rakuten Group Inc.(a)(b)

    1,468,000       8,046,066  

Recruit Holdings Co. Ltd.(b)

    726,100       29,287,852  

Renesas Electronics Corp.

    843,600       13,938,871  

Secom Co. Ltd.

    111,200       8,114,502  

Seiko Epson Corp.

    493,700       7,991,816  

Sekisui Chemical Co. Ltd.

    572,000       8,064,893  

Sekisui House Ltd.

    1,053,100       23,458,513  

Seven & i Holdings Co. Ltd.

    570,300       8,499,144  

SG Holdings Co. Ltd.

    831,300       10,428,498  

Shimadzu Corp.

    299,600       8,184,546  

Shin-Etsu Chemical Co. Ltd.

    637,200       27,192,087  

Shionogi & Co. Ltd.

    159,800       7,955,942  

Shiseido Co. Ltd.

    275,800       7,498,190  

SoftBank Corp.

    3,436,500       45,201,881  

SoftBank Group Corp.

    469,800       27,827,555  

 

 

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

  15


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® ESG Aware MSCI EAFE ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)            

Sompo Holdings Inc.

    329,600     $ 19,323,072  

Sony Group Corp.

    789,300       67,996,732  

Sumitomo Metal Mining Co. Ltd.

    423,600       11,027,304  

Sumitomo Mitsui Financial Group Inc.

    585,300       32,609,703  

Sumitomo Mitsui Trust Holdings Inc.

    393,600       7,975,607  

Sysmex Corp.

    224,800       12,623,601  

Takeda Pharmaceutical Co. Ltd.

    769,594       22,507,684  

TDK Corp.

    165,700       8,639,077  

Terumo Corp.

    209,900       8,178,058  

Tokio Marine Holdings Inc.

    885,600       25,874,274  

Tokyo Electron Ltd.

    249,400       61,878,356  

Tokyo Gas Co. Ltd.

    369,700       8,092,059  

Tokyu Corp.

    662,000       8,237,152  

Toray Industries Inc.

    4,425,200       20,417,575  

Toyota Motor Corp.

    4,634,500       111,628,480  

Unicharm Corp.(b)

    227,100       7,531,345  

West Japan Railway Co.

    190,900       7,937,947  

Yamaha Corp.

    494,000       10,803,258  

Yamaha Motor Co. Ltd.

    2,525,700       22,643,737  

Yaskawa Electric Corp.

    411,600       16,870,826  

Yokogawa Electric Corp.

    678,200       14,356,000  
   

 

 

 
       1,849,709,737  
Netherlands — 5.0%            

Adyen NV(a)(c)

    8,973       14,197,415  

AerCap Holdings NV(a)

    98,109       7,572,053  

Akzo Nobel NV

    260,107       18,958,951  

ASM International NV

    19,574       11,954,767  

ASML Holding NV

    208,374       197,747,233  

BE Semiconductor Industries NV

    45,905       8,314,210  

Heineken NV

    98,742       9,122,894  

ING Groep NV

    1,682,199       23,150,154  

Koninklijke Ahold Delhaize NV

    756,865       22,540,841  

Koninklijke KPN NV

    6,810,434       24,895,266  

Prosus NV

    700,127       20,449,309  

Universal Music Group NV

    331,899       10,020,156  

Wolters Kluwer NV

    142,173       22,451,927  
   

 

 

 
      391,375,176  
New Zealand — 0.2%            

EBOS Group Ltd.

    431,694       9,729,924  

Meridian Energy Ltd.

    2,401,081       8,743,066  
   

 

 

 
      18,472,990  
Norway — 1.0%            

DNB Bank ASA

    775,826       15,534,919  

Equinor ASA

    941,907       23,207,432  

Gjensidige Forsikring ASA

    486,188       7,680,911  

Kongsberg Gruppen ASA

    116,748       7,436,003  

Norsk Hydro ASA

    1,347,456       6,916,157  

Orkla ASA

    1,478,241       10,597,206  

Telenor ASA

    938,117       10,263,263  
   

 

 

 
      81,635,891  
Portugal — 0.3%            

Galp Energia SGPS SA

    1,196,606       18,829,402  
   

 

 

 
Singapore — 1.2%            

CapitaLand Investment Ltd/Singapore

    6,849,500       14,169,671  

City Developments Ltd.

    3,865,200       16,291,582  

DBS Group Holdings Ltd.

    305,200       7,567,514  

Grab Holdings Ltd., Class A(a)

    2,186,380       6,712,187  

Keppel Ltd.

    3,787,500       20,424,292  

Oversea-Chinese Banking Corp. Ltd.

    921,000       8,895,858  

United Overseas Bank Ltd.

    638,400       13,284,216  
Security   Shares     Value  
Singapore (continued)            

Wilmar International Ltd.

    2,984,800     $ 7,371,257  
   

 

 

 
      94,716,577  
Spain — 2.5%            

ACS Actividades de Construccion y Servicios SA

    217,238       8,907,960  

Amadeus IT Group SA

    460,536       27,244,778  

Banco Bilbao Vizcaya Argentaria SA

    2,981,235       29,735,673  

Banco Santander SA

    8,700,445       36,258,974  

Cellnex Telecom SA(c)

    249,761       9,029,992  

Corp. ACCIONA Energias Renovables SA

    13,106       270,982  

Endesa SA

    518,659       9,341,107  

Iberdrola SA

    4,020,198       46,172,574  

Industria de Diseno Textil SA

    574,586       25,562,223  

Redeia Corp. SA

    248,322       3,950,889  
   

 

 

 
       196,475,152  
Sweden — 3.0%            

Alfa Laval AB

    206,961       7,792,418  

Assa Abloy AB, Class B

    438,133       12,506,285  

Atlas Copco AB, Class A

    1,536,701       26,695,776  

Boliden AB

    680,423       17,244,910  

Epiroc AB

    571,338       10,371,002  

EQT AB

    286,409       8,390,851  

Essity AB, Class B

    575,837       13,426,251  

Evolution AB(c)

    101,300       13,122,808  

H & M Hennes & Mauritz AB, Class B

    557,993       7,577,010  

Saab AB, Class B

    102,095       8,048,515  

Sandvik AB

    375,618       8,457,894  

Skandinaviska Enskilda Banken AB, Class A

    624,492       9,287,882  

Svenska Cellulosa AB SCA, Class B

    955,908       13,534,014  

Svenska Handelsbanken AB, Class A

    1,418,234       16,961,820  

Swedbank AB, Class A

    412,414       9,070,169  

Tele2 AB, Class B

    1,665,347       13,967,900  

Telia Co. AB

    6,570,953       15,639,707  

Volvo AB, Class B

    913,673       25,174,911  
   

 

 

 
      237,270,123  
Switzerland — 10.2%            

ABB Ltd., Registered

    1,627,806       75,110,742  

Alcon Inc.

    418,646       35,697,030  

Coca-Cola HBC AG, Class DI

    252,426       7,868,946  

DSM-Firmenich AG

    154,880       16,598,245  

Geberit AG, Registered

    14,807       8,608,629  

Givaudan SA, Registered

    6,699       28,108,585  

Holcim AG

    210,421       17,174,467  

Kuehne + Nagel International AG, Registered

    73,902       24,881,764  

Logitech International SA, Registered

    157,480       13,934,835  

Lonza Group AG, Registered

    54,584       28,490,463  

Nestle SA, Registered

    1,011,524       104,912,414  

Novartis AG, Registered

    982,460       99,127,741  

Partners Group Holding AG

    5,476       7,873,750  

Roche Holding AG, NVS

    299,867       78,403,537  

SGS SA

    137,378       13,191,305  

SIG Group AG

    630,136       12,483,465  

Sika AG, Registered

    73,462       21,246,416  

Sonova Holding AG, Registered

    58,142       17,933,729  

STMicroelectronics NV

    534,837       24,285,479  

Straumann Holding AG

    47,777       7,551,663  

Swiss Re AG

    284,077       34,286,548  

Temenos AG, Registered

    108,208       8,143,280  

UBS Group AG, Registered

    1,850,485       52,834,671  

VAT Group AG(c)

    17,315       8,691,264  

Zurich Insurance Group AG

    102,970       54,783,163  
   

 

 

 
      802,222,131  

 

 

16  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® ESG Aware MSCI EAFE ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
United Kingdom — 13.7%            

3i Group PLC

    963,002     $  30,087,125  

Anglo American PLC

    913,206       19,676,806  

Antofagasta PLC

    360,456       8,281,563  

Ashtead Group PLC

    152,644       10,978,882  

AstraZeneca PLC

    714,509       90,066,302  

Aviva PLC

    3,274,050       18,492,414  

BAE Systems PLC

    1,879,737       29,505,578  

Barclays PLC

    8,259,582       17,262,563  

Barratt Developments PLC

    1,232,216       7,270,203  

Berkeley Group Holdings PLC

    197,844       11,623,947  

BP PLC

    4,466,667       25,951,617  

BT Group PLC

    5,612,304       7,408,081  

Bunzl PLC

    199,543       7,953,618  

Burberry Group PLC

    544,925       8,847,830  

Centrica PLC

    4,611,073       7,336,525  

Coca-Cola Europacific Partners PLC

    220,954       15,164,072  

Compass Group PLC

    285,572       7,835,697  

Croda International PLC

    163,305       9,845,167  

DCC PLC

    193,616       13,760,802  

Diageo PLC

    1,578,098       59,123,893  

Entain PLC

    639,744       7,372,918  

GSK PLC

    1,865,185       39,016,759  

HSBC Holdings PLC

    8,682,707       67,584,189  

Informa PLC

    1,467,353       15,044,658  

Intertek Group PLC

    145,413       8,511,635  

J Sainsbury PLC

    3,866,515       12,205,909  

Kingfisher PLC

    4,511,592       13,379,554  

Legal & General Group PLC

    4,307,948       13,208,361  

Lloyds Banking Group PLC

    32,523,741       19,230,433  

London Stock Exchange Group PLC

    132,893       14,925,636  

Mondi PLC, NVS

    492,939       8,764,203  

National Grid PLC

    2,596,882       33,980,206  

NatWest Group PLC, NVS

    3,739,525       11,306,823  

Pearson PLC

    607,004       7,379,093  

Prudential PLC

    927,437       9,137,891  

Reckitt Benckiser Group PLC

    221,118       13,970,865  

RELX PLC

    1,336,707       58,553,235  

Rentokil Initial PLC

    1,421,467       7,913,274  

Rio Tinto PLC

    526,144       33,752,316  

Rolls-Royce Holdings PLC(a)

    3,740,533       17,458,192  

Sage Group PLC (The)

    1,427,731       22,490,469  

Segro PLC

    1,257,161       13,445,953  

Shell PLC

    3,028,942       93,684,604  

SSE PLC

    1,101,170       22,631,675  

St. James’s Place PLC

    903,891       5,755,400  

Standard Chartered PLC

    1,213,102       10,256,733  
Security   Shares     Value  

 

 
United Kingdom (continued)            

Taylor Wimpey PLC

    4,530,354     $ 7,895,250  

Tesco PLC

    3,513,630       12,392,688  

Unilever PLC

    1,317,713       64,349,513  

WPP PLC

    805,750       7,208,646  
   

 

 

 
      1,079,279,766  
   

 

 

 

Total Common Stocks — 99.3%
(Cost: $6,555,960,528)

 

    7,800,349,259  
   

 

 

 

Preferred Stocks

 

 
Germany — 0.2%            

Henkel AG & Co. KGaA, Preference Shares, NVS

    115,288       8,673,553  

Sartorius AG, Preference Shares, NVS

    22,810       8,638,827  
   

 

 

 
      17,312,380  
   

 

 

 

Total Preferred Stocks — 0.2%
(Cost: $17,864,196)

 

    17,312,380  
   

 

 

 

Total Long-Term Investments — 99.5%
(Cost: $6,573,824,724)

 

    7,817,661,639  
   

 

 

 

Short-Term Securities

 

 
Money Market Funds — 0.2%  

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.50%(d)(e)(f)

    15,841,678       15,849,599  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.30%(d)(e)

    420,000       420,000  
   

 

 

 

Total Short-Term Securities — 0.2%
(Cost: $16,271,574)

 

    16,269,599  
   

 

 

 

Total Investments — 99.7%
(Cost: $6,590,096,298)

 

    7,833,931,238  

Other Assets Less Liabilities — 0.3%

 

    24,014,734  
   

 

 

 

Net Assets — 100.0%

 

  $  7,857,945,972  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 

 

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

  17


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® ESG Aware MSCI EAFE ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 29, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
08/31/23
   

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

02/29/24

   

Shares

Held at

02/29/24

    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 6,361,879     $  9,487,829 (a)    $     $ 1,988     $ (2,097   $ 15,849,599       15,841,678     $ 16,734 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     1,330,000             (910,000 )(a)                  420,000       420,000       97,635        
        

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
         $ 1,988     $ (2,097   $ 16,269,599       $  114,369     $  
        

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description    Number of
Contracts
    Expiration
Date
    Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 

 

 

Long Contracts

        

TOPIX Index

     60       03/07/24     $ 10,745     $ 829,684  

Euro STOXX 50 Index

     295       03/15/24       15,641       776,068  

FTSE 100 Index

     89       03/15/24       8,580       27,490  

SPI 200 Index

     38       03/21/24       4,741       102,371  
        

 

 

 
         $ 1,735,613  
        

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
    

Commodity

Contracts

    Credit
Contracts
   

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

   

Interest

Rate

Contracts

    Other
Contracts
    Total  

 

 

Assets — Derivative Financial Instruments

              

Futures contracts

              

Unrealized appreciation on futures contracts(a)

   $     $     $ 1,735,613     $     $     $     $ 1,735,613  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended February 29, 2024, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Commodity

Contracts

   

Credit

Contracts

   

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

   

Interest

Rate

Contracts

   

Other

Contracts

    Total  

 

 

Net Realized Gain (Loss) from

              

Futures contracts

   $     $     $ 2,021,611     $     $     $     $ 2,021,611  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

              

Futures contracts

   $     $     $ 1,565,951     $     $     $     $ 1,565,951  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

18  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® ESG Aware MSCI EAFE ETF

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 42,369,448   

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 55,877,189        $ 7,744,472,070        $        $ 7,800,349,259  

Preferred Stocks

              17,312,380                   17,312,380  

Short-Term Securities

                 

Money Market Funds

     16,269,599                            16,269,599  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $  72,146,788        $ 7,761,784,450        $     —        $ 7,833,931,238  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $        $ 1,735,613        $        $ 1,735,613  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. 

 

See notes to financial statements.

 

 

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

  19


Schedule of Investments (unaudited) 

February 29, 2024

  

iShares® ESG MSCI EM Leaders ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Brazil — 3.1%            

Atacadao SA

    6,670     $ 16,222  

Banco Santander Brasil SA

    3,822       21,989  

CCR SA

    10,084       27,953  

Cia. de Saneamento Basico do Estado de Sao Paulo

    3,359       53,489  

Cia. Siderurgica Nacional SA

    6,881       23,282  

Cosan SA

    11,741       40,151  

Energisa SA

    2,130       21,784  

Equatorial Energia SA

    10,042       69,046  

Hapvida Participacoes e Investimentos SA(a)(b)

    49,207       36,328  

Klabin SA

    7,571       34,374  

Localiza Rent a Car SA

    8,809       93,918  

Localiza Rent a Car SA, NVS(b)

    44       448  

Lojas Renner SA

    9,672       30,741  

Magazine Luiza SA(b)

    31,377       13,444  

Magazine Luiza SA, NVS

    3,005       1,288  

Natura & Co. Holding SA(b)

    9,010       29,561  

PRIO SA

    8,086       71,099  

Raia Drogasil SA

    12,546       67,234  

Rede D’Or Sao Luiz SA(a)

    5,744       29,257  

Rumo SA

    13,110       59,918  

Telefonica Brasil SA

    4,237       46,435  

TIM SA/Brazil

    8,519       31,138  

TOTVS SA

    5,327       32,887  

Ultrapar Participacoes SA

    7,053       41,656  

WEG SA

    16,652       122,903  
   

 

 

 
       1,016,545  
Chile — 0.3%            

Cencosud SA

    12,687       22,785  

Empresas CMPC SA

    11,177       19,842  

Empresas Copec SA

    3,891       24,972  

Enel Americas SA

    222,123       22,648  

Falabella SA(b)

    8,732       22,147  
   

 

 

 
      112,394  
China — 27.4%            

37 Interactive Entertainment Network Technology Group Co. Ltd., Class A

    1,500       4,040  

AAC Technologies Holdings Inc.

    7,500       18,646  

Agricultural Bank of China Ltd., Class A

    50,800       29,509  

Agricultural Bank of China Ltd., Class H

    269,000       110,356  

Aier Eye Hospital Group Co. Ltd., Class A

    5,200       10,571  

Air China Ltd., Class A(b)

    7,200       7,457  

Air China Ltd., Class H(b)

    18,000       9,639  

Alibaba Group Holding Ltd.

    161,216       1,482,168  

Alibaba Health Information Technology Ltd.(b)

    54,000       23,596  

Angel Yeast Co. Ltd., Class A

    500       2,331  

Anhui Conch Cement Co. Ltd., Class A

    2,200       7,303  

Anhui Conch Cement Co. Ltd., Class H

    11,000       23,936  

Anjoy Foods Group Co. Ltd., Class A

    200       2,418  

Asymchem Laboratories Tianjin Co. Ltd., Class A

    200       2,820  

Baidu Inc.(b)

    22,350       282,803  

Beijing Enterprises Water Group Ltd.

    42,000       9,852  

Beijing Tongrentang Co. Ltd., Class A

    800       4,941  

BOC Aviation Ltd.(a)

    2,300       16,931  

Bosideng International Holdings Ltd.

    38,000       19,113  

BYD Co. Ltd., Class A

    1,000       26,413  

BYD Co. Ltd., Class H

    10,500       258,616  

By-health Co. Ltd., Class A

    900       2,108  

CECEP Solar Energy Co. Ltd., Class A

    2,300       1,733  

China Baoan Group Co. Ltd., Class A

    1,400       2,310  

China Construction Bank Corp., Class H

    952,000       590,389  
Security   Shares     Value  
China (continued)            

China Eastern Airlines Corp. Ltd., Class A(b)

    11,000     $ 5,807  

China Feihe Ltd.(a)

    37,000        18,403  

China Jushi Co. Ltd., Class A

    1,978       2,746  

China Literature Ltd.(a)(b)

    4,200       12,876  

China Medical System Holdings Ltd.

    13,000       21,370  

China Mengniu Dairy Co. Ltd.

    31,000       77,511  

China Merchants Bank Co. Ltd., Class A

    12,300       54,469  

China Merchants Bank Co. Ltd., Class H

    38,500       148,880  

China Merchants Port Holdings Co. Ltd.

    12,000       14,882  

China National Medicines Corp. Ltd., Class A

    400       1,748  

China Overseas Land & Investment Ltd.

    37,500       55,381  

China Resources Gas Group Ltd.

    9,400       28,367  

China Resources Land Ltd.

    32,000       97,739  

China Resources Pharmaceutical Group Ltd.(a)

    15,500       10,483  

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A

    600       4,578  

China Ruyi Holdings Ltd.(b)(c)

    52,000       10,207  

China Southern Airlines Co. Ltd., Class A(b)

    7,500       6,150  

China Three Gorges Renewables Group Co. Ltd., Class A

    17,000       10,892  

China Tourism Group Duty Free Corp. Ltd.(a)(c)

    1,100       10,772  

China Tourism Group Duty Free Corp. Ltd., Class A

    1,200       14,450  

China Vanke Co. Ltd., Class A

    5,400       7,502  

China Vanke Co. Ltd., Class H

    23,600       18,195  

China Yangtze Power Co. Ltd., Class A

    14,600       50,751  

Chongqing Zhifei Biological Products Co. Ltd., Class A

    1,400       10,392  

Chow Tai Fook Jewellery Group Ltd.(c)

    19,000       28,311  

CITIC Ltd.

    58,000       58,346  

CMOC Group Ltd., Class A

    10,500       8,937  

CMOC Group Ltd., Class H

    36,000       22,209  

CNGR Advanced Material Co. Ltd.

    400       2,631  

Contemporary Amperex Technology Co. Ltd., Class A

    2,640       59,710  

Country Garden Services Holdings Co. Ltd.

    22,000       16,746  

CSPC Innovation Pharmaceutical Co. Ltd.

    700       3,325  

CSPC Pharmaceutical Group Ltd.

    89,360       69,598  

East Buy Holding Ltd.(a)(b)(c)

    4,500       13,871  

Ecovacs Robotics Co. Ltd., Class A

    300       1,551  

ENN Energy Holdings Ltd.

    7,800       63,335  

ENN Natural Gas Co. Ltd., Class A

    1,550       4,025  

Far East Horizon Ltd.

    20,000       16,067  

Fosun International Ltd.

    25,000       14,423  

Ganfeng Lithium Group Co. Ltd., Class A

    820       4,547  

Ganfeng Lithium Group Co. Ltd., Class H(a)

    4,240       14,046  

Geely Automobile Holdings Ltd.

    61,000       66,385  

GEM Co. Ltd., Class A

    3,600       2,675  

Genscript Biotech Corp.(b)(c)

    12,000       24,260  

Goldwind Science & Technology Co Ltd., Class A

    2,400       2,543  

GoodWe Technologies Co. Ltd., NVS

    93       1,398  

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A

    700       2,875  

Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A

    200       1,668  

Haier Smart Home Co. Ltd., Class A

    3,800       12,657  

Haier Smart Home Co. Ltd., Class H

    23,800       72,082  

Haitian International Holdings Ltd.

    6,000       15,192  

Hangzhou Robam Appliances Co. Ltd., Class A

    400       1,384  

Hangzhou Tigermed Consulting Co. Ltd., Class A

    200       1,249  

Hansoh Pharmaceutical Group Co. Ltd.(a)

    12,000       21,151  

Henan Shuanghui Investment & Development Co. Ltd., Class A

    2,100       8,501  

Hoymiles Power Electronics Inc., NVS

    45       1,452  

Huadong Medicine Co. Ltd., Class A

    1,200       5,588  

Huatai Securities Co. Ltd., Class A

    4,600       9,263  

Huatai Securities Co. Ltd., Class H(a)

    12,800       15,108  

 

 

20  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® ESG MSCI EM Leaders ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
China (continued)            

Hygeia Healthcare Holdings Co. Ltd.(a)

    3,200     $ 12,037  

Imeik Technology Development Co. Ltd., Class A

    100       4,538  

Industrial & Commercial Bank of China Ltd., Class A

    37,300       27,564  

Industrial & Commercial Bank of China Ltd., Class H

    645,000       330,635  

Inner Mongolia Yili Industrial Group Co. Ltd., Class A

    3,800       14,919  

Innovent Biologics Inc.(a)(b)

    11,500       62,204  

JD Logistics Inc.(a)(b)

    18,000       17,773  

JD.com Inc.

    23,100       260,704  

Jiangsu Eastern Shenghong Co. Ltd., Class A

    3,600       5,240  

Jiangsu Expressway Co. Ltd., Class H

    12,000       12,326  

Jiangsu Hengrui Pharmaceuticals Co. Ltd., Class A

    3,700       21,836  

Jiangsu Zhongtian Technology Co. Ltd., Class A

    1,700       3,083  

Joincare Pharmaceutical Group Industry Co. Ltd., Class A

    600       1,003  

Juneyao Airlines Co. Ltd., Class A(b)

    1,400       2,590  

Kanzhun Ltd., ADR

    2,261       35,385  

Kingdee International Software Group Co. Ltd.(b)

    28,000       30,108  

Kuaishou Technology(a)(b)

    23,200       131,008  

Kuang-Chi Technologies Co. Ltd., Class A(b)

    1,800       3,704  

Kunlun Energy Co. Ltd.

    38,000       32,396  

Lenovo Group Ltd.

    80,000       88,378  

Lepu Medical Technology Beijing Co. Ltd., Class A

    1,100       2,303  

Li Auto Inc.(b)

    11,404       260,262  

Longfor Group Holdings Ltd.(a)

    18,500       23,171  

Meinian Onehealth Healthcare Holdings Co. Ltd., Class A(b)

    1,800       1,394  

Ming Yang Smart Energy Group Ltd., Class A

    1,600       2,264  

MINISO Group Holding Ltd.

    3,768       17,318  

NetEase Inc.

    19,200       417,073  

NIO Inc., ADR(b)(c)

    13,316       76,567  

Nongfu Spring Co. Ltd., Class H(a)

    19,800       111,965  

Offshore Oil Engineering Co. Ltd., Class A

    2,800       2,401  

Orient Overseas International Ltd.

    1,500       23,316  

Perfect World Co. Ltd., Class A

    1,000       1,621  

Pharmaron Beijing Co. Ltd., Class A

    850       2,747  

Pop Mart International Group Ltd.(a)

    4,800       11,966  

Postal Savings Bank of China Co. Ltd., Class A

    16,057       10,785  

Postal Savings Bank of China Co. Ltd., Class H(a)

    80,000       42,030  

Sany Heavy Equipment International Holdings Co. Ltd.

    10,000       7,766  

SF Holding Co. Ltd., Class A

    3,000       15,909  

Shandong Nanshan Aluminum Co. Ltd., Class A

    6,100       2,623  

Shandong Weigao Group Medical Polymer Co. Ltd., Class H

    24,800       16,123  

Shanghai Electric Group Co. Ltd., Class A(b)

    7,800       4,585  

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A

    1,000       3,406  

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H

    6,000       10,811  

Shanghai M&G Stationery Inc., Class A

    800       3,950  

Shanghai Pharmaceuticals Holding Co. Ltd., Class A

    1,700       4,271  

Shanghai Pharmaceuticals Holding Co. Ltd., Class H

    7,000       11,257  

Shanghai Putailai New Energy Technology Co. Ltd., Class A

    1,595       4,151  

Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A

    2,000       1,832  

Shenzhen Inovance Technology Co. Ltd., Class A

    850       7,443  

Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A

    700        27,989  

Shenzhen New Industries Biomedical Engineering Co. Ltd., Class A

    500       5,619  

Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A

    900       2,680  

Sichuan Kelun Pharmaceutical Co. Ltd., Class A

    700       2,666  

Sino Biopharmaceutical Ltd.

    105,000       41,733  

Sinoma Science & Technology Co. Ltd., Class A

    1,000       2,170  

Sinopharm Group Co. Ltd., Class H

    13,600       38,059  

Sinotruk Hong Kong Ltd.

    6,500       17,185  

Skshu Paint Co. Ltd., Class A(b)

    420       2,247  
Security   Shares     Value  
China (continued)            

Sungrow Power Supply Co. Ltd., Class A

    900     $ 10,866  

Sunwoda Electronic Co. Ltd., Class A

    1,200       2,363  

TCL Technology Group Corp., Class A(b)

    11,300       7,090  

Tencent Holdings Ltd.

    44,700       1,565,869  

Tianqi Lithium Corp., Class A

    900       6,681  

Tongcheng Travel Holdings Ltd.(b)

    12,400       31,173  

Topchoice Medical Corp., Class A(b)

    300       2,729  

Vinda International Holdings Ltd.

    3,000       8,885  

Vipshop Holdings Ltd., ADR(b)

    3,422       65,874  

Want Want China Holdings Ltd.

    49,000       27,036  

Weichai Power Co. Ltd., Class A

    3,700       8,669  

Weichai Power Co. Ltd., Class H

    20,000       39,367  

Western Mining Co. Ltd., Class A

    1,500       3,458  

WuXi AppTec Co. Ltd., Class A

    1,392       10,491  

WuXi AppTec Co. Ltd., Class H(a)(c)

    3,460       21,329  

Wuxi Biologics Cayman Inc.(a)(b)

    38,500       91,191  

XPeng Inc.(b)

    11,400       53,355  

Yadea Group Holdings Ltd.(a)

    12,000       18,853  

Yihai Kerry Arawana Holdings Co. Ltd., Class A

    1,100       4,923  

Yum China Holdings Inc.

    4,014       172,160  

Yunnan Baiyao Group Co. Ltd., Class A

    1,140       7,870  

Yunnan Chihong Zinc&Germanium Co. Ltd.

    3,300       2,355  

Yunnan Energy New Material Co. Ltd., Class A

    700       4,453  

Zai Lab Ltd.(b)

    9,300       19,848  

Zangge Mining Co. Ltd.

    1,000       4,060  

Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A

    400       12,361  

Zhejiang Chint Electrics Co. Ltd., Class A

    1,500       4,277  

Zhejiang Expressway Co. Ltd., Class H

    14,840       11,317  

Zhejiang Huahai Pharmaceutical Co. Ltd., Class A

    800       1,546  

Zhejiang Weixing New Building Materials Co. Ltd., Class A

    900       1,962  

Zoomlion Heavy Industry Science and Technology Co. Ltd., Class A

    4,900       5,436  

ZTO Express Cayman Inc., ADR

    4,118       79,024  
   

 

 

 
       8,957,619  
Colombia — 0.1%            

Bancolombia SA

    2,541       21,325  

Interconexion Electrica SA ESP

    4,573       19,480  
   

 

 

 
      40,805  
Czech Republic — 0.1%            

Komercni Banka AS

    755       26,276  

Moneta Money Bank AS(a)

    3,180       13,959  
   

 

 

 
      40,235  
Egypt — 0.2%            

Commercial International Bank - Egypt (CIB)

    36,001       51,393  
   

 

 

 
Greece — 0.5%            

Alpha Services and Holdings SA(b)

    21,931       41,312  

Eurobank Ergasias Services and Holdings SA, Class A(b)

    25,737       53,171  

Hellenic Telecommunications Organization SA

    1,827       27,566  

Motor Oil Hellas Corinth Refineries SA

    659       18,828  

Mytilineos SA

    980       38,131  
   

 

 

 
      179,008  
Hungary — 0.5%            

MOL Hungarian Oil & Gas PLC

    4,487       35,701  

OTP Bank Nyrt

    2,189       104,952  

Richter Gedeon Nyrt

    1,355       36,073  
   

 

 

 
      176,726  
India — 18.7%            

ABB India Ltd.

    528       34,612  

Adani Green Energy Ltd.(b)

    3,133       71,605  

Ashok Leyland Ltd.

    14,551       29,804  

 

 

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

  21


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® ESG MSCI EM Leaders ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
India (continued)            

Asian Paints Ltd.

    3,787     $ 129,169  

Astral Ltd.

    1,310       32,690  

AU Small Finance Bank Ltd.(a)

    1,640       11,242  

Axis Bank Ltd.

    22,591       292,441  

Bajaj Finance Ltd.

    2,755       214,938  

Berger Paints India Ltd.

    2,845       20,817  

Bharti Airtel Ltd.

    22,348       302,570  

Britannia Industries Ltd.

    1,069       64,064  

Cipla Ltd.

    5,143       91,821  

Colgate-Palmolive India Ltd.

    1,366       41,542  

Cummins India Ltd.

    1,382       45,662  

Dabur India Ltd.

    6,267       40,697  

DLF Ltd.

    7,239       78,642  

Eicher Motors Ltd.

    1,356       61,965  

GAIL India Ltd.

    22,925       50,306  

GMR Airports Infrastructure Ltd.(b)

    23,352       23,657  

Grasim Industries Ltd.

    2,588       68,310  

Havells India Ltd.

    2,446       45,130  

HCL Technologies Ltd.

    9,417       188,718  

Hero MotoCorp Ltd.

    1,179       62,833  

Hindalco Industries Ltd.

    12,950       78,554  

Hindustan Unilever Ltd.

    8,135       236,686  

ICICI Prudential Life Insurance Co. Ltd.(a)

    3,619       23,259  

Indian Hotels Co. Ltd., Class A

    8,614       60,970  

Indraprastha Gas Ltd.

    3,312       16,998  

Info Edge India Ltd.

    702       44,533  

Infosys Ltd.

    32,903       662,156  

InterGlobe Aviation Ltd.(a)(b)

    1,485       56,511  

Kotak Mahindra Bank Ltd.

    10,774       219,197  

Lupin Ltd.

    2,180       42,643  

Mahindra & Mahindra Ltd.

    9,281       216,106  

Marico Ltd.

    5,069       31,937  

Max Healthcare Institute Ltd.

    7,634       73,043  

Nestle India Ltd., NVS

    3,335       104,444  

PI Industries Ltd.

    824       36,499  

Pidilite Industries Ltd.

    1,536       50,715  

Power Grid Corp. of India Ltd.

    46,152       157,677  

Reliance Industries Ltd.

    30,147       1,061,031  

Shree Cement Ltd.

    88       27,007  

Shriram Finance Ltd.

    2,797       82,162  

Siemens Ltd.

    900       50,743  

Supreme Industries Ltd.

    646       32,308  

Suzlon Energy Ltd.(b)

    30,763       16,788  

Tata Consultancy Services Ltd.

    8,976       442,796  

Torrent Pharmaceuticals Ltd.

    1,007       32,444  

TVS Motor Co. Ltd.

    2,377       61,253  

UPL Ltd.

    4,535       25,683  

Vedanta Ltd.

    9,211       29,680  

Zomato Ltd.(b)

    60,116       119,655  
   

 

 

 
       6,096,713  
Indonesia — 2.5%            

Aneka Tambang Tbk

    87,000       8,080  

Bank Central Asia Tbk PT

    548,300       345,027  

Bank Rakyat Indonesia Persero Tbk PT

    674,000       262,647  

Barito Pacific Tbk PT

    288,584       17,938  

Kalbe Farma Tbk PT

    218,700       20,704  

Merdeka Copper Gold Tbk PT(b)

    99,857       14,362  

Sarana Menara Nusantara Tbk PT

    210,000       12,314  

Telkom Indonesia Persero Tbk PT

    489,600       124,804  

Unilever Indonesia Tbk PT

    71,900       12,490  
   

 

 

 
      818,366  
Security   Shares     Value  
Kazakhstan — 0.0%            

Polymetal International PLC(b)(d)

    7,120     $ 1  
   

 

 

 
Kuwait — 0.7%            

Kuwait Finance House KSCP

    84,709       223,180  
   

 

 

 
Malaysia — 2.4%            

AMMB Holdings Bhd

    17,700       16,202  

Axiata Group Bhd

    28,600       16,765  

CELCOMDIGI Bhd

    35,000       32,139  

CIMB Group Holdings Bhd

    63,000       85,792  

Gamuda Bhd

    19,300       21,514  

IHH Healthcare Bhd

    21,800       28,252  

Kuala Lumpur Kepong Bhd

    4,900       23,155  

Malayan Banking Bhd

    53,100       106,684  

Malaysia Airports Holdings Bhd

    9,163       16,374  

Maxis Bhd(c)

    24,500       19,206  

MISC Bhd

    12,300       19,720  

MR DIY Group M Bhd(a)

    34,600       11,372  

Nestle Malaysia Bhd

    700       18,424  

Petronas Chemicals Group Bhd

    27,000       39,851  

Petronas Dagangan Bhd

    3,100       14,920  

Petronas Gas Bhd

    7,400       27,975  

PPB Group Bhd

    6,000       19,699  

Press Metal Aluminium Holdings Bhd

    37,500       37,010  

Public Bank Bhd

    141,700       131,516  

QL Resources Bhd

    9,700       11,871  

RHB Bank Bhd

    13,500       15,944  

Sime Darby Bhd

    28,700       16,399  

Telekom Malaysia Bhd

    12,000       15,307  

YTL Corp. Bhd

    29,700       16,710  

YTL Power International Bhd

    23,600       19,644  
   

 

 

 
      782,445  
Mexico — 3.4%            

America Movil SAB de CV

    185,331       173,541  

Arca Continental SAB de CV

    5,077       54,692  

Cemex SAB de CV, NVS(b)

    150,194       114,820  

Fibra Uno Administracion SA de CV

    28,545       51,583  

Fomento Economico Mexicano SAB de CV

    19,303       241,035  

Gruma SAB de CV, Class B

    1,870       33,302  

Grupo Aeroportuario del Sureste SAB de CV, Class B

    1,791       52,549  

Grupo Bimbo SAB de CV, Series A

    12,958       54,206  

Grupo Financiero Banorte SAB de CV, Class O

    25,807       266,818  

Industrias Penoles SAB de CV(b)(c)

    2,025       25,375  

Orbia Advance Corp. SAB de CV

    10,500       19,418  

Prologis Property Mexico SA de CV

    7,079       31,819  
   

 

 

 
       1,119,158  
Netherlands — 0.1%            

NEPI Rockcastle NV

    5,327       38,008  
   

 

 

 
Peru — 0.4%            

Credicorp Ltd.

    668       114,148  
   

 

 

 
Philippines — 0.6%            

Ayala Corp.

    2,570       31,016  

JG Summit Holdings Inc.

    27,728       20,223  

PLDT Inc.

    750       17,500  

SM Investments Corp.

    2,490       41,666  

SM Prime Holdings Inc.

    102,500       57,618  

Universal Robina Corp.

    8,730       18,174  
   

 

 

 
      186,197  
Poland — 1.4%            

Allegro.eu SA (a)(b)

    5,311       42,920  

CD Projekt SA

    631       17,342  

 

 

22  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® ESG MSCI EM Leaders ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Poland (continued)            

KGHM Polska Miedz SA

    1,418     $ 38,325  

mBank SA(b)

    151       26,312  

ORLEN SA

    5,696       88,478  

Powszechna Kasa Oszczednosci Bank Polski SA

    8,636       120,346  

Powszechny Zaklad Ubezpieczen SA

    5,837       71,826  

Santander Bank Polska SA

    355       48,957  
   

 

 

 
      454,506  
Qatar — 0.7%            

Qatar Fuel QSC

    5,754       23,594  

Qatar Gas Transport Co. Ltd.

    25,406       27,854  

Qatar National Bank QPSC

    45,452       189,835  
   

 

 

 
      241,283  
Russia — 0.0%            

Gazprom PJSC(b)(d)

    244,340       27  

LUKOIL PJSC(b)(d)

    8,544       1  

Mobile TeleSystems PJSC(b)(d)

    18,946       2  

Moscow Exchange MICEX-RTS PJSC(b)(d)

    30,360       3  

Novatek PJSC(b)(d)

    18,630       2  

Novolipetsk Steel PJSC(b)(d)

    31,136       4  

PhosAgro PJSC(b)(d)

    910        

PhosAgro PJSC, New(b)(d)

    18        

Polyus PJSC(b)(d)

    698        
   

 

 

 
      39  
Saudi Arabia — 2.6%            

ACWA Power Co.

    941       66,251  

Alinma Bank

    9,656       113,335  

Bank AlBilad

    4,783       63,127  

Dr Sulaiman Al Habib Medical Services Group Co.

    867       76,348  

Sahara International Petrochemical Co.

    3,664       29,940  

Saudi Arabian Oil Co.(a)

    26,210       221,602  

Saudi Basic Industries Corp.

    8,879       186,539  

Saudi Electricity Co.

    8,323       44,429  

Savola Group (The)

    2,625       37,097  
   

 

 

 
      838,668  
South Africa — 5.0%            

Absa Group Ltd.

    8,430       71,965  

Anglo American Platinum Ltd.

    671       25,813  

Aspen Pharmacare Holdings Ltd.

    3,788       38,708  

Bid Corp. Ltd.

    3,312       77,481  

Bidvest Group Ltd. (The)

    2,872       34,988  

Capitec Bank Holdings Ltd.

    861       90,713  

Clicks Group Ltd.

    2,335       36,533  

Discovery Ltd.

    5,188       36,794  

FirstRand Ltd.

    50,094       169,473  

Gold Fields Ltd.

    8,821       116,203  

Impala Platinum Holdings Ltd.

    8,928       30,298  

Kumba Iron Ore Ltd.

    657       18,393  

MTN Group Ltd.

    16,694       72,677  

Naspers Ltd., Class N

    1,817       298,899  

Nedbank Group Ltd.

    4,443       50,829  

Northam Platinum Holdings Ltd.

    3,710       21,216  

Old Mutual Ltd.

    44,778       27,869  

Sanlam Ltd.

    17,139       65,723  

Sasol Ltd.

    5,814       43,816  

Shoprite Holdings Ltd.

    4,959       66,763  

Sibanye Stillwater Ltd.

    28,463       29,337  

Standard Bank Group Ltd.

    13,246       139,380  

Vodacom Group Ltd.

    6,242       30,598  

Woolworths Holdings Ltd./South Africa

    9,322       31,188  
   

 

 

 
       1,625,657  
Security   Shares     Value  
South Korea — 7.1%            

Amorepacific Corp.

    296     $ 26,616  

CJ CheilJedang Corp.

    83       18,705  

Coway Co. Ltd.

    555       22,590  

Doosan Bobcat Inc.

    535       18,889  

Doosan Enerbility Co. Ltd.(b)(c)

    4,405       53,765  

Hana Financial Group Inc.

    2,901       123,431  

Hanon Systems

    1,827       8,466  

Hanwha Solutions Corp.

    1,095       22,865  

HD Hyundai Co. Ltd.

    423       22,486  

HMM Co. Ltd.(b)

    2,342       32,132  

Hyundai Engineering & Construction Co. Ltd.(b)

    757       19,746  

Hyundai Glovis Co. Ltd.(b)

    186       26,629  

Kakao Corp.

    3,071       123,264  

KB Financial Group Inc.

    3,802       181,333  

Korea Zinc Co. Ltd.

    81       27,233  

Korean Air Lines Co. Ltd.

    1,859       32,117  

Kumho Petrochemical Co. Ltd.(b)

    152       16,881  

LG Chem Ltd.

    489       167,021  

LG Corp.

    940       66,166  

LG Display Co. Ltd.(b)

    2,400       20,483  

LG Electronics Inc.

    1,048       74,919  

LG Energy Solution Ltd.(b)

    458       138,095  

LG H&H Co. Ltd.

    91       21,857  

LG Uplus Corp.

    2,213       17,164  

Lotte Chemical Corp.

    199       18,298  

Mirae Asset Securities Co. Ltd.(b)

    2,432       16,504  

NAVER Corp.

    1,283       188,384  

NCSoft Corp.

    145       21,148  

Netmarble Corp.(a)(b)

    240       11,144  

POSCO Future M Co. Ltd.(b)

    310       74,098  

Samsung Engineering Co. Ltd.(b)

    1,561       28,871  

Samsung SDI Co. Ltd.

    544       154,546  

Samsung SDS Co. Ltd.

    376       45,229  

Samsung Securities Co. Ltd.

    620       19,377  

Shinhan Financial Group Co. Ltd.

    4,325       141,382  

SK Biopharmaceuticals Co. Ltd.(b)

    312       22,738  

SK Bioscience Co. Ltd.(b)

    258       11,923  

SK IE Technology Co. Ltd.(a)(b)

    269       14,837  

SK Inc.

    368       53,082  

SK Innovation Co. Ltd.(b)

    591       52,143  

SK Square Co. Ltd.(b)

    974       51,108  

SKC Co. Ltd.(b)

    190       11,838  

Woori Financial Group Inc.

    5,933       66,478  

Yuhan Corp.

    568       28,810  
   

 

 

 
       2,314,791  
Taiwan — 14.4%            

Acer Inc.

    29,000       41,475  

Airtac International Group

    1,000       38,313  

AUO Corp.

    65,600       36,383  

Cathay Financial Holding Co. Ltd.

    94,650       135,050  

China Airlines Ltd.

    30,000       18,999  

China Steel Corp.

    117,000       91,119  

Chunghwa Telecom Co. Ltd.

    39,000       148,577  

CTBC Financial Holding Co. Ltd.

    174,000       161,979  

Delta Electronics Inc.

    19,000       177,054  

E.Sun Financial Holding Co. Ltd.

    138,174       110,465  

Eva Airways Corp.

    27,000       26,879  

Evergreen Marine Corp. Taiwan Ltd.

    9,800       51,339  

Far Eastern New Century Corp.

    30,000       30,944  

Far EasTone Telecommunications Co. Ltd.

    18,000       44,845  

First Financial Holding Co. Ltd.

    106,456       91,305  

Fubon Financial Holding Co. Ltd.

    78,089       168,120  

 

 

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

  23


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® ESG MSCI EM Leaders ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
Taiwan (continued)            

Hotai Motor Co. Ltd.

    3,100     $ 65,836  

Hua Nan Financial Holdings Co. Ltd.

    86,650       60,344  

Lite-On Technology Corp.

    20,000       69,393  

MediaTek Inc.

    15,000       541,295  

Mega Financial Holding Co. Ltd.

    113,211       138,699  

Nan Ya Plastics Corp.

    47,000       88,879  

PharmaEssentia Corp.(b)

    2,000       20,785  

President Chain Store Corp.

    6,000       51,156  

SinoPac Financial Holdings Co. Ltd.

    102,820       65,427  

Taishin Financial Holding Co. Ltd.

    108,477       59,733  

Taiwan Cooperative Financial Holding Co. Ltd.

    100,724       82,759  

Taiwan High Speed Rail Corp.

    21,000       20,068  

Taiwan Mobile Co. Ltd.

    18,000       56,409  

Taiwan Semiconductor Manufacturing Co. Ltd.

    75,000       1,643,589  

Uni-President Enterprises Corp.

    48,000       116,555  

United Microelectronics Corp.

    113,000       174,227  

Voltronic Power Technology Corp.

    1,000       50,821  

Wan Hai Lines Ltd.

    7,260       11,565  

Yang Ming Marine Transport Corp.

    17,000       26,821  
   

 

 

 
       4,717,207  
Thailand — 2.4%            

Advanced Info Service PCL, NVDR

    11,700       65,641  

Airports of Thailand PCL, NVDR

    42,400       75,139  

Asset World Corp. PCL, NVDR

    82,700       8,885  

Bangkok Dusit Medical Services PCL, NVDR

    111,800       88,821  

Bangkok Expressway & Metro PCL, NVDR

    73,300       16,477  

Berli Jucker PCL, NVDR

    500       338  

BTS Group Holdings PCL, NVDR

    80,500       11,569  

Bumrungrad Hospital PCL, NVDR

    5,800       36,188  

Central Retail Corp. PCL, NVDR

    18,300       17,763  

Charoen Pokphand Foods PCL, NVDR(c)

    39,200       20,654  

CP ALL PCL, NVDR

    57,100       91,558  

Delta Electronics Thailand PCL, NVDR

    30,800       61,314  

Energy Absolute PCL, NVDR

    17,200       16,929  

Home Product Center PCL, NVDR

    60,300       18,833  

Indorama Ventures PCL, NVDR

    17,800       11,568  

Intouch Holdings PCL, NVDR

    9,500       17,952  

Kasikornbank PCL, NVDR

    5,900       20,246  

Minor International PCL, NVDR

    34,300       30,372  

Muangthai Capital PCL, NVDR

    7,700       9,854  

PTT Exploration & Production PCL, NVDR

    13,600       57,111  

PTT Global Chemical PCL, NVDR

    22,600       23,920  

PTT Oil & Retail Business PCL, NVDR

    28,600       14,428  

SCG Packaging PCL, NVDR

    12,600       9,839  

Siam Cement PCL (The), NVDR

    7,500       56,254  
   

 

 

 
      781,653  
Turkey — 0.6%            

Haci Omer Sabanci Holding AS

    9,764       24,854  

KOC Holding AS

    7,616       41,017  

Turk Hava Yollari AO(b)

    5,562       50,177  

Turkiye Is Bankasi AS, Class C

    86,626       30,719  

Turkiye Sise ve Cam Fabrikalari AS

    13,754       22,514  

Yapi ve Kredi Bankasi AS

    32,877       24,263  
   

 

 

 
      193,544  
United Arab Emirates — 2.3%            

Abu Dhabi Commercial Bank PJSC

    28,304       66,041  

Abu Dhabi Islamic Bank PJSC

    14,107       43,170  

Aldar Properties PJSC

    37,843       56,977  

Emaar Properties PJSC

    65,579       144,979  

Emirates NBD Bank PJSC

    18,525       92,299  
Security   Shares     Value  

 

 
United Arab Emirates (continued)            

Emirates Telecommunications Group Co. PJSC

    34,405     $ 169,545  

First Abu Dhabi Bank PJSC

    43,577       161,887  
   

 

 

 
      734,898  
   

 

 

 

Total Common Stocks — 97.5%
(Cost: $32,456,466)

      31,855,187  
   

 

 

 

Preferred Stocks

   
Brazil — 1.7%            

Banco Bradesco SA, Preference Shares, NVS

    52,094       144,091  

Cia. Energetica de Minas Gerais, Preference Shares, NVS

    13,963       33,622  

Gerdau SA, Preference Shares, NVS

    11,676       50,498  

Itau Unibanco Holding SA, Preference Shares, NVS

    48,031       327,930  
   

 

 

 
      556,141  
Chile — 0.2%            

Sociedad Quimica y Minera de Chile SA, Class B, Preference Shares

    1,402       69,529  
   

 

 

 
Colombia — 0.1%            

Bancolombia SA, Preference Shares, NVS

    4,519       36,935  
   

 

 

 
South Korea — 0.1%            

LG Chem Ltd., Preference Shares, NVS

    76       17,182  
   

 

 

 

Total Preferred Stocks — 2.1%
(Cost: $560,274)

      679,787  
   

 

 

 

Rights

   
South Korea — 0.0%            

LG Display Co. Ltd., (Expires 03/14/24, Strike Price KRW 10070)(b)

    762       750  
   

 

 

 

Total Rights — 0.0%
(Cost: $—)

      750  
   

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $33,016,740)

      32,535,724  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.8%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.50%(e)(f)(g)

    266,348       266,481  
   

 

 

 

Total Short-Term Securities — 0.8%
(Cost: $266,431)

      266,481  
   

 

 

 

Total Investments — 100.4%
(Cost: $33,283,171)

      32,802,205  

Liabilities in Excess of Other Assets — (0.4)%

      (145,590
   

 

 

 

Net Assets — 100.0%

    $  32,656,615  
   

 

 

 

 

(a) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(b) 

Non-income producing security.

(c) 

All or a portion of this security is on loan.

(d) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

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

 

 

24  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® ESG MSCI EM Leaders ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 29, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   

Value at

08/31/23

    

Purchases

at Cost

    

Proceeds

from Sale

    

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

02/29/24

    

Shares

Held at

02/29/24

     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 419,971      $      $  (153,686 )(a)     $ 146      $ 50      $ 266,481        266,348      $ 1,781 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares(c)

                   0 (a)                                    4,740         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ 146      $ 50      $ 266,481         $ 6,521      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 
  (c) 

As of period end, the entity is no longer held.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description   

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Long Contracts

           

MSCI Emerging Markets Index

     1        03/15/24      $ 51      $ (20
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
    

Commodity

Contracts

      

Credit

Contracts

      

Equity

Contracts

      

Foreign

Currency

Exchange

Contracts

      

Interest

Rate

Contracts

      

Other

Contracts

       Total  

 

 

Liabilities — Derivative Financial Instruments

                                

Futures contracts

                                

Unrealized depreciation on futures contracts(a)

   $        $        $ 20        $        $        $        $ 20  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended February 29, 2024, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ 1,540      $      $      $      $ 1,540  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (125    $      $      $      $ (125
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 25,420   

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

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

  25


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® ESG MSCI EM Leaders 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  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 5,495,044        $ 26,360,103        $ 40        $ 31,855,187  

Preferred Stocks

     593,076          86,711                   679,787  

Rights

              750                   750  

Short-Term Securities

                 

Money Market Funds

     266,481                            266,481  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $  6,354,601        $ 26,447,564        $    40        $ 32,802,205  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Liabilities

                 

Equity Contracts

   $ (20      $        $        $ (20
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, bank borrowings payable of $370,066 are categorized as Level 2 within the fair value hierarchy.

See notes to financial statements.

 

 

26  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited)

February 29, 2024

  

iShares® MSCI Global Sustainable Development Goals ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Australia — 1.4%            

CSL Ltd.

    18,585     $ 3,459,862  

IDP Education Ltd.

    23,807       295,723  

Vicinity Ltd.

    412,335       520,710  
   

 

 

 
      4,276,295  
Austria — 0.5%            

Verbund AG

    19,113       1,383,588  
   

 

 

 
Belgium — 4.2%            

Argenx SE(a)

    778       291,606  

Elia Group SA/NV

    9,679       1,076,666  

Umicore SA

    539,567        11,291,706  
   

 

 

 
      12,659,978  
Canada — 2.5%            

Northland Power Inc.

    47,978       813,096  

RioCan REIT

    20,519       270,331  

Saputo Inc.

    155,412       3,161,718  

West Fraser Timber Co. Ltd.

    40,903       3,291,770  
   

 

 

 
      7,536,915  
Chile — 0.8%            

Empresas CMPC SA

    1,375,299       2,441,502  
   

 

 

 
China — 14.6%            

Akeso Inc.(a)(b)

    28,000       167,900  

Anjoy Foods Group Co. Ltd., Class A

    4,300       51,986  

BeiGene Ltd.(a)

    34,021       438,012  

Beijing Enterprises Water Group Ltd.

    4,254,000       997,908  

BYD Co. Ltd., Class A

    44,800       1,183,286  

BYD Co. Ltd., Class H

    260,000       6,403,817  

CECEP Solar Energy Co. Ltd., Class A

    85,700       64,564  

China Longyuan Power Group Corp. Ltd., Class H

    1,856,000       1,307,947  

China Medical System Holdings Ltd.

    112,000       184,114  

China Mengniu Dairy Co. Ltd.

    1,417,000       3,542,984  

China Railway Signal & Communication Corp. Ltd., Class A

    163,655       110,759  

China Three Gorges Renewables Group Co. Ltd., Class A

    287,500       184,195  

Chongqing Zhifei Biological Products Co. Ltd., Class A

    15,700       116,415  

Contemporary Amperex Technology Co. Ltd., Class A

    129,120       2,920,365  

CSPC Pharmaceutical Group Ltd.

    701,520       546,379  

East Buy Holding Ltd.(a)(b)(c)

    60,000       184,949  

Flat Glass Group Co. Ltd., Class A

    22,300       67,478  

Flat Glass Group Co. Ltd., Class H

    27,000       49,917  

GoodWe Technologies Co. Ltd., NVS

    3,938       59,189  

Hansoh Pharmaceutical Group Co. Ltd.(b)

    50,000       88,128  

Hebei Yangyuan Zhihui Beverage Co. Ltd., Class A

    7,800       27,130  

Henan Shuanghui Investment & Development Co. Ltd., Class A

    85,300       345,306  

Hengan International Group Co. Ltd.

    311,500       960,106  

Hengdian Group DMEGC Magnetics Co. Ltd.

    41,600       82,838  

Hoymiles Power Electronics Inc., NVS

    441       14,220  

Innovent Biologics Inc.(a)(b)

    35,500       191,441  

Kingdee International Software Group Co.
Ltd.(a)

    260,000       279,575  

Li Auto Inc.(a)

    412,844       9,421,909  

Ming Yang Smart Energy Group Ltd., Class A

    164,200       232,390  

New Oriental Education & Technology Group Inc.(a)

    260,700       2,472,313  

NIO Inc., ADR(a)(c)

    620,406       3,567,335  

Nongfu Spring Co. Ltd., Class H(b)

    57,800       326,847  

Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A

    7,800       23,205  

Sungrow Power Supply Co. Ltd., Class A

    22,800       275,271  

Tingyi Cayman Islands Holding Corp.

    1,172,000       1,303,329  
Security   Shares     Value  

 

 
China (continued)            

Vinda International Holdings Ltd.

    119,000     $ 352,424  

Xinyi Solar Holdings Ltd.

    2,570,000       1,556,251  

XPeng Inc.(a)(c)

    353,532       1,654,633  

Yadea Group Holdings Ltd.(b)

    598,000       939,500  

Yihai Kerry Arawana Holdings Co. Ltd., Class A

    45,900       205,412  

Zai Lab Ltd.(a)

    22,850       48,766  

Zhejiang Chint Electrics Co. Ltd., Class A

    71,000       202,434  

Zhejiang Leapmotor Technology Co. Ltd.(a)(b)

    231,400       809,804  
   

 

 

 
      43,962,731  
Denmark — 9.0%            

Genmab A/S(a)

    2,528       702,329  

Novo Nordisk A/S

    75,029       8,955,884  

Orsted A/S(b)

    68,666       3,845,414  

Rockwool A/S, Class B

    4,204       1,345,493  

Vestas Wind Systems A/S(a)

    443,417       12,357,155  
   

 

 

 
      27,206,275  
France — 5.5%            

Alstom SA

    904,534       12,063,829  

Covivio SA/France

    15,946       716,008  

Gecina SA

    3,354       323,968  

Ipsen SA

    3,351       368,118  

Klepierre SA

    50,126       1,273,365  

Unibail-Rodamco-Westfield, New(a)

    23,677       1,731,343  
   

 

 

 
      16,476,631  
Germany — 2.4%            

LEG Immobilien SE(a)

    19,290       1,420,890  

Vonovia SE

    211,088       5,891,284  
   

 

 

 
      7,312,174  
Hong Kong — 4.2%            

Henderson Land Development Co. Ltd.

    269,000       773,995  

Link REIT

    221,120       1,096,447  

MTR Corp. Ltd.

    388,000       1,283,609  

Swire Properties Ltd.

    195,200       401,520  

WH Group Ltd.(b)

    15,314,500       9,203,337  
   

 

 

 
       12,758,908  
India — 0.6%            

Adani Green Energy Ltd.(a)

    5,593       127,828  

Colgate-Palmolive India Ltd.

    4,994       151,873  

Hindustan Unilever Ltd.

    30,606       890,474  

Macrotech Developers Ltd.

    13,239       185,504  

Marico Ltd.

    25,662       161,683  

Nestle India Ltd., NVS

    10,058       314,992  
   

 

 

 
      1,832,354  
Indonesia — 0.0%            

Unilever Indonesia Tbk PT

    569,400       98,916  
   

 

 

 
Japan — 13.1%            

Asahi Intecc Co. Ltd.

    6,900       143,613  

Central Japan Railway Co.

    201,100       5,057,641  

Chugai Pharmaceutical Co. Ltd.

    19,200       766,879  

Daiichi Sankyo Co. Ltd.

    60,300       1,985,915  

Daiwa House Industry Co. Ltd.

    409,200       11,815,423  

East Japan Railway Co.

    127,700       7,554,918  

Eisai Co. Ltd.

    22,400       929,167  

GLP J-REIT

    318       252,297  

Japan Metropolitan Fund Invest

    640       377,184  

Japan Real Estate Investment Corp.

    91       328,026  

Kyowa Kirin Co. Ltd.

    18,800       372,301  

Nippon Building Fund Inc.

    110       423,634  

Nippon Prologis REIT Inc.

    197       329,591  

Nissin Foods Holdings Co. Ltd.

    45,300       1,320,421  

 

 

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

  27


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® MSCI Global Sustainable Development Goals ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
Japan (continued)            

Nomura Real Estate Master Fund Inc.

    348     $ 345,873  

Ono Pharmaceutical Co. Ltd.

    47,200       781,613  

Shionogi & Co. Ltd.

    18,600       926,036  

Sysmex Corp.

    10,400       584,010  

Terumo Corp.

    27,600       1,075,343  

TOTO Ltd.

    79,900       2,163,533  

Unicharm Corp.

    56,500       1,873,716  
   

 

 

 
      39,407,134  
Malaysia — 0.1%            

PPB Group Bhd

    55,300       181,556  

QL Resources Bhd

    187,300       229,226  
   

 

 

 
      410,782  
Mexico — 0.6%            

Gruma SAB de CV, Class B

    53,534       953,352  

Kimberly-Clark de Mexico SAB de CV, Class A

    327,946       728,844  
   

 

 

 
      1,682,196  
Netherlands — 0.3%            

JDE Peet’s NV

    36,670       837,840  
   

 

 

 
Norway — 1.0%            

Mowi ASA

    110,265       2,129,549  

Salmar ASA

    13,959       886,529  
   

 

 

 
      3,016,078  
Saudi Arabia — 0.2%            

ACWA Power Co.

    1,729       121,730  

Almarai Co. JSC

    22,639       354,951  
   

 

 

 
      476,681  
Singapore — 0.9%            

CapitaLand Ascendas REIT

    314,900       641,750  

CapitaLand Integrated Commercial Trust

    670,740       978,361  

City Developments Ltd.

    245,000       1,032,660  
   

 

 

 
      2,652,771  
South Korea — 3.7%            

LG Energy Solution Ltd.(a)

    14,169       4,282,016  

Samsung SDI Co. Ltd.

    24,313       6,907,107  
   

 

 

 
      11,189,123  
Spain — 0.2%            

Corp. ACCIONA Energias Renovables SA

    1,018       21,049  

EDP Renovaveis SA

    37,853       516,349  
   

 

 

 
      537,398  
Sweden — 2.7%            

Essity AB, Class B

    275,178       6,416,067  

Svenska Cellulosa AB SCA, Class B

    77,688       1,099,929  

Swedish Orphan Biovitrum AB(a)

    19,634       482,213  
   

 

 

 
      7,998,209  
Switzerland — 4.4%            

Geberit AG, Registered

    2,537       1,474,984  

Novartis AG, Registered

    116,383        11,742,752  
   

 

 

 
      13,217,736  
Taiwan — 1.8%            

Taiwan High Speed Rail Corp.

    496,000       473,980  

Uni-President Enterprises Corp.

    2,021,000       4,907,473  
   

 

 

 
      5,381,453  
Thailand — 0.0%            

BTS Group Holdings PCL, NVDR

    1,052,800       151,298  
   

 

 

 
Security   Shares     Value  

 

 
United Kingdom — 1.8%            

Berkeley Group Holdings PLC

    23,292     $ 1,368,477  

Land Securities Group PLC

    51,091       400,268  

Pearson PLC

    289,556       3,520,011  
   

 

 

 
      5,288,756  
United States — 23.3%            

Alexandria Real Estate Equities Inc.

    15,988       1,994,183  

Alnylam Pharmaceuticals Inc.(a)

    3,676       555,407  

Amgen Inc.

    24,851       6,804,949  

BioMarin Pharmaceutical Inc.(a)

    10,121       873,240  

Boston Properties Inc.

    26,917       1,742,068  

Darling Ingredients Inc.(a)

    99,024       4,189,706  

Dexcom Inc.(a)(c)

    11,604       1,335,272  

Digital Realty Trust Inc.

    48,854       7,172,256  

Edwards Lifesciences Corp.(a)

    22,553       1,914,073  

Enphase Energy Inc.(a)

    17,034       2,163,488  

First Solar Inc.(a)

    15,868       2,441,927  

Hormel Foods Corp.

    106,143       3,748,971  

Incyte Corp.(a)

    20,323       1,186,050  

Insulet Corp.(a)

    3,350       549,400  

Jazz Pharmaceuticals PLC(a)

    11,117       1,321,811  

Kimberly-Clark Corp.

    86,108       10,433,706  

Regeneron Pharmaceuticals Inc.(a)

    4,138       3,997,681  

Rivian Automotive Inc., Class A(a)(c)

    134,375       1,521,125  

Sun Communities Inc.

    13,222       1,768,575  

United Therapeutics Corp.(a)

    3,962       893,986  

Vertex Pharmaceuticals Inc.(a)(c)

    9,113       3,834,204  

Weyerhaeuser Co.

    189,443       6,513,050  

Xylem Inc./NY

    26,085       3,314,099  
   

 

 

 
      70,269,227  
   

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $324,896,858)

 

     300,462,949  
   

 

 

 

Short-Term Securities

 

 

Money Market Funds — 1.9%

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.50%(d)(e)(f)

    5,851,515       5,854,441  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.30%(d)(e)

    20,000       20,000  
   

 

 

 

Total Short-Term Securities — 1.9%
(Cost: $5,873,906)

 

    5,874,441  
   

 

 

 

Total Investments — 101.7%
(Cost: $330,770,764)

 

    306,337,390  

Liabilities in Excess of Other Assets — (1.7)%

 

    (5,175,266
   

 

 

 

Net Assets — 100.0%

 

  $ 301,162,124  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(c) 

All or a portion of this security is on loan.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

 

 

28  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® MSCI Global Sustainable Development Goals ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 29, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   

Value at

08/31/23

    

Purchases

at Cost

    

Proceeds

from Sale

    

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

02/29/24

    

Shares

Held at

02/29/24

     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 8,698,366      $      $  (2,844,439 )(a)     $ (216    $ 730      $ 5,854,441        5,851,515      $  30,473 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     310,000               (290,000 )(a)                      20,000        20,000        12,619         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ (216    $ 730      $ 5,874,441         $ 43,092      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description   

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Long Contracts

           

MSCI EAFE Index

     4        03/15/24      $ 458      $ 6,754  

MSCI Emerging Markets Index

     4        03/15/24        203        272  

S&P 500 E-Mini Index

     1        03/15/24        255        11,148  
           

 

 

 
            $ 18,174  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
   

Commodity

Contracts

   

Credit

Contracts

   

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

   

Interest

Rate

Contracts

   

Other

Contracts

    Total  

 

 

Assets — Derivative Financial Instruments

             

Futures contracts

             

Unrealized appreciation on futures contracts(a)

  $     $     $ 18,174     $     $     $     $ 18,174  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended February 29, 2024, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
   

Commodity

Contracts

   

Credit

Contracts

   

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

   

Interest

Rate

Contracts

   

Other

Contracts

    Total  

 

 

Net Realized Gain (Loss) from

             

Futures contracts

  $     $     $ 24,725     $     $     $     $ 24,725  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

             

Futures contracts

  $     $     $ 63,568     $     $     $     $ 63,568  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

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

  29


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® MSCI Global Sustainable Development Goals ETF

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 1,875,406   

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 87,751,445        $ 212,711,504        $        $ 300,462,949  

Short-Term Securities

                 

Money Market Funds

     5,874,441                            5,874,441  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $  93,625,886        $ 212,711,504        $        $ 306,337,390  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $ 18,174        $        $     —        $ 18,174  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, bank borrowings payable of $150,027 are categorized as Level 2 within the fair value hierarchy.

See notes to financial statements.

 

 

30  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited)

February 29, 2024

  

iShares® MSCI Water Management Multisector ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Beverages — 9.4%  

Coca-Cola Europacific Partners PLC

    1,088     $ 74,669  

Coca-Cola Femsa SAB de CV

    2,800       27,329  

Diageo PLC

    8,672       324,899  

Fomento Economico Mexicano SAB de CV

    10,800       134,859  
   

 

 

 
      561,756  
Building Products — 10.3%  

Astral Ltd.

    2,944       73,466  

Geberit AG, Registered

    620       360,461  

Genuit Group PLC

    11,072       56,584  

Zurn Elkay Water Solutions Corp.

    3,824       121,412  
   

 

 

 
      611,923  
Chemicals — 7.7%  

Ecolab Inc.

    1,493       335,686  

Ganfeng Lithium Group Co. Ltd., Class A

    400       2,223  

Johnson Matthey PLC

    932       18,167  

Saudi Basic Industries Corp.

    4,984       104,709  
   

 

 

 
      460,785  
Commercial Services & Supplies — 1.0%  

China Everbright Environment Group Ltd.

    166,000       61,661  
   

 

 

 
Construction Materials — 2.2%            

Wienerberger AG

    3,672       128,318  
   

 

 

 
Electric Utilities — 0.4%  

Verbund AG

    348       25,192  
   

 

 

 
Electronic Equipment, Instruments & Components — 2.6%  

Badger Meter Inc.

    980       155,516  
   

 

 

 
Food Products — 4.2%  

Britannia Industries Ltd.

    572       34,279  

Kellanova

    1,456       80,299  

McCormick & Co. Inc./MD, NVS

    1,364       93,925  

Tata Consumer Products Ltd.

    2,828       40,556  
   

 

 

 
       249,059  
Hotels, Restaurants & Leisure — 10.9%  

Fosun Tourism Group(a)(b)

    1,200       664  

Hilton Worldwide Holdings Inc.

    1,332       272,154  

Marriott International Inc./MD, Class A

    1,468       366,809  

Minor International PCL, NVDR

    6,200       5,490  

Star Entertainment Group Ltd. (The)(b)

    4,576       1,549  
   

 

 

 
      646,666  
Independent Power and Renewable Electricity Producers — 0.7%  

AES Brasil Energia SA(b)

    4,056       8,518  

Auren Energia SA

    3,164       8,166  

Meridian Energy Ltd.

    7,042       25,642  
   

 

 

 
      42,326  
Machinery — 17.2%            

Energy Recovery Inc.(b)

    2,320       36,262  

Franklin Electric Co. Inc.

    1,345       139,826  

Kurita Water Industries Ltd.

    3,600       146,718  
Security   Shares     Value  

 

 
Machinery (continued)            

METAWATER Co. Ltd.

    1,300     $ 20,069  

Organo Corp.

    1,200       61,676  

Takuma Co. Ltd.

    2,700       35,124  

Watts Water Technologies Inc., Class A

    896       182,739  

Xylem Inc./NY

    3,156       400,970  
   

 

 

 
      1,023,384  
Multi-Utilities — 4.5%  

ACEA SpA

    356       5,290  

Veolia Environnement SA

    8,412       260,758  
   

 

 

 
      266,048  
Real Estate Management & Development — 0.4%  

Amata Corp. PCL, NVDR

    1,600       1,004  

Swire Pacific Ltd., Class A

    3,000       24,852  
   

 

 

 
      25,856  
Semiconductors & Semiconductor Equipment — 12.3%  

Macronix International Co. Ltd.

    12,000       10,813  

Taiwan Semiconductor Manufacturing Co. Ltd.

    18,000       394,461  

Texas Instruments Inc.

    1,954       326,963  
   

 

 

 
      732,237  
Trading Companies & Distributors — 4.1%  

Core & Main Inc., Class A(b)

    5,102       243,518  
   

 

 

 
Water Utilities — 11.3%            

AlKhorayef Water & Power Technologies Co.(b)

    470       30,403  

American States Water Co.

    1,344       95,975  

American Water Works Co. Inc.

    2,144       254,150  

Beijing Enterprises Water Group Ltd.

    182,000       42,694  

Cia de Saneamento de Minas Gerais Copasa MG

    8,456       35,160  

Cia. de Saneamento Basico do Estado de Sao Paulo

    11,116       177,012  

Cia. de Saneamento do Parana

    6,820       35,437  
   

 

 

 
      670,831  
   

 

 

 

Total Common Stocks — 99.2%
(Cost: $4,925,193)

 

     5,905,076  
   

 

 

 

Preferred Stocks

   

Water Utilities — 0.4%

   

Cia. de Saneamento do Parana, Preference Shares, NVS

    22,496       23,849  
   

 

 

 

Total Preferred Stocks — 0.4%
(Cost: $16,189)

 

    23,849  
   

 

 

 

Total Investments — 99.6%
(Cost: $4,941,382)

 

    5,928,925  

Other Assets Less Liabilities — 0.4%

 

    24,549  
   

 

 

 

Net Assets — 100.0%

 

  $ 5,953,474  
   

 

 

 

 

(a) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(b) 

Non-income producing security.

 

 

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

  31


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® MSCI Water Management Multisector ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 29, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   

Value at

08/31/23

      

Purchases

at Cost

      

Proceeds

from Sale

    

Net Realized

Gain (Loss)

      

Change in

Unrealized

Appreciation

(Depreciation)

      

Value at

02/29/24

      

Shares

Held at

02/29/24

       Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares(a)

   $        $        $ (21 )(b)     $ 21        $        $                 $ 12 (c)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares(a)

                       0 (b)                                            192         
               

 

 

      

 

 

      

 

 

           

 

 

    

 

 

 
                $ 21        $        $             $ 204      $  
               

 

 

      

 

 

      

 

 

           

 

 

    

 

 

 

 

  (a) 

As of period end, the entity is no longer held.

 
  (b) 

Represents net amount purchased (sold).

 
  (c) 

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.

 

Derivative Financial Instruments Categorized by Risk Exposure

For the period ended February 29, 2024, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Commodity

Contracts

   

Credit

Contracts

   

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

   

Interest

Rate

Contracts

   

Other

Contracts

    Total  

 

 

Net Realized Gain (Loss) from

              

Futures contracts

   $     $     $ (1,311   $     $     $     $ (1,311
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 11,442   

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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  

 

 

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 3,637,757        $ 2,267,319        $        $ 5,905,076  

Preferred Stocks

     23,849                            23,849  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 3,661,606        $ 2,267,319        $    —        $ 5,928,925  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

32  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited)

February 29, 2024

  

iShares® Paris-Aligned Climate MSCI World ex USA ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Australia — 6.2%            

ANZ Group Holdings Ltd.

    1,368     $ 25,357  

Aristocrat Leisure Ltd.

    196       5,955  

ASX Ltd.

    96       4,113  

Brambles Ltd.

    416       4,085  

Cochlear Ltd.

    36       8,206  

Coles Group Ltd.

    336       3,696  

Commonwealth Bank of Australia

    616       46,728  

Computershare Ltd.

    220       3,718  

CSL Ltd.

    148       27,552  

Dexus

    2,140       10,248  

Endeavour Group Ltd./Australia

    1,128       4,038  

Goodman Group

    1,612       31,382  

GPT Group (The)

    2,676       7,568  

James Hardie Industries PLC(a)

    336       13,291  

Macquarie Group Ltd.

    136       17,269  

Medibank Pvt Ltd.

    1,128       2,636  

Mineral Resources Ltd.

    176       7,637  

National Australia Bank Ltd.

    1,336       29,685  

Northern Star Resources Ltd.

    732       6,085  

Pilbara Minerals Ltd.

    2,560       6,991  

QBE Insurance Group Ltd.

    868       9,769  

REA Group Ltd.

    32       4,047  

Scentre Group

    3,624       7,335  

Sonic Healthcare Ltd.

    88       1,708  

Stockland

    2,420       7,071  

Suncorp Group Ltd.

    1,532       15,257  

Transurban Group

    2,284       20,127  

Treasury Wine Estates Ltd.

    460       3,693  

Vicinity Ltd.

    7,868       9,936  

Wesfarmers Ltd.

    632       27,431  

Westpac Banking Corp.

    460       7,893  

WiseTech Global Ltd.

    40       2,467  

Xero Ltd.(a)

    28       2,329  
   

 

 

 
       385,303  
Austria — 0.2%            

Verbund AG

    144       10,424  
   

 

 

 
Belgium — 1.2%            

Anheuser-Busch InBev SA/NV

    356       21,517  

Argenx SE(a)

    8       2,999  

D’ieteren Group

    28       5,410  

Elia Group SA/NV

    200       22,247  

Groupe Bruxelles Lambert NV

    60       4,512  

KBC Group NV

    140       9,862  

UCB SA

    52       6,000  

Warehouses De Pauw CVA

    152       4,071  
   

 

 

 
      76,618  
Canada — 12.2%            

Agnico Eagle Mines Ltd.

    264       12,662  

Bank of Montreal

    176       15,930  

Bank of Nova Scotia (The)

    140       6,789  

BCE Inc.

    160       5,937  

Brookfield Asset Management Ltd.

    104       4,238  

CAE Inc.(a)

    140       2,614  

Cameco Corp.

    432       17,507  

Canadian Imperial Bank of Commerce

    548       25,931  

Canadian Pacific Kansas City Ltd.

    324       27,509  

CCL Industries Inc., Class B, NVS

    64       3,262  

CGI Inc.(a)

    136       15,615  

Constellation Software Inc./Canada

    4       11,136  
Security   Shares     Value  

 

 
Canada (continued)            

Dollarama Inc.

    260     $ 20,112  

Element Fleet Management Corp.

    556       9,279  

Fairfax Financial Holdings Ltd.

    16       17,078  

First Quantum Minerals Ltd.

    508       4,810  

FirstService Corp.

    20       3,291  

GFL Environmental Inc.

    172       6,201  

Gildan Activewear Inc.

    184       6,407  

Great-West Lifeco Inc.

    588       18,110  

Hydro One Ltd.(b)

    1,516       45,185  

iA Financial Corp. Inc.

    140       8,682  

IGM Financial Inc.

    148       3,888  

Intact Financial Corp.

    148       24,611  

Ivanhoe Mines Ltd., Class A(a)

    1,320       14,035  

Kinross Gold Corp.

    488       2,388  

Loblaw Companies Ltd.

    176       18,757  

Lundin Mining Corp.

    1,472       11,638  

Manulife Financial Corp.

    1,268       30,094  

Metro Inc./CN

    204       11,045  

National Bank of Canada

    160       12,489  

Northland Power Inc.

    924       15,659  

Nutrien Ltd.

    256       13,363  

Open Text Corp.

    44       1,692  

Pan American Silver Corp.

    252       3,127  

Power Corp. of Canada

    620       17,913  

Quebecor Inc., Class B

    272       6,361  

RB Global Inc.

    44       3,320  

Restaurant Brands International Inc.

    168       13,045  

RioCan REIT

    860       11,330  

Rogers Communications Inc., Class B, NVS

    196       8,674  

Royal Bank of Canada

    612       59,436  

Shopify Inc., Class A(a)

    348       26,588  

Stantec Inc.

    188       15,698  

Sun Life Financial Inc.

    452       24,006  

TFI International Inc.

    80       11,820  

Thomson Reuters Corp.

    124       19,575  

TMX Group Ltd.

    372       9,758  

Toromont Industries Ltd.

    92       8,450  

Toronto-Dominion Bank (The)

    732       43,953  

Wheaton Precious Metals Corp.

    628       25,881  
   

 

 

 
       756,879  
Denmark — 3.6%            

Carlsberg A/S, Class B

    32       4,470  

Coloplast A/S, Class B

    24       3,188  

Demant A/S(a)

    28       1,404  

DSV A/S

    48       7,702  

Genmab A/S(a)

    16       4,445  

Novo Nordisk A/S

    1,180       140,850  

Novozymes A/S, Class B

    371       20,927  

Pandora A/S

    40       6,469  

Rockwool A/S, Class B

    32       10,242  

Tryg A/S

    148       3,147  

Vestas Wind Systems A/S(a)

    736       20,511  
   

 

 

 
      223,355  
Finland — 1.4%            

Elisa OYJ

    104       4,684  

Kesko OYJ, Class B

    1,024       19,578  

Kone OYJ, Class B

    160       7,834  

Nokia OYJ

    2,392       8,432  

Nordea Bank Abp, New

    452       5,501  

Orion OYJ, Class B

    96       3,774  

Sampo OYJ, Class A

    400       17,899  

 

 

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

  33


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® Paris-Aligned Climate MSCI World ex USA ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
Finland (continued)            

UPM-Kymmene OYJ

    272     $ 9,104  

Wartsila OYJ Abp

    572       8,855  
   

 

 

 
      85,661  
France — 10.3%            

Aeroports de Paris SA

    40       5,445  

Air Liquide SA

    84       17,073  

Alstom SA

    608       8,126  

Amundi SA(b)

    36       2,372  

AXA SA

    596       21,219  

Bouygues SA

    40       1,582  

Capgemini SE

    40       9,730  

Cie. de Saint-Gobain SA

    204       15,727  

Cie. Generale des Etablissements Michelin SCA

    120       4,441  

Covivio SA/France

    216       9,699  

Dassault Systemes SE

    388       18,182  

Edenred SE

    200       9,897  

Eiffage SA

    96       10,454  

EssilorLuxottica SA

    116       24,631  

Eurofins Scientific SE

    36       2,151  

Gecina SA

    172       16,614  

Getlink SE

    1,224       20,898  

Hermes International SCA

    16       40,037  

Ipsen SA

    24       2,636  

Kering SA

    32       14,740  

Klepierre SA

    300       7,621  

Legrand SA

    200       20,256  

L’Oreal SA

    100       47,767  

LVMH Moet Hennessy Louis Vuitton SE

    100       91,274  

Pernod Ricard SA

    144       24,067  

Publicis Groupe SA

    48       5,079  

Remy Cointreau SA

    24       2,543  

Sanofi SA

    440       41,938  

Sartorius Stedim Biotech

    8       2,202  

Schneider Electric SE

    428       97,281  

SEB SA

    20       2,370  

Vinci SA

    316       40,493  

Vivendi SE

    268       2,995  

Worldline SA/France(a)(b)

    64       737  
   

 

 

 
       642,277  
Germany — 5.9%            

adidas AG

    64       12,946  

Allianz SE, Registered

    164       45,044  

Beiersdorf AG

    56       8,027  

Brenntag SE

    64       5,844  

Carl Zeiss Meditec AG, Bearer

    28       3,438  

Deutsche Bank AG, Registered

    192       2,571  

Deutsche Boerse AG

    68       14,236  

Deutsche Post AG, Registered

    372       17,273  

Deutsche Telekom AG, Registered

    852       20,251  

GEA Group AG

    120       4,840  

Infineon Technologies AG

    476       17,091  

Knorr-Bremse AG

    148       10,362  

LEG Immobilien SE(a)

    76       5,598  

Merck KGaA

    64       10,889  

MTU Aero Engines AG

    8       1,924  

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered

    80       37,246  

Puma SE

    36       1,656  

Rational AG

    4       3,292  

Rheinmetall AG

    20       9,177  

SAP SE

    384       71,959  
Security   Shares     Value  

 

 
Germany (continued)            

Scout24 SE(b)

    24     $ 1,745  

Siemens AG, Registered

    200       39,594  

Siemens Healthineers AG(b)

    88       5,281  

Symrise AG, Class A

    32       3,275  

Talanx AG(a)

    36       2,570  

Vonovia SE

    408       11,387  

Zalando SE(a)(b)

    68       1,439  
   

 

 

 
       368,955  
Hong Kong — 1.4%            

AIA Group Ltd.

    4,800       38,694  

CK Asset Holdings Ltd.

    2,000       9,200  

ESR Group Ltd.(b)

    5,600       7,462  

Futu Holdings Ltd., ADR(a)

    28       1,498  

Henderson Land Development Co. Ltd.

    4,000       11,509  

Hong Kong Exchanges & Clearing Ltd.

    300       9,240  

MTR Corp. Ltd.

    2,000       6,616  
   

 

 

 
      84,219  
Ireland — 0.6%            

Flutter Entertainment PLC(a)

    52       11,260  

Kerry Group PLC, Class A

    44       3,863  

Kingspan Group PLC

    212       19,171  

Smurfit Kappa Group PLC

    24       1,026  
   

 

 

 
      35,320  
Israel — 0.6%            

Azrieli Group Ltd.

    100       7,258  

Bank Hapoalim BM

    724       6,935  

Bank Leumi Le-Israel BM

    172       1,442  

Check Point Software Technologies Ltd.(a)

    24       3,850  

CyberArk Software Ltd.(a)

    8       2,110  

Elbit Systems Ltd.

    12       2,669  

Nice Ltd.(a)

    20       4,893  

Teva Pharmaceutical Industries Ltd., ADR(a)

    300       3,945  

Wix.com Ltd.(a)

    8       1,122  
   

 

 

 
      34,224  
Italy — 2.3%            

Amplifon SpA

    76       2,538  

Banco BPM SpA

    1,504       8,756  

Enel SpA

    1,320       8,399  

Ferrari NV

    72       30,389  

FinecoBank Banca Fineco SpA

    416       5,763  

Mediobanca Banca di Credito Finanziario SpA

    1,164       15,856  

Moncler SpA

    112       8,076  

Nexi SpA(a)(b)

    136       998  

Poste Italiane SpA(b)

    264       3,097  

Recordati Industria Chimica e Farmaceutica SpA

    100       5,599  

Terna - Rete Elettrica Nazionale

    3,860       30,239  

UniCredit SpA

    672       22,508  
   

 

 

 
      142,218  
Japan — 20.5%            

Advantest Corp.

    400       18,830  

Asahi Group Holdings Ltd.

    400       13,703  

Astellas Pharma Inc.

    1,200       13,114  

Azbil Corp.

    400       11,755  

Bandai Namco Holdings Inc.

    400       7,703  

Canon Inc.

    400       11,698  

Central Japan Railway Co.

    1,600       40,240  

Chugai Pharmaceutical Co. Ltd.

    400       15,977  

Concordia Financial Group Ltd.

    1,200       6,084  

Daifuku Co. Ltd.

    400       9,497  

Daiichi Sankyo Co. Ltd.

    800       26,347  

Daiwa House Industry Co. Ltd.

    400       11,550  

 

 

34  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® Paris-Aligned Climate MSCI World ex USA ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
Japan (continued)            

Daiwa Securities Group Inc.

    800     $ 5,898  

East Japan Railway Co.

    400        23,665  

FANUC Corp.

    800       23,320  

Hamamatsu Photonics KK

    400       14,381  

Hoya Corp.

    400       52,215  

Iida Group Holdings Co. Ltd.

    400       5,162  

Japan Exchange Group Inc.

    800       20,945  

Japan Metropolitan Fund Invest

    12       7,072  

Japan Post Bank Co. Ltd.

    800       8,530  

Japan Real Estate Investment Corp.

    4       14,419  

KDX Realty Investment Corp.

    4       4,004  

Keisei Electric Railway Co. Ltd.

    400       18,688  

Kintetsu Group Holdings Co. Ltd.

    400       12,302  

Kirin Holdings Co. Ltd.

    400       5,561  

Koito Manufacturing Co. Ltd.

    400       5,070  

Komatsu Ltd.

    400       11,611  

Kyocera Corp.

    800       11,807  

Kyowa Kirin Co. Ltd.

    400       7,921  

M3 Inc.

    400       5,753  

MatsukiyoCocokara & Co.

    400       6,633  

MISUMI Group Inc.

    400       6,114  

Mitsubishi Corp.

    400       8,580  

Mitsubishi Estate Co. Ltd.

    800       12,245  

Mitsubishi UFJ Financial Group Inc.

    4,000       41,091  

Mizuho Financial Group Inc.

    400       7,473  

Murata Manufacturing Co. Ltd.

    800       16,122  

Nidec Corp.

    400       15,179  

Nintendo Co. Ltd.

    400       22,352  

Nippon Building Fund Inc.

    4       15,405  

Nippon Paint Holdings Co. Ltd.

    400       2,972  

NTT Data Group Corp.

    400       6,515  

Odakyu Electric Railway Co. Ltd.

    400       5,624  

Olympus Corp.

    800       11,383  

Omron Corp.

    400       14,873  

Ono Pharmaceutical Co. Ltd.

    400       6,624  

Oriental Land Co. Ltd./Japan

    400       14,336  

ORIX Corp.

    800       16,808  

Otsuka Holdings Co. Ltd.

    400       16,231  

Pan Pacific International Holdings Corp.

    400       9,430  

Rakuten Group Inc.(a)

    800       4,385  

Recruit Holdings Co. Ltd.

    400       16,134  

Renesas Electronics Corp.

    800       13,218  

Rohm Co. Ltd.

    400       6,815  

SBI Holdings Inc.

    400       10,770  

Seiko Epson Corp.

    400       6,475  

Shimadzu Corp.

    400       10,927  

Shin-Etsu Chemical Co. Ltd.

    800       34,139  

Shionogi & Co. Ltd.

    400       19,915  

Shiseido Co. Ltd.

    400       10,875  

Shizuoka Financial Group Inc., NVS

    2,000       19,577  

SoftBank Group Corp.

    400       23,693  

Sony Group Corp.

    400       34,459  

Sumitomo Metal Mining Co. Ltd.

    400       10,413  

Sumitomo Mitsui Financial Group Inc.

    400       22,286  

T&D Holdings Inc.

    400       6,962  

Takeda Pharmaceutical Co. Ltd.

    400       11,698  

Terumo Corp.

    400       15,585  

TIS Inc.

    400       9,027  

Tokio Marine Holdings Inc.

    800       23,373  

Tokyo Electron Ltd.

    400       99,244  

Toyota Motor Corp.

    2,800       67,442  

Unicharm Corp.

    400       13,265  
Security   Shares     Value  

 

 
Japan (continued)            

USS Co. Ltd.

    800     $ 13,926  

West Japan Railway Co.

    400       16,633  

Yamaha Corp.

    400       8,748  

Yaskawa Electric Corp.

    400       16,395  

Yokogawa Electric Corp.

    800       16,934  

ZOZO Inc.

    400       9,078  
   

 

 

 
       1,273,203  
Netherlands — 4.4%            

Adyen NV(a)(b)

    8       12,658  

Akzo Nobel NV

    84       6,123  

ASML Holding NV

    148       140,452  

ASR Nederland NV

    112       5,169  

BE Semiconductor Industries NV

    12       2,173  

Davide Campari-Milano NV

    440       4,462  

EXOR NV, NVS

    124       13,394  

Ferrovial SE

    628       23,581  

Heineken Holding NV

    108       8,342  

IMCD NV

    24       3,661  

NN Group NV

    292       13,031  

Prosus NV

    672       19,628  

Qiagen NV, NVS

    104       4,447  

Universal Music Group NV

    288       8,695  

Wolters Kluwer NV

    52       8,212  
   

 

 

 
      274,028  
New Zealand — 0.5%            

Auckland International Airport Ltd.

    904       4,458  

Mercury NZ Ltd.

    4,332       17,619  

Meridian Energy Ltd.

    3,256       11,856  
   

 

 

 
      33,933  
Norway — 0.7%            

Adevinta ASA(a)

    92       982  

DNB Bank ASA

    1,160       23,228  

Gjensidige Forsikring ASA

    544       8,594  

Kongsberg Gruppen ASA

    28       1,785  

Orkla ASA

    480       3,441  

Salmar ASA

    40       2,540  
   

 

 

 
      40,570  
Portugal — 0.3%            

EDP - Energias de Portugal SA

    5,196       20,693  
   

 

 

 
Singapore — 1.3%            

CapitaLand Ascendas REIT

    7,600       15,488  

CapitaLand Integrated Commercial Trust

    22,400       32,673  

City Developments Ltd.

    2,800       11,802  

Genting Singapore Ltd.

    14,800       10,016  

Grab Holdings Ltd., Class A(a)

    704       2,161  

Mapletree Logistics Trust

    4,000       4,406  

Sea Ltd., ADR(a)

    48       2,329  

Singapore Technologies Engineering Ltd.

    800       2,369  
   

 

 

 
      81,244  
Spain — 2.1%            

ACS Actividades de Construccion y Servicios SA

    489       20,109  

Aena SME SA(b)

    88       16,719  

Amadeus IT Group SA

    212       12,542  

Banco Bilbao Vizcaya Argentaria SA

    152       1,516  

CaixaBank SA

    1,340       6,062  

Cellnex Telecom SA(b)

    28       1,012  

Corp. ACCIONA Energias Renovables SA

    23       475  

EDP Renovaveis SA

    672       9,167  

Grifols SA(a)

    56       461  

Iberdrola SA

    2,244       25,773  

 

 

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

  35


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® Paris-Aligned Climate MSCI World ex USA ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Spain (continued)  

Industria de Diseno Textil SA

    844     $ 37,548  
   

 

 

 
      131,384  
Sweden — 3.1%  

Assa Abloy AB, Class B

    260       7,422  

Atlas Copco AB, Class A

    812       14,106  

Atlas Copco AB, Class B

    720       10,779  

Boliden AB

    424       10,746  

Epiroc AB

    348       6,317  

Epiroc AB, Class B

    268       4,422  

Evolution AB(b)

    52       6,736  

H & M Hennes & Mauritz AB, Class B

    548       7,441  

Hexagon AB, Class B

    972       11,402  

Holmen AB, Class B

    60       2,409  

Industrivarden AB, Class A

    188       6,418  

Investor AB, Class B

    684       17,209  

Nibe Industrier AB, Class B

    1,088       6,073  

Sandvik AB

    532       11,979  

Skandinaviska Enskilda Banken AB, Class A

    848       12,612  

Skanska AB, Class B

    808       14,912  

Svenska Cellulosa AB SCA, Class B

    544       7,702  

Svenska Handelsbanken AB, Class A

    1,060       12,678  

Swedbank AB, Class A

    160       3,519  

Tele2 AB, Class B

    528       4,429  

Telefonaktiebolaget LM Ericsson, Class B

    1,136       6,169  

Volvo AB, Class B

    164       4,519  
   

 

 

 
       189,999  
Switzerland — 9.8%  

ABB Ltd., Registered

    1,600       73,828  

Alcon Inc.

    176       15,007  

Baloise Holding AG, Registered

    184       29,688  

Banque Cantonale Vaudoise, Registered

    64       7,671  

BKW AG

    76       10,648  

Coca-Cola HBC AG, Class DI

    44       1,372  

DSM-Firmenich AG

    72       7,716  

Geberit AG, Registered

    40       23,256  

Givaudan SA, Registered

    8       33,567  

Julius Baer Group Ltd.

    152       8,142  

Kuehne + Nagel International AG, Registered

    20       6,734  

Logitech International SA, Registered

    56       4,955  

Lonza Group AG, Registered

    20       10,439  

Novartis AG, Registered

    768       77,489  

Partners Group Holding AG

    8       11,503  

Roche Holding AG, NVS

    264       69,026  

Sandoz Group AG(a)

    136       4,207  

Schindler Holding AG, Participation Certificates, NVS

    52       13,701  

Schindler Holding AG, Registered

    20       5,086  

SGS SA

    16       1,536  

Sika AG, Registered

    52       15,039  

Sonova Holding AG, Registered

    24       7,403  

STMicroelectronics NV

    276       12,532  

Straumann Holding AG

    48       7,587  

Swatch Group AG (The), Bearer

    20       4,722  

Swiss Life Holding AG, Registered

    12       8,723  

Swiss Prime Site AG, Registered

    204       19,497  

Swiss Re AG

    160       19,311  

Swisscom AG, Registered

    36       20,577  

Temenos AG, Registered

    24       1,806  

UBS Group AG, Registered

    1,156       33,006  

VAT Group AG(b)

    8       4,016  

Zurich Insurance Group AG

    72       38,306  
   

 

 

 
      608,096  
Security   Shares     Value  
United Kingdom — 10.0%  

3i Group PLC

    1,240     $ 38,741  

abrdn PLC

    2,308       4,596  

Admiral Group PLC

    128       4,319  

Antofagasta PLC

    928       21,321  

Ashtead Group PLC

    308       22,153  

AstraZeneca PLC

    540       68,069  

Auto Trader Group PLC(b)

    320       2,996  

Aviva PLC

    2,716       15,341  

Barclays PLC

    8,120       16,971  

Barratt Developments PLC

    1,640       9,676  

Berkeley Group Holdings PLC

    272       15,981  

Bunzl PLC

    268       10,682  

Burberry Group PLC

    160       2,598  

Coca-Cola Europacific Partners PLC

    148       10,157  

Compass Group PLC

    592       16,244  

Croda International PLC

    56       3,376  

Diageo PLC

    960       35,967  

Entain PLC

    152       1,754  

Experian PLC

    292       12,505  

GSK PLC

    1,604       33,553  

Haleon PLC

    2,404       10,085  

Halma PLC

    228       6,640  

Hargreaves Lansdown PLC

    180       1,659  

Hikma Pharmaceuticals PLC

    48       1,191  

HSBC Holdings PLC

    6,200       48,259  

Informa PLC

    1,160       11,893  

InterContinental Hotels Group PLC

    72       7,646  

Intertek Group PLC

    20       1,171  

JD Sports Fashion PLC

    1,668       2,493  

Legal & General Group PLC

    2,920       8,953  

Lloyds Banking Group PLC

    32,280       19,086  

London Stock Exchange Group PLC

    112       12,579  

Mondi PLC, NVS

    72       1,280  

NatWest Group PLC, NVS

    2,156       6,519  

Next PLC

    116       12,196  

Ocado Group PLC(a)

    144       933  

Pearson PLC

    280       3,404  

Persimmon PLC

    320       5,515  

Prudential PLC

    888       8,749  

Reckitt Benckiser Group PLC

    268       16,933  

RELX PLC

    612       26,808  

Rentokil Initial PLC

    1,084       6,035  

Rio Tinto PLC

    76       4,876  

Schroders PLC

    488       2,432  

Segro PLC

    1,212       12,963  

Smith & Nephew PLC

    320       4,222  

Smiths Group PLC

    368       7,492  

Spirax-Sarco Engineering PLC

    64       8,350  

Taylor Wimpey PLC

    5,216       9,090  

Wise PLC, Class A(a)

    88       1,022  

WPP PLC

    320       2,863  
   

 

 

 
      620,337  
   

 

 

 

Total Common Stocks — 98.6%
(Cost: $5,806,383)

       6,118,940  
   

 

 

 

Preferred Stocks

   
Germany — 0.3%            

Dr Ing hc F Porsche AG, Preference Shares, NVS

    44       4,114  

Henkel AG & Co. KGaA, Preference Shares, NVS

    112       8,426  

 

 

36  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® Paris-Aligned Climate MSCI World ex USA ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
Germany (continued)            

Sartorius AG, Preference Shares, NVS

    16     $ 6,060  
   

 

 

 
      18,600  
   

 

 

 

Total Preferred Stocks — 0.3%
(Cost: $17,519)

      18,600  
   

 

 

 

Total Investments — 98.9%
(Cost: $5,823,902)

      6,137,540  

Other Assets Less Liabilities — 1.1%

      67,120  
   

 

 

 

Net Assets — 100.0%

    $  6,204,660  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the period ended February 29, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

   
Affiliated Issuer    

Value at

01/17/24

 

(a) 

   

Purchases

at Cost

 

 

   

Proceeds

from Sale

 

 

   

Net Realized

Gain (Loss)

 

 

   

Change in

Unrealized

Appreciation

(Depreciation)

 

 

 

 

   

Value at

02/29/24

 

 

   

Shares

Held at

02/29/24

 

 

 

    Income      

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

 

 

 

   


 

 

 

 

 

 

 

   

BlackRock Cash Funds: Treasury, SL Agency Shares(b)

    $   —       $  10,000     $ (10,000   $     $     $           $     $    
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

  (a) 

Commencement of operations.

 
  (b) 

As of period end, the entity is no longer held.

 

OTC Total Return Swaps

 

 

 
Reference Entity  

Payment

Frequency

     Counterparty(a)   

Termination

Date

     Net Notional    

Accrued

Unrealized

Appreciation

(Depreciation)

   

Net Value of

Reference

Entity

   

Gross

Notional

Amount

Net Asset

Percentage

 

 

 

Equity Securities Long

    Monthly      HSBC Bank PLC(b)      02/08/28      $ 4,383      $ (8   $ 4,375        0.1
    Monthly      JPMorgan Chase Bank NA      02/10/25        41,950       (1 )(c)      41,950       0.7  
            

 

 

   

 

 

   
             $ (9   $ 46,325    
            

 

 

   

 

 

   

 

  (a) 

The Fund receives the total return on a portfolio of long positions underlying the total return swap. The Fund pays the total return on a portfolio of short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions.

 
  (c) 

Amount includes $(1) of net dividends, payable for referenced securities purchased and financing fees.

 

The following are the specified benchmarks (plus or minus a range) used in determining the variable rate of interest:

  (b)
Range:   45 basis points
Benchmarks:        EUR - 1D Euro Short Term Rate (ESTR)

 

 

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

  37


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® Paris-Aligned Climate MSCI World ex USA ETF

 

The following table represents the individual long positions and related values of equity securities underlying the total return swap with HSBC Bank PLC as of period end, termination date February 08, 2028.

 

     Shares     Value    

% of

Basket

Value

 

Reference Entity — Long

     
Common Stocks                  
Singapore                  

Singapore Exchange Ltd.

    600     $ 4,215       96.3%  
   

 

 

   
Spain                  

Redeia Corp. SA

    10       160       3.7     
   

 

 

   

Total Reference Entity — Long

 

    4,375    
   

 

 

   

Net Value of Reference Entity — HSBC Bank PLC

 

  $ 4,375    
   

 

 

   

The following table represents the individual long positions and related values of equity securities underlying the total return swap with JPMorgan Chase Bank NA as of period end, termination date February 10, 2025.

     Shares     Value    

% of

Basket

Value

 

Reference Entity — Long

     
Common Stocks                  
Hong Kong                  

Hong Kong Exchanges & Clearing Ltd.

    200     $ 6,160       14.7%  
   

 

 

   
     Shares     Value    

% of

Basket

Value

 
Netherlands                  

ASM International NV

    9     $ 5,497       13.1  
   

 

 

   
Spain                  

Redeia Corp. SA

    1,904       30,293       72.2  
   

 

 

   

Total Reference Entity — Long

      41,950    
   

 

 

   

Net Value of Reference Entity — JPMorgan Chase Bank NA

 

  $ 41,950    
   

 

 

   

 

Balances Reported in the Statements of Assets and Liabilities for Total Return Swaps

 

         
Description  

Swap Premiums

Paid

   

Swap Premiums

Received

   

Unrealized

Appreciation

   

Unrealized

Depreciation

 

Total Return Swaps

  $     $     $     $ (9 )  

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

               
    

Commodity

Contracts

   

Credit

Contracts

   

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

   

Interest

Rate

Contracts

   

Other

Contracts

    Total  

Liabilities — Derivative Financial Instruments

             

Swaps — OTC

             

Unrealized depreciation on OTC swaps; Swap premiums received

  $     $     $  9      $     $     $     $  9   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

For the period ended February 29, 2024, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
    

Commodity

Contracts

   

Credit

Contracts

   

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

   

Interest

Rate

Contracts

   

Other

Contracts

    Total  

Net Realized Gain (Loss) from

             

Swaps

  $     $     $ 122     $     $     $     $ 122  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

             

Swaps

  $     $     $ (9   $     $     $     $ (9
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

38  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

February 29, 2024

  

iShares® Paris-Aligned Climate MSCI World ex USA ETF

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Total return swaps:

 

Average notional value

  $ 46,333   

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Derivative Financial Instruments - Offsetting as of Period End

The Fund’s derivative assets and liabilities (by type) were as follows:

 

 

 
    Assets     Liabilities  

 

 

Derivative Financial Instruments:

       

Swaps - OTC

        $              $ 9  
   

 

 

     

 

 

 

Total derivative assets and liabilities in the Statement of Assets and Liabilities

               9  

Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)

               
   

 

 

     

 

 

 

Total derivative assets and liabilities subject to an MNA

    $       $ 9  
   

 

 

     

 

 

 

The following table presents the Fund’s derivative liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral pledged by the Fund:

 

 

   

Derivative

Liabilities

Subject to

an MNA by

 

Derivatives

Available

   

Non-Cash

Collateral

 

Cash

Collateral

 

Net Amount

of Derivative

Counterparty   Counterparty   for Offset(a)

 

  Pledged   Pledged(b)   Liabilities(c)

 

HSBC Bank PLC

          $8          $           $—          $—          $8

JPMorgan Chase Bank NA

    1                     1
   

 

   

 

 

     

 

   

 

   

 

    $9     $       $—     $—     $9
   

 

   

 

 

     

 

   

 

   

 

 

  (a) 

The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.

 
  (b) 

Excess of collateral received/pledged, if any, from the individual counterparty is not shown for financial reporting purposes.

 
  (c) 

Net amount represents the net amount payable due to the counterparty in the event of default. Net amount may be offset further by the options written receivable/payable on the Statements of Assets and Liabilities.

 

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  

 

 

Assets

       

Investments

       

Long-Term Investments

       

Common Stocks

  $ 807,110     $ 5,311,830     $     $ 6,118,940  

Preferred Stocks

          18,600             18,600  
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 807,110      $ 5,330,430      $      $ 6,137,540  
 

 

 

   

 

 

   

 

 

   

 

 

 

Derivative Financial Instruments(a)

       

Liabilities

       

Equity Contracts

  $     $ (9   $     $ (9
 

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a)

Derivative financial instruments are swaps. Swaps are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

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

  39


Statements of Assets and Liabilities (unaudited)

February 29, 2024

 

   

iShares

Emergent

Food and

AgTech

Multisector

ETF

   

iShares

ESG Aware MSCI

EAFE ETF

   

iShares

ESG MSCI

EM Leaders

ETF

   

iShares

MSCI Global

Sustainable

Development

Goals ETF

 

 

 

ASSETS

       

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

  $ 4,780,593       $ 7,817,661,639       $ 32,535,724      $ 300,462,949  

Investments, at value — affiliated(c)

    217,035       16,269,599       266,481       5,874,441  

Cash

    4,408       5,774       434,709       311,517  

Cash pledged for futures contracts

    2,000                   24,000  

Foreign currency collateral pledged for futures contracts(d)

          1,951,579              

Foreign currency, at value(e)

    4,135       11,904,248       103,231       820,112  

Receivables:

       

Investments sold

          374,509,136       1,005,344       29,386,771  

Securities lending income — affiliated

    3       4,494       177       6,097  

Capital shares sold

          539,150              

Dividends — unaffiliated

    8,328       10,556,014       70,182       237,564  

Dividends — affiliated

          4,979       246       888  

Tax reclaims

    6,722       12,081,285       841       436,595  

Variation margin on futures contracts

    134       120,475       14       1,694  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

    5,023,358       8,245,608,372       34,416,949       337,562,628  
 

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES

       

Bank borrowings

                370,066       150,027  

Collateral on securities loaned, at value

    217,035       15,861,167       272,975       5,856,443  

Payables:

       

Investments purchased

          370,511,753       952,225       29,373,398  

Capital shares redeemed

                      866,137  

Deferred foreign capital gain tax

                160,963       33,585  

Investment advisory fees

    1,762       1,220,435       4,105       120,914  

Professional fees

          69,045              
 

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    218,797       387,662,400       1,760,334       36,400,504  
 

 

 

   

 

 

   

 

 

   

 

 

 

Commitments and contingent liabilities

       

NET ASSETS

  $ 4,804,561     $ 7,857,945,972     $ 32,656,615     $ 301,162,124  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS CONSIST OF

       

Paid-in capital

  $ 6,189,943     $ 7,236,077,668     $ 34,732,083     $ 395,902,596  

Accumulated earnings (loss)

    (1,385,382     621,868,304       (2,075,468     (94,740,472
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS

  $ 4,804,561     $ 7,857,945,972     $ 32,656,615     $ 301,162,124  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSET VALUE

       

Shares outstanding

    250,000       101,900,000       750,000       3,900,000  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value

  $ 19.22     $ 77.11     $ 43.54     $ 77.22  
 

 

 

   

 

 

   

 

 

   

 

 

 

Shares authorized

    Unlimited       Unlimited       Unlimited       Unlimited  
 

 

 

   

 

 

   

 

 

   

 

 

 

Par value

    None       None       None       None  
 

 

 

   

 

 

   

 

 

   

 

 

 

(a)  Investments, at cost — unaffiliated

  $ 5,732,504     $ 6,573,824,724     $ 33,016,740     $ 324,896,858  

(b)  Securities loaned, at value

  $ 212,575     $ 15,411,269     $ 261,634     $ 5,532,981  

(c)  Investments, at cost — affiliated

  $ 217,035     $ 16,271,574     $ 266,431     $ 5,873,906  

(d)  Foreign currency collateral pledged, at cost

  $     $ 1,975,184     $     $  

(e)  Foreign currency, at cost

  $ 4,159     $ 11,879,273     $ 104,035     $ 827,931  

See notes to financial statements.

 

 

40  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Statements of Assets and Liabilities (unaudited) (continued)

February 29, 2024

 

   

iShares

MSCI Water

Management

Multisector

ETF

      

iShares

Paris-Aligned

Climate

MSCI World

ex USA ETF

 

 

 

ASSETS

      

Investments, at value — unaffiliated(a)

  $ 5,928,925        $ 6,137,540  

Cash

    2,899          1,038  

Foreign currency, at value(b)

    778          4,064  

Receivables:

      

Investments sold

    99,767          55,363  

Swaps

             123  

Dividends — unaffiliated

    15,352          6,965  

Tax reclaims

    2,479          156  
 

 

 

      

 

 

 

Total assets

    6,050,200          6,205,249  
 

 

 

      

 

 

 

LIABILITIES

      

Payables:

      

Investments purchased

    91,164           

Deferred foreign capital gain tax

    3,386           

Investment advisory fees

    2,176          580  

Unrealized depreciation on OTC swaps

             9  
 

 

 

      

 

 

 

Total liabilities

    96,726          589  
 

 

 

      

 

 

 

Commitments and contingent liabilities

      

NET ASSETS

  $ 5,953,474        $ 6,204,660  
 

 

 

      

 

 

 

NET ASSETS CONSIST OF

      

Paid-in capital

  $ 4,982,461        $ 5,882,292  

Accumulated earnings

    971,013          322,368  
 

 

 

      

 

 

 

NET ASSETS

  $ 5,953,474        $ 6,204,660  
 

 

 

      

 

 

 

NET ASSETVALUE

      

Shares outstanding

    200,000          120,000  
 

 

 

      

 

 

 

Net asset value

  $ 29.77        $ 51.71  
 

 

 

      

 

 

 

Shares authorized

    Unlimited          Unlimited  
 

 

 

      

 

 

 

Par value

    None          None  
 

 

 

      

 

 

 

(a)   Investments, at cost — unaffiliated

  $ 4,941,382        $ 5,823,902  

(b)   Foreign currency, at cost

  $ 783        $ 4,074  

See notes to financial statements.

 

 

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

  41


Statements of Operations (unaudited)

Six Months Ended February 29, 2024

 

   

iShares

Emergent

Food and

AgTech

Multisector

ETF

    

iShares

ESG Aware

MSCI EAFE

ETF

    

iShares

ESG MSCI

EM Leaders

ETF

    

iShares

MSCI Global

Sustainable

Development

Goals ETF

 

 

 

INVESTMENT INCOME

          

Dividends — unaffiliated

  $ 48,566      $ 67,613,408      $ 388,256      $ 2,354,801  

Dividends — affiliated

    41        97,635        4,740        12,619  

Securities lending income — affiliated — net

    53        16,734        1,781        30,473  

Other income — unaffiliated

           38,850                

Foreign taxes withheld

    (2,408      (5,153,472      (42,645      (130,352

Foreign withholding tax claims

           1,064,466                

Other foreign taxes

                  (652       
 

 

 

    

 

 

    

 

 

    

 

 

 

Total investment income

    46,252        63,677,621        351,480        2,267,541  
 

 

 

    

 

 

    

 

 

    

 

 

 

EXPENSES

          

Investment advisory

    12,036        7,247,908        33,388        823,230  

Commitment costs

                  370        897  

Professional

           114,119                

Interest expense

                  596        2,608  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses

    12,036        7,362,027        34,354        826,735  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    34,216        56,315,594        317,126        1,440,806  
 

 

 

    

 

 

    

 

 

    

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

          

Net realized gain (loss) from:

          

Investments — unaffiliated(a)

    (109,432      (70,288,661      1,402,035        (15,383,457

Investments — affiliated

    6        1,988        146        (216

Foreign currency transactions

    96        124,157        (318      (58,742

Futures contracts

    582        2,021,611        1,540        24,725  

In-kind redemptions — unaffiliated(b)

    (81,407      24,509,219        267,466        5,932,429  
 

 

 

    

 

 

    

 

 

    

 

 

 
    (190,155      (43,631,686      1,670,869        (9,485,261
 

 

 

    

 

 

    

 

 

    

 

 

 

Net change in unrealized appreciation (depreciation) on:

          

Investments — unaffiliated(c)

    39,808        611,428,932        (1,476,791      2,619,471  

Investments — affiliated

           (2,097      50        730  

Foreign currency translations

    (38      76,015        7,419        7,645  

Futures contracts

    62        1,565,951        (125      63,568  
 

 

 

    

 

 

    

 

 

    

 

 

 
    39,832        613,068,801        (1,469,447      2,691,414  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net realized and unrealized gain (loss)

    (150,323      569,437,115        201,422        (6,793,847
 

 

 

    

 

 

    

 

 

    

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

  $ (116,107    $ 625,752,709      $ 518,548      $ (5,353,041
 

 

 

    

 

 

    

 

 

    

 

 

 

(a)   Net of foreign capital gain tax and capital gain tax refund, if applicable of

  $      $      $ (60,809    $ (8,706

(b)   See Note 2 of the Notes to Financial Statements

          

(c)   Net of increase in deferred foreign capital gain tax of

  $      $      $ (95,969    $ (23,075

See notes to financial statements.

 

 

42  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Statements of Operations (unaudited) (continued)

Six Months Ended February 29, 2024

 

   

iShares

MSCI

Water

Management

Multisector

ETF

 

 

 

 

 

 

   

iShares

Paris-Aligned

Climate

MSCI

World ex

USA ETF

 

 

 

 

(a)  

 

 

INVESTMENT INCOME

     

Dividends — unaffiliated

            $ 53,712     $ 11,295  

Dividends — affiliated

      192        

Securities lending income — affiliated — net

      12        

Foreign taxes withheld

      (1,960     (976
   

 

 

   

 

 

 

Total investment income

      51,956       10,319  
   

 

 

   

 

 

 

EXPENSES

     

Investment advisory

      12,936       855  

Interest expense

      72        

Commitment costs

      20        
   

 

 

   

 

 

 

Total expenses

      13,028       855  
   

 

 

   

 

 

 

Net investment income

      38,928       9,464  
   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

     

Net realized gain (loss) from:

     

Investments — unaffiliated(b)

      (16,333     (763

Investments — affiliated

      21        

Foreign currency transactions

      (675     (70

Futures contracts

      (1,311      

Swaps

            122  
   

 

 

   

 

 

 
      (18,298     (711
   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

     

Investments — unaffiliated(c)

      530,442       313,638  

Foreign currency translations

      7       (14

Swaps

            (9
   

 

 

   

 

 

 
      530,449       313,615  
   

 

 

   

 

 

 

Net realized and unrealized gain

      512,151       312,904  
   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ 551,079     $ 322,368  
   

 

 

   

 

 

 

(a)   For the period from January 17, 2024 (commencement of operations) to February 29, 2024

     

(b)   Net of foreign capital gain tax and capital gain tax refund, if applicable of

    $ (111   $  

(c)   Net of increase in deferred foreign capital gain tax of

    $ (3,277   $  

See notes to financial statements.

 

 

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

  43


Statements of Changes in Net Assets

 

    iShares
Emergent Food and AgTech Multisector
ETF
    iShares
ESG Aware MSCI EAFE ETF
 
   

Six Months Ended

02/29/24

(unaudited)

    

Year Ended

08/31/23

   

Six Months Ended

02/29/24

(unaudited)

    

Year Ended

08/31/23

 

 

 

INCREASE (DECREASE) IN NET ASSETS

                      

OPERATIONS

              

Net investment income

    $ 34,216      $ 128,743        $ 56,315,594      $ 207,040,679  

Net realized loss

      (190,155      (237,582        (43,631,686      (90,560,087

Net change in unrealized appreciation (depreciation)

      39,832        (213,614        613,068,801        1,047,683,033  
   

 

 

    

 

 

      

 

 

    

 

 

 

Net increase (decrease) in net assets resulting from operations

      (116,107      (322,453        625,752,709        1,164,163,625  
   

 

 

    

 

 

      

 

 

    

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

              

Decrease in net assets resulting from distributions to shareholders

      (52,019      (121,313        (91,664,404      (168,489,438
   

 

 

    

 

 

      

 

 

    

 

 

 

CAPITAL SHARE TRANSACTIONS

              

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

      (915,219      1,066,423          63,214,489        (111,292,713
   

 

 

    

 

 

      

 

 

    

 

 

 

NET ASSETS

              

Total increase (decrease) in net assets

      (1,083,345      622,657          597,302,794        884,381,474  

Beginning of period

      5,887,906        5,265,249          7,260,643,178        6,376,261,704  
   

 

 

    

 

 

      

 

 

    

 

 

 

End of period

    $ 4,804,561      $ 5,887,906        $ 7,857,945,972      $ 7,260,643,178  
   

 

 

    

 

 

      

 

 

    

 

 

 

 

(a)

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

See notes to financial statements.

 

 

44  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Statements of Changes in Net Assets (continued)

 

    iShares
ESG MSCI EM Leaders ETF
    iShares
MSCI Global Sustainable Development
Goals ETF
 
   

Six Months

Ended

02/29/24

(unaudited)

      

Year Ended

08/31/23

          

Six Months

Ended

02/29/24

(unaudited)

       Year Ended
08/31/23
 

 

 

INCREASE (DECREASE) IN NET ASSETS

                

OPERATIONS

                

Net investment income

  $ 317,126        $ 1,259,362        $ 1,440,806        $ 7,516,583  

Net realized gain (loss)

    1,670,869          (493,948            (9,485,261        (19,075,734

Net change in unrealized appreciation (depreciation)

    (1,469,447        (971,701        2,691,414          21,377,446  
 

 

 

      

 

 

      

 

 

      

 

 

 

Net increase (decrease) in net assets resulting from operations

    518,548          (206,287        (5,353,041        9,818,295  
 

 

 

      

 

 

      

 

 

      

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

                

Decrease in net assets resulting from distributions to shareholders

    (1,066,536        (2,612,115        (3,295,295        (7,206,217
 

 

 

      

 

 

      

 

 

      

 

 

 

CAPITAL SHARE TRANSACTIONS

                

Net decrease in net assets derived from capital share transactions

    (19,820,777        (4,550,261        (64,271,603        (44,320,664
 

 

 

      

 

 

      

 

 

      

 

 

 

NET ASSETS

                

Total decrease in net assets

    (20,368,765        (7,368,663        (72,919,939        (41,708,586

Beginning of period

    53,025,380          60,394,043          374,082,063          415,790,649  
 

 

 

      

 

 

      

 

 

      

 

 

 

End of period

  $ 32,656,615        $ 53,025,380        $ 301,162,124        $ 374,082,063  
 

 

 

      

 

 

      

 

 

      

 

 

 

 

(a)

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

See notes to financial statements.

 

 

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

  45


Statements of Changes in Net Assets (continued)

 

    iShares
MSCI Water Management
Multisector ETF
   

iShares

Paris-Aligned

Climate

MSCI World

ex USA ETF

 
    Six Months       Period From

 

    Ended       Period From          01/17/24 (a)  
    02/29/24          09/20/22 (a)     to 02/29/24

 

    (unaudited)       to 08/31/23     (unaudited)

 

 

 

INCREASE (DECREASE) IN NET ASSETS

           

OPERATIONS

           

Net investment income

  $ 38,928            $ 91,276        $ 9,464  

Net realized gain (loss)

    (18,298        147,987          (711

Net change in unrealized appreciation (depreciation)

    530,449          453,605          313,615  
 

 

 

      

 

 

      

 

 

 

Net increase in net assets resulting from operations

    551,079          692,868          322,368  
 

 

 

      

 

 

      

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(b)

           

Decrease in net assets resulting from distributions to shareholders

    (199,551        (73,383         
 

 

 

      

 

 

      

 

 

 

CAPITAL SHARE TRANSACTIONS

           

Net increase in net assets derived from capital share transactions

             4,982,461          5,882,292  
 

 

 

      

 

 

      

 

 

 

NET ASSETS

           

Total increase in net assets

    351,528          5,601,946          6,204,660  

Beginning of period

    5,601,946                    
 

 

 

      

 

 

      

 

 

 

End of period

  $ 5,953,474        $ 5,601,946        $ 6,204,660  
 

 

 

      

 

 

      

 

 

 

 

(a) 

Commencement of operations.

(b) 

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

See notes to financial statements.

 

 

46  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Emergent Food and AgTech Multisector ETF  
    Six Months Ended       Period From

 

    02/29/24       Year Ended          04/25/22 (a) 
    (unaudited)       08/31/23     to 08/31/22

 

 

 

Net asset value, beginning of period

              $ 19.63            $ 21.06        $ 24.09  
   

 

 

      

 

 

      

 

 

 

Net investment income(b)

      0.12          0.45          0.21  

Net realized and unrealized loss(c)

      (0.32        (1.48        (3.09
   

 

 

      

 

 

      

 

 

 

Net decrease from investment operations

      (0.20        (1.03        (2.88
   

 

 

      

 

 

      

 

 

 

Distributions from net investment income(d)

      (0.21        (0.40        (0.15
   

 

 

      

 

 

      

 

 

 

Net asset value, end of period

    $ 19.22        $ 19.63        $ 21.06  
   

 

 

      

 

 

      

 

 

 

Total Return(e)

             

Based on net asset value

      (1.01 )%(f)         (4.92 )%         (12.00 )%(f) 
   

 

 

      

 

 

      

 

 

 

Ratios to Average Net Assets(g)

             

Total expenses

      0.47 %(h)         0.47        0.47 %(h) 
   

 

 

      

 

 

      

 

 

 

Net investment income

      1.34 %(h)         2.20        2.78 %(h) 
   

 

 

      

 

 

      

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $ 4,805        $ 5,888        $ 5,265  
   

 

 

      

 

 

      

 

 

 

Portfolio turnover rate(i)

      19        18        1
   

 

 

      

 

 

      

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

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

(h) 

Annualized.

(i) 

Portfolio turnover rate excludes in-kind transactions, if any.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

  47


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares ESG Aware MSCI EAFE ETF  
   

Six Months Ended

02/29/24

(unaudited)

   

Year Ended

08/31/23

   

Year Ended

08/31/22

   

Year Ended

08/31/21

   

Year Ended

08/31/20

   

Year Ended

08/31/19

 

 

 

Net asset value, beginning of period

    $ 71.75     $ 62.03     $ 80.85     $ 65.21     $ 62.01            $ 65.51  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

 

Net investment income(a)

      0.56 (b)       2.04       2.07       1.84       1.53          2.12  

Net realized and unrealized gain (loss)(c)

          5.72       9.35       (18.37     15.47       2.85          (3.92
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

 

Net increase (decrease) from investment operations

      6.28       11.39       (16.30     17.31       4.38          (1.80
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

 

Distributions from net investment income(d)

      (0.92     (1.67     (2.52     (1.67     (1.18        (1.70
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

 

Net asset value, end of period

    $ 77.11     $ 71.75     $ 62.03     $ 80.85     $ 65.21        $ 62.01  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

 

Total Return(e)

                

Based on net asset value

      8.84 %(b)(f)       18.42     (20.54 )%      26.69     7.12        (2.68 )% 
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

 

Ratios to Average Net Assets(g)

                

Total expenses

      0.20 %(h)       0.20     0.20     0.20     0.20        0.20
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

      0.20 %(h)       0.20     0.20     N/A       N/A          N/A  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

 

Net investment income

      1.55 %(b)(h)       2.98     2.84     2.45     2.47        3.39
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

 

Supplemental Data

                

Net assets, end of period (000)

    $ 7,857,946     $ 7,260,643     $ 6,376,262     $ 6,694,669     $ 3,025,519        $ 917,780  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

 

Portfolio turnover rate(i)

      12     26     27     25     30        26
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the six months ended February 29, 2024:

• Net investment income per share by $0.01.

• Total return by 0.02%.

• Ratio of net investment income to average net assets by 0.03%.

(c) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

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

(h) 

Annualized.

(i) 

Portfolio turnover rate excludes in-kind transactions, if any.

See notes to financial statements.

 

 

48  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

   

iShares ESG MSCI EM Leaders ETF

 
  Six Months Ended

 

              Period From

 

  02/29/24

 

    Year Ended       Year Ended       Year Ended          02/05/20 (a) 
  (unaudited)

 

    08/31/23       08/31/22       08/31/21     to 08/31/20

 

 

 

Net asset value, beginning of period

         $ 44.19            $ 46.46            $ 63.49            $ 51.84           $ 51.43  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income(b)

      0.33          1.07          0.96          1.01          0.79  

Net realized and unrealized gain (loss)(c)

      0.09          (1.30        (16.79        11.67          (0.03
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net increase (decrease) from investment operations

      0.42          (0.23        (15.83        12.68          0.76  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Distributions(d)

                       

From net investment income

      (1.07        (0.62        (0.90        (1.03        (0.35

From net realized gain

               (1.42        (0.30                  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total distributions

      (1.07        (2.04        (1.20        (1.03        (0.35
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net asset value, end of period

    $ 43.54        $ 44.19        $ 46.46        $ 63.49        $ 51.84  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total Return(e)

                       

Based on net asset value

      1.03 %(f)         (0.48 )%         (25.25 )%(g)         24.68        1.54 %(f)  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Ratios to Average Net Assets(h)

                       

Total expenses

      0.16 %(i)         0.17        0.16        0.16        0.16 %(i)  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income

      1.52 %(i)         2.40        1.60        1.66        3.04 %(i)  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 32,657        $ 53,025        $ 60,394        $ 882,529        $ 647,969  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Portfolio turnover rate(j)

      5        37        17        34        19
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Includes payments received from an affiliate, which impacted the Fund’s total return. Excluding payments, the Fund’s total return would have been-26.07%.

(h) 

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

(i) 

Annualized.

(j) 

Portfolio turnover rate excludes in-kind transactions, if any.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

  49


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Global Sustainable Development Goals ETF  
   

Six Months Ended

02/29/24

(unaudited)

   

Year Ended

08/31/23

   

Year Ended

08/31/22

   

Year Ended

08/31/21

   

Year Ended

08/31/20

   

Year Ended

08/31/19

 

 

 

Net asset value, beginning of period

            $ 78.75            $ 78.45            $ 100.03            $ 81.68            $ 57.03        $ 58.35  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income(a)

      0.33          1.43          1.81          1.12          1.19          1.02  

Net realized and unrealized gain (loss)(b)

      (1.10        0.24          (21.60        18.09          24.32          (1.29
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net increase (decrease) from investment operations

      (0.77        1.67          (19.79        19.21          25.51          (0.27
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Distributions from net investment income(c)

      (0.76        (1.37        (1.79        (0.86        (0.86        (1.05
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net asset value, end of period

    $ 77.22        $ 78.75        $ 78.45        $ 100.03        $ 81.68        $ 57.03  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total Return(d)

                            

Based on net asset value

      (0.96 )%(e)         2.08        (19.93 )%         23.60        45.10        (0.40 )% 
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Ratios to Average Net Assets(f)

                            

Total expenses

      0.49 %(g)          0.49        0.49        0.49        0.49        0.49
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

      N/A          0.49        N/A          N/A          N/A          N/A  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income

      0.86 %(g)          1.82        2.06        1.19        1.82        1.79
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Supplemental Data

                            

Net assets, end of period (000)

    $ 301,162        $ 374,082        $ 415,791        $ 565,145        $ 175,604        $ 54,174  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Portfolio turnover rate(h)

      26        44        54        70        47        43
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

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.

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

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

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions, if any.

See notes to financial statements.

 

 

50  

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Water Management Multisector ETF  
    Six Months Ended       Period From  
    02/29/24         09/20/22 (a) 
    (unaudited)       to 08/31/23  

 

 

Net asset value, beginning of period

              $ 28.01               $ 24.91  
   

 

 

     

 

 

 

Net investment income(b)

      0.19         0.46  

Net realized and unrealized gain(c)

      2.57         3.01  
   

 

 

     

 

 

 

Net increase from investment operations

      2.76         3.47  
   

 

 

     

 

 

 

Distributions(d)

       

From net investment income

      (0.23       (0.37

From net realized gain

      (0.77        
   

 

 

     

 

 

 

Total distributions

      (1.00       (0.37
   

 

 

     

 

 

 

Net asset value, end of period

    $ 29.77       $ 28.01  
   

 

 

     

 

 

 

Total Return(e)

       

Based on net asset value

      10.07 %(f)        13.91 %(f) 
   

 

 

     

 

 

 

Ratios to Average Net Assets(g)

       

Total expenses

      0.47 %(h)        0.47 %(h)  
   

 

 

     

 

 

 

Net investment income

      1.41 %(h)        1.77 %(h)  
   

 

 

     

 

 

 

Supplemental Data

       

Net assets, end of period (000)

    $ 5,953       $ 5,602  
   

 

 

     

 

 

 

Portfolio turnover rate(i)

      20       51
   

 

 

     

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

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

(h) 

Annualized.

(i) 

Portfolio turnover rate excludes in-kind transactions, if any.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

  51


Financial Highlights (continued)

(For a share outstanding throughout the period)

 

   

iShares

Paris-Aligned

Climate

MSCI World

 ex USA ETF

 
    Period From  
                01/17/24 (a) 
    to 02/29/24  
    (unaudited)  

 

 

Net asset value, beginning of period

    $ 49.02  
   

 

 

 

Net investment income(b)

      0.08  

Net realized and unrealized gain(c)

      2.61  
   

 

 

 

Net increase from investment operations

      2.69  
   

 

 

 

Net asset value, end of period

    $ 51.71  
   

 

 

 

Total Return(d)

   

Based on net asset value

      5.48 %(e)  
   

 

 

 

Ratios to Average Net Assets(f)

   

Total expenses

      0.12 %(g)  
   

 

 

 

Net investment income

      1.30 %(g)  
   

 

 

 

Supplemental Data

   

Net assets, end of period (000)

    $ 6,205  
   

 

 

 

Portfolio turnover rate(h)

      0 %(i)  
   

 

 

 

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

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

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions, if any.

(i) 

Rounds to less than 1%.

See notes to financial statements.

 

 

52  

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Notes to Financial Statements (unaudited)

 

1.

ORGANIZATION

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.

These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):

 

   
iShares ETF  

Diversification 

Classification 

Emergent Food and AgTech Multisector

  Non-diversified 

ESG Aware MSCI EAFE

  Diversified 

ESG MSCI EM Leaders

  Diversified 

MSCI Global Sustainable Development Goals

  Diversified 

MSCI Water Management Multisector

  Non-diversified 

Paris-Aligned Climate MSCI World ex USA(a)

  Diversified 

 

  (a) 

The Fund commenced operations on January 17, 2024.

 

 

2.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. 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 Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Foreign Taxes: The Funds 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 each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements 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 dividends 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 February 29, 2024, if any, are disclosed in the Statements of Assets and Liabilities.

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations includes 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 Funds 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 or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

 

 

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

  53


Notes to Financial Statements (unaudited) (continued)

 

Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, as the valuation designee for each Fund. Each 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.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each 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.

 

   

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

 

   

Swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

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 each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the 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 each Fund has the ability to access;

 

   

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and

 

   

Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the 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

 

 

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Notes to Financial Statements (unaudited) (continued)

 

inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by 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 each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:

 

 

 
iShares ETF and Counterparty    

Securities Loaned

at Value

 

 

    

Cash Collateral

Received

 

(a)  

   

Non-Cash Collateral

Received, at Fair Value

 

(a) 

    Net Amount  

 

 

Emergent Food and AgTech Multisector

        

BofA Securities, Inc.

  $ 212,575      $ (212,575   $     $  
 

 

 

    

 

 

   

 

 

   

 

 

 

ESG Aware MSCI EAFE

        

Citigroup Global Markets, Inc.

  $ 33,163      $ (33,163   $     $  

Goldman Sachs & Co. LLC

    944,978        (944,978            

J.P. Morgan Securities LLC

    2,119,989        (2,119,989            

Morgan Stanley

    10,362,831        (10,362,831            

SG Americas Securities LLC

    1,559,050        (1,559,050            

State Street Bank & Trust Co.

    391,258        (391,258            
 

 

 

    

 

 

   

 

 

   

 

 

 
  $ 15,411,269      $ (15,411,269   $     $  
 

 

 

    

 

 

   

 

 

   

 

 

 

ESG MSCI EM Leaders

        

BofA Securities, Inc.

  $ 21,752      $ (21,752   $     $  

HSBC Bank PLC

    95,859        (95,859            

Morgan Stanley

    144,023        (144,023            
 

 

 

    

 

 

   

 

 

   

 

 

 
  $ 261,634      $ (261,634   $     $  
 

 

 

    

 

 

   

 

 

   

 

 

 

MSCI Global Sustainable Development Goals

        

BNP Paribas SA

  $ 564,886      $ (564,667   $     $ 219 (b)  

Goldman Sachs & Co. LLC

    957,333        (957,333            

J.P. Morgan Securities LLC

    231,709        (231,709            

Jefferies LLC

    84,148        (84,148            

Morgan Stanley

    3,602,849        (3,602,849            

Wells Fargo Securities LLC

    92,056        (92,056            
 

 

 

    

 

 

   

 

 

   

 

 

 
  $ 5,532,981      $ (5,532,762   $     $ 219  
 

 

 

    

 

 

   

 

 

   

 

 

 

 

  (a) 

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 each Fund is disclosed in the Fund’s Statements of Assets and Liabilities.

 

 

 

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Notes to Financial Statements (unaudited) (continued)

 

  (b) 

The market value of the loaned securities is determined as of February 29, 2024. 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 a 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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

Swaps: Swap contracts are entered into to manage exposure to issuers, markets and securities. Such contracts are agreements between the Funds and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”).

For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statements of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC Swaps in the Statements of Assets and Liabilities. Payments received or paid are recorded in the Statements of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Funds’ basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.

Total return swaps are entered into by the iShares Paris-Aligned Climate MSCI World ex USA ETF to obtain exposure to a security or market without owning such security or investing directly in such market or to exchange the risk/return of one security or market (e.g., fixed-income) with another security or market (e.g., equity or commodity prices) (equity risk, commodity price risk and/or interest rate risk).

Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (distributions plus capital gains/losses) of an underlying instrument, or basket or underlying instruments, in exchange for fixed or floating rate interest payments. If the total return of the instruments or index underlying the transaction exceeds or falls short of the offsetting fixed or floating interest rate obligation, the Fund receives payment from or makes a payment to the counterparty.

Certain total return swaps are designed to function as a portfolio of direct investments in long and short equity positions. This means that the Fund has the ability to trade in and out of these long and short positions within the swap and will receive the economic benefits and risks equivalent to direct investment in these positions, subject to certain adjustments due to events related to the counterparty. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid, all of which are reflected in the swap’s market value. The market value also includes interest charges and credits (“financing fees”) related to the notional values of the long and short positions and cash balances within the swap. These interest charges and credits are based on a specified benchmark rate plus or minus a specified spread determined based upon the country and/or currency of the positions in the portfolio.

Positions within the swap and financing fees are reset periodically. During a reset, any unrealized appreciation (depreciation) on positions and accrued financing fees become available for cash settlement between the Fund and the counterparty. The amounts that are available for cash settlement are recorded as realized gains or losses in the Statements of Operations. Cash settlement in and out of the swap may occur at a reset date or any other date, at the discretion of the Fund and the counterparty, over the life of the agreement. Certain swaps have no stated expiration and can be terminated by either party at any time.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risks in excess of the amounts recognized in the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency, or other events.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by a fund and the counterparty.

Cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately in the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Funds, if any, is noted in the Schedules of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Funds. Any additional required collateral is delivered to/pledged by the Funds on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. A fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Funds from the counterparty are not fully collateralized, each Fund bears the risk of loss from counterparty non-performance. Likewise, to the extent the Funds have delivered collateral to a counterparty and stand ready to perform under the terms of their agreement with such counterparty, each Fund bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.

For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statements of Assets and Liabilities.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).

For its investment advisory services to each of the following Funds, BFAis entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:

 

   
iShares ETF   Investment Advisory Fees  

Emergent Food and AgTech Multisector

    0.47

ESG Aware MSCI EAFE

    0.20  

ESG MSCI EM Leaders

    0.16  

MSCI Global Sustainable Development Goals

    0.49  

MSCI Water Management Multisector

    0.47  

Paris-Aligned Climate MSCI World ex USA

    0.12  

Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

 

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

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Notes to Financial Statements (unaudited) (continued)

 

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the six months ended February 29, 2024, the Funds paid BTC the following amounts for securities lending agent services:

 

   
iShares ETF   Amounts  

Emergent Food and AgTech Multisector

  $ 20   

ESG Aware MSCI EAFE

    4,961  

ESG MSCI EM Leaders

    489  

MSCI Global Sustainable Development Goals

    7,620  

MSCI Water Management Multisector

    2  

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

Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the six months ended February 29, 2024, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

       
iShares ETF   Purchases      Sales     

Net Realized 

Gain (Loss)

 

ESG Aware MSCI EAFE

  $  259,679,293      $  359,941,483      $ (21,111,628

ESG MSCI EM Leaders

    482,838        136,343        (31,891

MSCI Global Sustainable Development Goals

    19,577,591        29,261,635        (3,010,584

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the Statements of Operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

 

7.

PURCHASES AND SALES

For the six months ended February 29, 2024, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:

 

     
iShares ETF   Purchases      Sales  

Emergent Food and AgTech Multisector

  $ 1,002,245      $ 1,009,032   

ESG Aware MSCI EAFE

     974,546,380         908,035,092  

ESG MSCI EM Leaders

    2,011,703        14,294,335  

MSCI Global Sustainable Development Goals

    88,413,649        95,121,087  

MSCI Water Management Multisector

    1,131,019        1,295,077  

Paris-Aligned Climate MSCI World ex USA

    9,497        55,355  

For the six months ended February 29, 2024, in-kind transactions were as follows:

 

     
iShares ETF  

In-kind

Purchases

    

In-kind

Sales

 

Emergent Food and AgTech Multisector

  $      $ 909,890   

ESG Aware MSCI EAFE

     67,301,606         92,836,224  

ESG MSCI EM Leaders

           8,296,417  

MSCI Global Sustainable Development Goals

           57,020,148  

Paris-Aligned Climate MSCI World ex USA

    5,870,283         

 

8.

INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

 

 

58  

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Notes to Financial Statements (unaudited) (continued)

 

Management has analyzed tax laws and regulations and their application to the Funds as of February 29, 2024, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of August 31, 2023, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

   
iShares ETF  

Non-Expiring

Capital Loss

Carryforwards

 

Emergent Food and AgTech Multisector

  $ (220,484 )  

ESG Aware MSCI EAFE

     (566,529,694

ESG MSCI EM Leaders

    (2,182,392

MSCI Global Sustainable Development Goals

    (57,913,571

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 February 29, 2024, 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

Appreciation

    

Gross Unrealized

Depreciation

   

Net Unrealized

Appreciation

(Depreciation)

 

Emergent Food and AgTech Multisector

  $ 5,976,148      $ 128,410      $ (1,106,859   $ (978,449

ESG Aware MSCI EAFE

     6,623,907,609        1,594,897,470        (383,138,228      1,211,759,242  

ESG MSCI EM Leaders

    34,269,365        6,523,603        (7,990,783     (1,467,180

MSCI Global Sustainable Development Goals

    333,767,284        23,750,365        (51,162,085     (27,411,720

MSCI Water Management Multisector

    4,942,142        1,152,425        (165,642     986,783   

Paris-Aligned Climate MSCI World ex USA

    5,823,902        436,160        (122,531     313,629  

 

9.

LINE OF CREDIT

The iShares ESG MSCI EM Leaders ETF, iShares MSCI Global Sustainable Development Goals ETF and iShares MSCI Water Management Multisector ETF, along with certain other iShares funds (“Participating Funds”), are parties to a $800 million credit agreement (“Syndicated Credit Agreement”) with a group of lenders, which expires on October 16, 2024. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Syndicated Credit Agreement. The Syndicated Credit Agreement has the following terms: a commitment fee of 0.15% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) Daily Simple Secured Overnight Financing Rate (“SOFR”) plus 0.10% and 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Syndicated Credit Agreement.

For the six months ended February 29, 2024, the maximum amount borrowed, the average daily borrowing and the weighted average interest rate, if any, under the Syndicated Credit Agreement were as follows:

 

       
iShares ETF  

Maximum

Amount

Borrowed

    

Average

Borrowing

    

Weighted

Average

Interest Rates

 

ESG MSCI EM Leaders

  $  370,000      $ 18,330        6.44

MSCI Global Sustainable Development Goals

    150,000        2,736        6.42  

MSCI Water Management Multisector

    100,000        2,198        6.47   

 

10.

PRINCIPAL RISKS

In the normal course of business, each 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 Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

BFA uses an indexing approach to try to achieve each Fund’s investment objective. The Fund is not actively managed, and BFA generally does not attempt to take defensive positions under any market conditions, including declining markets.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

The Funds 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.

Market Risk: Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain additional risks that do not generally apply to investments in securities of issuers in more developed capital markets, such as (i) low or nonexistent trading volume, resulting in a lack of liquidity and increased volatility in prices for such securities; (ii) lack of reliable settlement procedures and significant delays in registereing the transfer of securities; (iii) uncertain national policies and social, political and economic instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iv) lack of publicly available or reliable information about issuers as a result of not being subject to the same degree of regulatory requirements and accounting, auditing and financial reporting standards; and (v) possible fluctuations in exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial restrictions or other foreign or U.S. governmental laws or restrictions applicable to such investments.

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 each Fund could receive upon the sale of any particular portfolio investment may differ from each 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 may significantly impact the resulting fair value and therefore each Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by each Fund, and each Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. Each Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.

Counterparty Credit Risk: The Funds 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 Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Geographic/Asset Class 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 each Fund’s portfolio are disclosed in its Schedule of Investments.

Certain Funds invest a significant portion of their assets in issuers located in a single country or a limited number of countries. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Unanticipated or sudden political or social developments may cause uncertainty in the markets and as a result adversely affect the Fund’s investments. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be more volatile and less liquid than U.S. securities and may be less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the Schedule of Investments.

The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries

 

 

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Notes to Financial Statements (unaudited) (continued)

 

deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the the Funds invest.

Certain Funds invest a significant portion of their assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries as well as acts of war in the region. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Funds’ investments.

Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. The United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. These events and actions have adversely affected, and may in the future adversely affect, the value and exchange rate of the Euro and may continue to significantly affect the economies of every country in Europe, including countries that do not use the Euro and non-European Union member states. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching. In addition, Russia launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting future market disruptions in the region are impossible to predict, but have been, and may continue to be, significant and have a severe adverse effect on the region, including significant negative impacts on the economy and the markets for certain securities and commodities, such as oil and natural gas, as well as other sectors.

Certain Funds invest a significant portion of their assets in securities of issuers located in China or with significant exposure to Chinese issuers. Investments in Chinese securities, including certain Hong Kong-listed securities, involve risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and a fund’s investments. Reduction in spending on Chinese products and services, supply chain diversification, institution of tariffs, sanctions or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. In addition, measures may be taken to limit the flow of capital and/or sanctions may be imposed, which could prohibit or restrict the ability to own or transfer fund assets and may also include retaliatory actions, such as seizure of fund assets.

Certain Funds invest a significant portion of their assets in securities of issuers located in Asia or with significant exposure to Asian issuers or countries. The Asian financial markets have recently experienced volatility and adverse trends due to concerns in several Asian countries regarding monetary policy, government intervention in the markets, rising government debt levels or economic downturns. These events may spread to other countries in Asia and may affect the value and liquidity of certain of the Funds’ investments.

Certain Funds invest a significant portion of their 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.

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.

 

11.

CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each 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 each Fund are not redeemable.

Transactions in capital shares were as follows:

 

 

 
    Six Months Ended
02/29/24
       Year Ended
08/31/23
 
iShares ETF   Shares        Amount        Shares        Amount  

 

 

Emergent Food and AgTech Multisector

                

Shares sold

           $          50,000        $ 1,066,423  

Shares redeemed

    (50,000        (915,219                  
 

 

 

      

 

 

      

 

 

      

 

 

 
    (50,000      $ (915,219        50,000        $ 1,066,423  
 

 

 

      

 

 

      

 

 

      

 

 

 

ESG Aware MSCI EAFE

                

Shares sold

    2,100,000        $  156,448,250          3,100,000        $  217,263,238  

Shares redeemed

    (1,400,000        (93,233,761        (4,700,000        (328,555,951
 

 

 

      

 

 

      

 

 

      

 

 

 
    700,000        $ 63,214,489          (1,600,000      $ (111,292,713
 

 

 

      

 

 

      

 

 

      

 

 

 

 

 

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

  61


Notes to Financial Statements (unaudited) (continued)

 

 

 
    Six Months Ended
02/29/24
       Year Ended
08/31/23
 
iShares ETF   Shares        Amount        Shares        Amount  

 

 

ESG MSCI EM Leaders

                

Shares sold

           $ 30,551          200,000        $ 8,952,435  

Shares redeemed

    (450,000        (19,851,328        (300,000        (13,502,696
 

 

 

      

 

 

      

 

 

      

 

 

 
    (450,000      $ (19,820,777        (100,000      $ (4,550,261
 

 

 

      

 

 

      

 

 

      

 

 

 

MSCI Global Sustainable Development Goals

                

Shares sold

           $ 24,501          250,000        $ 18,922,112  

Shares redeemed

      (850,000        (64,296,104        (800,000        (63,242,776
 

 

 

      

 

 

      

 

 

      

 

 

 
    (850,000      $  (64,271,603          (550,000      $  (44,320,664
 

 

 

      

 

 

      

 

 

      

 

 

 

 

 

 
    Six Months Ended
02/29/24
     Period Ended
08/31/23
 
iShares ETF   Shares      Amount      Shares      Amount  

 

 

MSCI Water Management Multisector(a)

          

Shares sold

         $        200,000      $ 4,982,461  
 

 

 

    

 

 

    

 

 

    

 

 

 
          

 

 
                  Period Ended
02/29/24
 
iShares ETF                 Shares      Amount  

 

 

Paris-Aligned Climate MSCI World ex USA(b)

          

Shares sold

          120,000      $ 5,882,292  
       

 

 

    

 

 

 

 

  (a) 

The Fund commenced operations on September 20, 2022.

 
  (b) 

The Fund commenced operations on January 17, 2024.

 

The consideration for 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. Authorized Participants purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator , to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Authorized Participants 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 shares 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 Statements of Assets and Liabilities.

 

12.

FOREIGN WITHHOLDING TAX CLAIMS

The Internal Revenue Service (“IRS”) has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior calendar years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid which the iShares ESG Aware MSCI EAFE ETF is able to pass through to its shareholders as a foreign tax credit in the current year, the Fund will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Funds.

 

13.

SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds 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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Board Review and Approval of Investment Advisory Contract

 

iShares Paris-Aligned Climate MSCI World ex USA ETF (each the “Fund”)

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members”), is required to consider the approval of the proposed Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) on behalf of the Fund. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the terms of the proposed Advisory Agreement. At a meeting held on December 12-14, 2023, the Board, including the Independent Board Members, approved the selection of BFA as investment adviser and approved the proposed Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA. The Board also considered information previously provided by BFA, BlackRock Institutional Trust Company, N.A. (“BTC”), and BlackRock, Inc. (“BlackRock”), as applicable, at prior Board meetings. The Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses of the Fund; (ii) the nature, extent and quality of the services to be provided by BFA; (iii) the costs of services to be provided to the Fund and the availability of information related to profits to be realized by BFA and its affiliates; (iv) potential economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the Advisory Agreement are discussed below.

Expenses of the Fund: The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components of the Fund in comparison with the same information for other ETFs, objectively selected by Broadridge as comprising the Fund’s applicable expense peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

The Board also noted that the investment advisory fee rate and overall expenses (net of any waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of any waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and expense level of the Fund supported the Board’s approval of the Advisory Agreement

Nature, Extent and Quality of Services to be Provided by BFA: The Board reviewed the scope of services to be provided by BFA under the Advisory Agreement. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time and have made significant investments into the iShares business to support the iShares funds and their shareholders. The Board considered representations by BFA, BTC, and BlackRock that the scope and quality of services to be provided to the Fund would be similar to the scope and quality of services provided to other iShares funds. The Board also considered BFA’s compliance program and its compliance record with respect to other iShares funds including related programs implemented pursuant to regulatory requirements. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons who will be responsible for the day-to-day management of the Fund, as well as the resources that will be available to them in managing the Fund. The Board also considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies, which were provided throughout the year with respect to other iShares funds, and other matters related to BFA’s portfolio compliance program and other compliance programs and services.

Based on review of this information, the Board concluded that the nature, extent and quality of services to be provided to the Fund under the Advisory Agreement supported the Board’s approval of the Advisory Agreement.

Costs of Services to be Provided to the Fund and Profits to be Realized by BFA and Affiliates: The Board did not consider the profitability of the Fund to BFA based on the fees payable under the Advisory Agreement or revenue to be received by BFA or its affiliates in connection with services to be provided to the Fund since the proposed relationship had not yet commenced. The Board noted that it expects to receive profitability information from BFA periodically following the Fund’s launch and will thus be in a position to evaluate whether any new or additional breakpoints or other adjustments in Fund fees would be appropriate.

Economies of Scale: The Board considered information that it had previously received regarding potential economies of scale, efficiencies and scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Agreement for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.

This consideration of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the Advisory Agreement.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board

 

 

B O A R D  R E V I E WA N D  A P P R O V A LO F  I N V E S T M E N T  A D V I S O R Y  C O N T R A C T

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Board Review and Approval of Investment Advisory Contract (continued)

 

noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA previously provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the iShares funds, including in terms of the different and generally more extensive services provided to the iShares funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement.

Other Benefits to BFA and/or its Affiliates: Except as noted below, the Board did not consider the “fallout” benefits or ancillary revenue to be received by BFA and/or its affiliates in connection with the services to be provided to the Fund by BFA since the proposed relationship had not yet commenced. However, the Board considered the potential payment of advisory fees and/or administration fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board further considered other direct benefits that might accrue to BFA, including the potential for reduction in the Fund’s expenses that are borne by BFA under the “all-inclusive” management fee arrangement, due in part to the size and scope of BFA’s investment operations servicing the Fund (and other funds in the iShares complex) as well as in response to a changing market environment. The Board also noted the potential revenue to be received by BFA and/or its affiliates pursuant to an agreement that would permit a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board also considered the potential for revenue to BTC, the Fund’s securities lending agent, and its affiliates in the event of any loaning of portfolio securities of the Fund. The Board also reviewed and considered information provided by BFA concerning authorized participant primary market order processing services that will be provided by BlackRock Investments, LLC (“BRIL”), an affiliate of BFA, and paid for by authorized participants under the ETF Servicing Platform. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the Advisory Agreement.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services to be rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the Advisory Agreement.

 

 

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Statement Regarding Liquidity Risk Management Program (unaudited)

 

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 Emergent Food and AgTech Multisector ETF, iShares ESG Aware MSCI EAFE ETF, iShares ESG MSCI EM Leaders ETF, iShares MSCI Global Sustainable Development Goals ETF and iShares MSCI Water Management Multisector ETF (the “Funds” or “ETFs”), each a series of the Trust, which is reasonably designed to assess and manage each Fund’s liquidity risk.

The Board of Trustees (the “Board”) of the Trust, on behalf of the Funds, met on December 8, 2023 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program. BlackRock also previously delegated oversight of the Program to the 40Act 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 each 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, 2022 through September 30, 2023 (the “Program Reporting Period”).

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

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

 

  a)

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 each 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.

 

  b)

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 utilized for liquidity classifications. 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.

 

  c)

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.

 

  d)

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.

 

  e)

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 ETFs for which the custom baskets accepted by the ETF had a significant change in its liquidity profile.

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.

 

 

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

  65


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 each 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.

February 29, 2024

 

       
    Total Cumulative Distributions
for the Fiscal  Year-to-Date
          % Breakdown of the Total Cumulative
Distributions  for the Fiscal Year-to-Date
 
iShares ETF  

Net

Investment

Income

   

Net Realized

Capital Gains

   

Return of

Capital

   

Total Per

Share

          

Net

Investment

Income

   

Net Realized

Capital Gains

   

Return of

Capital

   

Total Per

Share

 

MSCI Water Management Multisector

  $ 0.224515     $ 0.773240     $     $ 0.997755               23     77         100

Tailored Shareholder Reports for Open-End Mutual Funds and ETFs

Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.

 

 

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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

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 Funds file their 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, each 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.

 

 

G E N E R A L  I N F O R M A T I O N

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Glossary of Terms Used in this Report

 

Portfolio Abbreviation
ADR    American Depositary Receipt
JSC    Joint Stock Company
NVDR    Non-Voting Depositary Receipt
NVS    Non-Voting Shares
PJSC    Public Joint Stock Company
REIT    Real Estate Investment Trust

 

 

68  

2 0 2 4 I S H A R E S  S E M I - A N N U A L  R E P O R TT O  S H A R E H O L D E R S


 

 

 

Want to know more?

iShares.com  |  1-800-474-2737

This report is intended for the Funds’ 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 Morningstar Inc. or MSCI Inc., nor do these companies make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

©2024 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-SAR-817-0224

 

 

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