Table of Contents

 

LOGO

  AUGUST 31, 2022

 

 

   

  

2022 Annual Report

 

 

iShares Trust

·  iShares MSCI India ETF | INDA | Cboe BZX

·  iShares MSCI India Small-Cap ETF | SMIN | 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   T H I S   P A G E   I S   N O T   P A R T   O F   Y O U R   F U N D   R E P O R T


Table of Contents

Table of Contents

 

 

      Page  

The Markets in Review

     2  

Annual Report:

  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     9  

Disclosure of Expenses

     9  

Schedules of Investments

     10  

Financial Statements

  

Statements of Assets and Liabilities

     20  

Consolidated Statements of Operations

     21  

Consolidated Statements of Changes in Net Assets

     22  

Consolidated Financial Highlights

     23  

Notes to Financial Statements

     25  

Report of Independent Registered Public Accounting Firm

     32  

Important Tax Information

     33  

Board Review and Approval of Investment Advisory Contract

     34  

Supplemental Information

     38  

Trustee and Officer Information

     40  

General Information

     43  

Glossary of Terms Used in this Report

     44  

 

 

 


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.

 

 

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

 

Investment Objective

The iShares MSCI India ETF (the “Fund”) seeks to track the investment results of an index composed of Indian equities, as represented by the MSCI India 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

    (5.79 )%(a)      6.78      8.19       (5.79 )%(a)      38.83      119.81

Fund Market

    (5.73     6.77        8.15         (5.73     38.73        118.93  

Index

    (3.17     8.61        9.47               (3.17     51.10        147.17  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

  (a) 

The NAV total return presented in the table for the one-year period differs from the same period return disclosed in the financial highlights. The total return in the financial highlights is calculated in the same manner but differs due to certain adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

 

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               $          987.20          $        3.61               $      1,000.00             $      1,021.60          $        3.67          0.72 %  

 

  (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 India ETF

 

Portfolio Management Commentary

Indian equities declined during the reporting period as inflation weakened the country’s recovery from the coronavirus pandemic, which slowed economic growth well into 2021. Early in the reporting period, Indian stocks advanced as accommodative monetary policy increased liquidity and, despite a resurgence of COVID-19 cases, India’s economic growth was among the world’s strongest as domestic demand improved and foreign inflows rose. Later in the reporting period, rising commodities prices and India’s heavy reliance on imported oil helped drive inflation, raising concerns about an economic slowdown despite strong growth data. Foreign outflows surged. Unemployment remained high and the central bank started to tighten monetary policy.

The information technology sector was the largest detractor from the Index’s return. The IT services industry, which benefited from the increasing role of digital technology in business as companies pursued digitization and increased demand for outsourced services, declined sharply late in the reporting period as higher costs weighed on profits, leading to uncertainty about the sustainability of demand after the pandemic-related surge in technology spending.

The financials sector also detracted from the Index’s return. Thrifts and mortgage financing companies declined despite strong loan, profit, and earnings growth, improving asset quality, and lower provisioning costs. However, relatively low overall asset quality and persistent inflation weighed on investor sentiment, especially after the Russian invasion of Ukraine and resulting sanctions dimmed the economic outlook for Russia’s major trading partners, including India.

In contrast, the utilities sector contributed substantially to the Index’s return. Electricity demand rose sharply and the supply of coal failed to keep pace, raising power prices. A series of companies under a multi-sector conglomerate with roots in commodities trading drove gains, rallying sharply as the conglomerate continued to expand.

Automobiles stocks in the consumer discretionary sector also drove contribution. Demand for vehicles increased and supply chain issues showed signs of easing, driving strong sales growth.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector   Percent of    
Total Investments(a)

Financials

  24.4%

Information Technology

  14.8   

Energy

  12.8   

Materials

  9.3   

Consumer Staples

  9.2   

Consumer Discretionary

  8.9   

Utilities

  7.1   

Industrials

  5.6   

Health Care

  4.6   

Communication Services

  2.7   

Real Estate

  0.6   

TEN LARGEST HOLDINGS

 

   
Security   Percent of    
Total Investments(a)

Reliance Industries Ltd.

  10.8%

Infosys Ltd.

  6.7   

ICICI Bank Ltd.

  6.1   

Housing Development Finance Corp. Ltd.

  5.6   

Tata Consultancy Services Ltd.

  3.9   

Hindustan Unilever Ltd.

  2.9   

Bajaj Finance Ltd.

  2.6   

Axis Bank Ltd.

  2.3   

Bharti Airtel Ltd.

  2.2   

Larsen & Toubro Ltd.

  1.8   
  (a)

Excludes money market funds.

 

 

 

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

 

Investment Objective

The iShares MSCI India Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization Indian equities, as represented by the MSCI India 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

    (4.78 )%(a)      4.73   11.26%       (4.78 )%(a)      25.99   190.69% 

Fund Market

    (5.48     4.62     11.13          (5.48     25.36     187.35    

Index

    (3.03     6.57     12.66            (3.03     37.46     229.41    

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

  (a) 

The NAV total return presented in the table for the one-year period differs from the same period return disclosed in the financial highlights. The total return in the financial highlights is calculated in the same manner but differs due to certain adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

 

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               $          989.80          $        3.71           $      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

  7


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

 

Portfolio Management Commentary

Indian small-capitalization equities declined during the reporting period as inflation weakened the country’s recovery from the coronavirus pandemic. Early in the reporting period, Indian stocks advanced as accommodative monetary policy increased liquidity and, despite a resurgence of COVID-19 cases, India’s economic growth was among the world’s strongest as domestic demand improved. Later in the reporting period, rising commodities prices and India’s heavy reliance on imported oil helped drive inflation, raising concerns about an economic slowdown. Small-capitalization stocks are generally more sensitive to economic and market shifts, and inflation tends to pressure their margins more than larger peers.

The healthcare sector was the largest detractor from the Index’s return, led by the pharmaceuticals industry. Rising costs pressured margins, leading to analyst downgrades and lowered guidance. COVID-19 test demand waned along with case numbers, weighing on sector earnings.

In the materials sector, which also detracted substantially from the Index’s return, construction materials and chemicals stocks declined amid rising costs. Concerns surrounding global growth also weighed on the sector.

In contrast, the industrials sector was a leading contributor to the Index’s return as manufacturing activity continued to rebound from the pandemic. Capital goods stocks benefited from rising business spending and strong order volumes, while fewer public health restrictions led to a resurgence of demand in the commercial and professional services industry.

The utilities sector also contributed to the Index’s return as regulatory issues receded. Electricity demand rose sharply and the supply of coal failed to keep pace, raising the price of power and coal. The real estate sector also bolstered the Index’s return, with stocks advancing as residential sales volumes rose and price increases outweighed increasing costs, while commercial developers benefited from reopening demand.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector   Percent of    
Total Investments(a)

Materials

  19.2%

Industrials

  18.3   

Consumer Discretionary

  16.2   

Financials

  15.4   

Health Care

  9.2   

Information Technology

  6.7   

Communication Services

  4.9   

Real Estate

  4.3   

Consumer Staples

  2.7   

Utilities

  2.2   

Energy

  0.9   

TEN LARGEST HOLDINGS

 

   
Security   Percent of    
Total Investments(a)

Crompton Greaves Consumer Electricals Ltd.

  1.3%

Tube Investments of India Ltd.

  1.3   

Ashok Leyland Ltd.

  1.2   

Indian Hotels Co. Ltd. (The)

  1.2   

Zee Entertainment Enterprises Ltd.

  1.2   

Voltas Ltd.

  1.2   

Laurus Labs Ltd.

  1.1   

Astral Ltd.

  1.0   

Max Healthcare Institute Ltd.

  1.0   

TVS Motor Co. Ltd.

  1.0   
  (a)

Excludes money market funds.

 

 

 

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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. 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

  9


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI India ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 0.5%            

Bharat Electronics Ltd.

    5,498,134     $ 21,008,272  
   

 

 

 
Airlines — 0.3%            

InterGlobe Aviation Ltd.(a)(b)

    434,584       10,852,640  
   

 

 

 
Auto Components — 0.9%            

Balkrishna Industries Ltd.

    348,972       8,864,963  

Bharat Forge Ltd.

    1,155,646       10,638,498  

MRF Ltd.

    8,607       9,174,382  

Samvardhana Motherson International Ltd.

    6,112,204       9,322,761  
   

 

 

 
      38,000,604  
Automobiles — 5.4%            

Bajaj Auto Ltd.

    313,407       15,963,027  

Eicher Motors Ltd.

    616,969       25,749,347  

Hero MotoCorp Ltd.

    495,960       17,470,286  

Mahindra & Mahindra Ltd.

    3,924,677       63,699,979  

Maruti Suzuki India Ltd.

    544,941       61,467,930  

Tata Motors Ltd.(b)

    7,488,372       43,609,224  
   

 

 

 
          227,959,793  
Banks — 11.7%            

AU Small Finance Bank Ltd.(a)

    748,146       5,883,597  

Axis Bank Ltd.

    10,249,570       95,520,749  

Bandhan Bank Ltd.(a)

    2,888,209       9,967,722  

ICICI Bank Ltd.

    23,198,848       254,383,367  

Kotak Mahindra Bank Ltd.

    2,507,269       59,482,875  

State Bank of India

    8,055,299       53,035,843  

Yes Bank Ltd.(b)

    50,882,548       10,429,153  
   

 

 

 
      488,703,306  
Beverages — 0.3%            

United Spirits Ltd.(b)

    1,311,718       13,258,688  
   

 

 

 
Biotechnology — 0.2%            

Biocon Ltd.

    1,883,237       7,286,670  
   

 

 

 
Chemicals — 3.9%            

Asian Paints Ltd.

    1,729,954       72,829,023  

Berger Paints India Ltd.

    1,096,354       9,169,202  

PI Industries Ltd.

    342,168       14,630,844  

Pidilite Industries Ltd.

    687,999       23,485,190  

SRF Ltd.

    668,866       21,107,947  

UPL Ltd.

    2,200,360       21,075,166  
   

 

 

 
      162,297,372  
Commercial Services & Supplies — 0.2%            

Indian Railway Catering & Tourism Corp. Ltd.

    1,083,112       9,500,391  
   

 

 

 
Construction & Engineering — 1.8%            

Larsen & Toubro Ltd.

    3,105,165       74,111,700  
   

 

 

 
Construction Materials — 2.4%            

ACC Ltd.

    339,054       9,715,386  

Ambuja Cements Ltd.

    2,688,338       13,785,358  

Grasim Industries Ltd.

    1,184,773       24,692,368  

Shree Cement Ltd.

    48,847       13,409,496  

UltraTech Cement Ltd.

    455,653       37,880,651  
   

 

 

 
      99,483,259  
Consumer Finance — 3.9%            

Bajaj Finance Ltd.

    1,224,588       110,520,658  

Cholamandalam Investment and Finance Co. Ltd.

    1,852,507       18,149,209  

Muthoot Finance Ltd.

    542,289       7,104,675  
Security   Shares     Value  
Consumer Finance (continued)            

SBI Cards & Payment Services Ltd.

    1,064,092     $ 12,201,164  

Shriram Transport Finance Co. Ltd.

    854,591       14,343,720  
   

 

 

 
      162,319,426  
Diversified Financial Services — 6.5%  

Bajaj Finserv Ltd.

    172,351       36,132,558  

Housing Development Finance Corp. Ltd.

    7,768,139       235,183,615  

Piramal Enterprises Ltd.

    3,588       47,343  
   

 

 

 
      271,363,516  
Diversified Telecommunication Services — 0.2%  

Indus Towers Ltd.

    3,043,533       7,568,515  
   

 

 

 
Electric Utilities — 2.9%            

Adani Transmission Ltd.(b)

    1,257,691       61,675,287  

Power Grid Corp. of India Ltd.

    14,156,385       40,530,738  

Tata Power Co. Ltd. (The)

    6,489,216       19,028,748  
   

 

 

 
          121,234,773  
Electrical Equipment — 0.5%            

Havells India Ltd.

    1,130,512       19,571,033  
   

 

 

 
Food & Staples Retailing — 1.0%            

Avenue Supermarts Ltd.(a)(b)

    730,351       41,054,660  
   

 

 

 
Food Products — 2.4%            

Britannia Industries Ltd.

    489,158       22,888,371  

Marico Ltd.

    2,329,578       15,293,356  

Nestle India Ltd.

    152,284       37,915,498  

Tata Consumer Products Ltd.

    2,495,360       25,220,763  
   

 

 

 
      101,317,988  
Gas Utilities — 1.8%            

Adani Total Gas Ltd.

    1,240,010       57,830,903  

GAIL India Ltd.

    7,013,758       11,913,765  

Indraprastha Gas Ltd.

    1,418,256       7,415,100  
   

 

 

 
      77,159,768  
Health Care Providers & Services — 0.6%            

Apollo Hospitals Enterprise Ltd.

    454,221       24,404,559  
   

 

 

 
Hotels, Restaurants & Leisure — 0.3%            

Jubilant Foodworks Ltd.

    1,786,713       13,609,817  
   

 

 

 
Independent Power and Renewable Electricity Producers — 2.3%  

Adani Green Energy Ltd.(b)

    1,428,767       43,171,392  

Adani Power Ltd.(b)

    3,481,249       17,777,520  

NTPC Ltd.

    17,491,741       35,855,583  
   

 

 

 
      96,804,495  
Industrial Conglomerates — 0.3%            

Siemens Ltd.

    321,420       11,540,420  
   

 

 

 
Insurance — 2.2%            

HDFC Life Insurance Co. Ltd.(a)

    4,290,181       30,744,321  

ICICI Lombard General Insurance Co. Ltd.(a)

    1,085,527       17,437,374  

ICICI Prudential Life Insurance Co. Ltd.(a)

    1,621,625       11,971,486  

SBI Life Insurance Co. Ltd.(a)

    2,031,404       33,570,443  
   

 

 

 
      93,723,624  
Interactive Media & Services — 0.4%            

Info Edge India Ltd.

    319,659       17,195,396  
   

 

 

 
Internet & Direct Marketing Retail — 0.2%            

Zomato Ltd.(b)

    10,660,074       7,620,092  
   

 

 

 
IT Services — 14.4%            

HCL Technologies Ltd.

    4,895,349       56,941,897  

 

 

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

Schedule of Investments    (continued)

August 31, 2022

  

iShares® MSCI India ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
IT Services (continued)            

Infosys Ltd.

    15,180,141     $     279,786,551  

Larsen & Toubro Infotech Ltd.(a)

    237,271       13,577,439  

Mindtree Ltd.

    260,193       10,587,242  

Mphasis Ltd.

    381,287       10,030,695  

Tata Consultancy Services Ltd.

    4,125,494       164,531,239  

Tech Mahindra Ltd.

    2,629,870       35,039,146  

Wipro Ltd.

    6,164,834       31,565,069  
   

 

 

 
      602,059,278  
Life Sciences Tools & Services — 0.6%            

Divi’s Laboratories Ltd.

    599,023       27,045,146  
   

 

 

 
Metals & Mining — 3.0%            

Hindalco Industries Ltd.

    6,061,605       32,875,718  

Jindal Steel & Power Ltd.

    1,842,277       9,912,781  

JSW Steel Ltd.

    3,260,477       27,039,578  

Tata Steel Ltd.

    33,069,035       44,398,564  

Vedanta Ltd.

    3,346,643       11,215,970  
   

 

 

 
      125,442,611  
Oil, Gas & Consumable Fuels — 12.8%            

Bharat Petroleum Corp. Ltd.

    3,903,567       15,990,523  

Coal India Ltd.

    6,953,050       20,316,718  

Hindustan Petroleum Corp. Ltd.

    2,882,374       8,748,709  

Indian Oil Corp. Ltd.

    12,745,754       11,373,145  

Oil & Natural Gas Corp. Ltd.

    11,354,893       19,656,608  

Petronet LNG Ltd.

    3,384,725       9,337,639  

Reliance Industries Ltd.

    13,729,555       449,780,838  
   

 

 

 
      535,204,180  
Personal Products — 4.2%            

Colgate-Palmolive India Ltd.

    552,357       11,597,803  

Dabur India Ltd.

    2,792,394       20,360,221  

Godrej Consumer Products Ltd.(b)

    1,845,940       21,263,165  

Hindustan Unilever Ltd.

    3,708,752       122,781,801  
   

 

 

 
      176,002,990  
Pharmaceuticals — 3.2%            

Aurobindo Pharma Ltd.

    1,190,720       8,106,693  

Cipla Ltd.

    2,184,667       28,309,637  

Dr. Reddy’s Laboratories Ltd.

    525,242       27,757,085  

Lupin Ltd.

    923,497       7,717,149  

Piramal Pharma Ltd., NVS

    2,143,944       5,759,859  

Sun Pharmaceutical Industries Ltd.

    4,328,203       48,303,678  

Torrent Pharmaceuticals Ltd.

    458,209       8,853,867  
   

 

 

 
      134,807,968  
Real Estate Management & Development — 0.6%        

DLF Ltd.

    2,792,744       13,490,426  

Godrej Properties Ltd.(b)

    564,541       9,846,582  
   

 

 

 
      23,337,008  
Security   Shares     Value  
Road & Rail — 0.2%            

Container Corp. of India Ltd.

    1,237,368     $ 10,733,530  
   

 

 

 
Software — 0.4%            

Tata Elxsi Ltd.

    154,567       17,241,007  
   

 

 

 
Specialty Retail — 0.3%            

Trent Ltd.

    818,191       14,310,230  
   

 

 

 
Textiles, Apparel & Luxury Goods — 1.7%        

Page Industries Ltd.

    27,682       17,636,672  

Titan Co. Ltd.

    1,601,533       51,896,543  
   

 

 

 
      69,533,215  
Tobacco — 1.3%            

ITC Ltd.

    13,338,413       53,304,027  
   

 

 

 
Trading Companies & Distributors — 1.2%        

Adani Enterprises Ltd.

    1,285,324       51,006,474  
   

 

 

 
Transportation Infrastructure — 0.6%        

Adani Ports & Special Economic Zone Ltd.

    2,381,650       24,918,013  
   

 

 

 
Wireless Telecommunication Services — 2.1%        

Bharti Airtel Ltd.

    9,907,410       89,745,700  
   

 

 

 

Total Long-Term Investments — 99.7%
(Cost: $3,997,305,344)

      4,173,642,154  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 1.0%            

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

    39,580,000       39,580,000  
   

 

 

 

Total Short-Term Securities — 1.0%
(Cost: $39,580,000)

      39,580,000  
   

 

 

 

Total Investments in Securities — 100.7%
(Cost: $4,036,885,344)

 

    4,213,222,154  

Liabilities in Excess of Other Assets — (0.7)%

 

    (27,603,849
   

 

 

 

Net Assets — 100.0%

    $     4,185,618,305  
   

 

 

 

 

(a) 

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

(b) 

Non-income producing security.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

 

 

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

  11


Table of Contents

Schedule of Investments    (continued)

August 31, 2022

  

iShares® MSCI India ETF

 

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

   $ 138,250,000      $        $(98,670,000) (a)    $      $      $ 39,580,000        39,580,000      $ 437,827      $  
          

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

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

       

SGX Nifty 50 Index

    543       09/29/22     $ 18,713     $ (452,971
       

 

 

 

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)

   $      $      $ 452,971      $      $      $      $ 452,971  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 Consolidated Statements of Operations was as follows:

 

 

 
     Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

 

 

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ (2,519,502    $      $      $      $ (2,519,502
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (520,405    $      $      $      $ (520,405
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 16,075,950      

 

 

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.

 

 

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

Schedule of Investments    (continued)

August 31, 2022

  

iShares® MSCI India ETF

 

Fair Value Hierarchy as of Period End (continued)

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

   $      $ 4,173,642,154      $      $ 4,173,642,154  

Money Market Funds

     39,580,000                      39,580,000  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $   39,580,000      $ 4,173,642,154      $           —      $ 4,213,222,154  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Liabilities

           

Futures Contracts

   $      $ (452,971    $      $ (452,971
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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

  13


Table of Contents

Consolidated Schedule of Investments

August 31, 2022

  

iShares® MSCI India Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 0.2%            

Bharat Dynamics Ltd.

    48,827     $ 496,848  
   

 

 

 
Air Freight & Logistics — 0.6%            

Allcargo Logistics Ltd.

    81,147       360,513  

Blue Dart Express Ltd.

    6,374       680,174  

Mahindra Logistics Ltd.(a)

    43,922       263,944  

TCI Express Ltd.

    15,251       335,738  

Transport Corp. of India Ltd.

    30,427       270,673  
   

 

 

 
      1,911,042  
Airlines — 0.1%            

SpiceJet Ltd.(b)

    327,337       188,554  
   

 

 

 
Auto Components — 5.0%            

Apollo Tyres Ltd.

    422,983       1,319,656  

Asahi India Glass Ltd.

    80,597       639,743  

Ceat Ltd.

    29,563       512,134  

Endurance Technologies Ltd.(a)

    37,413       698,402  

Exide Industries Ltd.

    509,178       1,016,777  

Mahindra CIE Automotive Ltd.

    151,499       517,580  

Minda Corp. Ltd.

    77,679       217,193  

Motherson Sumi Wiring India Ltd.

    1,682,572       1,709,456  

Sundaram Clayton Ltd.

    6,749       397,917  

Sundram Fasteners Ltd.

    125,953       1,313,456  

Suprajit Engineering Ltd.

    91,379       386,557  

Tube Investments of India Ltd.

    141,357       3,985,659  

UNO Minda Ltd.

    228,271       1,638,676  

Varroc Engineering Ltd.(a)(b)

    51,934       221,980  

ZF Commercial Vehicle Control Systems India Ltd.

    6,309       758,228  
   

 

 

 
        15,333,414  
Automobiles — 1.0%            

TVS Motor Co. Ltd.

    253,131       3,098,621  
   

 

 

 
Banks — 3.7%            

Canara Bank

    483,291       1,441,251  

City Union Bank Ltd.

    482,329       1,079,390  

Equitas Small Finance Bank Ltd.(a)(b)

    510,394       290,378  

Federal Bank Ltd.

    2,073,326       3,006,769  

IDFC First Bank Ltd.(b)

    4,058,614       2,470,502  

Indian Bank

    331,790       798,419  

Karur Vysya Bank Ltd. (The)

    521,196       442,796  

RBL Bank Ltd.(a)(b)

    590,937       892,008  

Yes Bank Ltd., (Acquired 03/16/20, Cost: $3,554,476)(b)(c)

    4,044,378       791,013  
   

 

 

 
      11,212,526  
Beverages — 0.5%            

Radico Khaitan Ltd.

    106,834       1,391,043  
   

 

 

 
Building Products — 2.1%            

Astral Ltd.

    120,433       3,131,512  

Blue Star Ltd.

    76,854       1,054,327  

Cera Sanitaryware Ltd.

    6,026       375,517  

Kajaria Ceramics Ltd.

    106,031       1,537,540  

Prince Pipes and Fittings Ltd.

    51,238       373,474  
   

 

 

 
      6,472,370  
Capital Markets — 3.6%            

Angel One Ltd.

    33,411       537,831  

BSE Ltd.

    88,416       715,489  

Central Depository Services India Ltd.

    68,206       1,053,141  

CRISIL Ltd.

    19,453       795,350  

Dhani Services Ltd.(b)

    342,442       276,559  
Security   Shares     Value  
Capital Markets (continued)        

Edelweiss Financial Services Ltd.

    689,166     $ 521,987  

ICICI Securities Ltd.(a)

    107,423       669,603  

IDFC Ltd.

    1,488,538       1,268,038  

IIFL Wealth Management Ltd.

    47,292       987,457  

Indian Energy Exchange Ltd.(a)

    584,826       1,165,529  

JM Financial Ltd.

    578,437       459,325  

Motilal Oswal Financial Services Ltd.

    49,513       474,574  

Multi Commodity Exchange of India Ltd.

    33,184       531,651  

Nippon Life India Asset Management Ltd.(a)

    165,074       620,746  

Tata Investment Corp. Ltd.

    20,095       401,845  

UTI Asset Management Co. Ltd.

    59,054       605,366  
   

 

 

 
        11,084,491  
Chemicals — 13.7%            

Aarti Industries Ltd.

    265,574       2,740,576  

Advanced Enzyme Technologies Ltd.

    60,780       203,562  

Akzo Nobel India Ltd.

    12,042       292,120  

Alkyl Amines Chemicals

    16,966       626,297  

Atul Ltd.

    19,705       2,253,706  

Balaji Amines Ltd.

    13,030       559,198  

BASF India Ltd.

    14,500       599,137  

Bayer CropScience Ltd.

    17,959       1,224,507  

Carborundum Universal Ltd.

    139,104       1,464,016  

Castrol India Ltd.

    527,012       750,441  

Chambal Fertilisers and Chemicals Ltd.

    221,036       962,652  

Chemplast Sanmar Ltd.(b)

    95,098       498,568  

Clean Science and Technology

    28,299       609,602  

Coromandel International Ltd.

    156,377       2,053,113  

Deepak Fertilisers & Petrochemicals Corp. Ltd.

    72,082       814,736  

Deepak Nitrite Ltd.

    90,839       2,229,130  

EID Parry India Ltd.

    106,302       703,222  

Fine Organic Industries Ltd.

    10,187       784,839  

Finolex Industries Ltd.

    332,755       628,669  

Galaxy Surfactants Ltd.

    14,168       579,125  

GHCL Ltd.

    82,959       616,995  

Gujarat Alkalies & Chemicals Ltd.

    24,075       265,539  

Gujarat Fluorochemicals Ltd.

    36,581       1,516,694  

Gujarat Narmada Valley Fertilizers & Chemicals Ltd.

    103,510       963,277  

Gujarat State Fertilizers & Chemicals Ltd.

    265,390       520,373  

Indigo Paints Ltd.

    12,528       261,637  

Jubilant Ingrevia Ltd.

    95,708       555,722  

Kansai Nerolac Paints Ltd.

    179,463       1,132,664  

Laxmi Organic Industries Ltd.

    87,191       357,134  

Linde India Ltd.

    28,400       1,212,194  

Navin Fluorine International Ltd.

    42,904       2,286,066  

NOCIL Ltd.

    131,831       432,472  

PCBL Ltd.

    224,595       383,873  

Polyplex Corporation Ltd.

    21,013       562,092  

Privi Specility Chemical Ltd.

    10,626       183,760  

Rain Industries Ltd.

    246,410       606,681  

Rallis India Ltd.

    103,900       292,205  

Rashtriya Chemicals & Fertilizers Ltd.

    187,512       230,653  

Rossari Biotech Ltd.

    17,948       219,763  

Sharda Cropchem Ltd.

    36,801       237,608  

Solar Industries India Ltd.

    36,160       1,503,913  

Sumitomo Chemical India Ltd.

    132,974       811,909  

Supreme Industries Ltd.

    84,601       2,076,470  

Supreme Petrochem Ltd.

    43,752       425,900  

Tata Chemicals Ltd.

    186,684       2,623,386  

 

 

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

Consolidated Schedule of Investments    (continued)

August 31, 2022

  

iShares® MSCI India Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Chemicals (continued)            

Vinati Organics Ltd.(b)

    34,106     $ 935,971  
   

 

 

 
      41,792,167  
Commercial Services & Supplies — 0.1%        

SIS Ltd.(b)

    48,258       272,625  
   

 

 

 
Communications Equipment — 0.4%        

Sterlite Technologies Ltd.

    238,462       508,464  

Tejas Networks Ltd.(a)(b)

    80,691       613,091  
   

 

 

 
          1,121,555  
Construction & Engineering — 2.9%        

Dilip Buildcon Ltd.(a)

    59,572       178,304  

Engineers India Ltd.

    333,618       282,628  

IRB Infrastructure Developers Ltd.

    160,881       472,443  

Kalpataru Power Transmission Ltd.

    90,457       460,977  

KEC International Ltd.

    171,122       868,701  

KNR Constructions Ltd.

    187,305       607,608  

NBCC India Ltd.

    832,881       356,344  

NCC Ltd./India

    526,921       457,491  

PNC Infratech Ltd.

    153,772       542,465  

Praj Industries Ltd.

    146,794       763,492  

Sterling and Wilson Renewable Energy Ltd.(b)

    51,752       190,994  

Voltas Ltd.

    286,484       3,567,187  
   

 

 

 
      8,748,634  
Construction Materials — 2.5%        

Birla Corp. Ltd.

    36,148       437,236  

Dalmia Bharat Ltd.

    99,831       1,910,338  

HeidelbergCement India Ltd.

    77,026       183,677  

India Cements Ltd. (The)

    164,328       465,301  

JK Cement Ltd.

    46,315       1,563,510  

JK Lakshmi Cement Ltd.

    79,149       465,108  

Nuvoco Vistas Corp. Ltd.(b)

    142,722       638,711  

Prism Johnson Ltd.(b)

    164,873       258,923  

Ramco Cements Ltd. (The)

    141,636       1,336,430  

Rhi Magnesita India Ltd.

    53,292       391,845  
   

 

 

 
      7,651,079  
Consumer Finance — 2.3%            

Cholamandalam Financial Holdings Ltd.

    125,039       1,044,067  

CreditAccess Grameen Ltd.(b)

    62,304       771,217  

Mahindra & Mahindra Financial Services Ltd.

    739,044       1,882,263  

Manappuram Finance Ltd.

    676,448       888,694  

MAS Financial Services Ltd.(a)

    21,122       197,660  

Paisalo Digital Ltd.

    316,248       295,917  

Poonawalla Fincorp Ltd.

    305,684       1,155,763  

Shriram City Union Finance Ltd.

    31,172       740,975  
   

 

 

 
      6,976,556  
Containers & Packaging — 0.1%        

EPL Ltd.

    188,221       400,040  
   

 

 

 
Diversified Financial Services — 2.0%            

Aditya Birla Capital Ltd.(b)

    611,556       863,774  

L&T Finance Holdings Ltd.

    988,986       971,338  

Piramal Enterprises Ltd.

    158,128       2,086,479  

REC Ltd.

    1,578,377       2,143,139  
   

 

 

 
      6,064,730  
Diversified Telecommunication Services — 1.3%        

HFCL Ltd.

    916,818       841,842  

Tata Communications Ltd.

    151,850       2,270,928  

Tata Teleservices Maharashtra Ltd.(b)

    650,862       888,342  
   

 

 

 
      4,001,112  
Security   Shares     Value  
Electric Utilities — 0.7%            

CESC Ltd.

    794,558     $ 806,491  

Torrent Power Ltd.

    192,057       1,393,942  
   

 

 

 
      2,200,433  
Electrical Equipment — 3.6%            

Amara Raja Batteries Ltd.

    125,139       793,860  

Bharat Heavy Electricals Ltd.(b)

    1,159,544       847,102  

CG Power and Industrial Solutions Ltd.(b)

    768,225       2,139,106  

Finolex Cables Ltd.

    81,385       467,299  

Graphite India Ltd.

    90,999       465,932  

HEG Ltd.

    17,726       277,280  

Hitachi Energy India Ltd.

    14,178       660,298  

KEI Industries Ltd.

    78,014       1,421,653  

Olectra Greentech Ltd.(b)

    54,491       418,857  

Polycab India Ltd.

    59,783       1,833,693  

Suzlon Energy Ltd.(b)

    6,077,889       616,980  

Triveni Turbine Ltd.

    109,887       279,831  

V-Guard Industries Ltd.

    231,573       654,825  
   

 

 

 
          10,876,716  
Electronic Equipment, Instruments & Components — 0.4%  

Redington India Ltd.

    728,635       1,359,539  
   

 

 

 
Entertainment — 0.8%            

Chennai Super Kings Cricket Ltd.(d)

    206,787       26  

Inox Leisure Ltd.(b)

    88,933       557,003  

Nazara Technologies Ltd.(b)

    22,294       181,508  

PVR Ltd.(b)

    60,957       1,384,785  

Saregama India Ltd.

    90,568       452,981  
   

 

 

 
      2,576,303  
Equity Real Estate Investment Trusts (REITs) — 1.4%        

Brookfield India Real Estate Trust(a)

    155,640       655,261  

Embassy Office Parks REIT

    568,179       2,587,372  

Mindspace Business Parks REIT(a)

    197,478       914,678  
   

 

 

 
      4,157,311  
Food & Staples Retailing — 0.1%        

Medplus Health Services Ltd.(b)

    47,593       435,787  
   

 

 

 
Food Products — 1.2%            

Avanti Feeds Ltd.

    53,857       311,252  

Balrampur Chini Mills Ltd.

    163,071       711,171  

Bombay Burmah Trading Co.

    22,953       259,852  

CCL Products India Ltd.

    98,450       588,958  

Gujarat Ambuja Exports Ltd.

    90,833       309,448  

Kaveri Seed Co. Ltd.

    27,333       155,656  

Shree Renuka Sugars Ltd.(b)

    850,557       493,793  

Triveni Engineering & Industries Ltd.

    95,312       278,763  

Zydus Wellness Ltd.

    21,130       422,738  
   

 

 

 
      3,531,631  
Gas Utilities — 1.1%            

Gujarat Gas Ltd.

    229,237       1,348,946  

Gujarat State Petronet Ltd.

    375,770       1,132,482  

Mahanagar Gas Ltd.

    72,366       786,307  
   

 

 

 
      3,267,735  
Health Care Equipment & Supplies — 0.1%        

Poly Medicure Ltd.

    38,020       403,841  
   

 

 

 
Health Care Providers & Services — 3.2%        

Aster DM Healthcare Ltd.(a)(b)

    164,793       454,429  

Dr Lal PathLabs Ltd.(a)

    49,962       1,591,720  

Fortis Healthcare Ltd.(b)

    603,371       2,212,882  

 

 

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

  15


Table of Contents

Consolidated Schedule of Investments    (continued)

August 31, 2022

  

iShares® MSCI India Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Providers & Services (continued)        

Krishna Institute Of Medical Sciences Ltd.(a)(b)

    37,309     $ 560,456  

Max Healthcare Institute Ltd.(b)

    645,786           3,121,008  

Metropolis Healthcare Ltd.(a)

    33,997       605,915  

Narayana Hrudayalaya Ltd.

    95,285       833,080  

Thyrocare Technologies Ltd.(a)

    21,581       166,672  

Vijaya Diagnostic Centre Pvt Ltd.(b)

    55,451       245,229  
   

 

 

 
      9,791,391  
Hotels, Restaurants & Leisure — 2.7%            

Chalet Hotel Ltd.(b)

    81,011       325,036  

Delta Corp. Ltd.

    84,044       219,584  

Devyani International Ltd.(b)

    320,946       730,864  

Easy Trip Planners Ltd.

    57,021       275,653  

EIH Ltd.(b)

    210,165       418,548  

Indian Hotels Co. Ltd. (The)

    1,040,600       3,682,277  

Lemon Tree Hotels Ltd.(a)(b)

    579,365       501,776  

Mahindra Holidays & Resorts India Ltd.(b)

    81,811       267,677  

Restaurant Brands Asia Ltd.(b)

    361,858       593,021  

Sapphire Foods India Ltd.(b)

    29,607       493,475  

Westlife Development Ltd.(b)

    94,070       757,517  
   

 

 

 
      8,265,428  
Household Durables — 3.6%            

Amber Enterprises India Ltd.(b)

    22,372       629,631  

Bajaj Electricals Ltd.

    61,206       943,779  

Crompton Greaves Consumer Electricals Ltd.

    801,773       4,079,712  

Dixon Technologies India Ltd.

    39,522       2,009,709  

Johnson Controls-Hitachi Air Conditioning India Ltd.(b)

    9,072       180,471  

Orient Electric Ltd.

    168,831       547,234  

Sheela Foam Ltd.(b)

    19,494       726,831  

Symphony Ltd.

    23,001       267,993  

TTK Prestige Ltd.

    55,348       662,363  

Whirlpool of India Ltd.

    42,249       960,500  
   

 

 

 
      11,008,223  
Household Products — 0.2%            

Jyothy Labs Ltd.

    195,728       461,413  
   

 

 

 
Independent Power and Renewable Electricity Producers — 0.4%  

Jaiprakash Power Ventures Ltd.(b)

    4,088,488       382,359  

RattanIndia Enterprises Ltd.(b)

    454,559       289,921  

Reliance Power Ltd.(b)

    3,183,161       661,272  
   

 

 

 
      1,333,552  
Industrial Conglomerates — 0.5%            

3M India Ltd.(b)

    3,751       1,091,094  

Godrej Industries Ltd.(b)

    66,835       400,621  
   

 

 

 
      1,491,715  
Insurance — 1.4%            

Max Financial Services Ltd.(b)

    298,805       3,070,666  

PB Fintech Ltd.(b)

    179,623       1,118,602  
   

 

 

 
      4,189,268  
Interactive Media & Services — 0.3%            

Brightcom Group Ltd.

    1,343,955       681,225  

Just Dial Ltd.(b)

    22,836       167,430  
   

 

 

 
      848,655  
Internet & Direct Marketing Retail — 0.1%            

CarTrade Tech Ltd.(b)

    25,095       200,518  
   

 

 

 
IT Services — 3.3%            

Coforge Ltd.

    36,517       1,609,547  

Computer Age Management Services Ltd.

    39,107       1,118,240  

eClerx Services Ltd.

    20,350       534,251  
Security   Shares     Value  
IT Services (continued)            

Firstsource Solutions Ltd.

    417,782     $ 555,539  

Happiest Minds Technologies Ltd.

    78,250       994,547  

Infibeam Avenues Ltd.

    1,267,677       249,641  

Mastek Ltd.

    18,041       422,747  

NIIT Ltd.

    98,064       421,938  

Persistent Systems Ltd.

    66,170           2,877,735  

Sonata Software Ltd.

    83,054       735,380  

Vakrangee Ltd.

    720,156       248,429  

Zensar Technologies Ltd.

    134,919       383,324  
   

 

 

 
      10,151,318  
Life Sciences Tools & Services — 0.4%            

Syngene International Ltd.(a)

    159,072       1,188,484  
   

 

 

 
Machinery — 6.8%            

AIA Engineering Ltd.

    56,536       1,838,426  

Ashok Leyland Ltd.

    1,955,089       3,739,561  

BEML Ltd.

    25,071       575,425  

Cochin Shipyard Ltd.(a)

    53,592       252,033  

Cummins India Ltd.

    166,156       2,467,616  

ESAB India Ltd.

    6,279       254,411  

GMM Pfaudler Ltd.

    26,286       543,882  

Greaves Cotton Ltd.

    121,310       255,628  

Grindwell Norton Ltd.

    58,992       1,617,975  

ISGEC Heavy Engineering Ltd.

    39,944       238,169  

Jamna Auto Industries Ltd.

    236,968       343,734  

KSB Ltd.

    16,149       384,529  

Lakshmi Machine Works Ltd.

    4,287       642,578  

MTAR Technologies Ltd.

    14,429       294,228  

Schaeffler India Ltd.

    62,460       2,363,933  

SKF India Ltd.

    32,926       1,998,035  

Thermax Ltd.

    55,551       1,672,238  

Timken India Ltd.

    30,058       1,132,054  
   

 

 

 
      20,614,455  
Marine — 0.1%            

Shipping Corp. of India Ltd.

    189,770       278,716  
   

 

 

 
Media — 2.0%            

Affle India Ltd.(b)

    70,997       1,142,514  

Network18 Media & Investments Ltd.(b)

    213,507       186,459  

Sun TV Network Ltd.

    104,491       652,653  

TV18 Broadcast Ltd.(b)

    598,834       302,707  

Zee Entertainment Enterprises Ltd.

    1,151,487       3,668,581  
   

 

 

 
      5,952,914  
Metals & Mining — 2.1%            

APL Apollo Tubes Ltd.(b)

    183,358       2,156,256  

Godawari Power and Ispat Ltd.

    57,488       210,530  

Hindustan Copper Ltd.

    256,170       375,785  

Jindal Stainless Hisar Ltd.(b)

    124,889       379,223  

Jindal Stainless Ltd.(b)

    199,482       317,355  

Lloyds Metals & Energy Ltd.

    100,258       173,468  

National Aluminium Co. Ltd.

    1,100,238       1,095,627  

Ratnamani Metals & Tubes Ltd.

    37,346       869,246  

Usha Martin Ltd.

    159,987       282,015  

Welspun Corp. Ltd.

    156,158       437,852  
   

 

 

 
      6,297,357  
Multiline Retail — 0.3%            

Shoppers Stop Ltd.(b)

    50,806       393,803  

V-Mart Retail Ltd.

    12,999       474,096  
   

 

 

 
      867,899  

 

 

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

Consolidated Schedule of Investments    (continued)

August 31, 2022

  

iShares® MSCI India Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Oil, Gas & Consumable Fuels — 0.9%            

Aegis Logistics Ltd.

    188,001     $ 687,464  

Great Eastern Shipping Co. Ltd. (The)

    123,612       879,311  

Gujarat Mineral Development Corp. Ltd.

    108,083       222,732  

Oil India Ltd.

    361,112       869,517  
   

 

 

 
      2,659,024  
Paper & Forest Products — 0.7%            

Century Plyboards India Ltd.

    74,547       622,455  

Century Textiles & Industries Ltd.

    67,397       721,535  

Greenpanel Industries Ltd.

    64,877       362,027  

JK Paper Ltd.

    101,541       527,614  
   

 

 

 
      2,233,631  
Personal Products — 0.7%            

Emami Ltd.

    264,429       1,600,720  

Gillette India Ltd.

    8,732       601,340  
   

 

 

 
      2,202,060  
Pharmaceuticals — 5.4%            

Aarti Drugs Ltd.

    50,301       271,369  

Ajanta Pharma Ltd.

    51,200       878,075  

Alembic Pharmaceuticals Ltd.

    78,418       634,585  

AstraZeneca Pharma India Ltd.

    6,542       252,383  

Caplin Point Laboratories Ltd.

    29,867       290,784  

Eris Lifesciences Ltd.(a)

    54,286       468,954  

FDC Ltd./India(b)

    68,660       225,987  

GlaxoSmithKline Pharmaceuticals Ltd.

    45,130       823,350  

Glenmark Pharmaceuticals Ltd.

    187,524       868,526  

Granules India Ltd.

    198,207       754,624  

Hikal Ltd.

    58,607       249,392  

Ipca Laboratories Ltd.

    185,832       2,102,806  

JB Chemicals & Pharmaceuticals Ltd.

    46,257       1,029,400  

Jubilant Pharmova Ltd.

    84,898       371,564  

Laurus Labs Ltd.(a)

    465,244       3,349,020  

Natco Pharma Ltd.

    109,243       840,120  

Procter & Gamble Health Ltd.

    10,025       528,843  

Sanofi India Ltd.

    10,711       830,412  

Shilpa Medicare Ltd.

    41,308       202,516  

Strides Pharma Science Ltd.

    76,910       316,394  

Sun Pharma Advanced Research Co. Ltd.(b)

    71,632       204,522  

Suven Pharmaceuticals Ltd.

    135,634       830,730  

Wockhardt Ltd.(b)

    68,470       204,729  
   

 

 

 
          16,529,085  
Professional Services — 0.4%            

Quess Corp. Ltd.(a)

    98,482       700,842  

TeamLease Services Ltd.(b)

    14,716       623,437  
   

 

 

 
      1,324,279  
Real Estate Management & Development — 2.9%  

Brigade Enterprises Ltd.

    153,382       974,076  

Indiabulls Real Estate Ltd.(b)

    575,139       618,266  

Mahindra Lifespace Developers Ltd.

    102,436       661,895  

NESCO Ltd.

    28,888       207,417  

Oberoi Realty Ltd.

    169,514       2,118,827  

Phoenix Mills Ltd. (The)

    130,804       2,287,607  

Prestige Estates Projects Ltd.

    186,884       1,061,294  

Sobha Ltd.

    50,944       441,146  

Sunteck Realty Ltd.

    69,159       409,467  
   

 

 

 
      8,779,995  
Semiconductors & Semiconductor Equipment — 0.1%  

Borosil Renewables Ltd.(b)

    60,551       423,455  
   

 

 

 
Security   Shares     Value  
Software — 2.3%            

Birlasoft Ltd.

    223,269     $ 883,297  

CE Info Systems Ltd.

    14,479       243,461  

Cyient Ltd.

    110,209       1,154,033  

Intellect Design Arena Ltd.

    107,247       787,198  

KPIT Technologies Ltd.

    219,099       1,513,750  

Oracle Financial Services Software Ltd.

    28,753       1,135,939  

Route Mobile Ltd.

    33,643       631,784  

Tanla Platforms Ltd.

    88,214       780,858  
   

 

 

 
          7,130,320  
Specialty Retail — 0.1%            

Go Fashion India Ltd.(b)

    25,000       360,579  
   

 

 

 
Textiles, Apparel & Luxury Goods — 3.3%            

Aditya Birla Fashion and Retail Ltd.(b)

    437,414       1,661,243  

Alok Industries Ltd.(b)

    1,646,526       395,329  

Bata India Ltd.

    68,480       1,655,538  

Garware Technical Fibres Ltd.

    12,359       538,138  

Indo Count Industries Ltd.

    93,934       191,104  

KPR Mill Ltd.

    113,826       856,053  

LUX Industries Ltd.

    9,888       223,832  

Rajesh Exports Ltd.

    78,494       578,377  

Raymond Ltd.

    44,433       529,370  

Relaxo Footwears Ltd.

    66,315       827,342  

Trident Ltd.

    1,663,766       753,763  

Vaibhav Global Ltd.

    65,843       284,348  

Vardhman Textiles Ltd.

    153,951       635,556  

VIP Industries Ltd.

    84,601       624,401  

Welspun India Ltd.

    330,871       317,227  
   

 

 

 
      10,071,621  
Thrifts & Mortgage Finance — 2.4%            

Aavas Financiers Ltd.(b)

    63,095       1,785,888  

Aptus Value Housing Finance India Ltd.(b)

    132,025       591,894  

Can Fin Homes Ltd.

    70,946       558,114  

Home First Finance Company India Ltd.(a)(b)

    35,314       425,527  

IIFL Finance Ltd.

    177,037       758,314  

Indiabulls Housing Finance Ltd.(b)

    438,819       740,109  

LIC Housing Finance Ltd.

    402,982       2,047,608  

PNB Housing Finance Ltd.(a)(b)

    77,940       338,054  
   

 

 

 
      7,245,508  
Tobacco — 0.1%            

Godfrey Phillips India Ltd.

    16,939       235,133  
   

 

 

 
Trading Companies & Distributors — 0.4%            

Apollo Tricoat Tubes Ltd.(b)

    28,099       326,045  

IndiaMART Intermesh Ltd.(a)

    18,189       993,783  
   

 

 

 
      1,319,828  
Transportation Infrastructure — 0.5%            

GMR Infrastructure Ltd.(b)

    2,813,998       1,256,651  

Gujarat Pipavav Port Ltd.

    351,278       381,451  
   

 

 

 
      1,638,102  
Wireless Telecommunication Services — 0.5%  

Vodafone Idea Ltd.(b)

    12,834,877       1,439,168  
   

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $214,066,225)

      303,559,797  
   

 

 

 

 

 

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

  17


Table of Contents

Consolidated Schedule of Investments  (continued)

August 31, 2022

  

iShares® MSCI India Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Short-Term Securities            
Money Market Funds — 0.6%            

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

    1,770,000     $ 1,770,000  
   

 

 

 

Total Short-Term Securities — 0.6%
(Cost: $1,770,000)

      1,770,000  
   

 

 

 

Total Investments in Securities — 100.2%
(Cost: $215,836,225)

      305,329,797  

Liabilities in Excess of Other Assets — (0.2)%

 

    (529,896
   

 

 

 

Net Assets — 100.0%

    $   304,799,901  
   

 

 

 

 

(a) 

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

(b) 

Non-income producing security.

(c) 

Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $791,013, representing 0.3% of its net assets as of period end, and an original cost of $3,554,476.

(d) 

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

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

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

  $ 7,290,000     $     $ (5,520,000 )(a)    $     $     $ 1,770,000       1,770,000     $ 17,569     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

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

           

SGX Nifty 50 Index

     37        09/29/22      $ 1,275      $ (38,002
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Consolidated 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)

   $      $      $ 38,002      $      $      $      $ 38,002  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Consolidated Schedule of Investments. In the Consolidated 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).

 

 

 

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Table of Contents

Consolidated Schedule of Investments    (continued)

August 31, 2022

  

iShares® MSCI India 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 Consolidated 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

   $      $      $ (248,608    $      $      $      $ (248,608
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (49,006    $      $      $      $ (49,006
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — long

   $ 1,137,132  

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

   $ 1,184,259        $ 302,375,512        $ 26        $ 303,559,797  

Money Market Funds

     1,770,000                            1,770,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $   2,954,259        $ 302,375,512        $     26        $ 305,329,797  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $        $ (38,002      $        $ (38,002
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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

  19


Table of Contents

 

Statements of Assets and Liabilities

August 31, 2022

 

    

iShares

MSCI India ETF

    

iShares

MSCI India

Small-Cap

ETF

(Consolidated)

 

ASSETS

    

Investments, at value — unaffiliated(a)

  $ 4,173,642,154      $ 303,559,797  

Investments, at value — affiliated(b)

    39,580,000        1,770,000  

Cash

           4,011  

Foreign currency, at value(c)

    14,177,544        286,898  

Cash pledged for futures contracts

    26,000        46,000  

Receivables:

    

Investments sold

    12,301,010        3,691,781  

Capital shares sold

    12,427,599         

Dividends — unaffiliated

    4,425,446        255,025  

Dividends — affiliated

    50,327        7,080  

Other assets

           147,468  
 

 

 

    

 

 

 

Total assets

    4,256,630,080        309,768,060  
 

 

 

    

 

 

 

LIABILITIES

    

Bank overdraft

    21,954         

Deferred foreign capital gain tax

    29,998,706        4,739,617  

Payables:

    

Investments purchased

    30,251,505         

Variation margin on futures contracts

    456,483        38,422  

Investment advisory fees

    2,258,199        190,120  

Other liabilities

    8,024,928         
 

 

 

    

 

 

 

Total liabilities

    71,011,775        4,968,159  
 

 

 

    

 

 

 

NET ASSETS

  $ 4,185,618,305      $ 304,799,901  
 

 

 

    

 

 

 

NET ASSETS CONSIST OF

    

Paid-in capital

  $ 3,185,268,379      $ 275,520,833  

Accumulated earnings

    1,000,349,926        29,279,068  
 

 

 

    

 

 

 

NET ASSETS

  $ 4,185,618,305      $ 304,799,901  
 

 

 

    

 

 

 

NET ASSET VALUE

    

Shares outstanding

    96,850,000        5,600,000  
 

 

 

    

 

 

 

Net asset value

  $ 43.22      $ 54.43  
 

 

 

    

 

 

 

Shares authorized

    Unlimited        Unlimited  
 

 

 

    

 

 

 

Par value

    None        None  
 

 

 

    

 

 

 

(a) Investments, at cost — unaffiliated

  $ 3,997,305,344      $ 214,066,225  

(b) Investments, at cost — affiliated

  $ 39,580,000      $ 1,770,000  

(c)  Foreign currency, at cost

  $ 14,173,530      $ 285,778  

See notes to financial statements.

 

 

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Table of Contents

 

Consolidated Statements of Operations

Year Ended August 31, 2022

 

   

iShares

MSCI India ETF

   

iShares

MSCI India
Small-Cap

ETF

 

 

 

INVESTMENT INCOME

 

 

Dividends — unaffiliated

  $ 78,893,106     $ 3,591,556  

Dividends — affiliated

    437,827       17,569  

Foreign taxes withheld

    (17,155,608     (703,137
 

 

 

   

 

 

 

Total investment income

    62,175,325       2,905,988  
 

 

 

   

 

 

 

EXPENSES

   

Investment advisory fees

    34,710,970       2,625,875  

Commitment fees

    43,057       3,824  

Professional fees

    217       217  

Mauritius income taxes

    295       295  

Interest expense

    1,820,328        
 

 

 

   

 

 

 

Total expenses

    36,574,867       2,630,211  
 

 

 

   

 

 

 

Net investment income

    25,600,458       275,777  
 

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

   

Net realized gain (loss) from:

   

Investments — unaffiliated(a)

    2,105,981,898       30,172,750  

Futures contracts

    (2,519,502     (248,608

Foreign currency transactions

    (21,959,227     (666,991
 

 

 

   

 

 

 
    2,081,503,169       29,257,151  
 

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

   

Investments — unaffiliated(b)

    (2,522,935,749     (53,499,633

Futures contracts

    (520,405     (49,006

Foreign currency translations

    (143,934     (6,671
 

 

 

   

 

 

 
    (2,523,600,088     (53,555,310
 

 

 

   

 

 

 

Net realized and unrealized loss

    (442,096,919     (24,298,159
 

 

 

   

 

 

 

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ (416,496,461   $ (24,022,382
 

 

 

   

 

 

 

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

  $ (148,141,012   $ (4,198,016

(b) Net of reduction in deferred foreign capital gain tax of

  $ 147,715,180     $ 4,015,952  

See notes to financial statements.

 

 

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

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Table of Contents

 

Consolidated Statements of Changes in Net Assets

 

          

iShares

MSCI India ETF

         

iShares

MSCI India Small-Cap ETF

 
 

 

 

   

 

 

 
   

Year Ended

08/31/22

   

Year Ended

08/31/21

         

Year Ended

08/31/22

    Year Ended
08/31/21
 

 

 

INCREASE (DECREASE) IN NET ASSETS

            

OPERATIONS

            

Net investment income (loss)

     $ 25,600,458     $ 16,931,383             $ 275,777     $ (33,382

Net realized gain

       2,081,503,169       6,980,789         29,257,151       20,967,516  

Net change in unrealized appreciation (depreciation)

       (2,523,600,088     1,743,084,666         (53,555,310     110,021,003  
    

 

 

   

 

 

     

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

       (416,496,461     1,766,996,838         (24,022,382     130,955,137  
    

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

            

From net investment income

       (374,889,807     (8,540,172       (5,222,073     (268,669

Return of capital

                           (1,270
    

 

 

   

 

 

     

 

 

   

 

 

 

Decrease in net assets resulting from distributions to shareholders

       (374,889,807     (8,540,172       (5,222,073     (269,939
    

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

            

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

       (1,373,587,175     1,498,302,314         4,578,598       5,010,592  
    

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS

            

Total increase (decrease) in net assets

       (2,164,973,443     3,256,758,980         (24,665,857     135,695,790  

Beginning of year

       6,350,591,748       3,093,832,768         329,465,758       193,769,968  
    

 

 

   

 

 

     

 

 

   

 

 

 

End of year

     $ 4,185,618,305     $ 6,350,591,748       $ 304,799,901     $ 329,465,758  
    

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) 

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

See notes to financial statements.

 

 

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Table of Contents

Consolidated Financial Highlights

(For a share outstanding throughout each period)

 

    iShares MSCI India ETF  
 

 

 

 
    Year Ended
08/31/22
    Year Ended
08/31/21
    Year Ended
08/31/20
    Year Ended
08/31/19
    Year Ended
08/31/18
 

 

 

Net asset value, beginning of year

  $ 48.79     $ 33.37     $ 32.38     $ 35.68     $ 34.20  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    0.21       0.14       0.14       0.29       0.25  

Net realized and unrealized gain (loss)(b)

    (2.87     15.35       0.96       (3.00     1.54  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    (2.66     15.49       1.10       (2.71     1.79  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

         

From net investment income

    (2.91     (0.07     (0.11     (0.49     (0.31

Return of capital

                      (0.10      
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (2.91     (0.07     (0.11     (0.59     (0.31
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of year

  $ 43.22     $ 48.79     $ 33.37     $ 32.38     $ 35.68  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

         

Based on net asset value

    (5.66 )%      46.54     3.40     (7.61 )%      5.26
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(e)

         

Total expenses

    0.68     0.65     0.69     0.69     0.68
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    0.47     0.35     0.43     0.86     0.72
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

         

Net assets, end of year (000)

  $ 4,185,618     $ 6,350,592     $ 3,093,833     $ 4,899,749     $ 5,082,120  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(f)

    95 %(g)       25 %(g)       25 %(g)       9 %(g)       10 %(g)  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(a)   Based on average shares outstanding.

    

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

   

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

    

(d)   Where applicable, assumes the reinvestment of distributions.

    

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

    

(f)   Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”).

    

(g) Portfolio turnover rate excluding cash creations was as follows:

    91     17     19     6     5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

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

  23


Table of Contents

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

          iShares MSCI India Small-Cap ETF  
 

 

 

 
    Year Ended
08/31/22
    Year Ended
08/31/21
    Year Ended
08/31/20
    Year Ended
08/31/19
    Year Ended
08/31/18
 

 

 

Net asset value, beginning of year

    $ 57.80        $ 34.60        $ 33.39        $ 44.10        $ 46.27  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income (loss)(a)

      0.04          (0.01        0.15          0.10          (0.00 )(b)  

Net realized and unrealized gain (loss)(c)

      (2.64        23.26          1.88          (10.60        (1.06
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net increase (decrease) from investment operations

      (2.60        23.25          2.03          (10.50        (1.06
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Distributions(d)

                       

From net investment income

      (0.77        (0.05        (0.82        (0.21        (0.63

Return of capital

               (0.00 )(b)                            (0.48
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total distributions

      (0.77        (0.05        (0.82        (0.21        (1.11
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net asset value, end of year

    $ 54.43        $ 57.80        $ 34.60        $ 33.39        $ 44.10  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total Return(e)

                       

Based on net asset value

      (4.61 )%         67.25        6.35        (23.88 )%         (2.36 )% 
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Ratios to Average Net Assets(f)

                       

Total expenses

      0.74        0.74        0.81        0.76        0.77
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income (loss)

      0.08        (0.01 )%         0.45        0.28        (0.00 )%(g) 
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Supplemental Data

                       

Net assets, end of year (000)

    $ 304,800        $ 329,466        $ 193,770        $ 270,433        $ 282,264  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Portfolio turnover rate(h)

      56 %(i)          55 %(i)          32 %(i)          24 %(i)          49 %(i)  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

(a)  Based on average shares outstanding.

   

(b)  Rounds to less than $0.01.

   

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

   

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

   

(e)  Where applicable, assumes the reinvestment of distributions.

   

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

    

(g)  Rounds to less than 0.01%.

   

(h)  Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”).

   

(i)  Portfolio turnover rate excluding cash creations was as follows:

      37        37        28        19        31
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

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

Notes to Financial Statements

 

 

1.

ORGANIZATION

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

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

 

   
iShares ETF   Diversification    
Classification    

MSCI India

  Non-diversified    

MSCI India Small-Cap

  Diversified    

Basis of Consolidation: The accompanying consolidated financial statements for each Fund includes the accounts of its subsidiary in the Republic of Mauritius, which is a wholly-owned subsidiary (each, a “Subsidiary”) of the Fund that invests in Indian securities. Through this investment structure, each Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. The net assets of the Subsidiary of the iShares MSCI India ETF and iShares MSCI India Small-Cap ETF as of period end were $0 and $302,909,156, which is 0.0% and 99.4% of each Fund’s consolidated net assets. Intercompany accounts and transactions, if any, have been eliminated.

Effective August 8, 2022, iShares MSCI India ETF transferred all of the assets of MSCI India’s wholly owned Mauritius Subsidiary to MSCI India through on-exchange transactions in India. MSCI India recognized a net realized gain of $1,964,159,904 as a result of this transaction. After the transfer, MSCI India began making new investments in India directly. On August 29, 2022, MSCI India’s Subsidiary was dissolved.

 

2.

SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

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

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Consolidated Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2022, if any, are disclosed in the Statements of Assets and Liabilities.

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

Each Fund has conducted investment activities in India through its Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”) between India and Mauritius. In order to be eligible to claim benefits under the DTAA, each Subsidiary must have commercial substance, on an annual basis, to satisfy certain tests

 

 

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

  25


Table of Contents

Notes to Financial Statements    (continued)

 

and conditions, including the establishment and maintenance of valid tax residence in Mauritius, have the place of effective management outside of India, and related requirements. Each Fund has obtained a current tax residence certificate issued by the Mauritian Revenue Authorities.

Based upon current interpretation and practice of the current tax laws in India and Mauritius and the DTAA, each Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, each Subsidiary is entitled to a tax credit equivalent to the higher of the actual foreign tax incurred or 80% of the Mauritius tax on its foreign source income, thus reducing its maximum effective tax rate to 3% up to June 30, 2021. After June 30, 2021, under the new tax regime and subject to meeting the necessary substance requirements as required under the Financial Services Act 2007 (as amended by the Finance Act 2018) and such guidelines issued by the Financial Services Commission (the “FSC”), each Subsidiary is entitled to either (a) a foreign tax credit equivalent to the actual foreign tax suffered on its foreign income against each Subsidiary’s tax liability computed at 15% on such income, or (b) a partial exemption of 80% of some of the income derived, including interest income or foreign source dividends. Taxes on income, if any, are paid by each Subsidiary and are disclosed in its Consolidated Statements of Operations. Any dividends paid by a Subsidiary to its Fund are not subject to tax in Mauritius. Each Subsidiary is currently exempt from tax in Mauritius on any gains from the sale of securities.

The DTAA provides that capital gains will be taxable in India with respect to the sale of shares acquired on or after April 1, 2017. Capital gains arising from shares acquired before April 1, 2017, regardless of when they are sold, will continue to be exempt from taxation under the amended DTAA, assuming requirements for eligibility under the DTAA are satisfied. There can be no assurance, however, that the DTAA will remain in effect during the Subsidiary’s existence or that it will continue to enjoy its benefits on the shares acquired prior to April 1, 2017.

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

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

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

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS