Table of Contents

 

LOGO

  AUGUST 31, 2022

 

   

  

2022 Annual Report

 

 

iShares Trust

· iShares MSCI Denmark ETF | EDEN | Cboe BZX

· iShares MSCI Finland ETF | EFNL | Cboe BZX

· iShares MSCI Germany Small-Cap ETF | EWGS | Cboe BZX

· iShares MSCI Ireland ETF | EIRL | NYSE Arca

· iShares MSCI Kuwait ETF | KWT | Cboe BZX

· iShares MSCI New Zealand ETF | ENZL | NASDAQ

· iShares MSCI Norway ETF | ENOR | Cboe BZX


Table of Contents

The Markets in Review

Dear Shareholder,

The 12-month reporting period as of August 31, 2022 saw the emergence of significant challenges that disrupted the economic recovery and strong financial markets of 2021. The U.S. economy shrank in the first half of 2022, ending the run of robust growth that followed the reopening of global economies and the development of COVID-19 vaccines. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the ongoing war continued to present challenges for both investors and policymakers.

Equity prices fell as interest rates rose, particularly weighing on relatively high-valuation growth stocks and economically sensitive small-capitalization stocks. While both large- and small-capitalization U.S. stocks fell, declines for small-capitalization U.S. stocks were steeper. Both emerging market stocks and international equities from developed markets fell significantly, pressured by rising interest rates and a strengthening U.S. dollar.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose notably during the reporting period as investors reacted to higher inflation and attempted to anticipate its impact on future interest rate changes. The corporate bond market also faced inflationary headwinds, and increasing uncertainty led to higher corporate bond spreads (the difference in yield between U.S. Treasuries and similarly-dated corporate bonds).

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is growing faster than expected, raised interest rates four times while indicating that additional rate hikes were likely. Furthermore, the Fed wound down its bond-buying programs and began to reduce its balance sheet. As investors attempted to assess the Fed’s future trajectory, the Fed’s statements late in the reporting period led markets to believe that additional tightening is likely in the near term.

The horrific war in Ukraine has significantly clouded the outlook for the global economy, leading to major volatility in energy and metals markets. Sanctions on Russia, Europe’s top energy supplier, and general wartime disruption have magnified supply problems for key commodities. We believe elevated energy prices will continue to exacerbate inflationary pressure while also constraining economic growth. Combating inflation without stifling a recovery, while buffering against ongoing supply and price shocks, will be an especially challenging environment for setting effective monetary policy. Despite the likelihood of more rate increases on the horizon, we believe the Fed will ultimately err on the side of protecting employment, even at the expense of higher inflation. In the meantime, however, we are likely to see a period of slowing growth paired with relatively high inflation.

In this environment, while we favor an overweight to equities in the long-term, the market’s concerns over excessive rate hikes from central banks moderate our outlook. Furthermore, the energy shock and a deteriorating economic backdrop in China and Europe are likely to challenge corporate earnings, so we are underweight equities overall in the near term. We take the opposite view on credit, where higher spreads provide near-term opportunities, while the likelihood of higher inflation leads us to take an underweight stance on credit in the long term. We believe that investment-grade corporates, U.K. gilts, local-currency emerging market debt, and inflation-protected bonds (particularly in Europe) offer strong opportunities for a six- to twelve-month horizon.

Overall, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of August 31, 2022
     
     6-Month      12-Month   
   

U.S. large cap equities

(S&P 500® Index)

  (8.84)%   (11.23)%
   

U.S. small cap equities

(Russell 2000® Index)

  (9.31)      (17.88)   
   

International equities

(MSCI Europe, Australasia, Far East Index)

  (13.97)      (19.80)   
   

Emerging market equities

(MSCI Emerging Markets Index)

  (13.30)      (21.80)   
   

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

  0.36       0.39    
   

U.S. Treasury securities

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

  (9.71)      (13.27)   
   

U.S. investment grade bonds

(Bloomberg U.S. Aggregate Bond Index)

  (7.76)      (11.52)   
   

Tax-exempt municipal bonds

(Bloomberg Municipal Bond Index)

  (5.72)      (8.63)   
   

U.S. high yield bonds

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

  (7.78)      (10.61)   
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  

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


Table of Contents

Table of Contents

 

      Page

The Markets in Review

   2

Annual Report:

  

Market Overview

   4

Fund Summary

   5

About Fund Performance

   19

Disclosure of Expenses

   19

Schedules of Investments

   20

Financial Statements

  

Statements of Assets and Liabilities

   39

Statements of Operations

   41

Statements of Changes in Net Assets

   43

Financial Highlights

   47

Notes to Financial Statements

   54

Report of Independent Registered Public Accounting Firm

   65

Important Tax Information

   66

Board Review and Approval of Investment Advisory Contract

   67

Supplemental Information

   77

Trustee and Officer Information

   78

General Information

   81

Glossary of Terms Used in this Report

   82

 

 

 

 


Table of Contents

Market Overview

 

iShares Trust

Global Market Overview

Global equity markets declined in U.S. dollar terms during the 12 months ended August 31, 2022 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned -15.88% in U.S. dollar terms for the reporting period.

For the first third of the reporting period, economic recovery supported stocks in most regions of the world. The global economy continued to rebound from the impact of restrictions imposed at the beginning of the coronavirus pandemic, as mitigation and adaptation allowed most economic activity to continue. However, substantial challenges emerged at the beginning of 2022 which negatively affected stock prices. Inflation rose significantly in many countries, reducing consumers’ purchasing power and leading many central banks to tighten monetary policy. Russia’s invasion of Ukraine presented a further challenge to the global economy, disrupting important commodities markets.

The U.S. economy grew briskly over the final half of 2021, powered primarily by consumer spending. Record-high personal savings rates allowed consumers to spend at an elevated level, releasing pent-up demand for goods and services. Growth subsequently stalled in the first half of 2022, and the economy contracted amid lower inventories and faltering business investment. Despite the economic downturn, unemployment declined substantially, falling to 3.7% in August 2022 while the number of long-term unemployed dropped below the pre-pandemic level. Although high inflation negatively impacted consumer sentiment, which declined significantly, consumer spending continued to grow.

Rising inflation led to a shift in policy from the U.S. Federal Reserve (“the Fed”). As the reporting period began, the Fed was using accommodative monetary policy to stimulate the economy. Short-term interest rates were kept at near-zero levels, and the Fed used bond-buying programs to stabilize debt markets. However, rising prices led the Fed to tighten monetary policy during the reporting period in an attempt to prevent runaway inflation. The Fed slowed and then ended its bond-buying activities, finally reversing course as it began to reduce its balance sheet in June 2022. In March 2022, the Fed began to raise short-term interest rates, followed by three more increases for a total increase of 225 basis points, the most rapid rise in decades. Interest rates rose significantly in response, leading to higher borrowing costs for businesses. In that environment, the U.S. dollar significantly appreciated relative to most foreign currencies.

Stocks declined in Europe in U.S. dollar terms as economic growth stalled and the euro declined sharply relative to the U.S. dollar. Significantly higher inflation and Russia’s invasion of Ukraine negatively impacted equities. Russia is an important trading partner with many European countries, and new sanctions imposed limits on certain types of trade with Russia. Investors became concerned that the sharp rise in energy prices during the reporting period would constrain economic growth, as Europe relies on imported energy for much of its industrial and heating needs. The European Central Bank (“ECB”) responded to elevated inflation by raising interest rates in July 2022, the first such increase in over a decade.

Despite relatively low inflation by global standards, Asia-Pacific stocks declined significantly in U.S. dollar terms. Chinese stocks faced significant headwinds amid regulatory interventions by the Chinese government and strict lockdowns following COVID-19 outbreaks. Japanese stocks also declined amid an economic contraction in the first quarter of 2022 and a sharp decline in the Japanese yen relative to the U.S. dollar. Emerging market stocks declined substantially, as higher interest rates and a strengthening U.S. dollar raised the cost of borrowing in many emerging economies.

 

 

4  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents
Fund Summary as of August 31, 2022    iShares® MSCI Denmark ETF

 

Investment Objective

The iShares MSCI Denmark ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Danish equities, as represented by the MSCI Denmark IMI 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (24.07 )%      6.66     12.94             (24.07 )%      38.07     237.66

Fund Market

    (24.10     6.59       12.99          (24.10     37.60       239.06  

Index

    (23.44     7.04       13.28            (23.44     40.52       247.96  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

          

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $       1,000.00          $        883.10          $         2.52           $       1,000.00          $       1,022.50          $         2.70          0.53

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  5


Table of Contents
Fund Summary as of August 31, 2022  (continued)    iShares® MSCI Denmark ETF

 

Portfolio Management Commentary

Stocks in Denmark declined significantly for the reporting period. Economic output slowed considerably in the first half of 2022 amid production constraints, rising inflation, and weaker consumer demand. However, a strengthening labor market helped stabilize the economy. Denmark’s stock market, which consists mainly of higher-valuation growth stocks, fell as cautious investors favored lower-valuation stocks. The declining value of the Danish krone relative to the U.S. dollar also diminished the value of Danish stocks in U.S. dollar terms.

The industrials sector detracted the most from the Index’s return. As interest rates rose, investors grew more concerned about the prospect of a global economic downturn, which weighed on Denmark’s air freight and logistics industry. Global rates for shipping freight steadily decreased from previous record highs amid weakened demand and expected increases in global shipping capacity. The electrical equipment industry also declined, as a large wind turbine manufacturer encountered rising raw material costs and supply chain disruptions, exacerbated by the war in Ukraine, even as that conflict boosted demand for non-fossil fuel energy alternatives. Profit margins fell as the company could not raise prices quickly enough to compensate.

The healthcare sector also detracted significantly from the Index’s return, driven by healthcare equipment and supplies companies. Supply chain issues led to considerable trouble securing production components, which pressured industry earnings despite strong demand for products such as hearing aids. Coronavirus pandemic-related shutdowns in China exacerbated supply problems and reduced demand for wound care products. The utilities sector also detracted as the electric utilities industry faced some of the lowest average wind speeds in decades in its European wind power projects, which forced customers to rely on other sources for power generation.

Portfolio Information

 

SECTOR ALLOCATION  
   
Sector    

Percent of

Total Investments

 

(a) 

Health Care

    42.0

Industrials

    25.6  

Financials

    10.7  

Consumer Staples

    6.2  

Materials

    5.2  

Utilities

    4.3  

Information Technology

    2.5  

Consumer Discretionary

    2.1  

Energy

    1.4  

 

  (a) 

Excludes money market funds.

 
TEN LARGEST HOLDINGS  
   
Security    

Percent of

Total Investments

 

(a) 

Novo Nordisk A/S, Class B

    24.1

DSV A/S

    7.7  

Vestas Wind Systems A/S

    6.7  

Genmab A/S

    6.2  

Orsted A/S

    4.3  

Coloplast A/S, Class B

    3.7  

Carlsberg A/S, Class B

    3.7  

Novozymes A/S, Class B

    3.3  

AP Moller - Maersk A/S, Class B

    2.7  

Danske Bank A/S

    2.7  

 

 

6  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents
Fund Summary as of August 31, 2022     iShares® MSCI Finland ETF

 

Investment Objective

The iShares MSCI Finland ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Finnish equities, as represented by the MSCI Finland IMI 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (28.85 )%      1.45     8.26        (28.85 )%      7.49     121.24

Fund Market

    (28.84     1.44       8.28          (28.84     7.42       121.47  

Index

    (29.33     0.93       7.75                (29.33     4.73       111.00  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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
(03/01/22)
 
 
 
   

Ending
Account Value
(08/31/22)
 
 
 
    

Expenses
Paid During
the Period
 
 
(a) 
   

Beginning
Account Value
(03/01/22)
 
 
 
    

Ending
Account Value
(08/31/22)
 
 
 
    

Expenses
Paid During
the Period
 
 
(a) 
 

Annualized  

Expense  

Ratio  

 

    $      1,000.00       $      894.30        $       2.91       $     1,000.00        $    1,022.10        $    3.11     0.61%

 

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  7


Table of Contents
Fund Summary as of August 31, 2022  (continued)    iShares® MSCI Finland ETF

 

Portfolio Management Commentary

Stocks in Finland declined significantly for the reporting period amid rising global inflation, geopolitical tensions, and slowing economic growth. Russia’s invasion of neighboring Ukraine sharply curbed trade with Russia, raised security concerns within Finland (leading it to apply for membership in the North Atlantic Treaty Organization), and weakened Finland’s overall economic outlook. Although employment rates in Finland remained relatively strong, ongoing effects from the war in Ukraine and rising inflation, which reached a 38-year high in June 2022, led to recession concerns.

The industrials sector detracted the most from the Index’s performance, driven by machinery companies navigating ongoing global supply chain constraints, including substantially higher ocean freight shipping costs and parts shortages. The industry also faced headwinds from coronavirus pandemic-related shutdowns in China. For example, a large manufacturer of escalators and elevators experienced reduced demand for its products from Chinese property developers. Continued lockdowns exacerbated the ongoing liquidity problems in China’s real estate market, where sales and construction declined. Despite cost reduction efforts, supply constraints and deteriorating demand weighed on the company’s revenue and earnings outlook.

The information technology sector also detracted from the Index’s performance. Global semiconductor shortages constrained the communications equipment industry, limiting its ability to meet increased demand for 5G equipment. The utilities sector also detracted, as the Finnish government prompted the electric utilities industry to sell its power plants in Russia, leading companies to write off those assets, which weighed on profitability. In addition, the materials sector detracted, as stocks of paper and forest product companies declined late in the reporting period. Demand for pulp and timber weakened and supply-chain bottlenecks persisted, weighing on the industry.

Portfolio Information

 

SECTOR ALLOCATION

   

Sector

   
Percent of
Total Investments
 
(a) 

Materials

    19.3

Information Technology

    17.4  

Industrials

    17.3  

Financials

    11.9  

Energy

    10.9  

Communication Services

    6.1  

Health Care

    4.5  

Consumer Discretionary

    3.9  

Consumer Staples

    3.8  

Utilities

    2.8  

Real Estate

    2.1  

TEN LARGEST HOLDINGS

   

Security

   
Percent of
Total Investments
 
(a) 

Nokia OYJ

    14.5

Sampo OYJ, Class A

    11.3  

Neste OYJ

    10.9  

UPM-Kymmene OYJ

    9.3  

Kone OYJ, Class B

    4.5  

Elisa OYJ

    4.4  

Stora Enso OYJ, Class R

    4.4  

Kesko OYJ, Class B

    3.5  

Orion OYJ, Class B

    3.2  

Metso Outotec OYJ

    3.2  

 

  (a) 

Excludes money market funds.

 

 

 

8  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents
Fund Summary as of August 31, 2022     iShares® MSCI Germany Small-Cap ETF

 

Investment Objective

The iShares MSCI Germany Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization German equities, as represented by the MSCI Germany Small Cap Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (37.52 )%      0.02     8.79        (37.52 )%      0.09     132.16

Fund Market

    (37.70     (0.10     8.77          (37.70     (0.49     131.86  

Index

    (37.55     (0.10     8.71                (37.55     (0.50     130.53  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses

Paid During

the Period

 

(a) 

           

Beginning
Account Value
(03/01/22)
 
 
 
      


Ending

Account Value
(08/31/22)

 


 

      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized

Expense

Ratio

 

 

 

  

    $      1,000.00        $         730.90        $       2.57             $       1,000.00        $       1,022.20        $       3.01          0.59

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  9


Table of Contents
Fund Summary as of August 31, 2022  (continued)    iShares® MSCI Germany Small-Cap ETF

 

Portfolio Management Commentary

Small-capitalization German equities declined sharply during the reporting period. The war in Ukraine disrupted supply chains and contributed to record-high inflation as prices for commodities and energy soared. Germany’s economic growth slowed in 2022 despite the lifting of many coronavirus-related restrictions. Rising inflation led the ECB to increase interest rates in July 2022 for the first time in 11 years, further weakening business confidence and the economic outlook. The declining value of the euro relative to the U.S. dollar also diminished the value of German stocks in U.S. dollar terms.

The healthcare sector detracted the most from the Index’s performance, particularly pharmaceuticals, biotechnology, and life sciences companies whose valuations depend upon the success of drugs in development. Stock prices for many healthcare companies dropped as cash inflows from mergers and acquisitions or licensing deals grew scarce. In addition, the stock price of a German life sciences tools and services company fell after a partnership with a global pharmaceutical company dissolved following disappointing drug test performance.

The industrials sector also detracted significantly from the Index’s performance. Companies in the sector lowered their earnings outlooks as coronavirus-related lockdowns in major Chinese cities constrained the supply of critical parts, hindering production and raising costs. Disruption to the supply of natural gas to Germany after Russia’s invasion of Ukraine forced some industrial companies to seek alternative sources of energy.

Information technology (“IT”) stocks also detracted from the Index’s performance. Bottlenecks in the supply chain network and slowing sales to public sector businesses negatively impacted the IT services industry. Real estate stocks also declined, as rising interest rates increased the cost of borrowing for real estate companies, while higher mortgage rates made housing less affordable.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector    

Percent of

Total Investments

 

(a) 

Industrials

    23.7

Materials

    14.2  

Information Technology

    13.5  

Health Care

    10.6  

Communication Services

    9.5  

Consumer Discretionary

    8.9  

Financials

    6.8  

Real Estate

    5.1  

Consumer Staples

    3.4  

Utilities

    2.5  

Energy

    1.8  

TEN LARGEST HOLDINGS

 

   
Security    

Percent of

Total Investments

 

(a) 

K+S AG

    4.2

Evotec SE

    3.0  

CTS Eventim AG & Co. KGaA

    3.0  

Hugo Boss AG

    3.0  

LANXESS AG

    2.7  

AIXTRON SE

    2.6  

Freenet AG

    2.6  

thyssenkrupp AG

    2.5  

Encavis AG

    2.5  

Aareal Bank AG

    1.9  

 

  (a) 

Excludes money market funds.

 

 

 

10  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents
Fund Summary as of August 31, 2022     iShares® MSCI Ireland ETF

 

Investment Objective

The iShares MSCI Ireland ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Irish equities, as represented by the MSCI All Ireland 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  
     1 Year     5 Years     10 Years             1 Year     5 Years     10 Years  

Fund NAV

    (30.16 )%      0.62     8.92        (30.16 )%      3.16     135.06

Fund Market

    (30.63     0.61       8.84          (30.63     3.07       133.29  

Index

    (29.78     1.02       9.38                (29.78     5.21       145.06  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through November 26, 2013 reflects the performance of the MSCI Ireland Investable Market Index 25/50. Index performance beginning on November 27, 2013 reflects the performance of the MSCI All Ireland Capped 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
(03/01/22)

 


 

      


Ending

Account Value
(08/31/22)

 


 

      


Expenses

Paid During
the Period

 


(a) 

           

Beginning
Account Value
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $        1,000.00          $        817.10          $      2.29               $      1,000.00          $      1,022.70          $      2.55          0.50

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  11


Table of Contents
Fund Summary as of August 31, 2022  (continued)    iShares® MSCI Ireland ETF

 

Portfolio Management Commentary

Stocks in Ireland fell significantly for the reporting period as the country faced its highest rate of inflation in almost four decades. Economic growth slowed considerably late in the reporting period as consumer spending and investment eased and labor costs rose. Many central banks around the world, including the ECB, increased interest rates in response to rising global inflation. Those increases and the war in Ukraine prompted recession concerns as households’ real income and consumer spending were projected to decline. The declining value of the euro relative to the U.S. dollar also diminished the value of Irish stocks in U.S. dollar terms.

The consumer discretionary sector detracted the most from the Index’s return. Slowing growth in European gaming demand drove the decline in the hotel, restaurants, and leisure industry. Investors grew concerned about the large sums of money the industry spent on marketing and advertising, which, along with costs related to merger activity, constrained profitability.

The materials sector also weighed on the Index’s return, particularly the construction materials industry. Demand for building materials fell in the wake of Russia’s invasion of Ukraine. Concerns about slowing global economic growth clouded the industry’s outlook as housing markets cooled and rising costs delayed or reduced large infrastructure projects.

Industrials stocks also detracted from the Index’s return. In the trading companies and distributors industry earnings declined from previous highs attained amid the coronavirus pandemic-related increase in home improvement projects. Persistent inflation raised investors’ concern that consumer demand for building, plumbing, and other household materials would diminish. Similarly, in the building products industry, orders and order backlogs fell as demand for building insulation and related products weakened.

Portfolio Information

 

SECTOR ALLOCATION

 

Sector

   

Percent of

Total Investments

 

(a) 

Materials

    27.9

Consumer Discretionary

    25.7  

Industrials

    14.0  

Consumer Staples

    13.4  

Financials

    9.9  

Health Care

    7.3  

Real Estate

    1.8  

TEN LARGEST HOLDINGS

 

Security

   

Percent of

Total Investments

 

(a) 

CRH PLC

    22.3

Flutter Entertainment PLC, Class DI

    19.4  

Bank of Ireland Group PLC

    4.9  

Ryanair Holdings PLC

    4.7  

Glanbia PLC

    4.7  

AIB Group PLC

    4.6  

Kerry Group PLC, Class A

    4.5  

Grafton Group PLC

    4.4  

Smurfit Kappa Group PLC

    4.3  

Kingspan Group PLC

    4.3  

 

  (a) 

Excludes money market funds.

 

 

 

12  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents
Fund Summary as of August 31, 2022     iShares® MSCI Kuwait ETF

 

Investment Objective

The iShares MSCI Kuwait ETF (the “Fund”) seeks to track the investment results of a broad-based equity index with exposure to Kuwait,as defined by the index provider, as represented by the MSCI All Kuwait Select Size Liquidity 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  
     1 Year    

Since

Inception

           1 Year     Since
Inception
 

Fund NAV

    16.26     26.22       16.26     59.31

Fund Market

    15.92       26.30         15.92       59.51  

Index

    17.46       27.33               17.46       62.02  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was September 1, 2020. The first day of secondary market trading was September 3, 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
(03/01/22)

 


 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

           

Beginning

Account Value

(03/01/22)

 

 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized
Expense
Ratio
 
 
 
      $      1,000.00          $      1,011.40          $         3.75               $      1,000.00          $      1,021.50          $      3.77          0.74

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  13


Table of Contents
Fund Summary as of August 31, 2022  (continued)    iShares® MSCI Kuwait ETF

 

Portfolio Management Commentary

Stocks in Kuwait advanced for the reporting period as rising global crude oil prices benefited the country’s economy and the government’s fiscal budget. Crude oil production constitutes approximately 60% of the country’s economic output and 95% of its export revenue. As oil prices rose, Kuwait’s finance ministry proposed a budget for fiscal year 2022 that projected a 74% decrease over the prior year’s record deficit. In addition, the April 2022 resignation of the country’s entire government, beset with infighting on budgetary matters, raised expectations that the country would move ahead with long-delayed plans to significantly boost oil production. However, political standoffs continued, and Kuwait dissolved its parliament in August 2022 with the budget still not approved.

Kuwait’s financials sector, which represented approximately 67% of the Index on average during the reporting period, contributed the most to the Index’s return. Banks in Kuwait rely heavily on large depositors, including many government-related institutions, for their loan commitments. The banking industry’s health ordinarily reflects development in global oil markets and geopolitics that, in turn, affect the ability of Kuwaiti authorities to support it. Amid high oil prices, private sector bank deposit volumes rose, and credit at Kuwaiti banks reached a record high in early 2022. Consumer loans also increased significantly. Bank earnings increased sharply, and the outlook improved as oil prices remained relatively high and the negative impacts of the COVID-19 pandemic on the global economy receded.

The industrials sector also contributed to the Index’s performance. The electrical equipment industry gained as sales costs fell for power and telecommunications cables. Preferential government contracts with relatively high profit margins favored domestic suppliers, boosting industry profitability. In addition, a large industrial conglomerate advanced, as it successfully raised capital from existing shareholders for future investment.

Portfolio Information

 

SECTOR ALLOCATION

 

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    65.4

Industrials

    13.2  

Real Estate

    7.9  

Communication Services

    4.4  

Materials

    2.5  

Consumer Discretionary

    2.3  

Consumer Staples

    1.6  

Utilities

    1.4  

Energy

    1.3  

TEN LARGEST HOLDINGS

 

Security

   

Percent of

Total Investments


(a) 

National Bank of Kuwait SAKP

    22.0

Kuwait Finance House KSCP

    20.8  

Ahli United Bank BSC

    4.9  

Agility Public Warehousing Co. KSC

    4.4  

Mobile Telecommunications Co. KSCP

    4.3  

Gulf Bank KSCP

    3.4  

Mabanee Co. KPSC

    3.3  

National Industries Group Holding SAK

    3.2  

Boubyan Petrochemicals Co. KSCP

    2.5  

Humansoft Holding Co. KSC

    2.3  

 

  (a) 

Excludes money market funds.

 

 

 

14  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents
Fund Summary as of August 31, 2022      iShares® MSCI New Zealand ETF

 

Investment Objective

The iShares MSCI New Zealand ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of New Zealand equities, as represented by the MSCI New Zealand IMI 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (23.96 )%      3.25     8.17       (23.96 )%      17.31     119.28

Fund Market

    (24.16     2.96       8.10         (24.16     15.73       117.96  

Index

    (23.05     3.85       8.70               (23.05     20.80       130.23  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through February 11, 2013 reflects the performance of the MSCI New Zealand Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI New Zealand IMI 25/50 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
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized

Expense

Ratio

 

 

 

      $      1,000.00          $       873.10          $        2.36               $     1,000.00          $       1,022.70          $         2.55          0.50

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  15


Table of Contents
Fund Summary as of August 31, 2022  (continued)    iShares® MSCI New Zealand ETF

 

Portfolio Management Commentary

Stocks in New Zealand declined significantly for the reporting period amid rising inflation and slowing economic growth. Exports of goods and services, which comprise approximately one quarter of the nation’s economic output, declined substantially. Coronavirus pandemic-related lockdowns in China, New Zealand’s largest trade partner, disrupted supply chains across that country. In early 2022, New Zealand experienced its first significant wave of COVID-19 cases. Extended border closures weighed on tourism and international education. Domestic retail sales declined in the first two quarters of 2022, raising recession concerns. Nevertheless, the Bank of New Zealand continued raising interest rates to address inflation. A strong U.S. dollar also weighed on the Index’s performance, as the value of foreign currency-denominated investments diminished.

The healthcare sector detracted the most from the Index’s return, driven by the healthcare equipment industry. During the height of the coronavirus pandemic, global demand for healthcare equipment, such as breathing aids and respiratory masks used for treating COVID-19 patients, increased sharply. Production at a large manufacturer of respiratory equipment accelerated dramatically to meet that demand. However, during the reporting period, hospitals’ needs for that equipment decreased markedly as hospitalizations declined in most parts of the world. In turn, the company’s profits and stock price dropped sharply. Meanwhile, revenue and earnings outlooks dimmed as hospitals’ product inventories remained plentiful. At the same time, higher operating costs, including elevated freight and pandemic-related employee absenteeism expenses, further pressured profits.

The industrials sector also weighed on the Index’s performance. Within the transportation industry, airport and airline earnings declined amid New Zealand’s strict pandemic travel restrictions. Pandemic-related restrictions also disrupted the building products industry, particularly early in the reporting period.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Utilities

    23.0

Health Care

    22.0  

Industrials

    17.5  

Communication Services

    16.6  

Real Estate

    9.4  

Consumer Staples

    6.0  

Consumer Discretionary

    3.6  

Information Technology

    1.9  
TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Fisher & Paykel Healthcare Corp. Ltd.

    13.3

Spark New Zealand Ltd.

    11.9  

Auckland International Airport Ltd.

    11.1  

Meridian Energy Ltd.

    7.7  

a2 Milk Co. Ltd. (The)

    5.2  

Chorus Ltd.

    4.6  

Contact Energy Ltd.

    4.5  

Fletcher Building Ltd.

    4.5  

Infratil Ltd.

    4.5  

Ryman Healthcare Ltd.

    4.4  

 

  (a) 

Excludes money market funds.

 

 

 

16  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents
Fund Summary as of August 31, 2022     iShares® MSCI Norway ETF

 

Investment Objective

The iShares MSCI Norway ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Norwegian equities, as represented by the MSCI Norway IMI 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

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

Fund NAV

    (6.50 )%      3.52     2.35       (6.50 )%      18.89     26.19

Fund Market

    (7.38     3.36       2.28         (7.38     17.95       25.24  

Index

    (5.86     4.02       2.73               (5.86     21.77       30.88  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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

(03/01/22)

 

 

 

      

Ending
Account Value

(08/31/22)

 
 

 

      

Expenses

Paid During

the Period(a)

 

 

 

           

Beginning
Account Value

(03/01/22)

 
 

 

      

Ending

Account Value

(08/31/22)

 

 

 

      

Expenses

Paid During

the Period(a)

 

 

 

      

Annualized

Expense

Ratio

 

 

 

      $      1,000.00          $      910.60        $         2.55               $    1,000.00          $    1,022.50        $         2.70          0.53

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D   S U M M A R Y

  17


Table of Contents
Fund Summary as of August 31, 2022  (continued)    iShares® MSCI Norway ETF

 

Portfolio Management Commentary

Stocks in Norway declined for the reporting period as slowing global economic growth and supply chain issues outweighed the benefits from sharp increases in oil and gas prices and rising exports, which comprise approximately 40% of the country’s economic output. Norway’s central bank raised interest rates aggressively as global price pressures weighed on the economy. The declining value of the Norwegian krone relative to the U.S. dollar also diminished the value of Norwegian stocks in U.S. dollar terms.

The communication services sector detracted the most from the Index’s return. The media and entertainment industry declined amid weaker-than-expected revenue in classified advertising. Publishers of classified advertisements in Norway typically rely heavily on car manufacturers’ placements, but semiconductor shortages limited global automobile production and related advertising. The telecommunications industry weakened as rising inflation and growing economic uncertainty increased pressure to lower costs amid continued investment in 5G networks.

The information technology sector also detracted from the Index’s performance, driven by declines in the semiconductor industry as limited supplies of silicon wafers pressured companies’ ability to address order backlogs. Software and services stocks declined as disappointing earnings amplified investors’ concerns about generally high industry valuations. The consumer staples sector also detracted as global consumption of salmon dropped amid a decline in salmon populations.

On the upside, the energy sector contributed substantially to the Index’s performance. The integrated oil and gas industry advanced amid surging global energy prices. Russia responded to European sanctions over the war in Ukraine by reducing gas shipments to the E.U., and many large global economies shunned Russian oil. Norwegian crude oil and natural gas helped fill the ensuing supply gap in Europe. The industry also benefited from lower shipping costs as deliveries to Europe replaced shipments to Asia.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Energy

    33.6

Financials

    17.7  

Consumer Staples

    14.7  

Industrials

    11.2  

Materials

    10.3  

Communication Services

    7.5  

Information Technology

    2.9  

Other (each representing less than 1%)

    2.1  
TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Equinor ASA

    21.5

DNB Bank ASA

    10.0  

Aker BP ASA

    6.3  

Mowi ASA

    5.1  

Norsk Hydro ASA

    4.7  

Telenor ASA

    4.2  

Yara International ASA

    3.8  

Orkla ASA

    3.6  

TOMRA Systems ASA

    3.1  

Gjensidige Forsikring ASA

    2.3  

 

  (a) 

Excludes money market funds.

 

 

 

18  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents

About Fund Performance

 

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

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

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

Disclosure of Expenses

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

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

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

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

 

 

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

    19  


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI Denmark ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Air Freight & Logistics — 7.6%            

DSV A/S

    91,146     $ 13,468,465  
   

 

 

 
Banks — 6.5%            

Danske Bank A/S

    347,920       4,645,740  

Jyske Bank A/S, Registered(a)

    41,074       2,055,955  

Ringkjoebing Landbobank A/S

    18,865       2,014,219  

Spar Nord Bank A/S

        111,055       1,257,427  

Sydbank AS

    49,918       1,442,423  
   

 

 

 
          11,415,764  
Beverages — 4.9%            

Carlsberg A/S, Class B

    49,403       6,414,986  

Royal Unibrew A/S

    30,389       2,276,740  
   

 

 

 
      8,691,726  
Biotechnology — 8.0%            

Bavarian Nordic A/S(a)(b)

    60,911       2,294,881  

Genmab A/S(a)

    30,337       10,798,945  

Zealand Pharma A/S(a)

    59,501       1,059,336  
   

 

 

 
      14,153,162  
Building Products — 0.8%            

Rockwool A/S, Class B

    6,891       1,418,404  
   

 

 

 
Chemicals — 5.1%            

Chr Hansen Holding A/S

    56,123       3,270,124  

Novozymes A/S, Class B

    101,071       5,800,828  
   

 

 

 
          9,070,952  
Commercial Services & Supplies — 1.1%            

ISS A/S(a)

    111,296       1,948,737  
   

 

 

 
Construction & Engineering — 0.5%            

Per Aarsleff Holding A/S

    30,128       867,110  
   

 

 

 
Electric Utilities — 4.3%            

Orsted A/S(c)

    77,722       7,585,859  
   

 

 

 
Electrical Equipment — 7.6%            

NKT A/S(a)

    34,558       1,764,085  

Vestas Wind Systems A/S

    466,896       11,682,251  
   

 

 

 
      13,446,336  
Energy Equipment & Services — 0.8%            

Drilling Co. of 1972 A/S (The)(a)

    30,142       1,430,335  
   

 

 

 
Food Products — 0.7%            

Schouw & Co. A/S

    16,578       1,208,824  
   

 

 

 
Health Care Equipment & Supplies — 6.9%            

Ambu A/S, Class B(b)

    138,978       1,397,264  

Coloplast A/S, Class B

    57,478       6,565,769  

Demant A/S(a)

    60,990       1,878,750  

GN Store Nord AS

    80,272       2,270,303  
   

 

 

 
      12,112,086  
Insurance — 4.2%            

Alm Brand A/S

    868,444       1,272,488  

Topdanmark AS

    34,707       1,821,464  

Tryg A/S

    189,982       4,292,791  
   

 

 

 
      7,386,743  
IT Services — 0.3%            

Trifork Holding AG(b)

    22,255       526,934  
   

 

 

 
Life Sciences Tools & Services — 0.9%            

Chemometec A/S

    14,844       1,588,002  
   

 

 

 
Security   Shares     Value  

 

 
Machinery — 1.1%            

FLSmidth & Co. A/S

    51,765     $ 1,432,862  

Nilfisk Holding A/S(a)

    21,042       470,657  
   

 

 

 
      1,903,519  
Marine — 5.9%            

AP Moller - Maersk A/S, Class A

    1,139       2,660,826  

AP Moller - Maersk A/S, Class B, NVS

    1,975       4,738,328  

D/S Norden A/S

    38,495       1,794,800  

Dfds A/S

    36,258       1,254,629  
   

 

 

 
      10,448,583  
Oil, Gas & Consumable Fuels — 0.5%            

TORM PLC, Class A

    48,464       939,741  
   

 

 

 
Pharmaceuticals — 25.8%            

ALK-Abello AS(a)

    99,632       1,852,342  

H Lundbeck AS

    281,005       1,103,592  

H Lundbeck AS, Class A(a)

    99,077       379,400  

Novo Nordisk A/S, Class B

    395,416       42,275,427  
   

 

 

 
      45,610,761  
Road & Rail — 0.3%            

NTG Nordic Transport Group A/S, Class A(a)

    13,746       532,473  
   

 

 

 
Software — 2.2%            

cBrain A/S

    18,714       423,654  

Netcompany Group A/S(a)(c)

    33,061       1,344,247  

SimCorp A/S

    28,802       2,103,303  
   

 

 

 
      3,871,204  
Specialty Retail — 0.4%            

Matas A/S

    63,078       646,882  
   

 

 

 
Textiles, Apparel & Luxury Goods — 1.8%            

Pandora A/S

    51,469       3,092,082  
   

 

 

 
Tobacco — 0.6%            

Scandinavian Tobacco Group A/S, Class A(c)

    64,838       971,685  
   

 

 

 
Trading Companies & Distributors — 0.4%            

Solar A/S, Class B

    9,521       769,761  
   

 

 

 

Total Long-Term Investments — 99.2%
(Cost: $192,274,637)

      175,106,130  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 2.2%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.42%(d)(e)(f)

    3,636,586       3,637,677  

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(d)(e)

    160,000       160,000  
   

 

 

 

Total Short-Term Securities — 2.2%
(Cost: $3,796,384)

      3,797,677  
   

 

 

 

Total Investments in Securities — 101.4%
(Cost: $196,071,021)

      178,903,807  

Liabilities in Excess of Other Assets — (1.4)%

 

    (2,388,087
   

 

 

 

Net Assets — 100.0%

    $   176,515,720  
   

 

 

 

 

(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.

 

 

20  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Denmark ETF

 

(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.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
08/31/21
    

Purchases

at Cost

    

Proceeds

from Sale

     Net Realized
Gain (Loss)
    

Change in

Unrealized

Appreciation

(Depreciation)

     Value at
08/31/22
    

Shares

Held at

08/31/22

     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 3,386,728      $ 251,552 (a)     $      $ (1,930    $ 1,327      $ 3,637,677        3,636,586      $ 35,296 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     90,000        70,000 (a)                            160,000        160,000        495         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ (1,930    $ 1,327      $ 3,797,677         $ 35,791      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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                            

OMX Copenhagen 25 Index

     61        09/16/22      $ 1,357      $ (83,571
           

 

 

 

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)

   $      $      $ 83,571      $      $      $      $ 83,571  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 August 31, 2022, 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

   $      $      $ (119,091    $      $      $      $ (119,091
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (76,311    $      $      $      $ (76,311
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

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

  21


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Denmark ETF

 

Derivative Financial Instruments Categorized by Risk Exposure (continued)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts

  

Average notional value of contracts — long

   $ 1,232,812  

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  

 

 

Investments

                 

Assets

                 

Common Stocks

   $ 4,171,566        $ 170,934,564        $        $ 175,106,130  

Money Market Funds

     3,797,677                            3,797,677  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 7,969,243        $ 170,934,564        $        $ 178,903,807  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $        $ (83,571      $        $ (83,571
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

22  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI Finland ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Airlines — 0.3%            

Finnair OYJ(a)(b)

    186,625     $ 76,493  
   

 

 

 
Auto Components — 0.9%            

Nokian Renkaat OYJ

    20,656       214,373  
   

 

 

 
Banks — 0.6%            

Aktia Bank OYJ

    13,906           143,661  
   

 

 

 
Beverages — 0.3%            

Anora Group OYJ

    9,461       77,098  
   

 

 

 
Building Products — 0.7%            

Uponor OYJ

    10,395       155,762  
   

 

 

 
Chemicals — 1.0%            

Kemira OYJ

    19,539       235,186  
   

 

 

 
Commercial Services & Supplies — 0.5%            

Caverion OYJ

    24,568       120,185  
   

 

 

 
Communications Equipment — 14.4%            

Nokia OYJ

    645,980       3,255,329  
   

 

 

 
Containers & Packaging — 2.3%            

Huhtamaki OYJ

    14,700       514,752  
   

 

 

 
Diversified Telecommunication Services — 4.4%        

Elisa OYJ

    18,539       991,434  
   

 

 

 
Electric Utilities — 2.8%            

Fortum OYJ

    61,102       628,523  
   

 

 

 
Electrical Equipment — 0.4%            

Kempower OYJ(a)

    4,291       79,354  
   

 

 

 
Entertainment — 0.7%            

Remedy Entertainment OYJ

    2,825       65,140  

Rovio Entertainment OYJ(c)

    15,449       93,075  
   

 

 

 
      158,215  
Food & Staples Retailing — 3.5%            

Kesko OYJ, Class B

    37,146       781,463  
   

 

 

 
Health Care Equipment & Supplies — 0.8%            

Revenio Group OYJ

    3,912       176,963  
   

 

 

 
Health Care Providers & Services — 0.4%            

Oriola OYJ, Class B

    52,535       99,783  
   

 

 

 
Household Durables — 0.5%            

YIT OYJ

    31,697       103,721  
   

 

 

 
Insurance — 11.2%            

Sampo OYJ, Class A

    55,863       2,527,260  
   

 

 

 
IT Services — 1.6%            

TietoEVRY OYJ

    14,514       371,391  
   

 

 

 
Leisure Products — 0.3%            

Harvia OYJ

    4,166       67,485  
   

 

 

 
Machinery — 14.9%            

Cargotec OYJ, Class B

    6,653       226,262  

Kone OYJ, Class B

    24,986       999,252  

Konecranes OYJ

    9,744       229,075  

Metso Outotec OYJ

    90,711       709,464  
Security   Shares     Value  

 

 
Machinery (continued)            

Valmet OYJ

    25,299     $ 641,263  

Wartsila OYJ Abp

    68,129       561,740  
   

 

 

 
      3,367,056  
Media — 0.9%            

Sanoma OYJ

    15,144       206,551  
   

 

 

 
Metals & Mining — 1.1%            

Outokumpu OYJ

    59,500       238,593  
   

 

 

 
Multiline Retail — 0.8%            

Puuilo OYJ

    14,200       67,727  

Tokmanni Group Corp.

    9,485       113,241  
   

 

 

 
      180,968  
Oil, Gas & Consumable Fuels — 10.7%            

Neste OYJ

    49,245           2,429,591  
   

 

 

 
Paper & Forest Products — 14.7%            

Metsa Board OYJ, Class B

    30,772       264,553  

Stora Enso OYJ, Class R

    66,185       985,228  

UPM-Kymmene OYJ

    61,062       2,074,538  
   

 

 

 
      3,324,319  
Pharmaceuticals — 3.2%            

Orion OYJ, Class B

    15,994       725,169  
   

 

 

 
Professional Services — 0.4%            

Talenom OYJ(b)

    7,439       81,128  
   

 

 

 
Real Estate Management & Development — 2.0%        

Citycon OYJ

    18,013       127,646  

Kojamo OYJ

    19,974       334,415  
   

 

 

 
      462,061  
Software — 1.2%            

F-Secure Oyj(a)

    27,447       69,054  

QT Group OYJ(a)(b)

    2,781       140,998  

WithSecure OYJ(a)

    36,237       60,910  
   

 

 

 
      270,962  
Specialty Retail — 0.8%            

Kamux Corp.

    9,988       60,963  

Musti Group OYJ

    6,611       130,715  
   

 

 

 
      191,678  
Textiles, Apparel & Luxury Goods — 0.5%            

Marimekko OYJ

    6,754       66,605  

Spinnova OYJ(a)

    7,443       51,120  
   

 

 

 
      117,725  
   

 

 

 

Total Long-Term Investments — 98.8%
(Cost: $28,833,011)

      22,374,232  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.8%            

BlackRock Cash Funds: Institutional, SL Agency
Shares, 2.42%(d)(e)(f)

    143,748       143,791  

 

 

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

  23


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Finland ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 
Money Market Funds (continued)            

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(d)(e)

    40,000     $ 40,000  
   

 

 

 

Total Short-Term Securities — 0.8%
(Cost: $183,725)

      183,791  
   

 

 

 

Total Investments in Securities — 99.6%
(Cost: $29,016,736)

      22,558,023  

Other Assets Less Liabilities — 0.4%

      94,382  
   

 

 

 

Net Assets — 100.0%

    $   22,652,405  
   

 

 

 

 

(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.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
08/31/21
     Purchases
at Cost
    

Proceeds

from Sale

     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
08/31/22
     Shares
Held at
08/31/22
     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 143,228      $ 579 (a)     $      $ (82    $ 66      $ 143,791        143,748      $ 3,928 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     165,000               (125,000 )(a)                     40,000        40,000        235         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ (82    $ 66      $ 183,791         $ 4,163      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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

           

Euro STOXX 50 Index

     7        09/16/22      $ 246      $ (1,394
           

 

 

 

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)

   $      $      $ 1,394      $      $      $      $ 1,394  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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).

 

 

 

24  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Finland ETF

 

Derivative Financial Instruments Categorized by Risk Exposure (continued)

For the period ended August 31, 2022, 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

   $      $      $ (6,523    $      $      $      $ (6,523
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (9,404    $      $      $      $ (9,404
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts

  

Average notional value of contracts — long

   $ 257,971  

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  

 

 

Investments

                 

Assets

                 

Common Stocks

   $ 466,483        $ 21,907,749        $        $ 22,374,232  

Money Market Funds

     183,791                            183,791  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 650,274        $ 21,907,749        $        $ 22,558,023  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $        $ (1,394      $        $ (1,394
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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 E   O F   I N V E S T M E N T S

  25


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI Germany Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 1.0%            

Hensoldt AG

    8,350     $ 185,690  

OHB SE

    1,197       42,511  
   

 

 

 
      228,201  
Auto Components — 1.1%            

ElringKlinger AG

    6,445       45,233  

Vitesco Technologies Group AG(a)

    4,547       222,055  
   

 

 

 
      267,288  
Biotechnology — 1.1%            

CureVac NV(a)(b)

    12,759       127,178  

MorphoSys AG(a)(b)

    7,787       135,666  
   

 

 

 
      262,844  
Building Products — 0.4%            

Steico SE

    1,285       98,779  
   

 

 

 
Capital Markets — 2.0%            

AURELIUS Equity Opportunities SE & Co. KGaA

    6,426       149,216  

Deutsche Beteiligungs AG

    3,225       90,198  

flatexDEGIRO AG(a)

    14,911       143,490  

MLP SE

    16,238       89,751  
   

 

 

 
      472,655  
Chemicals — 6.9%            

K+S AG, Registered

    43,490       990,771  

LANXESS AG

    18,639       628,908  
   

 

 

 
          1,619,679  
Commercial Services & Supplies — 2.9%            

Befesa SA(b)(c)

    9,089       374,072  

Bilfinger SE(b)

    6,993       207,632  

Cewe Stiftung & Co. KGaA

    1,274       100,737  
   

 

 

 
      682,441  
Construction & Engineering — 1.2%            

HOCHTIEF AG(b)

    5,618       277,376  
   

 

 

 
Diversified Financial Services — 1.4%            

GRENKE AG(b)

    6,354       152,775  

Hypoport SE(a)

    886       173,017  
   

 

 

 
      325,792  
Electrical Equipment — 3.9%            

Energiekontor AG

    1,442       126,671  

Nordex SE(a)(b)

    28,457       273,631  

PNE AG

    7,833       129,678  

SGL Carbon SE(a)

    13,802       93,800  

Varta AG(b)

    4,133       289,959  
   

 

 

 
      913,739  
Electronic Equipment, Instruments & Components — 1.3%  

Basler AG(b)

    2,488       61,394  

Jenoptik AG

    11,705       247,705  
   

 

 

 
      309,099  
Entertainment — 3.5%            

Borussia Dortmund GmbH & Co. KGaA(a)(b)

    17,466       68,429  

CTS Eventim AG & Co. KGaA(a)

    13,088       703,659  

Media and Games Invest SE(a)

    25,491       53,789  
   

 

 

 
      825,877  
Equity Real Estate Investment Trusts (REITs) — 0.6%  

Hamborner REIT AG

    15,670       128,480  
   

 

 

 
Food & Staples Retailing — 1.8%            

METRO AG(a)

    28,640       228,007  
Security   Shares     Value  
Food & Staples Retailing (continued)            

Shop Apotheke Europe NV(a)(b)(c)

    3,308     $ 184,418  
   

 

 

 
      412,425  
Food Products — 1.6%            

KWS Saat SE & Co. KGaA

    2,632       160,147  

Suedzucker AG

    16,238       222,675  
   

 

 

 
      382,822  
Health Care Equipment & Supplies — 1.3%            

Draegerwerk AG & Co. KGaA

    682       27,586  

Eckert & Ziegler Strahlen- und Medizintechnik AG

    3,376       133,034  

Stratec SE

    1,794       152,914  
   

 

 

 
      313,534  
Health Care Providers & Services — 1.3%            

Medios AG(a)

    3,269       80,127  

Synlab AG

    15,148       222,077  
   

 

 

 
      302,204  
Health Care Technology — 1.0%            

CompuGroup Medical SE & Co. KgaA

    6,105       229,609  
   

 

 

 
Hotels, Restaurants & Leisure — 0.4%            

Zeal Network SE

    3,063       90,554  
   

 

 

 
Independent Power and Renewable Electricity Producers — 2.5%  

Encavis AG

    27,347       584,442  
   

 

 

 
Industrial Conglomerates — 0.6%            

Indus Holding AG

    4,593       102,532  

MBB SE(b)

    470       45,523  
   

 

 

 
      148,055  
Insurance — 0.4%            

Wuestenrot & Wuerttembergische AG

    5,288       86,113  
   

 

 

 
Internet & Direct Marketing Retail — 0.8%            

About You Holding SE(a)(b)

    8,400       61,097  

Bike24 Holding AG(a)(b)

    4,522       13,951  

Global Fashion Group SA(a)(b)

    22,411       31,485  

Takkt AG(b)

    7,485       75,820  
   

 

 

 
      182,353  
IT Services — 4.0%            

Adesso SE

    741       89,786  

CANCOM SE

    8,759       245,295  

Datagroup SE

    944       62,043  

GFT Technologies SE

    3,900       129,647  

Kontron AG(b)

    9,725       147,958  

Nagarro SE(a)

    1,878       188,722  

Secunet Security Networks AG

    372       80,946  
   

 

 

 
      944,397  
Leisure Products — 0.2%            

Tonies SE(a)

    9,098       38,766  
   

 

 

 
Life Sciences Tools & Services — 4.6%            

Evotec SE(a)

    32,166       707,120  

Gerresheimer AG(b)

    7,135       373,225  
   

 

 

 
          1,080,345  
Machinery — 6.4%            

Deutz AG

    26,149       98,469  

Duerr AG

    11,793       259,762  

Heidelberger Druckmaschinen AG(a)(b)

    59,195       86,323  

JOST Werke AG(c)

    3,047       112,926  

Krones AG

    3,230       266,004  

Norma Group SE

    7,211       113,384  

 

 

26  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Germany Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Machinery (continued)            

Pfeiffer Vacuum Technology AG

    788     $ 103,993  

Stabilus SE

    5,612       287,046  

Vossloh AG

    1,982       67,767  

Wacker Neuson SE

    6,379       105,610  
   

 

 

 
          1,501,284  
Media — 2.7%            

ProSiebenSat.1 Media SE

    39,707       306,931  

Stroeer SE & Co. KGaA

    7,729       328,469  
   

 

 

 
      635,400  
Metals & Mining — 5.1%            

Aurubis AG

    7,151       432,968  

Salzgitter AG(b)

    6,836       168,060  

thyssenkrupp AG(a)

    106,089       591,751  
   

 

 

 
      1,192,779  
Oil, Gas & Consumable Fuels — 1.8%            

CropEnergies AG

    5,957       97,591  

VERBIO Vereinigte BioEnergie AG

    5,025       322,519  
   

 

 

 
      420,110  
Pharmaceuticals — 0.8%            

Dermapharm Holding SE

    4,282       198,611  
   

 

 

 
Professional Services — 0.7%            

Amadeus Fire AG

    1,293       128,989  

Bertrandt AG

    1,263       43,109  
   

 

 

 
      172,098  
Real Estate Management & Development — 4.5%        

ADLER Group SA(a)(b)(c)

    16,045       45,005  

Deutsche EuroShop AG(b)

    2,809       67,178  

DIC Asset AG

    9,447       96,704  

Grand City Properties SA

    22,019       261,244  

Instone Real Estate Group SE(b)(c)

    10,706       94,770  

PATRIZIA SE

    10,475       132,638  

TAG Immobilien AG

    39,879       367,903  
   

 

 

 
      1,065,442  
Road & Rail — 1.3%            

Sixt SE

    3,105       303,630  
   

 

 

 
Semiconductors & Semiconductor Equipment — 4.7%        

AIXTRON SE

    25,743       603,297  

Elmos Semiconductor SE

    1,797       76,233  

PVA TePla AG(a)

    4,481       75,266  

Siltronic AG

    3,408       233,541  

SMA Solar Technology AG(a)(b)

    2,367       119,096  
   

 

 

 
      1,107,433  
Software — 3.4%            

Atoss Software AG

    904       119,920  

Northern Data AG(a)(b)

    1,086       25,201  

Software AG(b)

    11,770       320,148  

TeamViewer AG(a)(c)

    34,266       342,899  
   

 

 

 
      808,168  
Specialty Retail — 2.6%            

Auto1 Group SE(a)(b)(c)

    19,580       205,108  

Ceconomy AG

    36,151       52,304  

Fielmann AG

    5,726       212,787  

Hornbach Holding AG & Co. KGaA

    2,000       141,072  
   

 

 

 
      611,271  
Textiles, Apparel & Luxury Goods — 3.0%            

Hugo Boss AG

    12,797       697,464  
   

 

 

 
Security   Shares     Value  

 

 
Thrifts & Mortgage Finance — 3.0%            

Aareal Bank AG(a)

    13,601     $ 434,653  

Deutsche Pfandbriefbank AG(c)

    30,556       263,703  
   

 

 

 
      698,356  
Trading Companies & Distributors — 1.2%            

BayWa AG

    3,127       135,282  

Kloeckner & Co. SE

    16,920       152,693  
   

 

 

 
      287,975  
Transportation Infrastructure — 1.9%            

Fraport AG Frankfurt Airport Services Worldwide(a)

    8,404       363,380  

Hamburger Hafen und Logistik AG

    5,947       72,732  
   

 

 

 
      436,112  
Wireless Telecommunication Services — 3.3%        

1&1 AG

    10,049       161,510  

Freenet AG

    27,643       602,513  
   

 

 

 
      764,023  
   

 

 

 

Total Common Stocks — 94.2%
(Cost: $32,374,433)

      22,108,025  
   

 

 

 

Preferred Stocks

   
Auto Components — 0.6%            

Schaeffler AG, Preference Shares, NVS(b)

    28,353       147,716  
   

 

 

 
Chemicals — 1.8%            

Fuchs Petrolub SE, Preference Shares, NVS

    15,792       427,389  
   

 

 

 
Construction Materials — 0.4%            

STO SE & Co. KGaA, Preference Shares, NVS

    573       89,622  
   

 

 

 
Health Care Equipment & Supplies — 0.4%            

Draegerwerk AG & Co. KGaA, Preference Shares, NVS

    1,940       91,787  
   

 

 

 
Household Durables — 0.2%            

Einhell Germany AG, Preference Shares, NVS

    380       54,075  
   

 

 

 
Machinery — 1.2%            

Jungheinrich AG, Preference Shares, NVS

    10,907       266,281  
   

 

 

 
Road & Rail — 1.0%            

Sixt SE, Preference Shares, NVS

    3,766       225,095  
   

 

 

 

Total Preferred Stocks — 5.6%
(Cost: $1,792,998)

      1,301,965  
   

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $34,167,431)

      23,409,990  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 10.6%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.42%(d)(e)(f)

    2,476,399       2,477,142  

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(d)(e)

    10,000       10,000  
   

 

 

 

Total Short-Term Securities — 10.6%
(Cost: $2,485,853)

      2,487,142  
   

 

 

 

Total Investments in Securities — 110.4%
(Cost: $36,653,284)

      25,897,132  

Liabilities in Excess of Other Assets — (10.4)%

 

    (2,433,466
   

 

 

 

Net Assets — 100.0%

    $   23,463,666  
   

 

 

 

 

 

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

  27


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Germany Small-Cap ETF

 

(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.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
08/31/21
     Purchases
at Cost
     Proceeds
from Sale
    

Net Realized

Gain (Loss)

     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
08/31/22
     Shares
Held at
08/31/22
     Income     

Capital

Gain

Distributions

from

Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 3,634,912      $      $ (1,156,845 )(a)     $ (1,404    $ 479      $ 2,477,142        2,476,399      $ 106,119 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     10,000        0 (a)                            10,000        10,000        73         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ (1,404    $ 479      $ 2,487,142         $ 106,192      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (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

           

Euro STOXX 50 Index

     1        09/16/22      $ 35      $ 372  
           

 

 

 

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)

   $      $      $ 372      $      $      $      $ 372  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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).

 

 

 

28  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Germany Small-Cap ETF

 

Derivative Financial Instruments Categorized by Risk Exposure (continued)

For the period ended August 31, 2022, 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

   $      $      $ (25,635    $      $      $      $ (25,635
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (894    $      $      $      $ (894
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts

  

Average notional value of contracts — long

   $ 61,616    

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  

 

 

Investments

           

Assets

           

Common Stocks

   $ 799,388      $ 21,308,637      $      $ 22,108,025  

Preferred Stocks

     54,075        1,247,890               1,301,965  

Money Market Funds

     2,487,142                      2,487,142  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 3,340,605      $ 22,556,527      $      $ 25,897,132  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $      $ 372      $      $ 372  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 E   O F   I N V E S T M E N T S

  29


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI Ireland ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Airlines — 4.7%            

Ryanair Holdings PLC, ADR(a)

    31,380     $ 2,281,640  
   

 

 

 
Banks — 9.7%            

AIB Group PLC

    985,751       2,236,101  

Bank of Ireland Group PLC

    384,449       2,368,801  

Permanent TSB Group Holdings PLC(a)

    51,126       78,610  
   

 

 

 
      4,683,512  
Beverages — 2.4%            

C&C Group PLC(a)

    578,815       1,155,810  
   

 

 

 
Building Products — 4.3%            

Kingspan Group PLC

    36,760       2,081,306  
   

 

 

 
Construction Materials — 22.2%            

CRH PLC

    292,064           10,785,222  
   

 

 

 
Containers & Packaging — 4.3%            

Smurfit Kappa Group PLC

    62,396       2,092,111  
   

 

 

 
Equity Real Estate Investment Trusts (REITs) — 1.8%        

Irish Residential Properties REIT PLC

    680,563       867,727  
   

 

 

 
Food Products — 11.0%            

Dole PLC

    28,738       260,079  

Glanbia PLC

    177,763       2,262,227  

Kerry Group PLC, Class A

    21,008       2,166,381  

Origin Enterprises PLC

    175,384       657,421  
   

 

 

 
      5,346,108  
Health Care Providers & Services — 2.5%            

Uniphar PLC(a)

    351,409       1,200,705  
   

 

 

 
Hotels, Restaurants & Leisure — 21.6%            

Dalata Hotel Group PLC(a)

    303,576       1,063,324  
Security   Shares     Value  

 

 
Hotels, Restaurants & Leisure (continued)            

Flutter Entertainment PLC, Class DI(a)

    74,964     $ 9,392,911  
   

 

 

 
      10,456,235  
Household Durables — 4.1%            

Cairn Homes PLC(a)

    1,017,455       1,015,334  

Glenveagh Properties PLC(a)(b)

    962,391       980,696  
   

 

 

 
      1,996,030  
Insurance — 0.2%            

FBD Holdings PLC

    9,492       96,821  
   

 

 

 
Life Sciences Tools & Services — 4.2%            

ICON PLC(a)

    9,643       2,023,391  
   

 

 

 
Marine — 0.5%            

Irish Continental Group PLC

    57,407       240,522  
   

 

 

 
Metals & Mining — 1.3%            

Kenmare Resources PLC

    125,172       646,358  
   

 

 

 
Pharmaceuticals — 0.6%            

GH Research PLC(a)

    19,709       306,475  
   

 

 

 
Trading Companies & Distributors — 4.5%            

Grafton Group PLC

    256,888       2,156,319  

Total Investments in Securities — 99.9%
(Cost: $53,734,086)

      48,416,292  

Other Assets Less Liabilities — 0.1%

      62,754  
   

 

 

 

Net Assets — 100.0%

    $   48,479,046  
   

 

 

 

 

(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 year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
08/31/21
     Purchases
at Cost
     Proceeds
from Sale
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
08/31/22
     Shares
Held at
08/31/22
     Income     

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

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

   $ 30,000      $      $ (30,000 )(b)     $      $      $             $ 131      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

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

 
  (b) 

Represents net amount purchased (sold).

 

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

           

Euro STOXX 50 Index

     3        09/16/22      $ 106      $ (1,417
           

 

 

 

 

 

30  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Ireland ETF

 

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)

   $      $      $ 1,417      $      $      $      $ 1,417  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 August 31, 2022, 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

   $      $      $ (35,952    $      $      $      $ (35,952
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (1,417    $    &n