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MARCH 31, 2022 |
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2022 Annual Report
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iShares Trust
· iShares Biotechnology ETF | IBB | NASDAQ
· iShares Expanded Tech Sector ETF | IGM | NYSE Arca
· iShares Expanded Tech-Software Sector ETF | IGV | Cboe BZX
· iShares North American Natural Resources ETF | IGE | Cboe BZX
· iShares North American Tech-Multimedia Networking ETF | IGN | NYSE Arca
· iShares Semiconductor ETF | SOXX | NASDAQ
Dear Shareholder,
The 12-month reporting period as of March 31, 2022 saw a continuation of the resurgent growth that followed the initial coronavirus (or “COVID-19”) pandemic reopening, albeit at a slower pace. The global economy weathered the emergence of several variant strains and the resulting peaks and troughs in infections amid optimism that increasing vaccinations and economic adaptation could help contain the pandemic’s disruptions. However, rapid changes in consumer spending led to supply constraints and elevated inflation. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the invasion has presented challenges for both investors and policymakers.
Equity prices were mixed, as persistently high inflation drove investors’ expectations for higher interest rates, which particularly weighed on relatively high valuation growth stocks and economically sensitive small-capitalization stocks. Overall, small-capitalization U.S. stocks declined, while large-capitalization U.S. stocks posted a strong advance. International equities from developed markets gained slightly, although emerging market stocks declined, 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 during the reporting period as the economy expanded rapidly and inflation reached its highest annualized reading in decades. The corporate bond market also faced inflationary headwinds, although the improving economy assuaged credit concerns and high-yield corporate bonds consequently declined less than investment-grade corporate bonds.
The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is growing faster than expected, raised interest rates in March 2022, the first increase of this business cycle. Furthermore, the Fed wound down its bond-buying programs and raised the prospect of reversing the flow and reducing its balance sheet. Continued high inflation and the Fed’s new tone led many analysts to anticipate that the Fed will continue to raise interest rates multiple times throughout the year.
Looking ahead, however, the horrific war in Ukraine has significantly clouded the outlook for the global economy, leading to major volatility in energy and metal markets. Sanctions on Russia, Europe’s top energy supplier, and general wartime disruption are likely to drive already-high commodity prices even higher. Sharp increases in energy prices will exacerbate inflationary pressure while also constraining economic growth. Combating inflation without stifling a recovery, while buffering against ongoing supply and price shocks amid the ebb and flow of the pandemic, 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 err on the side of protecting employment, even at the expense of higher inflation.
In this environment, we favor an overweight to equities, as valuations have become more attractive and inflation-adjusted interest rates remain low. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long term. We favor U.S. equities due to strong earnings momentum, while Japanese equities should benefit from supportive monetary and fiscal policy. We are underweight credit overall, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities for additional yield. We believe that international diversification and a focus on sustainability and quality can help provide portfolio resilience.
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.
Sincerely,
Rob Kapito
President, BlackRock, Inc.
Rob Kapito
President, BlackRock, Inc.
Total Returns as of March 31, 2022 | ||||
6-Month | 12-Month | |||
U.S.
large cap equities |
5.92% | 15.65% | ||
U.S.
small cap equities |
(5.55) | (5.79) | ||
International
equities |
(3.38) | 1.16 | ||
Emerging
market equities |
(8.20) | (11.37) | ||
3-month
Treasury bills |
0.05 | 0.07 | ||
U.S.
Treasury securities |
(6.04) | (3.31) | ||
U.S.
investment grade bonds |
(5.92) | (4.15) | ||
Tax-exempt
municipal bonds |
(5.55) | (4.47) | ||
U.S.
high yield bonds |
(4.16) | (0.66) | ||
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
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iShares Trust
Domestic Market Overview
U.S. stocks advanced for the 12 months ended March 31, 2022 (“reporting period”), when the Russell 3000® Index, a broad measure of U.S. equity market performance, returned 11.92%. The strengthening economy supported equities, as high consumer spending drove robust growth, and most remaining coronavirus pandemic-related restrictions were eased. Increased economic activity led to strong corporate earnings as companies reaped the benefits of the recovery. Nonetheless, significant challenges emerged, particularly during the second half of the reporting period, including high inflation, rising interest rates, and the impacts of Russia’s invasion of Ukraine.
The U.S. economic recovery was powered primarily by consumers, who were supported by strong household balance sheets. Prior to the beginning of the reporting period, fiscal stimulus and business closures led to record-high personal savings rates. This allowed consumers to spend at an elevated level throughout much of the reporting period, as pent-up demand was released. The ensuing acceleration in economic activity allowed the U.S. to reach and then surpass its pre-pandemic output level. Hiring increased as businesses restored capacity, and unemployment decreased substantially, falling to 3.6% in March 2022.
The growing economy and rapid increases in consumer spending drove a significant rise in inflation. Supply chains for many goods were disrupted by the pandemic and were unable to quickly adapt to the rapid rebound in demand. In one prominent example of this dynamic, a global shortage of semiconductors created bottlenecks in the production of many goods, including automobiles. Consequently, the price of used cars rose sharply during the reporting period and was a notable factor in overall inflation. Oil prices also rose significantly as demand increased, and the supply of oil was constrained by a lack of investment. The strong job market led to higher wages, particularly at the lower end of the market. These factors led to higher prices in many areas of the economy. By the end of the reporting period the consumer price index, a widely used measure of prices in the U.S., grew at the fastest rate since 1982.
Rising inflation led to a shift in policy from the U.S. Federal Reserve Bank (“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 in the second half of the reporting period in an attempt to prevent runaway inflation. The Fed slowed and then ended its bond-buying activities and discussed plans to begin reducing its balance sheet by selling bonds later in 2022. In March 2022, it raised short-term interest rates and indicated that further increases could be necessary. Interest rates rose significantly in anticipation of further tightening, leading to higher borrowing costs for businesses.
Russia’s invasion of Ukraine in late February 2022 raised the prospect of substantial disruptions to the global economy and increased uncertainty in financial markets. The invasion was met with widespread condemnation and sanctions imposed by many countries on the Russian state, businesses, and individuals. This led to sharp volatility in energy markets, as Russia is a top producer of both oil and natural gas. Furthermore, both Russia and Ukraine are notable exporters of wheat, and the war’s disruption led to concerns surrounding food prices.
4 |
2 0 2 2 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of March 31, 2022 | iShares® Biotechnology ETF |
Investment Objective
The iShares Biotechnology ETF (the “Fund”) (formerly the iShares Nasdaq Biotechnology ETF) seeks to track the investment results of an index composed of U.S.-listed equities in the biotechnology sector, as represented by the ICE Biotechnology 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 |
(13.22 | )% | 6.14 | % | 12.45% | (13.22 | )% | 34.68 | % | 223.41 | % | |||||||||||||||
Fund Market |
(13.28 | ) | 6.15 | 12.46 | (13.28 | ) | 34.80 | 223.58 | ||||||||||||||||||
Index(a) |
(12.88 | ) | 6.51 | 12.80 | (12.88 | ) | 37.06 | 233.37 | ||||||||||||||||||
Nasdaq Biotechnology Index |
(11.16 | ) | 6.93 | 13.02 | (11.16 | ) | 39.76 | 239.94 | ||||||||||||||||||
ICE Biotechnology Index(b) |
N/A | N/A | N/A | N/A | N/A | N/A |
GROWTH OF $10,000 INVESTMENT
(AT NET ASSET VALUE)
(a) |
Index performance through June 20, 2021 reflects the performance of the NASDAQ Biotechnology Index. Index performance beginning on June 21, 2021 reflects the performance of the ICE Biotechnology Index, which, effective as of June 21, 2021, replaced the NASDAQ Biotechnology Index as the underlying index of the fund. |
(b) |
The inception date of the ICE Biotechnology Index was April 13, 2021. The cumulative total return for this index for the period April 13, 2021 through March 31, 2022 was -10.97%. |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 17 for more information.
Expense Example
Actual |
Hypothetical 5% Return | |||||||||||||||||||||||||||||
Beginning Account Value (10/01/21) |
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Ending Account Value (03/31/22) |
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Expenses Paid During the Period |
(a) |
|
Beginning Account Value (10/01/21) |
|
|
Ending Account Value (03/31/22) |
|
|
Expenses Paid During the Period |
(a) |
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Annualized Expense Ratio |
| ||||||||||||
$ 1,000.00 |
$ 806.50 | $ 1.98 | $ 1,000.00 | $ 1,022.70 | $ 2.22 | 0.44 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information. |
F U N D S U M M A R Y |
5 |
Fund Summary as of March 31, 2022 (continued) | iShares® Biotechnology ETF |
Portfolio Management Commentary
Biotechnology stocks declined significantly during the reporting period as investor appetite for stocks with high valuations and little to no earnings also worked against the industry. Despite ongoing innovation, new drug development, and the rapid development and deployment of a COVID-19 vaccine, costs associated with obtaining drug approvals remained high, constraining profits. In response to higher drug prices, some governments proposed price controls even as the policies that govern healthcare in the U.S. continued to change. Pricing and payment structures were under pressure from payers, including healthcare providers and insurers. Furthermore, the dollar volume of industry mergers and acquisitions decreased significantly year over year.
Biotechnology companies grappled with drug efficacy trials and public perception regarding the efficacy of a new Alzheimer’s drug, along with regulatory uncertainty and auditing requirements. The Delta and Omicron variants of COVID-19 drove closures that limited companies’ ability to test new drugs, which in turn constrained product development. Concern over delisting weighed on Chinese biotechnology firms that withheld their financial disclosures from U.S. regulators. A company in the biotechnology industry failed to get its COVID-19 vaccine approved in the U.S. and struggled with distribution in markets where it was approved amid production problems.
Life sciences tools and services stocks also detracted as a surge in Omicron COVID-19 cases limited both customers’ capacity for using medical devices and companies’ capacity for producing them. Stocks of genomic analysis companies lost ground as investor sentiment weakened, despite promising market penetration.
Healthcare equipment and supplies stocks also detracted from the Index’s return. Higher research, development, and administrative expenses weighed on profits in the industry despite higher revenues, as trials enrolled their final patients to move new cancer treatment products to market.
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent
of Total Investments(a) | |
Biotechnology |
75.9% | |
Life Sciences Tools & Services |
20.8 | |
Pharmaceuticals |
2.1 | |
Other (each representing less than 1%) |
1.2 |
TEN LARGEST HOLDINGS
Security | Percent
of Total Investments(a) | |
Amgen Inc. |
8.3% | |
Gilead Sciences Inc. |
6.9 | |
Regeneron Pharmaceuticals Inc. |
6.7 | |
Vertex Pharmaceuticals Inc. |
6.2 | |
Moderna Inc. |
5.6 | |
Illumina Inc. |
4.2 | |
IQVIA Holdings Inc. |
3.9 | |
BioNTech SE |
3.1 | |
Biogen Inc. |
2.9 | |
Mettler-Toledo International Inc. |
2.9 |
(a) |
Excludes money market funds. |
6 |
2 0 2 2 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of March 31, 2022 | iShares® Expanded Tech Sector ETF |
Investment Objective
The iShares Expanded Tech Sector ETF (the “Fund”) seeks to track the investment results of an index composed of North American equities in the technology sector and select North American equities from communication services and consumer discretionary sectors, as represented by the S&P North American Expanded Technology Sector IndexTM (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 |
7.76 | % | 23.44 | % | 19.34% | 7.76 | % | 186.65 | % | 486.10 | % | |||||||||||||||
Fund Market |
7.88 | 23.48 | 19.36 | 7.88 | 187.10 | 486.86 | ||||||||||||||||||||
Index |
8.20 | 23.98 | 19.88 | 8.20 | 192.93 | 512.88 |
GROWTH OF $10,000 INVESTMENT
(AT NET ASSET VALUE)
Index performance through December 23, 2018 reflects the performance of the S&P North American Technology Sector IndexTM. Index Performance beginning on December 24, 2018 reflects the performance of the S&P North American Expanded Technology Sector IndexTM.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 17 for more information.
Expense Example
Actual |
Hypothetical 5% Return | |||||||||||||||||||||||||||||
Beginning Account Value (10/01/21) |
|
Ending Account Value (03/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (10/01/21) |
|
|
Ending Account Value (03/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||||
$ 1,000.00 |
$ 962.10 | $ 1.96 | $ 1,000.00 | $ 1,022.90 | $ 2.02 | 0.40 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information. |
F U N D S U M M A R Y |
7 |
Fund Summary as of March 31, 2022 (continued) | iShares® Expanded Tech Sector ETF |
Portfolio Management Commentary
North American technology stocks advanced sharply during the reporting period, driven primarily by large companies benefiting from increased uptake of technology. U.S. companies drove the Index’s return, representing approximately 99% of the Index on average for the reporting period. Increased time at home drove strong demand for computing products for both work and leisure. Strong global demand for microchips for an increasing array of products and ongoing migration to the cloud due to the pandemic bolstered profits from cloud computing services.
The U.S. technology hardware and equipment industry was the largest contributor to the Index’s return. Retail sales of computing devices rose, leading to record earnings despite ongoing supply chain challenges. Increased demand for subscription services, including music and streaming video, drove rising revenues. New product releases, especially improved cell phones, and strong sales of wearable technologies such as earbuds boosted revenue growth.
The semiconductors and semiconductor equipment industry also contributed to the Index’s return. Sharply higher spending on cloud computing and artificial intelligence drove brisk sales of microchips. Continued strength in demand for home-based video games drove strong sales for chips used in graphics cards. Investors were optimistic that demand would increase for chips used for technologies related to virtual worlds, the “metaverse,” which was expected to experience rapid growth. Stocks in the industry were also bolstered by investor optimism regarding federal subsidies to support domestic manufacturing of microchips to reduce dependence on imports.
The systems software industry was also a contributor. Growth in video game console sales and investor optimism about new products and services, along with industry consolidation, bolstered returns. Strength in sales of hardware, including personal computers and tablets, contributed to rising revenues.
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent
of Total Investments(a) | |
Semiconductors |
16.9% | |
Interactive Media & Services |
13.5 | |
Systems Software |
12.5 | |
Application Software |
10.9 | |
Data Processing & Outsourced Services |
10.2 | |
Technology Hardware, Storage & Peripherals |
9.8 | |
Internet & Direct Marketing Retail |
9.4 | |
IT Consulting & Other Services |
3.5 | |
Communications Equipment |
2.9 | |
Semiconductor Equipment |
2.8 | |
Internet Services & Infrastructure |
2.4 | |
Movies & Entertainment |
1.3 | |
Electronic Equipment & Instruments |
1.1 | |
Interactive Home Entertainment |
1.0 | |
Other (each representing less than 1%) |
1.8 |
TEN LARGEST HOLDINGS
Security | Percent
of Total Investments(a) | |
Amazon.com Inc. |
8.7% | |
Apple Inc. |
8.6 | |
Microsoft Corp. |
8.5 | |
NVIDIA Corp. |
5.3 | |
Alphabet Inc., Class A |
4.3 | |
Meta Platforms Inc, Class A |
4.0 | |
Alphabet Inc., Class C |
4.0 | |
Visa Inc., Class A |
2.9 | |
Mastercard Inc., Class A |
2.4 | |
Broadcom Inc. |
2.0 |
(a) |
Excludes money market funds. |
8 |
2 0 2 2 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of March 31, 2022 | iShares® Expanded Tech-Software Sector ETF |
Investment Objective
The iShares Expanded Tech-Software Sector ETF (the “Fund”) seeks to track the investment results of an index composed of North American equities in the software industry and select North American equities from interactive home entertainment and interactive media and services industries, as represented by the S&P North American Expanded Technology Software IndexTM (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 |
0.86 | % | 22.38 | % | 18.33% | 0.86 | % | 174.50 | % | 438.17 | % | |||||||||||||||
Fund Market |
1.03 | 22.44 | 18.35 | 1.03 | 175.14 | 439.22 | ||||||||||||||||||||
Index |
1.28 | 22.78 | 18.76 | 1.28 | 179.07 | 458.26 |
GROWTH OF $10,000 INVESTMENT
(AT NET ASSET VALUE)
Index performance through December 23, 2018 reflects the performance of the S&P North American Technology Software IndexTM. Index performance beginning on December 24, 2018 reflects the performance of the S&P North American Expanded Technology Software IndexTM.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 17 for more information.
Expense Example
Actual |
Hypothetical 5% Return | |||||||||||||||||||||||||||||
Beginning Account Value (10/01/21) |
|
Ending Account Value (03/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (10/01/21) |
|
|
Ending Account Value (03/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||||
$ 1,000.00 |
$ 862.60 | $ 1.86 | $ 1,000.00 | $ 1,022.90 | $ 2.02 | 0.40 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information. |
F U N D S U M M A R Y |
9 |
Fund Summary as of March 31, 2022 (continued) | iShares® Expanded Tech-Software Sector ETF |
Portfolio Management Commentary
North American technology and software stocks gained modestly for the reporting period. The COVID-19 pandemic accelerated ongoing trends of firms migrating to the cloud, bolstering demand for cloud and computing services and lifting sales of personal and commercial productivity software. These gains were somewhat offset by investor concern that changes to corporate policies designed to increase user privacy would make targeted advertising more difficult, ultimately reducing revenues.
U.S. stocks, which represented approximately 99% of the Index on average for the reporting period, were the main drivers of performance. The information technology sector was the top contributor to the Index’s performance, led by software and services companies. Revenues and earnings reached record levels as the ongoing impact of the pandemic accelerated online migration. Demand for cloud services grew robustly, along with sales of personal and commercial productivity software. Growth in online video gaming and investor optimism about new products and services, as well as industry consolidation, bolstered returns. Strength in sales of hardware, including personal computers and tablets, contributed to rising revenues. Volatility in the labor market increased traffic on web-based career platforms, leading to sharply higher advertising revenues. Strong demand for cybersecurity software due to increased telecommuting and cloud computing also bolstered revenues. Rapid growth of small business creation drove strong demand for financial services software.
On the downside, the communication services sector detracted from the Index’s return. In the media and entertainment industry, ongoing challenges with global supply chains and tightness in the labor market led to reductions in online advertising spending, weighing heavily on profits. In the entertainment industry, an industry scandal led to delays of game launches, and sales of some video game titles and consoles slowed, weighing on revenues.
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent
of Total Investments(a) | |
Software |
92.6% | |
Entertainment |
5.6 | |
Interactive Media & Services |
1.8 |
TEN LARGEST HOLDINGS
Security | Percent
of Total Investments(a) | |
Microsoft Corp. |
8.6% | |
salesforce.com Inc. |
8.4 | |
Adobe Inc. |
8.2 | |
Intuit Inc. |
6.1 | |
Oracle Corp. |
5.9 | |
ServiceNow Inc. |
5.0 | |
Activision Blizzard Inc. |
2.8 | |
Palo Alto Networks Inc. |
2.8 | |
Synopsys Inc. |
2.3 | |
Crowdstrike Holdings Inc., Class A |
2.1 |
(a) |
Excludes money market funds. |
10 |
2 0 2 2 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of March 31, 2022 | iShares® North American Natural Resources ETF |
Investment Objective
The iShares North American Natural Resources ETF (the “Fund”) seeks to track the investment results of an index composed of North American equities in the natural resources sector, as represented by the S&P North American Natural Resources Sector IndexTM (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 |
50.84 | % | 7.00 | % | 2.96% | 50.84 | % | 40.23 | % | 33.91 | % | |||||||||||||||
Fund Market |
50.89 | 7.01 | 2.97 | 50.89 | 40.32 | 34.06 | ||||||||||||||||||||
Index |
51.58 | 7.56 | 3.48 | 51.58 | 43.93 | 40.76 |
GROWTH OF $10,000 INVESTMENT
(AT NET ASSET VALUE)
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 17 for more information.
Expense Example
Actual |
Hypothetical 5% Return | |||||||||||||||||||||||||||||
Beginning Account Value (10/01/21) |
|
Ending Account Value (03/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (10/01/21) |
|
|
Ending Account Value (03/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||||
$ 1,000.00 |
$ 1,395.70 | $ 2.39 | $ 1,000.00 | $ 1,022.90 | $ 2.02 | 0.40 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information. |
F U N D S U M M A R Y |
11 |
Fund Summary as of March 31, 2022 (continued) | iShares® North American Natural Resources ETF |
Portfolio Management Commentary
North American natural resources stocks advanced sharply during the reporting period as oil prices soared on renewed demand and fears of supply constraints following Russia’s invasion of Ukraine. Oil prices rallied as vaccinations against COVID-19 rolled out and global economies recovered. Prices continued to climb throughout 2021 as coronavirus-related restrictions eased, travel increased, and oil stockpiles dropped. OPEC and other oil-producing countries gradually increased oil supply throughout 2021, but demand outstripped supply. U.S. oil producers were slow to renew production in 2021 when economic activity and demand rebounded.
Oil prices hit their highest level in 14 years by March 2022 after the U.S. and its European allies began considering banning oil imports from Russia following the invasion of Ukraine. Russia is the world’s top exporter of oil and oil products.
Oil, gas, and consumable fuels stocks in the U.S. contributed the most to the Index’s return, as stocks in the energy sector hit their highest level in years following the rally in oil prices. In a marked turnaround from 2020, leading energy companies posted stronger earnings and, flush with excess cash, rewarded shareholders by buying back their own stock and raising dividends. The higher oil prices and free cash flow led some companies to expand plans to invest in new oil production over future years although most continued to maintain current output plans.
Canadian companies in the oil, gas, and consumable fuels industry also contributed to the Index. Their stocks also soared following stronger earnings. Some companies also set new environmental targets, including fewer greenhouse gas emissions and a reduction in freshwater usage in oil extraction operations.
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent
of Total Investments(a) | |
Oil, Gas & Consumable Fuels |
68.7% | |
Metals & Mining |
15.2 | |
Containers & Packaging |
7.0 | |
Energy Equipment & Services |
6.1 | |
Construction Materials |
2.4 | |
Paper & Forest Products |
0.6 |
TEN LARGEST HOLDINGS
Security | Percent
of Total Investments(a) | |
Exxon Mobil Corp. |
9.5% | |
Chevron Corp. |
9.4 | |
ConocoPhillips |
4.4 | |
Enbridge Inc. |
3.9 | |
Freeport-McMoRan Inc. |
3.1 | |
Canadian Natural Resources Ltd. |
3.0 | |
EOG Resources Inc. |
2.9 | |
Newmont Corp. |
2.7 | |
Schlumberger NV |
2.4 | |
Pioneer Natural Resources Co. |
2.4 |
(a) |
Excludes money market funds. |
12 |
2 0 2 2 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of March 31, 2022 | iShares® North American Tech-Multimedia Networking ETF |
Investment Objective
The iShares North American Tech-Multimedia Networking ETF (the “Fund”) seeks to track the investment results of an index composed of North American equities in the multimedia and networking technology sectors, as represented by the S&P North American Technology Multimedia Networking IndexTM (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 |
10.53 | % | 10.78 | % | 9.86% | 10.53 | % | 66.87 | % | 156.06 | % | |||||||||||||||
Fund Market |
10.35 | 10.79 | 9.86 | 10.35 | 66.94 | 155.99 | ||||||||||||||||||||
Index |
11.00 | 11.14 | 10.25 | 11.00 | 69.56 | 165.27 |
GROWTH OF $10,000 INVESTMENT
(AT NET ASSET VALUE)
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 17 for more information.
Expense Example
Actual |
Hypothetical 5% Return | |||||||||||||||||||||||||||||
Beginning Account Value (10/01/21) |
|
Ending Account Value (03/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (10/01/21) |
|
|
Ending Account Value (03/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||||
$ 1,000.00 |
$ 1,074.20 | $ 2.07 | $ 1,000.00 | $ 1,022.90 | $ 2.02 | 0.40 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information. |
F U N D S U M M A R Y |
13 |
Fund Summary as of March 31, 2022 (continued) | iShares® North American Tech-Multimedia Networking ETF |
Portfolio Management Commentary
North American technology and multimedia networking stocks rose sharply as businesses continued to move their operations online, a trend accelerated by the pandemic. Increased demand for cloud computing capacity, especially by large technology corporations, benefited companies that provide networking infrastructure. Improving supply chain conditions and the global growth of 5G networks fueled investor optimism for continued investment in communications infrastructure by telecommunications carriers and cable operators. The passage of a large infrastructure bill that included funding to increase access to broadband services in underserved markets in the U.S. also boosted networking stocks.
The Index is composed almost entirely of U.S. communications equipment companies, whose robust advance drove the Index’s return. The move to the cloud increased demand for hardware to equip newly constructed data centers, propelling industry gains. Revenues rose despite supply chain issues as constrained supply supported higher prices for hardware and equipment. In addition, growth in applications for artificial intelligence, which require significant numbers of routers and switches to connect processors, increased sales. Development of the metaverse, computer-generated virtual spaces, added to investor optimism for increased capital spending on and sales of equipment to support virtual reality applications.
Robust sales of networking equipment to support expansion and upgrades of broadband service, including new 5G and fiberoptic networks in emerging markets, also contributed to strong performance. Communications equipment stocks further benefited from industry merger and acquisition activity, which raised expectations for revenue growth.
Strong sales of modestly priced smartphones, especially in the U.S., Brazil, and India markets, bolstered revenue. Amid rising concerns about personal safety and security, demand also increased for video security and radio devices for both professional and commercial use, driving communications equipment company profits higher.
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent
of Total Investments(a) | |
Communications Equipment |
100.0% |
TEN LARGEST HOLDINGS
Security | Percent
of Total Investments(a) | |
Arista Networks Inc. |
9.2% | |
Juniper Networks Inc. |
8.9 | |
Motorola Solutions Inc. |
8.7 | |
F5 Inc. |
8.5 | |
Cisco Systems Inc. |
8.1 | |
Ubiquiti Inc. |
4.5 | |
Infinera Corp. |
4.5 | |
Ciena Corp. |
4.4 | |
Lumentum Holdings Inc. |
4.4 | |
NetScout Systems Inc. |
4.4 |
(a) |
Excludes money market funds. |
14 |
2 0 2 2 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Fund Summary as of March 31, 2022 | iShares® Semiconductor ETF |
Investment Objective
The iShares Semiconductor ETF (the “Fund”) (formerly the iShares PHLX Semiconductor ETF) seeks to track the investment results of an index composed of U.S.-listed equities in the semiconductor sector, as represented by the ICE Semiconductor 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 |
12.23 | % | 29.54 | % | 24.55% | 12.23 | % | 264.82 | % | 798.45 | % | |||||||||||||||
Fund Market |
12.45 | 29.59 | 24.57 | 12.45 | 265.47 | 800.04 | ||||||||||||||||||||
Index(a) |
12.74 | 30.18 | 25.18 | 12.74 | 273.88 | 844.65 | ||||||||||||||||||||
PHLX Semiconductor Sector Index |
11.05 | 29.79 | 24.99 | 11.05 | 268.27 | 830.48 | ||||||||||||||||||||
ICE Semiconductor Index(b) |
N/A | N/A | N/A | N/A | N/A | N/A |
GROWTH OF $10,000 INVESTMENT
(AT NET ASSET VALUE)
(a) |
Index performance through June 20, 2021 reflects the performance of the PHLX Semiconductor Sector Index. Index performance beginning on June 21, 2021 reflects the performance of the ICE Semiconductor Index, which, effective as of June 21, 2021, replaced the PHLX Semiconductor Sector Index as the underlying index of the fund. |
(b) |
The inception date of the ICE Semiconductor Index was April 13, 2021. The cumulative total return for this index for the period April 13, 2021 through March 31, 2022 was 8.77%. |
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 17 for more information.
Expense Example
Actual |
Hypothetical 5% Return | |||||||||||||||||||||||||||||
Beginning Account Value (10/01/21) |
|
Ending Account Value (03/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (10/01/21) |
|
|
Ending Account Value (03/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||||
$ 1,000.00 |
$ 1,063.60 | $ 2.06 | $ 1,000.00 | $ 1,022.90 | $ 2.02 | 0.40 | % |
(a) |
Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” for more information. |
F U N D S U M M A R Y |
15 |
Fund Summary as of March 31, 2022 (continued) | iShares® Semiconductor ETF |
Portfolio Management Commentary
Semiconductor stocks advanced sharply for the reporting period as manufacturers ramped up production to all-time highs despite global supply chain challenges. Business demand for microchips grew amid increased spending on data centers as companies continued the migration to cloud computing. Even as pandemic restrictions eased, consumer demand for home entertainment devices remained high, which led to record sales by semiconductor companies. The rising number of digital services and consumer goods that rely on microchips, such as personal computers, video cards, and automobiles, exacerbated a global chip shortage and supported higher prices.
A sharp increase in corporate spending on technology infrastructure for cloud computing and artificial intelligence applications led to robust sales of chips used in data centers. The largest technology companies, in particular, drove demand for chips used for networking and connectivity. Continued strength in consumer demand for video games, especially multiplayer online games that require specialized graphics processing units, propelled higher chip sales and revenues.
The ongoing rollout of 5G technology and the increasing availability of 5G-enabled phones raised demand for the chips used in telecommunications devices and handsets. Robust growth in the manufacturing of electric cars, especially in China, bolstered demand for chips used in vehicle navigation systems. Investor optimism rose that demand would increase for chips used for technologies for both entertainment and commercial applications of computer-generated virtual worlds, the “metaverse,” which require powerful graphics chips.
Semiconductor stocks were also bolstered by the announcement of proposed legislation that included provisions for U.S. government subsidies to support domestic manufacturing of microchips and reduce dependence on imports, especially from China. In addition, consolidation in the semiconductors industry boosted revenue as increasing product breadth allowed companies to attract new customers.
Portfolio Information
ALLOCATION BY SECTOR
Sector | Percent
of Total Investments(a) | |
Semiconductors |
79.5% | |
Semiconductor Equipment |
20.5 |
TEN LARGEST HOLDINGS
Security | Percent
of Total Investments(a) | |
NVIDIA Corp. |
8.9% | |
Broadcom Inc. |
8.5 | |
Advanced Micro Devices Inc. |
7.1 | |
Intel Corp. |
6.2 | |
QUALCOMM Inc. |
5.3 | |
Texas Instruments Inc. |
4.3 | |
Microchip Technology Inc. |
4.3 | |
KLA Corp. |
4.2 | |
Marvell Technology Inc. |
4.2 | |
Analog Devices Inc. |
4.1 |
(a) |
Excludes money market funds. |
16 |
2 0 2 2 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
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.
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 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 a 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 |
17 |
March 31, 2022 |
iShares® Biotechnology ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Biotechnology — 75.9% |
||||||||
4D Molecular Therapeutics Inc.(a)(b) |
232,410 | $ | 3,514,039 | |||||
89bio Inc.(a)(b) |
106,544 | 401,671 | ||||||
Abcam PLC, SP ADR(a)(b) |
1,459,736 | 26,698,571 | ||||||
AC Immune SA(a)(b) |
249,684 | 998,736 | ||||||
ACADIA Pharmaceuticals Inc.(a)(b) |
1,279,760 | 30,995,787 | ||||||
Achilles Therapeutics PLC, ADR(a)(b) |
248,830 | 731,560 | ||||||
Acumen Pharmaceuticals Inc.(a)(b) |
194,168 | 759,197 | ||||||
Adaptimmune Therapeutics PLC, ADR(a)(b) |
876,318 | 1,805,215 | ||||||
ADC Therapeutics SA(a)(b) |
304,229 | 4,469,124 | ||||||
Adicet Bio Inc.(a) |
183,982 | 3,674,121 | ||||||
ADMA Biologics Inc.(a)(b) |
1,513,942 | 2,770,514 | ||||||
Adverum Biotechnologies Inc.(a)(b) |
727,269 | 952,722 | ||||||
Aeglea BioTherapeutics Inc.(a) |
315,056 | 724,629 | ||||||
Aerovate Therapeutics Inc.(a)(b) |
128,537 | 2,356,083 | ||||||
Affimed NV(a) |
876,966 | 3,832,341 | ||||||
Agios Pharmaceuticals Inc.(a)(b) |
432,479 | 12,589,464 | ||||||
Akebia Therapeutics Inc.(a)(b) |
1,354,895 | 972,679 | ||||||
Akero Therapeutics Inc.(a)(b) |
167,385 | 2,375,193 | ||||||
Akouos Inc.(a)(b) |
171,905 | 816,549 | ||||||
Alaunos Therapeutics Inc.(a)(b) |
1,534,462 | 1,001,083 | ||||||
Alector Inc.(a)(b) |
476,628 | 6,791,949 | ||||||
Alexion Pharmaceuticals Inc.(b)(c) |
4,112 | 1,892 | ||||||
Aligos Therapeutics Inc.(a)(b) |
205,801 | 442,472 | ||||||
Alkermes PLC(a)(b) |
1,282,351 | 33,738,655 | ||||||
Allakos Inc.(a) |
271,137 | 1,545,481 | ||||||
Allogene Therapeutics Inc.(a)(b) |
587,354 | 5,350,795 | ||||||
Allovir Inc.(a)(b) |
235,820 | 1,591,785 | ||||||
Alnylam Pharmaceuticals Inc.(a)(b) |
952,627 | 155,554,463 | ||||||
Alpine Immune Sciences Inc.(a)(b) |
106,937 | 959,225 | ||||||
Altimmune Inc.(a)(b) |
294,822 | 1,795,466 | ||||||
ALX Oncology Holdings Inc.(a)(b) |
163,417 | 2,761,747 | ||||||
Amgen Inc. |
2,956,072 | 714,837,331 | ||||||
Amicus Therapeutics Inc.(a)(b) |
2,171,703 | 20,566,027 | ||||||
AnaptysBio Inc.(a)(b) |
192,301 | 4,757,527 | ||||||
Anavex Life Sciences Corp.(a)(b) |
588,390 | 7,243,081 | ||||||
Annexon Inc.(a)(b) |
244,140 | 666,502 | ||||||
Annovis Bio Inc.(a)(b) |
43,513 | 580,899 | ||||||
Apellis Pharmaceuticals Inc.(a)(b) |
633,597 | 32,193,064 | ||||||
Applied Molecular Transport Inc.(a)(b) |
196,120 | 1,474,822 | ||||||
Applied Therapeutics Inc.(a)(b) |
116,965 | 246,796 | ||||||
Arbutus Biopharma Corp.(a) |
932,891 | 2,780,015 | ||||||
Arcturus Therapeutics Holdings Inc.(a)(b) |
179,975 | 4,852,126 | ||||||
Arcus Biosciences Inc.(a)(b) |
352,644 | 11,129,445 | ||||||
Arcutis Biotherapeutics Inc.(a)(b) |
224,852 | 4,330,650 | ||||||
Argenx SE, ADR(a)(b) |
324,552 | 102,334,491 | ||||||
Arrowhead Pharmaceuticals Inc.(a)(b) |
775,472 | 35,663,957 | ||||||
Ascendis Pharma A/S, ADR(a)(b) |
352,764 | 41,400,383 | ||||||
Atara Biotherapeutics Inc.(a)(b) |
680,252 | 6,319,541 | ||||||
Athenex Inc.(a)(b) |
714,833 | 592,954 | ||||||
Aurinia Pharmaceuticals Inc.(a)(b) |
897,814 | 11,114,937 | ||||||
Autolus Therapeutics PLC , ADR(a)(b) |
321,583 | 1,341,001 | ||||||
Avidity Biosciences Inc.(a)(b) |
335,076 | 6,188,854 | ||||||
Avrobio Inc.(a) |
307,760 | 406,243 | ||||||
Beam Therapeutics Inc.(a)(b) |
413,238 | 23,678,537 | ||||||
BeiGene Ltd., ADR(a)(b) |
591,865 | 111,625,739 | ||||||
BELLUS Health Inc.(a)(b) |
746,361 | 5,134,964 | ||||||
Bicycle Therapeutics PLC, ADR(a)(b) |
178,088 | 7,814,501 | ||||||
BioAtla Inc.(a) |
227,225 | 1,136,125 |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
BioCryst Pharmaceuticals Inc.(a)(b) |
1,441,320 | $ | 23,435,863 | |||||
Biogen Inc.(a) |
1,172,028 | 246,829,097 | ||||||
Biohaven Pharmaceutical Holding Co. Ltd.(a)(b) |
486,291 | 57,659,524 | ||||||
BioMarin Pharmaceutical Inc.(a)(b) |
1,452,839 | 112,013,887 | ||||||
Biomea Fusion Inc.(a)(b) |
150,393 | 670,753 | ||||||
BioNTech SE, ADR(a)(b) |
1,535,009 | 261,811,135 | ||||||
Black Diamond Therapeutics Inc.(a)(b) |
188,879 | 523,195 | ||||||
Bluebird Bio Inc.(a)(b) |
535,999 | 2,599,595 | ||||||
Blueprint Medicines Corp.(a)(b) |
459,598 | 29,359,120 | ||||||
Bolt Biotherapeutics Inc.(a) |
162,266 | 444,609 | ||||||
Bridgebio Pharma Inc.(a)(b) |
819,166 | 8,314,535 | ||||||
Brooklyn ImmunoTherapeutics Inc.(a)(b) |
185,144 | 379,545 | ||||||
Burning Rock Biotech Ltd., ADR(a)(b) |
545,624 | 5,068,847 | ||||||
C4 Therapeutics Inc.(a) |
306,868 | 7,444,618 | ||||||
Cabaletta Bio Inc.(a)(b) |
177,909 | 361,155 | ||||||
Candel Therapeutics Inc.(a)(b) |
78,259 | 398,338 | ||||||
CareDx Inc.(a)(b) |
416,183 | 15,394,609 | ||||||
Caribou Biosciences Inc.(a)(b) |
373,686 | 3,430,437 | ||||||
Cellectis SA, ADR(a)(b) |
287,289 | 1,304,292 | ||||||
CEL-SCI Corp.(a)(b) |
326,074 | 1,281,471 | ||||||
Centessa Pharmaceuticals PLC, ADR(a)(b) |
267,842 | 2,402,543 | ||||||
Century Therapeutics Inc.(a)(b) |
161,558 | 2,034,015 | ||||||
ChemoCentryx Inc.(a)(b) |
454,331 | 11,390,078 | ||||||
Chimerix Inc.(a)(b) |
614,901 | 2,816,247 | ||||||
Chinook Therapeutics Inc.(a) |
295,511 | 4,834,560 | ||||||
Clovis Oncology Inc.(a)(b) |
1,115,996 | 2,254,312 | ||||||
Codiak Biosciences Inc.(a)(b) |
106,652 | 668,708 | ||||||
Cogent Biosciences Inc.(a)(b) |
256,910 | 1,924,256 | ||||||
Coherus Biosciences Inc.(a)(b) |
573,188 | 7,399,857 | ||||||
Compass Pathways PLC, ADR(a)(b) |
265,306 | 3,419,794 | ||||||
Connect Biopharma Holdings Ltd.(a) |
366,584 | 1,107,084 | ||||||
Cortexyme Inc.(a)(b) |
140,392 | 869,026 | ||||||
Crinetics Pharmaceuticals Inc.(a) |
298,043 | 6,542,044 | ||||||
CRISPR Therapeutics AG(a)(b) |
565,552 | 35,499,699 | ||||||
Cullinan Oncology Inc.(a)(b) |
181,104 | 1,896,159 | ||||||
CureVac NV(a)(b) |
435,930 | 8,548,587 | ||||||
Curis Inc.(a)(b) |
680,486 | 1,619,557 | ||||||
Cybin Inc.(a)(b) |
861,796 | 704,087 | ||||||
Cyteir Therapeutics Inc.(a)(b) |
109,006 | 410,953 | ||||||
Cytokinetics Inc.(a)(b) |
633,663 | 23,325,135 | ||||||
CytomX Therapeutics Inc.(a) |
493,614 | 1,317,949 | ||||||
Day One Biopharmaceuticals Inc.(a)(b) |
174,218 | 1,728,243 | ||||||
DBV Technologies SA, ADR(a)(b) |
686,795 | 1,092,004 | ||||||
Decibel Therapeutics Inc.(a) |
75,167 | 228,508 | ||||||
Deciphera Pharmaceuticals Inc.(a)(b) |
321,505 | 2,980,351 | ||||||
Denali Therapeutics Inc.(a)(b) |
774,997 | 24,931,653 | ||||||
Design Therapeutics Inc.(a) |
227,213 | 3,669,490 | ||||||
Dyne Therapeutics Inc.(a)(b) |
210,260 | 2,026,906 | ||||||
Editas Medicine Inc.(a)(b) |
546,395 | 10,392,433 | ||||||
Eiger BioPharmaceuticals Inc.(a)(b) |
255,967 | 2,124,526 | ||||||
Emergent BioSolutions Inc.(a)(b) |
338,756 | 13,909,321 | ||||||
Enanta Pharmaceuticals Inc.(a) |
154,193 | 10,975,458 | ||||||
Epizyme Inc.(a) |
1,150,443 | 1,323,009 | ||||||
Erasca Inc.(a)(b) |
511,891 | 4,402,263 | ||||||
Evelo Biosciences Inc.(a)(b) |
209,587 | 710,500 | ||||||
Exelixis Inc.(a)(b) |
2,504,724 | 56,782,093 | ||||||
Fate Therapeutics Inc.(a)(b) |
712,797 | 27,635,140 | ||||||
FibroGen Inc.(a)(b) |
675,245 | 8,116,445 | ||||||
Forma Therapeutics Holdings Inc.(a)(b) |
330,904 | 3,077,407 | ||||||
Frequency Therapeutics Inc.(a)(b) |
260,971 | 553,259 |
18 |
2 0 2 2 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) March 31, 2022 |
iShares® Biotechnology ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
G1 Therapeutics Inc.(a)(b) |
269,308 | $ | 2,046,741 | |||||
Galapagos NV, ADR(a)(b) |
413,486 | 25,644,402 | ||||||
Gamida Cell Ltd.(a)(b) |
320,342 | 1,329,419 | ||||||
Generation Bio Co.(a)(b) |
374,507 | 2,748,881 | ||||||
Genetron Holdings Ltd., ADR(a)(b) |
526,331 | 1,152,665 | ||||||
Genmab A/S, ADR(a)(b) |
4,189,403 | 151,572,601 | ||||||
Geron Corp.(a)(b) |
2,393,260 | 3,254,834 | ||||||
Gilead Sciences Inc. |
10,027,605 | 596,141,117 | ||||||
Global Blood Therapeutics Inc.(a)(b) |
505,907 | 17,524,618 | ||||||
Gossamer Bio Inc.(a)(b) |
424,987 | 3,688,887 | ||||||
Gracell Biotechnologies Inc.(a)(b) |
363,505 | 846,967 | ||||||
Graphite Bio Inc.(a)(b) |
199,030 | 1,015,053 | ||||||
Grifols SA, ADR |
1,666,923 | 19,469,661 | ||||||
Gritstone bio Inc.(a) |
462,427 | 1,905,199 | ||||||
Halozyme Therapeutics Inc.(a)(b) |
1,089,127 | 43,434,385 | ||||||
Harpoon Therapeutics Inc.(a)(b) |
149,325 | 742,145 | ||||||
Homology Medicines Inc.(a)(b) |
309,717 | 941,540 | ||||||
Humacyte Inc.(a)(b) |
404,583 | 2,856,356 | ||||||
Icosavax Inc.(a)(b) |
161,845 | 1,139,389 | ||||||
Ideaya Biosciences Inc.(a) |
235,725 | 2,637,763 | ||||||
IGM Biosciences Inc.(a)(b) |
116,287 | 3,108,351 | ||||||
I-Mab, ADR(a) |
507,558 | 8,242,742 | ||||||
Imago Biosciences Inc.(a)(b) |
151,878 | 2,926,689 | ||||||
Immuneering Corp., Class A(a)(b) |
150,450 | 973,411 | ||||||
Immunic Inc.(a)(b) |
151,000 | 1,706,300 | ||||||
ImmunityBio Inc.(a)(b) |
644,136 | 3,613,603 | ||||||
ImmunoGen Inc.(a)(b) |
1,711,376 | 8,146,150 | ||||||
Immunovant Inc.(a) |
318,730 | 1,756,202 | ||||||
Immutep Ltd., SP ADR(a)(b) |
544,700 | 1,492,478 | ||||||
Impel Neuropharma Inc.(a)(b) |
50,123 | 319,284 | ||||||
Incyte Corp.(a)(b) |
1,754,658 | 139,354,938 | ||||||
Infinity Pharmaceuticals Inc.(a)(b) |
686,299 | 782,381 | ||||||
Inhibrx Inc.(a)(b) |
209,493 | 4,667,504 | ||||||
Innate Pharma SA, SP ADR(a)(b) |
504,408 | 1,694,811 | ||||||
Inovio Pharmaceuticals Inc.(a)(b) |
1,656,074 | 5,945,306 | ||||||
Insmed Inc.(a)(b) |
931,304 | 21,885,644 | ||||||
Instil Bio Inc.(a)(b) |
484,768 | 5,211,256 | ||||||
Intellia Therapeutics Inc.(a) |
537,315 | 39,046,681 | ||||||
Intercept Pharmaceuticals Inc.(a)(b) |
186,243 | 3,030,174 | ||||||
Ionis Pharmaceuticals Inc.(a)(b) |
1,115,422 | 41,315,231 | ||||||
Iovance Biotherapeutics Inc.(a)(b) |
1,092,338 | 18,187,428 | ||||||
Ironwood Pharmaceuticals Inc.(a)(b) |
1,245,017 | 15,662,314 | ||||||
iTeos Therapeutics Inc.(a) |
202,704 | 6,523,015 | ||||||
IVERIC bio Inc.(a)(b) |
830,046 | 13,969,674 | ||||||
Janux Therapeutics Inc.(a)(b) |
175,521 | 2,516,971 | ||||||
Jounce Therapeutics Inc.(a) |
252,821 | 1,716,655 | ||||||
KalVista Pharmaceuticals Inc.(a)(b) |
168,215 | 2,479,489 | ||||||
Kamada Ltd.(a)(b) |
181,799 | 1,003,530 | ||||||
Karuna Therapeutics Inc.(a) |
172,102 | 21,820,813 | ||||||
Karyopharm Therapeutics Inc.(a)(b) |
530,991 | 3,913,404 | ||||||
Keros Therapeutics Inc.(a)(b) |
112,388 | 6,111,659 | ||||||
Kezar Life Sciences Inc.(a)(b) |
379,790 | 6,312,110 | ||||||
Kiniksa Pharmaceuticals Ltd., Class A(a) |
261,549 | 2,599,797 | ||||||
Kinnate Biopharma Inc.(a) |
133,041 | 1,498,042 | ||||||
Kodiak Sciences Inc.(a) |
365,823 | 2,824,154 | ||||||
Kronos Bio Inc.(a)(b) |
286,692 | 2,072,783 | ||||||
Krystal Biotech Inc.(a) |
152,484 | 10,146,285 | ||||||
Kura Oncology Inc.(a) |
500,437 | 8,047,027 | ||||||
Kymera Therapeutics Inc.(a) |
320,101 | 13,546,674 | ||||||
Larimar Therapeutics Inc.(a)(b) |
135,310 | 548,005 |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
Leap Therapeutics Inc.(a)(b) |
559,746 | $ | 979,555 | |||||
Legend Biotech Corp., ADR(a)(b) |
958,893 | 34,846,172 | ||||||
Ligand Pharmaceuticals Inc.(a)(b) |
127,279 | 14,317,615 | ||||||
Lineage Cell Therapeutics Inc.(a)(b) |
1,323,742 | 2,038,563 | ||||||
Lyell Immunopharma Inc.(a)(b) |
479,311 | 2,420,521 | ||||||
MacroGenics Inc.(a) |
451,775 | 3,980,138 | ||||||
Madrigal Pharmaceuticals Inc.(a)(b) |
99,442 | 9,757,249 | ||||||
Magenta Therapeutics Inc.(a)(b) |
317,886 | 921,869 | ||||||
MannKind Corp.(a)(b) |
1,887,606 | 6,946,390 | ||||||
Matinas BioPharma Holdings Inc.(a)(b) |
1,636,650 | 1,316,521 | ||||||
MeiraGTx Holdings PLC(a) |
275,972 | 3,822,212 | ||||||
Mereo Biopharma Group PLC, ADR(a)(b) |
698,767 | 782,619 | ||||||
Mersana Therapeutics Inc.(a)(b) |
480,354 | 1,916,612 | ||||||
Merus NV(a)(b) |
251,511 | 6,649,951 | ||||||
Mesoblast Ltd., SP ADR(a)(b) |
829,622 | 3,501,005 | ||||||
Mirati Therapeutics Inc.(a)(b) |
382,590 | 31,456,550 | ||||||
Mirum Pharmaceuticals Inc.(a) |
132,107 | 2,908,996 | ||||||
Moderna Inc.(a)(b) |
2,783,543 | 479,493,117 | ||||||
Molecular Templates Inc.(a) |
327,974 | 1,131,510 | ||||||
Monte Rosa Therapeutics Inc.(a)(b) |
238,540 | 3,344,331 | ||||||
Morphic Holding Inc.(a)(b) |
191,805 | 7,700,971 | ||||||
Mustang Bio Inc.(a)(b) |
590,224 | 596,126 | ||||||
Myovant Sciences Ltd.(a)(b) |
328,313 | 4,373,129 | ||||||
Myriad Genetics Inc.(a)(b) |
611,139 | 15,400,703 | ||||||
Natera Inc.(a)(b) |
684,584 | 27,848,877 | ||||||
Neoleukin Therapeutics Inc.(a) |
270,573 | 508,677 | ||||||
Neurocrine Biosciences Inc.(a) |
744,948 | 69,838,875 | ||||||
NextCure Inc.(a) |
129,270 | 628,252 | ||||||
Nkarta Inc.(a)(b) |
152,375 | 1,734,027 | ||||||
Novavax Inc.(a)(b) |
602,093 | 44,344,149 | ||||||
Nurix Therapeutics Inc.(a) |
291,321 | 4,081,407 | ||||||
Nuvalent Inc., Class A(a)(b) |
280,229 | 3,892,381 | ||||||
ObsEva SA(a)(b) |
390,316 | 589,377 | ||||||
Olema Pharmaceuticals Inc.(a)(b) |
269,126 | 1,146,477 | ||||||
Omega Therapeutics Inc.(a)(b) |
136,755 | 853,351 | ||||||
Oncocyte Corp.(a)(b) |
670,162 | 998,541 | ||||||
Oncorus Inc.(a)(b) |
125,936 | 224,166 | ||||||
OPKO Health Inc.(a)(b) |
3,312,428 | 11,394,752 | ||||||
Orchard Therapeutics PLC, ADR(a)(b) |
749,990 | 533,993 | ||||||
ORIC Pharmaceuticals Inc.(a)(b) |
247,582 | 1,322,088 | ||||||
Ovid therapeutics Inc.(a)(b) |
390,225 | 1,225,306 | ||||||
Oyster Point Pharma Inc.(a)(b) |
95,295 | 1,109,234 | ||||||
Passage Bio Inc.(a)(b) |
231,638 | 718,078 | ||||||
PMV Pharmaceuticals Inc.(a)(b) |
214,069 | 4,456,917 | ||||||
Poseida Therapeutics Inc.(a)(b) |
217,803 | 975,757 | ||||||
Praxis Precision Medicines Inc.(a)(b) |
294,532 | 3,007,172 | ||||||
Precigen Inc.(a)(b) |
782,330 | 1,650,716 | ||||||
Precision BioSciences Inc.(a)(b) |
392,971 | 1,210,351 | ||||||
Prelude Therapeutics Inc.(a)(b) |
270,392 | 1,865,705 | ||||||
Prometheus Biosciences Inc.(a)(b) |
205,150 | 7,746,464 | ||||||
ProQR Therapeutics NV(a)(b) |
476,810 | 431,608 | ||||||
Protagonist Therapeutics Inc.(a) |
353,337 | 8,367,020 | ||||||
Prothena Corp. PLC(a)(b) |
371,769 | 13,595,592 | ||||||
PTC Therapeutics Inc.(a)(b) |
554,544 | 20,690,037 | ||||||
Puma Biotechnology Inc.(a) |
281,935 | 811,973 | ||||||
Radius Health Inc.(a)(b) |
369,495 | 3,262,641 | ||||||
Rallybio Corp.(a)(b) |
109,338 | 763,179 | ||||||
RAPT Therapeutics Inc.(a)(b) |
194,645 | 4,280,244 | ||||||
Recursion Pharmaceuticals Inc., Class A(a)(b) |
690,354 | 4,942,935 | ||||||
Regeneron Pharmaceuticals Inc.(a)(b) |
830,394 | 579,963,777 |
S C H E D U L E O F I N V E S T M E N T S |
19 |
Schedule of Investments (continued) March 31, 2022 |
iShares® Biotechnology ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
REGENXBIO Inc.(a)(b) |
288,647 | $ | 9,580,194 | |||||
Relay Therapeutics Inc.(a)(b) |
587,606 | 17,587,048 | ||||||
Repare Therapeutics Inc.(a)(b) |
229,338 | 3,265,773 | ||||||
Replimune Group Inc.(a)(b) |
236,205 | 4,010,761 | ||||||
REVOLUTION Medicines Inc.(a)(b) |
404,071 | 10,307,851 | ||||||
Rhythm Pharmaceuticals Inc.(a)(b) |
345,939 | 3,985,217 | ||||||
Rigel Pharmaceuticals Inc.(a) |
1,370,634 | 4,098,196 | ||||||
Rocket Pharmaceuticals Inc.(a)(b) |
474,677 | 7,528,377 | ||||||
Rubius Therapeutics Inc.(a)(b) |
357,357 | 1,969,037 | ||||||
Sage Therapeutics Inc.(a)(b) |
406,026 | 13,439,461 | ||||||
Sana Biotechnology Inc.(a)(b) |
615,118 | 5,080,875 | ||||||
Sangamo Therapeutics Inc.(a)(b) |
965,518 | 5,609,660 | ||||||
Sarepta Therapeutics Inc.(a) |
663,535 | 51,835,354 | ||||||
Scholar Rock Holding Corp.(a)(b) |
223,102 | 2,875,785 | ||||||
Seagen Inc.(a)(b) |
1,444,130 | 208,026,926 | ||||||
Selecta Biosciences Inc.(a) |
588,981 | 724,447 | ||||||
Sensei Biotherapeutics Inc.(a)(b) |
132,072 | 305,086 | ||||||
Seres Therapeutics Inc.(a)(b) |
559,035 | 3,980,329 | ||||||
Sesen Bio Inc.(a)(b) |
1,571,660 | 947,239 | ||||||
Shattuck Labs Inc.(a)(b) |
253,472 | 1,079,791 | ||||||
Silverback Therapeutics Inc.(a)(b) |
145,367 | 510,238 | ||||||
Solid Biosciences Inc.(a)(b) |
659,931 | 791,917 | ||||||
Spectrum Pharmaceuticals Inc.(a)(b) |
1,273,178 | 1,642,400 | ||||||
Spero Therapeutics Inc.(a)(b) |
197,423 | 1,717,580 | ||||||
SpringWorks Therapeutics Inc.(a)(b) |
253,292 | 14,295,800 | ||||||
SQZ Biotechnologies Co.(a)(b) |
149,604 | 719,595 | ||||||
Stoke Therapeutics Inc.(a) |
137,371 | 2,891,660 | ||||||
Summit Therapeutics Inc.(a)(b) |
197,576 | 484,061 | ||||||
Surface Oncology Inc.(a)(b) |
295,520 | 868,829 | ||||||
Sutro Biopharma Inc.(a)(b) |
285,272 | 2,344,936 | ||||||
Syndax Pharmaceuticals Inc.(a) |
340,001 | 5,909,217 | ||||||
Syros Pharmaceuticals Inc.(a)(b) |
298,263 | 354,933 | ||||||
Talaris Therapeutics Inc.(a) |
163,300 | 1,606,872 | ||||||
Taysha Gene Therapies Inc.(a)(b) |
165,734 | 1,080,586 | ||||||
TCR2 Therapeutics Inc.(a) |
227,152 | 626,940 | ||||||
Tenaya Therapeutics Inc.(a)(b) |
226,210 | 2,664,754 | ||||||
Travere Therapeutics Inc.(a)(b) |
472,078 | 12,165,450 | ||||||
Turning Point Therapeutics Inc.(a)(b) |
344,467 | 9,248,939 | ||||||
Twist Bioscience Corp.(a)(b) |
401,463 | 19,824,243 | ||||||
Ultragenyx Pharmaceutical Inc.(a)(b) |
514,868 | 37,389,714 | ||||||
uniQure NV(a)(b) |
332,467 | 6,007,679 | ||||||
United Therapeutics Corp.(a) |
353,978 | 63,507,193 | ||||||
UroGen Pharma Ltd.(a)(b) |
147,170 | 1,281,851 | ||||||
Vanda Pharmaceuticals Inc.(a) |
430,090 | 4,864,318 | ||||||
Vaxcyte Inc.(a)(b) |
279,746 | 6,755,866 | ||||||
Veracyte Inc.(a)(b) |
528,759 | 14,577,886 | ||||||
Verastem Inc.(a)(b) |
1,393,404 | 1,964,700 | ||||||
Vertex Pharmaceuticals Inc.(a) |
2,025,844 | 528,684,509 | ||||||
Verve Therapeutics Inc.(a)(b) |
199,174 | 4,545,151 | ||||||
Vir Biotechnology Inc.(a)(b) |
569,823 | 14,655,848 | ||||||
Viracta Therapeutics Inc.(a)(b) |
223,484 | 1,063,784 | ||||||
Vor BioPharma Inc.(a)(b) |
196,730 | 1,188,249 | ||||||
Werewolf Therapeutics Inc.(a)(b) |
103,063 | 453,477 | ||||||
Xencor Inc.(a)(b) |
461,003 | 12,299,560 | ||||||
Xenon Pharmaceuticals Inc.(a) |
394,495 | 12,059,712 | ||||||
Y-mAbs Therapeutics Inc.(a)(b) |
281,366 | 3,342,628 | ||||||
Zai Lab Ltd., ADR(a) |
608,105 | 26,744,458 | ||||||
Zentalis Pharmaceuticals Inc.(a)(b) |
325,536 | 15,020,231 | ||||||
Zymeworks Inc.(a) |
451,806 | 2,959,329 | ||||||
|
|
|||||||
6,533,532,613 |
Security | Shares | Value | ||||||
Health Care Equipment & Supplies — 0.8% | ||||||||
Meridian Bioscience Inc.(a)(b) |
343,331 | $ | 8,912,873 | |||||
Novocure Ltd.(a)(b) |
715,264 | 59,259,622 | ||||||
|
|
|||||||
68,172,495 | ||||||||
Health Care Providers & Services — 0.4% | ||||||||
Castle Biosciences Inc.(a)(b) |
182,941 | 8,206,733 | ||||||
Fulgent Genetics Inc.(a)(b) |
165,834 | 10,349,700 | ||||||
Invitae Corp.(a)(b) |
1,783,764 | 14,216,599 | ||||||
|
|
|||||||
32,773,032 | ||||||||
Life Sciences Tools & Services — 20.8% | ||||||||
10X Genomics Inc., Class A(a)(b) |
672,199 | 51,134,178 | ||||||
AbCellera Biologics Inc.(a)(b) |
1,492,767 | 14,554,478 | ||||||
Absci Corp.(a)(b) |
467,737 | 3,943,023 | ||||||
Adaptive Biotechnologies Corp.(a)(b) |
1,118,009 | 15,517,965 | ||||||
Akoya Biosciences Inc.(a)(b) |
127,094 | 1,396,763 | ||||||
Alpha Teknova Inc.(a)(b) |
54,603 | 754,067 | ||||||
Berkeley Lights Inc.(a)(b) |
413,279 | 2,938,414 | ||||||
Bio-Techne Corp. |
310,454 | 134,439,000 | ||||||
Bruker Corp.(b) |
825,961 | 53,109,292 | ||||||
Charles River Laboratories International Inc.(a) |
399,547 | 113,459,362 | ||||||
Codex DNA Inc.(a)(b) |
68,334 | 366,954 | ||||||
Codexis Inc.(a)(b) |
503,692 | 10,386,129 | ||||||
Compugen Ltd.(a)(b) |
624,048 | 2,009,435 | ||||||
Cytek Biosciences Inc.(a)(b) |
603,947 | 6,510,549 | ||||||
Fluidigm Corp.(a)(b) |
577,520 | 2,073,297 | ||||||
Harvard Bioscience Inc.(a)(b) |
287,075 | 1,782,736 | ||||||
Illumina Inc.(a) |
1,024,828 | 358,074,903 | ||||||
IQVIA Holdings Inc.(a) |
1,454,497 | 336,294,251 | ||||||
Maravai
LifeSciences Holdings Inc., |
875,328 | 30,872,818 | ||||||
MaxCyte Inc.(a)(b) |
621,378 | 4,343,432 | ||||||
Medpace Holdings Inc.(a)(b) |
233,044 | 38,123,668 | ||||||
Mettler-Toledo International Inc.(a) |
179,743 | 246,821,290 | ||||||
NanoString Technologies Inc.(a)(b) |
330,213 | 11,474,902 | ||||||
Nautilus Biotechnology Inc.(a)(b) |
448,725 | 1,947,466 | ||||||
Olink Holding AB, ADR(a)(b) |
758,966 | 13,403,340 | ||||||
Pacific Biosciences of California Inc.(a)(b) |
1,689,784 | 15,377,034 | ||||||
Personalis Inc.(a)(b) |
292,215 | 2,393,241 | ||||||
Quanterix Corp.(a) |
265,794 | 7,758,527 | ||||||
Repligen Corp.(a) |
411,137 | 77,330,758 | ||||||
Seer Inc., Class A(a) |
264,519 | 4,031,270 | ||||||
Singular Genomics Systems Inc.(a)(b) |
245,478 | 1,548,966 | ||||||
Stevanato Group SpA(a)(b) |
263,364 | 5,298,884 | ||||||
Syneos Health Inc.(a) |
831,260 | 67,290,497 | ||||||
Waters Corp.(a) |
481,743 | 149,528,210 | ||||||
|
|
|||||||
1,786,289,099 | ||||||||
Pharmaceuticals — 2.1% | ||||||||
Aclaris Therapeutics Inc.(a)(b) |
373,128 | 6,432,727 | ||||||
Ampio Pharmaceuticals Inc.(a)(b) |
1,668,488 | 784,189 | ||||||
Arvinas Inc.(a)(b) |
353,961 | 23,821,575 | ||||||
ATAI Life Sciences NV(a)(b) |
949,884 | 4,834,910 | ||||||
Atea Pharmaceuticals Inc.(a) |
580,325 | 4,189,946 | ||||||
Athira Pharma Inc.(a)(b) |
278,981 | 3,766,243 | ||||||
Axsome Therapeutics Inc.(a)(b) |
235,295 | 9,738,860 | ||||||
Cara Therapeutics Inc.(a)(b) |
353,310 | 4,292,716 | ||||||
Clearside Biomedical Inc.(a)(b) |
374,413 | 857,406 | ||||||
Cymabay Therapeutics Inc.(a)(b) |
649,911 | 2,021,223 | ||||||
Edgewise Therapeutics Inc.(a)(b) |
191,857 | 1,861,013 | ||||||
Fulcrum Therapeutics Inc.(a) |
238,321 | 5,636,292 | ||||||
Ikena Oncology Inc.(a)(b) |
184,979 | 1,128,372 | ||||||
Intra-Cellular Therapies Inc.(a)(b) |
672,816 | 41,169,611 |
20 |
2 0 2 2 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) March 31, 2022 |
iShares® Biotechnology ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
|
||||||||
Pharmaceuticals (continued) | ||||||||
KemPharm Inc.(a)(b) |
242,987 | $ | 1,222,225 | |||||
Landos Biopharma Inc.(a)(b) |
269,343 | 397,281 | ||||||
Marinus Pharmaceuticals Inc.(a)(b) |
256,061 | 2,394,170 | ||||||
Nektar Therapeutics(a)(b) |
1,446,079 | 7,794,366 | ||||||
NGM Biopharmaceuticals Inc.(a)(b) |
194,105 | 2,960,101 | ||||||
NRX Pharmaceuticals Inc.(a)(b) |
205,872 | 504,386 | ||||||
Nuvation Bio Inc.(a)(b) |
1,033,876 | 5,438,188 | ||||||
Phathom Pharmaceuticals Inc.(a)(b) |
101,436 | 1,380,544 | ||||||
Pliant Therapeutics Inc.(a) |
214,766 | 1,505,510 | ||||||
Provention Bio Inc.(a)(b) |
432,049 | 3,162,599 | ||||||
Rain Therapeutics Inc.(a) |
101,330 | 513,743 | ||||||
Rani Therapeutics Holdings Inc.(a)(b) |
82,867 | 1,118,704 | ||||||
Reata Pharmaceuticals Inc., Class A(a)(b) |
238,481 | 7,812,638 | ||||||
Redhill Biopharma Ltd., ADR (a)(b) |
332,530 | 837,976 | ||||||
Relmada Therapeutics Inc.(a)(b) |
192,511 | 5,195,872 | ||||||
Revance Therapeutics Inc.(a)(b) |
536,309 | 10,458,025 | ||||||
Roivant Sciences Ltd.(a)(b) |
2,647,908 | 13,080,666 | ||||||
Terns Pharmaceuticals Inc.(a)(b) |
104,930 | 311,642 | ||||||
Theravance Biopharma Inc.(a)(b) |
422,727 | 4,041,270 | ||||||
Tricida Inc.(a)(b) |
189,965 | 1,561,512 | ||||||
Verrica Pharmaceuticals Inc.(a)(b) |
122,626 | 994,497 | ||||||
WaVe Life Sciences Ltd.(a)(b) |
401,748 | 803,496 | ||||||
|
|
|||||||
184,024,494 | ||||||||
|
|
|||||||
Total
Common Stocks — 100.0% |
8,604,791,733 | |||||||
|
|
Security | Shares | Value | ||||||
|
||||||||
Short-Term Investments |
||||||||
Money Market Funds — 9.3% |
||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.34%(d)(e)(f) |
790,545,082 | $ | 790,386,973 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.25%(d)(e) |
15,470,000 | 15,470,000 | ||||||
|
|
|||||||
805,856,973 | ||||||||
|
|
|||||||
Total
Short-Term Investments — 9.3% |
|
805,856,973 | ||||||
|
|
|||||||
Total
Investments in Securities — 109.3% |
|
9,410,648,706 | ||||||
Other Assets, Less Liabilities — (9.3)% |
(803,770,750 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 8,606,877,956 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
(f) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 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 03/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 03/31/22 |
Shares Held at 03/31/22 |
Income |
Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 1,133,003,134 | $ | — | $ | (342,025,883 | )(a) | $ | 2,018 | $ | (592,296 | ) | $ | 790,386,973 | 790,545,082 | $ | 3,405,195 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
24,820,000 | — | (9,350,000 | )(a) | — | — | 15,470,000 | 15,470,000 | 2,492 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 2,018 | $ | (592,296 | ) | $ | 805,856,973 | $ | 3,407,687 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description |
Number of Contracts |
Expiration Date |
Notional Amount |
Value/ Unrealized (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
E-Mini Health Care Sector Index |
5 | 06/17/22 | $ | 691 | $ | 6,335 |
S C H E D U L E O F I N V E S T M E N T S |
21 |
Schedule of Investments (continued) March 31, 2022 |
iShares® Biotechnology ETF |
Futures Contracts (continued)
|
||||||||||||||||
Description |
Number of Contracts |
Expiration Date |
Notional Amount |
Value/ Unrealized (Depreciation) |
||||||||||||
|
||||||||||||||||
Russell 2000 E-Mini Index |
4 | 06/17/22 | $ | 413 | $ | (190 | ) | |||||||||
|
|
|||||||||||||||
$ | 6,145 | |||||||||||||||
|
|
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:
|
||||
Equity Contracts |
||||
|
||||
Assets — Derivative Financial Instruments |
||||
Futures contracts |
||||
Unrealized appreciation on futures contracts(a) |
$ | 6,335 | ||
|
|
|||
Liabilities — Derivative Financial Instruments |
||||
Futures contracts |
||||
Unrealized depreciation on futures contracts(a) |
$ | 190 | ||
|
|
(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 March 31, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||
Equity Contracts |
||||
|
||||
Net Realized Gain (Loss) from: |
||||
Futures contracts |
$ | 491,035 | ||
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Futures contracts |
$ | 56,215 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 5,181,306 | ||
|
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.
22 |
2 0 2 2 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) March 31, 2022 |
iShares® Biotechnology 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 |
$ | 8,604,789,841 | $ | — | $ | 1,892 | $ | 8,604,791,733 | ||||||||
Money Market Funds |
805,856,973 | — | — | 805,856,973 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 9,410,646,814 | $ | — | $ | 1,892 | $ | 9,410,648,706 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Futures Contracts |
$ | 6,335 | $ | — | $ | — | $ | 6,335 | ||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
(190 | ) | — | — | (190 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 6,145 | $ | — | $ | — | $ | 6,145 | |||||||||
|
|
|
|
|
|
|
|
(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 |
23 |
Schedule of Investments March 31, 2022 |
iShares® Expanded Tech Sector ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Communications Equipment — 2.9% |
||||||||
ADTRAN Inc. |
16,340 | $ | 301,473 | |||||
Arista Networks Inc.(a) |
78,392 | 10,894,920 | ||||||
Calix Inc.(a) |
19,161 | 822,199 | ||||||
Cambium Networks Corp.(a) |
3,747 | 88,579 | ||||||
Ciena Corp.(a) |
54,127 | 3,281,720 | ||||||
Cisco Systems Inc. |
1,473,949 | 82,187,396 | ||||||
Clearfield Inc.(a) |
3,845 | 250,771 | ||||||
CommScope Holding Co. Inc.(a) |
70,394 | 554,705 | ||||||
Extreme Networks Inc.(a) |
46,463 | 567,313 | ||||||
F5 Inc.(a) |
21,227 | 4,435,382 | ||||||
Harmonic Inc.(a) |
36,023 | 334,654 | ||||||
Infinera Corp.(a) |
72,547 | 628,982 | ||||||
Juniper Networks Inc. |
113,643 | 4,222,974 | ||||||
Lumentum Holdings Inc.(a)(b) |
25,232 | 2,462,643 | ||||||
Motorola Solutions Inc. |
59,026 | 14,296,097 | ||||||
NETGEAR Inc.(a) |
8,949 | 220,861 | ||||||
NetScout Systems Inc.(a) |
25,859 | 829,557 | ||||||
Plantronics Inc.(a) |
14,552 | 573,349 | ||||||
Ribbon Communications Inc.(a) |
42,437 | 131,130 | ||||||
Ubiquiti Inc. |
2,112 | 614,930 | ||||||
Viasat Inc.(a)(b) |
25,999 | 1,268,751 | ||||||
Viavi Solutions Inc.(a) |
80,925 | 1,301,274 | ||||||
|
|
|||||||
130,269,660 | ||||||||
Electronic Equipment, Instruments & Components — 2.8% | ||||||||
Advanced Energy Industries Inc. |
13,164 | 1,133,157 | ||||||
Aeva Technologies Inc.(a) |
30,567 | 132,355 | ||||||
Amphenol Corp., Class A |
209,312 | 15,771,659 | ||||||
Arrow Electronics Inc.(a) |
23,790 | 2,822,208 | ||||||
Avnet Inc. |
34,676 | 1,407,499 | ||||||
Badger Meter Inc. |
10,392 | 1,036,186 | ||||||
Belden Inc. |
15,759 | 873,049 | ||||||
Benchmark Electronics Inc. |
12,553 | 314,327 | ||||||
CDW Corp./DE |
47,431 | 8,484,932 | ||||||
Celestica Inc.(a)(b) |
37,368 | 445,053 | ||||||
Cognex Corp. |
61,786 | 4,766,790 | ||||||
Coherent Inc.(a) |
8,656 | 2,366,204 | ||||||
Corning Inc. |
261,088 | 9,636,758 | ||||||
ePlus Inc.(a) |
9,395 | 526,684 | ||||||
Fabrinet(a) |
12,929 | 1,359,226 | ||||||
II-VI Inc.(a)(b) |
37,161 | 2,693,801 | ||||||
Insight Enterprises Inc.(a)(b) |
12,330 | 1,323,256 | ||||||
IPG Photonics Corp.(a) |
12,482 | 1,370,024 | ||||||
Itron Inc.(a) |
16,283 | 857,788 | ||||||
Jabil Inc. |
50,143 | 3,095,327 | ||||||
Keysight Technologies Inc.(a) |
63,970 | 10,105,341 | ||||||
Knowles Corp.(a) |
31,852 | 685,774 | ||||||
Littelfuse Inc. |
8,608 | 2,146,921 | ||||||
Methode Electronics Inc. |
13,548 | 585,951 | ||||||
MicroVision Inc.(a)(b) |
53,599 | 250,307 | ||||||
National Instruments Corp. |
46,093 | 1,870,915 | ||||||
Novanta Inc.(a)(b) |
12,442 | 1,770,372 | ||||||
OSI Systems Inc.(a) |
5,722 | 487,057 | ||||||
PAR Technology Corp.(a)(b) |
9,240 | 372,742 | ||||||
Plexus Corp.(a) |
9,820 | 803,374 | ||||||
Rogers Corp.(a) |
6,545 | 1,778,276 | ||||||
Sanmina Corp.(a) |
22,165 | 895,909 | ||||||
TD SYNNEX Corp. |
14,487 | 1,495,203 | ||||||
TE Connectivity Ltd. |
113,783 | 14,903,297 |
Security | Shares | Value | ||||||
Electronic Equipment, Instruments & Components (continued) |
| |||||||
Teledyne Technologies Inc.(a) |
16,306 | $ | 7,706,705 | |||||
Trimble Inc.(a) |
87,721 | 6,328,193 | ||||||
TTM Technologies Inc.(a) |
37,083 | 549,570 | ||||||
Velodyne Lidar Inc.(a) |
33,037 | 84,575 | ||||||
Vishay Intertechnology Inc. |
46,920 | 919,632 | ||||||
Vontier Corp.(b) |
59,142 | 1,501,615 | ||||||
Zebra Technologies Corp., Class A(a) |
18,550 | 7,674,135 | ||||||
|
|
|||||||
123,332,147 | ||||||||
Entertainment — 2.3% | ||||||||
Activision Blizzard Inc. |
272,264 | 21,811,069 | ||||||
Electronic Arts Inc. |
98,281 | 12,433,529 | ||||||
Netflix Inc.(a) |
155,153 | 58,118,762 | ||||||
Playtika Holding Corp.(a) |
36,701 | 709,430 | ||||||
Skillz Inc.(a)(b) |
85,432 | 256,296 | ||||||
Take-Two Interactive Software Inc.(a) |
40,336 | 6,201,257 | ||||||
Zynga Inc., Class A(a) |
371,370 | 3,431,459 | ||||||
|
|
|||||||
102,961,802 | ||||||||
Interactive Media & Services — 13.5% | ||||||||
Alphabet Inc., Class A(a) |
68,737 | 191,181,655 | ||||||
Alphabet Inc., Class C, NVS(a) |
63,483 | 177,307,384 | ||||||
Bumble Inc., Class A(a) |
25,597 | 741,801 | ||||||
Cargurus Inc.(a) |
30,559 | 1,297,535 | ||||||
Eventbrite Inc., Class A(a) |
25,411 | 375,321 | ||||||
fuboTV Inc.(a)(b) |
53,754 | 353,164 | ||||||
IAC/InterActiveCorp.(a)(b) |
29,278 | 2,935,998 | ||||||
Match Group Inc.(a) |
98,930 | 10,757,648 | ||||||
Meta Platforms Inc, Class A(a) |
807,051 | 179,455,860 | ||||||
Pinterest Inc., Class A(a) |
199,026 | 4,898,030 | ||||||
Snap Inc., Class A, NVS(a) |
378,196 | 13,611,274 | ||||||
TripAdvisor Inc.(a) |
34,614 | 938,732 | ||||||
Twitter Inc.(a) |
279,444 | 10,811,688 | ||||||
Vimeo Inc.(a) |
56,073 | 666,147 | ||||||
Yelp Inc.(a) |
23,760 | 810,454 | ||||||
Ziff Davis Inc.(a) |
16,852 | 1,630,937 | ||||||
ZoomInfo Technologies Inc.(a) |
105,687 | 6,313,741 | ||||||
|
|
|||||||
604,087,369 | ||||||||
Internet & Direct Marketing Retail — 9.4% | ||||||||
Amazon.com Inc.(a) |
119,337 | 389,032,653 | ||||||
Chewy Inc., Class A(a)(b) |
31,200 | 1,272,336 | ||||||
ContextLogic Inc., Class A(a)(b) |
112,220 | 252,495 | ||||||
DoorDash Inc., Class A(a) |
56,625 | 6,635,884 | ||||||
eBay Inc. |
218,772 | 12,526,885 | ||||||
Etsy Inc.(a) |
44,307 | 5,506,474 | ||||||
Overstock.com Inc.(a)(b) |
15,416 | 678,381 | ||||||
Porch Group Inc.(a) |
25,447 | 176,729 | ||||||
Qurate Retail Inc., Series A |
125,463 | 597,204 | ||||||
RealReal Inc. (The)(a) |
27,233 | 197,712 | ||||||
Revolve Group Inc.(a)(b) |
13,805 | 741,190 | ||||||
Shutterstock Inc. |
8,228 | 765,862 | ||||||
Stitch Fix Inc., Class A(a) |
27,871 | 280,661 | ||||||
Wayfair Inc., Class A(a)(b) |
27,252 | 3,018,977 | ||||||
|
|
|||||||
421,683,443 | ||||||||
IT Services — 16.2% | ||||||||
Accenture PLC, Class A |
220,867 | 74,482,978 | ||||||
Affirm Holdings Inc.(a)(b) |
56,691 | 2,623,660 | ||||||
Akamai Technologies Inc.(a)(b) |
56,783 | 6,779,322 | ||||||
Alliance Data Systems Corp. |
17,547 | 985,264 | ||||||
Automatic Data Processing Inc. |
146,796 | 33,401,962 | ||||||
BigCommerce Holdings Inc., Series 1(a) |
22,013 | 482,305 |
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 |
Schedule of Investments (continued) March 31, 2022 |
iShares® Expanded Tech Sector ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
IT Services (continued) |
||||||||
Block Inc.(a) |
175,119 | $ | 23,746,136 | |||||
Broadridge Financial Solutions Inc. |
40,810 | 6,354,525 | ||||||
CGI Inc.(a)(b) |
75,808 | 6,051,753 | ||||||
Cloudflare Inc., Class A(a)(b) |
97,046 | 11,616,406 | ||||||
Cognizant Technology Solutions Corp., Class A |
183,563 | 16,460,094 | ||||||
Concentrix Corp. |
14,994 | 2,497,401 | ||||||
Conduent Inc.(a) |
59,812 | 308,630 | ||||||
CSG Systems International Inc. |
11,277 | 716,879 | ||||||
Cyxtera Technologies Inc.(a) |
11,121 | 135,899 | ||||||
DXC Technology Co.(a) |
85,087 | 2,776,389 | ||||||
EPAM Systems Inc.(a) |
19,822 | 5,879,403 | ||||||
Euronet Worldwide Inc.(a) |
18,471 | 2,404,001 | ||||||
EVERTEC Inc. |
20,910 | 855,846 | ||||||
ExlService Holdings Inc.(a) |
11,637 | 1,667,233 | ||||||
Fastly Inc., Class A(a) |
38,577 | 670,468 | ||||||
Fidelity National Information Services Inc. |
212,807 | 21,370,079 | ||||||
Fiserv Inc.(a) |
207,660 | 21,056,724 | ||||||
FleetCor Technologies Inc.(a) |
28,378 | 7,067,825 | ||||||
Gartner Inc.(a) |
28,739 | 8,548,703 | ||||||
Genpact Ltd. |
59,592 | 2,592,848 | ||||||
Global Payments Inc. |
99,521 | 13,618,454 | ||||||
GoDaddy Inc., Class A(a) |
58,325 | 4,881,803 | ||||||
Grid Dynamics Holdings Inc.(a) |
15,299 | 215,410 | ||||||
International Business Machines Corp. |
313,410 | 40,749,568 | ||||||
Jack Henry & Associates Inc. |
25,451 | 5,015,120 | ||||||
Kyndryl Holdings Inc.(a) |
63,917 | 838,591 | ||||||
LiveRamp Holdings Inc.(a) |
23,796 | 889,732 | ||||||
Marqeta Inc., Class A(a) |
82,047 | 905,799 | ||||||
Mastercard Inc., Class A |
301,625 | 107,794,743 | ||||||
Maximus Inc. |
21,641 | 1,621,993 | ||||||
MongoDB Inc.(a) |
23,328 | 10,348,068 | ||||||
Okta Inc.(a) |
51,907 | 7,835,881 | ||||||
Paychex Inc. |
112,208 | 15,313,026 | ||||||
Payoneer Global Inc.(a) |
64,764 | 288,847 | ||||||
PayPal Holdings Inc.(a) |
407,156 | 47,087,591 | ||||||
Perficient Inc.(a) |
11,646 | 1,282,108 | ||||||
Rackspace Technology Inc.(a) |
21,033 | 234,728 | ||||||
Repay Holdings Corp.(a)(b) |
25,399 | 375,143 | ||||||
Sabre Corp.(a) |
113,210 | 1,293,990 | ||||||
Shift4 Payments Inc., Class A(a)(b) |
18,000 | 1,114,740 | ||||||
Shopify Inc., Class A(a)(b) |
39,836 | 26,927,543 | ||||||
Snowflake Inc., Class A(a) |
82,418 | 18,884,436 | ||||||
SolarWinds Corp. |
15,311 | 203,789 | ||||||
Squarespace Inc., Class A(a) |
9,420 | 241,340 | ||||||
Switch Inc., Class A |
46,195 | 1,423,730 | ||||||
TELUS International CDA Inc.(a)(b) |
23,362 | 577,275 | ||||||
TTEC Holdings Inc. |
6,235 | 514,512 | ||||||
Twilio Inc., Class A(a) |
58,869 | 9,702,200 | ||||||
Unisys Corp.(a) |
22,722 | 491,022 | ||||||
VeriSign Inc.(a) |
33,772 | 7,512,919 | ||||||
Verra Mobility Corp.(a) |
45,095 | 734,147 | ||||||
Visa Inc., Class A |
579,605 | 128,539,001 | ||||||
Western Union Co. (The) |
137,631 | 2,579,205 | ||||||
WEX Inc.(a) |
15,663 | 2,795,062 | ||||||
|
|
|||||||
724,364,249 | ||||||||
Life Sciences Tools & Services — 0.0% | ||||||||
Azenta Inc. |
26,178 | 2,169,633 | ||||||
|
|
|||||||
Semiconductors & Semiconductor Equipment — 19.7% |
| |||||||
ACM Research Inc., Class A(a) |
12,387 | 256,287 |
Security | Shares | Value | ||||||
Semiconductors & Semiconductor Equipment (continued) |
| |||||||
Advanced Micro Devices Inc.(a) |
571,323 | $ | 62,468,457 | |||||
Allegro MicroSystems Inc.(a) |
20,094 | 570,670 | ||||||
Ambarella Inc.(a) |
12,931 | 1,356,721 | ||||||
Amkor Technology Inc. |
35,035 | 760,960 | ||||||
Analog Devices Inc. |
183,608 | 30,328,369 | ||||||
Applied Materials Inc. |
310,354 | 40,904,657 | ||||||
Axcelis Technologies Inc.(a) |
11,741 | 886,798 | ||||||
Broadcom Inc. |
144,289 | 90,855,898 | ||||||
Cirrus Logic Inc.(a) |
20,020 | 1,697,496 | ||||||
CMC Materials Inc. |
9,986 | 1,851,404 | ||||||
Cohu Inc.(a) |
17,802 | 526,939 | ||||||
Diodes Inc.(a) |
15,733 | 1,368,614 | ||||||
Enphase Energy Inc.(a) |
46,810 | 9,445,322 | ||||||
Entegris Inc. |
47,360 | 6,216,474 | ||||||
First Solar Inc.(a) |
34,560 | 2,894,054 | ||||||
FormFactor Inc.(a) |
27,513 | 1,156,371 | ||||||
Ichor Holdings Ltd.(a) |
9,516 | 338,960 | ||||||
Impinj Inc.(a) |
6,975 | 443,192 | ||||||
Intel Corp. |
1,423,055 | 70,526,606 | ||||||
KLA Corp. |
52,672 | 19,281,112 | ||||||
Kulicke & Soffa Industries Inc. |
21,772 | 1,219,667 | ||||||
Lam Research Corp. |
48,753 | 26,210,100 | ||||||
Lattice Semiconductor Corp.(a) |
47,856 | 2,916,823 | ||||||
MACOM Technology Solutions Holdings Inc., Class H(a) |
17,046 | 1,020,544 | ||||||
Marvell Technology Inc. |
294,855 | 21,144,052 | ||||||
MaxLinear Inc.(a) |
24,734 | 1,443,229 | ||||||
Microchip Technology Inc. |
194,302 | 14,599,852 | ||||||
Micron Technology Inc. |
391,333 | 30,480,927 | ||||||
MKS Instruments Inc. |
19,381 | 2,907,150 | ||||||
Monolithic Power Systems Inc. |
15,143 | 7,354,652 | ||||||
NVIDIA Corp. |
873,687 | 238,394,235 | ||||||
NXP Semiconductors NV |
92,936 | 17,200,595 | ||||||
ON Semiconductor Corp.(a) |
150,568 | 9,427,063 | ||||||
Onto Innovation Inc.(a)(b) |
17,223 | 1,496,506 | ||||||
Power Integrations Inc. |
20,955 | 1,942,109 | ||||||
Qorvo Inc.(a) |
37,897 | 4,703,018 | ||||||
QUALCOMM Inc. |
393,849 | 60,188,004 | ||||||
Rambus Inc.(a) |
38,238 | 1,219,410 | ||||||
Semtech Corp.(a) |
22,518 | 1,561,398 | ||||||
Silicon Laboratories Inc.(a)(b) |
13,457 | 2,021,241 | ||||||
SiTime Corp.(a) |
5,239 | 1,298,329 | ||||||
Skyworks Solutions Inc. |
57,317 | 7,639,210 | ||||||
SolarEdge Technologies Inc.(a) |
18,353 | 5,916,457 | ||||||
SunPower Corp.(a) |
29,432 | 632,199 | ||||||
Synaptics Inc.(a) |
13,813 | 2,755,694 | ||||||
Teradyne Inc. |
56,967 | 6,735,208 | ||||||
Texas Instruments Inc. |
322,756 | 59,219,271 | ||||||
Ultra Clean Holdings Inc.(a) |
15,836 | 671,288 | ||||||
Universal Display Corp. |
15,153 | 2,529,793 | ||||||
Wolfspeed Inc.(a) |
43,175 | 4,915,906 | ||||||
|
|
|||||||
883,899,291 | ||||||||
Software — 23.4% | ||||||||
8x8 Inc.(a) |
41,344 | 520,521 | ||||||
ACI Worldwide Inc.(a) |
41,228 | 1,298,270 | ||||||
Adobe Inc.(a) |
164,854 | 75,110,780 | ||||||
Alarm.com Holdings Inc.(a) |
16,341 | 1,086,023 | ||||||
Altair Engineering Inc., Class A(a) |
17,751 | 1,143,164 | ||||||
Alteryx Inc., Class A(a) |
20,859 | 1,492,044 | ||||||
Anaplan Inc.(a) |
51,601 | 3,356,645 | ||||||
ANSYS Inc.(a) |
30,493 | 9,686,101 |
S C H E D U L E O F I N V E S T M E N T S |
25 |
Schedule of Investments (continued) March 31, 2022 |
iShares® Expanded Tech Sector ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Software (continued) |
||||||||
Appfolio Inc., Class A(a) |
6,784 | $ | 768,017 | |||||
Appian Corp.(a) |
14,170 | 861,819 | ||||||
Asana Inc., Class A(a) |
29,017 | 1,159,810 | ||||||
Aspen Technology Inc.(a) |
23,297 | 3,852,625 | ||||||
Autodesk Inc.(a) |
76,875 | 16,478,156 | ||||||
Avalara Inc.(a) |
30,374 | 3,022,517 | ||||||
Avaya Holdings Corp.(a) |
28,444 | 360,385 | ||||||
Bentley Systems Inc., Class B(b) |
64,341 | 2,842,585 | ||||||
Bill.com Holdings Inc.(a)(b) |
32,216 | 7,306,267 | ||||||
Black Knight Inc.(a) |
54,277 | 3,147,523 | ||||||
Blackbaud Inc.(a) |
15,622 | 935,289 | ||||||
BlackBerry Ltd.(a) |
180,768 | 1,348,529 | ||||||
Blackline Inc.(a)(b) |
18,655 | 1,365,919 | ||||||
Bottomline Technologies DE Inc.(a) |
13,316 | 754,751 | ||||||
Box Inc., Class A(a) |
51,910 | 1,508,505 | ||||||
BTRS Holdings Inc.(a) |
28,356 | 212,103 | ||||||
C3.ai Inc., Class A(a) |
25,790 | 585,433 | ||||||
Cadence Design Systems Inc.(a) |
96,853 | 15,928,444 | ||||||
CDK Global Inc. |
40,815 | 1,986,874 | ||||||
Cerence Inc.(a) |
13,970 | 504,317 | ||||||
Ceridian HCM Holding Inc.(a) |
47,805 | 3,267,950 | ||||||
Citrix Systems Inc. |
43,587 | 4,397,928 | ||||||
CommVault Systems Inc.(a) |
15,947 | 1,058,083 | ||||||
Confluent Inc., Class A(a) |
21,825 | 894,825 | ||||||
Consensus Cloud Solutions Inc.(a) |
5,398 | 324,582 | ||||||
Coupa Software Inc.(a) |
26,098 | 2,652,340 | ||||||
Crowdstrike Holdings Inc., Class A(a) |
72,760 | 16,522,341 | ||||||
CS Disco Inc.(a)(b) |
4,219 | 143,319 | ||||||
Datadog Inc., Class A(a) |
89,883 | 13,614,578 | ||||||
Descartes Systems Group Inc. (The)(a)(b) |
29,581 | 2,167,104 | ||||||
Digital Turbine Inc.(a) |
30,834 | 1,350,838 | ||||||
Docebo Inc.(a)(b) |
4,474 | 231,843 | ||||||
DocuSign Inc.(a) |
69,150 | 7,407,348 | ||||||
Dolby Laboratories Inc., Class A |
22,970 | 1,796,713 | ||||||
Domo Inc., Class B(a) |
10,587 | 535,385 | ||||||
Dropbox Inc., Class A(a) |
98,641 | 2,293,403 | ||||||
Duck Creek Technologies Inc.(a) |
27,537 | 609,118 | ||||||
Dynatrace Inc.(a) |
68,905 | 3,245,426 | ||||||
E2open Parent Holdings Inc.(a) |
63,270 | 557,409 | ||||||
Elastic NV(a) |
25,463 | 2,264,934 | ||||||
Envestnet Inc.(a) |
13,228 | 984,692 | ||||||
Everbridge Inc.(a) |
13,917 | 607,338 | ||||||
Fair Isaac Corp.(a) |
9,188 | 4,285,835 | ||||||
Five9 Inc.(a) |
23,782 | 2,625,533 | ||||||
Fortinet Inc.(a) |
47,425 | 16,207,020 | ||||||
Guidewire Software Inc.(a) |
29,115 | 2,754,861 | ||||||
HubSpot Inc.(a) |
15,687 | 7,450,384 | ||||||
InterDigital Inc. |
10,873 | 693,697 | ||||||
Intuit Inc. |
98,959 | 47,583,446 | ||||||
Jamf Holding Corp.(a)(b) |
19,591 | 681,963 | ||||||
Lightspeed Commerce Inc.(a)(b) |
46,673 | 1,422,126 | ||||||
LivePerson Inc.(a) |
23,790 | 580,952 | ||||||
Mandiant Inc.(a) |
83,869 | 1,871,117 | ||||||
Manhattan Associates Inc.(a) |
22,074 | 3,061,885 | ||||||
Marathon Digital Holdings Inc.(a) |
35,862 | 1,002,343 | ||||||
Matterport Inc, Class A(a)(b) |
67,571 | 548,677 | ||||||
Microsoft Corp. |
1,227,061 | 378,315,177 | ||||||
MicroStrategy Inc., Class A(a)(b) |
3,256 | 1,583,458 | ||||||
Mimecast Ltd.(a) |
21,757 | 1,730,987 | ||||||
Momentive Global Inc.(a) |
46,157 | 750,513 |
Security | Shares | Value | ||||||
Software (continued) |
||||||||
N-able Inc.(a)(b) |
22,932 | $ | 208,681 | |||||
nCino Inc.(a)(b) |
20,034 | 820,993 | ||||||
NCR Corp.(a) |
46,130 | 1,853,965 | ||||||
New Relic Inc.(a) |
20,812 | 1,391,907 | ||||||
NortonLifeLock Inc. |
203,347 | 5,392,762 | ||||||
Nutanix Inc., Class A(a) |
75,033 | 2,012,385 | ||||||
Open Text Corp. |
94,713 | 4,015,831 | ||||||
Oracle Corp. |
550,675 | 45,557,343 | ||||||
PagerDuty Inc.(a)(b) |
26,741 | 914,275 | ||||||
Palantir Technologies Inc., Class A(a)(b) |
559,696 | 7,684,626 | ||||||
Palo Alto Networks Inc.(a) |
34,479 | 21,463,522 | ||||||
Paycom Software Inc.(a) |
16,828 | 5,828,883 | ||||||
Paylocity Holding Corp.(a) |
13,866 | 2,853,207 | ||||||
Pegasystems Inc. |
14,272 | 1,151,037 | ||||||
Ping Identity Holding Corp.(a) |
21,928 | 601,485 | ||||||
Progress Software Corp. |
15,438 | 726,975 | ||||||
PROS Holdings Inc.(a) |
14,709 | 489,957 | ||||||
PTC Inc.(a) |
36,784 | 3,962,373 | ||||||
Q2 Holdings Inc.(a) |
19,857 | 1,224,184 | ||||||
Qualtrics International Inc., Class A(a) |
33,459 | 955,254 | ||||||
Qualys Inc.(a) |
11,669 | 1,661,782 | ||||||
Rapid7 Inc.(a) |
19,977 | 2,222,241 | ||||||
RingCentral Inc., Class A(a) |
28,696 | 3,363,458 | ||||||
Riot Blockchain Inc.(a) |
35,018 | 741,331 | ||||||
SailPoint Technologies Holdings Inc.(a)(b) |
32,593 | 1,668,110 | ||||||
salesforce.com Inc.(a) |
344,224 | 73,085,640 | ||||||
SentinelOne Inc., Class A(a) |
46,876 | 1,815,976 | ||||||
ServiceNow Inc.(a) |
69,895 | 38,923,827 | ||||||
Smartsheet Inc., Class A(a) |
44,296 | 2,426,535 | ||||||
Splunk Inc.(a) |
55,495 | 8,247,112 | ||||||
Sprout Social Inc., Class A(a) |
15,926 | 1,275,991 | ||||||
SPS Commerce Inc.(a) |
12,567 | 1,648,790 | ||||||
SS&C Technologies Holdings Inc. |
77,310 | 5,799,796 | ||||||
Sumo Logic Inc.(a) |
33,862 | 395,170 | ||||||
Synopsys Inc.(a) |
53,621 | 17,870,271 | ||||||
Telos Corp.(a) |
17,808 | 177,546 | ||||||
Tenable Holdings Inc.(a) |
32,355 | 1,869,795 | ||||||
Teradata Corp.(a) |
37,918 | 1,868,978 | ||||||
Trade Desk Inc. (The), Class A(a) |
152,399 | 10,553,631 | ||||||
Tyler Technologies Inc.(a) |
14,320 | 6,370,825 | ||||||
UiPath Inc., Class A(a) |
92,833 | 2,004,264 | ||||||
Unity Software Inc.(a) |
57,256 | 5,680,368 | ||||||
Varonis Systems Inc.(a)(b) |
37,574 | 1,786,268 | ||||||
Verint Systems Inc.(a) |
23,177 | 1,198,251 | ||||||
VMware Inc., Class A |
70,514 | 8,029,429 | ||||||
Vonage Holdings Corp.(a) |
88,235 | 1,790,288 | ||||||
Workday Inc., Class A(a) |
67,445 | 16,150,380 | ||||||
Workiva Inc.(a) |
15,779 | 1,861,922 | ||||||
Xperi Holding Corp. |
37,832 | 655,250 | ||||||
Yext Inc.(a) |
38,378 | 264,424 | ||||||
Zendesk Inc.(a) |
42,494 | 5,111,603 | ||||||
Zoom Video Communications Inc., Class A(a) |
76,189 | 8,931,636 | ||||||
Zscaler Inc.(a)(b) |
27,904 | 6,732,677 | ||||||
Zuora Inc., Class A(a)(b) |
41,329 | 619,108 | ||||||
|
|
|||||||
1,050,613,205 | ||||||||
Technology Hardware, Storage & Peripherals — 9.8% | ||||||||
3D Systems Corp.(a) |
44,721 | 745,946 | ||||||
Apple Inc. |
2,211,281 | 386,111,775 | ||||||
Avid Technology Inc.(a) |
11,945 | 416,522 | ||||||
Corsair Gaming Inc.(a)(b) |
11,091 | 234,686 |
26 |
2 0 2 2 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) March 31, 2022 |
iShares® Expanded Tech Sector ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
|
||||||||
Technology Hardware, Storage & Peripherals (continued) |
| |||||||
Dell Technologies Inc., Class C(a) |
101,343 | $ | 5,086,405 | |||||
Hewlett Packard Enterprise Co. |
452,049 | 7,553,739 | ||||||
HP Inc. |
378,485 | 13,739,005 | ||||||
NetApp Inc. |
77,682 | 6,447,606 | ||||||
Pure Storage Inc., Class A(a) |
95,242 | 3,362,995 | ||||||
Seagate Technology Holdings PLC |
70,385 | 6,327,612 | ||||||
Super Micro Computer Inc.(a) |
15,495 | 589,895 | ||||||
Western Digital Corp.(a) |
109,353 | 5,429,376 | ||||||
Xerox Holdings Corp. |
42,916 | 865,616 | ||||||
|
|
|||||||
436,911,178 | ||||||||
|
|
|||||||
Total
Common Stocks — 100.0% |
|
4,480,291,977 | ||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 1.5% |
||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.34%(c)(d)(e) |
66,317,831 | 66,304,568 |
Security | Shares | Value | ||||||
|
||||||||
Money Market Funds (continued) |
||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.25%(c)(d) |
1,479,000 | $ | 1,479,000 | |||||
|
|
|||||||
67,783,568 | ||||||||
|
|
|||||||
Total
Short-Term Investments — 1.5% |
|
67,783,568 | ||||||
|
|
|||||||
Total
Investments in Securities — 101.5% |
|
4,548,075,545 | ||||||
Other Assets, Less Liabilities — (1.5)% |
(67,096,447 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 4,480,979,098 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
Affiliate of the Fund. |
(d) |
Annualized 7-day yield as of period end. |
(e) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 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 03/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 03/31/22 |
Shares Held at |
Income |
Capital Gain from Underlying Funds |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 43,347,251 | $ | 23,041,966 | (a) | $ | — | $ | (71,288 | ) | $ | (13,361 | ) | $ | 66,304,568 | 66,317,831 | $ | 166,170 | (b) | $ | — | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
2,339,000 | — | (860,000 | )(a) | — | — | 1,479,000 | 1,479,000 | 943 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (71,288 | ) | $ | (13,361 | ) | $ | 67,783,568 | $ | 167,113 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description |
Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
E-Mini S&P Communication Services Select Sector Index |
2 | 06/17/22 | $ | 180 | $ | 9,069 | ||||||||||
E-Mini Technology Select Sector Index |
3 | 06/17/22 | 481 | 38,783 | ||||||||||||
|
|
|||||||||||||||
$ | 47,852 | |||||||||||||||
|
|
S C H E D U L E O F I N V E S T M E N T S |
27 |
Schedule of Investments (continued) March 31, 2022 |
iShares® Expanded Tech Sector ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
|
||||
Equity Contracts |
||||
|
||||
Assets — Derivative Financial Instruments |
||||
Futures contracts |
||||
Unrealized appreciation on futures contracts(a) |
$ | 47,852 | ||
|
|
(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 March 31, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||
Equity Contracts |
||||
|
||||
Net Realized Gain (Loss) from: |
||||
Futures contracts |
$ | (397,686 | ) | |
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Futures contracts |
$ | 49,681 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 2,525,216 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
Common Stocks |
$ | 4,480,291,977 | $ | — | $ | — | $ | 4,480,291,977 | ||||||||
Money Market Funds |
67,783,568 | — | — | 67,783,568 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 4,548,075,545 | $ | — | $ | — | $ | 4,548,075,545 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Futures Contracts |
$ | 47,852 | $ | — | $ | — | $ | 47,852 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
28 |
2 0 2 2 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments March 31, 2022 |
iShares® Expanded Tech-Software Sector ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Application Software — 60.4% |
||||||||
8x8 Inc.(a) |
288,110 | $ | 3,627,305 | |||||
ACI Worldwide Inc.(a) |
286,013 | 9,006,549 | ||||||
Adobe Inc.(a) |
974,759 | 444,119,696 | ||||||
Alarm.com Holdings Inc.(a) |
112,102 | 7,450,299 | ||||||
Altair Engineering Inc., Class A(a)(b) |
123,606 | 7,960,226 | ||||||
Alteryx Inc., Class A(a)(b) |
145,236 | 10,388,731 | ||||||
Anaplan Inc.(a) |
358,461 | 23,317,888 | ||||||
ANSYS Inc.(a)(b) |
211,889 | 67,306,541 | ||||||
Appfolio Inc., Class A(a)(b) |
46,813 | 5,299,700 | ||||||
Asana Inc., Class A(a)(b) |
201,890 | 8,069,543 | ||||||
Aspen Technology Inc.(a)(b) |
162,030 | 26,794,901 | ||||||
Autodesk Inc.(a) |
534,171 | 114,499,554 | ||||||
Avalara Inc.(a)(b) |
211,270 | 21,023,478 | ||||||
Avaya Holdings Corp.(a)(b) |
206,306 | 2,613,897 | ||||||
Bentley Systems Inc., Class B |
447,517 | 19,771,301 | ||||||
Bill.com Holdings Inc.(a)(b) |
223,784 | 50,751,973 | ||||||
Black Knight Inc.(a) |
377,440 | 21,887,746 | ||||||
Blackbaud Inc.(a)(b) |
108,516 | 6,496,853 | ||||||
Blackline Inc.(a)(b) |
129,862 | 9,508,496 | ||||||
Bottomline Technologies DE Inc.(a)(b) |
94,221 | 5,340,446 | ||||||
Box Inc., Class A(a)(b) |
361,093 | 10,493,363 | ||||||
BTRS Holdings Inc.(a)(b) |
186,544 | 1,395,349 | ||||||
C3.ai Inc., Class A(a)(b) |
174,619 | 3,963,851 | ||||||
Cadence Design Systems Inc.(a) |
673,009 | 110,683,060 | ||||||
CDK Global Inc. |
283,758 | 13,813,339 | ||||||
Cerence Inc.(a) |
95,958 | 3,464,084 | ||||||
Ceridian HCM Holding Inc.(a)(b) |
332,147 | 22,705,569 | ||||||
Citrix Systems Inc. |
303,032 | 30,575,929 | ||||||
Confluent Inc., Class A(a)(b) |
149,122 | 6,114,002 | ||||||
Consensus Cloud Solutions Inc.(a)(b) |
38,680 | 2,325,828 | ||||||
Coupa Software Inc.(a) |
181,299 | 18,425,417 | ||||||
CS Disco Inc.(a)(b) |
32,436 | 1,101,851 | ||||||
Datadog Inc., Class A(a)(b) |
624,570 | 94,603,618 | ||||||
Descartes Systems Group Inc. (The)(a)(b) |
205,557 | 15,059,106 | ||||||
Digital Turbine Inc.(a) |
214,666 | 9,404,518 | ||||||
Docebo Inc.(a)(b) |
32,742 | 1,696,690 | ||||||
DocuSign Inc.(a) |
480,418 | 51,462,376 | ||||||
Domo Inc., Class B(a) |
71,797 | 3,630,774 | ||||||
Dropbox Inc., Class A(a)(b) |
686,176 | 15,953,592 | ||||||
Duck Creek Technologies Inc.(a) |
183,726 | 4,064,019 | ||||||
Dynatrace Inc.(a) |
479,125 | 22,566,788 | ||||||
E2open Parent Holdings Inc.(a)(b) |
431,849 | 3,804,590 | ||||||
Elastic NV(a)(b) |
177,297 | 15,770,568 | ||||||
Envestnet Inc.(a) |
109,005 | 8,114,332 | ||||||
Everbridge Inc.(a) |
96,667 | 4,218,548 | ||||||
Fair Isaac Corp.(a)(b) |
63,920 | 29,816,123 | ||||||
Five9 Inc.(a)(b) |
165,422 | 18,262,589 | ||||||
Guidewire Software Inc.(a)(b) |
202,493 | 19,159,888 | ||||||
HubSpot Inc.(a)(b) |
109,007 | 51,771,785 | ||||||
InterDigital Inc. |
74,759 | 4,769,624 | ||||||
Intuit Inc. |
687,645 | 330,647,222 | ||||||
Jamf Holding Corp.(a)(b) |
132,975 | 4,628,860 | ||||||
Lightspeed Commerce Inc.(a)(b) |
324,305 | 9,881,573 | ||||||
LivePerson Inc.(a) |
165,167 | 4,033,378 | ||||||
Manhattan Associates Inc.(a) |
153,499 | 21,291,846 | ||||||
Marathon Digital Holdings Inc.(a)(b) |
248,873 | 6,956,000 | ||||||
Matterport Inc, Class A(a)(b) |
449,961 | 3,653,683 | ||||||
MicroStrategy Inc., Class A(a)(b) |
22,589 | 10,985,483 |
Security | Shares | Value | ||||||
Application Software (continued) |
||||||||
Mimecast Ltd.(a) |
151,365 | $ | 12,042,599 | |||||
Momentive Global Inc.(a) |
317,733 | 5,166,339 | ||||||
nCino Inc.(a)(b) |
138,531 | 5,677,000 | ||||||
NCR Corp.(a) |
320,569 | 12,883,668 | ||||||
New Relic Inc.(a)(b) |
145,133 | 9,706,495 | ||||||
Nutanix Inc., Class A(a) |
522,777 | 14,020,879 | ||||||
Open Text Corp. |
658,271 | 27,910,690 | ||||||
PagerDuty Inc.(a)(b) |
185,808 | 6,352,776 | ||||||
Palantir Technologies Inc., Class A(a)(b) |
3,889,164 | 53,398,222 | ||||||
Paycom Software Inc.(a) |
116,921 | 40,499,096 | ||||||
Paylocity Holding Corp.(a) |
96,438 | 19,844,047 | ||||||
Pegasystems Inc. |
99,183 | 7,999,109 | ||||||
PROS Holdings Inc.(a) |
97,865 | 3,259,883 | ||||||
PTC Inc.(a) |
255,794 | 27,554,130 | ||||||
Q2 Holdings Inc.(a) |
138,247 | 8,522,928 | ||||||
Qualtrics International Inc., Class A(a) |
232,817 | 6,646,925 | ||||||
RingCentral Inc., Class A(a) |
199,563 | 23,390,779 | ||||||
Riot Blockchain Inc.(a)(b) |
241,753 | 5,117,911 | ||||||
salesforce.com Inc.(a) |
2,138,150 | 453,972,008 | ||||||
Smartsheet Inc., Class A(a) |
308,101 | 16,877,773 | ||||||
Splunk Inc.(a) |
385,864 | 57,343,249 | ||||||
Sprout Social Inc., Class A(a)(b) |
110,908 | 8,885,949 | ||||||
SPS Commerce Inc.(a) |
87,467 | 11,475,670 | ||||||
SS&C Technologies Holdings Inc. |
537,203 | 40,300,969 | ||||||
Sumo Logic Inc.(a) |
220,295 | 2,570,843 | ||||||
Synopsys Inc.(a) |
372,516 | 124,148,407 | ||||||
Trade Desk Inc. (The), Class A(a)(b) |
1,058,961 | 73,333,049 | ||||||
Tyler Technologies Inc.(a) |
99,505 | 44,268,780 | ||||||
Unity Software Inc.(a) |
397,542 | 39,440,142 | ||||||
Verint Systems Inc.(a) |
159,865 | 8,265,021 | ||||||
Vonage Holdings Corp.(a) |
613,920 | 12,456,437 | ||||||
Workday Inc., Class A(a) |
468,492 | 112,185,094 | ||||||
Workiva Inc.(a)(b) |
109,646 | 12,938,228 | ||||||
Yext Inc.(a)(b) |
285,035 | 1,963,891 | ||||||
Zendesk Inc.(a)(b) |
295,223 | 35,512,375 | ||||||
Zoom Video Communications Inc., Class A(a) |
529,304 | 62,050,308 | ||||||
|
|
|||||||
3,264,486,007 | ||||||||
Interactive Home Entertainment — 5.6% | ||||||||
Activision Blizzard Inc. |
1,891,849 | 151,556,023 | ||||||
Electronic Arts Inc. |
683,066 | 86,414,680 | ||||||
Take-Two Interactive Software Inc.(a)(b) |
280,273 | 43,089,171 | ||||||
Zynga Inc., Class A(a) |
2,579,705 | 23,836,474 | ||||||
|
|
|||||||
304,896,348 | ||||||||
Interactive Media & Services — 1.8% | ||||||||
Snap Inc., Class A, NVS(a) |
2,627,001 | 94,545,766 | ||||||
|
|
|||||||
Systems Software — 32.2% |
||||||||
Appian Corp.(a)(b) |
96,705 | 5,881,598 | ||||||
BlackBerry Ltd.(a)(b) |
1,255,823 | 9,368,440 | ||||||
CommVault Systems Inc.(a) |
108,586 | 7,204,681 | ||||||
Crowdstrike Holdings Inc., Class A(a) |
505,379 | 114,761,463 | ||||||
Dolby Laboratories Inc., Class A |
159,808 | 12,500,182 | ||||||
Fortinet Inc.(a) |
329,537 | 112,615,974 | ||||||
Mandiant Inc.(a) |
583,517 | 13,018,264 | ||||||
Microsoft Corp. |
1,498,826 | 462,103,044 | ||||||
N-able Inc.(a)(b) |
165,311 | 1,504,330 | ||||||
NortonLifeLock Inc. |
1,412,982 | 37,472,283 | ||||||
Oracle Corp. |
3,829,669 | 316,828,516 | ||||||
Palo Alto Networks Inc.(a)(b) |
239,538 | 149,114,800 | ||||||
Ping Identity Holding Corp.(a)(b) |
146,979 | 4,031,634 |
S C H E D U L E O F I N V E S T M E N T S |
29 |
Schedule of Investments (continued) March 31, 2022 |
iShares® Expanded Tech-Software Sector ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
|
||||||||
Systems Software (continued) |
||||||||
Progress Software Corp. |
107,288 | $ | 5,052,192 | |||||
Qualys Inc.(a)(b) |
81,084 | 11,547,172 | ||||||
Rapid7 Inc.(a)(b) |
139,104 | 15,473,929 | ||||||
SailPoint Technologies Holdings Inc.(a)(b) |
226,861 | 11,610,746 | ||||||
SentinelOne Inc., Class A(a) |
318,271 | 12,329,819 | ||||||
ServiceNow Inc.(a) |
485,576 | 270,412,419 | ||||||
Telos Corp.(a)(b) |
128,273 | 1,278,882 | ||||||
Tenable Holdings Inc.(a)(b) |
224,816 | 12,992,117 | ||||||
Teradata Corp.(a) |
263,490 | 12,987,422 | ||||||
UiPath Inc., Class A(a)(b) |
645,075 | 13,927,169 | ||||||
Varonis Systems Inc.(a)(b) |
261,066 | 12,411,078 | ||||||
VMware Inc., Class A |
489,962 | 55,791,973 | ||||||
Xperi Holding Corp. |
253,836 | 4,396,439 | ||||||
Zscaler Inc.(a)(b) |
193,828 | 46,766,820 | ||||||
Zuora Inc., Class A(a)(b) |
286,055 | 4,285,104 | ||||||
|
|
|||||||
1,737,668,490 | ||||||||
|
|
|||||||
Total
Common Stocks — 100.0% |
|
5,401,596,611 | ||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 4.2% |
||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.34%(c)(d)(e) |
224,884,139 | 224,839,162 |
Security | Shares | Value | ||||||
|
||||||||
Money Market Funds (continued) |
||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.25%(c)(d) |
3,730,000 | $ | 3,730,000 | |||||
|
|
|||||||
228,569,162 | ||||||||
|
|
|||||||
Total
Short -Term Investments — 4.2% |
|
228,569,162 | ||||||
|
|
|||||||
Total
Investments in Securities — 104.2% |
|
5,630,165,773 | ||||||
Other Assets, Less Liabilities — (4.2)% |
(226,775,289 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 5,403,390,484 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
Affiliate of the Fund. |
(d) |
Annualized 7-day yield as of period end. |
(e) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 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 03/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 03/31/22 |
Shares Held at 03/31/22 |
Income |
Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 224,544,053 | $507,647 | (a) | $ | — | $ | (105,340 | ) | $ | (107,198 | ) | $ | 224,839,162 | 224,884,139 | $ | 738,504 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
4,920,000 | — | (1,190,000 | )(a) | — | — | 3,730,000 | 3,730,000 | 1,407 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (105,340 | ) | $ | (107,198 | ) | $ | 228,569,162 | $ | 739,911 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description |
Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
E-Mini Technology Select Sector Index |
9 | 06/17/22 | $ | 1,442 | $ | 116,349 | ||||||||||
Russell 2000 E-Mini Index |
3 | 06/17/22 | 310 | 8,901 | ||||||||||||
|
|
|||||||||||||||
$ | 125,250 | |||||||||||||||
|
|
30 |
2 0 2 2 I S H A R E S A N N U A L R E P O R T T O S H A R E H O L D E R S |
Schedule of Investments (continued) March 31, 2022 |
iShares® Expanded Tech-Software Sector ETF |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
|
||||
Equity Contracts |
||||
|
||||
Assets — Derivative Financial Instruments |
||||
Futures contracts |
||||
Unrealized appreciation on futures contracts(a) |
$ | 125,250 | ||
|
|
(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 March 31, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||
Equity Contracts |
||||
|
||||
Net Realized Gain (Loss) from: |
||||
Futures contracts |
$ | 1,199,308 | ||
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Futures contracts |
$ | 139,170 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 1,745,837 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
Common Stocks |
$ | 5,401,596,611 | $ | — | $ | — | $ | 5,401,596,611 | ||||||||
Money Market Funds |
228,569,162 | — | — | 228,569,162 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 5,630,165,773 | $ | — | $ | — | $ | 5,630,165,773 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Futures Contracts |
$ | 125,250 | $ | — | $ | — | $ | 125,250 | ||||||||
|
|
|
|
|
|
|
|
(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 |
31 |
Schedule of Investments March 31, 2022 |
iShares® North American Natural Resources ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Construction Materials — 2.4% |
||||||||
Eagle Materials Inc. |
15,513 | $ | 1,991,249 | |||||
Martin Marietta Materials Inc. |
24,531 | 9,441,737 | ||||||
Summit Materials Inc., Class A(a) |
46,504 | 1,444,414 | ||||||
Vulcan Materials Co. |
52,179 | 9,585,282 | ||||||
|
|
|||||||
22,462,682 | ||||||||
Containers & Packaging — 7.0% | ||||||||
Amcor PLC |
595,354 | 6,745,361 | ||||||
AptarGroup Inc. |
25,849 | 3,037,258 | ||||||
Avery Dennison Corp. |
32,575 | 5,667,073 | ||||||
Ball Corp. |
127,352 | 11,461,680 | ||||||
Berry Global Group Inc.(a) |
53,140 | 3,079,994 | ||||||
Crown Holdings Inc. |
49,610 | 6,205,715 | ||||||
Graphic Packaging Holding Co. |
110,966 | 2,223,759 | ||||||
Greif Inc., Class A, NVS |
10,473 | 681,373 | ||||||
International Paper Co. |
152,300 | 7,028,645 | ||||||
O-I Glass Inc.(a) |
61,420 | 809,516 | ||||||
Packaging Corp. of America |
37,368 | 5,833,518 | ||||||
Pactiv Evergreen Inc. |
16,330 | 164,280 | ||||||
Ranpak Holdings Corp.(a) |
15,796 | 322,712 | ||||||
Sealed Air Corp. |
58,326 | 3,905,509 | ||||||
Silgan Holdings Inc. |
32,914 | 1,521,614 | ||||||
Sonoco Products Co. |
38,620 | 2,416,067 | ||||||
Westrock Co. |
103,578 | 4,871,273 | ||||||
|
|
|||||||
65,975,347 | ||||||||
Energy Equipment & Services — 6.1% | ||||||||
Baker Hughes Co. |
356,099 | 12,965,565 | ||||||
ChampionX Corp.(a) |
79,359 | 1,942,708 | ||||||
Halliburton Co. |
353,306 | 13,379,698 | ||||||
Helmerich & Payne Inc. |
41,421 | 1,771,990 | ||||||
Liberty Oilfield Services Inc., Class A(a) |
41,511 | 615,193 | ||||||
NOV Inc. |
154,224 | 3,024,333 | ||||||
Schlumberger NV |
551,796 | 22,794,693 | ||||||
TechnipFMC PLC(a) |
167,195 | 1,295,761 | ||||||
|
|
|||||||
57,789,941 | ||||||||
Metals & Mining — 15.2% | ||||||||
Agnico Eagle Mines Ltd. |
178,810 | 10,950,324 | ||||||
Alamos Gold Inc., Class A |
153,518 | 1,292,622 | ||||||
Alcoa Corp. |
72,407 | 6,518,802 | ||||||
Arconic Corp.(a) |
42,016 | 1,076,450 | ||||||
B2Gold Corp. |
414,854 | 1,904,180 | ||||||
Barrick Gold Corp. |
699,615 | 17,161,556 | ||||||
Coeur Mining Inc.(a) |
101,407 | 451,261 | ||||||
Compass Minerals International Inc. |
13,444 | 844,149 | ||||||
Equinox Gold Corp.(a)(b) |
109,689 | 907,128 | ||||||
First Majestic Silver Corp.(b) |
89,296 | 1,175,135 | ||||||
Franco-Nevada Corp. |
75,229 | 12,000,530 | ||||||
Freeport-McMoRan Inc. |
577,224 | 28,711,122 | ||||||
Hecla Mining Co. |
210,986 | 1,386,178 | ||||||
Kinross Gold Corp.(b) |
514,320 | 3,024,202 | ||||||
Lithium Americas Corp.(a)(b) |
41,490 | 1,596,950 | ||||||
MP Materials Corp.(a) |
29,467 | 1,689,638 | ||||||
Newmont Corp. |
313,542 | 24,910,912 | ||||||
NovaGold Resources Inc.(a) |
95,902 | 741,322 | ||||||
Pan American Silver Corp. |
82,656 | 2,256,509 | ||||||
Royal Gold Inc. |
25,776 | 3,641,633 | ||||||
SSR Mining Inc.(b) |
83,174 | 1,809,035 | ||||||
Teck Resources Ltd., Class B |
184,259 | 7,442,221 | ||||||
Turquoise Hill Resources Ltd.(a)(b) |
38,905 | 1,168,706 |
Security | Shares | Value | ||||||
Metals & Mining (continued) |
||||||||
Wheaton Precious Metals Corp.(b) |
177,280 | $ | 8,434,982 | |||||
Yamana Gold Inc. |
376,974 | 2,103,515 | ||||||
|
|
|||||||
143,199,062 | ||||||||
Oil, Gas & Consumable Fuels — 68.5% | ||||||||
Antero Midstream Corp. |
128,089 | 1,392,327 | ||||||
Antero Resources Corp.(a) |
112,205 | 3,425,619 | ||||||
APA Corp. |
142,912 | 5,906,553 | ||||||
California Resources Corp. |
31,531 | 1,410,382 | ||||||
Cameco Corp.(b) |
156,767 | 4,561,920 | ||||||
Canadian Natural Resources Ltd. |
458,988 | 28,448,076 | ||||||
Cenovus Energy Inc. |
495,728 | 8,268,743 | ||||||
Cheniere Energy Inc. |
92,730 | 12,857,014 | ||||||
Chesapeake Energy Corp. |
40,937 | 3,561,519 | ||||||
Chevron Corp. |
542,117 | 88,272,911 | ||||||
Civitas Resources Inc. |
28,276 | 1,688,360 | ||||||
CNX Resources Corp.(a)(b) |
79,467 | 1,646,556 | ||||||
ConocoPhillips |
417,892 | 41,789,200 | ||||||
Continental Resources Inc./OK |
22,930 | 1,406,297 | ||||||
Coterra Energy Inc. |
319,892 | 8,627,487 | ||||||
Crescent Point Energy Corp. |
215,078 | 1,559,315 | ||||||
CVR Energy Inc. |
11,624 | 296,877 | ||||||
Denbury Inc.(a) |
19,654 | 1,544,215 | ||||||
Devon Energy Corp. |
247,558 | 14,638,105 | ||||||
Diamondback Energy Inc. |
66,965 | 9,179,562 | ||||||
DTE Midstream LLC(a) |
37,997 | 2,061,717 | ||||||
Enbridge Inc. |
796,671 | 36,718,566 | ||||||
Enerplus Corp. |
96,547 | 1,226,147 | ||||||
EOG Resources Inc. |
230,050 | 27,428,861 | ||||||
EQT Corp. |
118,421 | 4,074,867 | ||||||
Equitrans Midstream Corp. |
160,421 | 1,353,953 | ||||||
Exxon Mobil Corp. |
1,084,874 | 89,599,744 | ||||||
Hess Corp. |
108,383 | 11,601,316 | ||||||
HF Sinclair Corp. |
58,773 | 2,342,104 | ||||||
Kinder Morgan Inc. |
766,736 | 14,498,978 | ||||||
Magnolia Oil & Gas Corp., Class A |
57,725 | 1,365,196 | ||||||
Marathon Oil Corp. |
306,145 | 7,687,301 | ||||||
Marathon Petroleum Corp. |
227,656 | 19,464,588 | ||||||
Matador Resources Co. |
43,320 | 2,295,094 | ||||||
Murphy Oil Corp. |
57,023 | 2,303,159 | ||||||
New Fortress Energy Inc. |
16,326 | 695,651 | ||||||
Occidental Petroleum Corp. |
348,871 | 19,794,941 | ||||||
ONEOK Inc. |
175,339 | 12,384,194 | ||||||
Ovintiv Inc. |
102,716 | 5,553,854 | ||||||
PDC Energy Inc. |
38,247 | 2,779,792 | ||||||
Pembina Pipeline Corp. |
216,283 | 8,132,241 | ||||||
Phillips 66 |
183,953 | 15,891,700 | ||||||
Pioneer Natural Resources Co. |
89,269 | 22,319,928 | ||||||
Range Resources Corp.(a) |
98,113 | 2,980,673 | ||||||
Renewable Energy Group Inc.(a) |
19,787 | 1,200,082 | ||||||
SM Energy Co. |
47,693 | 1,857,642 | ||||||
Southwestern Energy Co.(a) |
438,766 | 3,145,952 | ||||||
Suncor Energy Inc. |
566,931 | 18,476,281 | ||||||
Targa Resources Corp. |
90,056 | 6,796,526 | ||||||
TC Energy Corp. |
385,648 | 21,758,260 | ||||||
Texas Pacific Land Corp. |
2,432 | 3,288,332 | ||||||
Valero Energy Corp. |
160,708 | 16,318,290 | ||||||
Whiting Petroleum Corp. |
15,440 | 1,258,514 | ||||||
Williams Companies Inc. (The) |
477,736 | 15,961,160 |
32 |
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 |
Schedule of Investments (continued) March 31, 2022 |
iShares® North American Natural Resources ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
|
||||||||
Oil, Gas & Consumable Fuels (continued) |
|
|||||||
World Fuel Services Corp. |
24,923 | $ | 673,918 | |||||
|
|
|||||||
645,770,560 | ||||||||
Paper & Forest Products — 0.6% | ||||||||
Louisiana-Pacific Corp. |
34,557 | 2,146,681 | ||||||
West Fraser Timber Co. Ltd. |
37,856 | 3,120,470 | ||||||
|
|
|||||||
5,267,151 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.8% |
940,464,743 | |||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 1.0% |
||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.34%(c)(d)(e) |
7,686,746 | 7,685,209 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.25%(c)(d) |
1,640,000 | 1,640,000 | ||||||
|
|
|||||||
9,325,209 | ||||||||
|
|
|||||||
Total
Short-Term Investments — 1.0% |
9,325,209 | |||||||
|
|
|||||||
Total
Investments in Securities — 100.8% |
949,789,952 | |||||||
Other Assets, Less Liabilities — (0.8)% |
(7,648,234 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 942,141,718 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
Affiliate of the Fund. |
(d) |
Annualized 7-day yield as of period end. |
(e) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 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 03/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 03/31/22 |
Shares Held at 03/31/22 |
Income |
Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 3,673,173 | $ | 4,027,438 | (a) | $ | — | $ | (15,219 | ) | $ | (183 | ) | $ | 7,685,209 | 7,686,746 | $ | 23,307 | (b) | $ | — | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
648,000 | 992,000 | (a) | — | — | — | 1,640,000 | 1,640,000 | 393 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (15,219 | ) | $ | (183 | ) | $ | 9,325,209 | $ | 23,700 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description |
Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
E-Mini Energy Select Sector Index |
15 | 06/17/22 | $ | 1,196 | $ | 19,998 |
S C H E D U L E O F I N V E S T M E N T S |
33 |
Schedule of Investments (continued) March 31, 2022 |
iShares® North American Natural Resources ETF |
Futures Contracts (continued)
|
||||||||||||||||
Description |
Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
E-mini Materials Select Sector Index |
3 | 06/17/22 | $ | 279 | $ | (2,827 | ) | |||||||||
|
|
|||||||||||||||
$ | 17,171 | |||||||||||||||
|
|
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:
|
||||
Equity Contracts |
||||
|
||||
Assets — Derivative Financial Instruments |
||||
Futures contracts |
||||
Unrealized appreciation on futures contracts(a) |
$ | 19,998 | ||
|
|
|||
Liabilities — Derivative Financial Instruments |
||||
Futures contracts |
||||
Unrealized depreciation on futures contracts(a) |
$ | 2,827 | ||
|
|
(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 March 31, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||
Equity Contracts |
||||
|
||||
Net Realized Gain (Loss) from: |
||||
Futures contracts |
$ | 548,844 | ||
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Futures contracts |
$ | 57,336 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 955,730 | ||
|
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.
34 |
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 |
Schedule of Investments (continued) March 31, 2022 |
iShares® North American Natural Resources 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 |
$ | 940,464,743 | $ | — | $ | — | $ | 940,464,743 | ||||||||
Money Market Funds |
9,325,209 | — | — | 9,325,209 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 949,789,952 | $ | — | $ | — | $ | 949,789,952 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Futures Contracts |
$ | 19,998 | $ | — | $ | — | $ | 19,998 | ||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
(2,827 | ) | — | — | (2,827 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 17,171 | $ | — | $ | — | $ | 17,171 | |||||||||
|
|
|
|
|
|
|
|
(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 |
35 |
Schedule of Investments March 31, 2022 |
iShares® North American Tech-Multimedia Networking ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
|
||||||||
Common Stocks |
||||||||
Communications Equipment — 99.9% |
||||||||
ADTRAN Inc. |
201,819 | $ | 3,723,561 | |||||
Arista Networks Inc.(a) |
107,317 | 14,914,917 | ||||||
Calix Inc.(a) |
146,689 | 6,294,425 | ||||||
Cambium Networks Corp.(a)(b) |
46,052 | 1,088,669 | ||||||
Ciena Corp.(a)(b) |
119,719 | 7,258,563 | ||||||
Cisco Systems Inc. |
237,174 | 13,224,822 | ||||||
Clearfield Inc.(a) |
46,925 | 3,060,449 | ||||||
CommScope Holding Co. Inc.(a) |
840,588 | 6,623,833 | ||||||
Extreme Networks Inc.(a) |
531,126 | 6,485,048 | ||||||
F5 Inc.(a) |
66,012 | 13,793,207 | ||||||
Harmonic Inc.(a)(b) |
423,212 | 3,931,639 | ||||||
Infinera Corp.(a)(b) |
838,766 | 7,272,101 | ||||||
Juniper Networks Inc. |
390,249 | 14,501,653 | ||||||
Lumentum Holdings Inc.(a)(b) |
73,499 | 7,173,502 | ||||||
Motorola Solutions Inc. |
58,368 | 14,136,730 | ||||||
NETGEAR Inc.(a)(b) |
120,293 | 2,968,831 | ||||||
NetScout Systems Inc.(a) |
222,819 | 7,148,034 | ||||||
Plantronics Inc.(a) |
175,844 | 6,928,254 | ||||||
Ribbon Communications Inc.(a) |
494,846 | 1,529,074 | ||||||
Ubiquiti Inc.(b) |
25,293 | 7,364,310 | ||||||
Viasat Inc.(a)(b) |
134,041 | 6,541,201 | ||||||
Viavi Solutions Inc.(a)(b) |
429,881 | 6,912,487 | ||||||
|
|
|||||||
162,875,310 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.9% |
162,875,310 | |||||||
|
|
Security | Shares | Value | ||||||
|
||||||||
Short-Term Investments |
||||||||
Money Market Funds — 2.8% |
||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.34%(c)(d)(e) |
4,451,918 | $ | 4,451,027 | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.25%(c)(d) |
110,000 | 110,000 | ||||||
|
|
|||||||
4,561,027 | ||||||||
|
|
|||||||
Total
Short -Term Investments — 2.8% |
4,561,027 | |||||||
|
|
|||||||
Total
Investments in Securities — 102.7% |
167,436,337 | |||||||
Other Assets, Less Liabilities — (2.7)% |
(4,463,955 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 162,972,382 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
Affiliate of the Fund. |
(d) |
Annualized 7-day yield as of period end. |
(e) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 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 03/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value
at 03/31/22 |
Shares Held at 03/31/22 |
Income |
Capital Gain |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 12,333,755 | $ | — | $ | (7,878,389 | )(a) | $ | (3,589 | ) | $ | (750 | ) | $ | 4,451,027 | 4,451,918 | $ | 12,516 | (b) | $ | — | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
100,000 | 10,000 | (a) | — | — | — | 110,000 | 110,000 | 33 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (3,589 | ) | $ | (750 | ) | $ | 4,561,027 | $ | 12,549 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
36 |
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 |
Schedule of Investments (continued) March 31, 2022 |
iShares® North American Tech-Multimedia Networking ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
Russell 2000 E-Mini Index |
1 | 06/17/22 | $ | 103 | $ | 2,967 | ||||||||||
|
|
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:
|
||||
Equity Contracts |
||||
|
||||
Assets — Derivative Financial Instruments |
||||
Futures contracts |
||||
Unrealized appreciation on futures contracts(a) |
$ | 2,967 | ||
|
|
(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 March 31, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||
Equity Contracts |
||||
|
||||
Net Realized Gain (Loss) from: |
||||
Futures contracts |
$ | (15,819 | ) | |
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Futures contracts |
$ | 2,967 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 65,100 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
Common Stocks |
$ | 162,875,310 | $ | — | $ | — | $ | 162,875,310 | ||||||||
Money Market Funds |
4,561,027 | — | — | 4,561,027 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 167,436,337 | $ | — | $ | — | $ | 167,436,337 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Futures Contracts |
$ | 2,967 | $ | — | $ | — | $ | 2,967 | ||||||||
|
|
|
|
|
|
|
|
(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 |
37 |
Schedule of Investments March 31, 2022 |
iShares® Semiconductor ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
|
||||||||
Common Stocks |
||||||||
Semiconductor Equipment — 20.5% | ||||||||
Applied Materials Inc. |
2,654,533 | $ | 349,867,450 | |||||
ASML Holding NV(a) |
493,456 | 329,594,066 | ||||||
Entegris Inc.(b) |
1,305,843 | 171,404,952 | ||||||
KLA Corp. |
1,022,205 | 374,188,362 | ||||||
Lam Research Corp. |
634,612 | 341,173,758 | ||||||
MKS Instruments Inc. |
535,255 | 80,288,250 | ||||||
Teradyne Inc. |
1,569,497 | 185,561,630 | ||||||
|
|
|||||||
1,832,078,468 | ||||||||
Semiconductors — 79.3% | ||||||||
Advanced Micro Devices Inc.(c) |
5,776,527 | 631,605,462 | ||||||
Analog Devices Inc. |
2,222,461 | 367,106,108 | ||||||
ASE Technology Holding Co. Ltd., ADR |
6,610,643 | 46,869,459 | ||||||
Broadcom Inc. |
1,212,851 | 763,708,018 | ||||||
Intel Corp. |
11,155,041 | 552,843,832 | ||||||
Lattice Semiconductor Corp.(c) |
1,320,996 | 80,514,706 | ||||||
Marvell Technology Inc. |
5,213,498 | 373,859,942 | ||||||
Microchip Technology Inc. |
5,065,238 | 380,601,983 | ||||||
Micron Technology Inc. |
4,008,984 | 312,259,764 | ||||||
Monolithic Power Systems Inc. |
420,573 | 204,263,895 | ||||||
NVIDIA Corp. |
2,921,783 | 797,237,709 | ||||||
NXP Semiconductors NV |
1,873,755 | 346,794,575 | ||||||
ON Semiconductor Corp.(c) |
4,134,299 | 258,848,460 | ||||||
Qorvo Inc.(c) |
1,046,015 | 129,810,461 | ||||||
QUALCOMM Inc. |
3,093,758 | 472,788,097 | ||||||
Skyworks Solutions Inc. |
1,585,102 | 211,262,395 | ||||||
STMicroelectronics NV., ADR(b) |
2,730,427 | 118,009,055 | ||||||
Synaptics Inc.(b)(c) |
376,822 | 75,175,989 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR |
3,073,485 | 320,441,546 | ||||||
Texas Instruments Inc. |
2,095,645 | 384,508,945 | ||||||
United Microelectronics Corp., ADR(b) |
7,486,499 | 68,276,871 |
Security | Shares | Value | ||||||
|
||||||||
Semiconductors (continued) |
||||||||
Universal Display Corp. |
429,982 | $ | 71,785,495 | |||||
Wolfspeed Inc.(b)(c) |
1,189,958 | 135,488,618 | ||||||
|
|
|||||||
7,104,061,385 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.8% |
8,936,139,853 | |||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 2.3% |
||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.34%(d)(e)(f) |
186,661,038 | 186,623,706 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.25%(d)(e) |
15,210,000 | 15,210,000 | ||||||
|
|
|||||||
201,833,706 | ||||||||
|
|
|||||||
Total
Short -Term Investments — 2.3% |
|
201,833,706 | ||||||
|
|
|||||||
Total
Investments in Securities — 102.1% |
|
9,137,973,559 | ||||||
Other Assets, Less Liabilities — (2.1)% |
|
(185,124,802 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
$ | 8,952,848,757 | ||||||
|
|
(a) |
This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(b) |
All or a portion of this security is on loan. |
(c) |
Non-income producing security. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
(f) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended March 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 03/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value
at 03/31/22 |
Shares Held at |
Income |
Capital Gain |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 33,454,684 | $ | 153,312,942 | (a) | $ | — | $ | (136,626 | ) | $ | (7,294 | ) | $ | 186,623,706 | 186,661,038 | $ | 583,403 | (b) | $ | — | |||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
9,855,000 | 5,355,000 | (a) | — | — | — | 15,210,000 | 15,210,000 | 2,900 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (136,626 | ) | $ | (7,294 | ) | $ | 201,833,706 | $ | 586,303 | $ | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Represents net amount purchased (sold). |
(b) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
38 |
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 |
Schedule of Investments (continued) March 31, 2022 |
iShares® Semiconductor ETF |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
E-Mini Technology Select Sector Index |
76 | 06/17/22 | $ | 12,181 | $ | 751,245 | ||||||||||
Russell 2000 E-Mini Index |
38 | 06/17/22 | 3,926 | 72,649 | ||||||||||||
|
|
|||||||||||||||
$ | 823,894 | |||||||||||||||
|
|
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:
|
||||
Equity Contracts |
||||
|
||||
Assets — Derivative Financial Instruments |
||||
Futures contracts |
||||
Unrealized appreciation on futures contracts(a) |
$ | 823,894 | ||
|
|
(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 March 31, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||
Equity Contracts |
||||
|
||||
Net Realized Gain (Loss) from: |
||||
Futures contracts |
$ | 871,200 | ||
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Futures contracts |
$ | 898,798 | ||
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 13,280,625 | ||
|
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.
S C H E D U L E O F I N V E S T M E N T S |
39 |
Schedule of Investments (continued) March 31, 2022 |
iShares® Semiconductor 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 |
$ | 8,936,139,853 | $ | — | $ | — | $ | 8,936,139,853 | ||||||||
Money Market Funds |
201,833,706 | — | — | 201,833,706 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 9,137,973,559 | $ | — | $ | — | $ | 9,137,973,559 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Assets |
||||||||||||||||
Futures Contracts |
$ | 823,894 | $ | — | $ | — | $ | 823,894 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
40 |
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 |
Statements of Assets and Liabilities
March 31, 2022
iShares Biotechnology ETF |
iShares Expanded Tech Sector ETF |
iShares Expanded Tech-Software Sector ETF |
iShares North American Natural Resources ETF |
|||||||||||||
|
||||||||||||||||
ASSETS |
||||||||||||||||
Investments in securities, at value (including securities on loan)(a): |
||||||||||||||||
Unaffiliated(b) |
$ | 8,604,791,733 | $ | 4,480,291,977 | $ | 5,401,596,611 | $ | 940,464,743 | ||||||||
Affiliated(c) |
805,856,973 | 67,783,568 | 228,569,162 | 9,325,209 | ||||||||||||
Cash |
55,351 | 1,605 | 9,669 | — | ||||||||||||
Cash pledged: |
||||||||||||||||
Futures contracts |
718,000 | 43,000 | 110,000 | 118,000 | ||||||||||||
Receivables: |
||||||||||||||||
Investments sold |
1,847,256 | — | — | — | ||||||||||||
Securities lending income — Affiliated |
415,938 | 14,534 | 50,813 | 2,994 | ||||||||||||
Capital shares sold |
— | 8,155 | 74,945 | 38,966 | ||||||||||||
Dividends |
1,517 | 581,620 | 3,915 | 839,088 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
9,413,686,768 | 4,548,724,459 | 5,630,415,115 | 950,789,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES |
||||||||||||||||
Bank overdraft |
— | — | — | 382,921 | ||||||||||||
Collateral on securities loaned, at value |
790,612,472 | 66,405,433 | 225,082,253 | 7,668,979 | ||||||||||||
Payables: |
||||||||||||||||
Investments purchased |
12,833,990 | — | 42,646 | 237,816 | ||||||||||||
Variation margin on futures contracts |
131,456 | 9,690 | 22,635 | 19,020 | ||||||||||||
Capital shares redeemed |
111,199 | — | 161,049 | 38,678 | ||||||||||||
Investment advisory fees |
3,119,695 | 1,330,238 | 1,716,048 | 299,868 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
806,808,812 | 67,745,361 | 227,024,631 | 8,647,282 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 8,606,877,956 | $ | 4,480,979,098 | $ | 5,403,390,484 | $ | 942,141,718 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS CONSIST OF: |
||||||||||||||||
Paid-in capital |
$ | 13,758,550,203 | $ | 3,182,207,234 | $ | 7,097,978,300 | $ | 1,337,510,644 | ||||||||
Accumulated earnings (loss) |
(5,151,672,247 | ) | 1,298,771,864 | (1,694,587,816 | ) | (395,368,926 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 8,606,877,956 | $ | 4,480,979,098 | $ | 5,403,390,484 | $ | 942,141,718 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares outstanding |
66,100,000 | 11,550,000 | 15,700,000 | 23,300,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net asset value |
$ | 130.21 | $ | 387.96 | $ | 344.16 | $ | 40.44 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares authorized |
Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Par value |
None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(a) Securities loaned, at value |
$ | 754,141,339 | $ | 63,325,121 | $ | 217,811,484 | $ | 7,591,621 | ||||||||
(b) Investments, at cost — Unaffiliated |
$ | 11,536,688,808 | $ | 3,159,644,495 | $ | 6,906,620,583 | $ | 833,145,632 | ||||||||
(c) Investments, at cost — Affiliated |
$ | 805,768,700 | $ | 67,760,591 | $ | 228,529,237 | $ | 9,323,985 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
41 |
Statements of Assets and Liabilities (continued)
March 31, 2022
iShares North American Tech-Multimedia Networking ETF |
iShares Semiconductor ETF |
|||||||
|
||||||||
ASSETS |
||||||||
Investments in securities, at value (including securities on loan)(a): |
||||||||
Unaffiliated(b) |
$ | 162,875,310 | $ | 8,936,139,853 | ||||
Affiliated(c) |
4,561,027 | 201,833,706 | ||||||
Cash |
9,165 | 9,492 | ||||||
Cash pledged: |
||||||||
Futures contracts |
7,000 | 998,000 | ||||||
Receivables: |
||||||||
Securities lending income — Affiliated |
759 | 177,736 | ||||||
Capital shares sold |
— | 134,626 | ||||||
Dividends |
51,837 | 3,648,014 | ||||||
|
|
|
|
|||||
Total assets |
167,505,098 | 9,142,941,427 | ||||||
|
|
|
|
|||||
LIABILITIES |
||||||||
Collateral on securities loaned, at value |
4,454,251 | 186,684,097 | ||||||
Payables: |
||||||||
Variation margin on futures contracts |
1,109 | 205,360 | ||||||
Capital shares redeemed |
18,599 | 227,089 | ||||||
Investment advisory fees |
58,757 | 2,976,124 | ||||||
|
|
|
|
|||||
Total liabilities |
4,532,716 | 190,092,670 | ||||||
|
|
|
|
|||||
NET ASSETS |
$ | 162,972,382 | $ | 8,952,848,757 | ||||
|
|
|
|
|||||
NET ASSETS CONSIST OF: |
||||||||
Paid-in capital |
$ | 232,636,771 | $ | 9,375,284,910 | ||||
Accumulated loss |
(69,664,389 | ) | (422,436,153 | ) | ||||
|
|
|
|
|||||
NET ASSETS |
$ | 162,972,382 | $ | 8,952,848,757 | ||||
|
|
|
|
|||||
Shares outstanding |
2,200,000 | 18,950,000 | ||||||
|
|
|
|
|||||
Net asset value |
$ | 74.08 | $ | 472.45 | ||||
|
|
|
|
|||||
Shares authorized |
Unlimited | Unlimited | ||||||
|
|
|
|
|||||
Par value |
None | None | ||||||
|
|
|
|
|||||
(a) Securities loaned, at value |
$ | 4,304,334 | $ | 177,824,746 | ||||
(b) Investments, at cost — Unaffiliated |
$ | 161,143,727 | $ | 9,091,545,714 | ||||
(c) Investments, at cost — Affiliated |
$ | 4,560,371 | $ | 201,812,434 |
See notes to financial statements.
42 |
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 |
Year Ended March 31, 2022
iShares Biotechnology ETF |
iShares Expanded Tech Sector ETF |
iShares Expanded Tech-Software Sector ETF |
iShares North American Natural ETF |
|||||||||||||
|
||||||||||||||||
INVESTMENT INCOME |
||||||||||||||||
Dividends — Unaffiliated |
$ | 61,933,703 | $ | 20,317,081 | $ | 13,212,817 | $ | 17,318,982 | ||||||||
Dividends — Affiliated |
59,123 | 9,902 | 23,639 | 1,509 | ||||||||||||
Securities lending income — Affiliated — net |
3,348,564 | 157,211 | 716,272 | 22,191 | ||||||||||||
Foreign taxes withheld |
(610,163 | ) | (37,392 | ) | (80,205 | ) | (646,762 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total investment income |
64,731,227 | 20,446,802 | 13,872,523 | 16,695,920 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
EXPENSES |
||||||||||||||||
Investment advisory fees |
44,204,613 | 14,682,392 | 21,906,998 | 2,023,331 | ||||||||||||
Professional fees |
217 | 217 | 217 | 217 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
44,204,830 | 14,682,609 | 21,907,215 | 2,023,548 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income (loss) |
20,526,397 | 5,764,193 | (8,034,692 | ) | 14,672,372 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments — Unaffiliated |
(792,662,943 | ) | 3,939,330 | (79,058,164 | ) | (19,042,590 | ) | |||||||||
Investments — Affiliated |
2,018 | (71,288 | ) | (105,340 | ) | (15,219 | ) | |||||||||
In-kind redemptions — Unaffiliated |
1,414,179,983 | 348,521,599 | 1,323,410,904 | 13,464,642 | ||||||||||||
Futures contracts |
491,035 | (397,686 | ) | 1,199,308 | 548,844 | |||||||||||
Foreign currency transactions |
— | — | — | 3,138 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized gain (loss) |
622,010,093 | 351,991,955 | 1,245,446,708 | (5,041,185 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments — Unaffiliated |
(1,958,210,197 | ) | (25,170,930 | ) | (1,376,865,169 | ) | 222,115,917 | |||||||||
Investments — Affiliated |
(592,296 | ) | (13,361 | ) | (107,198 | ) | (183 | ) | ||||||||
Futures contracts |
56,215 | 49,681 | 139,170 | 57,336 | ||||||||||||
Foreign currency translations |
— | — | — | 1,910 | ||||||||||||
Short sales — Unaffiliated |
102 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) |
(1,958,746,176 | ) | (25,134,610 | ) | (1,376,833,197 | ) | 222,174,980 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized and unrealized gain (loss) |
(1,336,736,083 | ) | 326,857,345 | (131,386,489 | ) | 217,133,795 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (1,316,209,686 | ) | $ | 332,621,538 | $ | (139,421,181 | ) | $ | 231,806,167 | ||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
43 |
Statements of Operations (continued)
Year Ended March 31, 2022
iShares North American ETF |
iShares Semiconductor ETF |
|||||||||||
|
||||||||||||
INVESTMENT INCOME |
||||||||||||
Dividends — Unaffiliated |
$ | 743,758 | $ | 92,914,581 | ||||||||
Dividends — Affiliated |
279 | 11,015 | ||||||||||
Securities lending income — Affiliated — net |
12,270 | 575,288 | ||||||||||
Foreign taxes withheld |
— | (2,543,337 | ) | |||||||||
|
|
|
|
|||||||||
Total investment income |
756,307 | 90,957,547 | ||||||||||
|
|
|
|
|||||||||
EXPENSES |
||||||||||||
Investment advisory fees |
490,208 | 31,481,764 | ||||||||||
Commitment fees |
— | 20,455 | ||||||||||
Professional fees |
217 | 217 | ||||||||||
|
|
|
|
|||||||||
Total expenses |
490,425 | 31,502,436 | ||||||||||
|
|
|
|
|||||||||
Net investment income |
265,882 | 59,455,111 | ||||||||||
|
|
|
|
|||||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||
Net realized gain (loss) from: |
||||||||||||
Investments — Unaffiliated |
(462,382 | ) | (184,675,826 | ) | ||||||||
Investments — Affiliated |
(3,589 | ) | (136,626 | ) | ||||||||
In-kind redemptions — Unaffiliated |
12,700,689 | 1,741,103,798 | ||||||||||
Futures contracts |
(15,819 | ) | 871,200 | |||||||||
|
|
|
|
|||||||||
Net realized gain |
12,218,899 | 1,557,162,546 | ||||||||||
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||
Investments — Unaffiliated |
(2,029,391 | ) | (983,179,909 | ) | ||||||||
Investments — Affiliated |
(750 | ) | (7,294 | ) | ||||||||
Futures contracts |
2,967 | 898,798 | ||||||||||
|
|
|
|
|||||||||
Net change in unrealized appreciation (depreciation) |
(2,027,174 | ) | (982,288,405 | ) | ||||||||
|
|
|
|
|||||||||
Net realized and unrealized gain |
10,191,725 | 574,874,141 | ||||||||||
|
|
|
|
|||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 10,457,607 | $ | 634,329,252 | ||||||||
|
|
|
|
See notes to financial statements.
44 |
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 |
Statements of Changes in Net Assets
iShares Biotechnology ETF | iShares Expanded Tech Sector ETF | |||||||||||||||
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
|||||||||||||
|
||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||
OPERATIONS |
||||||||||||||||
Net investment income |
$ | 20,526,397 | $ | 22,963,639 | $ | 5,764,193 | $ | 7,522,231 | ||||||||
Net realized gain |
622,010,093 | 1,573,276,301 | 351,991,955 | 155,422,525 | ||||||||||||
Net change in unrealized appreciation (depreciation) |
(1,958,746,176 | ) | 1,144,045,717 | (25,134,610 | ) | 1,121,446,883 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in net assets resulting from operations |
(1,316,209,686 | ) | 2,740,285,657 | 332,621,538 | 1,284,391,639 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(20,365,764 | ) | (26,026,125 | ) | (6,535,033 | ) | (8,184,628 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||
Net increase in net assets derived from capital share transactions |
94,871,036 | 790,357,567 | 945,279,952 | 225,617,802 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
||||||||||||||||
Total increase (decrease) in net assets |
(1,241,704,414 | ) | 3,504,617,099 | 1,271,366,457 | 1,501,824,813 | |||||||||||
Beginning of year |
9,848,582,370 | 6,343,965,271 | 3,209,612,641 | 1,707,787,828 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
End of year |
$ | 8,606,877,956 | $ | 9,848,582,370 | $ | 4,480,979,098 | $ | 3,209,612,641 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
45 |
Statements of Changes in Net Assets (continued)
iShares Expanded Tech-Software Sector ETF |
iShares North American Natural Resources ETF | |||||||||||||||
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
|||||||||||||
|
||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||
OPERATIONS |
||||||||||||||||
Net investment income (loss) |
$ | (8,034,692 | ) | $ | (4,994,506 | ) | $ | 14,672,372 | $ | 11,307,892 | ||||||
Net realized gain (loss) |
1,245,446,708 | 1,924,332,673 | (5,041,185 | ) | (57,251,765 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) |
(1,376,833,197 | ) | 248,277,573 | 222,174,980 | 227,665,109 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in net assets resulting from operations |
(139,421,181 | ) | 2,167,615,740 | 231,806,167 | 181,721,236 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
— | (1,076,738 | ) | (15,154,197 | ) | (12,822,042 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
492,759,205 | (147,637,588 | ) | 328,467,837 | (66,573,691 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
||||||||||||||||
Total increase in net assets |
353,338,024 | 2,018,901,414 | 545,119,807 | 102,325,503 | ||||||||||||
Beginning of year |
5,050,052,460 | 3,031,151,046 | 397,021,911 | 294,696,408 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
End of year |
$ | 5,403,390,484 | $ | 5,050,052,460 | $ | 942,141,718 | $ | 397,021,911 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
46 |
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 |
Statements of Changes in Net Assets (continued)
iShares North American Tech-Multimedia Networking ETF |
iShares Semiconductor ETF |
|||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/22 |
Year Ended 03/31/21 |
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||||||||||
Net investment income |
$ | 265,882 | $ | 295,055 | $ | 59,455,111 | $ | 40,983,638 | ||||||||||||||||||||
Net realized gain (loss) |
12,218,899 | (288,243 | ) | 1,557,162,546 | 1,417,069,739 | |||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) |
(2,027,174 | ) | 23,978,068 | (982,288,405 | ) | 1,183,337,044 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net increase in net assets resulting from operations |
10,457,607 | 23,984,880 | 634,329,252 | 2,641,390,421 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a) |
||||||||||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(284,071 | ) | (307,049 | ) | (61,257,081 | ) | (40,572,378 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||||||||||
Net increase in net assets derived from capital share transactions |
52,044,106 | 33,741,764 | 2,060,808,454 | 1,576,185,144 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
NET ASSETS |
||||||||||||||||||||||||||||
Total increase in net assets |
62,217,642 | 57,419,595 | 2,633,880,625 | 4,177,003,187 | ||||||||||||||||||||||||
Beginning of year |
100,754,740 | 43,335,145 | 6,318,968,132 | 2,141,964,945 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
End of year |
$ | 162,972,382 | $ | 100,754,740 | $ | 8,952,848,757 | $ | 6,318,968,132 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
47 |
(For a share outstanding throughout each period)
iShares Biotechnology ETF | ||||||||||||||||||||
|
|
|||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
03/31/22 | 03/31/21 | 03/31/20 | 03/31/19 | 03/31/18 | (a) | |||||||||||||||
|
||||||||||||||||||||
Net asset value, beginning of year |
$ | 150.36 | $ | 107.98 | $ | 111.78 | $ | 106.73 | $ | 97.75 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income(b) |
0.31 | 0.34 | 0.26 | 0.16 | 0.15 | |||||||||||||||
Net realized and unrealized gain (loss)(c) |
(20.15 | ) | 42.43 | (3.80 | ) | 5.08 | 9.05 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net increase (decrease) from investment operations |
(19.84 | ) | 42.77 | (3.54 | ) | 5.24 | 9.20 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Distributions(d) |
||||||||||||||||||||
From net investment income |
(0.31 | ) | (0.39 | ) | (0.26 | ) | (0.19 | ) | (0.22 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions |
(0.31 | ) | (0.39 | ) | (0.26 | ) | (0.19 | ) | (0.22 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value, end of year |
$ | 130.21 | $ | 150.36 | $ | 107.98 | $ | 111.78 | $ | 106.73 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Return(e) |
||||||||||||||||||||
Based on net asset value |
(13.22 | )% | 39.63 | % | (3.17 | )% | 4.92 | % | 9.41 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios to Average Net Assets(f) |
||||||||||||||||||||
Total expenses |
0.44 | % | 0.45 | % | 0.46 | % | 0.47 | % | 0.47 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income |
0.21 | % | 0.24 | % | 0.24 | % | 0.15 | % | 0.14 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||||||||
Net assets, end of year (000) |
$ | 8,606,878 | $ | 9,848,582 | $ | 6,343,965 | $ | 8,026,142 | $ | 9,040,121 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio turnover rate(g) |
46 | % | 34 | % | 29 | % | 18 | % | 26 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Per share amounts reflect a three-for-one stock split effective after the close of trading on November 30, 2017. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
48 |
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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Expanded Tech Sector ETF | ||||||||||||||||||||
|
|
|||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
03/31/22 | 03/31/21 | 03/31/20 | 03/31/19 | 03/31/18 | ||||||||||||||||
|
||||||||||||||||||||
Net asset value, beginning of year |
$ | 360.63 | $ | 212.15 | $ | 206.22 | $ | 179.48 | $ | 138.39 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income(a) |
0.64 | 0.86 | 1.26 | 1.09 | 0.88 | |||||||||||||||
Net realized and unrealized gain(b) |
27.37 | 148.55 | 6.00 | 26.69 | 41.18 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net increase from investment operations |
28.01 | 149.41 | 7.26 | 27.78 | 42.06 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Distributions(c) |
||||||||||||||||||||
From net investment income |
(0.68 | ) | (0.93 | ) | (1.33 | ) | (1.04 | ) | (0.97 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions |
(0.68 | ) | (0.93 | ) | (1.33 | ) | (1.04 | ) | (0.97 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value, end of year |
$ | 387.96 | $ | 360.63 | $ | 212.15 | $ | 206.22 | $ | 179.48 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Return(d) |
||||||||||||||||||||
Based on net asset value |
7.76 | % | 70.51 | % | 3.51 | % | 15.52 | % | 30.48 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios to Average Net Assets(e) |
||||||||||||||||||||
Total expenses |
0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income |
0.16 | % | 0.28 | % | 0.56 | % | 0.56 | % | 0.55 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||||||||
Net assets, end of year (000) |
$ | 4,480,979 | $ | 3,209,613 | $ | 1,707,788 | $ | 1,587,932 | $ | 1,462,726 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio turnover rate(f) |
8 | % | 9 | % | 10 | % | 8 | % | 6 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(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 excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
49 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Expanded Tech-Software Sector ETF | ||||||||||||||||||||
|
|
|||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
03/31/22 | 03/31/21 | 03/31/20 | 03/31/19 | 03/31/18 | ||||||||||||||||
|
||||||||||||||||||||
Net asset value, beginning of year |
$ | 341.22 | $ | 209.77 | $ | 210.77 | $ | 169.69 | $ | 126.45 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income (loss)(a) |
(0.56 | ) | (0.31 | ) | 1.28 | (b) | 0.24 | 0.12 | ||||||||||||
Net realized and unrealized gain (loss)(c) |
3.50 | 131.83 | (1.06 | ) | 41.10 | 43.23 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net increase from investment operations |
2.94 | 131.52 | 0.22 | 41.34 | 43.35 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Distributions(d) |
||||||||||||||||||||
From net investment income |
— | (0.07 | ) | (1.22 | ) | (0.26 | ) | (0.11 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total distributions |
— | (0.07 | ) | (1.22 | ) | (0.26 | ) | (0.11 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net asset value, end of year |
$ | 344.16 | $ | 341.22 | $ | 209.77 | $ | 210.77 | $ | 169.69 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Return(e) |
||||||||||||||||||||
Based on net asset value |
0.86 | % | 62.70 | % | 0.13 | % | 24.39 | % | 34.30 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios to Average Net Assets(f) |
||||||||||||||||||||
Total expenses |
0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net investment income (loss) |
(0.15 | )% | (0.10 | )% | 0.57 | %(b) | 0.13 | % | 0.08 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||||||||
Net assets, end of year (000) |
$ | 5,403,390 | $ | 5,050,052 | $ | 3,031,151 | $ | 2,729,463 | $ | 1,357,537 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio turnover rate(g) |
15 | % | 22 | % | 18 | % | 18 | % | 12 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average shares outstanding. |
(b) |
Includes a one-time special distribution from NortonLifeLock Inc. Excluding such special distribution, the net investment income would have been $(0.07) per share and (0.03)% of average net assets. |
(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) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
50 |
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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares North American Natural Resources ETF | ||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
Year Ended 03/31/18 |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year |
$ | 27.57 | $ | 16.65 | $ | 31.40 | $ | 33.08 | $ | 34.26 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net investment income(a) |
0.93 | 0.70 | 0.78 | 0.65 | 0.75 | |||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss)(b) |
12.85 | 11.04 | (13.82 | ) | (1.59 | ) | (1.16 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net increase (decrease) from investment operations |
13.78 | 11.74 | (13.04 | ) | (0.94 | ) | (0.41 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Distributions(c) |
||||||||||||||||||||||||||||||||||||||
From net investment income |
(0.91 | ) | (0.82 | ) | (1.71 | ) | (0.74 | ) | (0.77 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total distributions |
(0.91 | ) | (0.82 | ) | (1.71 | ) | (0.74 | ) | (0.77 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net asset value, end of year |
$ | 40.44 | $ | 27.57 | $ | 16.65 | $ | 31.40 | $ | 33.08 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total Return(d) |
||||||||||||||||||||||||||||||||||||||
Based on net asset value |
50.84 | % | 71.57 | % | (43.54 | )% | (2.87 | )% | (1.19 | )% | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Ratios to Average Net Assets(e) |
||||||||||||||||||||||||||||||||||||||
Total expenses |
0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net investment income |
2.92 | % | 3.14 | % | 2.72 | % | 1.94 | % | 2.25 | % | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||||||||||||
Net assets, end of year (000) |
$ | 942,142 | $ | 397,022 | $ | 294,696 | $ | 761,370 | $ | 929,571 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Portfolio turnover rate(f) |
15 | % | 14 | % | 16 | % | 12 | % | 7 | % | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
51 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares North American Tech-Multimedia Networking ETF | ||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
Year Ended 03/31/18 |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year |
$ | 67.17 | $ | 43.34 | $ | 56.49 | $ | 51.48 | $ | 45.54 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net investment income(a) |
0.16 | 0.29 | 0.26 | 0.23 | 0.30 | |||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss)(b) |
6.91 | 23.83 | (13.10 | ) | 5.04 | 5.95 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net increase (decrease) from investment operations |
7.07 | 24.12 | (12.84 | ) | 5.27 | 6.25 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Distributions(c) |
||||||||||||||||||||||||||||||||||||||
From net investment income |
(0.16 | ) | (0.29 | ) | (0.31 | ) | (0.26 | ) | (0.31 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total distributions |
(0.16 | ) | (0.29 | ) | (0.31 | ) | (0.26 | ) | (0.31 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net asset value, end of year |
$ | 74.08 | $ | 67.17 | $ | 43.34 | $ | 56.49 | $ | 51.48 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total Return(d) |
||||||||||||||||||||||||||||||||||||||
Based on net asset value |
10.53 | % | 55.89 | % | (22.80 | )% | 10.27 | % | 13.77 | % | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Ratios to Average Net Assets(e) |
||||||||||||||||||||||||||||||||||||||
Total expenses |
0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net investment income |
0.22 | % | 0.52 | % | 0.47 | % | 0.44 | % | 0.63 | % | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||||||||||||
Net assets, end of year (000) |
$ | 162,972 | $ | 100,755 | $ | 43,335 | $ | 132,758 | $ | 64,349 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Portfolio turnover rate(f) |
37 | % | 38 | % | 33 | % | 29 | % | 23 | % | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 excludes in-kind transactions. |
See notes to financial statements.
52 |
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 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
iShares Semiconductor ETF |
||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||
Year Ended 03/31/22 |
Year Ended 03/31/21 |
Year Ended 03/31/20 |
Year Ended 03/31/19 |
Year Ended 03/31/18 |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year |
$ | 424.09 | $ | 204.97 | $ | 189.61 | $ | 180.13 | $ | 136.85 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net investment income(a) |
3.56 | 3.35 | 3.13 | 2.66 | 1.51 | |||||||||||||||||||||||||||||||||
Net realized and unrealized gain(b) |
48.37 | 218.90 | 15.50 | 9.12 | 43.32 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net increase from investment operations |
51.93 | 222.25 | 18.63 | 11.78 | 44.83 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Distributions(c) |
||||||||||||||||||||||||||||||||||||||
From net investment income |
(3.57 | ) | (3.13 | ) | (3.27 | ) | (2.30 | ) | (1.55 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total distributions |
(3.57 | ) | (3.13 | ) | (3.27 | ) | (2.30 | ) | (1.55 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net asset value, end of year |
$ | 472.45 | $ | 424.09 | $ | 204.97 | $ | 189.61 | $ | 180.13 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total Return(d) |
||||||||||||||||||||||||||||||||||||||
Based on net asset value |
12.23 | % | 108.93 | % | 9.80 | % | 6.61 | % | 32.91 | % | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Ratios to Average Net Assets(e) |
||||||||||||||||||||||||||||||||||||||
Total expenses |
0.40 | % | 0.43 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net investment income |
0.76 | % | 1.02 | % | 1.42 | % | 1.50 | % | 0.93 | % | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||||||||||||
Net assets, end of year (000) |
$ | 8,952,849 | $ | 6,318,968 | $ | 2,141,965 | $ | 1,061,836 | $ | 1,630,190 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Portfolio turnover rate(f) |
32 | % | 23 | % | 14 | % | 26 | % | 20 | % | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
53 |
1. |
ORGANIZATION |
iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.
These financial statements relate only to the following funds (each, a “Fund” and collectively, the “Funds”):
iShares ETF |
Diversification Classification |
|||
Biotechnology(a) |
Non-diversified | |||
Expanded Tech Sector |
Non-diversified | |||
Expanded Tech-Software Sector |
Non-diversified | |||
North American Natural Resources |
Diversified | |||
North American Tech-Multimedia Networking |
Non-diversified | |||
Semiconductor(b) |
Non-diversified |
(a) |
Formerly the iShares Nasdaq Biotechnology ETF. |
(b) |
Formerly the iShares PHLX Semiconductor ETF. |
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.
Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: Certain Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of March 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 Statements of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and record cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, 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 or obligations.
In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.
54 |
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 |
Notes to Financial Statements (continued)
Distributions: Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.
3. |
INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
• |
Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price. |
• |
Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
• |
Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded. |
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.
Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
• |
Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access; |
• |
Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and |
• |
Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4. |
SECURITIES AND OTHER INVESTMENTS |
Short Positions: From time to time, in order to track the performance of its benchmark index, a fund may sell non-index securities that will be received through corporate actions occurring on the opening of market trading on the following business day. A fund may also experience temporary short positions due to the timing of portfolio securities trades and in-kind redemption transactions. Such short positions are valued consistent with how securities are valued as described under Investment Valuation and Fair Value Measurements. The obligation to deliver the securities is recorded as a liability in the Statements of Assets and Liabilities and is equal to the current fair value
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 |
55 |
Notes to Financial Statements (continued)
of the securities to be delivered. Any market fluctuations between the value of the obligation to sell these securities and the current fair value are reflected as unrealized appreciation (depreciation) in the Statements of Operations. Upon receipt of the securities related to the corporate actions or purchase of the securities related to the short position, a realized gain (loss) is recorded. Dividends or interest on securities sold short, if any, are reflected as an expense in the Statements of Operations. Details of the short positions, if any, are included in the schedules of Investments.
Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
56 |
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 |
Notes to Financial Statements (continued)
As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:
|
||||||||||||||||
iShares ETF and Counterparty |
|
Market Value of Securities on Loan |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received |
|
Net Amount | ||||||
|
||||||||||||||||
Biotechnology |
||||||||||||||||
Barclays Bank PLC |
$ | 27,234,514 | $ | 27,234,514 | $ | — | $ | — | ||||||||
Barclays Capital, Inc. |
9,151,508 | 9,151,508 | — | — | ||||||||||||
BMO Capital Markets Corp. |
23,923 | 23,923 | — | — | ||||||||||||
BNP Paribas SA |
117,362,359 | 117,362,359 | — | — | ||||||||||||
BofA Securities, Inc. |
56,139,572 | 56,139,572 | — | — | ||||||||||||
Citadel Clearing LLC |
3,460,735 | 3,460,735 | — | — | ||||||||||||
Citigroup Global Markets, Inc. |
82,805,923 | 82,805,923 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC |
2,358,995 | 2,358,995 | — | — | ||||||||||||
Deutsche Bank Securities, Inc. |
78,469 | 78,469 | — | — | ||||||||||||
Goldman Sachs & Co. LLC |
36,327,361 | 36,327,361 | — | — | ||||||||||||
HSBC Bank PLC |
4,477,988 | 4,477,988 | — | — | ||||||||||||
J.P. Morgan Securities LLC |
191,958,652 | 191,958,652 | — | — | ||||||||||||
Jefferies LLC |
23,940,400 | 23,940,400 | — | — | ||||||||||||
Mizuho Securities USA LLC |
125,451 | 125,451 | — | — | ||||||||||||
Morgan Stanley |
116,021,971 | 116,021,971 | — | — | ||||||||||||
National Financial Services LLC |
10,554,969 | 10,554,969 | — | — | ||||||||||||
Natixis SA |
781,688 | 781,688 | — | — | ||||||||||||
Nomura Securities International, Inc. |
35,374 | 35,374 | — | — | ||||||||||||
Pershing LLC |
814,783 | 814,783 | — | — | ||||||||||||
RBC Capital Markets LLC |
23,130 | 23,130 | — | — | ||||||||||||
Scotia Capital (USA), Inc. |
1,542,460 | 1,542,460 | — | — | ||||||||||||
SG Americas Securities LLC |
548,847 | 548,847 | — | — | ||||||||||||
State Street Bank & Trust Co. |
5,895,826 | 5,895,826 | — | — | ||||||||||||
Toronto-Dominion Bank |
16,133,155 | 16,133,155 | — | — | ||||||||||||
UBS AG |
29,423,615 | 29,423,615 | — | — | ||||||||||||
UBS Securities LLC |
8,880,126 | 8,880,126 | — | — | ||||||||||||
Virtu Americas LLC |
258,401 | 258,401 | — | — | ||||||||||||
Wells Fargo Bank N.A. |
2,476,417 | 2,476,417 | — | — | ||||||||||||
Wells Fargo Securities LLC |
5,304,727 | 5,304,727 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 754,141,339 | $ | 754,141,339 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Expanded Tech Sector |
||||||||||||||||
Barclays Bank PLC |
$ | 6,841,957 | $ | 6,841,957 | $ | — | $ | — | ||||||||
BNP Paribas SA |
11,654,983 | 11,654,983 | — | — | ||||||||||||
BofA Securities, Inc. |
329,670 | 329,670 | — | — | ||||||||||||
Citigroup Global Markets, Inc. |
2,205,224 | 2,205,224 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC |
15,483 | 15,483 | — | — | ||||||||||||
Goldman Sachs & Co. LLC |
603,283 | 603,283 | — | — | ||||||||||||
J.P. Morgan Securities LLC |
22,229,583 | 22,229,583 | — | — | ||||||||||||
Morgan Stanley |
3,475,237 | 3,475,237 | — | — | ||||||||||||
National Financial Services LLC |
403,504 | 403,504 | — | — | ||||||||||||
Scotia Capital (USA), Inc. |
463,995 | 463,995 | — | — | ||||||||||||
SG Americas Securities LLC |
164,223 | 164,223 | — | — | ||||||||||||
Toronto-Dominion Bank |
1,123,159 | 1,123,159 | — | — | ||||||||||||
UBS AG |
194,636 | 194,636 | — | — | ||||||||||||
UBS Securities LLC |
13,281,472 | 13,281,472 | — | — | ||||||||||||
Wells Fargo Securities LLC |
338,712 | 338,712 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 63,325,121 | $ | 63,325,121 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
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 |
57 |
Notes to Financial Statements (continued)
|
||||||||||||||||
iShares ETF and Counterparty |
|
Market Value of Securities on Loan |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received |
|
Net Amount | ||||||
|
||||||||||||||||
Expanded Tech-Software Sector |
||||||||||||||||
Barclays Bank PLC |
$ | 10,150,335 | $ | 10,150,335 | $ | — | $ | — | ||||||||
Barclays Capital, Inc. |
4,080,320 | 4,080,320 | — | — | ||||||||||||
BNP Paribas SA |
73,222,596 | 73,222,596 | — | — | ||||||||||||
BofA Securities, Inc. |
16,678,996 | 16,678,996 | — | — | ||||||||||||
Citadel Clearing LLC |
336,982 | 336,982 | — | — | ||||||||||||
Citigroup Global Markets, Inc. |
14,268,656 | 14,268,656 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC |
595,200 | 595,200 | — | — | ||||||||||||
Goldman Sachs & Co. LLC |
30,681,148 | 30,681,148 | — | — | ||||||||||||
ING Financial Markets LLC |
179,865 | 179,865 | — | — | ||||||||||||
J.P. Morgan Securities LLC |
48,021,071 | 48,021,071 | — | — | ||||||||||||
Jefferies LLC |
921,082 | 921,082 | — | — | ||||||||||||
Morgan Stanley |
8,058,688 | 8,058,688 | — | — | ||||||||||||
Nomura Securities International, Inc. |
32,385 | 32,385 | — | — | ||||||||||||
Scotia Capital (USA), Inc. |
513 | 513 | — | — | ||||||||||||
SG Americas Securities LLC |
197,690 | 197,690 | — | — | ||||||||||||
State Street Bank & Trust Co. |
1,656,199 | 1,656,199 | — | — | ||||||||||||
Toronto-Dominion Bank |
118,857 | 118,857 | — | — | ||||||||||||
UBS AG |
1,584,242 | 1,584,242 | — | — | ||||||||||||
UBS Securities LLC |
708,480 | 708,480 | — | — | ||||||||||||
Virtu Americas LLC |
222,375 | 222,375 | — | — | ||||||||||||
Wells Fargo Bank N.A. |
6,039,240 | 6,039,240 | — | — | ||||||||||||
Wells Fargo Securities LLC |
56,564 | 56,564 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 217,811,484 | $ | 217,811,484 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
|||||||||
North American Natural Resources |
||||||||||||||||
Barclays Capital, Inc. |
$ | 12,405 | $ | 12,405 | $ | — | $ | — | ||||||||
BNP Paribas SA |
1,015,079 | 1,015,079 | — | — | ||||||||||||
Citigroup Global Markets, Inc. |
2,054,460 | 2,026,263 | — | (28,197 | )(b) | |||||||||||
Credit Suisse Securities (USA) LLC |
723,502 | 710,757 | — | (12,745 | )(b) | |||||||||||
Morgan Stanley |
360,584 | 360,584 | — | — | ||||||||||||
SG Americas Securities LLC |
81,839 | 81,839 | — | — | ||||||||||||
Toronto-Dominion Bank |
1,595,005 | 1,595,005 | — | — | ||||||||||||
UBS AG |
68,432 | 68,432 | — | — | ||||||||||||
UBS Securities LLC |
1,476,987 | 1,476,987 | — | — | ||||||||||||
Wells Fargo Securities LLC |
203,328 | 203,328 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 7,591,621 | $ | 7,550,679 | $ | — | $ | (40,942 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
North American Tech-Multimedia Networking |
||||||||||||||||
Barclays Bank PLC |
$ | 220,218 | $ | 220,218 | $ | — | $ | — | ||||||||
Barclays Capital, Inc. |
1,602,988 | 1,602,988 | — | — | ||||||||||||
BNP Paribas SA |
222,125 | 222,125 | — | — | ||||||||||||
Credit Suisse Securities (USA) LLC |
139,449 | 139,449 | — | — | ||||||||||||
Goldman Sachs & Co. LLC |
212,760 | 209,548 | — | (3,212 | )(b) | |||||||||||
J.P. Morgan Securities LLC |
1,310,613 | 1,310,613 | — | — | ||||||||||||
National Financial Services LLC |
212,741 | 212,741 | — | — | ||||||||||||
Scotia Capital (USA), Inc. |
246,800 | 246,800 | — | — | ||||||||||||
UBS Securities LLC |
136,640 | 136,640 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 4,304,334 | $ | 4,301,122 | $ | — | $ | (3,212 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Semiconductor |
||||||||||||||||
BofA Securities, Inc. |
$ | 4,424,030 | $ | 4,424,030 | $ | — | $ | — | ||||||||
Goldman Sachs & Co. LLC |
7,720,080 | 7,720,080 | — | — | ||||||||||||
J.P. Morgan Securities LLC |
107,843,488 | 107,843,488 | — | — | ||||||||||||
Morgan Stanley |
54,771,709 | 54,771,709 | — | — | ||||||||||||
National Financial Services LLC |
1,835,400 | 1,835,400 | — | — | ||||||||||||
RBC Capital Markets LLC |
985,416 | 985,416 | — | — | ||||||||||||
Wells Fargo Securities LLC |
244,623 | 244,623 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 177,824,746 | $ | 177,824,746 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
(a) |
Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities. |
58 |
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 |
Notes to Financial Statements (continued)
(b) |
The market value of the loaned securities is determined as of March 31, 2022. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5. |
DERIVATIVE FINANCIAL INSTRUMENTS |
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
6. |
INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).
For its investment advisory services to the iShares Biotechnology ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |
First $121 billion |
0.4800% | |
Over $121 billion, up to and including $181 billion |
0.4560 | |
Over $181 billion, up to and including $231 billion |
0.4332 | |
Over $231 billion, up to and including $281 billion |
0.4116 | |
Over $281 billion |
0.3910 |
For its investment advisory services to each of the iShares Expanded Tech Sector, iShares Expanded Tech-Software Sector, iShares North American Natural Resources, iShares North American Tech-Multimedia Networking and iShares Semiconductor ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |
First $10 billion |
0.4800% | |
Over $10 billion, up to and including $20 billion |
0.4300 | |
Over $20 billion, up to and including $30 billion |
0.3800 | |
Over $30 billion, up to and including $40 billion |
0.3420 | |
Over $40 billion |
0.3078 |
Prior to July 14, 2021, for its investment advisory services to each of the iShares Expanded Tech Sector, iShares Expanded Tech-Software Sector, iShares North American Natural Resources, iShares North American Tech-Multimedia Networking and iShares PHLX Semiconductor ETFs, BFA was entitled to an annual investment advisory fee,
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 |
59 |
Notes to Financial Statements (continued)
accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:
Aggregate Average Daily Net Assets | Investment Advisory Fee | |
First $10 billion |
0.480% | |
Over $10 billion, up to and including $20 billion |
0.430 | |
Over $20 billion, up to and including $30 billion |
0.380 | |
Over $30 billion |
0.342 |
Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.
Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.
Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 81% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
Prior to January 1, 2022, each Fund retained 77% of securities lending income (which excludes collateral investment fees) and the amount retained was not less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across the iShares ETF Complex in a calendar year exceeded a specified threshold, each Fund, pursuant to the securities lending agreement, retained for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the year ended March 31, 2022, the Funds paid BTC the following amounts for securities lending agent services:
iShares ETF |
Fees Paid to BTC |
|||
Biotechnology |
$ | 1,213,164 | ||
Expanded Tech Sector |
66,198 | |||
Expanded Tech-Software Sector |
287,873 | |||
North American Natural Resources |
9,251 | |||
North American Tech-Multimedia Networking |
5,253 | |||
Semiconductor |
191,761 |
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
60 |
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 |
Notes to Financial Statements (continued)
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the year ended March 31, 2022, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
iShares ETF | Purchases | Sales |
Net Realized Gain (Loss) |
|||||||||
Biotechnology |
$ | 319,705,381 | $ | 712,555,558 | $ | (122,522,215 | ) | |||||
Expanded Tech Sector |
69,816,953 | 58,738,134 | (541,727 | ) | ||||||||
Expanded Tech-Software Sector |
149,312,964 | 268,494,239 | (32,410,816 | ) | ||||||||
North American Natural Resources |
20,886,837 | 15,919,429 | (7,234,256 | ) | ||||||||
North American Tech-Multimedia Networking |
24,487,108 | 19,257,144 | 1,952,191 | |||||||||
Semiconductor |
317,408,738 | 614,759,646 | (52,636,105 | ) |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the Statements of Operations.
A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.
7. |
PURCHASES AND SALES |
For the year ended March 31, 2022, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:
iShares ETF | Purchases | Sales | ||||||
Biotechnology |
$ | 4,560,989,947 | $ | 4,551,730,423 | ||||
Expanded Tech Sector |
276,897,695 | 276,536,062 | ||||||
Expanded Tech-Software Sector |
828,277,558 | 826,003,354 | ||||||
North American Natural Resources |
79,565,278 | 77,094,103 | ||||||
North American Tech-Multimedia Networking |
44,136,004 | 44,099,434 | ||||||
Semiconductor |
2,477,316,054 | 2,494,150,020 |
For the year ended March 31, 2022, in-kind transactions were as follows:
iShares ETF | In-kind Purchases |
In-kind Sales |
||||||
Biotechnology |
$ | 10,651,520,820 | $ | 10,574,068,598 | ||||
Expanded Tech Sector |
1,484,663,450 | 539,052,545 | ||||||
Expanded Tech-Software Sector |
15,738,069,434 | 15,246,341,191 | ||||||
North American Natural Resources |
400,219,429 | 73,564,663 | ||||||
North American Tech-Multimedia Networking |
106,040,245 | 54,065,172 | ||||||
Semiconductor |
10,442,744,315 | 8,370,987,465 |
8. |
INCOME TAX INFORMATION |
Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Management has analyzed tax laws and regulations and their application to the Funds as of March 31, 2022, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
61 |
Notes to Financial Statements (continued)
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. As of March 31, 2022, permanent differences attributable to net operating loss, distributions paid in excess of taxable income and realized gains (losses) from in-kind redemptions were reclassified to the following accounts:
iShares ETF | Paid-in Capital | Accumulated Earnings (Loss) |
||||||
Biotechnology |
$ | 1,338,157,110 | $ | (1,338,157,110 | ) | |||
Expanded Tech Sector |
347,760,650 | (347,760,650 | ) | |||||
Expanded Tech-Software Sector |
1,313,274,464 | (1,313,274,464 | ) | |||||
North American Natural Resources |
9,264,337 | (9,264,337 | ) | |||||
North American Tech-Multimedia Networking |
12,631,744 | (12,631,744 | ) | |||||
Semiconductor |
1,736,308,515 | (1,736,308,515 | ) |
The tax character of distributions paid was as follows:
iShares ETF | Year Ended 03/31/22 |
Year Ended 03/31/21 | ||||
Biotechnology |
||||||
Ordinary income |
$20,365,764 |
$26,026,125 | ||||
Expanded Tech Sector | ||||||
Ordinary income |
$ 6,535,033 |
$ 8,184,628 | ||||
Expanded Tech-Software Sector | ||||||
Ordinary income |
$ — |
$ 1,076,738 | ||||
North American Natural Resources | ||||||
Ordinary income |
$15,154,197 |
$12,822,042 | ||||
North American Tech-Multimedia Networking | ||||||
Ordinary income |
$ 284,071 |
$ 307,049 | ||||
Semiconductor | ||||||
Ordinary income |
$61,257,081 |
$40,572,378 |
As of March 31, 2022, the tax components of accumulated net earnings (losses) were as follows:
iShares ETF |
|
Non-expiring Capital Loss |
|
|
Net
Unrealized Gains (Losses) |
(b) |
|
Qualified Late-Year Losses |
(c) |
Total | ||||||
Biotechnology |
$ | (2,130,904,723 | ) | $ | (3,020,767,524 | ) | $ | — | $ | (5,151,672,247 | ) | |||||
Expanded Tech Sector |
(16,755,133 | ) | 1,315,526,997 | — | 1,298,771,864 | |||||||||||
Expanded Tech-Software Sector |
(164,666,778 | ) | (1,525,937,290 | ) | (3,983,748 | ) | (1,694,587,816 | ) | ||||||||
North American Natural Resources |
(490,461,147 | ) | 95,092,221 | — | (395,368,926 | ) | ||||||||||
North American Tech-Multimedia Networking |
(69,077,425 | ) | (586,964 | ) | — | (69,664,389 | ) | |||||||||
Semiconductor |
(252,258,852 | ) | (170,177,301 | ) | — | (422,436,153 | ) |
(a) |
Amounts available to offset future realized capital gains. |
(b) |
The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain futures contracts, characterization of corporate actions and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies. |
(c) |
The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year. |
For the year ended March 31, 2022, the Funds listed below utilized the following amounts of their respective capital loss carryforwards:
iShares ETF | Utilized | |||
Expanded Tech Sector |
$ | 5,370,370 | ||
North American Tech-Multimedia Networking |
1,297,680 |
62 |
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 |
Notes to Financial Statements (continued)
As of March 31, 2022, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
iShares ETF | Tax Cost |
Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation (Depreciation) |
||||||||||||
Biotechnology |
$ | 12,431,416,230 | $ | 134,152,345 | $ | (3,154,919,869 | ) | $ | (3,020,767,524 | ) | ||||||
Expanded Tech Sector |
3,232,548,548 | 1,396,415,856 | (80,888,859 | ) | 1,315,526,997 | |||||||||||
Expanded Tech-Software Sector |
7,156,103,063 | 28,365,795 | (1,554,303,085 | ) | (1,525,937,290 | ) | ||||||||||
North American Natural Resources |
854,699,362 | 156,095,463 | (61,004,873 | ) | 95,090,590 | |||||||||||
North American Tech-Multimedia Networking |
168,023,301 | 10,699,495 | (11,286,459 | ) | (586,964 | ) | ||||||||||
Semiconductor |
9,308,150,860 | 356,391,283 | (526,568,584 | ) | (170,177,301 | ) |
9. |
LINE OF CREDIT |
The iShares Semiconductor ETF, along with certain other iShares funds (“Participating Funds”), is a party to a $300 million credit agreement (“Credit Agreement”) with State Street Bank and Trust Company, which expires on October 15, 2021. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Credit Agreement sets specific sub limits on aggregate borrowings based on two tiers of Participating Funds: $300 million with respect to the funds within Tier 1, including the Fund, and $200 million with respect to Tier 2. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Credit Agreement. The Credit Agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR rate (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Credit Agreement. The Credit Agreement was terminated on August 12, 2021.
Effective August 13, 2021, the iShares Semiconductor ETF, along with certain other iShares funds (“Participating Funds”), is a party to a $800 million credit agreement (“Syndicated Credit Agreement”) with a group of lenders, which expires on August 12, 2022. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Syndicated Credit Agreement. The Syndicated Credit Agreement has the following terms: a commitment fee of 0.15% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR rate (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Syndicated Credit Agreement.
During the year ended March 31, 2022, the Fund did not borrow under the Credit Agreement or Syndicated Credit Agreement.
10. |
PRINCIPAL RISKS |
In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.
BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.
Market Risk: An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. Although vaccines have been developed and approved for use by various governments, the duration of this pandemic and its effects cannot be determined with certainty.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling
N O T E S T O F I N A N C I A L S T A T E M E N T S |
63 |
Notes to Financial Statements (continued)
illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.
The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a Fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
LIBOR Transition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates ceased to be published or no longer are representative of the underlying market they seek to measure after December 31, 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.
11. |
CAPITAL SHARE TRANSACTIONS |
Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.
Transactions in capital shares were as follows:
|
||||||||||||||||
Year Ended 03/31/22 |
Year Ended 03/31/21 |
|||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
|
||||||||||||||||
Biotechnology |
||||||||||||||||
Shares sold |
69,600,000 | $ | 10,694,874,817 | 92,850,000 | $ | 12,973,745,658 | ||||||||||
Shares redeemed |
(69,000,000 | ) | (10,600,003,781 | ) | (86,100,000 | ) | (12,183,388,091 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
600,000 | $ | 94,871,036 | 6,750,000 | $ | 790,357,567 | ||||||||||
|
|
|
|
|
|
|
|
64 |
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 |
Notes to Financial Statements (continued)
|
||||||||||||||||
Year Ended 03/31/22 |
Year Ended 03/31/21 |
|||||||||||||||
iShares ETF | Shares | Amount | Shares | Amount | ||||||||||||
|
||||||||||||||||
Expanded Tech Sector |
||||||||||||||||
Shares sold |
4,000,000 | $ | 1,487,473,141 | 1,700,000 | $ | 492,883,102 | ||||||||||
Shares redeemed |
(1,350,000 | ) | (542,193,189 | ) | (850,000 | ) | (267,265,300 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
2,650,000 | $ | 945,279,952 | 850,000 | $ | 225,617,802 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Expanded Tech-Software Sector |
||||||||||||||||
Shares sold |
41,050,000 | $ | 15,779,096,632 | 35,650,000 | $ | 10,854,261,767 | ||||||||||
Shares redeemed |
(40,150,000 | ) | (15,286,337,427 | ) | (35,300,000 | ) | (11,001,899,355 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
900,000 | $ | 492,759,205 | 350,000 | $ | (147,637,588 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
North American Natural Resources |
||||||||||||||||
Shares sold |
11,400,000 | $ | 402,445,296 | 4,800,000 | $ | 110,829,085 | ||||||||||
Shares redeemed |
(2,500,000 | ) | (73,977,459 | ) | (8,100,000 | ) | (177,402,776 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
8,900,000 | $ | 328,467,837 | (3,300,000 | ) | $ | (66,573,691 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
North American Tech-Multimedia Networking |
||||||||||||||||
Shares sold |
1,450,000 | $ | 106,155,183 | 900,000 | $ | 55,817,552 | ||||||||||
Shares redeemed |
(750,000 | ) | (54,111,077 | ) | (400,000 | ) | (22,075,788 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
700,000 | $ | 52,044,106 | 500,000 | $ | 33,741,764 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Semiconductor |
||||||||||||||||
Shares sold |
22,350,000 | $ | 10,465,399,629 | 21,350,000 | $ | 7,051,302,523 | ||||||||||
Shares redeemed |
(18,300,000 | ) | (8,404,591,175 | ) | (16,900,000 | ) | (5,475,117,379 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
4,050,000 | $ | 2,060,808,454 | 4,450,000 | $ | 1,576,185,144 | ||||||||||
|
|
|
|
|
|
|
|
The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.
12. |
SUBSEQUENT EVENTS |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
N O T E S T O F I N A N C I A L S T A T E M E N T S |
65 |
Report of Independent Registered Public Accounting Firm |
To the Board of Trustees of iShares Trust and
Shareholders of iShares Biotechnology ETF, iShares Expanded Tech Sector ETF, iShares Expanded Tech-Software Sector ETF, iShares North American Natural Resources ETF, iShares North American Tech-Multimedia Networking ETF and iShares Semiconductor ETF
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares Biotechnology ETF, iShares Expanded Tech Sector ETF, iShares Expanded Tech-Software Sector ETF, iShares North American Natural Resources ETF, iShares North American Tech-Multimedia Networking ETF and iShares Semiconductor ETF (six of the funds constituting iShares Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2022, the related statements of operations for the year ended March 31, 2022, the statements of changes in net assets for each of the two years in the period ended March 31, 2022, including the related notes, and the financial highlights for each of the five years in the period ended March 31, 2022 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2022, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2022 and each of the financial highlights for each of the five years in the period ended March 31, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2022 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
May 24, 2022
We have served as the auditor of one or more BlackRock investment companies since 2000.
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Important Tax Information (unaudited)
The following amounts, or maximum amounts allowable by law, are hereby designated as qualified dividend income for individuals for the fiscal year ended March 31, 2022:
iShares ETF |
Qualified Dividend Income |
|||
Biotechnology |
$ | 59,105,329 | ||
Expanded Tech Sector |
20,818,306 | |||
Expanded Tech-Software Sector |
17,161,068 | |||
North American Natural Resources |
17,216,304 | |||
North American Tech-Multimedia Networking |
732,351 | |||
Semiconductor |
91,385,484 |
The following percentage, or maximum percentage allowable by law, of ordinary income distributions paid during the fiscal year ended March 31, 2022 qualified for the dividends-received deduction for corporate shareholders:
iShares ETF |
Dividends-Received Deduction |
|||
Biotechnology |
100.00 | % | ||
Expanded Tech Sector |
100.00 | % | ||
North American Natural Resources |
82.82 | % | ||
North American Tech-Multimedia Networking |
100.00 | % | ||
Semiconductor |
100.00 | % |
I M P O R T A N T T A X I N F O R M A T I O N |
67 |
Statement Regarding Liquidity Risk Management Program (unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), iShares Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for iShares Biotechnology ETF, iShares Expanded Tech Sector ETF, iShares Expanded Tech-Software Sector ETF, iShares North American Natural Resources ETF, iShares North American Tech-Multimedia Networking ETF and iShares Semiconductor ETF (the “Funds” or “ETFs”), each a series of the Trust, which is reasonably designed to assess and manage each Fund’s liquidity risk.
The Board of Trustees (the “Board”) of the Trust, on behalf of the Funds, met on December 9, 2021 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program. BlackRock also previously delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the management of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2020 through September 30, 2021 (the “Program Reporting Period”).
The Report described the Program’s liquidity classification methodology for categorizing each Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also referenced the methodology used by BlackRock to establish each Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually. The Report also discussed notable events affecting liquidity over the Program Reporting Period, including extended market holidays and the imposition of capital controls in certain non-U.S. countries.
The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing each Fund’s liquidity risk, as follows:
a) |
The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for an open-end fund structure, with a focus on funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Derivative exposure was also considered in the calculation of a fund’s liquidity bucketing. Finally, a factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes. |
b) |
Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size (“RATS”). The Committee may also take into consideration a fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a fund’s distribution channels, and the degree of certainty associated with a fund’s short-term and long-term cash flow projections. |
c) |
Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimis amounts of cash. While the ETFs generally do not engage in borrowing, certain of the ETFs have the flexibility to draw on a line of credit to meet redemption requests or facilitate settlements. |
d) |
The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs and reviewed any persistent deviations from long-term averages. |
e) |
The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of custom baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review. |
As part of BlackRock’s continuous review of the effectiveness of the Program, the Committee made the following material changes to the Program: (1) updates to certain model components in the Program’s methodology; and (2) certain iShares Funds entered into a $800 million credit agreement with a group of lenders that replaced a previous liquidity facility. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
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Supplemental Information (unaudited)
Regulation Regarding Derivatives
On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Funds will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.
Section 19(a) Notices
The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.
March 31, 2022
iShares ETF | Total Cumulative Distributions for the Fiscal Year |
% Breakdown of the Total Cumulative Distributions for the Fiscal Year |
||||||||||||||||||||||||||||||
Net Investment Income |
Net Realized Capital Gains |
Return of Capital |
Total Per Share |
Net Investment Income |
Net Realized Capital Gains |
Return of Capital |
Total Per Share |
|||||||||||||||||||||||||
Biotechnology |
$ | 0.306489 | $ | — | $ | — | $ | 0.306489 | 100 | % | — | % | — | % | 100 | % | ||||||||||||||||
Semiconductor |
3.571783 | — | — | 3.571783 | 100 | — | — | 100 |
Premium/Discount Information
Information on the Fund’s net asset value, market price, premiums and discounts, and bid-ask spreads can be found at iShares.com.
Regulation under the Alternative Investment Fund Managers Directive
The Alternative Investment Fund Managers Directive and the Alternative Investment Fund Managers Regulations 2013 (as amended) and the “Guidelines on sound remuneration policies under the AIFMD” issued by the European Securities and Markets Authority (together the “Regulations”) impose detailed and prescriptive obligations on fund managers established in the European Union (the “EU”) and the UK. These do not currently apply to managers established outside of the EU or UK, such as BFA (the “Company”). Rather, non-EU and non-UK managers are only required to comply with certain disclosure, reporting and transparency obligations of the Regulations if such managers market a fund to EU investors.
The Company has registered the iShares Biotechnology ETF (the “Fund”) to be marketed to United Kingdom and EU investors in the Netherlands, Finland and Sweden.
Report on Remuneration
The Company is required under the Regulations to make quantitative disclosures of remuneration. These disclosures are made in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in that same year.
Disclosures are provided in relation to (a) the staff of the Company; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Fund.
All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the Fund is included in the aggregate figures disclosed.
BlackRock has a clear and well defined pay-for-performance philosophy, and compensation programmes which support that philosophy.
BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy.
Remuneration decisions for employees are made once annually in January following the end of the performance year, based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total compensation is also based on strategic and operating results and other considerations such as management and leadership capabilities. No set formulas are established and no fixed benchmarks are used in determining annual incentive awards.
S U P P L E M E N T A L I N F O R M A T I O N |
69 |
Supplemental Information (unaudited) (continued)
Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.
Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organisational structures which are independent of the business units. Functional bonus pools for those control functions are determined with reference to the performance of each individual function and the remuneration of the senior members of control functions is directly overseen by BlackRock’s independent remuneration committee.
Members of staff and senior management of the Company typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of the Company and across the broader BlackRock group. Therefore, the figures disclosed are a sum of each individual’s portion of remuneration attributable to the Fund according to an objective apportionment methodology which acknowledges the multiple-service nature of the Company. Accordingly the figures are not representative of any individual’s actual remuneration or their remuneration structure.
The amount of total & aggregate remuneration awarded by the Company to its staff which has been attributed to the Fund in respect of the Company’s financial year ending December 31, 2021 were as follows:
iShares ETF |
Total Remuneration |
Fixed Remuneration |
Variable Remuneration |
No. of Beneficiaries |
Senior Management Remuneration |
Risk Taker Remuneration |
||||||||||||||||||
Biotechnology |
$888,011 | $415,203 | $472,808 | 661 | $108,694 | $11,233 |
70 |
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 |
Trustee and Officer Information
The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).
The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of open-end equity, multi-asset, index and money market funds and ETFs (the “BlackRock Multi-Asset Complex”), one complex of closed-end funds and open-end non-index fixed-income funds (including ETFs) (the “BlackRock Fixed-Income Complex”) and one complex of ETFs (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees all of the funds within the Exchange-Traded Fund Complex, which consists of 378 funds as of March 31, 2022. With the exception of Robert S. Kapito, Salim Ramji and Charles Park, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Ramji and Mr. Park is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd Street, New York, NY 10055. The Board has designated John E. Kerrigan as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).
Interested Trustees | ||||||
Name (Age) | Position(s) |
Principal Occupation(s) During the Past 5 Years |
Other Directorships Held by Trustee | |||
Robert S. Kapito(a) (65) | Trustee (since 2009). |
President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002).
|
Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2009). | |||
Salim Ramji(b) (51) | Trustee (since 2019). |
Senior Managing Director, BlackRock, Inc. (since 2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2019); Head of BlackRock’s U.S. Wealth Advisory Business (2015-2019); Global Head of Corporate Strategy, BlackRock, Inc. (2014-2015); Senior Partner, McKinsey & Company (2010-2014).
|
Director of iShares, Inc. (since 2019); Trustee of iShares U.S. ETF Trust (since 2019); Trustee of iShares Trust (since 2019). |
(a) Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. | ||||||
(b) Salim Ramji is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates. | ||||||
Independent Trustees | ||||||
Name (Age) | Position(s) |
Principal Occupation(s) During the Past 5 Years |
Other Directorships Held by Trustee | |||
John E. Kerrigan (66) | Trustee (since 2005); Independent Board Chair (since 2022). | Chief Investment Officer, Santa Clara University (since 2002). |
Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2005); Independent Board Chair of iShares, Inc. and iShares Trust and iShares U.S. ETF Trust (since 2022).
| |||
Jane D. Carlin (66) | Trustee (since 2015); Risk Committee Chair (since 2016). |
Consultant (since 2012); Member of the Audit Committee (2012-2018), Chair of the Nominating and Governance Committee (2017-2018) and Director of PHH Corporation (mortgage solutions) (2012-2018); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).
|
Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Trustee of iShares Trust (since 2015); Member of the Audit Committee (since 2016), Chair of the Audit Committee (since 2020) and Director of The Hanover Insurance Group, Inc. (since 2016).
| |||
Richard L. Fagnani (67) | Trustee (since 2017); Audit Committee Chair (since 2019). | Partner, KPMG LLP (2002-2016). |
Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017); Trustee of iShares Trust (since 2017).
|
T R U S T E E A N D O F F I C E R I N F O R M A T I O N |
71 |
Trustee and Officer Information (continued)
Independent Trustees (continued) | ||||||
Name (Age) | Position(s) |
Principal Occupation(s) During the Past 5 Years |
Other Directorships Held by Trustee | |||
Cecilia H. Herbert (73) | Trustee (since 2005); Nominating and Governance and Equity Plus Committee Chairs (since 2022). |
Chair of the Finance Committee (since 2019) and Trustee and Member of the Finance, Audit and Quality Committees of Stanford Health Care (since 2016); Trustee of WNET, New York’s public media company (since 2011) and Member of the Audit Committee (since 2018) and Investment Committee (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; Trustee of Forward Funds (14 portfolios) (2009-2018); Trustee of Salient MF Trust (4 portfolios) (2015-2018); Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School; Director of the Senior Center of Jackson Hole (since 2020).
|
Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2005); Trustee of Thrivent Church Loan and Income Fund (since 2019). | |||
Drew E. Lawton (63) |
Trustee (since 2017); 15(c) Committee Chair (since 2017).
|
Senior Managing Director of New York Life Insurance Company (2010-2015). |
Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017); Trustee of iShares Trust (since 2017).
| |||
John E. Martinez (60) |
Trustee (since 2003); Securities Lending Committee Chair (since 2019).
|
Director of Real Estate Equity Exchange, Inc. (since 2005); Director of Cloudera Foundation (2017-2020); and Director of Reading Partners (2012-2016). | Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2003). | |||
Madhav V. Rajan (57) | Trustee (since 2011); Fixed Income Plus Committee Chair (since 2019). |
Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Advisory Board Member (since 2016) and Director (since 2020) of C.M. Capital Corporation; Chair of the Board for the Center for Research in Security Prices, LLC (since 2020); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).
|
Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Trustee of iShares Trust (since 2011). | |||
Officers | ||||||
Name (Age) | Position(s) |
Principal Occupation(s) During the Past 5 Years | ||||
Armando Senra (50) | President (since 2019). |
Managing Director, BlackRock, Inc. (since 2007); Head of U.S., Canada and Latam iShares, BlackRock, Inc. (since 2019); Head of Latin America Region, BlackRock, Inc. (2006-2019); Managing Director, Bank of America Merrill Lynch (1994-2006).
| ||||
Trent Walker (47) | Treasurer and Chief Financial Officer (since 2020). |
Managing Director, BlackRock, Inc. (since September 2019); Chief Financial Officer of iShares Delaware Trust Sponsor LLC, BlackRock Funds, BlackRock Funds II, BlackRock Funds IV, BlackRock Funds V and BlackRock Funds VI (since 2021); Executive Vice President of PIMCO (2016-2019); Senior Vice President of PIMCO (2008-2015); Treasurer (2013-2019) and Assistant Treasurer (2007-2017) of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds.
| ||||
Charles Park (54) |
Chief Compliance Officer (iShares, Inc. and iShares Trust, since 2006; iShares U.S. ETF Trust, since 2011).
|
Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex (since 2014); Chief Compliance Officer of BFA (since 2006). | ||||
Deepa Damre Smith (46)
|
Secretary (since 2019). | Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2009-2013). | ||||
Rachel Aguirre (39) | Executive Vice President (since 2022). |
Managing Director, BlackRock, Inc. (since 2018); Director, BlackRock, Inc. (2009-2018); Head of U.S. iShares Product (since 2022); Head of EII U.S. Product Engineering (since 2021); Co-Head of EII’s Americas Portfolio Engineering (2020-2021); Head of Developed Markets Portfolio Engineering 2021); Head of Developed Markets Portfolio Engineering (2016-2019).
| ||||
Jennifer Hsui (45) |
Executive Vice President (since 2022).
|
Managing Director, BlackRock, Inc. (since 2009); Co-Head of Index Equity (since 2022). |
72 |
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 |
Trustee and Officer Information (continued)
Officers (continued) | ||||||
Name (Age) | Position(s) |
Principal Occupation(s) During the Past 5 Years | ||||
James Mauro (51) |
Executive Vice President (since 2021).
|
Managing Director, BlackRock, Inc. (since 2010); Head of Fixed Income Index Investments in the Americas and Head of San Francisco Core Portfolio Management (since 2020). |
Effective March 18, 2022, Rachel Aguirre, Jennifer Hsui, and James Mauro have replaced Scott Radell, Alan Mason, and Marybeth Leithead as Executive Vice Presidents.
T R U S T E E A N D O F F I C E R I N F O R M A T I O N |
73 |
Electronic Delivery
Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.
To enroll in electronic delivery:
• |
Go to icsdelivery.com. |
• |
If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor. |
Householding
Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.
Availability of Proxy Voting Policies and Proxy Voting Records
A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.
A description of the Trust’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.
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Glossary of Terms Used in this Report
Portfolio Abbreviations - Equity | ||
ADR | American Depositary Receipt | |
NVS | Non-Voting Shares |
G L O S S A R Y O F T E R M S U S E D I N T H I S R E P O R T |
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Want to know more?
iShares.com | 1-800-474-2737
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by ICE Data Indices, LLC or S&P Dow Jones Indices LLC, nor do these companies make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the companies listed above.
©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
iS-AR-313-0322
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