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JANUARY 31, 2022 |
2022 Semi-Annual Report (Unaudited)
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BlackRock ETF Trust
· BlackRock Future Climate and Sustainable Economy ETF | BECO | NYSE Arca
· BlackRock Future Health ETF | BMED | NYSE Arca
· BlackRock Future Innovators ETF | BFTR | NYSE Arca
· BlackRock Future Tech ETF | BTEK | NYSE Arca
· BlackRock Future U.S. Themes ETF | BTHM | NYSE Arca
· BlackRock U.S. Carbon Transition Readiness ETF | LCTU | NYSE Arca
· BlackRock U.S. Equity Factor Rotation ETF | DYNF | NYSE Arca
· BlackRock World ex U.S. Carbon Transition Readiness ETF | LCTD | NYSE Arca
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Not FDIC Insured • May Lose Value • No Bank Guarantee |
Dear Shareholder,
The 12-month reporting period as of January 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. Continued growth meant that the U.S. economy regained and then surpassed its pre-pandemic output. However, rapid changes in consumer spending led to supply constraints and elevated inflation.
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 slightly, while large-capitalization U.S. stocks posted a strong advance. International equities from developed markets also gained, 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 significantly during the reporting period as the economy expanded rapidly and inflation reached its highest annualized reading in decades. In the corporate bond market, the improving economy assuaged credit concerns and led to positive returns for high-yield corporate bonds, outpacing the modest negative return of investment-grade corporate bonds.
The U.S. Federal Reserve (the “Fed”) maintained accommodative monetary policy during the reporting period by keeping near-zero interest rates. However, the Fed’s tone shifted late in the period, as it reduced its bond-buying program and raised the prospect of higher rates in 2022. Continued high inflation and the Fed’s new tone led many analysts to anticipate that the Fed will 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. Sanctions on Russia and general wartime disruption are likely to drive already-high commodity prices even further upwards, and we have already seen spikes in energy and metal markets. While this will exacerbate inflationary pressure, it could also constrain economic growth, making the Fed’s way forward less clear. Its challenge will be combating inflation without stifling a recovery that is now facing additional supply shocks.
In this environment, we favor an overweight to equities, as we believe low interest rates and continued economic growth will support further gains, albeit likely more modest than what we saw in 2021. 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. U.S. and other developed-market equities have room for further growth, while we believe Chinese equities stand to gain from a more accommodative monetary and fiscal environment. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.
In this environment, 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 blackrock.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock Advisors, LLC
Rob Kapito
President, BlackRock Advisors, LLC
Total Returns as of January 31, 2022 | ||||
6-Month | 12-Month | |||
U.S. large cap equities (S&P 500® Index) |
3.44% | 23.29% | ||
U.S. small cap equities (Russell 2000® Index) |
(8.41) | (1.21) | ||
International equities (MSCI Europe, Australasia, Far East Index) |
(3.43) | 7.03 | ||
Emerging market equities (MSCI Emerging Markets Index) |
(4.59) | (7.23) | ||
3-month Treasury bills (ICE BofA 3-Month U.S. Treasury Bill Index) |
0.01 | 0.04 | ||
U.S. Treasury securities (ICE BofA 10-Year U.S. Treasury Index) |
(3.87) | (4.43) | ||
U.S. investment grade bonds (Bloomberg U.S. Aggregate Bond Index) |
(3.17) | (2.97) | ||
Tax-exempt municipal bonds (S&P Municipal Bond Index) |
(2.56) | (1.22) | ||
U.S. high yield bonds (Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index) |
(1.55) | 2.05 | ||
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
2 |
T H I S P A G E I S N O T P A R T O F Y O U R F U N D R E P O R T |
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Financial Statements: |
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3 |
Fund Summary as of January 31, 2022 | BlackRock Future Climate and Sustainable Economy ETF |
Investment Objective
The BlackRock Future Climate and Sustainable Economy ETF (the “Fund”) seeks to maximize total return by investing in companies that BlackRock Fund Advisors (“BFA”) believes are furthering the transition to a lower carbon economy.
Performance
Cumulative Total Returns | ||
Since Inception | ||
| ||
Fund NAV |
(8.25)% | |
Fund Market |
(8.13) | |
MSCI ACWI Multiple Industries Select Index |
(0.89) | |
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The inception date of the Fund was 8/3/21. The first day of secondary market trading was 8/5/21.
The MSCI ACWI Multiple Industries Select Index is an index that includes large and mid-cap securities across certain Developed Markets and Emerging Markets countries. The index represents the performance of component indexes which includes securities from selected Global Industry Classification Standard (GICS®) Sectors and Industries i.e. Chemicals, Industrials, Consumer Staples, Containers & Packaging, Electronic Equipment, Instruments & Components, Semiconductors & Semiconductor Equipment and Utilities.
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 18 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
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Beginning Account Value (08/03/21) |
(a) |
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Ending Account Value (01/31/22) |
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Expenses Paid During the Period |
(b) |
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Beginning Account Value (08/01/21) |
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Ending Account Value (01/31/22) |
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Expenses Paid During the Period |
(b) |
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Annualized Expense Ratio |
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$ 1,000.00 | $ 917.50 | $ 3.33 | $ 1,000.00 | $ 1,021.70 | $ 3.57 | 0.70 | % |
(a) |
The beginning of the period (commencement of operations) is August 03, 2021. |
(b) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days for actual and 184 days for hypothetical expenses) and divided by the number of days in the year (365 days). 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” on page 18 for more information. |
Portfolio Information
ALLOCATION BY SECTOR |
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Sector | |
Percent of Total Investments |
(a) | |
Chemicals |
19.0 | % | ||
Machinery |
12.4 | |||
Food Products |
10.2 | |||
Containers & Packaging |
7.7 | |||
Electronic Equipment, Instruments & Components |
6.8 | |||
Electrical Equipment |
6.8 | |||
Building Products |
6.6 | |||
Electric Utilities |
5.5 | |||
Semiconductors & Semiconductor Equipment |
5.5 | |||
Paper & Forest Products |
3.9 | |||
Independent Power and Renewable Electricity Producers |
3.2 | |||
Food & Staples Retailing |
2.9 | |||
Software |
2.8 | |||
Professional Services |
2.1 | |||
Capital Markets |
2.0 | |||
Commercial Services & Supplies |
1.1 | |||
Other (each representing less than 1%) |
1.5 |
TEN LARGEST HOLDINGS | ||||
Security | |
Percent of Total Investments |
(a) | |
Deere & Co. |
3.4 | % | ||
Crown Holdings Inc. |
3.2 | |||
FMC Corp. |
3.1 | |||
Enel SpA |
3.0 | |||
Salmar ASA |
2.9 | |||
Koninklijke DSM NV |
2.8 | |||
Ecolab Inc. |
2.7 | |||
Kerry Group PLC, Class A |
2.7 | |||
Nutrien Ltd. |
2.6 | |||
NextEra Energy Inc. |
2.6 |
(a) |
Excludes money market funds. |
4 |
2 0 2 2 B L A C K R O C K S E M I - 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 January 31, 2022 | BlackRock Future Health ETF |
Investment Objective
The BlackRock Future Health ETF (the “Fund”) seeks to maximize total return.
Performance
Average Annual Total Returns |
Cumulative Total Returns | |||||||||||
6 Months | 1 Year |
Since Inception |
1 Year | Since Inception | ||||||||
Fund NAV |
(16.55)% | (15.51)% | (0.21)% | (15.51)% | (0.28)% | |||||||
Fund Market |
(16.57) | (15.70) | (0.15) | (15.70) | (0.20) | |||||||
MSCI ACWI Index |
(0.32) | 13.23 | 21.58 | 13.23 | 29.83 |
The inception date of the Fund was 9/29/20. The first day of secondary market trading was 10/1/20.
MSCI ACWI Index captures large- and mid-cap representation across certain developed emerging markets.
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 18 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
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Beginning Account Value (08/01/21) |
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Ending Account Value (01/31/22) |
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Expenses Paid During the Period |
(a) |
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Beginning Account Value (08/01/21) |
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Ending Account Value (01/31/22) |
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Expenses Paid During the Period |
(a) |
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Annualized Expense Ratio |
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$ 1,000.00 | $ 834.50 | $ 3.93 | $ 1,000.00 | $ 1,020.90 | $ 4.33 | 0.85 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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” on page 18 for more information. |
Portfolio Management Commentary
Small- to mid-sized healthcare stocks declined compared to the broader equity market by a wide margin during the reporting period. The category was hurt by the general downturn for smaller, faster-growing companies that was caused, in part, by concerns around accelerating inflation and rising interest rates. Health care providers & services was the weakest performing area of the Fund, followed by biotechnology. Holdings in the medical devices & supplies industry, while posting negative returns in absolute terms, held up well relative to the larger healthcare sector. The pharmaceuticals industry was also a source of relative strength, but the impact was limited due to the category’s small weighting in the Fund.
A position in the healthcare provider Amedisys, Inc., which reported weaker-than-expected earnings and reduced its guidance, was the largest individual detractor for the reporting period. The company was adversely impacted by COVID-19, particularly in its senior living facilities, where occupancy rates and average length of stay remained below pre-pandemic levels. A position in the biotechnology company Natera, Inc. was the second-largest detractor. Shares of the DNA testing company came under pressure as part of the sell-off in growth stocks late in the period.
The clinical-stage biopharmaceutical company Acceleron Pharma, Inc. was the leading contributor to the Fund’s return. The company was acquired for over $11 billion by Merck, which was seeking to expand its pipeline of cardiovascular treatments. A position in Kadmon Corp. also helped performance. Sanofi announced plans to acquire the biotechnology company in an effort to strengthen its portfolio of therapies for transplant patients.
F U N D S U M M A R Y |
5 |
Fund Summary as of January 31, 2022 (continued) | BlackRock Future Health ETF |
Portfolio Information
ALLOCATION BY SECTOR |
| |||
Sector | |
Percent of Total Investments |
(a) | |
Health Care Equipment & Supplies |
36.2 | % | ||
Biotechnology |
27.5 | |||
Life Sciences Tools & Services |
18.7 | |||
Health Care Providers & Services |
10.5 | |||
Pharmaceuticals |
5.1 | |||
Diversified Financial Services |
1.7 | |||
Other (each representing less than 1%) |
0.3 |
TEN LARGEST HOLDINGS |
| |||
Security | |
Percent of Total Investments |
(a) | |
ICON PLC |
3.7 | % | ||
Alcon Inc. |
2.8 | |||
Seagen Inc. |
2.3 | |||
Vertex Pharmaceuticals Inc. |
2.3 | |||
ABIOMED Inc. |
2.2 | |||
Teleflex Inc. |
2.1 | |||
QIAGEN NV |
2.0 | |||
Masimo Corp. |
1.9 | |||
AmerisourceBergen Corp. |
1.9 | |||
Edwards Lifesciences Corp. |
1.8 |
(a) |
Excludes money market funds. |
6 |
2 0 2 2 B L A C K R O C K S E M I - 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 January 31, 2022 | BlackRock Future Innovators ETF |
Investment Objective
The BlackRock Future Innovators ETF (the “Fund”) seeks long-term capital appreciation.
Performance
Average Annual Total Returns |
Cumulative Total Returns | |||||||||
6 Months | 1 Year |
Since Inception |
1 Year | Since Inception | ||||||
Fund NAV |
(29.43)% | (27.98)% | 0.30% | (27.98)% | 0.40% | |||||
Fund Market |
(29.40) | (28.23) | 0.32 | (28.23) | 0.43 | |||||
Russell 2500™ Growth Index |
(14.24) | (11.29) | 11.09 | (11.29) | 15.09 |
The inception date of the Fund was 9/29/20. The first day of secondary market trading was 10/1/20.
The Russell 2500™ Growth Index measures the performance of the small to mid-cap growth segment of the US equity universe. It includes those Russell 2500™ companies with higher growth earning potential as defined by FTSE Russell’s leading style methodology.
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 18 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
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Beginning Account Value (08/01/21) |
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Ending Account Value (01/31/22) |
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Expenses Paid During the Period |
(a) |
|
Beginning Account Value (08/01/21) |
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Ending Account Value (01/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||
$ 1,000.00 | $ 705.70 | $ 3.44 | $ 1,000.00 | $ 1,021.20 | $ 4.08 | 0.80 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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” on page 18 for more information. |
Portfolio Management Commentary
Stocks of innovative, small- and medium-capitalization growth companies experienced a pronounced downturn during the reporting period. The Fed’s shift toward tighter monetary policy was the primary reason for the weak absolute and relative performance for this market segment. The Fed, in addition to announcing that it was going to start tapering its stimulative quantitative easing program, signaled its intention to begin raising interest rates in 2022. Higher rates tend to weigh heavily on growth stocks by reducing the value of their expected future profits when measured in today’s dollars. In this environment, small- and mid-sized growers—particularly in the technology and health care sectors—suffered sizable losses even as the major large-cap indexes gained ground.
The Fund underperformed its benchmark, the Russell 2500TM Growth Index. Stock selection, primarily in the consumer discretionary, healthcare and information technology sectors, was the leading factor in the shortfall. Sector allocation was an additional detractor, with the largest effects coming from an overweight in health care and underweights in the outperforming financials and energy sectors. Positive stock selection in communication services was a key contributor during the period.
At the individual stock level, Vroom, Inc.—an e-commerce platform for buying and selling new and used cars—was the largest individual detractor. The stock declined after reporting disappointing profits, but its revenue rose substantially in 2021. A position in Amyris, Inc., which makes specialty chemicals used in flavors and fragrances, also detracted from performance. The company experienced supply-chain issues that disrupted its short-term results.
On the positive side, Planet Fitness, Inc. was the top contributor during the six-month period. The company recovered from underperformance associated with COVID-19, and it gained market share amid the larger boom in the fitness industry. Saia, Inc. also contributed to performance. The shipping and logistics company executed an internal transformation as it accelerated the use of software to improve pricing and customer service. These shifts have enabled Saia to gain market share by disrupting larger, less nimble incumbents.
F U N D S U M M A R Y |
7 |
Fund Summary as of January 31, 2022 (continued) | BlackRock Future Innovators ETF |
Portfolio Information
ALLOCATION BY SECTOR |
| |||
Sector | |
Percent of Total Investments |
(a) | |
Software |
18.2 | % | ||
Semiconductors & Semiconductor Equipment |
10.9 | |||
Life Sciences Tools & Services |
8.7 | |||
Health Care Equipment & Supplies |
7.0 | |||
IT Services |
6.3 | |||
Health Care Technology |
6.2 | |||
Aerospace & Defense |
5.3 | |||
Hotels, Restaurants & Leisure |
5.3 | |||
Diversified Consumer Services |
3.5 | |||
Biotechnology |
2.8 | |||
Equity Real Estate Investment Trusts (REITs) |
2.7 | |||
Entertainment |
2.4 | |||
Road & Rail |
2.4 | |||
Electronic Equipment, Instruments & Components |
2.3 | |||
Building Products |
2.3 | |||
Food Products |
2.2 | |||
Auto Components |
2.2 | |||
Internet & Direct Marketing Retail |
2.2 | |||
Chemicals |
1.7 | |||
Specialty Retail |
1.5 | |||
Machinery |
1.4 | |||
Electrical Equipment |
1.3 | |||
Capital Markets |
1.2 |
TEN LARGEST HOLDINGS |
| |||
Security | |
Percent of Total Investments |
(a) | |
Bill.com Holdings Inc. |
3.4 | % | ||
Axon Enterprise Inc. |
3.3 | |||
Entegris Inc. |
3.2 | |||
Avalara Inc. |
3.1 | |||
Five9 Inc. |
3.0 | |||
Paylocity Holding Corp. |
2.9 | |||
Bio-Techne Corp. |
2.8 | |||
Monolithic Power Systems Inc. |
2.8 | |||
Globant SA |
2.7 | |||
10X Genomics Inc., Class A |
2.6 |
(a) |
Excludes money market funds. |
8 |
2 0 2 2 B L A C K R O C K S E M I - 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 January 31, 2022 | BlackRock Future Tech ETF |
Investment Objective
The BlackRock Future Tech ETF (the “Fund”) seeks to maximize total return.
Performance
Average Annual Total Returns |
Cumulative Total Returns | |||||||||||
6 Months | 1 Year | Since Inception |
1 Year | Since Inception | ||||||||
Fund NAV |
(23.76)% | (23.82)% | 7.03% | (23.82)% | 9.54% | |||||||
Fund Market |
(23.53) | (23.63) | 7.31 | (23.63) | 9.94 | |||||||
MSCI ACWI Index |
(0.32) | 13.23 | 21.58 | 13.23 | 29.83 |
The inception date of the Fund was 9/29/20. The first day of secondary market trading was 10/1/20.
MSCI ACWI Index captures large- and mid-cap representation across certain developed emerging markets.
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 18 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
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Beginning Account Value (08/01/21) |
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Ending Account Value (01/31/22) |
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Expenses Paid During the Period |
(a) |
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Beginning Account Value (08/01/21) |
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Ending Account Value (01/31/22) |
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|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
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$ 1,000.00 | $ 762.40 | $ 3.91 | $ 1,000.00 | $ 1,020.80 | $ 4.48 | 0.88 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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” on page 18 for more information. |
Portfolio Management Commentary
Stocks of faster-growing technology companies suffered a pronounced downturn during the reporting period, with the bulk of the losses occurring from late December 2021 onward. The Fed’s shift toward tighter monetary policy was the primary reason for the weak absolute returns and relative underperformance for this market segment. The Fed, in addition to announcing that it was going to start tapering its stimulative quantitative easing program, signaled its intention to begin raising interest rates in 2022. Higher rates tend to weigh heavily on growth stocks by reducing the present day value of their expected future profits.
Consistent with the broader environment, the Fund’s holdings experienced losses across all technology sub-sectors. The internet and services areas were the hardest hit in the downturn. On the other hand, the Fund’s holdings in semiconductor stocks—while posting an aggregate loss in absolute terms— was less affected by the sell-off. The industry continued to benefit from strong demand as buyers sought to build inventory to offset the effects of ongoing chip shortages.
The e-commerce software provider Lightspeed Commerce, Inc. was the largest individual detractor from Fund returns. The stock came under pressure following a report from a short seller that questioned the company’s reported net customer additions. Kakao Corp., an operator of online and mobile platforms, was also a meaningful detractor amid concerns about its corporate governance practices and the potential for increasing regulation.
Tesla, Inc. was the leading individual contributor to Fund performance. The electric vehicle manufacturer significantly increased production and gained market share during a period defined by supply constraints across the auto industry. ON Semiconductor Corp. was also a top contributor. The semiconductor company benefited from secular tailwinds from rising electric vehicle penetration, and its profit margins improved as its newly appointed CEO’s operational plan began to materialize.
F U N D S U M M A R Y |
9 |
Fund Summary as of January 31, 2022 (continued) | BlackRock Future Tech ETF |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Sector | |
Percent of Total Investments |
(a) | |
Semiconductors & Semiconductor Equipment |
32.1 | % | ||
Software |
25.7 | |||
IT Services |
16.3 | |||
Interactive Media & Services |
5.3 | |||
Electronic Equipment, Instruments & Components |
4.2 | |||
Automobiles |
3.3 | |||
Internet & Direct Marketing Retail |
3.0 | |||
Professional Services |
2.9 | |||
Entertainment |
2.3 | |||
Technology Hardware, Storage & Peripherals |
1.1 | |||
Other (each representing less than 1%) |
3.8 |
TEN LARGEST HOLDINGS |
| |||
Security | |
Percent of Total Investments |
(a) | |
Marvell Technology Inc. |
3.3 | % | ||
Tesla Inc. |
3.2 | |||
Silergy Corp. |
2.7 | |||
Lasertec Corp. |
2.4 | |||
ON Semiconductor Corp. |
2.2 | |||
SiteMinder Ltd. |
1.9 | |||
Synopsys Inc. |
1.8 | |||
Entegris Inc. |
1.8 | |||
Samsung SDI Co. Ltd. |
1.8 | |||
Atlassian Corp. PLC, Class A |
1.8 |
(a) |
Excludes money market funds. |
10 |
2 0 2 2 B L A C K R O C K S E M I - 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 January 31, 2022 | BlackRock Future U.S. Themes ETF |
Investment Objective
The BlackRock Future U.S. Themes ETF (the “Fund”) seeks long-term capital appreciation.
Performance
Cumulative Total Returns | ||
Since Inception | ||
| ||
Fund NAV |
(3.43)% | |
Fund Market |
(3.51) | |
S&P 500® Index |
(2.42) | |
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The inception date of the Fund was 12/14/21. The first day of secondary market trading was 12/16/21.
The S&P 500® Index covers 500 leading companies and captures approximately 80% coverage of available market capitalization.
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 18 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
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Beginning Account Value |
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Ending Account Value (01/31/22) |
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Expenses Paid During the Period |
(b) |
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Beginning Account Value (08/01/21) |
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|
Ending Account Value (01/31/22) |
|
|
Expenses Paid During the Period |
(b) |
|
Annualized Expense Ratio |
| ||||||
$ 1,000.00 | $ 965.70 | $ 0.78 | $ 1,000.00 | $ 1,022.20 | $ 3.06 | 0.60 | % |
(a) |
The beginning of the period (commencement of operations) is December 14, 2021. |
(b) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (48 days for actual and 184 days for hypothetical expenses) and divided by the number of days in the year (365 days). 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” on page 18 for more information. |
Portfolio Information
ALLOCATION BY SECTOR |
| |||
Sector | |
Percent of Total Investments |
(a) | |
Software |
13.4 | % | ||
Interactive Media & Services |
11.9 | |||
Semiconductors & Semiconductor Equipment |
11.5 | |||
Capital Markets |
9.9 | |||
Technology Hardware, Storage & Peripherals |
8.6 | |||
IT Services |
5.6 | |||
Electronic Equipment, Instruments & Components |
4.7 | |||
Oil, Gas & Consumable Fuels |
4.6 | |||
Specialty Retail |
3.8 | |||
Diversified Financial Services |
3.6 | |||
Internet & Direct Marketing Retail |
2.9 | |||
Banks |
2.6 | |||
Multiline Retail |
2.4 | |||
Chemicals |
2.2 | |||
Health Care Providers & Services |
1.7 | |||
Road & Rail |
1.7 | |||
Hotels, Restaurants & Leisure |
1.5 | |||
Textiles, Apparel & Luxury Goods |
1.4 | |||
Commercial Services & Supplies |
1.2 | |||
Other (each representing less than 1%) |
4.8 |
TEN LARGEST HOLDINGS |
| |||
Security | |
Percent of Total Investments |
(a) | |
Microsoft Corp. |
9.1 | % | ||
Apple Inc. |
8.6 | |||
Alphabet Inc., Class A |
5.1 | |||
Alphabet Inc., Class C |
4.6 | |||
Berkshire Hathaway Inc., Class B |
3.6 | |||
Accenture PLC, Class A |
3.6 | |||
Blackstone Inc. |
3.1 | |||
Amazon.com Inc. |
2.8 | |||
QUALCOMM Inc. |
2.8 | |||
SS&C Technologies Holdings Inc. |
2.6 |
(a) |
Excludes money market funds. |
F U N D S U M M A R Y |
11 |
Fund Summary as of January 31, 2022 | BlackRock U.S. Carbon Transition Readiness ETF |
Investment Objective
The BlackRock U.S. Carbon Transition Readiness ETF (the “Fund”) seeks long-term capital appreciation by investing in large- and mid-capitalization U.S. equity securities that may be better positioned to benefit from the transition to a low-carbon economy.
Performance
Cumulative Total Returns | ||||||
6 Months |
Since Inception | |||||
| ||||||
Fund NAV |
2.69% | 11.67% | ||||
Fund Market |
2.57 | 11.61 | ||||
Russell 1000® Index |
1.69 | 9.79 | ||||
|
The inception date of the Fund was 4/6/21. The first day of secondary market trading was 4/8/21.
The Russell 1000® Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1,000 of the largest securities based on a combination of their market capitalization and current index membership. The index represents approximately 93% of the U.S. market.
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 18 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||
|
Beginning Account Value (08/01/21) |
|
|
Ending Account Value (01/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (08/01/21) |
|
|
Ending Account Value (01/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||
$ 1,000.00 | $ 1,026.90 | $ 0.72 | $ 1,000.00 | $ 1,024.50 | $ 0.71 | 0.14 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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” on page 18 for more information. |
Portfolio Management Commentary
The Fund’s Low Carbon Economy Transition Readiness (“LCETR”) model-driven investment process evaluates companies’ preparedness for the transition to a low-carbon economy across five “pillars” (i.e., Fossil Fuels, Clean Technology, Energy Management, Waste Management and Water Management). These evaluations are used to determine active portfolio weights relative to the Fund’s benchmark, the Russell 1000® Index.
The U.S. stock market moved slightly higher during the reporting period, albeit with heightened volatility. Stocks weakened post November 2021 onward due to the combination of new COVID-19 variants, supply chain disruptions, and the likelihood that the Fed would need to tighten monetary policy in order to combat inflation. The Fund returned 2.69% for the six-month period ended January 31, 2022, outperforming the 1.69% return for the Russell 1000® Index.
The Energy Management pillar was a key contributor. The strategy did particularly well in the information technology sector, where overweights in companies such as Mastercard, Inc.—which the investment adviser believes has better energy management practices than its peers—added to performance.
Given the Fund’s tight sector and country constraints, security selection was the key driver of relative performance. Selection in the information technology sector had the largest positive impact on results. The Fund was positioned in a sector-neutral fashion. With that said, it had a slight overweight position in information technology and a small underweight in consumer staples.
By maximizing exposure to companies with higher LCETR scores, the Fund demonstrated 48% lower Carbon Emissions Intensity and 20% higher exposure to clean technology revenue than its benchmark as of January 31, 2022.
12 |
2 0 2 2 B L A C K R O C K S E M I - 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 January 31, 2022 (continued) | BlackRock U.S. Carbon Transition Readiness ETF |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Sector | |
Percent of Total Investments |
(a) | |
Information Technology |
29.0 | % | ||
Health Care |
13.4 | |||
Consumer Discretionary |
12.4 | |||
Financials |
11.4 | |||
Communication Services |
9.3 | |||
Industrials |
8.4 | |||
Consumer Staples |
5.4 | |||
Real Estate |
3.3 | |||
Energy |
3.0 | |||
Materials |
2.4 | |||
Utilities |
2.0 |
TEN LARGEST HOLDINGS | ||||
Security | |
Percent of Total Investments |
(a) | |
Microsoft Corp. |
6.1 | % | ||
Apple Inc. |
5.9 | |||
Amazon.com Inc. |
2.2 | |||
Alphabet Inc., Class A |
2.2 | |||
Meta Platforms Inc, Class A |
2.0 | |||
Tesla Inc. |
1.8 | |||
Alphabet Inc., Class C |
1.7 | |||
UnitedHealth Group Inc. |
1.7 | |||
Visa Inc., Class A |
1.5 | |||
PepsiCo Inc. |
1.4 |
(a) |
Excludes money market funds. |
F U N D S U M M A R Y |
13 |
Fund Summary as of January 31, 2022 | BlackRock U.S. Equity Factor Rotation ETF |
Investment Objective
The BlackRock U.S. Equity Factor Rotation ETF (the “Fund”) seeks to outperform the investment results of the large- and mid-capitalization U.S. equity markets by providing diversified and tactical exposure to style factors via a factor rotation model.
Performance
Average Annual Total Returns |
Cumulative Total Returns | |||||||||||
6 Months | 1 Year |
Since Inception |
|
1 Year |
Since Inception | |||||||
Fund NAV |
(1.39)% | 16.21% | 15.57% | 16.21% | 51.58% | |||||||
Fund Market |
(1.51) | 16.04 | 15.51 | 16.04 | 51.36 | |||||||
MSCI USA Index |
1.87 | 20.90 | 20.19 | 20.90 | 69.34 |
The inception date of the Fund was 3/19/19. The first day of secondary market trading was 3/21/19.
The MSCI USA Index is designed to measure the performance of the large and mid cap segments of the US market. The index covers approximately 85% of the free float-adjusted market capitalization in the US. Effective September 23, 2019, the Fund changed its benchmark against which it measures its performance from a custom weighted index composed of the 80% MSCI USA Index / 20% MSCI USA Minimum Volatility (USD) Index to the MSCI USA Index.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 18 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||
|
Beginning Account Value (08/01/21) |
|
|
Ending Account Value (01/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (08/01/21) |
|
|
Ending Account Value (01/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||
$ 1,000.00 | $ 986.10 | $ 1.00 | $ 1,000.00 | $ 1,024.20 | $ 1.02 | 0.20 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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” on page 18 for more information. |
Portfolio Management Commentary
The Fund underperformed its benchmark, the MSCI USA Index, for the six-month period ended January 31, 2022. The Fund’s actively managed factor rotation strategy seeks diversified exposure to seven style factors: value, low size, momentum, quality, minimum volatility, mega cap, and growth. The Fund strives to outpace the broader market by actively emphasizing the factors that BlackRock Fund Advisors believes will outperform based on its forward-looking insights.
The value factor significantly outperformed the MSCI USA Index in the period, with much of the advantage occurring in December 2021 and January 2022. As investors began to price in higher inflation and rising interest rates, value stocks became more attractive than growth. Valuations in the latter category often depend on expected future profits, which become less valuable in current dollars as rates rise. Minimum volatility stocks, while posting gains due in part to increasing investor risk aversion in the second half of the period, trailed the index. The low size and quality categories experienced narrow underperformance, while momentum was the weakest performer. After outpacing the broader market through mid-November 2021, momentum lagged considerably once investors’ attention began to shift toward the possibility of rising rates.
The Fund’s factor strategy was enhanced in November 2021. Its required minimum allocation to individual factors was reduced to zero, allowing it to avoid those that look unattractive. The strategy also gained the ability to own growth and mega-cap stocks if value and low size, respectively, appear less compelling. The Fund established a large weighting in the growth factor at this time, which hurt performance in the final two months of the period. A zero weighting in the value factor also detracted in this interval, as did a large weighting in momentum.
At the sector level, positioning in information technology was the largest detractor from performance. The weakest results occurred in the semiconductor / semiconductor equipment and software & services industries. Health care was also a source of underperformance, primarily as result of positioning in the pharmaceuticals and biotechnology industries. On the plus side, positioning in financials contributed positively.
14 |
2 0 2 2 B L A C K R O C K S E M I - 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 January 31, 2022 (continued) | BlackRock U.S. Equity Factor Rotation ETF |
Portfolio Information
ALLOCATION BY SECTOR | ||||
Sector | |
Percent of Total Investments |
(a) | |
Information Technology |
36.1 | % | ||
Consumer Discretionary |
12.1 | |||
Health Care |
11.8 | |||
Financials |
11.2 | |||
Communication Services |
10.0 | |||
Consumer Staples |
6.2 | |||
Industrials |
5.1 | |||
Energy |
2.9 | |||
Utilities |
1.6 | |||
Materials |
1.6 | |||
Real Estate |
1.4 |
TEN LARGEST HOLDINGS | ||||
Security | |
Percent of Total Investments |
(a) | |
Microsoft Corp. |
7.3 | % | ||
Apple Inc. |
7.1 | |||
Amazon.com Inc. |
3.2 | |||
Tesla Inc. |
3.1 | |||
Alphabet Inc., Class A |
2.7 | |||
Alphabet Inc., Class C |
2.6 | |||
NVIDIA Corp. |
2.6 | |||
Applied Materials Inc. |
2.1 | |||
Meta Platforms Inc, Class A |
2.1 | |||
JPMorgan Chase & Co. |
1.5 |
(a) |
Excludes money market funds. |
F U N D S U M M A R Y |
15 |
Fund Summary as of January 31, 2022 | BlackRock World ex U.S. Carbon Transition Readiness ETF |
Investment Objective
The BlackRock World ex U.S. Carbon Transition Readiness ETF (the “Fund”) seeks long-term capital appreciation by investing in large- and mid-capitalization World ex U.S. equity securities that may be better positioned to benefit from the transition to a low-carbon economy.
Performance
Cumulative Total Returns | ||||
| ||||
6 Months |
Since Inception | |||
| ||||
Fund NAV |
(2.94)% | 1.69% | ||
Fund Market |
(3.18) | 1.66 | ||
MSCI World ex USA Index |
(2.70) | 1.71 | ||
|
The inception date of the Fund was 4/6/21. The first day of secondary market trading was 4/8/21.
The MSCI World ex USA Index captures large- and mid-cap representation across certain developed markets countries, excluding the United States. The index covers approximately 85% of the free float-adjusted market capitalization in each country.
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 18 for more information.
Expense Example
Actual | Hypothetical 5% Return | |||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||
|
Beginning Account Value (08/01/21) |
|
|
Ending Account Value (01/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Beginning Account Value (08/01/21) |
|
|
Ending Account Value (01/31/22) |
|
|
Expenses Paid During the Period |
(a) |
|
Annualized Expense Ratio |
| ||||||||||
$ 1,000.00 | $ 970.60 | $ 0.99 | $ 1,000.00 | $ 1,024.20 | $ 1.02 | 0.20 | % |
(a) |
Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). 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” on page 18 for more information. |
Portfolio Management Commentary
The Fund’s Low Carbon Economy Transition Readiness (“LCETR”) model-driven investment process evaluates companies’ preparedness for the transition to a low-carbon economy across five “pillars” (i.e., Fossil Fuels, Clean Technology, Energy Management, Waste Management and Water Management). These evaluations are used to determine active portfolio weights relative to the Fund’s benchmark, the MSCI World ex USA Index.
The world markets (ex-U.S.) moved modestly lower during the reporting period as COVID-related lockdowns and supply chain issues hampered economic activity. The European energy crisis was also a performance headwind. Spain’s government intervened to regulate rising electricity prices that disproportionally hurt the alternative energy generators the Fund favored. Despite these fluctuations, the investment adviser remained confident in the Fund’s long-term approach. The Fund returned (2.94)% for the six-month period ended January 31, 2022, slightly underperforming the (2.70)% return for the MSCI World ex USA Index.
The Clean Technology and Waste Management pillars detracted from performance. Overweights in Enel SA, a Clean Technology leader in the utilities sector, was hit by selloff related to Europe’s energy crisis. Given the Fund’s tight sector and country constraints, security selection was the key driver of relative performance. Selection in the industrials and materials sectors had the largest adverse impact on results.
Although the Fund was positioned in a sector- and country-neutral fashion, it maintained a slight overweight in communications services and a small underweight in consumer discretionary. At the country level, it had narrow overweights in Sweden and Spain, as well as modest underweights in Germany and France.
By maximizing exposure to companies with higher LCETR scores, the Fund demonstrated 27% lower Carbon Emissions Intensity and 54% higher exposure to clean technology revenue than its benchmark as of January 31, 2022.
16 |
2 0 2 2 B L A C K R O C K S E M I - 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 January 31, 2022 (continued) | BlackRock World ex U.S. Carbon Transition Readiness ETF |
Portfolio Information
ALLOCATION BY SECTOR |
| |||
Sector | |
Percent of Total Investments |
(a) | |
Financials |
20.7 | % | ||
Industrials |
14.9 | |||
Consumer Discretionary |
11.9 | |||
Health Care |
11.0 | |||
Consumer Staples |
9.4 | |||
Information Technology |
8.9 | |||
Materials |
7.7 | |||
Energy |
5.1 | |||
Communication Services |
4.5 | |||
Utilities |
3.1 | |||
Real Estate |
2.8 |
TEN LARGEST GEOGRAPHIC ALLOCATION |
| |||
Country/Geographic Region | |
Percent of Total Investments |
(a) | |
Japan |
20.4 | % | ||
United Kingdom |
13.4 | |||
Canada |
11.4 | |||
France |
9.5 | |||
Switzerland |
9.1 | |||
Australia |
6.7 | |||
Germany |
5.8 | |||
Netherlands |
5.2 | |||
Sweden |
3.5 | |||
Denmark |
3.0 |
(a) |
Excludes money market funds. |
F U N D S U M M A R Y |
17 |
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 blackrock.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 by using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
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 (or from the commencement of operations if less than 6 months) 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.
18 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) January 31, 2022 |
BlackRock Future Climate and Sustainable Economy ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
| |||||||
Building Products — 6.6% | ||||||||
AZEK Co. Inc. (The)(a) |
1,160 | $ | 38,315 | |||||
Cie. de Saint-Gobain |
1,495 | 101,163 | ||||||
Johnson Controls International PLC |
499 | 36,262 | ||||||
Kingspan Group PLC |
437 | 42,064 | ||||||
Trane Technologies PLC |
192 | 33,235 | ||||||
Trex Co. Inc.(a) |
583 | 53,327 | ||||||
|
|
|||||||
304,366 | ||||||||
Capital Markets — 1.8% | ||||||||
Agronomics Ltd.(a) |
339,553 | 82,200 | ||||||
|
|
|||||||
Chemicals — 19.0% | ||||||||
Corbion NV |
896 | 37,411 | ||||||
Ecolab Inc. |
664 | 125,795 | ||||||
FMC Corp. |
1,280 | 141,274 | ||||||
Koninklijke DSM NV |
679 | 127,286 | ||||||
Lenzing AG(a) |
386 | 47,380 | ||||||
Nutrien Ltd. |
1,727 | 120,545 | ||||||
Robertet SA |
92 | 90,218 | ||||||
Sika AG, Registered |
128 | 44,784 | ||||||
SK IE Technology Co. Ltd.(a)(b) |
288 | 28,274 | ||||||
Symrise AG |
932 | 111,373 | ||||||
|
|
|||||||
874,340 | ||||||||
Commercial Services & Supplies — 1.1% | ||||||||
Tomra Systems ASA |
999 | 49,945 | ||||||
|
|
|||||||
Construction & Engineering — 0.8% | ||||||||
Quanta Services Inc. |
339 | 34,822 | ||||||
|
|
|||||||
Containers & Packaging — 7.7% | ||||||||
Ball Corp. |
1,097 | 106,519 | ||||||
Crown Holdings Inc. |
1,293 | 147,919 | ||||||
SIG Combibloc Group AG(a) |
4,272 | 99,255 | ||||||
|
|
|||||||
353,693 | ||||||||
Electric Utilities — 5.5% | ||||||||
Enel SpA |
17,765 | 136,730 | ||||||
NextEra Energy Inc. |
1,516 | 118,430 | ||||||
|
|
|||||||
255,160 | ||||||||
Electrical Equipment — 6.8% | ||||||||
Ballard Power Systems Inc.(a)(c) |
2,983 | 31,023 | ||||||
Prysmian SpA |
1,013 | 34,160 | ||||||
Schneider Electric SE |
666 | 112,817 | ||||||
Sunrun Inc.(a) |
1,075 | 27,875 | ||||||
Vestas Wind Systems A/S |
2,701 | 73,090 | ||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class H |
19,400 | 33,822 | ||||||
|
|
|||||||
312,787 | ||||||||
Electronic Equipment, Instruments & Components — 6.8% | ||||||||
Hexagon AB, Class B |
2,560 | 34,530 | ||||||
Keyence Corp. |
100 | 51,292 | ||||||
Samsung SDI Co. Ltd. |
235 | 116,627 | ||||||
TE Connectivity Ltd. |
245 | 35,037 | ||||||
Zebra Technologies Corp., Class A(a) |
150 | 76,368 | ||||||
|
|
|||||||
313,854 | ||||||||
Food & Staples Retailing — 2.9% | ||||||||
HelloFresh SE(a) |
1,274 | 84,824 | ||||||
Ocado Group PLC(a) |
2,306 | 46,986 | ||||||
|
|
|||||||
131,810 | ||||||||
Food Products — 10.1% | ||||||||
Bunge Ltd. |
1,130 | 111,712 |
Security | Shares | Value | ||||||
Food Products (continued) | ||||||||
Darling Ingredients Inc.(a) |
716 | $ | 45,659 | |||||
Kerry Group PLC, Class A |
984 | 123,982 | ||||||
Maple Leaf Foods Inc. |
2,230 | 54,243 | ||||||
Salmar ASA |
1,925 | 131,253 | ||||||
|
|
|||||||
466,849 | ||||||||
Independent Power and Renewable Electricity Producers — 3.2% | ||||||||
EDP Renovaveis SA |
5,576 | 117,216 | ||||||
Scatec ASA(b) |
2,144 | 31,667 | ||||||
|
|
|||||||
148,883 | ||||||||
Machinery — 12.4% | ||||||||
Ag Growth International Inc. |
2,856 | 76,278 | ||||||
AGCO Corp. |
655 | 76,766 | ||||||
Atlas Copco AB, Class A |
572 | 33,855 | ||||||
Deere & Co. |
416 | 156,582 | ||||||
Evoqua Water Technologies Corp.(a) |
1,661 | 67,271 | ||||||
Ingersoll Rand Inc. |
843 | 47,385 | ||||||
John Bean Technologies Corp. |
478 | 64,530 | ||||||
Marel HF |
7,635 | 47,691 | ||||||
|
|
|||||||
570,358 | ||||||||
Metals & Mining — 0.7% | ||||||||
Sims Ltd. |
3,196 | 32,539 | ||||||
|
|
|||||||
Paper & Forest Products — 3.9% | ||||||||
Mondi PLC |
3,149 | 78,785 | ||||||
UPM-Kymmene OYJ |
2,749 | 100,192 | ||||||
|
|
|||||||
178,977 | ||||||||
Professional Services — 2.1% | ||||||||
Bureau Veritas SA |
3,425 | 97,997 | ||||||
|
|
|||||||
Semiconductors & Semiconductor Equipment — 5.5% | ||||||||
Analog Devices Inc. |
221 | 36,237 | ||||||
Canadian Solar Inc.(a)(c) |
1,174 | 32,860 | ||||||
First Solar Inc.(a) |
418 | 32,763 | ||||||
Infineon Technologies AG |
2,813 | 116,818 | ||||||
ON Semiconductor Corp.(a) |
577 | 34,043 | ||||||
|
|
|||||||
252,721 | ||||||||
Software — 2.8% | ||||||||
ANSYS Inc.(a) |
94 | 31,961 | ||||||
Autodesk Inc.(a) |
267 | 66,694 | ||||||
Dassault Systemes SE |
632 | 30,562 | ||||||
|
|
|||||||
129,217 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.7% |
|
4,590,518 | ||||||
|
|
|||||||
Warrants |
||||||||
Capital Markets — 0.2% | ||||||||
Agronomics Ltd., (Expires 12/11/23)(a) |
329,052 | 11,019 | ||||||
|
|
|||||||
Total
Warrants — 0.2% |
|
11,019 | ||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 2.1% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.08%(d)(e)(f) |
47,979 | 47,993 |
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 (unaudited) (continued) January 31, 2022 |
BlackRock Future Climate and Sustainable Economy ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
|
||||||||
Money Market Funds (continued) | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(d)(e) |
50,000 | $ | 50,000 | |||||
|
|
|||||||
97,993 | ||||||||
|
|
|||||||
Total
Short-Term Investments — 2.1% |
|
97,993 | ||||||
|
|
|||||||
Total
Investments in Securities — 102.0% |
|
4,699,530 | ||||||
Other Assets, Less Liabilities — (2.0)% |
|
(93,621 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
|
$ | 4,605,909 | |||||
|
|
(a) |
Non-income producing security. |
(b) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) |
All or a portion of this security is on loan. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
(f) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the period ended January 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
|
||||||||||||||||||||||||||||||||||||
Affiliated Issuer | |
Value at 08/03/21 |
(a) |
|
Purchases at Cost |
|
|
Proceeds from Sales |
|
|
Net Realized Gain (Loss) |
|
|
Change in Unrealized |
|
|
Value at 01/31/22 |
|
|
Shares Held at |
|
Income |
|
Capital Gain Distributions from Underlying Funds |
| |||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | — | $ | 48,005 | (b) | $ | — | $ | (12) | $ | — | $ | 47,993 | 47,979 | $ | 70 | (c) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
— | 50,000 | (b) | — | — | — | 50,000 | 50,000 | 2 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (12) | $ | — | $ | 97,993 | $ | 72 | $ | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Represents net amount purchased (sold). |
(c) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
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 |
$ | 2,191,622 | $ | 2,398,896 | $ | — | $ | 4,590,518 | ||||||||
Warrants |
— | 11,019 | — | 11,019 | ||||||||||||
Money Market Funds |
97,993 | — | — | 97,993 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 2,289,615 | $ | 2,409,915 | $ | — | $ | 4,699,530 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
20 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) January 31, 2022 |
BlackRock Future Health ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Biotechnology — 26.6% | ||||||||
Acumen Pharmaceuticals Inc.(a) |
668 | $ | 3,420 | |||||
Agios Pharmaceuticals Inc.(a) |
1,588 | 49,053 | ||||||
Alnylam Pharmaceuticals Inc.(a) |
275 | 37,840 | ||||||
Ambrx Biopharma Inc., ADR(a) |
428 | 2,072 | ||||||
Apellis Pharmaceuticals Inc.(a) |
613 | 24,686 | ||||||
Applied Molecular Transport Inc.(a) |
301 | 2,835 | ||||||
Arcus Biosciences Inc.(a) |
328 | 10,102 | ||||||
Arcutis Biotherapeutics Inc.(a) |
2,686 | 40,585 | ||||||
Argenx SE, ADR(a) |
433 | 116,590 | ||||||
Arrowhead Pharmaceuticals Inc.(a) |
306 | 16,145 | ||||||
Bicycle Therapeutics PLC, ADR(a) |
176 | 8,594 | ||||||
BioAtla Inc.(a) |
466 | 4,455 | ||||||
Biogen Inc.(a) |
205 | 46,330 | ||||||
Biohaven Pharmaceutical Holding Co. Ltd.(a) |
600 | 79,722 | ||||||
BioMarin Pharmaceutical Inc.(a) |
1,532 | 135,781 | ||||||
Blueprint Medicines Corp.(a) |
642 | 49,498 | ||||||
C4 Therapeutics Inc.(a) |
610 | 14,902 | ||||||
Connect Biopharma Holdings Ltd.(a) |
211 | 971 | ||||||
Decibel Therapeutics Inc.(a) |
469 | 2,017 | ||||||
Design Therapeutics Inc.(a) |
243 | 3,072 | ||||||
Enanta Pharmaceuticals Inc.(a) |
208 | 12,359 | ||||||
Exact Sciences Corp.(a) |
505 | 38,562 | ||||||
Fate Therapeutics Inc.(a) |
163 | 6,766 | ||||||
Galapagos NV, ADR(a) |
431 | 29,093 | ||||||
Genmab A/S(a) |
284 | 96,710 | ||||||
Genmab A/S, ADR(a)(b) |
812 | 27,673 | ||||||
Horizon Therapeutics PLC(a) |
1,099 | 102,570 | ||||||
Icosavax Inc.(a) |
1,436 | 21,913 | ||||||
Ideaya Biosciences Inc.(a) |
604 | 10,008 | ||||||
Imago Biosciences Inc.(a) |
412 | 8,331 | ||||||
Immunocore Holdings PLC(a) |
200 | 4,514 | ||||||
Ionis Pharmaceuticals Inc.(a) |
592 | 18,826 | ||||||
Iovance Biotherapeutics Inc.(a) |
700 | 11,655 | ||||||
Karuna Therapeutics Inc.(a) |
267 | 29,653 | ||||||
Keros Therapeutics Inc.(a) |
763 | 35,380 | ||||||
Kinnate Biopharma Inc.(a)(b) |
843 | 9,256 | ||||||
Kodiak Sciences Inc.(a) |
275 | 16,143 | ||||||
Krystal Biotech Inc.(a) |
261 | 15,399 | ||||||
Kymera Therapeutics Inc.(a) |
907 | 38,094 | ||||||
Merus NV(a) |
344 | 8,466 | ||||||
Mirati Therapeutics Inc.(a) |
301 | 35,909 | ||||||
Monte Rosa Therapeutics Inc.(a) |
458 | 5,798 | ||||||
Morphic Holding Inc.(a) |
317 | 13,450 | ||||||
Natera Inc.(a)(b) |
1,594 | 112,616 | ||||||
Neurocrine Biosciences Inc.(a) |
854 | 67,483 | ||||||
PMV Pharmaceuticals Inc.(a) |
963 | 15,466 | ||||||
Prometheus Biosciences Inc.(a) |
715 | 25,690 | ||||||
Prothena Corp. PLC(a) |
1,212 | 41,305 | ||||||
RAPT Therapeutics Inc.(a) |
629 | 13,599 | ||||||
REVOLUTION Medicines Inc.(a) |
811 | 17,453 | ||||||
Rubius Therapeutics Inc.(a) |
365 | 2,464 | ||||||
Sarepta Therapeutics Inc.(a) |
1,011 | 72,357 | ||||||
Seagen Inc.(a) |
1,330 | 178,898 | ||||||
Sierra Oncology Inc.(a) |
633 | 17,085 | ||||||
Sigilon Therapeutics Inc.(a) |
962 | 1,876 | ||||||
Talaris Therapeutics Inc.(a) |
381 | 3,593 | ||||||
Taysha Gene Therapies Inc.(a) |
597 | 4,746 | ||||||
Tenaya Therapeutics Inc.(a) |
472 | 5,626 |
Security | Shares | Value | ||||||
Biotechnology (continued) | ||||||||
TScan Therapeutics Inc.(a) |
1,836 | $ | 8,868 | |||||
Twist Bioscience Corp.(a) |
595 | 35,355 | ||||||
United Therapeutics Corp.(a) |
213 | 42,998 | ||||||
Vertex Pharmaceuticals Inc.(a) |
728 | 176,940 | ||||||
Zentalis Pharmaceuticals Inc.(a) |
820 | 46,806 | ||||||
|
|
|||||||
2,136,422 | ||||||||
Diversified Financial Services — 1.6% | ||||||||
DA32 Life Science Tech Acquisition Corp., Class A(a) |
4,241 | 40,798 | ||||||
Eucrates Biomedical Acquisition Corp.(a) |
2,475 | 24,156 | ||||||
Health Assurance Acquisition Corp., Class A(a) |
3,754 | 36,677 | ||||||
Helix Acquisition Corp., Class A(a) |
593 | 5,859 | ||||||
MedTech Acquisition Corp./NY, Class A(a) |
2,544 | 25,084 | ||||||
|
|
|||||||
132,574 | ||||||||
Electronic Equipment, Instruments & Components — 0.2% | ||||||||
908 Devices Inc.(a) |
864 | 13,668 | ||||||
|
|
|||||||
Health Care Equipment & Supplies — 35.0% | ||||||||
ABIOMED Inc.(a) |
564 | 166,871 | ||||||
Alcon Inc.(b) |
2,812 | 215,905 | ||||||
Boston Scientific Corp.(a) |
1,629 | 69,884 | ||||||
ConvaTec Group PLC(c) |
15,684 | 37,236 | ||||||
Cooper Companies Inc. (The) |
341 | 135,820 | ||||||
Demant A/S(a) |
1,492 | 66,011 | ||||||
DENTSPLY SIRONA Inc. |
2,517 | 134,458 | ||||||
Dexcom Inc.(a) |
269 | 115,799 | ||||||
Edwards Lifesciences Corp.(a) |
1,277 | 139,448 | ||||||
Globus Medical Inc., Class A(a) |
306 | 20,419 | ||||||
GN Store Nord A/S |
1,368 | 82,783 | ||||||
Hologic Inc.(a) |
1,466 | 102,972 | ||||||
Insulet Corp.(a) |
541 | 134,168 | ||||||
Intuitive Surgical Inc.(a) |
464 | 131,860 | ||||||
Masimo Corp.(a) |
673 | 147,973 | ||||||
Nevro Corp.(a) |
1,432 | 94,082 | ||||||
Novocure Ltd.(a) |
395 | 27,117 | ||||||
Nyxoah SA(a) |
1,824 | 36,061 | ||||||
Penumbra Inc.(a) |
242 | 54,695 | ||||||
Pulmonx Corp.(a) |
425 | 10,349 | ||||||
ResMed Inc. |
608 | 138,989 | ||||||
SI-BONE Inc.(a) |
596 | 11,741 | ||||||
Sonova Holding AG, Registered |
258 | 91,910 | ||||||
STERIS PLC |
498 | 111,751 | ||||||
Straumann Holding AG, Registered |
26 | 43,084 | ||||||
Stryker Corp. |
268 | 66,477 | ||||||
Tandem Diabetes Care Inc.(a) |
1,069 | 126,260 | ||||||
Teleflex Inc. |
517 | 160,368 | ||||||
Zimmer Biomet Holdings Inc. |
1,051 | 129,294 | ||||||
|
|
|||||||
2,803,785 | ||||||||
Health Care Providers & Services — 10.2% | ||||||||
Addus HomeCare Corp.(a) |
147 | 11,735 | ||||||
agilon health Inc.(a) |
844 | 13,994 | ||||||
Amedisys Inc.(a) |
401 | 54,175 | ||||||
AmerisourceBergen Corp. |
1,071 | 145,870 | ||||||
Amplifon SpA |
2,330 | 99,039 | ||||||
Anthem Inc. |
153 | 67,472 | ||||||
Encompass Health Corp. |
1,386 | 85,987 | ||||||
Guardant Health Inc.(a) |
720 | 50,076 | ||||||
LHC Group Inc.(a) |
331 | 41,077 | ||||||
McKesson Corp. |
482 | 123,739 | ||||||
Quest Diagnostics Inc. |
543 | 73,316 |
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 (unaudited) (continued) January 31, 2022 |
BlackRock Future Health ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Health Care Providers & Services (continued) | ||||||||
R1 RCM Inc.(a) |
1,131 | $ | 26,895 | |||||
Rede D’Or Sao Luiz SA(c) |
2,795 | 23,328 | ||||||
|
|
|||||||
816,703 | ||||||||
Health Care Technology — 0.1% | ||||||||
Sophia Genetics SA(a) |
825 | 9,652 | ||||||
|
|
|||||||
Life Sciences Tools & Services — 18.1% | ||||||||
Agilent Technologies Inc. |
435 | 60,604 | ||||||
Avantor Inc.(a) |
1,997 | 74,548 | ||||||
Bruker Corp. |
1,227 | 81,718 | ||||||
Charles River Laboratories International Inc.(a) |
325 | 107,172 | ||||||
Cytek Biosciences Inc.(a) |
2,380 | 34,653 | ||||||
ICON PLC(a)(b) |
1,066 | 283,257 | ||||||
Illumina Inc.(a) |
309 | 107,785 | ||||||
IQVIA Holdings Inc.(a) |
521 | 127,593 | ||||||
IsoPlexis Corp(a) |
480 | 2,957 | ||||||
Lonza Group AG, Registered |
128 | 88,249 | ||||||
Mettler-Toledo International Inc.(a) |
54 | 79,525 | ||||||
QIAGEN NV(a) |
3,138 | 155,300 | ||||||
Sotera Health Co.(a) |
3,729 | 80,211 | ||||||
Waters Corp.(a) |
252 | 80,670 | ||||||
West Pharmaceutical Services Inc. |
114 | 44,827 | ||||||
Wuxi Biologics Cayman Inc., New(a)(c) |
4,000 | 40,091 | ||||||
|
|
|||||||
1,449,160 | ||||||||
Pharmaceuticals — 4.9% | ||||||||
Astellas Pharma Inc. |
6,100 | 98,457 | ||||||
Daiichi Sankyo Co. Ltd. |
5,400 | 121,338 | ||||||
Merck KGaA |
284 | 62,281 | ||||||
Nektar Therapeutics(a) |
1,186 | 13,188 | ||||||
UCB SA |
997 | 99,207 | ||||||
|
|
|||||||
394,471 | ||||||||
|
|
|||||||
Total
Common Stocks — 96.7% |
7,756,435 | |||||||
|
|
|||||||
Warrants |
||||||||
Diversified Financial Services — 0.0% | ||||||||
Eucrates Biomedical Acquisition Corp., (Expires 12/14/25)(a) |
825 | 330 |
Security | Shares | Value | ||||||
|
||||||||
Diversified Financial Services (continued) | ||||||||
Health Assurance Acquisition Corp., (Expires 11/12/25)(a) |
938 | $ | 480 | |||||
MedTech
Acquisition Corp./NY, |
848 | 401 | ||||||
|
|
|||||||
1,211 | ||||||||
|
|
|||||||
Total
Warrants — 0.0% |
1,211 | |||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 10.8% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.08%(d)(e)(f) |
528,307 | 528,465 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(d)(e) |
340,000 | 340,000 | ||||||
|
|
|||||||
868,465 | ||||||||
|
|
|||||||
Total
Short-Term Investments — 10.8% |
868,465 | |||||||
|
|
|||||||
Total
Investments in Securities — 107.5% |
8,626,111 | |||||||
Other Assets, Less Liabilities — (7.5)% |
(605,109 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 8,021,002 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
(f) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 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 07/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 01/31/22 |
Shares Held at 01/31/22 |
Income |
Capital Gain |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 185,281 | $ | 343,272 | (a) | $ | — | $ | (88 | ) | $ | — | $ | 528,465 | 528,307 | $ | 519 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
430,000 | — | (90,000 | )(a) | — | — | 340,000 | 340,000 | 11 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (88 | ) | $ | — | $ | 868,465 | $ | 530 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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. |
22 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) (continued) January 31, 2022 |
BlackRock Future Health ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
Common Stocks |
$ | 6,730,039 | $ | 1,026,396 | $ | — | $ | 7,756,435 | ||||||||
Warrants |
1,211 | — | — | 1,211 | ||||||||||||
Money Market Funds |
868,465 | — | — | 868,465 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 7,599,715 | $ | 1,026,396 | $ | — | $ | 8,626,111 | |||||||||
|
|
|
|
|
|
|
|
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 (unaudited) January 31, 2022 |
BlackRock Future Innovators ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Aerospace & Defense — 5.3% | ||||||||
Axon Enterprise Inc.(a)(b) |
3,179 | $ | 444,837 | |||||
HEICO Corp. |
1,948 | 265,688 | ||||||
|
|
|||||||
710,525 | ||||||||
Auto Components — 2.2% | ||||||||
Fox Factory Holding Corp.(a) |
2,232 | 297,012 | ||||||
|
|
|||||||
Biotechnology — 2.8% | ||||||||
Halozyme Therapeutics Inc.(a) |
7,002 | 242,339 | ||||||
Natera Inc.(a) |
1,924 | 135,931 | ||||||
|
|
|||||||
378,270 | ||||||||
Building Products — 2.3% | ||||||||
AZEK Co. Inc. (The)(a) |
9,302 | 307,245 | ||||||
|
|
|||||||
Capital Markets — 1.1% | ||||||||
TPG Inc.(a) |
4,559 | 153,046 | ||||||
|
|
|||||||
Chemicals — 1.7% | ||||||||
Amyris Inc.(a)(b) |
49,620 | 226,267 | ||||||
|
|
|||||||
Diversified Consumer Services — 3.5% | ||||||||
Bright Horizons Family Solutions Inc.(a) |
1,670 | 214,445 | ||||||
Duolingo Inc., Class A(a)(b) |
2,557 | 255,725 | ||||||
|
|
|||||||
470,170 | ||||||||
Electrical Equipment — 1.3% | ||||||||
Shoals Technologies Group Inc., Class A(a) |
10,440 | 176,018 | ||||||
|
|
|||||||
Electronic Equipment, Instruments & Components — 2.3% | ||||||||
908 Devices Inc.(a) |
9,273 | 146,699 | ||||||
Halma PLC |
4,905 | 166,248 | ||||||
|
|
|||||||
312,947 | ||||||||
Entertainment — 2.4% | ||||||||
Kahoot! ASA(a) |
80,765 | 324,269 | ||||||
|
|
|||||||
Equity Real Estate Investment Trusts (REITs) — 2.7% | ||||||||
Innovative Industrial Properties Inc. |
746 | 147,850 | ||||||
Rexford Industrial Realty Inc. |
2,846 | 208,242 | ||||||
|
|
|||||||
356,092 | ||||||||
Food Products — 2.2% | ||||||||
Freshpet Inc.(a) |
3,219 | 299,464 | ||||||
|
|
|||||||
Health Care Equipment & Supplies — 7.0% | ||||||||
Figs Inc., Class A(a) |
7,642 | 171,792 | ||||||
Inmode Ltd.(a) |
3,205 | 154,577 | ||||||
Masimo Corp.(a) |
1,556 | 342,118 | ||||||
Outset Medical Inc.(a) |
4,761 | 177,062 | ||||||
Pulmonx Corp.(a) |
3,889 | 94,697 | ||||||
|
|
|||||||
940,246 | ||||||||
Health Care Technology — 6.1% | ||||||||
Certara Inc.(a)(b) |
10,685 | 285,610 | ||||||
Health Catalyst Inc.(a) |
6,638 | 198,144 | ||||||
Phreesia Inc.(a) |
10,894 | 339,784 | ||||||
|
|
|||||||
823,538 | ||||||||
Hotels, Restaurants & Leisure — 5.3% | ||||||||
Penn National Gaming Inc.(a) |
5,138 | 234,344 | ||||||
Planet Fitness Inc., Class A(a) |
3,311 | 293,487 | ||||||
Wingstop Inc. |
1,181 | 180,988 | ||||||
|
|
|||||||
708,819 | ||||||||
Internet & Direct Marketing Retail — 2.2% | ||||||||
Fiverr International Ltd.(a) |
3,465 | 295,599 | ||||||
|
|
Security | Shares | Value | ||||||
|
||||||||
IT Services — 6.3% | ||||||||
DigitalOcean Holdings Inc.(a) |
5,057 | $ | 289,969 | |||||
Globant SA(a) |
1,407 | 359,038 | ||||||
Nuvei Corp.(a)(c) |
3,171 | 193,256 | ||||||
|
|
|||||||
842,263 | ||||||||
Life Sciences Tools & Services — 8.7% | ||||||||
10X Genomics Inc., Class A(a)(b) |
3,613 | 347,823 | ||||||
Bio-Techne Corp. |
997 | 375,281 | ||||||
Olink Holding AB, ADR(a) |
8,124 | 131,446 | ||||||
Repligen Corp.(a) |
1,196 | 237,215 | ||||||
Seer Inc., Class A(a) |
4,637 | 72,940 | ||||||
|
|
|||||||
1,164,705 | ||||||||
Machinery — 1.4% | ||||||||
Chart Industries Inc.(a)(b) |
1,502 | 183,049 | ||||||
|
|
|||||||
Road & Rail — 2.4% | ||||||||
Saia Inc.(a) |
1,117 | 317,541 | ||||||
|
|
|||||||
Semiconductors & Semiconductor Equipment — 10.9% | ||||||||
Ambarella Inc.(a) |
2,063 | 289,129 | ||||||
Azenta Inc.(b) |
3,245 | 273,683 | ||||||
Entegris Inc. |
3,619 | 433,701 | ||||||
Lattice Semiconductor Corp.(a) |
1,659 | 91,610 | ||||||
Monolithic Power Systems Inc. |
917 | 369,487 | ||||||
|
|
|||||||
1,457,610 | ||||||||
Software — 18.2% | ||||||||
Avalara Inc.(a) |
3,807 | 417,324 | ||||||
Bill.com Holdings Inc.(a) |
2,391 | 450,010 | ||||||
Blackline Inc.(a) |
2,359 | 216,721 | ||||||
Five9 Inc.(a) |
3,201 | 402,366 | ||||||
Gitlab Inc.(a)(b) |
2,328 | 149,015 | ||||||
Lightspeed Commerce Inc.(a) |
7,145 | 231,855 | ||||||
Ncino Inc. |
4,024 | 184,420 | ||||||
Paylocity Holding Corp.(a) |
1,906 | 388,786 | ||||||
|
|
|||||||
2,440,497 | ||||||||
Specialty Retail — 1.5% | ||||||||
Leslie’s Inc.(a) |
3,153 | 65,677 | ||||||
Vroom Inc.(a) |
17,190 | 137,864 | ||||||
|
|
|||||||
203,541 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.8% |
13,388,733 | |||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 9.3% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.08%(d)(e)(f) |
1,231,381 | 1,231,750 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(d)(e) |
20,000 | 20,000 | ||||||
|
|
|||||||
1,251,750 | ||||||||
|
|
|||||||
Total
Short-Term Investments — 9.3% |
1,251,750 | |||||||
|
|
|||||||
Total
Investments in Securities — 109.1% |
14,640,483 | |||||||
Other Assets, Less Liabilities — (9.1)% |
(1,221,632 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 13,418,851 | ||||||
|
|
(a) |
Non-income producing security. |
24 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) (continued) January 31, 2022 |
BlackRock Future Innovators ETF |
(b) |
All or a portion of this security is on loan. |
(c) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
(f) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 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 07/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 01/31/22 |
Shares Held at 01/31/22 |
Income |
Capital Gain |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 3,154,417 | $ | — | $ | (1,922,394 | )(a) | $ | (273 | ) | $ | — | $ | 1,231,750 | 1,231,381 | $ | 1,396 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
50,000 | — | (30,000 | )(a) | — | — | 20,000 | 20,000 | 1 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (273 | ) | $ | — | $ | 1,251,750 | $ | 1,397 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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. |
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 |
$ | 12,898,216 | $ | 490,517 | $ | — | $ | 13,388,733 | ||||||||
Common Stocks |
1,251,750 | — | — | 1,251,750 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Money Market Funds |
$ | 14,149,966 | $ | 490,517 | $ | — | $ | 14,640,483 | ||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
S C H E D U L E O F I N V E S T M E N T S |
25 |
Schedule of Investments (unaudited) January 31, 2022 |
BlackRock Future Tech ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Automobiles — 3.2% | ||||||||
Arrival SA(a) |
5,606 | $ | 21,920 | |||||
Tesla Inc.(a) |
513 | 480,537 | ||||||
|
|
|||||||
502,457 | ||||||||
Capital Markets — 0.3% | ||||||||
Coinbase Global Inc., Class A(a)(b) |
227 | 43,164 | ||||||
|
|
|||||||
Consumer Finance — 0.6% | ||||||||
Kaspi.KZ JSC(c) |
1,149 | 98,294 | ||||||
|
|
|||||||
Diversified Consumer Services — 0.3% | ||||||||
Udemy Inc.(a) |
3,015 | 48,843 | ||||||
|
|
|||||||
Electrical Equipment — 0.5% | ||||||||
Fluence Energy Inc.(a) |
3,782 | 70,723 | ||||||
|
|
|||||||
Electronic Equipment, Instruments & Components — 4.0% | ||||||||
Cognex Corp. |
1,877 | 124,745 | ||||||
GoerTek Inc., Class A |
17,927 | 135,064 | ||||||
II-VI Inc.(a) |
1,604 | 101,694 | ||||||
Samsung SDI Co. Ltd. |
534 | 265,015 | ||||||
|
|
|||||||
626,518 | ||||||||
Entertainment — 2.2% | ||||||||
HYBE Co. Ltd.(a) |
370 | 74,908 | ||||||
Roku Inc., Class A(a)(b) |
721 | 118,280 | ||||||
Take-Two Interactive Software Inc.(a)(b) |
940 | 153,540 | ||||||
|
|
|||||||
346,728 | ||||||||
Health Care Providers & Services — 0.5% | ||||||||
agilon health Inc.(a) |
4,634 | 76,832 | ||||||
|
|
|||||||
Health Care Technology — 0.7% | ||||||||
Definitive Healthcare Corp.(a) |
2,792 | 61,089 | ||||||
Doximity Inc., Class A(a) |
1,131 | 51,540 | ||||||
|
|
|||||||
112,629 | ||||||||
Interactive Media & Services — 5.1% | ||||||||
Acast AB(a)(b) |
16,979 | 33,831 | ||||||
Bumble Inc., Class A(a)(b) |
1,947 | 57,456 | ||||||
Eventbrite Inc., Class A(a) |
6,317 | 90,523 | ||||||
Kakao Corp.(a) |
3,448 | 249,055 | ||||||
Snap Inc., Class A, NVS(a) |
4,599 | 149,651 | ||||||
ZoomInfo Technologies Inc.(a) |
4,027 | 212,867 | ||||||
|
|
|||||||
793,383 | ||||||||
Internet & Direct Marketing Retail — 2.9% | ||||||||
Cazoo Group Ltd.(a)(b) |
16,506 | 78,239 | ||||||
Delivery Hero SE(a)(d) |
1,379 | 106,445 | ||||||
Farfetch Ltd., Class A(a)(b) |
4,666 | 101,299 | ||||||
MercadoLibre Inc.(a)(b) |
140 | 158,488 | ||||||
|
|
|||||||
444,471 | ||||||||
IT Services — 15.8% | ||||||||
Adyen NV(a)(d) |
74 | 150,582 | ||||||
Affirm Holdings Inc.(a) |
1,380 | 88,416 | ||||||
Block Inc.(a) |
1,429 | 174,752 | ||||||
Cloudflare Inc., Class A(a) |
1,741 | 167,832 | ||||||
Dlocal Ltd./Uruguay(a) |
2,727 | 81,592 | ||||||
Endava PLC, ADR(a)(b) |
2,096 | 254,916 | ||||||
Global Payments Inc. |
798 | 119,604 | ||||||
GMO Payment Gateway Inc. |
1,300 | 114,077 | ||||||
Grid Dynamics Holdings Inc.(a)(b) |
6,273 | 167,176 | ||||||
Kakao Pay Corp.(a) |
777 | 81,213 | ||||||
Locaweb Servicos de Internet SA(a)(d) |
55,712 | 101,770 |
Security | Shares | Value | ||||||
IT Services (continued) | ||||||||
MongoDB Inc.(a) |
644 | $ | 260,891 | |||||
Okta Inc.(a)(b) |
1,046 | 206,993 | ||||||
Paymentus Holdings Inc., Class A(a)(b) |
3,004 | 78,945 | ||||||
Shift4 Payments Inc., Class A(a)(b) |
3,771 | 198,807 | ||||||
Twilio Inc., Class A(a)(b) |
949 | 195,608 | ||||||
|
|
|||||||
2,443,174 | ||||||||
Professional Services — 2.8% | ||||||||
CoStar Group Inc.(a) |
1,659 | 116,396 | ||||||
Legalzoomcom Inc.(a) |
5,290 | 84,005 | ||||||
Planet Labs PBC |
8,004 | 48,824 | ||||||
TransUnion |
1,826 | 188,297 | ||||||
|
|
|||||||
437,522 | ||||||||
Road & Rail — 0.9% | ||||||||
Lyft Inc., Class A(a) |
3,417 | 131,623 | ||||||
|
|
|||||||
Semiconductors & Semiconductor Equipment — 31.1% | ||||||||
Alphawave IP Group PLC(a) |
26,049 | 56,579 | ||||||
Ambarella Inc.(a) |
1,463 | 205,039 | ||||||
Andes Technology Corp. |
8,000 | 123,897 | ||||||
ASM International NV |
673 | 231,230 | ||||||
BE Semiconductor Industries NV |
2,778 | 232,931 | ||||||
Credo Technology Group Holdings |
6,980 | 84,598 | ||||||
Enphase Energy Inc.(a) |
522 | 73,325 | ||||||
Entegris Inc. |
2,235 | 267,842 | ||||||
KLA Corp. |
498 | 193,857 | ||||||
Lasertec Corp. |
1,600 | 358,940 | ||||||
Lattice Semiconductor Corp.(a) |
4,490 | 247,938 | ||||||
MACOM Technology Solutions Holdings Inc., Class H(a) |
3,026 | 185,221 | ||||||
Marvell Technology Inc. |
6,873 | 490,732 | ||||||
Monolithic Power Systems Inc. |
602 | 242,564 | ||||||
Nordic Semiconductor ASA(a) |
6,652 | 197,098 | ||||||
ON Semiconductor Corp.(a) |
5,606 | 330,754 | ||||||
Silergy Corp. |
3,000 | 405,493 | ||||||
SkyWater Technology Inc.(a) |
1,928 | 19,338 | ||||||
SOITEC(a) |
1,204 | 219,812 | ||||||
Tower Semiconductor Ltd.(a) |
4,393 | 150,900 | ||||||
Ultra Clean Holdings Inc.(a)(b) |
5,121 | 258,201 | ||||||
Wolfspeed Inc.(a) |
2,626 | 247,474 | ||||||
|
|
|||||||
4,823,763 | ||||||||
Software — 24.9% | ||||||||
Altium Ltd. |
7,295 | 186,490 | ||||||
AppLovin Corp., Class A(a)(b) |
2,701 | 173,998 | ||||||
Atlassian Corp. PLC, Class A(a) |
817 | 264,986 | ||||||
Avalara Inc.(a) |
1,292 | 141,629 | ||||||
AvidXchange Holdings Inc.(a) |
3,781 | 39,171 | ||||||
Bill.com Holdings Inc.(a) |
565 | 106,339 | ||||||
Confluent Inc., Class A(a) |
1,878 | 122,802 | ||||||
Coupa Software Inc.(a) |
687 | 92,244 | ||||||
Crowdstrike Holdings Inc., Class A(a) |
1,024 | 184,975 | ||||||
CS Disco Inc.(a)(b) |
3,575 | 122,694 | ||||||
Elastic NV(a) |
1,313 | 122,437 | ||||||
EngageSmart Inc.(a) |
2,094 | 45,775 | ||||||
Expensify Inc.(a) |
2,388 | 69,849 | ||||||
Freee KK(a) |
2,400 | 94,877 | ||||||
Gitlab Inc.(a)(b) |
421 | 26,948 | ||||||
Glodon Co. Ltd., Class A |
11,871 | 115,504 | ||||||
HashiCorp Inc.(a) |
890 | 59,087 | ||||||
Latch Inc.(a) |
11,491 | 73,657 | ||||||
Lightspeed Commerce Inc.(a) |
4,827 | 156,679 |
26 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) (continued) January 31, 2022 |
BlackRock Future Tech ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
|
||||||||
Software (continued) | ||||||||
Procore Technologies Inc.(a) |
795 | $ | 49,735 | |||||
Rakus Co. Ltd. |
8,700 | 175,258 | ||||||
Samsara Inc.(a)(b) |
4,014 | 72,653 | ||||||
SiteMinder Ltd.(a) |
67,732 | 282,072 | ||||||
Synopsys Inc.(a) |
869 | 269,825 | ||||||
Trade Desk Inc. (The), Class A(a) |
2,076 | 144,365 | ||||||
Unity Software Inc.(a)(b) |
1,863 | 195,894 | ||||||
UserTesting Inc.(a) |
9,074 | 52,992 | ||||||
Xero Ltd.(a) |
2,026 | 164,117 | ||||||
Zscaler Inc.(a) |
956 | 245,797 | ||||||
|
|
|||||||
3,852,849 | ||||||||
Technology Hardware, Storage & Peripherals — 1.1% | ||||||||
Pure Storage Inc., Class A(a) |
6,214 | 164,609 | ||||||
|
|
|||||||
Total
Common Stocks — 96.9% |
15,017,582 | |||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 16.4% |
||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.08%(e)(f)(g) |
2,068,290 | 2,068,911 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(e)(f) |
470,000 | 470,000 | ||||||
|
|
|||||||
2,538,911 | ||||||||
|
|
|||||||
Total
Short-Term Investments — 16.4% |
2,538,911 | |||||||
|
|
|||||||
Total
Investments in Securities — 113.3% |
17,556,493 | |||||||
Other Assets, Less Liabilities — (13.3)% |
(2,064,983 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 15,491,510 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(d) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(e) |
Affiliate of the Fund. |
(f) |
Annualized 7-day yield as of period end. |
(g) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 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 07/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 01/31/22 |
Shares Held at 01/31/22 |
Income |
Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 2,980,120 | $ | — | $ | (910,925 | )(a) | $ | (284 | ) | $ | — | $ | 2,068,911 | 2,068,290 | $ | 13,030 | (b) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
870,000 | — | (400,000 | )(a) | — | — | 470,000 | 470,000 | 18 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (284 | ) | $ | — | $ | 2,538,911 | $ | 13,048 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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. |
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 (unaudited) (continued) January 31, 2022 |
BlackRock Future Tech ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
Common Stocks |
$ | 11,318,495 | $ | 3,699,087 | $ | — | $ | 15,017,582 | ||||||||
Money Market Funds |
2,538,911 | — | — | 2,538,911 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 13,857,406 | $ | 3,699,087 | $ | — | $ | 17,556,493 | |||||||||
|
|
|
|
|
|
|
|
See notes to financial statements.
28 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) January 31, 2022 |
BlackRock Future U.S. Themes ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Air Freight & Logistics — 0.1% | ||||||||
United Parcel Service Inc., Class B |
25 | $ | 5,055 | |||||
|
|
|||||||
Auto Components — 0.2% | ||||||||
Aptiv PLC(a) |
55 | 7,512 | ||||||
|
|
|||||||
Automobiles — 0.5% | ||||||||
Ford Motor Co. |
1,079 | 21,904 | ||||||
|
|
|||||||
Banks — 2.6% | ||||||||
First Republic Bank/CA |
25 | 4,340 | ||||||
JPMorgan Chase & Co. |
764 | 113,530 | ||||||
PNC Financial Services Group Inc. (The) |
15 | 3,090 | ||||||
Truist Financial Corp. |
45 | 2,827 | ||||||
|
|
|||||||
123,787 | ||||||||
Building Products — 0.7% | ||||||||
Builders FirstSource Inc.(a) |
140 | 9,519 | ||||||
Fortune Brands Home & Security Inc. |
35 | 3,296 | ||||||
Johnson Controls International PLC |
225 | 16,351 | ||||||
Owens Corning |
35 | 3,104 | ||||||
|
|
|||||||
32,270 | ||||||||
Capital Markets — 9.8% | ||||||||
Affiliated Managers Group Inc. |
235 | 34,359 | ||||||
Ameriprise Financial Inc. |
45 | 13,694 | ||||||
Ares Management Corp., Class A |
330 | 26,308 | ||||||
Bank of New York Mellon Corp. (The) |
95 | 5,630 | ||||||
Blackstone Inc., NVS |
1,120 | 147,807 | ||||||
Charles Schwab Corp. (The) |
760 | 66,652 | ||||||
Goldman Sachs Group Inc. (The) |
30 | 10,640 | ||||||
Houlihan Lokey Inc. |
15 | 1,594 | ||||||
Intercontinental Exchange Inc. |
600 | 75,996 | ||||||
KKR & Co. Inc. |
369 | 26,258 | ||||||
Moody’s Corp. |
10 | 3,430 | ||||||
Morgan Stanley |
180 | 18,457 | ||||||
Raymond James Financial Inc. |
130 | 13,763 | ||||||
Stifel Financial Corp. |
240 | 17,976 | ||||||
T Rowe Price Group Inc. |
40 | 6,177 | ||||||
|
|
|||||||
468,741 | ||||||||
Chemicals — 2.2% | ||||||||
Linde PLC |
115 | 36,648 | ||||||
Olin Corp. |
1,345 | 68,151 | ||||||
|
|
|||||||
104,799 | ||||||||
Commercial Services & Supplies — 1.2% | ||||||||
Copart Inc.(a) |
95 | 12,279 | ||||||
Waste Connections Inc. |
325 | 40,527 | ||||||
Waste Management Inc. |
25 | 3,761 | ||||||
|
|
|||||||
56,567 | ||||||||
Communications Equipment — 0.1% | ||||||||
Arista Networks Inc.(a) |
25 | 3,108 | ||||||
|
|
|||||||
Consumer Finance — 0.3% | ||||||||
American Express Co. |
25 | 4,496 | ||||||
Capital One Financial Corp. |
45 | 6,603 | ||||||
Discover Financial Services |
15 | 1,736 | ||||||
|
|
|||||||
12,835 | ||||||||
Distributors — 0.3% | ||||||||
Genuine Parts Co. |
80 | 10,658 | ||||||
LKQ Corp. |
90 | 4,940 | ||||||
|
|
|||||||
15,598 |
Security | Shares | Value | ||||||
Diversified Financial Services — 3.6% | ||||||||
Berkshire Hathaway Inc., Class B(a) |
546 | $ | 170,909 | |||||
|
|
|||||||
Electronic Equipment, Instruments & Components — 4.6% | ||||||||
Amphenol Corp., Class A |
1,050 | 83,570 | ||||||
Arrow Electronics Inc.(a) |
440 | 54,560 | ||||||
CDW Corp./DE |
5 | 945 | ||||||
Jabil Inc. |
515 | 31,667 | ||||||
Keysight Technologies Inc.(a) |
65 | 10,973 | ||||||
TD SYNNEX Corp. |
60 | 6,274 | ||||||
TE Connectivity Ltd. |
210 | 30,032 | ||||||
Trimble Inc.(a) |
60 | 4,330 | ||||||
|
|
|||||||
222,351 | ||||||||
Health Care Providers & Services — 1.7% | ||||||||
HCA Healthcare Inc. |
35 | 8,402 | ||||||
UnitedHealth Group Inc. |
155 | 73,248 | ||||||
|
|
|||||||
81,650 | ||||||||
Hotels, Restaurants & Leisure — 1.5% | ||||||||
Choice Hotels International Inc. |
20 | 2,868 | ||||||
McDonald’s Corp. |
235 | 60,971 | ||||||
Starbucks Corp. |
10 | 983 | ||||||
Wyndham Hotels & Resorts Inc. |
40 | 3,358 | ||||||
Yum! Brands Inc. |
30 | 3,755 | ||||||
|
|
|||||||
71,935 | ||||||||
Household Durables — 0.6% | ||||||||
DR Horton Inc. |
26 | 2,320 | ||||||
Toll Brothers Inc. |
426 | 25,121 | ||||||
|
|
|||||||
27,441 | ||||||||
Insurance — 0.3% | ||||||||
American Financial Group Inc./OH |
42 | 5,472 | ||||||
Loews Corp. |
30 | 1,790 | ||||||
Marsh & McLennan Companies Inc. |
55 | 8,450 | ||||||
|
|
|||||||
15,712 | ||||||||
Interactive Media & Services — 11.7% | ||||||||
Alphabet Inc., Class A(a) |
89 | 240,840 | ||||||
Alphabet Inc., Class C, NVS(a) |
80 | 217,118 | ||||||
Meta Platforms Inc, Class A(a) |
325 | 101,809 | ||||||
|
|
|||||||
559,767 | ||||||||
Internet & Direct Marketing Retail — 2.8% | ||||||||
Amazon.com Inc.(a) |
45 | 134,616 | ||||||
|
|
|||||||
IT Services — 5.6% | ||||||||
Accenture PLC, Class A |
475 | 167,950 | ||||||
Automatic Data Processing Inc. |
60 | 12,370 | ||||||
Broadridge Financial Solutions Inc. |
10 | 1,592 | ||||||
Cognizant Technology Solutions Corp., Class A |
495 | 42,283 | ||||||
Genpact Ltd. |
530 | 26,368 | ||||||
Paychex Inc. |
135 | 15,898 | ||||||
|
|
|||||||
266,461 | ||||||||
Machinery — 0.8% | ||||||||
Dover Corp. |
40 | 6,797 | ||||||
Graco Inc. |
221 | 16,036 | ||||||
Ingersoll Rand Inc. |
35 | 1,967 | ||||||
ITT Inc. |
140 | 12,869 | ||||||
Westinghouse Air Brake Technologies Corp. |
17 | 1,511 | ||||||
|
|
|||||||
39,180 | ||||||||
Metals & Mining — 0.1% | ||||||||
Reliance Steel & Aluminum Co. |
40 | 6,115 | ||||||
|
|
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 (unaudited) (continued) January 31, 2022 |
BlackRock Future U.S. Themes ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Multiline Retail — 2.3% | ||||||||
Dillard’s Inc., Class A |
328 | $ | 83,220 | |||||
Target Corp. |
125 | 27,554 | ||||||
|
|
|||||||
110,774 | ||||||||
Oil, Gas & Consumable Fuels — 4.5% | ||||||||
Civitas Resources Inc. |
36 | 1,962 | ||||||
ConocoPhillips |
159 | 14,091 | ||||||
Continental Resources Inc./OK |
293 | 15,218 | ||||||
Devon Energy Corp. |
871 | 44,046 | ||||||
EOG Resources Inc. |
388 | 43,254 | ||||||
Matador Resources Co. |
537 | 24,041 | ||||||
Ovintiv Inc. |
1,127 | 43,728 | ||||||
PDC Energy Inc. |
434 | 25,723 | ||||||
Pioneer Natural Resources Co. |
13 | 2,846 | ||||||
|
|
|||||||
214,909 | ||||||||
Pharmaceuticals — 0.0% | ||||||||
Zoetis Inc. |
10 | 1,998 | ||||||
|
|
|||||||
Professional Services — 0.3% | ||||||||
ASGN Inc.(a) |
50 | 5,744 | ||||||
IHS Markit Ltd. |
50 | 5,839 | ||||||
Robert Half International Inc. |
30 | 3,398 | ||||||
|
|
|||||||
14,981 | ||||||||
Road & Rail — 1.7% | ||||||||
Avis Budget Group Inc.(a) |
210 | 36,998 | ||||||
Union Pacific Corp. |
180 | 44,019 | ||||||
|
|
|||||||
81,017 | ||||||||
Semiconductors & Semiconductor Equipment — 11.4% | ||||||||
Analog Devices Inc. |
176 | 28,859 | ||||||
Applied Materials Inc. |
174 | 24,043 | ||||||
Broadcom Inc. |
115 | 67,376 | ||||||
Intel Corp. |
674 | 32,905 | ||||||
KLA Corp. |
10 | 3,893 | ||||||
Lattice Semiconductor Corp.(a) |
80 | 4,418 | ||||||
Microchip Technology Inc. |
310 | 24,019 | ||||||
Micron Technology Inc. |
600 | 49,362 | ||||||
NVIDIA Corp. |
45 | 11,019 | ||||||
NXP Semiconductors NV |
40 | 8,218 | ||||||
Qorvo Inc.(a) |
95 | 13,041 | ||||||
QUALCOMM Inc. |
745 | 130,941 | ||||||
Semtech Corp.(a) |
60 | 4,266 | ||||||
Skyworks Solutions Inc. |
160 | 23,443 | ||||||
Synaptics Inc.(a) |
185 | 38,915 | ||||||
Texas Instruments Inc. |
446 | 80,052 | ||||||
|
|
|||||||
544,770 | ||||||||
Software — 13.2% | ||||||||
Adobe Inc.(a) |
15 | 8,015 |
Security | Shares | Value | ||||||
Software (continued) |
||||||||
Autodesk Inc.(a) |
10 | $ | 2,498 | |||||
Cadence Design Systems Inc.(a) |
55 | 8,368 | ||||||
Intuit Inc. |
10 | 5,552 | ||||||
Microsoft Corp. |
1,375 | 427,597 | ||||||
Oracle Corp. |
410 | 33,276 | ||||||
SS&C Technologies Holdings Inc. |
1,540 | 123,000 | ||||||
Synopsys Inc.(a) |
75 | 23,287 | ||||||
Tyler Technologies Inc.(a) |
5 | 2,369 | ||||||
|
|
|||||||
633,962 | ||||||||
Specialty Retail — 3.7% | ||||||||
Bath & Body Works Inc. |
158 | 8,859 | ||||||
Home Depot Inc. (The) |
175 | 64,221 | ||||||
Lowe’s Companies Inc. |
160 | 37,976 | ||||||
Ross Stores Inc. |
20 | 1,955 | ||||||
Signet Jewelers Ltd. |
58 | 4,996 | ||||||
TJX Companies Inc. (The) |
855 | 61,534 | ||||||
|
|
|||||||
179,541 | ||||||||
Technology Hardware, Storage & Peripherals — 8.5% | ||||||||
Apple Inc. |
2,320 | 405,490 | ||||||
|
|
|||||||
Textiles, Apparel & Luxury Goods — 1.3% | ||||||||
Nike Inc., Class B |
430 | 63,670 | ||||||
|
|
|||||||
Trading Companies & Distributors — 0.5% | ||||||||
Fastenal Co. |
170 | 9,636 | ||||||
United Rentals Inc.(a) |
40 | 12,805 | ||||||
WW Grainger Inc. |
5 | 2,475 | ||||||
|
|
|||||||
24,916 | ||||||||
|
|
|||||||
Total
Common Stocks — 98.7% |
4,724,341 | |||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 1.1% |
||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(b)(c) |
50,000 | 50,000 | ||||||
|
|
|||||||
Total
Short-Term Investments — 1.1% |
|
50,000 | ||||||
|
|
|||||||
Total
Investments in Securities — 99.8% |
|
4,774,341 | ||||||
Other Assets, Less Liabilities — 0.2% |
|
11,902 | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 4,786,243 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
Affiliate of the Fund. |
(c) |
Annualized 7-day yield as of period end. |
30 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) (continued) January 31, 2022 |
BlackRock Future U.S. Themes ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the period ended January 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 12/14/21 |
(a) |
|
Purchases at Cost |
|
|
Proceeds from Sales |
|
|
Net Realized Gain (Loss) |
|
|
Change in Unrealized Appreciation (Depreciation) |
|
|
Value at 01/31/22 |
|
|
Shares Held at 01/31/22 |
|
Income |
|
Capital Gain Distributions from Underlying Funds |
| |||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
$ | — | $50,000 | (b) | $ | — | $ | — | $ | — | $ | 50,000 | 50,000 | $ | — | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Represents net amount purchased (sold). |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description |
Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long
Contracts |
2 | 03/18/22 | $ | 45 | $ | (1,606 | ) | |||||||||
|
|
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 |
||||
|
||||
Liabilities — Derivative Financial Instruments |
||||
Futures
contracts |
$ | 1,606 | ||
|
|
(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 January 31, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:
|
||||
Equity Contracts |
||||
|
||||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Futures contracts |
$ | (1,606 | ) | |
|
|
|||
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 45,043 |
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 |
31 |
Schedule of Investments (unaudited) (continued) January 31, 2022 |
BlackRock Future U.S. Themes 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 |
||||||||||||||||
Common Stocks |
$ | 4,724,341 | $ | — | $ | — | $ | 4,724,341 | ||||||||
Money Market Funds |
50,000 | — | — | 50,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 4,774,341 | $ | — | $ | — | $ | 4,774,341 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (1,606 | ) | $ | — | $ | — | $ | (1,606 | ) | ||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
32 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) January 31, 2022 |
BlackRock U.S. Carbon Transition Readiness ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Aerospace & Defense — 0.0% |
||||||||
Raytheon Technologies Corp. |
4,868 | $ | 439,045 | |||||
|
|
|||||||
Air Freight & Logistics — 1.0% |
||||||||
CH Robinson Worldwide Inc. |
65,718 | 6,877,389 | ||||||
Expeditors International of Washington Inc. |
31,642 | 3,622,376 | ||||||
FedEx Corp. |
9,288 | 2,283,547 | ||||||
United Parcel Service Inc., Class B |
11,952 | 2,416,814 | ||||||
|
|
|||||||
15,200,126 | ||||||||
Airlines — 0.3% | ||||||||
Alaska Air Group Inc.(a) |
77,383 | 4,235,945 | ||||||
|
|
|||||||
Auto Components — 0.2% |
||||||||
Aptiv PLC(a) |
24,340 | 3,324,357 | ||||||
|
|
|||||||
Automobiles — 2.3% |
||||||||
Ford Motor Co. |
246,357 | 5,001,047 | ||||||
General Motors Co.(a) |
59,505 | 3,137,699 | ||||||
Tesla Inc.(a) |
29,780 | 27,895,521 | ||||||
|
|
|||||||
36,034,267 | ||||||||
Banks — 4.1% | ||||||||
Bank of Hawaii Corp. |
12,170 | 1,047,472 | ||||||
Citigroup Inc. |
58,416 | 3,804,050 | ||||||
Citizens Financial Group Inc. |
40,161 | 2,067,087 | ||||||
Comerica Inc. |
2,434 | 225,826 | ||||||
Commerce Bancshares Inc. |
9,979 | 687,653 | ||||||
Fifth Third Bancorp |
56,332 | 2,514,097 | ||||||
FNB Corp. |
77,888 | 1,006,313 | ||||||
Huntington Bancshares Inc./OH |
253,136 | 3,812,228 | ||||||
JPMorgan Chase & Co. |
136,468 | 20,279,145 | ||||||
KeyCorp |
87,624 | 2,195,857 | ||||||
PacWest Bancorp |
6,085 | 282,527 | ||||||
PNC Financial Services Group Inc. (The) |
22,404 | 4,615,000 | ||||||
Truist Financial Corp. |
102,228 | 6,421,963 | ||||||
U.S. Bancorp |
113,833 | 6,623,942 | ||||||
Wells Fargo & Co. |
130,929 | 7,043,980 | ||||||
Zions Bancorp. NA |
8,519 | 577,759 | ||||||
|
|
|||||||
63,204,899 | ||||||||
Beverages — 2.9% | ||||||||
Coca-Cola Co. (The) |
307,901 | 18,785,040 | ||||||
Molson Coors Beverage Co., Class B |
76,209 | 3,632,121 | ||||||
PepsiCo Inc. |
127,785 | 22,173,253 | ||||||
|
|
|||||||
44,590,414 | ||||||||
Biotechnology — 2.1% | ||||||||
AbbVie Inc. |
102,228 | 13,993,991 | ||||||
Amgen Inc. |
36,510 | 8,292,881 | ||||||
Biogen Inc.(a) |
14,604 | 3,300,504 | ||||||
Gilead Sciences Inc. |
6,085 | 417,918 | ||||||
Incyte Corp.(a) |
13,532 | 1,005,834 | ||||||
Iovance Biotherapeutics Inc.(a) |
18,255 | 303,946 | ||||||
Moderna Inc.(a) |
12,956 | 2,193,839 | ||||||
Novavax Inc.(a)(b) |
6,130 | 574,381 | ||||||
Vertex Pharmaceuticals Inc.(a) |
7,978 | 1,939,053 | ||||||
|
|
|||||||
32,022,347 | ||||||||
Building Products — 2.1% | ||||||||
A O Smith Corp. |
76,671 | 5,859,198 | ||||||
Allegion PLC |
6,085 | 746,812 | ||||||
Builders FirstSource Inc.(a) |
49,897 | 3,392,497 | ||||||
Carrier Global Corp. |
6,085 | 290,133 |
Security | Shares | Value | ||||||
Building Products (continued) |
||||||||
Johnson Controls International PLC |
222,853 | $ | 16,194,727 | |||||
Trane Technologies PLC |
31,187 | 5,398,470 | ||||||
|
|
|||||||
31,881,837 | ||||||||
Capital Markets — 3.6% | ||||||||
Ameriprise Financial Inc |
7,302 | 2,222,072 | ||||||
Bank of New York Mellon Corp. (The) |
19,472 | 1,153,911 | ||||||
BlackRock Inc.(c) |
5,999 | 4,936,817 | ||||||
Blackstone Inc., NVS |
2,434 | 321,215 | ||||||
Carlyle Group Inc. (The) |
29,208 | 1,491,068 | ||||||
Charles Schwab Corp. (The) |
66,935 | 5,870,199 | ||||||
FactSet Research Systems Inc. |
25,557 | 10,782,243 | ||||||
Goldman Sachs Group Inc. (The) |
20,689 | 7,337,974 | ||||||
LPL Financial Holdings Inc |
3,651 | 629,140 | ||||||
MarketAxess Holdings Inc. |
6,085 | 2,096,161 | ||||||
Moody’s Corp. |
18,255 | 6,261,465 | ||||||
Morgan Stanley |
48,288 | 4,951,452 | ||||||
MSCI Inc. |
1,217 | 652,458 | ||||||
Northern Trust Corp. |
6,085 | 709,754 | ||||||
Raymond James Financial Inc. |
3,455 | 365,781 | ||||||
S&P Global Inc. |
10,953 | 4,547,905 | ||||||
State Street Corp. |
3,651 | 345,019 | ||||||
T Rowe Price Group Inc. |
10,953 | 1,691,472 | ||||||
|
|
|||||||
56,366,106 | ||||||||
Chemicals — 1.4% | ||||||||
DuPont de Nemours Inc. |
73,020 | 5,593,332 | ||||||
Ecolab Inc. |
36,510 | 6,916,819 | ||||||
Element Solutions Inc. |
45,029 | 1,010,451 | ||||||
FMC Corp. |
30,028 | 3,314,190 | ||||||
International Flavors & Fragrances Inc. |
5,718 | 754,319 | ||||||
PPG Industries Inc. |
11,716 | 1,830,039 | ||||||
Sherwin-Williams Co. (The) |
8,519 | 2,440,779 | ||||||
|
|
|||||||
21,859,929 | ||||||||
Commercial Services & Supplies — 0.2% | ||||||||
Cintas Corp. |
2,707 | 1,059,872 | ||||||
MSA Safety Inc. |
10,809 | 1,485,157 | ||||||
Waste Management Inc. |
6,085 | 915,427 | ||||||
|
|
|||||||
3,460,456 | ||||||||
Communications Equipment — 1.0% | ||||||||
Cisco Systems Inc. |
242,183 | 13,482,327 | ||||||
Ubiquiti Inc. |
4,868 | 1,411,915 | ||||||
|
|
|||||||
14,894,242 | ||||||||
Construction & Engineering — 0.0% | ||||||||
AECOM |
9,736 | 673,050 | ||||||
|
|
|||||||
Consumer Finance — 0.7% |
||||||||
American Express Co. |
30,278 | 5,444,590 | ||||||
Capital One Financial Corp. |
34,076 | 4,999,971 | ||||||
Upstart Holdings Inc.(a) |
3,086 | 336,405 | ||||||
|
|
|||||||
10,780,966 | ||||||||
Containers & Packaging — 0.6% | ||||||||
Avery Dennison Corp. |
6,085 | 1,249,981 | ||||||
Ball Corp. |
77,888 | 7,562,925 | ||||||
Westrock Co. |
19,472 | 898,827 | ||||||
|
|
|||||||
9,711,733 | ||||||||
Distributors — 1.0% | ||||||||
Genuine Parts Co. |
83,199 | 11,084,603 | ||||||
Pool Corp. |
8,324 | 3,964,305 | ||||||
|
|
|||||||
15,048,908 |
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 (unaudited) (continued) January 31, 2022 |
BlackRock U.S. Carbon Transition Readiness ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Diversified Consumer Services — 0.0% |
||||||||
Bright Horizons Family Solutions Inc.(a) |
1,217 | $ | 156,275 | |||||
|
|
|||||||
Diversified Financial Services — 0.9% |
||||||||
Apollo Global Management Inc. |
41,378 | 2,896,460 | ||||||
Berkshire Hathaway Inc., Class B(a) |
32,859 | 10,285,524 | ||||||
Voya Financial Inc. |
12,160 | 826,394 | ||||||
|
|
|||||||
14,008,378 | ||||||||
Diversified Telecommunication Services — 1.0% | ||||||||
AT&T Inc. |
460,026 | 11,730,663 | ||||||
Verizon Communications Inc. |
57,199 | 3,044,703 | ||||||
|
|
|||||||
14,775,366 | ||||||||
Electric Utilities — 1.6% | ||||||||
Avangrid Inc. |
25,557 | 1,194,023 | ||||||
Eversource Energy |
156,993 | 14,049,303 | ||||||
Exelon Corp. |
48,680 | 2,821,006 | ||||||
NextEra Energy Inc. |
79,764 | 6,231,164 | ||||||
|
|
|||||||
24,295,496 | ||||||||
Electrical Equipment — 0.9% | ||||||||
Acuity Brands Inc. |
18,255 | 3,496,380 | ||||||
Eaton Corp. PLC |
2,434 | 385,619 | ||||||
Generac Holdings Inc.(a) |
4,868 | 1,374,626 | ||||||
Plug Power Inc.(a)(b) |
40,161 | 878,321 | ||||||
Rockwell Automation Inc. |
23,123 | 6,687,634 | ||||||
Sunrun Inc.(a)(b) |
39,834 | 1,032,896 | ||||||
Vertiv Holdings Co. |
8,519 | 177,706 | ||||||
|
|
|||||||
14,033,182 | ||||||||
Electronic Equipment, Instruments & Components — 0.2% | ||||||||
Amphenol Corp., Class A |
14,604 | 1,162,332 | ||||||
Arrow Electronics Inc.(a) |
7,302 | 905,448 | ||||||
Coherent Inc.(a) |
1,052 | 271,921 | ||||||
|
|
|||||||
2,339,701 | ||||||||
Energy Equipment & Services — 0.2% | ||||||||
Baker Hughes Co. |
101,803 | 2,793,474 | ||||||
Schlumberger NV |
6,085 | 237,741 | ||||||
|
|
|||||||
3,031,215 | ||||||||
Entertainment — 1.9% | ||||||||
Activision Blizzard Inc. |
27,991 | 2,211,569 | ||||||
Netflix Inc.(a) |
30,796 | 13,154,203 | ||||||
Roku Inc., Class A(a)(b) |
4,868 | 798,595 | ||||||
Spotify Technology SA(a) |
8,519 | 1,671,939 | ||||||
Walt Disney Co. (The)(a) |
82,813 | 11,839,775 | ||||||
|
|
|||||||
29,676,081 | ||||||||
Equity Real Estate Investment Trusts (REITs) — 3.3% | ||||||||
Boston Properties Inc. |
77,422 | 8,677,458 | ||||||
Brixmor Property Group Inc. |
69,077 | 1,751,793 | ||||||
Equinix Inc. |
8,519 | 6,175,423 | ||||||
Equity Residential |
58,474 | 5,188,398 | ||||||
Essex Property Trust Inc. |
3,651 | 1,213,958 | ||||||
Federal Realty Investment Trust |
36,510 | 4,654,660 | ||||||
Host Hotels & Resorts Inc.(a) |
14,604 | 253,233 | ||||||
Hudson Pacific Properties Inc. |
38,944 | 920,247 | ||||||
Kilroy Realty Corp. |
77,273 | 4,945,472 | ||||||
Kimco Realty Corp. |
62,067 | 1,505,745 | ||||||
Prologis Inc. |
14,604 | 2,290,199 | ||||||
Regency Centers Corp. |
26,774 | 1,921,035 | ||||||
Simon Property Group Inc. |
13,387 | 1,970,566 | ||||||
SL Green Realty Corp. |
19,206 | 1,392,819 | ||||||
UDR Inc.. |
81,637 | 4,640,247 |
Security | Shares | Value | ||||||
Equity Real Estate Investment Trusts (REITs) (continued) |
| |||||||
Ventas Inc. |
27,165 | $ | 1,440,288 | |||||
Welltower Inc. |
2,434 | 210,857 | ||||||
Weyerhaeuser Co. |
33,508 | 1,354,729 | ||||||
|
|
|||||||
50,507,127 | ||||||||
Food & Staples Retailing — 1.2% | ||||||||
Costco Wholesale Corp. |
9,751 | 4,925,523 | ||||||
Kroger Co. (The) |
58,416 | 2,546,353 | ||||||
Walgreens Boots Alliance Inc. |
6,817 | 339,214 | ||||||
Walmart Inc. |
81,686 | 11,420,520 | ||||||
|
|
|||||||
19,231,610 | ||||||||
Food Products — 0.1% | ||||||||
General Mills Inc. |
8,519 | 585,085 | ||||||
Hain Celestial Group Inc. (The)(a)(b) |
10,953 | 400,113 | ||||||
|
|
|||||||
985,198 | ||||||||
Gas Utilities — 0.4% | ||||||||
UGI Corp. |
140,095 | 6,353,308 | ||||||
|
|
|||||||
Health Care Equipment & Supplies — 2.2% |
||||||||
Abbott Laboratories |
23,123 | 2,947,257 | ||||||
Boston Scientific Corp.(a) |
189,852 | 8,144,651 | ||||||
DENTSPLY SIRONA Inc. |
124,134 | 6,631,238 | ||||||
Edwards Lifesciences Corp.(a) |
47,463 | 5,182,960 | ||||||
ICU Medical Inc.(a) |
14,794 | 3,156,448 | ||||||
Medtronic PLC |
60,553 | 6,266,630 | ||||||
Novocure Ltd.(a) |
2,434 | 167,094 | ||||||
ResMed Inc. |
9,736 | 2,225,650 | ||||||
|
|
|||||||
34,721,928 | ||||||||
Health Care Providers & Services — 3.3% | ||||||||
AmerisourceBergen Corp. |
15,821 | 2,154,820 | ||||||
Anthem Inc. |
8,037 | 3,544,237 | ||||||
Centene Corp.(a) |
2,434 | 189,268 | ||||||
CVS Health Corp. |
106,603 | 11,354,286 | ||||||
Humana Inc. |
14,604 | 5,732,070 | ||||||
Molina Healthcare Inc.(a) |
1,217 | 353,514 | ||||||
Quest Diagnostics Inc. |
8,519 | 1,150,235 | ||||||
UnitedHealth Group Inc. |
54,765 | 25,880,296 | ||||||
|
|
|||||||
50,358,726 | ||||||||
Health Care Technology — 0.1% | ||||||||
Teladoc Health Inc.(a)(b) |
8,348 | 640,375 | ||||||
Veeva Systems Inc., Class A(a) |
3,651 | 863,608 | ||||||
|
|
|||||||
1,503,983 | ||||||||
Hotels, Restaurants & Leisure — 2.3% | ||||||||
Booking Holdings Inc.(a) |
6,265 | 15,387,654 | ||||||
Carnival Corp.(a) |
58,416 | 1,157,221 | ||||||
McDonald’s Corp. |
34,899 | 9,054,546 | ||||||
Norwegian Cruise Line Holdings Ltd.(a) |
177,682 | 3,701,116 | ||||||
Royal Caribbean Cruises Ltd.(a) |
18,255 | 1,420,422 | ||||||
Six Flags Entertainment Corp.(a) |
31,642 | 1,249,543 | ||||||
Travel + Leisure Co. |
35,785 | 2,032,588 | ||||||
Yum! Brands Inc. |
15,449 | 1,933,751 | ||||||
|
|
|||||||
35,936,841 | ||||||||
Household Durables — 0.4% | ||||||||
Leggett & Platt Inc. |
67,078 | 2,673,058 | ||||||
Newell Brands Inc. |
48,680 | 1,129,863 | ||||||
Whirlpool Corp. |
9,736 | 2,046,410 | ||||||
|
|
|||||||
5,849,331 | ||||||||
Household Products — 0.5% | ||||||||
Colgate-Palmolive Co. |
41,062 | 3,385,562 |
34 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) (continued) January 31, 2022 |
BlackRock U.S. Carbon Transition Readiness ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Household Products (continued) |
||||||||
Procter & Gamble Co. (The) |
25,557 | $ | 4,100,621 | |||||
Spectrum Brands Holdings Inc. |
4,640 | 414,723 | ||||||
|
|
|||||||
7,900,906 | ||||||||
Independent Power and Renewable Electricity Producers — 0.0% | ||||||||
Brookfield Renewable Corp., Class A |
21,721 | 743,293 | ||||||
|
|
|||||||
Industrial Conglomerates — 0.9% |
||||||||
3M Co. |
49,897 | 8,283,900 | ||||||
General Electric Co. |
55,609 | 5,253,938 | ||||||
|
|
|||||||
13,537,838 | ||||||||
Insurance — 2.0% | ||||||||
Aflac Inc. |
30,425 | 1,911,298 | ||||||
Allstate Corp. (The) |
26,774 | 3,230,819 | ||||||
Aon PLC, Class A |
26,774 | 7,401,405 | ||||||
Assurant Inc. |
1,217 | 185,605 | ||||||
Assured Guaranty Ltd. |
13,387 | 713,393 | ||||||
Cincinnati Financial Corp. |
3,651 | 430,197 | ||||||
Lemonade Inc.(a)(b) |
9,992 | 319,045 | ||||||
Lincoln National Corp. |
13,387 | 936,822 | ||||||
Marsh & McLennan Companies Inc. |
10,953 | 1,682,819 | ||||||
Principal Financial Group Inc. |
62,067 | 4,534,615 | ||||||
Progressive Corp. (The) |
13,387 | 1,454,631 | ||||||
Prudential Financial Inc. |
49,897 | 5,567,008 | ||||||
W R Berkley Corp. |
20,689 | 1,748,221 | ||||||
Willis Towers Watson PLC |
3,651 | 854,188 | ||||||
|
|
|||||||
30,970,066 | ||||||||
Interactive Media & Services — 6.1% | ||||||||
Alphabet Inc., Class A(a) |
12,170 | 32,932,872 | ||||||
Alphabet Inc., Class C, NVS(a) |
9,680 | 26,271,230 | ||||||
IAC/InterActiveCorp.(a) |
23,123 | 3,157,214 | ||||||
Meta Platforms Inc, Class A(a) |
99,794 | 31,261,468 | ||||||
TripAdvisor Inc.(a) |
43,812 | 1,189,496 | ||||||
|
|
|||||||
94,812,280 | ||||||||
Internet & Direct Marketing Retail — 2.4% | ||||||||
Amazon.com Inc.(a) |
11,299 | 33,800,620 | ||||||
DoorDash Inc., Class A(a) |
4,868 | 552,469 | ||||||
Etsy Inc.(a) |
9,298 | 1,460,530 | ||||||
Qurate Retail Inc., Series A |
156,704 | 1,101,629 | ||||||
|
|
|||||||
36,915,248 | ||||||||
IT Services — 6.0% | ||||||||
Accenture PLC, Class A |
48,680 | 17,212,275 | ||||||
Akamai Technologies Inc.(a) |
4,868 | 557,629 | ||||||
Automatic Data Processing Inc. |
32,859 | 6,774,540 | ||||||
Block Inc.(a) |
3,651 | 446,481 | ||||||
Broadridge Financial Solutions Inc. |
17,038 | 2,712,790 | ||||||
Cloudflare Inc., Class A(a) |
6,085 | 586,594 | ||||||
Euronet Worldwide Inc.(a) |
2,434 | 325,888 | ||||||
FleetCor Technologies Inc.(a) |
2,434 | 579,925 | ||||||
Gartner Inc.(a) |
2,434 | 715,328 | ||||||
Global Payments Inc. |
4,868 | 729,616 | ||||||
Globant SA(a) |
2,434 | 621,108 | ||||||
International Business Machines Corp. |
42,394 | 5,662,567 | ||||||
Mastercard Inc., Class A |
53,548 | 20,689,876 | ||||||
PayPal Holdings Inc.(a) |
47,784 | 8,215,981 | ||||||
Snowflake Inc., Class A(a) |
5,063 | 1,396,882 | ||||||
StoneCo Ltd., Class A(a) |
18,255 | 284,413 | ||||||
Visa Inc., Class A |
99,794 | 22,570,409 | ||||||
Western Union Co. (The) |
86,407 | 1,633,956 | ||||||
WEX Inc.(a)(b) |
1,217 | 195,913 |
Security | Shares | Value | ||||||
IT Services (continued) |
||||||||
Wix.com Ltd.(a) |
4,868 | $ | 639,509 | |||||
|
|
|||||||
92,551,680 | ||||||||
Leisure Products — 0.5% | ||||||||
Hasbro Inc. |
77,888 | 7,203,082 | ||||||
|
|
|||||||
Life Sciences Tools & Services — 1.4% |
||||||||
Agilent Technologies Inc. |
17,038 | 2,373,734 | ||||||
Charles River Laboratories International Inc.(a) |
1,217 | 401,318 | ||||||
Illumina Inc.(a) |
7,875 | 2,746,957 | ||||||
IQVIA Holdings Inc.(a) |
3,651 | 894,130 | ||||||
Mettler-Toledo International Inc.(a) |
2,434 | 3,584,503 | ||||||
QIAGEN NV(a)(b) |
7,302 | 361,376 | ||||||
Thermo Fisher Scientific Inc. |
16,496 | 9,589,125 | ||||||
West Pharmaceutical Services Inc. |
6,085 | 2,392,744 | ||||||
|
|
|||||||
22,343,887 | ||||||||
Machinery — 1.5% | ||||||||
AGCO Corp. |
12,170 | 1,426,324 | ||||||
Caterpillar Inc. |
17,038 | 3,434,179 | ||||||
Cummins Inc. |
14,604 | 3,225,731 | ||||||
Dover Corp. |
7,302 | 1,240,683 | ||||||
Middleby Corp. (The)(a) |
3,651 | 676,165 | ||||||
Pentair PLC |
44,260 | 2,819,362 | ||||||
Xylem Inc./NY |
102,228 | 10,735,985 | ||||||
|
|
|||||||
23,558,429 | ||||||||
Marine — 0.2% | ||||||||
Kirby Corp.(a) |
46,246 | 3,014,314 | ||||||
|
|
|||||||
Media — 0.2% |
||||||||
Comcast Corp., Class A |
21,906 | 1,095,081 | ||||||
New York Times Co. (The), Class A |
9,736 | 389,732 | ||||||
ViacomCBS Inc., Class B, NVS |
46,246 | 1,546,929 | ||||||
|
|
|||||||
3,031,742 | ||||||||
Metals & Mining — 0.4% | ||||||||
Alcoa Corp. |
13,387 | 759,177 | ||||||
Nucor Corp. |
4,868 | 493,615 | ||||||
Royal Gold Inc. |
19,669 | 1,997,387 | ||||||
Southern Copper Corp. |
4,868 | 311,017 | ||||||
Steel Dynamics Inc. |
45,029 | 2,500,010 | ||||||
|
|
|||||||
6,061,206 | ||||||||
Multiline Retail — 0.1% | ||||||||
Nordstrom Inc.(a) |
20,918 | 470,655 | ||||||
Target Corp. |
7,302 | 1,609,580 | ||||||
|
|
|||||||
2,080,235 | ||||||||
Oil, Gas & Consumable Fuels — 2.7% | ||||||||
Antero Midstream Corp. |
52,331 | 520,693 | ||||||
Cheniere Energy Inc. |
8,519 | 953,276 | ||||||
Chevron Corp. |
12,686 | 1,666,052 | ||||||
ConocoPhillips |
88,841 | 7,873,089 | ||||||
Devon Energy Corp. |
24,340 | 1,230,874 | ||||||
DTE Midstream LLC(a) |
14,604 | 755,027 | ||||||
EOG Resources Inc. |
3,651 | 407,014 | ||||||
EQT Corp.(a) |
9,736 | 206,890 | ||||||
Exxon Mobil Corp. |
148,474 | 11,278,085 | ||||||
Hess Corp. |
2,434 | 224,634 | ||||||
Marathon Petroleum Corp. |
21,906 | 1,571,756 | ||||||
New Fortress Energy Inc. |
43,812 | 962,112 | ||||||
ONEOK Inc. |
15,821 | 960,018 | ||||||
Phillips 66 |
9,736 | 825,515 | ||||||
Pioneer Natural Resources Co. |
23,123 | 5,061,394 |
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 (unaudited) (continued) January 31, 2022 |
BlackRock U.S. Carbon Transition Readiness ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Oil, Gas & Consumable Fuels (continued) |
||||||||
Targa Resources Corp. |
7,302 | $ | 431,402 | |||||
Williams Companies Inc. (The) |
254,353 | 7,615,329 | ||||||
|
|
|||||||
42,543,160 | ||||||||
Personal Products — 0.7% | ||||||||
Estee Lauder Companies Inc. (The), Class A |
34,076 | 10,624,556 | ||||||
|
|
|||||||
Pharmaceuticals — 4.1% |
||||||||
Bristol-Myers Squibb Co. |
172,814 | 11,213,901 | ||||||
Catalent Inc.(a) |
3,651 | 379,448 | ||||||
Eli Lilly & Co. |
41,378 | 10,153,747 | ||||||
Johnson & Johnson |
110,278 | 18,999,797 | ||||||
Merck & Co. Inc. |
164,295 | 13,386,757 | ||||||
Nektar Therapeutics(a) |
43,812 | 487,189 | ||||||
Pfizer Inc. |
178,899 | 9,426,188 | ||||||
|
|
|||||||
64,047,027 | ||||||||
Professional Services — 0.9% | ||||||||
CoStar Group Inc.(a) |
9,736 | 683,078 | ||||||
Equifax Inc. |
2,434 | 583,576 | ||||||
IHS Markit Ltd. |
36,510 | 4,264,003 | ||||||
Leidos Holdings Inc. |
18,901 | 1,690,694 | ||||||
Robert Half International Inc. |
35,293 | 3,997,285 | ||||||
Verisk Analytics Inc. |
12,170 | 2,386,902 | ||||||
|
|
|||||||
13,605,538 | ||||||||
Road & Rail — 0.3% | ||||||||
Knight-Swift Transportation Holdings Inc. |
32,859 | 1,859,162 | ||||||
Uber Technologies Inc.(a) |
12,170 | 455,158 | ||||||
Union Pacific Corp. |
3,651 | 892,852 | ||||||
XPO Logistics Inc.(a) |
23,123 | 1,530,049 | ||||||
|
|
|||||||
4,737,221 | ||||||||
Semiconductors & Semiconductor Equipment — 5.6% | ||||||||
Advanced Micro Devices Inc.(a) |
57,199 | 6,534,986 | ||||||
Analog Devices Inc. |
70,586 | 11,573,986 | ||||||
Applied Materials Inc. |
1,217 | 168,165 | ||||||
Broadcom Inc. |
22,451 | 13,153,592 | ||||||
Enphase Energy Inc.(a)(b) |
7,302 | 1,025,712 | ||||||
Entegris Inc. |
4,868 | 583,381 | ||||||
First Solar Inc.(a) |
25,557 | 2,003,158 | ||||||
Intel Corp. |
161,238 | 7,871,639 | ||||||
Marvell Technology Inc. |
36,357 | 2,595,890 | ||||||
Microchip Technology Inc. |
39,134 | 3,032,102 | ||||||
NVIDIA Corp. |
89,493 | 21,913,256 | ||||||
NXP Semiconductors NV |
41,102 | 8,443,995 | ||||||
QUALCOMM Inc. |
1,429 | 251,161 | ||||||
Skyworks Solutions Inc. |
4,411 | 646,300 | ||||||
Texas Instruments Inc. |
25,557 | 4,587,226 | ||||||
Universal Display Corp. |
18,639 | 2,861,273 | ||||||
|
|
|||||||
87,245,822 | ||||||||
Software — 9.1% | ||||||||
Adobe Inc.(a) |
14,604 | 7,802,917 | ||||||
Atlassian Corp. PLC, Class A(a) |
4,868 | 1,578,887 | ||||||
Autodesk Inc.(a) |
7,302 | 1,823,967 | ||||||
Cadence Design Systems Inc.(a) |
19,472 | 2,962,470 | ||||||
Citrix Systems Inc. |
3,651 | 372,183 | ||||||
Dolby Laboratories Inc., Class A |
21,906 | 1,924,442 | ||||||
Fortinet Inc.(a) |
1,217 | 361,741 | ||||||
Intuit Inc. |
9,736 | 5,405,719 | ||||||
Microsoft Corp. |
300,599 | 93,480,277 | ||||||
NortonLifeLock Inc. |
91,275 | 2,374,063 | ||||||
Oracle Corp. |
64,501 | 5,234,901 |
Security | Shares | Value | ||||||
Software (continued) |
||||||||
salesforce.com Inc.(a) |
40,161 | $ | 9,342,653 | |||||
ServiceNow Inc.(a) |
4,868 | 2,851,577 | ||||||
VMware Inc., Class A |
26,774 | 3,439,924 | ||||||
Workday Inc., Class A(a)(b) |
6,085 | 1,539,566 | ||||||
|
|
|||||||
140,495,287 | ||||||||
Specialty Retail — 2.5% | ||||||||
AutoNation Inc.(a) |
30,920 | 3,370,280 | ||||||
Bath & Body Works Inc. |
14,604 | 818,846 | ||||||
Burlington Stores Inc.(a) |
7,302 | 1,730,063 | ||||||
Foot Locker Inc. |
49,897 | 2,229,398 | ||||||
GameStop Corp., Class A(a)(b) |
3,823 | 416,439 | ||||||
Home Depot Inc. (The) |
36,704 | 13,469,634 | ||||||
Lowe’s Companies Inc. |
17,445 | 4,140,571 | ||||||
Ross Stores Inc. |
48,680 | 4,758,470 | ||||||
TJX Companies Inc. (The) |
21,750 | 1,565,348 | ||||||
Tractor Supply Co. |
19,472 | 4,250,932 | ||||||
Ulta Beauty Inc.(a) |
1,217 | 442,672 | ||||||
Williams-Sonoma Inc. |
9,736 | 1,563,017 | ||||||
|
|
|||||||
38,755,670 | ||||||||
Technology Hardware, Storage & Peripherals — 7.0% | ||||||||
Apple Inc. |
519,659 | 90,826,000 | ||||||
Dell Technologies Inc., Class C(a) |
111,964 | 6,360,675 | ||||||
Hewlett Packard Enterprise Co. |
345,825 | 5,647,322 | ||||||
HP Inc. |
53,548 | 1,966,818 | ||||||
NetApp Inc. |
14,604 | 1,263,392 | ||||||
Pure Storage Inc., Class A(a) |
8,691 | 230,225 | ||||||
Western Digital Corp.(a) |
21,906 | 1,133,416 | ||||||
Xerox Holdings Corp. |
26,774 | 565,199 | ||||||
|
|
|||||||
107,993,047 | ||||||||
Textiles, Apparel & Luxury Goods — 0.6% | ||||||||
Lululemon Athletica Inc.(a) |
1,217 | 406,186 | ||||||
Nike Inc., Class B |
39,054 | 5,782,726 | ||||||
VF Corp. |
40,161 | 2,618,899 | ||||||
|
|
|||||||
8,807,811 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.2% |
1,535,071,718 | |||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 0.9% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.08%(c)(d)(e) |
3,387,625 | 3,388,641 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d) |
11,000,000 | 11,000,000 | ||||||
|
|
|||||||
14,388,641 | ||||||||
|
|
|||||||
Total
Short-Term Investments — 0.9% |
|
14,388,641 | ||||||
|
|
|||||||
Total
Investments in Securities — 100.1% |
|
1,549,460,359 | ||||||
Other Assets, Less Liabilities — (0.1)% |
|
(1,490,519 | ) | |||||
|
|
|||||||
Net Assets — 100.0% |
|
$ | 1,547,969,840 | |||||
|
|
(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. |
36 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) (continued) January 31, 2022 |
BlackRock U.S. Carbon Transition Readiness ETF |
(e) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 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 07/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 01/31/22 |
Shares Held at 01/31/22 |
Income |
Capital Gain Distributions from Underlying Funds |
|
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||
|
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 1,051,825 | $ | 2,338,922 | (a) | $ | — | $ | (2,167 | ) | $ | 61 | $ | 3,388,641 | 3,387,625 | $ | 8,183 | (b) | $ | — | |||||||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
17,150,000 | — | (6,150,000 | )(a) | — | — | 11,000,000 | 11,000,000 | 245 | — | ||||||||||||||||||||||||||||||||
BlackRock Inc. |
4,882,167 | 600,885 | (245,081 | ) | 21,143 | (322,297 | ) | 4,936,817 | 5,999 | 48,155 | — | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
$ | 18,976 | $ | (322,236 | ) | $ | 19,325,458 | $ | 56,583 | $ | — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 |
||||||||||||||||
S&P 500 E-Mini Index |
47 | 03/18/22 | $ | 10,585 | $ | (381,520 | ) | |||||||||
|
|
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 |
||||
|
||||
Liabilities — Derivative Financial Instruments |
||||
Futures contracts |
||||
Unrealized depreciation on futures contracts(a) |
$ | 381,520 | ||
|
|
(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 January 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 |
$ | 771,344 | ||
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Futures contracts |
$ | (705,615 | ) | |
|
|
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 (unaudited) (continued) January 31, 2022 |
BlackRock U.S. Carbon Transition Readiness ETF |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 11,063,104 |
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 |
$ | 1,535,071,718 | $ | — | $ | — | $ | 1,535,071,718 | ||||||||
Money Market Funds |
14,388,641 | — | — | 14,388,641 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 1,549,460,359 | $ | — | $ | — | $ | 1,549,460,359 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (381,520 | ) | $ | — | $ | — | $ | (381,520 | ) | ||||||
|
|
|
|
|
|
|
|
(a) |
Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
38 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) January 31, 2022 |
BlackRock U.S. Equity Factor Rotation ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
|
||||||||
Common Stocks |
||||||||
Communication Services — 10.0% |
||||||||
Activision Blizzard Inc. |
1,450 | $ | 114,564 | |||||
Alphabet Inc., Class A(a) |
1,256 | 3,398,824 | ||||||
Alphabet Inc., Class C, NVS(a) |
1,246 | 3,381,607 | ||||||
AMC Entertainment Holdings Inc., Class A(a)(b) |
4,111 | 66,023 | ||||||
AT&T Inc. |
8,260 | 210,630 | ||||||
Cable One Inc. |
4 | 6,179 | ||||||
Charter Communications Inc., Class A(a)(b) |
598 | 354,817 | ||||||
Comcast Corp., Class A |
6,177 | 308,788 | ||||||
Discovery Inc., Class C, NVS(a) |
4 | 109 | ||||||
DISH Network Corp., Class A(a) |
6 | 188 | ||||||
Electronic Arts Inc. |
1,129 | 149,773 | ||||||
Fox Corp., Class A, NVS |
2,320 | 94,215 | ||||||
Fox Corp., Class B |
1,434 | 53,316 | ||||||
IAC/InterActiveCorp.(a) |
2 | 273 | ||||||
Interpublic Group of Companies Inc. (The) |
2,159 | 76,731 | ||||||
Liberty Broadband Corp., Class C, NVS(a) |
141 | 20,926 | ||||||
Liberty Global PLC, Class A(a) |
15 | 407 | ||||||
Liberty Global PLC, Class C, NVS(a) |
15 | 406 | ||||||
Liberty Media Corp.-Liberty Formula One, Class C, NVS(a) |
8 | 482 | ||||||
Liberty Media Corp.-Liberty SiriusXM, Class A(a) |
3 | 139 | ||||||
Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a) |
8 | 372 | ||||||
Live Nation Entertainment Inc.(a) |
107 | 11,717 | ||||||
Lumen Technologies Inc. |
19 | 235 | ||||||
Match Group Inc.(a) |
397 | 44,742 | ||||||
Meta Platforms Inc, Class A(a) |
8,565 | 2,683,072 | ||||||
Netflix Inc.(a) |
1,411 | 602,694 | ||||||
News Corp., Class A, NVS |
17 | 378 | ||||||
Omnicom Group Inc. |
249 | 18,765 | ||||||
Pinterest Inc., Class A(a) |
778 | 22,998 | ||||||
Roku Inc., Class A(a) |
178 | 29,201 | ||||||
Sirius XM Holdings Inc. |
86 | 547 | ||||||
Snap Inc., Class A, NVS(a) |
3 | 98 | ||||||
Spotify Technology SA(a) |
53 | 10,402 | ||||||
T-Mobile U.S. Inc.(a) |
972 | 105,141 | ||||||
Take-Two Interactive Software Inc.(a)(b) |
558 | 91,144 | ||||||
Twitter Inc.(a) |
155 | 5,814 | ||||||
Verizon Communications Inc. |
8,782 | 467,466 | ||||||
ViacomCBS Inc., Class B, NVS |
4 | 134 | ||||||
Walt Disney Co. (The)(a) |
3,622 | 517,837 | ||||||
|
|
|||||||
12,851,154 | ||||||||
Consumer Discretionary — 12.0% |
||||||||
Advance Auto Parts Inc. |
2 | 463 | ||||||
Airbnb Inc., Class A(a) |
1 | 154 | ||||||
Amazon.com Inc.(a) |
1,366 | 4,086,348 | ||||||
Aptiv PLC(a) |
101 | 13,795 | ||||||
Aramark |
13 | 446 | ||||||
AutoZone Inc.(a) |
7 | 13,905 | ||||||
Bath & Body Works Inc. |
1,073 | 60,163 | ||||||
Best Buy Co. Inc. |
912 | 90,543 | ||||||
Booking Holdings Inc.(a) |
101 | 248,069 | ||||||
BorgWarner Inc. |
8 | 351 | ||||||
Burlington Stores Inc.(a) |
108 | 25,588 | ||||||
Caesars Entertainment Inc.(a) |
167 | 12,715 | ||||||
CarMax Inc.(a) |
24 | 2,668 | ||||||
Carnival Corp.(a) |
3,620 | 71,712 | ||||||
Carvana Co., Class A(a)(b) |
121 | 19,609 | ||||||
Chipotle Mexican Grill Inc.(a) |
42 | 62,394 | ||||||
Darden Restaurants Inc. |
163 | 22,799 |
Security | Shares | Value | ||||||
|
||||||||
Consumer Discretionary (continued) |
||||||||
Dollar General Corp. |
595 | $ | 124,046 | |||||
Dollar Tree Inc.(a) |
191 | 25,063 | ||||||
Domino’s Pizza Inc. |
120 | 54,558 | ||||||
DoorDash Inc., Class A(a) |
487 | 55,270 | ||||||
DR Horton Inc. |
1,220 | 108,848 | ||||||
DraftKings Inc., Class A(a)(b) |
410 | 9,057 | ||||||
eBay Inc. |
3,483 | 209,224 | ||||||
Etsy Inc.(a) |
405 | 63,617 | ||||||
Expedia Group Inc.(a) |
190 | 34,825 | ||||||
Ford Motor Co. |
21,453 | 435,496 | ||||||
GameStop Corp., Class A(a) |
46 | 5,011 | ||||||
Garmin Ltd. |
562 | 69,924 | ||||||
General Motors Co.(a) |
3,109 | 163,938 | ||||||
Genuine Parts Co. |
6 | 799 | ||||||
Hasbro Inc. |
6 | 555 | ||||||
Hilton Worldwide Holdings Inc.(a) |
339 | 49,192 | ||||||
Home Depot Inc. (The) |
3,277 | 1,202,594 | ||||||
Las Vegas Sands Corp.(a) |
413 | 18,089 | ||||||
Lear Corp. |
3 | 502 | ||||||
Lennar Corp., Class A |
3 | 288 | ||||||
LKQ Corp. |
11 | 604 | ||||||
Lowe’s Companies Inc. |
1,875 | 445,031 | ||||||
Lululemon Athletica Inc.(a) |
581 | 193,915 | ||||||
Marriott International Inc./MD, Class A(a) |
859 | 138,402 | ||||||
McDonald’s Corp. |
1,481 | 384,246 | ||||||
MGM Resorts International |
1,323 | 56,519 | ||||||
Mohawk Industries Inc.(a) |
2 | 316 | ||||||
Newell Brands Inc. |
16 | 371 | ||||||
Nike Inc., Class B |
5,860 | 867,690 | ||||||
NVR Inc.(a) |
13 | 69,254 | ||||||
O’Reilly Automotive Inc.(a) |
53 | 34,543 | ||||||
Peloton Interactive Inc., Class A(a) |
541 | 14,786 | ||||||
Pool Corp. |
353 | 168,116 | ||||||
PulteGroup Inc. |
852 | 44,892 | ||||||
Ross Stores Inc. |
463 | 45,258 | ||||||
Royal Caribbean Cruises Ltd.(a) |
3 | 233 | ||||||
Starbucks Corp. |
2,898 | 284,931 | ||||||
Target Corp. |
4,190 | 923,602 | ||||||
Tesla Inc.(a) |
4,178 | 3,913,616 | ||||||
TJX Companies Inc. (The) |
1,586 | 114,144 | ||||||
Tractor Supply Co. |
972 | 212,197 | ||||||
Ulta Beauty Inc.(a) |
146 | 53,106 | ||||||
Vail Resorts Inc. |
89 | 24,662 | ||||||
VF Corp. |
409 | 26,671 | ||||||
Wayfair Inc., Class A(a)(b) |
88 | 13,721 | ||||||
Whirlpool Corp. |
3 | 631 | ||||||
Wynn Resorts Ltd.(a) |
196 | 16,748 | ||||||
Yum! Brands Inc. |
45 | 5,633 | ||||||
|
|
|||||||
15,416,456 | ||||||||
Consumer Staples — 6.2% |
||||||||
Altria Group Inc. |
2,992 | 152,233 | ||||||
Archer-Daniels-Midland Co. |
11 | 825 | ||||||
Boston Beer Co. Inc. (The), Class A, NVS(a) |
5 | 2,104 | ||||||
Brown-Forman Corp., Class B, NVS |
422 | 28,455 | ||||||
Bunge Ltd. |
473 | 46,761 | ||||||
Campbell Soup Co. |
21 | 927 | ||||||
Church & Dwight Co. Inc. |
1,650 | 169,373 | ||||||
Clorox Co. (The) |
1,272 | 213,518 | ||||||
Coca-Cola Co. (The) |
8,221 | 501,563 | ||||||
Colgate-Palmolive Co. |
4,083 | 336,643 |
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 (unaudited) (continued) January 31, 2022 |
BlackRock U.S. Equity Factor Rotation ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
|
||||||||
Consumer Staples (continued) |
||||||||
Conagra Brands Inc. |
26 | $ | 904 | |||||
Constellation Brands Inc., Class A |
3 | 713 | ||||||
Costco Wholesale Corp. |
3,585 | 1,810,891 | ||||||
Estee Lauder Companies Inc. (The), Class A |
568 | 177,097 | ||||||
General Mills Inc. |
716 | 49,175 | ||||||
Hershey Co. (The) |
1,276 | 251,461 | ||||||
Hormel Foods Corp. |
2,349 | 111,507 | ||||||
JM Smucker Co. (The) |
197 | 27,694 | ||||||
Kellogg Co. |
2,524 | 159,012 | ||||||
Keurig Dr Pepper Inc. |
23 | 873 | ||||||
Kimberly-Clark Corp. |
1,400 | 192,710 | ||||||
Kraft Heinz Co. (The) |
1,500 | 53,700 | ||||||
Kroger Co. (The) |
4,670 | 203,565 | ||||||
Lamb Weston Holdings Inc. |
123 | 7,898 | ||||||
McCormick & Co. Inc./MD, NVS |
1,821 | 182,665 | ||||||
Molson Coors Beverage Co., Class B |
8 | 381 | ||||||
Mondelez International Inc., Class A |
1,935 | 129,703 | ||||||
Monster Beverage Corp.(a) |
4,912 | 425,969 | ||||||
PepsiCo Inc. |
5,214 | 904,733 | ||||||
Philip Morris International Inc. |
1,283 | 131,957 | ||||||
Procter & Gamble Co. (The) |
5,976 | 958,849 | ||||||
Sysco Corp. |
979 | 76,509 | ||||||
Tyson Foods Inc., Class A |
7 | 636 | ||||||
Walmart Inc. |
3,679 | 514,361 | ||||||
Walgreens Boots Alliance Inc. |
1,438 | 71,555 | ||||||
|
|
|||||||
7,896,920 | ||||||||
Energy — 2.9% |
||||||||
Baker Hughes Co. |
13 | 357 | ||||||
Cheniere Energy Inc. |
2,983 | 333,798 | ||||||
Chevron Corp. |
1,273 | 167,183 | ||||||
ConocoPhillips |
6,815 | 603,945 | ||||||
Devon Energy Corp. |
7,489 | 378,719 | ||||||
Diamondback Energy Inc. |
452 | 57,024 | ||||||
EOG Resources Inc. |
2,462 | 274,464 | ||||||
Exxon Mobil Corp. |
4,594 | 348,960 | ||||||
Halliburton Co. |
121 | 3,720 | ||||||
Hess Corp. |
36 | 3,322 | ||||||
Kinder Morgan Inc. |
11,521 | 200,005 | ||||||
Marathon Petroleum Corp. |
13,473 | 966,688 | ||||||
Occidental Petroleum Corp. |
4,233 | 159,457 | ||||||
ONEOK Inc. |
10 | 607 | ||||||
Phillips 66 |
7 | 593 | ||||||
Pioneer Natural Resources Co. |
868 | 189,996 | ||||||
Schlumberger NV |
695 | 27,154 | ||||||
Valero Energy Corp. |
109 | 9,044 | ||||||
Williams Companies Inc. (The) |
27 | 808 | ||||||
|
|
|||||||
3,725,844 | ||||||||
Financials — 11.2% |
||||||||
Aflac Inc. |
1,735 | 108,993 | ||||||
AGNC Investment Corp. |
46 | 685 | ||||||
Alleghany Corp.(a) |
4 | 2,656 | ||||||
Allstate Corp. (The) |
171 | 20,635 | ||||||
Ally Financial Inc. |
9 | 429 | ||||||
American Express Co. |
1,164 | 209,310 | ||||||
American Financial Group Inc./OH |
5 | 651 | ||||||
American International Group Inc. |
3,127 | 180,584 | ||||||
Ameriprise Financial Inc. |
548 | 166,762 | ||||||
Annaly Capital Management Inc. |
110 | 869 | ||||||
Aon PLC, Class A |
1,262 | 348,867 |
Security | Shares | Value | ||||||
|
||||||||
Financials (continued) |
||||||||
Apollo Global Management Inc. |
1,149 | $ | 80,430 | |||||
Arch Capital Group Ltd.(a) |
182 | 8,430 | ||||||
Arthur J Gallagher & Co. |
1,372 | 216,694 | ||||||
Assurant Inc. |
263 | 40,110 | ||||||
Bank of America Corp. |
37,699 | 1,739,432 | ||||||
Bank of New York Mellon Corp. (The) |
1,595 | 94,520 | ||||||
Berkshire Hathaway Inc., Class B(a) |
4,440 | 1,389,809 | ||||||
Blackstone Inc., NVS |
6,332 | 835,634 | ||||||
Brown & Brown Inc. |
570 | 37,780 | ||||||
Capital One Financial Corp. |
975 | 143,062 | ||||||
Carlyle Group Inc. (The) |
913 | 46,609 | ||||||
Cboe Global Markets Inc. |
193 | 22,876 | ||||||
Charles Schwab Corp. (The) |
6,198 | 543,565 | ||||||
Cincinnati Financial Corp. |
5 | 589 | ||||||
Citigroup Inc. |
2,310 | 150,427 | ||||||
Citizens Financial Group Inc. |
153 | 7,875 | ||||||
CME Group Inc. |
117 | 26,852 | ||||||
Coinbase Global Inc., Class A(a) |
54 | 10,268 | ||||||
Discover Financial Services |
306 | 35,419 | ||||||
Equitable Holdings Inc. |
17 | 572 | ||||||
Erie Indemnity Co., Class A, NVS |
234 | 43,079 | ||||||
Everest Re Group Ltd. |
17 | 4,818 | ||||||
FactSet Research Systems Inc. |
257 | 108,426 | ||||||
Fidelity National Financial Inc. |
4,165 | 209,708 | ||||||
Fifth Third Bancorp |
16 | 714 | ||||||
First Republic Bank/CA |
4 | 694 | ||||||
Franklin Resources Inc. |
7 | 224 | ||||||
Globe Life Inc. |
9 | 921 | ||||||
Goldman Sachs Group Inc. (The) |
1,755 | 622,463 | ||||||
Hartford Financial Services Group Inc. (The) |
1,211 | 87,035 | ||||||
Huntington Bancshares Inc./OH |
34 | 512 | ||||||
Intercontinental Exchange Inc. |
243 | 30,778 | ||||||
Invesco Ltd. |
18 | 408 | ||||||
JPMorgan Chase & Co. |
12,890 | 1,915,454 | ||||||
KeyCorp |
33 | 827 | ||||||
KKR & Co. Inc. |
2,176 | 154,844 | ||||||
Lincoln National Corp. |
52 | 3,639 | ||||||
Loews Corp. |
18 | 1,074 | ||||||
M&T Bank Corp. |
4 | 678 | ||||||
Markel Corp.(a) |
5 | 6,164 | ||||||
MarketAxess Holdings Inc. |
204 | 70,274 | ||||||
Marsh & McLennan Companies Inc. |
1,363 | 209,411 | ||||||
MetLife Inc. |
1,590 | 106,625 | ||||||
Moody’s Corp. |
288 | 98,784 | ||||||
Morgan Stanley |
6,937 | 711,320 | ||||||
MSCI Inc. |
331 | 177,456 | ||||||
Nasdaq Inc. |
169 | 30,286 | ||||||
Northern Trust Corp. |
7 | 816 | ||||||
PNC Financial Services Group Inc. (The) |
4,703 | 968,771 | ||||||
Principal Financial Group Inc. |
12 | 877 | ||||||
Progressive Corp. (The) |
2,151 | 233,728 | ||||||
Prudential Financial Inc. |
11 | 1,227 | ||||||
Raymond James Financial Inc. |
829 | 87,766 | ||||||
Regions Financial Corp. |
28 | 642 | ||||||
RenaissanceRe Holdings Ltd. |
35 | 5,501 | ||||||
S&P Global Inc. |
300 | 124,566 | ||||||
SEI Investments Co. |
387 | 22,682 | ||||||
State Street Corp. |
6 | 567 | ||||||
SVB Financial Group(a) |
431 | 251,661 | ||||||
Synchrony Financial |
198 | 8,433 |
40 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) (continued) January 31, 2022 |
BlackRock U.S. Equity Factor Rotation ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
|
||||||||
Financials (continued) |
||||||||
T Rowe Price Group Inc. |
1,368 | $ | 211,260 | |||||
Tradeweb Markets Inc., Class A |
242 | 20,514 | ||||||
Travelers Companies Inc. (The) |
33 | 5,484 | ||||||
Truist Financial Corp. |
16 | 1,005 | ||||||
U.S. Bancorp |
1,869 | 108,757 | ||||||
Upstart Holdings Inc.(a) |
172 | 18,750 | ||||||
W R Berkley Corp. |
10 | 845 | ||||||
Wells Fargo & Co. |
22,804 | 1,226,855 | ||||||
Willis Towers Watson PLC |
53 | 12,400 | ||||||
|
|
|||||||
14,381,117 | ||||||||
Health Care — 11.8% |
||||||||
10X Genomics Inc., Class A(a)(b) |
118 | 11,360 | ||||||
Abbott Laboratories |
5,366 | 683,950 | ||||||
AbbVie Inc. |
5,760 | 788,486 | ||||||
ABIOMED Inc.(a) |
99 | 29,291 | ||||||
Agilent Technologies Inc. |
1,383 | 192,680 | ||||||
Align Technology Inc.(a) |
172 | 85,133 | ||||||
Alnylam Pharmaceuticals Inc.(a)(b) |
204 | 28,070 | ||||||
AmerisourceBergen Corp. |
196 | 26,695 | ||||||
Amgen Inc. |
2,321 | 527,192 | ||||||
Anthem Inc. |
173 | 76,291 | ||||||
Avantor Inc.(a) |
2,684 | 100,194 | ||||||
Baxter International Inc. |
924 | 78,947 | ||||||
Becton Dickinson and Co. |
1,287 | 327,078 | ||||||
Biogen Inc.(a)(b) |
312 | 70,512 | ||||||
BioMarin Pharmaceutical Inc.(a) |
1,427 | 126,475 | ||||||
Bio-Rad Laboratories Inc., Class A(a) |
26 | 15,593 | ||||||
Bio-Techne Corp. |
228 | 85,822 | ||||||
Boston Scientific Corp.(a) |
15 | 644 | ||||||
Bristol-Myers Squibb Co. |
2,366 | 153,530 | ||||||
Cardinal Health Inc. |
321 | 16,554 | ||||||
Catalent Inc.(a) |
61 | 6,340 | ||||||
Centene Corp.(a) |
3 | 233 | ||||||
Cerner Corp. |
553 | 50,434 | ||||||
Charles River Laboratories International Inc.(a) |
272 | 89,695 | ||||||
Cigna Corp. |
254 | 58,537 | ||||||
Cooper Companies Inc. (The)(b) |
187 | 74,482 | ||||||
CVS Health Corp. |
1,675 | 178,404 | ||||||
Danaher Corp. |
1,438 | 410,966 | ||||||
DaVita Inc.(a) |
101 | 10,945 | ||||||
DENTSPLY SIRONA Inc. |
7 | 374 | ||||||
Dexcom Inc.(a) |
457 | 196,729 | ||||||
Edwards Lifesciences Corp.(a) |
2,920 | 318,864 | ||||||
Elanco Animal Health Inc.(a) |
7 | 182 | ||||||
Eli Lilly & Co. |
7,455 | 1,829,382 | ||||||
Exact Sciences Corp.(a) |
318 | 24,283 | ||||||
Gilead Sciences Inc. |
5,908 | 405,761 | ||||||
HCA Healthcare Inc. |
498 | 119,545 | ||||||
Henry Schein Inc.(a) |
171 | 12,876 | ||||||
Hologic Inc.(a) |
4 | 281 | ||||||
Horizon Therapeutics PLC(a) |
1,078 | 100,610 | ||||||
Humana Inc. |
20 | 7,850 | ||||||
IDEXX Laboratories Inc.(a) |
440 | 223,212 | ||||||
Illumina Inc.(a) |
200 | 69,764 | ||||||
Incyte Corp.(a) |
1,203 | 89,419 | ||||||
Insulet Corp.(a) |
122 | 30,256 | ||||||
Intuitive Surgical Inc.(a) |
412 | 117,082 | ||||||
IQVIA Holdings Inc.(a) |
170 | 41,633 | ||||||
Jazz Pharmaceuticals PLC(a) |
3 | 417 | ||||||
Johnson & Johnson |
8,686 | 1,496,511 |
Security | Shares | Value | ||||||
|
||||||||
Health Care (continued) |
||||||||
Laboratory Corp. of America Holdings(a) |
2 | $ | 543 | |||||
Masimo Corp.(a) |
159 | 34,959 | ||||||
McKesson Corp. |
38 | 9,755 | ||||||
Medtronic PLC |
1,069 | 110,631 | ||||||
Merck & Co. Inc. |
7,262 | 591,708 | ||||||
Mettler-Toledo International Inc.(a) |
36 | 53,017 | ||||||
Moderna Inc.(a) |
3,523 | 596,550 | ||||||
Molina Healthcare Inc.(a) |
148 | 42,991 | ||||||
Neurocrine Biosciences Inc.(a) |
182 | 14,382 | ||||||
Novavax Inc.(a) |
108 | 10,120 | ||||||
Novocure Ltd.(a)(b) |
139 | 9,542 | ||||||
Oak Street Health Inc.(a)(b) |
106 | 1,842 | ||||||
PerkinElmer Inc. |
165 | 28,408 | ||||||
Pfizer Inc. |
13,819 | 728,123 | ||||||
Quest Diagnostics Inc. |
168 | 22,683 | ||||||
Regeneron Pharmaceuticals Inc.(a) |
310 | 188,663 | ||||||
ResMed Inc. |
249 | 56,921 | ||||||
Royalty Pharma PLC, Class A |
394 | 15,764 | ||||||
Seagen Inc.(a) |
664 | 89,315 | ||||||
STERIS PLC |
21 | 4,712 | ||||||
Stryker Corp. |
177 | 43,905 | ||||||
Teleflex Inc. |
13 | 4,033 | ||||||
Thermo Fisher Scientific Inc. |
2,099 | 1,220,149 | ||||||
UnitedHealth Group Inc. |
2,041 | 964,515 | ||||||
Universal Health Services Inc., Class B |
4 | 520 | ||||||
Veeva Systems Inc., Class A(a) |
199 | 47,071 | ||||||
Vertex Pharmaceuticals Inc.(a) |
1,399 | 340,027 | ||||||
Viatris Inc. |
22 | 329 | ||||||
Waters Corp.(a) |
184 | 58,902 | ||||||
West Pharmaceutical Services Inc. |
489 | 192,285 | ||||||
Zimmer Biomet Holdings Inc. |
5 | 615 | ||||||
Zoetis Inc. |
1,032 | 206,183 | ||||||
|
|
|||||||
15,078,727 | ||||||||
Industrials — 5.1% |
||||||||
3M Co. |
1,837 | 304,979 | ||||||
A O Smith Corp. |
260 | 19,869 | ||||||
Allegion PLC |
242 | 29,701 | ||||||
AMERCO |
108 | 65,767 | ||||||
AMETEK Inc. |
8 | 1,094 | ||||||
Boeing Co. (The)(a) |
583 | 116,740 | ||||||
Booz Allen Hamilton Holding Corp. |
530 | 40,667 | ||||||
Canadian Pacific Railway Ltd. |
4,000 | 285,600 | ||||||
Carrier Global Corp. |
3,691 | 175,987 | ||||||
Caterpillar Inc. |
1,035 | 208,615 | ||||||
CH Robinson Worldwide Inc. |
881 | 92,197 | ||||||
Cintas Corp. |
202 | 79,089 | ||||||
Copart Inc.(a) |
775 | 100,169 | ||||||
CoStar Group Inc.(a) |
585 | 41,044 | ||||||
CSX Corp. |
19 | 650 | ||||||
Cummins Inc. |
4 | 883 | ||||||
Deere & Co. |
415 | 156,206 | ||||||
Delta Air Lines Inc.(a) |
649 | 25,759 | ||||||
Dover Corp. |
7 | 1,189 | ||||||
Eaton Corp. PLC |
7 | 1,109 | ||||||
Emerson Electric Co. |
856 | 78,709 | ||||||
Equifax Inc. |
524 | 125,634 | ||||||
Expeditors International of Washington Inc. |
1,378 | 157,753 | ||||||
Fastenal Co. |
2,072 | 117,441 | ||||||
FedEx Corp. |
402 | 98,836 | ||||||
Fortive Corp. |
11 | 776 |
S C H E D U L E O F I N V E S T M E N T S |
41 |
Schedule of Investments (unaudited) (continued) January 31, 2022 |
BlackRock U.S. Equity Factor Rotation ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
|
||||||||
Industrials (continued) |
||||||||
Fortune Brands Home & Security Inc. |
60 | $ | 5,650 | |||||
Generac Holdings Inc.(a) |
493 | 139,213 | ||||||
General Dynamics Corp. |
493 | 104,565 | ||||||
General Electric Co. |
1,876 | 177,244 | ||||||
HEICO Corp. |
26 | 3,546 | ||||||
HEICO Corp., Class A |
40 | 4,388 | ||||||
Honeywell International Inc. |
638 | 130,458 | ||||||
Howmet Aerospace Inc. |
57 | 1,772 | ||||||
Huntington Ingalls Industries Inc. |
978 | 183,082 | ||||||
IDEX Corp. |
5 | 1,077 | ||||||
IHS Markit Ltd. |
1,341 | 156,615 | ||||||
Illinois Tool Works Inc. |
1,176 | 275,090 | ||||||
Ingersoll Rand Inc. |
11 | 618 | ||||||
Jacobs Engineering Group Inc. |
5 | 651 | ||||||
JB Hunt Transport Services Inc. |
141 | 27,148 | ||||||
Johnson Controls International PLC |
3,053 | 221,861 | ||||||
Knight-Swift Transportation Holdings Inc. |
6 | 339 | ||||||
L3Harris Technologies Inc. |
4 | 837 | ||||||
Lennox International Inc. |
2 | 567 | ||||||
Lockheed Martin Corp. |
1,312 | 510,539 | ||||||
Lyft Inc., Class A(a)(b) |
403 | 15,524 | ||||||
Masco Corp. |
9 | 570 | ||||||
Nordson Corp. |
18 | 4,186 | ||||||
Norfolk Southern Corp. |
3 | 816 | ||||||
Northrop Grumman Corp. |
42 | 15,536 | ||||||
Old Dominion Freight Line Inc. |
1,046 | 315,819 | ||||||
Otis Worldwide Corp. |
92 | 7,860 | ||||||
Owens Corning |
6 | 532 | ||||||
PACCAR Inc. |
7 | 651 | ||||||
Parker-Hannifin Corp. |
35 | 10,850 | ||||||
Pentair PLC |
8 | 510 | ||||||
Plug Power Inc.(a) |
2,313 | 50,585 | ||||||
Raytheon Technologies Corp. |
1,645 | 148,363 | ||||||
Republic Services Inc. |
315 | 40,213 | ||||||
Robert Half International Inc. |
1,023 | 115,865 | ||||||
Rockwell Automation Inc. |
342 | 98,913 | ||||||
Rollins Inc. |
1,141 | 35,200 | ||||||
Roper Technologies Inc. |
2 | 874 | ||||||
Sensata Technologies Holding PLC(a) |
10 | 574 | ||||||
Snap-on Inc. |
3 | 625 | ||||||
Southwest Airlines Co.(a) |
12 | 537 | ||||||
Stanley Black & Decker Inc. |
3 | 524 | ||||||
Textron Inc. |
872 | 59,348 | ||||||
Trane Technologies PLC |
206 | 35,659 | ||||||
TransDigm Group Inc.(a) |
25 | 15,405 | ||||||
TransUnion |
255 | 26,296 | ||||||
Uber Technologies Inc.(a) |
1,997 | 74,688 | ||||||
Union Pacific Corp. |
1,152 | 281,722 | ||||||
United Parcel Service Inc., Class B |
2,396 | 484,495 | ||||||
United Rentals Inc.(a)(b) |
321 | 102,758 | ||||||
Verisk Analytics Inc. |
331 | 64,919 | ||||||
Waste Connections Inc. |
290 | 36,163 | ||||||
Waste Management Inc. |
396 | 59,574 | ||||||
Westinghouse Air Brake Technologies Corp. |
7 | 622 | ||||||
WW Grainger Inc. |
152 | 75,257 | ||||||
Xylem Inc./NY |
235 | 24,680 | ||||||
|
|
|||||||
6,478,436 | ||||||||
Information Technology — 36.0% |
||||||||
Accenture PLC, Class A |
4,668 | 1,650,511 | ||||||
Adobe Inc.(a) |
3,566 | 1,905,314 |
Security | Shares | Value | ||||||
|
||||||||
Information Technology (continued) |
||||||||
Advanced Micro Devices Inc.(a) |
1,365 | $ | 155,951 | |||||
Affirm Holdings Inc.(a)(b) |
589 | 37,737 | ||||||
Akamai Technologies Inc.(a) |
803 | 91,984 | ||||||
Amphenol Corp., Class A |
1,264 | 100,602 | ||||||
Analog Devices Inc. |
399 | 65,424 | ||||||
ANSYS Inc.(a) |
57 | 19,381 | ||||||
Apple Inc. |
51,703 | 9,036,650 | ||||||
Applied Materials Inc. |
19,579 | 2,705,426 | ||||||
Arista Networks Inc.(a) |
822 | 102,183 | ||||||
Arrow Electronics Inc.(a) |
6 | 744 | ||||||
Asana Inc., Class A(a) |
341 | 17,896 | ||||||
Aspen Technology Inc.(a)(b) |
297 | 44,597 | ||||||
Atlassian Corp. PLC, Class A(a) |
103 | 33,407 | ||||||
Autodesk Inc.(a) |
441 | 110,157 | ||||||
Automatic Data Processing Inc. |
1,273 | 262,454 | ||||||
Avalara Inc.(a) |
159 | 17,430 | ||||||
Bill.com Holdings Inc.(a) |
638 | 120,078 | ||||||
Black Knight Inc.(a) |
1,640 | 122,344 | ||||||
Block Inc.(a) |
572 | 69,950 | ||||||
Broadcom Inc. |
1,115 | 653,256 | ||||||
Broadridge Financial Solutions Inc. |
383 | 60,981 | ||||||
Cadence Design Systems Inc.(a) |
1,315 | 200,064 | ||||||
CDW Corp./DE |
261 | 49,342 | ||||||
Ceridian HCM Holding Inc.(a) |
3 | 227 | ||||||
Cisco Systems Inc. |
11,850 | 659,689 | ||||||
Citrix Systems Inc. |
121 | 12,335 | ||||||
Cloudflare Inc., Class A(a) |
2,295 | 221,238 | ||||||
Cognex Corp. |
326 | 21,666 | ||||||
Cognizant Technology Solutions Corp., Class A |
382 | 32,630 | ||||||
Corning Inc. |
483 | 20,305 | ||||||
Coupa Software Inc.(a) |
106 | 14,233 | ||||||
Crowdstrike Holdings Inc., Class A(a) |
1,147 | 207,194 | ||||||
Datadog Inc., Class A(a) |
1,315 | 192,135 | ||||||
Dell Technologies Inc., Class C(a) |
2,745 | 155,943 | ||||||
DocuSign Inc.(a) |
265 | 33,329 | ||||||
Dropbox Inc., Class A(a) |
565 | 13,984 | ||||||
Dynatrace Inc.(a) |
1,160 | 63,638 | ||||||
Enphase Energy Inc.(a) |
250 | 35,117 | ||||||
EPAM Systems Inc.(a) |
493 | 234,737 | ||||||
F5 Inc.(a) |
2 | 415 | ||||||
Fair Isaac Corp.(a) |
126 | 62,369 | ||||||
Fidelity National Information Services Inc. |
167 | 20,027 | ||||||
Fiserv Inc.(a) |
332 | 35,092 | ||||||
FleetCor Technologies Inc.(a) |
26 | 6,195 | ||||||
Fortinet Inc.(a) |
1,290 | 383,440 | ||||||
Gartner Inc.(a) |
481 | 141,361 | ||||||
Global Payments Inc. |
3 | 450 | ||||||
Guidewire Software Inc.(a)(b) |
4 | 403 | ||||||
Hewlett Packard Enterprise Co. |
29 | 474 | ||||||
HP Inc. |
761 | 27,952 | ||||||
HubSpot Inc.(a) |
295 | 144,196 | ||||||
Intel Corp. |
9,733 | 475,165 | ||||||
International Business Machines Corp. |
2,280 | 304,540 | ||||||
Intuit Inc. |
2,039 | 1,132,114 | ||||||
IPG Photonics Corp.(a) |
6 | 927 | ||||||
Jack Henry & Associates Inc. |
1,214 | 203,721 | ||||||
Juniper Networks Inc. |
383 | 13,336 | ||||||
Keysight Technologies Inc.(a) |
537 | 90,656 | ||||||
KLA Corp. |
1,012 | 393,941 | ||||||
Lam Research Corp. |
418 | 246,587 |
42 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) (continued) January 31, 2022 |
BlackRock U.S. Equity Factor Rotation ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Information Technology (continued) |
||||||||
Marvell Technology Inc. |
2,854 | $ | 203,776 | |||||
Mastercard Inc., Class A |
3,776 | 1,458,971 | ||||||
Microchip Technology Inc. |
701 | 54,313 | ||||||
Micron Technology Inc. |
284 | 23,365 | ||||||
Microsoft Corp. |
30,196 | 9,390,352 | ||||||
MongoDB Inc.(a) |
272 | 110,190 | ||||||
Monolithic Power Systems Inc. |
202 | 81,392 | ||||||
Motorola Solutions Inc. |
416 | 96,487 | ||||||
NetApp Inc. |
1,286 | 111,252 | ||||||
NortonLifeLock Inc. |
2,359 | 61,358 | ||||||
Nuance Communications Inc.(a) |
5,779 | 319,290 | ||||||
NVIDIA Corp. |
13,808 | 3,381,027 | ||||||
NXP Semiconductors NV |
147 | 30,200 | ||||||
Okta Inc.(a)(b) |
167 | 33,048 | ||||||
ON Semiconductor Corp.(a) |
416 | 24,544 | ||||||
Oracle Corp. |
14,855 | 1,205,632 | ||||||
Palantir Technologies Inc., Class A(a) |
9,382 | 128,627 | ||||||
Palo Alto Networks Inc.(a) |
642 | 332,171 | ||||||
Paychex Inc. |
2,288 | 269,435 | ||||||
Paycom Software Inc.(a) |
134 | 44,930 | ||||||
PayPal Holdings Inc.(a) |
3,721 | 639,789 | ||||||
PTC Inc.(a) |
188 | 21,857 | ||||||
Qorvo Inc.(a) |
3 | 412 | ||||||
QUALCOMM Inc. |
4,100 | 720,616 | ||||||
RingCentral Inc., Class A(a) |
161 | 28,415 | ||||||
salesforce.com Inc.(a) |
1,631 | 379,420 | ||||||
Seagate Technology Holdings PLC |
2 | 214 | ||||||
ServiceNow Inc.(a) |
201 | 117,742 | ||||||
Skyworks Solutions Inc. |
299 | 43,809 | ||||||
Snowflake Inc., Class A(a) |
981 | 270,658 | ||||||
SolarEdge Technologies Inc.(a) |
1 | 238 | ||||||
Splunk Inc.(a) |
206 | 25,527 | ||||||
SS&C Technologies Holdings Inc. |
10 | 799 | ||||||
Synopsys Inc.(a) |
424 | 131,652 | ||||||
TE Connectivity Ltd. |
6 | 858 | ||||||
Teledyne Technologies Inc.(a) |
2 | 843 | ||||||
Teradyne Inc. |
450 | 52,843 | ||||||
Texas Instruments Inc. |
3,574 | 641,497 | ||||||
Trade Desk Inc. (The), Class A(a) |
604 | 42,002 | ||||||
Trimble Inc.(a) |
8 | 577 | ||||||
Twilio Inc., Class A(a) |
51 | 10,512 | ||||||
Tyler Technologies Inc.(a) |
153 | 72,491 | ||||||
Unity Software Inc.(a)(b) |
497 | 52,260 | ||||||
VeriSign Inc.(a) |
275 | 59,724 | ||||||
Visa Inc., Class A |
7,024 | 1,588,618 | ||||||
VMware Inc., Class A |
308 | 39,572 | ||||||
Western Digital Corp.(a) |
4 | 207 | ||||||
Western Union Co. (The) |
291 | 5,503 | ||||||
Workday Inc., Class A(a) |
266 | 67,301 | ||||||
Xilinx Inc. |
1,150 | 222,582 | ||||||
Zebra Technologies Corp., Class A(a) |
321 | 163,427 | ||||||
Zendesk Inc.(a)(b) |
158 | 15,565 | ||||||
Zoom Video Communications Inc., Class A(a) |
301 | 46,438 | ||||||
Zscaler Inc.(a) |
355 | 91,274 | ||||||
|
|
|||||||
46,151,226 | ||||||||
Materials — 1.6% | ||||||||
Air Products and Chemicals Inc. |
111 | 31,315 | ||||||
Albemarle Corp. |
762 | 168,204 | ||||||
Amcor PLC |
553 | 6,641 | ||||||
Avery Dennison Corp. |
2,091 | 429,533 |
Security | Shares | Value | ||||||
Materials (continued) |
||||||||
Ball Corp. |
281 | $ | 27,285 | |||||
Celanese Corp. |
256 | 39,862 | ||||||
CF Industries Holdings Inc. |
837 | 57,644 | ||||||
Corteva Inc. |
9 | 433 | ||||||
Crown Holdings Inc. |
29 | 3,318 | ||||||
Dow Inc. |
1,137 | 67,913 | ||||||
DuPont de Nemours Inc. |
1,428 | 109,385 | ||||||
Eastman Chemical Co. |
5 | 595 | ||||||
Ecolab Inc. |
367 | 69,528 | ||||||
FMC Corp. |
1,117 | 123,283 | ||||||
Freeport-McMoRan Inc. |
826 | 30,744 | ||||||
International Flavors & Fragrances Inc. |
4 | 528 | ||||||
International Paper Co. |
11 | 531 | ||||||
Linde PLC |
482 | 153,604 | ||||||
LyondellBasell Industries NV, Class A |
59 | 5,707 | ||||||
Martin Marietta Materials Inc. |
87 | 33,853 | ||||||
Mosaic Co. (The) |
1,419 | 56,689 | ||||||
Newmont Corp. |
392 | 23,979 | ||||||
Nucor Corp. |
1,504 | 152,505 | ||||||
Packaging Corp. of America |
5 | 753 | ||||||
PPG Industries Inc. |
483 | 75,444 | ||||||
RPM International Inc. |
143 | 12,671 | ||||||
Sealed Air Corp. |
155 | 10,528 | ||||||
Sherwin-Williams Co. (The) |
919 | 263,303 | ||||||
Steel Dynamics Inc. |
1,320 | 73,286 | ||||||
Vulcan Materials Co. |
3 | 571 | ||||||
Westrock Co. |
10 | 462 | ||||||
|
|
|||||||
2,030,097 | ||||||||
Real Estate — 1.4% | ||||||||
Alexandria Real Estate Equities Inc. |
5 | 974 | ||||||
American Tower Corp. |
1,176 | 295,764 | ||||||
AvalonBay Communities Inc. |
137 | 33,460 | ||||||
Boston Properties Inc. |
6 | 672 | ||||||
Camden Property Trust |
195 | 31,218 | ||||||
CBRE Group Inc., Class A(a)(b) |
1,912 | 193,762 | ||||||
Crown Castle International Corp. |
641 | 116,989 | ||||||
Digital Realty Trust Inc. |
3 | 448 | ||||||
Duke Realty Corp. |
393 | 22,708 | ||||||
Equinix Inc. |
117 | 84,813 | ||||||
Equity LifeStyle Properties Inc. |
173 | 13,544 | ||||||
Equity Residential |
295 | 26,175 | ||||||
Essex Property Trust Inc. |
50 | 16,625 | ||||||
Extra Space Storage Inc. |
181 | 35,872 | ||||||
Healthpeak Properties Inc. |
22 | 778 | ||||||
Host Hotels & Resorts Inc.(a) |
25 | 434 | ||||||
Invitation Homes Inc. |
21 | 882 | ||||||
Iron Mountain Inc. |
382 | 17,541 | ||||||
Medical Properties Trust Inc. |
24 | 546 | ||||||
Mid-America Apartment Communities Inc. |
169 | 34,929 | ||||||
Prologis Inc. |
713 | 111,813 | ||||||
Public Storage |
823 | 295,070 | ||||||
Realty Income Corp. |
488 | 33,872 | ||||||
Regency Centers Corp. |
10 | 717 | ||||||
SBA Communications Corp. |
138 | 44,911 | ||||||
Simon Property Group Inc. |
890 | 131,008 | ||||||
Sun Communities Inc. |
4 | 756 | ||||||
UDR Inc. |
12 | 682 | ||||||
Ventas Inc. |
11 | 583 | ||||||
VICI Properties Inc. |
6,296 | 180,192 | ||||||
Vornado Realty Trust |
10 | 410 |
S C H E D U L E O F I N V E S T M E N T S |
43 |
Schedule of Investments (unaudited) (continued) January 31, 2022 |
BlackRock U.S. Equity Factor Rotation ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Real Estate (continued) |
||||||||
Welltower Inc. |
314 | $ | 27,202 | |||||
Weyerhaeuser Co. |
12 | 485 | ||||||
WP Carey Inc. |
12 | 931 | ||||||
Zillow Group Inc., Class A(a) |
96 | 4,787 | ||||||
Zillow Group Inc., Class C, NVS(a)(b) |
257 | 12,973 | ||||||
|
|
|||||||
1,774,526 | ||||||||
Utilities — 1.6% | ||||||||
AES Corp. (The) |
16 | 355 | ||||||
Alliant Energy Corp. |
4,460 | 266,976 | ||||||
Ameren Corp. |
208 | 18,458 | ||||||
American Electric Power Co. Inc. |
1,572 | 142,109 | ||||||
American Water Works Co. Inc. |
39 | 6,271 | ||||||
Atmos Energy Corp. |
1,767 | 189,458 | ||||||
CenterPoint Energy Inc. |
21 | 596 | ||||||
CMS Energy Corp. |
1,337 | 86,076 | ||||||
Consolidated Edison Inc. |
1,487 | 128,551 | ||||||
Dominion Energy Inc. |
448 | 36,136 | ||||||
DTE Energy Co. |
10 | 1,204 | ||||||
Duke Energy Corp. |
1,730 | 181,754 | ||||||
Edison International |
11 | 691 | ||||||
Entergy Corp. |
5 | 559 | ||||||
Essential Utilities Inc. |
15 | 731 | ||||||
Evergy Inc. |
119 | 7,730 | ||||||
Eversource Energy |
315 | 28,189 | ||||||
Exelon Corp. |
1,666 | 96,545 | ||||||
FirstEnergy Corp. |
13 | 545 | ||||||
NextEra Energy Inc. |
2,844 | 222,173 | ||||||
NiSource Inc. |
28 | 817 | ||||||
NRG Energy Inc. |
201 | 8,026 | ||||||
PG&E Corp.(a) |
21 | 269 | ||||||
PPL Corp. |
33 | 979 | ||||||
Public Service Enterprise Group Inc. |
16 | 1,064 | ||||||
Sempra Energy |
912 | 126,002 |
Security | Shares | Value | ||||||
Utilities (continued) |
||||||||
Southern Co. (The) |
3,403 | $ | 236,474 | |||||
UGI Corp. |
15 | 680 | ||||||
Vistra Corp. |
12 | 262 | ||||||
WEC Energy Group Inc. |
1,804 | 175,060 | ||||||
Xcel Energy Inc. |
1,877 | 130,752 | ||||||
|
|
|||||||
2,095,492 | ||||||||
|
|
|||||||
Total
Common Stocks — 99.8% |
127,879,995 | |||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 0.9% | ||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares, 0.08%(c)(d)(e) |
978,796 | 979,089 | ||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d) |
152,000 | 152,000 | ||||||
|
|
|||||||
1,131,089 | ||||||||
|
|
|||||||
Total
Short-Term Investments — 0.9% |
1,131,089 | |||||||
|
|
|||||||
Total
Investments In Securities — 100.7% |
129,011,084 | |||||||
Other Assets, Less Liabilities — (0.7)% |
(932,959 | ) | ||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 128,078,125 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
All or a portion of this security is on loan. |
(c) |
Affiliate of the Fund. |
(d) |
Annualized 7-day yield as of period end. |
(e) |
All or a portion of this security was purchased with the cash collateral from loaned securities. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 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 07/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change
in Unrealized Appreciation (Depreciation) |
Value at 01/31/22 |
Shares Held at 01/31/22 |
Income |
Capital Gain |
|||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares |
$ | 637,365 | $341,758 | (a) | $ | — | $ | 169 | $ | (203 | ) | $ | 979,089 | 978,796 | $ | 811 | (b) | $ | — | |||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
282,000 | — | (130,000 | )(a) | — | — | 152,000 | 152,000 | 8 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | 169 | $ | (203 | ) | $ | 1,131,089 | $ | 819 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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. |
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.
44 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) (continued) January 31, 2022 |
BlackRock U.S. Equity Factor Rotation 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 |
$ | 127,879,995 | $ | — | $ | — | $ | 127,879,995 | ||||||||
Money Market Funds |
1,131,089 | — | — | 1,131,089 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 129,011,084 | $ | — | $ | — | $ | 129,011,084 | |||||||||
|
|
|
|
|
|
|
|
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 |
45 |
Schedule of Investments (unaudited) January 31, 2022 |
BlackRock World ex U.S. Carbon Transition Readiness ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Common Stocks |
||||||||
Australia — 6.6% |
||||||||
Aristocrat Leisure Ltd. |
46,618 | $ | 1,351,352 | |||||
Australia & New Zealand Banking Group Ltd. |
136,431 | 2,578,387 | ||||||
BHP Group Ltd. |
29,340 | 940,950 | ||||||
BlueScope Steel Ltd. |
15,485 | 202,959 | ||||||
Cochlear Ltd. |
22,168 | 3,039,963 | ||||||
Commonwealth Bank of Australia |
19,071 | 1,271,840 | ||||||
CSL Ltd. |
15,974 | 2,959,065 | ||||||
Fortescue Metals Group Ltd. |
10,758 | 151,065 | ||||||
Glencore PLC |
407,663 | 2,123,767 | ||||||
Goodman Group |
27,873 | 460,231 | ||||||
Lendlease Corp. Ltd. |
31,948 | 226,081 | ||||||
Macquarie Group Ltd. |
50,367 | 6,583,546 | ||||||
Medibank Pvt Ltd. |
510,516 | 1,118,679 | ||||||
National Australia Bank Ltd. |
122,576 | 2,365,158 | ||||||
Rio Tinto Ltd. |
19,560 | 1,555,131 | ||||||
Rio Tinto PLC |
45,151 | 3,182,483 | ||||||
Santos Ltd. |
48,175 | 245,390 | ||||||
SEEK Ltd. |
7,661 | 158,760 | ||||||
Sonic Healthcare Ltd. |
12,388 | 333,613 | ||||||
Stockland |
298,290 | 859,799 | ||||||
Tabcorp Holdings Ltd. |
161,859 | 568,705 | ||||||
Wesfarmers Ltd. |
84,288 | 3,144,997 | ||||||
Westpac Banking Corp. |
123,391 | 1,779,660 | ||||||
|
|
|||||||
37,201,581 | ||||||||
Austria — 0.2% | ||||||||
Erste Group Bank AG |
10,269 | 479,979 | ||||||
Verbund AG |
6,357 | 673,271 | ||||||
voestalpine AG |
5,053 | 167,987 | ||||||
|
|
|||||||
1,321,237 | ||||||||
Belgium — 0.9% | ||||||||
Ageas SA/NV |
1,304 | 62,767 | ||||||
Anheuser-Busch InBev SA/NV |
63,081 | 3,976,696 | ||||||
KBC Group NV |
8,929 | 776,549 | ||||||
Umicore SA |
8,965 | 339,376 | ||||||
|
|
|||||||
5,155,388 | ||||||||
Canada — 11.3% | ||||||||
Algonquin Power & Utilities Corp. |
54,931 | 784,327 | ||||||
Alimentation Couche-Tard Inc. |
64,874 | 2,616,599 | ||||||
Ballard Power Systems Inc.(a) |
63,733 | 664,831 | ||||||
Bank of Montreal |
21,842 | 2,472,271 | ||||||
Bank of Nova Scotia (The) |
49,715 | 3,580,935 | ||||||
BlackBerry Ltd.(a) |
71,231 | 586,143 | ||||||
Brookfield Asset Management Inc., Class A |
98,452 | 5,421,579 | ||||||
Canadian Imperial Bank of Commerce |
17,278 | 2,169,622 | ||||||
Canadian National Railway Co. |
9,454 | 1,152,270 | ||||||
Canadian Tire Corp. Ltd., Class A, NVS |
1,476 | 213,106 | ||||||
CGI Inc.(a) |
7,530 | 642,907 | ||||||
Dollarama Inc. |
9,128 | 470,995 | ||||||
Empire Co. Ltd., Class A, NVS |
12,388 | 382,219 | ||||||
Enbridge Inc. |
197,556 | 8,352,012 | ||||||
Franco-Nevada Corp. |
34,882 | 4,612,058 | ||||||
Hydro One Ltd.(b) |
94,703 | 2,446,640 | ||||||
Keyera Corp. |
6,683 | 157,250 | ||||||
Loblaw Companies Ltd. |
8,150 | 628,777 | ||||||
Metro Inc. |
7,987 | 427,201 | ||||||
National Bank of Canada |
27,384 | 2,190,892 | ||||||
Northland Power Inc. |
37,513 | 1,086,303 | ||||||
Nutrien Ltd. |
978 | 68,306 |
Security | Shares | Value | ||||||
Canada (continued) |
||||||||
Parkland Corp. |
26,569 | $ | 706,472 | |||||
Power Corp. of Canada |
10,921 | 351,046 | ||||||
Restaurant Brands International Inc. |
29,992 | 1,677,561 | ||||||
RioCan REIT |
163,326 | 2,843,413 | ||||||
Ritchie Bros Auctioneers Inc. |
5,379 | 327,864 | ||||||
Royal Bank of Canada |
26,732 | 3,047,845 | ||||||
Shopify Inc., Class A(a) |
3,586 | 3,461,309 | ||||||
Sun Life Financial Inc. |
86,227 | 4,883,359 | ||||||
TC Energy Corp. |
27,052 | 1,396,919 | ||||||
Toronto-Dominion Bank (The) |
42,380 | 3,394,334 | ||||||
Wheaton Precious Metals Corp. |
1,630 | 65,718 | ||||||
|
|
|||||||
63,283,083 | ||||||||
Denmark — 3.0% | ||||||||
Carlsberg A/S, Class B |
8,802 | 1,425,313 | ||||||
DSV A/S |
32,111 | 6,524,334 | ||||||
Novo Nordisk A/S, Class B |
47,270 | 4,701,864 | ||||||
Novozymes A/S, Class B |
29,340 | 2,014,115 | ||||||
Orsted A/S(b) |
4,564 | 486,272 | ||||||
Vestas Wind Systems A/S |
61,056 | 1,652,199 | ||||||
|
|
|||||||
16,804,097 | ||||||||
Finland — 0.8% | ||||||||
Orion OYJ, Class B |
53,138 | 2,160,735 | ||||||
UPM-Kymmene OYJ |
13,692 | 499,025 | ||||||
Wartsila OYJ Abp |
155,665 | 1,921,904 | ||||||
|
|
|||||||
4,581,664 | ||||||||
France — 9.4% | ||||||||
Air Liquide SA |
2,445 | 418,240 | ||||||
Alstom SA |
8,965 | 290,643 | ||||||
Amundi SA(b) |
12,062 | 937,655 | ||||||
ArcelorMittal SA |
15,284 | 453,996 | ||||||
AXA SA |
69,927 | 2,214,658 | ||||||
BioMerieux |
11,899 | 1,395,311 | ||||||
BNP Paribas SA |
42,380 | 3,025,482 | ||||||
Bollore SA |
287,206 | 1,548,099 | ||||||
Capgemini SE |
12,225 | 2,748,380 | ||||||
Cie. de Saint-Gobain |
19,071 | 1,290,486 | ||||||
Dassault Systemes SE |
29,992 | 1,450,364 | ||||||
Electricite de France SA |
43,684 | 420,162 | ||||||
EssilorLuxottica SA |
3,097 | 585,907 | ||||||
Gecina SA |
4,727 | 641,417 | ||||||
Getlink SE |
112,470 | 1,774,199 | ||||||
Hermes International |
163 | 244,731 | ||||||
Ipsen SA |
6,031 | 586,821 | ||||||
Kering SA |
1,793 | 1,338,949 | ||||||
Klepierre SA |
27,221 | 724,031 | ||||||
La Francaise des Jeux SAEM(b) |
7,335 | 303,696 | ||||||
Legrand SA |
39,446 | 4,014,539 | ||||||
L’Oreal SA |
9,293 | 3,969,474 | ||||||
LVMH Moet Hennessy Louis Vuitton SE |
6,357 | 5,221,495 | ||||||
Publicis Groupe SA |
5,705 | 386,576 | ||||||
Remy Cointreau SA |
652 | 135,964 | ||||||
Renault SA(a) |
10,269 | 408,115 | ||||||
Sanofi |
40,587 | 4,243,858 | ||||||
Sartorius Stedim Biotech |
652 | 285,909 | ||||||
Schneider Electric SE |
25,016 | 4,237,593 | ||||||
SEB SA |
1,793 | 272,124 | ||||||
Societe Generale SA |
33,089 | 1,228,275 | ||||||
Sodexo SA |
3,423 | 318,351 | ||||||
Teleperformance |
5,053 | 1,902,905 |
46 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) (continued) January 31, 2022 |
BlackRock World ex U.S. Carbon Transition Readiness ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
France (continued) |
||||||||
TotalEnergies SE |
43,847 | $ | 2,493,466 | |||||
Unibail-Rodamco-Westfield(a) |
1,141 | 86,941 | ||||||
Worldline SA/France(a)(b) |
26,895 | 1,303,606 | ||||||
|
|
|||||||
52,902,418 | ||||||||
Germany — 5.0% | ||||||||
adidas AG |
7,009 | 1,923,390 | ||||||
Allianz SE, Registered |
20,561 | 5,279,089 | ||||||
BASF SE |
815 | 62,420 | ||||||
Bayer AG, Registered |
31,785 | 1,931,061 | ||||||
Bayerische Motoren Werke AG |
4,059 | 429,616 | ||||||
Continental AG(a) |
10,432 | 1,011,384 | ||||||
Delivery Hero SE(a)(b) |
4,245 | 327,671 | ||||||
Deutsche Bank AG, Registered(a) |
33,252 | 462,985 | ||||||
Deutsche Lufthansa AG, Registered(a) |
85,412 | 664,148 | ||||||
Deutsche Post AG, Registered |
2,934 | 176,570 | ||||||
HeidelbergCement AG |
43,032 | 2,994,535 | ||||||
HelloFresh SE(a) |
2,119 | 141,085 | ||||||
Henkel AG & Co. KGaA |
7,661 | 605,303 | ||||||
Infineon Technologies AG |
54,442 | 2,260,853 | ||||||
KION Group AG |
5,542 | 512,376 | ||||||
Merck KGaA |
4,238 | 929,386 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered |
3,912 | 1,238,480 | ||||||
Puma SE |
1,304 | 139,466 | ||||||
Rational AG |
163 | 136,646 | ||||||
SAP SE |
19,397 | 2,433,571 | ||||||
Siemens AG, Registered |
13,529 | 2,148,014 | ||||||
Telefonica Deutschland Holding AG |
73,676 | 211,507 | ||||||
United Internet AG, Registered(c) |
27,873 | 1,093,085 | ||||||
Zalando SE(a)(b) |
10,595 | 840,903 | ||||||
|
|
|||||||
27,953,544 | ||||||||
Hong Kong — 2.1% | ||||||||
AIA Group Ltd. |
521,600 | 5,445,405 | ||||||
Budweiser Brewing Co. APAC Ltd.(b) |
570,500 | 1,506,995 | ||||||
Futu Holdings Ltd., ADR(a) |
7,009 | 303,139 | ||||||
Hang Seng Bank Ltd. |
63,000 | 1,247,262 | ||||||
Hong Kong Exchanges & Clearing Ltd. |
20,700 | 1,181,467 | ||||||
Melco Resorts & Entertainment Ltd., ADR(a) |
39,120 | 413,107 | ||||||
MTR Corp. Ltd. |
56,000 | 303,118 | ||||||
Sands China Ltd.(a) |
52,800 | 147,230 | ||||||
SITC International Holdings Co. Ltd. |
18,000 | 68,609 | ||||||
Swire Pacific Ltd., Class A |
131,500 | 796,637 | ||||||
WH Group Ltd.(b) |
308,000 | 206,055 | ||||||
|
|
|||||||
11,619,024 | ||||||||
Ireland — 0.1% | ||||||||
Kerry Group PLC, Class A |
978 | 123,226 | ||||||
Smurfit Kappa Group PLC |
4,238 | 223,366 | ||||||
|
|
|||||||
346,592 | ||||||||
Israel — 0.4% | ||||||||
Bank Hapoalim BM |
22,331 | 231,745 | ||||||
Bank Leumi Le-Israel BM |
43,684 | 468,511 | ||||||
Fiverr International Ltd.(a) |
815 | 69,528 | ||||||
Inmode Ltd.(a) |
3,586 | 172,953 | ||||||
Israel Discount Bank Ltd., Class A |
35,045 | 235,006 | ||||||
Mizrahi Tefahot Bank Ltd. |
3,260 | 126,023 | ||||||
Nice Ltd.(a) |
2,934 | 751,038 | ||||||
Wix.com Ltd.(a) |
1,793 | 235,547 | ||||||
|
|
|||||||
2,290,351 |
Security | Shares | Value | ||||||
Italy — 2.2% | ||||||||
Amplifon SpA |
22,494 | $ | 956,132 | |||||
Enel SpA |
764,633 | 5,885,072 | ||||||
Intesa Sanpaolo SpA |
1,104,356 | 3,281,968 | ||||||
Poste Italiane SpA(b) |
62,429 | 837,959 | ||||||
UniCredit SpA |
86,064 | 1,367,851 | ||||||
|
|
|||||||
12,328,982 | ||||||||
Japan — 20.2% | ||||||||
Advantest Corp. |
2,500 | 212,781 | ||||||
Ajinomoto Co. Inc. |
28,900 | 806,353 | ||||||
Astellas Pharma Inc. |
79,900 | 1,289,631 | ||||||
Capcom Co. Ltd. |
3,300 | 79,664 | ||||||
Central Japan Railway Co. |
16,300 | 2,138,733 | ||||||
Chugai Pharmaceutical Co. Ltd. |
18,700 | 607,372 | ||||||
CyberAgent Inc. |
25,300 | 295,003 | ||||||
Daifuku Co. Ltd. |
10,300 | 715,075 | ||||||
Daiichi Sankyo Co. Ltd. |
41,800 | 939,245 | ||||||
Daikin Industries Ltd. |
17,900 | 3,757,998 | ||||||
Denso Corp. |
35,600 | 2,656,959 | ||||||
Eisai Co. Ltd. |
9,800 | 490,833 | ||||||
ENEOS Holdings Inc. |
437,300 | 1,741,602 | ||||||
Fast Retailing Co. Ltd. |
3,900 | 2,295,013 | ||||||
Fuji Electric Co. Ltd. |
21,100 | 1,127,716 | ||||||
FUJIFILM Holdings Corp. |
68,600 | 4,598,669 | ||||||
Fujitsu Ltd. |
25,900 | 3,423,936 | ||||||
Hankyu Hanshin Holdings Inc. |
38,700 | 1,127,000 | ||||||
Hitachi Ltd. |
4,900 | 254,682 | ||||||
Honda Motor Co. Ltd. |
199,800 | 5,884,664 | ||||||
Hoya Corp. |
3,000 | 389,005 | ||||||
Ibiden Co. Ltd. |
6,700 | 374,398 | ||||||
Inpex Corp. |
6,400 | 64,701 | ||||||
Ito En Ltd. |
1,800 | 96,955 | ||||||
Japan Metropolitan Fund Invest |
489 | 412,086 | ||||||
Japan Real Estate Investment Corp. |
163 | 896,328 | ||||||
JFE Holdings Inc. |
31,800 | 408,530 | ||||||
Komatsu Ltd. |
55,000 | 1,382,092 | ||||||
Kubota Corp. |
57,200 | 1,226,684 | ||||||
Kurita Water Industries Ltd. |
61,300 | 2,492,673 | ||||||
Kyocera Corp. |
14,500 | 894,234 | ||||||
M3 Inc. |
17,400 | 668,971 | ||||||
Mazda Motor Corp.(a) |
50,800 | 391,351 | ||||||
Mitsubishi Electric Corp. |
406,800 | 5,094,518 | ||||||
Mitsubishi Heavy Industries Ltd. |
48,900 | 1,328,094 | ||||||
Miura Co. Ltd. |
5,400 | 159,436 | ||||||
Murata Manufacturing Co. Ltd. |
6,600 | 496,210 | ||||||
NEC Corp. |
2,500 | 97,533 | ||||||
NGK Insulators Ltd. |
57,400 | 969,930 | ||||||
Nidec Corp. |
30,400 | 2,694,346 | ||||||
Nihon M&A Center Holdings Inc. |
16,300 | 256,614 | ||||||
Nintendo Co. Ltd. |
8,400 | 4,116,348 | ||||||
Nippon Building Fund Inc. |
163 | 943,956 | ||||||
Nippon Express Holdings Co., NVS |
17,400 | 1,031,189 | ||||||
Nippon Paint Holdings Co. Ltd. |
48,900 | 391,074 | ||||||
Nippon Prologis REIT Inc. |
489 | 1,525,796 | ||||||
Nippon Steel Corp. |
78,700 | 1,286,317 | ||||||
Nippon Telegraph & Telephone Corp. |
134,800 | 3,857,670 | ||||||
Nippon Yusen KK |
17,700 | 1,387,562 | ||||||
Nissan Chemical Corp. |
7,400 | 401,511 | ||||||
Nissan Motor Co. Ltd.(a) |
38,100 | 201,648 | ||||||
Nitto Denko Corp. |
6,600 | 513,874 | ||||||
Nomura Holdings Inc. |
161,100 | 711,667 |
S C H E D U L E O F I N V E S T M E N T S |
47 |
Schedule of Investments (unaudited) (continued) January 31, 2022 |
BlackRock World ex U.S. Carbon Transition Readiness ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Japan (continued) |
||||||||
Nomura Research Institute Ltd. |
18,900 | $ | 661,611 | |||||
NTT Data Corp. |
48,900 | 937,449 | ||||||
Olympus Corp. |
67,000 | 1,499,262 | ||||||
Omron Corp. |
37,500 | 2,741,605 | ||||||
Ono Pharmaceutical Co. Ltd. |
2,500 | 60,629 | ||||||
Oriental Land Co. Ltd./Japan |
5,900 | 1,027,092 | ||||||
Panasonic Corp. |
258,200 | 2,842,654 | ||||||
Persol Holdings Co. Ltd. |
8,200 | 211,690 | ||||||
Recruit Holdings Co. Ltd. |
55,300 | 2,733,400 | ||||||
Renesas Electronics Corp.(a) |
12,800 | 146,903 | ||||||
Ricoh Co. Ltd. |
11,300 | 95,422 | ||||||
Rinnai Corp. |
1,000 | 89,305 | ||||||
Rohm Co. Ltd. |
9,400 | 791,829 | ||||||
Sekisui Chemical Co. Ltd. |
160,000 | 2,797,438 | ||||||
Shin-Etsu Chemical Co. Ltd. |
8,200 | 1,371,936 | ||||||
Shiseido Co. Ltd. |
25,200 | 1,271,188 | ||||||
SoftBank Group Corp. |
3,600 | 159,478 | ||||||
Sony Group Corp. |
44,900 | 5,022,894 | ||||||
SUMCO Corp. |
52,500 | 967,894 | ||||||
Sumitomo Metal Mining Co. Ltd. |
26,900 | 1,242,503 | ||||||
Sysmex Corp. |
5,600 | 533,069 | ||||||
Takeda Pharmaceutical Co. Ltd. |
26,400 | 765,156 | ||||||
TDK Corp. |
11,100 | 400,875 | ||||||
Terumo Corp. |
1,800 | 65,707 | ||||||
Tokyo Electron Ltd. |
900 | 440,220 | ||||||
Toray Industries Inc. |
160,100 | 1,011,802 | ||||||
Toshiba Corp. |
35,600 | 1,474,197 | ||||||
TOTO Ltd. |
4,500 | 193,682 | ||||||
Toyota Industries Corp. |
18,500 | 1,443,158 | ||||||
Toyota Motor Corp. |
429,000 | 8,478,400 | ||||||
Yamaha Corp. |
1,700 | 77,444 | ||||||
Yamato Holdings Co. Ltd. |
9,500 | 202,295 | ||||||
|
|
|||||||
113,364,417 | ||||||||
Netherlands — 5.2% | ||||||||
Adyen NV(a)(b) |
163 | 331,688 | ||||||
Akzo Nobel NV |
54,931 | 5,685,779 | ||||||
ASML Holding NV |
13,040 | 8,831,920 | ||||||
CNH Industrial NV |
57,702 | 879,499 | ||||||
EXOR NV |
1,793 | 150,345 | ||||||
ING Groep NV |
214,834 | 3,177,202 | ||||||
Koninklijke Ahold Delhaize NV |
67,156 | 2,177,507 | ||||||
Koninklijke DSM NV |
7,661 | 1,436,134 | ||||||
Koninklijke Philips NV |
26,406 | 878,350 | ||||||
NN Group NV |
3,423 | 191,558 | ||||||
Prosus NV |
17,767 | 1,478,141 | ||||||
Stellantis NV |
36,349 | 701,858 | ||||||
STMicroelectronics NV |
63,570 | 2,989,108 | ||||||
|
|
|||||||
28,909,089 | ||||||||
New Zealand — 0.1% | ||||||||
Fisher & Paykel Healthcare Corp. Ltd. |
17,115 | 314,891 | ||||||
Mercury NZ Ltd. |
51,671 | 189,969 | ||||||
Meridian Energy Ltd. |
38,142 | 109,947 | ||||||
|
|
|||||||
614,807 | ||||||||
Norway — 1.0% | ||||||||
Aker BP ASA |
6,031 | 208,969 | ||||||
DNB Bank ASA |
34,882 | 830,198 | ||||||
Equinor ASA |
28,688 | 790,866 | ||||||
Norsk Hydro ASA |
356,970 | 2,743,425 | ||||||
Orkla ASA |
124,206 | 1,186,962 |
Security | Shares | Value | ||||||
Norway (continued) |
||||||||
Schibsted ASA, Class A |
3,608 | $ | 106,886 | |||||
|
|
|||||||
5,867,306 | ||||||||
Portugal — 0.3% | ||||||||
Galp Energia SGPS SA |
125,021 | 1,378,517 | ||||||
|
|
|||||||
Singapore — 0.9% | ||||||||
City Developments Ltd. |
132,700 | 697,070 | ||||||
DBS Group Holdings Ltd. |
87,100 | 2,287,844 | ||||||
Keppel Corp. Ltd. |
466,492 | 1,966,829 | ||||||
Sea Ltd., ADR(a) |
978 | 147,003 | ||||||
|
|
|||||||
5,098,746 | ||||||||
Spain — 3.0% | ||||||||
Amadeus IT Group SA(a) |
24,939 | 1,714,811 | ||||||
Banco Bilbao Vizcaya Argentaria SA |
221,517 | 1,414,304 | ||||||
Banco Santander SA |
625,594 | 2,193,709 | ||||||
CaixaBank SA |
1,073,362 | 3,453,413 | ||||||
EDP Renovaveis SA |
11,084 | 233,002 | ||||||
Iberdrola SA |
424,126 | 4,862,630 | ||||||
Iberdrola SA |
8,080 | 92,232 | ||||||
Industria de Diseno Textil SA |
27,440 | 832,239 | ||||||
Siemens Gamesa Renewable Energy SA(a) |
38,631 | 835,892 | ||||||
Telefonica SA |
227,497 | 1,060,493 | ||||||
|
|
|||||||
16,692,725 | ||||||||
Sweden — 3.4% | ||||||||
Alfa Laval AB |
10,595 | 357,912 | ||||||
Atlas Copco AB, Class A |
7,172 | 424,482 | ||||||
Boliden AB |
40,576 | 1,643,025 | ||||||
Electrolux AB, Class B |
92,095 | 1,916,238 | ||||||
EQT AB |
18,908 | 740,939 | ||||||
Evolution AB(b) |
5,053 | 628,680 | ||||||
Fastighets AB Balder, Class B(a) |
15,159 | 1,004,266 | ||||||
H & M Hennes & Mauritz AB, Class B |
3,888 | 77,413 | ||||||
Hexagon AB, Class B |
32,777 | 442,098 | ||||||
Husqvarna AB, Class B |
30,481 | 423,807 | ||||||
Investor AB, Class B |
70,416 | 1,528,867 | ||||||
Kinnevik AB, Class B(a) |
4,238 | 126,668 | ||||||
Lundin Energy AB |
66,504 | 2,704,577 | ||||||
Nibe Industrier AB, Class B |
72,091 | 685,193 | ||||||
Skandinaviska Enskilda Banken AB, Class A |
33,994 | 439,435 | ||||||
Svenska Handelsbanken AB, Class A |
16,626 | 177,192 | ||||||
Tele2 AB, Class B |
257,090 | 3,740,674 | ||||||
Telefonaktiebolaget LM Ericsson, Class B |
116,056 | 1,449,086 | ||||||
Telia Co. AB |
50,367 | 198,516 | ||||||
Volvo AB, Class B |
25,018 | 564,567 | ||||||
|
|
|||||||
19,273,635 | ||||||||
Switzerland — 9.0% | ||||||||
ABB Ltd., Registered |
147,026 | 5,097,653 | ||||||
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates, NVS |
163 | 1,891,673 | ||||||
Chocoladefabriken Lindt & Spruengli AG, Registered |
1 | 115,146 | ||||||
Coca-Cola HBC AG, Class DI |
10,432 | 345,514 | ||||||
Credit Suisse Group AG, Registered |
86,064 | 818,074 | ||||||
Geberit AG, Registered |
163 | 110,747 | ||||||
Givaudan SA, Registered |
978 | 4,051,780 | ||||||
Julius Baer Group Ltd. |
10,269 | 671,076 | ||||||
Nestle SA, Registered |
84,271 | 10,882,613 | ||||||
Novartis AG, Registered |
57,702 | 5,013,697 | ||||||
Partners Group Holding AG |
815 | 1,136,271 | ||||||
Roche Holding AG, Bearer |
2,774 | 1,142,323 |
48 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) (continued) January 31, 2022 |
BlackRock World ex U.S. Carbon Transition Readiness ETF (Percentages shown are based on Net Assets) |
Security | Shares | Value | ||||||
Switzerland (continued) |
||||||||
Roche Holding AG, NVS |
27,547 | $ | 10,660,666 | |||||
Schindler Holding AG, Participation Certificates, NVS |
1,141 | 286,373 | ||||||
Siemens Energy AG(a) |
6,968 | 156,730 | ||||||
Sonova Holding AG, Registered |
1,630 | 580,671 | ||||||
Straumann Holding AG, Registered |
326 | 540,209 | ||||||
Swiss Re AG |
9,291 | 1,012,327 | ||||||
UBS Group AG, Registered |
26,264 | 487,185 | ||||||
Zurich Insurance Group AG |
11,573 | 5,535,461 | ||||||
|
|
|||||||
50,536,189 | ||||||||
United Kingdom — 13.3% | ||||||||
3i Group PLC |
27,058 | 503,923 | ||||||
Abrdn PLC |
62,266 | 203,634 | ||||||
Associated British Foods PLC |
7,987 | 210,824 | ||||||
AstraZeneca PLC |
39,772 | 4,626,595 | ||||||
Auto Trader Group PLC(b) |
55,094 | 499,242 | ||||||
Aviva PLC |
155,339 | 917,121 | ||||||
Barclays PLC |
725,676 | 1,946,856 | ||||||
Barratt Developments PLC |
13,366 | 111,165 | ||||||
Berkeley Group Holdings PLC |
29,340 | 1,674,433 | ||||||
BP PLC |
556,971 | 2,887,294 | ||||||
British Land Co. PLC (The) |
32,111 | 240,111 | ||||||
BT Group PLC |
651,022 | 1,724,343 | ||||||
Coca-Cola Europacific Partners PLC |
51,345 | 2,934,367 | ||||||
Diageo PLC |
82,744 | 4,175,375 | ||||||
Entain PLC(a) |
58,843 | 1,273,913 | ||||||
Experian PLC |
55,583 | 2,321,584 | ||||||
Ferguson PLC |
23,790 | 3,741,939 | ||||||
GlaxoSmithKline PLC |
274,492 | 6,125,559 | ||||||
HSBC Holdings PLC |
643,850 | 4,582,498 | ||||||
Informa PLC(a) |
18,256 | 138,095 | ||||||
Intertek Group PLC |
2,608 | 189,264 | ||||||
J Sainsbury PLC |
514,917 | 2,023,390 | ||||||
JD Sports Fashion PLC |
269,405 | 690,799 | ||||||
Johnson Matthey PLC |
16,300 | 430,461 | ||||||
Land Securities Group PLC |
40,587 | 435,922 | ||||||
Lloyds Banking Group PLC |
2,470,917 | 1,714,744 | ||||||
London Stock Exchange Group PLC |
9,780 | 957,593 | ||||||
M&G PLC |
100,734 | 294,820 | ||||||
Natwest Group PLC |
244,663 | 804,154 | ||||||
Ocado Group PLC(a) |
11,573 | 235,807 | ||||||
Prudential PLC |
119,316 | 2,011,157 | ||||||
RELX PLC |
59,006 | 1,815,047 | ||||||
Rolls-Royce Holdings PLC(a) |
127,303 | 199,545 | ||||||
Sage Group PLC (The) |
39,446 | 385,465 | ||||||
Segro PLC |
158,599 | 2,796,061 | ||||||
Shell PLC |
215,323 | 5,531,371 |
Security | Shares | Value | ||||||
United Kingdom (continued) |
||||||||
Standard Chartered PLC |
82,478 | $ | 600,667 | |||||
Taylor Wimpey PLC |
161,859 | 332,063 | ||||||
Unilever PLC |
120,131 | 6,160,540 | ||||||
Vodafone Group PLC |
2,888,686 | 5,072,141 | ||||||
Whitbread PLC(a) |
14,670 | 603,635 | ||||||
WPP PLC |
17,278 | 270,928 | ||||||
|
|
|||||||
74,394,445 | ||||||||
United States — 0.0% | ||||||||
Block Inc. |
1,712 | 195,325 | ||||||
|
|
|||||||
Total
Common Stocks — 98.4% |
552,113,162 | |||||||
|
|
|||||||
Preferred Stocks |
||||||||
Germany — 0.8% | ||||||||
Bayerische Motoren Werke AG, Preference Shares, NVS |
12,062 | 1,043,920 | ||||||
Henkel AG & Co. KGaA, Preference Shares, NVS |
17,604 | 1,439,804 | ||||||
Sartorius AG, Preference Shares, NVS |
163 | 88,000 | ||||||
Volkswagen AG, Preference Shares, NVS |
8,150 | 1,697,418 | ||||||
|
|
|||||||
4,269,142 | ||||||||
|
|
|||||||
Total
Preferred Stocks — 0.8% |
4,269,142 | |||||||
|
|
|||||||
Short-Term Investments |
||||||||
Money Market Funds — 0.6% | ||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(d)(e) |
3,470,000 | 3,470,000 | ||||||
|
|
|||||||
Total
Short-Term Investments — 0.6% |
3,470,000 | |||||||
|
|
|||||||
Total
Investments in Securities — 99.8% |
559,852,304 | |||||||
Other Assets, Less Liabilities — 0.2% |
1,402,055 | |||||||
|
|
|||||||
Net Assets — 100.0% |
$ | 561,254,359 | ||||||
|
|
(a) |
Non-income producing security. |
(b) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(c) |
This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
(d) |
Affiliate of the Fund. |
(e) |
Annualized 7-day yield as of period end. |
S C H E D U L E O F I N V E S T M E N T S |
49 |
Schedule of Investments (unaudited) (continued) January 31, 2022 |
BlackRock World ex U.S. Carbon Transition Readiness ETF |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 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 07/31/21 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 01/31/22 |
Shares Held at 01/31/22 |
Income |
Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares(a) |
$ | — | $ | 18 | (b) | $ | — | $ | (18 | ) | $ | — | $ | — | — | $ | 4,335 | (c) | $ | — | ||||||||||||||||
BlackRock Cash Funds: Treasury, SL Agency Shares |
3,020,000 | 450,000 | (b) | — | — | — | 3,470,000 | 3,470,000 | 43 | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
$ | (18 | ) | $ | — | $ | 3,470,000 | $ | 4,378 | $ | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) |
As of period end, the entity is no longer held. |
(b) |
Represents net amount purchased (sold). |
(c) |
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
||||||||||||||||
Description |
Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
|
||||||||||||||||
Long Contracts |
||||||||||||||||
MSCI EAFE Index |
44 | 03/18/22 | $ | 4,918 | $ | (200,308 | ) | |||||||||
|
|
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 |
||||
|
||||
Liabilities — Derivative Financial Instruments |
||||
Futures contracts |
||||
Unrealized depreciation on futures contracts(a) |
$ | 200,308 | ||
|
|
(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 January 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 |
$ | (49,549 | ) | |
|
|
|||
Net Change in Unrealized Appreciation (Depreciation) on: |
||||
Futures contracts |
$ | (199,498 | ) | |
|
|
Average Quarterly Balances of Outstanding Derivative Financial Instruments
|
||||
Futures contracts: |
||||
Average notional value of contracts — long |
$ | 4,357,643 | ||
|
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
50 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) (continued) January 31, 2022 |
BlackRock World ex U.S. Carbon Transition Readiness ETF |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
||||||||||||||||
Investments |
||||||||||||||||
Assets |
||||||||||||||||
Common Stocks |
$ | 67,869,198 | $ | 484,243,964 | $ | — | $ | 552,113,162 | ||||||||
Preferred Stocks |
— | 4,269,142 | — | 4,269,142 | ||||||||||||
Money Market Funds |
3,470,000 | — | — | 3,470,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 71,339,198 | $ | 488,513,106 | $ | — | $ | 559,852,304 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial instruments(a) |
||||||||||||||||
Liabilities |
||||||||||||||||
Futures Contracts |
$ | (200,308 | ) | $ | — | $ | — | $ | (200,308 | ) | ||||||
|
|
|
|
|
|
|
|
(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 |
51 |
Statements of Assets and Liabilities (unaudited)
January 31, 2022
BlackRock Future Climate and Sustainable Economy ETF |
BlackRock Future Health ETF |
BlackRock Future Innovators ETF |
BlackRock Future Tech ETF |
|||||||||||||
|
||||||||||||||||
ASSETS |
||||||||||||||||
Investments in securities, at value (including securities on loan)(a): |
||||||||||||||||
Unaffiliated(b) |
$ | 4,601,537 | $ | 7,757,646 | $ | 13,388,733 | $ | 15,017,582 | ||||||||
Affiliated(c) |
97,993 | 868,465 | 1,251,750 | 2,538,911 | ||||||||||||
Cash |
4,502 | 1,172 | 2,741 | 1,290 | ||||||||||||
Foreign currency, at value(d) |
— | — | 1,515 | — | ||||||||||||
Receivables: |
||||||||||||||||
Investments sold |
72 | 45 | 338,230 | 13,215 | ||||||||||||
Securities lending income — Affiliated |
35 | 70 | 185 | 1,211 | ||||||||||||
Dividends |
1,145 | 409 | 507 | 1,066 | ||||||||||||
Tax reclaims |
— | 328 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
4,705,284 | 8,628,135 | 14,983,661 | 17,573,275 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES |
||||||||||||||||
Collateral on securities loaned, at value |
88,865 | 528,598 | 1,232,190 | 2,069,368 | ||||||||||||
Payables: |
||||||||||||||||
Investments purchased |
7,650 | 72,534 | 323,058 | — | ||||||||||||
Investment advisory fees |
2,860 | 6,001 | 9,562 | 12,397 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
99,375 | 607,133 | 1,564,810 | 2,081,765 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 4,605,909 | $ | 8,021,002 | $ | 13,418,851 | $ | 15,491,510 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS CONSIST OF: |
||||||||||||||||
Paid-in capital |
$ | 5,027,754 | $ | 8,256,133 | $ | 17,166,259 | $ | 17,761,793 | ||||||||
Accumulated loss |
(421,845 | ) | (235,131 | ) | (3,747,408 | ) | (2,270,283 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 4,605,909 | $ | 8,021,002 | $ | 13,418,851 | $ | 15,491,510 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares outstanding |
200,000 | 320,000 | 380,000 | 560,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net asset value |
$ | 23.03 | $ | 25.07 | $ | 35.31 | $ | 27.66 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares authorized |
Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Par value |
None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(a) Securities loaned, at value |
$ | 52,614 | $ | 532,596 | $ | 1,271,896 | $ | 2,177,327 | ||||||||
(b) Investments, at cost — Unaffiliated |
$ | 4,991,932 | $ | 8,108,907 | $ | 17,545,998 | $ | 16,237,612 | ||||||||
(c) Investments, at cost — Affiliated |
$ | 97,993 | $ | 868,465 | $ | 1,251,750 | $ | 2,538,911 | ||||||||
(d) Foreign currency, at cost |
$ | — | $ | — | $ | 1,542 | $ | — |
See notes to financial statements.
52 |
2 0 2 2 B L A C K R O C K S E M I - 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 (unaudited) (continued)
January 31, 2022
BlackRock Future U.S. Themes ETF |
BlackRock U.S. Carbon Transition Readiness ETF |
BlackRock U.S. Equity Factor Rotation ETF |
BlackRock World ex U.S. Carbon Transition Readiness ETF |
|||||||||||||
|
||||||||||||||||
ASSETS |
||||||||||||||||
Investments in securities, at value (including securities on loan)(a): |
||||||||||||||||
Unaffiliated(b) |
$ | 4,724,341 | $ | 1,530,134,901 | $ | 127,879,995 | $ | 556,382,304 | ||||||||
Affiliated(c) |
50,000 | 19,325,458 | 1,131,089 | 3,470,000 | ||||||||||||
Cash |
8,728 | 257,373 | 8,256 | 40,329 | ||||||||||||
Foreign currency, at value(d) |
— | — | — | 235,019 | ||||||||||||
Cash pledged: |
||||||||||||||||
Futures contracts |
3,000 | 513,000 | — | 211,000 | ||||||||||||
Receivables: |
||||||||||||||||
Investments sold |
— | — | 1,330 | 806,707 | ||||||||||||
Securities lending income — Affiliated |
— | 901 | 107 | 33 | ||||||||||||
Variation margin on futures contracts |
810 | 190,305 | — | 71,280 | ||||||||||||
Capital shares sold |
— | — | 13,708 | — | ||||||||||||
Dividends |
1,824 | 1,128,217 | 72,119 | 333,255 | ||||||||||||
Tax reclaims |
— | — | — | 328,113 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
4,788,703 | 1,551,550,155 | 129,106,604 | 561,878,040 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES |
||||||||||||||||
Collateral on securities loaned, at value |
— | 3,390,747 | 979,465 | — | ||||||||||||
Payables: |
||||||||||||||||
Investments purchased |
— | — | 1,330 | 526,640 | ||||||||||||
Capital shares redeemed |
— | — | 26,526 | — | ||||||||||||
Investment advisory fees |
2,460 | 189,568 | 21,158 | 97,041 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
2,460 | 3,580,315 | 1,028,479 | 623,681 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 4,786,243 | $ | 1,547,969,840 | $ | 128,078,125 | $ | 561,254,359 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS CONSIST OF: |
||||||||||||||||
Paid-in capital |
$ | 4,956,026 | $ | 1,442,616,827 | $ | 115,136,745 | $ | 568,721,582 | ||||||||
Accumulated earnings (loss) |
(169,783 | ) | 105,353,013 | 12,941,380 | (7,467,223 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
$ | 4,786,243 | $ | 1,547,969,840 | $ | 128,078,125 | $ | 561,254,359 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares outstanding |
200,000 | 30,425,000 | 3,675,000 | 12,225,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net asset value |
$ | 23.93 | $ | 50.88 | $ | 34.85 | $ | 45.91 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Shares authorized |
Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Par value |
None | None | None | None | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(a) Securities loaned, at value |
$ | — | $ | 3,609,546 | $ | 991,394 | $ | — | ||||||||
(b) Investments, at cost — Unaffiliated |
$ | 4,881,027 | $ | 1,434,262,195 | $ | 124,588,580 | $ | 558,519,405 | ||||||||
(c) Investments, at cost — Affiliated |
$ | 50,000 | $ | 19,274,625 | $ | 1,131,089 | $ | 3,470,000 | ||||||||
(d) Foreign currency, at cost |
$ | — | $ | — | $ | — | $ | 235,895 |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
53 |
Statements of Operations (unaudited)
Six Months Ended January 31, 2022
BlackRock Future Climate and Sustainable Economy |
|
|
BlackRock Future Health |
|
|
BlackRock Future Innovators |
|
|
BlackRock Future Tech |
| ||||||||||||
ETF | (a) | ETF | ETF | ETF | ||||||||||||||||||
|
||||||||||||||||||||||
INVESTMENT INCOME |
||||||||||||||||||||||
Dividends — Unaffiliated |
$ | 17,521 | $ | 7,063 | $ | 7,982 | $ | 8,851 | ||||||||||||||
Dividends — Affiliated |
2 | 11 | 1 | 18 | ||||||||||||||||||
Securities lending income — Affiliated — net |
70 | 519 | 1,396 | 13,030 | ||||||||||||||||||
Foreign taxes withheld |
(1,356 | ) | (276 | ) | — | (608 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Total investment income |
|
16,237 | 7,317 | 9,379 | 21,291 | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
EXPENSES |
||||||||||||||||||||||
Investment advisory fees |
17,335 | 32,260 | 80,955 | 84,201 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Total expenses |
17,335 | 32,260 | 80,955 | 84,201 | ||||||||||||||||||
Less: |
||||||||||||||||||||||
Investment advisory fees waived |
(19 | ) | (104 | ) | (18 | ) | (193 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Total expenses after fees waived |
17,316 | 32,156 | 80,937 | 84,008 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Net investment loss |
(1,079 | ) | (24,839 | ) | (71,558 | ) | (62,717 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||||||||
Investments — Unaffiliated |
(22,110 | ) | 144,308 | (610,638 | ) | (1,197,261 | ) | |||||||||||||||
Investments — Affiliated |
(12 | ) | (88 | ) | (273 | ) | (284 | ) | ||||||||||||||
In-kind redemptions — Unaffiliated |
— | — | 1,392,037 | 963,680 | ||||||||||||||||||
Foreign currency transactions |
(565 | ) | 52 | 69 | (216 | ) | ||||||||||||||||
Payment by affiliate |
— | 1,269 | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Net realized gain (loss) |
(22,687 | ) | 145,541 | 781,195 | (234,081 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||||||||
Investments — Unaffiliated |
(390,395 | ) | (1,559,380 | ) | (6,094,837 | ) | (4,235,942 | ) | ||||||||||||||
Foreign currency translations |
18 | (6 | ) | (35 | ) | (30 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) |
(390,377 | ) | (1,559,386 | ) | (6,094,872 | ) | (4,235,972 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Net realized and unrealized loss |
(413,064 | ) | (1,413,845 | ) | (5,313,677 | ) | (4,470,053 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (414,143 | ) | $ | (1,438,684 | ) | $ | (5,385,235 | ) | $ | (4,532,770 | ) | ||||||||||
|
|
|
|
|
|
|
|
(a) |
For the period from August 03, 2021 (commencement of operations) to January 31, 2022. |
See notes to financial statements.
54 |
2 0 2 2 B L A C K R O C K S E M I - 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 Operations (unaudited) (continued)
Six Months Ended January 31, 2022
BlackRock Future U.S. Themes |
|
BlackRock U.S. Carbon Transition |
|
BlackRock U.S. Equity Factor Rotation |
|
BlackRock World ex U.S. Carbon Transition |
| |||||||||||||||||
ETF | (a) | Readiness ETF | ETF | Readiness ETF | ||||||||||||||||||||
|
||||||||||||||||||||||||
INVESTMENT INCOME |
||||||||||||||||||||||||
Dividends — Unaffiliated |
$ | 4,338 | $ | 10,133,989 | $ | 618,031 | $ | 5,768,231 | ||||||||||||||||
Dividends — Affiliated |
— | 48,400 | 8 | 43 | ||||||||||||||||||||
Non-cash dividends — Unaffiliated |
— | — | — | 455,126 | ||||||||||||||||||||
Securities lending income — Affiliated — net |
— | 8,183 | 811 | 4,335 | ||||||||||||||||||||
Foreign taxes withheld |
|
— |
|
(7,178 | ) |
|
(356 | ) |
|
(462,967 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total investment income |
4,338 | 10,183,394 | 618,494 | 5,764,768 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
EXPENSES |
||||||||||||||||||||||||
Investment advisory fees |
3,867 | 2,232,898 | 163,709 | 1,043,627 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total expenses |
3,867 | 2,232,898 | 163,709 | 1,043,627 | ||||||||||||||||||||
Less: |
||||||||||||||||||||||||
Investment advisory fees waived |
(3 | ) | (1,144,917 | ) | (54,570 | ) | (447,724 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total expenses after fees waived |
3,864 | 1,087,981 | 109,139 | 595,903 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net investment income |
474 | 9,095,413 | 509,355 | 5,168,865 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||||||||||
Investments — Unaffiliated |
(11,965 | ) | 21,306,145 | (3,437,663 | ) | (4,534,284 | ) | |||||||||||||||||
Investments — Affiliated |
— | (5,658 | ) | 169 | (18 | ) | ||||||||||||||||||
In-kind redemptions — Unaffiliated |
— | 5,491,561 | 13,955,273 | 650,628 | ||||||||||||||||||||
In-kind redemptions — Affiliated |
— | 24,634 | — | — | ||||||||||||||||||||
Futures contracts |
— | 771,344 | — | (49,549 | ) | |||||||||||||||||||
Foreign currency transactions |
— | — | 2 | (103,354 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net realized gain (loss) |
(11,965 | ) | 27,588,026 | 10,517,781 | (4,036,577 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||||||||||
Investments — Unaffiliated |
(156,686 | ) | (1,352,238 | ) | (14,226,524 | ) | (18,400,051 | ) | ||||||||||||||||
Investments — Affiliated |
— | (322,236 | ) | (203 | ) | — | ||||||||||||||||||
Futures contracts |
(1,606 | ) | (705,615 | ) | — | (199,498 | ) | |||||||||||||||||
Foreign currency translations |
— | — | — | (13,088 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net change in unrealized appreciation (depreciation) |
(158,292 | ) | (2,380,089 | ) | (14,226,727 | ) | (18,612,637 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net realized and unrealized gain (loss) |
(170,257 | ) | 25,207,937 | (3,708,946 | ) | (22,649,214 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (169,783 | ) | $ | 34,303,350 | $ | (3,199,591 | ) | $ | (17,480,349 | ) | |||||||||||||
|
|
|
|
|
|
|
|
(a) |
For the period from December 14, 2021 (commencement of operations) to January 31, 2022. |
See notes to financial statements.
F I N A N C I A L S T A T E M E N T S |
55 |
Statements of Changes in Net Assets
BlackRock Future Climate and Sustainable Economy ETF |
BlackRock Future Health ETF |
|||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Period From |
Six Months | |||||||||||||||||||||||
08/03/21 | (a) | Ended | Period From | |||||||||||||||||||||
to 01/31/22 | 01/31/22 | 09/29/20 | (a) | |||||||||||||||||||||
(unaudited) | (unaudited) | to 07/31/21 | ||||||||||||||||||||||
|
||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||||||
Net investment loss |
$ | (1,079 | ) | $ | (24,839 | ) | $ | (36,885 | ) | |||||||||||||||
Net realized gain (loss) |
(22,687 | ) | 145,541 | (4,280 | ) | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) |
(390,377 | ) | (1,559,386 | ) | 1,208,117 | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) in net assets resulting from operations |
(414,143 | ) | (1,438,684 | ) | 1,166,952 | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) |
||||||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(7,702 | ) | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||||||
Net increase in net assets derived from capital share transactions |
5,027,754 | 2,251,107 | 6,041,627 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
NET ASSETS |
||||||||||||||||||||||||
Total increase in net assets |
4,605,909 | 812,423 | 7,208,579 | |||||||||||||||||||||
Beginning of period |
— | 7,208,579 | — | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
End of period |
$ | 4,605,909 | $ | 8,021,002 | $ | 7,208,579 | ||||||||||||||||||
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
56 |
2 0 2 2 B L A C K R O C K S E M I - 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)
BlackRock Future Innovators ETF |
BlackRock Future Tech ETF |
|||||||||||||||
|
|
|
|
|||||||||||||
|
Six Months Ended 01/31/22 (unaudited) |
|
|
Period From 09/29/20 to 07/31/21 |
(a)
|
|
Six Months Ended 01/31/22 (unaudited) |
|
|
Period From 09/29/20 to 07/31/21 |
(a)
| |||||
|
||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||
OPERATIONS |
||||||||||||||||
Net investment loss |
$ | (71,558 | ) | $ | (87,303 | ) | $ | (62,717 | ) | $ | (68,698 | ) | ||||
Net realized gain (loss) |
781,195 | (301,048 | ) | (234,081 | ) | (698,086 | ) | |||||||||
Net change in unrealized appreciation (depreciation) |
(6,094,872 | ) | 1,937,581 | (4,235,972 | ) | 3,015,932 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in net assets resulting from operations |
(5,385,235 | ) | 1,549,230 | (4,532,770 | ) | 2,249,148 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) |
||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
(4,220,693 | ) | 21,475,549 | (294,540 | ) | 18,069,672 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
||||||||||||||||
Total increase (decrease) in net assets |
(9,605,928 | ) | 23,024,779 | (4,827,310 | ) | 20,318,820 | ||||||||||
Beginning of period |
23,024,779 | — | 20,318,820 | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
End of period |
$ | 13,418,851 | $ | 23,024,779 | $ | 15,491,510 | $ | 20,318,820 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
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 |
57 |
Statements of Changes in Net Assets (continued)
BlackRock Future U.S. Themes ETF |
BlackRock U.S. Carbon Transition Readiness ETF |
|||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Period From |
||||||||||||||||||||||||
12/14/21 | (a) | Six Months Ended | Period From | |||||||||||||||||||||
to 01/31/22 | 01/31/22 | 04/06/21 | (a) | |||||||||||||||||||||
(unaudited) | (unaudited) | to 07/31/21 | ||||||||||||||||||||||
|
||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||||||||||
OPERATIONS |
||||||||||||||||||||||||
Net investment income |
$ | 474 | $ | 9,095,413 | $ | 4,524,119 | ||||||||||||||||||
Net realized gain (loss) |
(11,965 | ) | 27,588,026 | 4,006,023 | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) |
(158,292 | ) | (2,380,089 | ) | 97,922,108 | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) in net assets resulting from operations |
(169,783 | ) | 34,303,350 | 106,452,250 | ||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) |
||||||||||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
— | (32,760,428 | ) | (2,591,883 | ) | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
4,956,026 | 122,538,038 | 1,320,028,513 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
NET ASSETS |
||||||||||||||||||||||||
Total increase (decrease) in net assets |
4,786,243 | 124,080,960 | 1,423,888,880 | |||||||||||||||||||||
Beginning of period |
— | 1,423,888,880 | — | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
End of period |
$ | 4,786,243 | $ | 1,547,969,840 | $ | 1,423,888,880 | ||||||||||||||||||
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
58 |
2 0 2 2 B L A C K R O C K S E M I - 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)
BlackRock U.S. Equity Factor Rotation ETF |
BlackRock World ex U.S. Carbon Transition Readiness ETF |
|||||||||||||||
|
|
|
|
|||||||||||||
|
Six Months Ended 01/31/22 (unaudited) |
|
|
Year Ended 07/31/21 |
|
|
Six Months Ended 01/31/22 (unaudited) |
|
|
Period From 04/06/21 to 07/31/21 |
(a)
| |||||
|
||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
||||||||||||||||
OPERATIONS |
||||||||||||||||
Net investment income |
$ | 509,355 | $ | 1,219,829 | $ | 5,168,865 | $ | 4,804,596 | ||||||||
Net realized gain (loss) |
10,517,781 | 18,458,292 | (4,036,577 | ) | 1,889,479 | |||||||||||
Net change in unrealized appreciation (depreciation) |
(14,226,727 | ) | 8,499,375 | (18,612,637 | ) | 16,258,168 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in net assets resulting from operations |
(3,199,591 | ) | 28,177,496 | (17,480,349 | ) | 22,952,243 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
DISTRIBUTIONS TO SHAREHOLDERS(b) |
||||||||||||||||
Decrease in net assets resulting from distributions to shareholders |
(5,245,042 | ) | (1,313,062 | ) | (9,087,234 | ) | (3,851,883 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
CAPITAL SHARE TRANSACTIONS |
||||||||||||||||
Net increase (decrease) in net assets derived from capital share transactions |
40,234,573 | (20,568,074 | ) | (17,777,520 | ) | 586,499,102 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
NET ASSETS |
||||||||||||||||
Total increase (decrease) in net assets |
31,789,940 | 6,296,360 | (44,345,103 | ) | 605,599,462 | |||||||||||
Beginning of period |
96,288,185 | 89,991,825 | 605,599,462 | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
End of period |
$ | 128,078,125 | $ | 96,288,185 | $ | 561,254,359 | $ | 605,599,462 | ||||||||
|
|
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
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 |
59 |
(For a share outstanding throughout the period)
BlackRock Future Climate and Sustainable Economy ETF |
||||||||
Period From |
||||||||
08/03/21 | (a) | |||||||
to 01/31/22 | ||||||||
(unaudited) | ||||||||
|
||||||||
Net asset value, beginning of period |
$ | 25.14 | ||||||
|
|
|||||||
Net investment loss(b) |
(0.01 | ) | ||||||
Net realized and unrealized loss(c) |
(2.06 | ) | ||||||
|
|
|||||||
Net decrease from investment operations |
(2.07 | ) | ||||||
|
|
|||||||
Distributions(d) |
||||||||
From net investment income |
(0.04 | ) | ||||||
|
|
|||||||
Total distributions |
(0.04 | ) | ||||||
|
|
|||||||
Net asset value, end of period |
$ | 23.03 | ||||||
|
|
|||||||
Total Return(e) |
||||||||
Based on net asset value |
(8.25 | )%(f) | ||||||
|
|
|||||||
Ratios to Average Net Assets(g) |
||||||||
Total expenses |
0.70 | %(h) | ||||||
|
|
|||||||
Total expenses after fees waived |
0.70 | %(h) | ||||||
|
|
|||||||
Net investment loss |
(0.04 | )%(h) | ||||||
|
|
|||||||
Supplemental Data |
||||||||
Net assets, end of period (000) |
$ | 4,606 | ||||||
|
|
|||||||
Portfolio turnover rate(i) |
25 | %(f) | ||||||
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amount reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
60 |
2 0 2 2 B L A C K R O C K S E M I - 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)
BlackRock Future Health ETF | ||||||||||||||
|
||||||||||||||
Six Months Ended | Period From | |||||||||||||
01/31/22 | 09/29/20 | (a) | ||||||||||||
(unaudited) |
to 07/31/21 | |||||||||||||
|
||||||||||||||
Net asset value, beginning of period |
$ | 30.04 | $ | 25.13 | ||||||||||
|
|
|
|
|||||||||||
Net investment loss(b) |
(0.09 | ) | (0.15 | ) | ||||||||||
Net realized and unrealized gain (loss)(c) |
(4.88 | ) | 5.06 | |||||||||||
|
|
|
|
|||||||||||
Net increase (decrease) from investment operations |
(4.97 | ) | 4.91 | |||||||||||
|
|
|
|
|||||||||||
Net asset value, end of period |
$ | 25.07 | $ | 30.04 | ||||||||||
|
|
|
|
|||||||||||
Total Return(d) |
||||||||||||||
Based on net asset value |
(16.55 | )%(e)(f) | 19.50 | %(e) | ||||||||||
|
|
|
|
|||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||
Total expenses |
0.85 | %(h) | 0.85 | %(h) | ||||||||||
|
|
|
|
|||||||||||
Total expenses after fees waived |
0.85 | %(h) | 0.85 | %(h) | ||||||||||
|
|
|
|
|||||||||||
Net investment loss |
(0.65 | )%(h) | (0.64 | )%(h) | ||||||||||
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||
Net assets, end of period (000) |
$ | 8,021 | $ | 7,209 | ||||||||||
|
|
|
|
|||||||||||
Portfolio turnover rate(i) |
49 | %(e) | 39 | %(e) | ||||||||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Not annualized. |
(f) |
Includes payment received from an affiliate, which had no impact on the Fund’s total return. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
61 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
BlackRock Future Innovators ETF | ||||||||||||||
|
||||||||||||||
Six Months Ended | Period From | |||||||||||||
01/31/22 | 09/29/20 | (a) | ||||||||||||
(unaudited) |
|
to 07/31/21 | ||||||||||||
|
||||||||||||||
Net asset value, beginning of period |
|
$ | 50.05 | $ | 35.18 | |||||||||
|
|
|
|
|||||||||||
Net investment loss(b) |
(0.17 | ) | (0.27 | ) | ||||||||||
Net realized and unrealized gain (loss)(c) |
(14.57 | ) | 15.14 | |||||||||||
|
|
|
|
|||||||||||
Net increase (decrease) from investment operations |
(14.74 | ) | 14.87 | |||||||||||
|
|
|
|
|||||||||||
Net asset value, end of period |
$ | 35.31 | $ | 50.05 | ||||||||||
|
|
|
|
|||||||||||
Total Return(d) |
||||||||||||||
Based on net asset value |
(29.43 | )%(e) | 42.27 | %(e) | ||||||||||
|
|
|
|
|||||||||||
Ratios to Average Net Assets(f) |
||||||||||||||
Total expenses |
0.80 | %(g) | 0.80 | %(g) | ||||||||||
|
|
|
|
|||||||||||
Total expenses after fees waived |
0.80 | %(g) | 0.80 | %(g) | ||||||||||
|
|
|
|
|||||||||||
Net investment loss |
(0.71 | )%(g) | (0.67 | )%(g) | ||||||||||
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||
Net assets, end of period (000) |
$ | 13,419 | $ | 23,025 | ||||||||||
|
|
|
|
|||||||||||
Portfolio turnover rate(h) |
22 | %(e) | 50 | %(e) | ||||||||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Not annualized. |
(f) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
62 |
2 0 2 2 B L A C K R O C K S E M I - 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)
BlackRock Future Tech ETF |
||||||||||||||
Six Months Ended | Period From | |||||||||||||
01/31/22 |
|
09/29/20 | (a) | |||||||||||
(unaudited) | to 07/31/21 | |||||||||||||
|
||||||||||||||
Net asset value, beginning of period |
|
$ | 36.28 | $ | 25.25 | |||||||||
|
|
|
|
|||||||||||
Net investment loss(b) |
(0.12 | ) | (0.18 | ) | ||||||||||
Net realized and unrealized gain (loss)(c) |
(8.50 | ) | 11.21 | |||||||||||
|
|
|
|
|||||||||||
Net increase (decrease) from investment operations |
(8.62 | ) | 11.03 | |||||||||||
|
|
|
|
|||||||||||
Net asset value, end of period |
|
$ | 27.66 | $ | 36.28 | |||||||||
|
|
|
|
|||||||||||
Total Return(d) |
||||||||||||||
Based on net asset value |
(23.76 | )%(e) | 43.68 | %(e) | ||||||||||
|
|
|
|
|||||||||||
Ratios to Average Net Assets(f) |
||||||||||||||
Total expenses |
0.88 | %(g) | 0.88 | %(g) | ||||||||||
|
|
|
|
|||||||||||
Total expenses after fees waived |
0.88 | %(g) | 0.88 | %(g) | ||||||||||
|
|
|
|
|||||||||||
Net investment loss |
(0.66 | )%(g) | (0.64 | )%(g) | ||||||||||
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||
Net assets, end of period (000) |
$ | 15,492 | $ | 20,319 | ||||||||||
|
|
|
|
|||||||||||
Portfolio turnover rate(h) |
23 | %(e) | 38 | %(e) | ||||||||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Where applicable, assumes the reinvestment of distributions. |
(e) |
Not annualized. |
(f) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Annualized. |
(h) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
63 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
BlackRock Future U.S. Themes ETF |
||||||
Period From |
| |||||
12/14/21 | (a) | |||||
to 01/31/22 | ||||||
(unaudited) | ||||||
|
||||||
Net asset value, beginning of period |
|
$ | 24.78 | |||
|
|
|||||
Net investment income(b) |
0.00 | (c) | ||||
Net realized and unrealized loss(d) |
(0.85 | ) | ||||
|
|
|||||
Net decrease from investment operations |
(0.85 | ) | ||||
|
|
|||||
Net asset value, end of period |
$ | 23.93 | ||||
|
|
|||||
Total Return(e) |
||||||
Based on net asset value |
(3.43 | )%(f) | ||||
|
|
|||||
Ratios to Average Net Assets(g) |
||||||
Total expenses |
0.60 | %(h) | ||||
|
|
|||||
Total expenses after fees waived |
0.60 | %(h) | ||||
|
|
|||||
Net investment income |
0.07 | %(h) | ||||
|
|
|||||
Supplemental Data |
||||||
Net assets, end of period (000) |
$ | 4,786 | ||||
|
|
|||||
Portfolio turnover rate(i) |
8 | %(f) | ||||
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
Rounds to less than $0.01. |
(d) |
The amount 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. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
64 |
2 0 2 2 B L A C K R O C K S E M I - 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)
BlackRock U.S. Carbon Transition Readiness ETF | ||||||||||||||||
|
|
|||||||||||||||
Six Months Ended | Period From | |||||||||||||||
01/31/22 | 04/06/21 | (a) | ||||||||||||||
(unaudited) | to 07/31/21 | |||||||||||||||
|
||||||||||||||||
Net asset value, beginning of period |
$ | 50.58 | $ | 46.60 | ||||||||||||
|
|
|
|
|||||||||||||
Net investment income(b) |
0.31 | 0.17 | ||||||||||||||
Net realized and unrealized gain(c) |
1.08 | 3.90 | ||||||||||||||
|
|
|
|
|||||||||||||
Net increase from investment operations |
1.39 | 4.07 | ||||||||||||||
|
|
|
|
|||||||||||||
Distributions(d) |
||||||||||||||||
From net investment income |
(0.32 | ) | (0.09 | ) | ||||||||||||
From net realized gain |
(0.77 | ) | — | |||||||||||||
|
|
|
|
|||||||||||||
Total distributions |
(1.09 | ) | (0.09 | ) | ||||||||||||
|
|
|
|
|||||||||||||
Net asset value, end of period |
$ | 50.88 | $ | 50.58 | ||||||||||||
|
|
|
|
|||||||||||||
Total Return(e) |
||||||||||||||||
Based on net asset value |
2.69 | %(f) | 8.74 | %(f) | ||||||||||||
|
|
|
|
|||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||
Total expenses |
0.29 | %(h) | 0.29 | %(h) | ||||||||||||
|
|
|
|
|||||||||||||
Total expenses after fees waived |
0.14 | %(h) | 0.14 | %(h) | ||||||||||||
|
|
|
|
|||||||||||||
Net investment income |
1.19 | %(h) | 1.07 | %(h) | ||||||||||||
|
|
|
|
|||||||||||||
Supplemental Data |
||||||||||||||||
Net assets, end of period (000) |
$ | 1,547,970 | $ | 1,423,889 | ||||||||||||
|
|
|
|
|||||||||||||
Portfolio turnover rate(i) |
40 | %(f) | 13 | %(f) | ||||||||||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
65 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
BlackRock U.S. Equity Factor Rotation ETF |
||||||||||||||||||||||||||||||
Six Months Ended |
|
Period From | ||||||||||||||||||||||||||||
01/31/22 |
|
Year Ended | Year Ended | 03/19/19 | (a) | |||||||||||||||||||||||||
(unaudited) |
|
07/31/21 | |
07/31/20 |
|
to 07/31/19 | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||
Net asset value, beginning of period |
|
$ | 37.03 | $ | 27.27 | $ | 26.52 | $ | 25.00 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net investment income(b) |
0.18 | 0.45 | 0.52 | 0.16 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss)(c) |
(0.60 | ) | 9.78 | 0.67 | 1.48 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net increase (decrease) from investment operations |
(0.42 | ) | 10.23 | 1.19 | 1.64 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Distributions(d) |
||||||||||||||||||||||||||||||
From net investment income |
(0.19 | ) | (0.47 | ) | (0.44 | ) | (0.12 | ) | ||||||||||||||||||||||
From net realized gain |
(1.57 | ) | — | — | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total distributions |
(1.76 | ) | (0.47 | ) | (0.44 | ) | (0.12 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net asset value, end of period |
$ | 34.85 | $ | 37.03 | $ | 27.27 | $ | 26.52 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total Return(e) |
||||||||||||||||||||||||||||||
Based on net asset value |
(1.39 | )%(f) | 37.87 | % | 4.61 | % | 6.59 | %(f) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||||||||||||||||||
Total expenses |
0.30 | %(h) | 0.30 | % | 0.30 | % | 0.30 | %(h) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total expenses after fees waived |
0.20 | %(h) | 0.20 | % | 0.20 | % | 0.20 | %(h) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net investment income |
0.93 | %(h) | 1.41 | % | 1.97 | % | 1.74 | %(h) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||||
Net assets, end of period (000) |
$ | 128,078 | $ | 96,288 | $ | 89,992 | $ | 21,214 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Portfolio turnover rate(i) |
32 | %(f) | 146 | % | 175 | % | 42 | %(f) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
66 |
2 0 2 2 B L A C K R O C K S E M I - 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)
BlackRock World ex U.S. Carbon Transition Readiness ETF | ||||||||||||||
Six Months Ended |
Period From | |||||||||||||
01/31/22 | 04/06/21 | (a) | ||||||||||||
(unaudited) | to 07/31/21 | |||||||||||||
|
||||||||||||||
Net asset value, beginning of period |
$ | 48.06 | $ | 46.16 | ||||||||||
|
|
|
|
|||||||||||
Net investment income(b) |
0.42 | 0.39 | ||||||||||||
Net realized and unrealized gain (loss)(c) |
(1.83 | ) | 1.82 | |||||||||||
|
|
|
|
|||||||||||
Net increase (decrease) from investment operations |
(1.41 | ) | 2.21 | |||||||||||
|
|
|
|
|||||||||||
Distributions(d) |
||||||||||||||
From net investment income |
(0.53 | ) | (0.31 | ) | ||||||||||
From net realized gain |
(0.21 | ) | — | |||||||||||
|
|
|
|
|||||||||||
Total distributions |
(0.74 | ) | (0.31 | ) | ||||||||||
|
|
|
|
|||||||||||
Net asset value, end of period |
$ | 45.91 | $ | 48.06 | ||||||||||
|
|
|
|
|||||||||||
Total Return(e) |
||||||||||||||
Based on net asset value |
(2.94 | )%(f) | 4.77 | %(f) | ||||||||||
|
|
|
|
|||||||||||
Ratios to Average Net Assets(g) |
||||||||||||||
Total expenses |
0.35 | %(h) | 0.35 | %(h) | ||||||||||
|
|
|
|
|||||||||||
Total expenses after fees waived |
0.20 | %(h) | 0.20 | %(h) | ||||||||||
|
|
|
|
|||||||||||
Net investment income |
1.73 | %(h) | 2.58 | %(h) | ||||||||||
|
|
|
|
|||||||||||
Supplemental Data |
||||||||||||||
Net assets, end of period (000) |
$ | 561,254 | $ | 605,599 | ||||||||||
|
|
|
|
|||||||||||
Portfolio turnover rate(i) |
39 | %(f) | 19 | %(f) | ||||||||||
|
|
|
|
(a) |
Commencement of operations. |
(b) |
Based on average shares outstanding. |
(c) |
The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. |
(d) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
(e) |
Where applicable, assumes the reinvestment of distributions. |
(f) |
Not annualized. |
(g) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(h) |
Annualized. |
(i) |
Portfolio turnover rate excludes in-kind transactions. |
See notes to financial statements.
F I N A N C I A L H I G H L I G H T S |
67 |
Notes to Financial Statements (unaudited)
1. |
ORGANIZATION |
BlackRock ETF 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”):
BlackRock ETF |
Diversification Classification |
|||
Future Climate and Sustainable Economy(a) |
Non-diversified | |||
Future Health |
Non-diversified | |||
Future Innovators |
Non-diversified | |||
Future Tech |
Non-diversified | |||
Future U.S. Themes(b) |
Non-diversified | |||
U.S. Carbon Transition Readiness |
Non-diversified | |||
U.S. Equity Factor Rotation |
Non-diversified | |||
World ex U.S. Carbon Transition Readiness |
Non-diversified |
(a) |
The Fund commenced operations on August 03, 2021. |
(b) |
The Fund commenced operations on December 14, 2021. |
The Funds, together with certain other registered investment companies advised by BlackRock Fund Advisors (“BFA” or the “Manager”) or its affiliates, are included in a complex of open-end equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.
2. |
SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.
Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: 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 January 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
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Notes to Financial Statements (unaudited) (continued)
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.
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. |
Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the 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 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.
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 |
69 |
Notes to Financial Statements (unaudited) (continued)
4. |
SECURITIES AND OTHER INVESTMENTS |
Warrants: Warrants entitle a fund to purchase a specified number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any. If the price of the underlying stock does not rise above the strike price before the warrant expires, the warrant generally expires without any value and a fund will lose any amount it paid for the warrant. Thus, investments in warrants may involve more risk than investments in common stock. Warrants may trade in the same markets as their underlying stock; however, the price of the warrant does not necessarily move with the price of the underlying stock.
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.
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:
|
||||||||||||||||
BlackRock ETF and Counterparty |
|
Market Value of Securities on Loan |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received |
|
Net Amount | ||||||
|
||||||||||||||||
Future Climate and Sustainable Economy |
||||||||||||||||
Jefferies LLC |
$ | 25,191 | $ | 23,169 | $ | — | $ | (2,022 | )(b) | |||||||
UBS Securities LLC |
27,423 | 24,824 | — | (2,599 | )(b) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 52,614 | $ | 47,993 | $ | — | $ | (4,621 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Future Health |
||||||||||||||||
BNP Paribas SA |
$ | 111,486 | $ | 105,699 | $ | — | $ | (5,787 | )(b) | |||||||
BofA Securities, Inc. |
145,882 | 145,788 | — | (94 | )(b) | |||||||||||
Goldman Sachs & Co. LLC |
27,366 | 26,974 | — | (392 | )(b) | |||||||||||
Jefferies LLC |
6,588 | 6,448 | — | (140 | )(b) | |||||||||||
UBS Securities LLC |
241,274 | 241,274 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 532,596 | $ | 526,183 | $ | — | $ | (6,413 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Future Innovators |
||||||||||||||||
Barclays Bank PLC |
$ | 625,282 | $ | 615,476 | $ | — | $ | (9,806 | )(b) | |||||||
BofA Securities, Inc. |
463,849 | 444,928 | — | (18,921 | )(b) | |||||||||||
Citigroup Global Markets, Inc. |
174,331 | 163,250 | — | (11,081 | )(b) | |||||||||||
Nomura Securities International, Inc. |
8,434 | 8,097 | — | (337 | )(b) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 1,271,896 | $ | 1,231,751 | $ | — | $ | (40,145 | ) | ||||||||
|
|
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|
|
|
|
|
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Notes to Financial Statements (unaudited) (continued)
|
||||||||||||||||
BlackRock ETF and Counterparty |
|
Market Value of Securities on Loan |
|
|
Cash Collateral Received |
(a) |
|
Non-Cash Collateral Received |
|
Net Amount | ||||||
|
||||||||||||||||
Future Tech |
||||||||||||||||
Barclays Bank PLC |
$ | 233,160 | $ | 222,064 | $ | — | $ | (11,096 | )(b) | |||||||
BNP Paribas SA |
226,814 | 213,878 | — | (12,936 | )(b) | |||||||||||
BofA Securities, Inc. |
62,518 | 57,679 | — | (4,839 | )(b) | |||||||||||
Citigroup Global Markets, Inc. |
503,938 | 482,482 | — | (21,456 | )(b) | |||||||||||
Goldman Sachs & Co. LLC |
707,000 | 673,159 | — | (33,841 | )(b) | |||||||||||
Jefferies LLC |
206,754 | 198,431 | — | (8,323 | )(b) | |||||||||||
Nomura Securities International, Inc. |
15,126 | 14,397 | — | (729 | )(b) | |||||||||||
Scotia Capital (USA), Inc. |
13,596 | 12,819 | — | (777 | )(b) | |||||||||||
UBS AG |
193,547 | 180,248 | — | (13,299 | )(b) | |||||||||||
UBS Securities LLC |
14,874 | 13,751 | — | (1,123 | )(b) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 2,177,327 | $ | 2,068,908 | $ | — | $ | (108,419 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
U.S. Carbon Transition Readiness |
||||||||||||||||
Barclays Capital, Inc. |
$ | 40,183 | $ | 40,183 | $ | — | $ | — | ||||||||
Citigroup Global Markets, Inc. |
512,984 | 482,196 | — | (30,788 | )(b) | |||||||||||
HSBC Bank PLC |
46,793 | 43,893 | — | (2,900 | )(b) | |||||||||||
J.P. Morgan Securities LLC |
27,666 | 25,255 | — | (2,411 | )(b) | |||||||||||
Jefferies LLC |
54,465 | 49,969 | — | (4,496 | )(b) | |||||||||||
National Financial Services LLC |
220,221 | 203,335 | — | (16,886 | )(b) | |||||||||||
RBC Capital Markets LLC |
162,121 | 162,099 | — | (22 | )(b) | |||||||||||
UBS AG |
1,015,317 | 913,052 | — | (102,265 | )(b) | |||||||||||
UBS Securities LLC |
1,529,796 | 1,467,893 | — | (61,903 | )(b) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 3,609,546 | $ | 3,387,875 | $ | — | $ | (221,671 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
U.S. Equity Factor Rotation |
||||||||||||||||
BNP Paribas SA |
$ | 223,058 | $ | 218,223 | $ | — | $ | (4,835 | )(b) | |||||||
BofA Securities, Inc. |
9,542 | 8,927 | — | (615 | )(b) | |||||||||||
Citigroup Global Markets, Inc. |
117,661 | 116,433 | — | (1,228 | )(b) | |||||||||||
Goldman Sachs & Co. LLC |
398,771 | 398,771 | — | — | ||||||||||||
J.P. Morgan Securities LLC |
134,624 | 129,316 | — | (5,308 | )(b) | |||||||||||
Morgan Stanley |
19,609 | 18,022 | — | (1,587 | )(b) | |||||||||||
RBC Capital Markets LLC |
15,962 | 15,625 | — | (337 | )(b) | |||||||||||
State Street Bank & Trust Co. |
70 | 64 | — | (6 | )(b) | |||||||||||
UBS AG |
72,097 | 72,097 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 991,394 | $ | 977,478 | $ | — | $ | (13,916 | ) | ||||||||
|
|
|
|
|
|
|
|
(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. |
(b) |
The market value of the loaned securities is determined as of January 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
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 |
71 |
Notes to Financial Statements (unaudited) (continued)
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 BlackRock Future Climate and Sustainable Economy ETF, BFA will be paid a management fee from the Fund based on a percentage of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Investment Advisory Fee | |||
First $1 billion |
0.70 | % | ||
Over $1 billion, up to and including $3 billion |
0.66 | |||
Over $3 billion, up to and including $5 billion |
0.63 | |||
Over $5 billion, up to and including $10 billion |
0.61 | |||
Over $10 billion |
0.60 |
For its investment advisory services to the BlackRock Future Health ETF, BFA will be paid a management fee from the Fund based on a percentage of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Investment Advisory Fee | |||
First $1 billion |
0.85 | % | ||
Over $1 billion, up to and including $3 billion |
0.80 | |||
Over $3 billion, up to and including $5 billion |
0.77 | |||
Over $5 billion, up to and including $10 billion |
0.74 | |||
Over $10 billion |
0.72 |
For its investment advisory services to the BlackRock Future Innovators ETF, BFA will be paid a management fee from the Fund based on a percentage of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Investment Advisory Fee | |||
First $1 billion |
0.80 | % | ||
Over $1 billion, up to and including $3 billion |
0.75 | |||
Over $3 billion, up to and including $5 billion |
0.72 | |||
Over $5 billion, up to and including $10 billion |
0.70 | |||
Over $10 billion |
0.68 |
For its investment advisory services to the BlackRock Future Tech ETF, BFA will be paid a management fee from the Fund based on a percentage of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Investment Advisory Fee | |||
First $1 billion |
0.88 | % | ||
Over $1 billion, up to and including $3 billion |
0.83 | |||
Over $3 billion, up to and including $5 billion |
0.79 | |||
Over $5 billion, up to and including $10 billion |
0.77 | |||
Over $10 billion |
0.75 |
For its investment advisory services to the BlackRock Future U.S. Themes ETF, BFA will be paid a management fee from the Fund based on a percentage of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Investment Advisory Fee | |||
First $1 billion |
0.60 | % | ||
Over $1 billion, up to and including $3 billion |
0.56 | |||
Over $3 billion, up to and including $5 billion |
0.54 | |||
Over $5 billion, up to and including $10 billion |
0.52 | |||
Over $10 billion |
0.51 |
72 |
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Notes to Financial Statements (unaudited) (continued)
For its investment advisory services to the BlackRock U.S. Carbon Transition Readiness ETF and BlackRock U.S. Equity Factor Rotation ETF, BFA will be paid a management fee from the Fund based on a percentage of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Investment Advisory Fee | |||
First $1 billion |
0.30 | % | ||
Over $1 billion, up to and including $3 billion |
0.28 | |||
Over $3 billion, up to and including $5 billion |
0.27 | |||
Over $5 billion, up to and including $10 billion |
0.26 | |||
Over $10 billion |
0.25 |
For its investment advisory services to the BlackRock World ex U.S. Carbon Transition Readiness ETF, BFA will be paid a management fee from the Fund based on a percentage of the Fund’s average daily net assets as follows:
Average Daily Net Assets | Investment Advisory Fee | |||
First $1 billion |
0.35 | % | ||
Over $1 billion, up to and including $3 billion |
0.33 | |||
Over $3 billion, up to and including $5 billion |
0.32 | |||
Over $5 billion, up to and including $10 billion |
0.30 | |||
Over $10 billion |
0.29 |
Expense Waivers: BFA has contractually agreed to waive 0.15% of its management fee payable for each of the U.S. Carbon Transition Readiness and World ex U.S. Carbon Transition Readiness ETFs, through June 30, 2024. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund.
For the U.S. Equity Factor Rotation ETF, BFA has voluntarily agreed to waive its management fee payable by the U.S. Equity Factor Rotation ETF to limit the annual management fee paid by the Fund to 0.20%. BFA may also from time to time voluntarily waive and/or reimburse fees or expenses in order to limit total annual fund operating expenses (excluding acquired fund fees and expenses, if any). Any such voluntary waiver or reimbursement may be eliminated by BFA at any time.
These amounts are included in investment advisory fees waived in the Statements of Operations. For the six months ended January 31, 2022, the amounts waived in investment advisory fees pursuant to this arrangement were as follows:
BlackRock ETF | Amounts waived | |||
U.S. Carbon Transition Readiness |
$ | 1,142,184 | ||
U.S. Equity Factor Rotation |
54,564 | |||
World ex U.S. Carbon Transition Readiness |
447,269 |
Additionally, BFA has contractually agreed to waive its management fees by the amount of investment advisory fees each Fund pays to BFA indirectly through its investment in money market funds managed by BFA or its affiliates, through June 30, 2023. These amounts are included in investment advisory fees waived in the Statements of Operations. For the six months ended January 31, 2022, the amounts waived in investment advisory fees pursuant to this arrangement were as follows:
BlackRock ETF | Amounts waived | |||
Future Climate and Sustainable Economy |
$ | 19 | ||
Future Health |
104 | |||
Future Innovators |
18 | |||
Future Tech |
193 | |||
Future U.S. Themes |
3 | |||
U.S. Carbon Transition Readiness |
2,733 | |||
U.S. Equity Factor Rotation |
6 | |||
World ex U.S. Carbon Transition Readiness |
455 |
Sub-Adviser: BFA has entered into a sub-advisory agreement with BlackRock International Limited (the “Sub-Adviser”), an affiliate of BFA, under which BFA pays the Sub-Adviser for services it provides to the BlackRock Future Climate and Sustainable Economy ETF.
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. The Funds are 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 the Funds bear 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
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 |
73 |
Notes to Financial Statements (unaudited) (continued)
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 a remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each of BlackRock Future Health ETF, BlackRock Future Innovators ETF, BlackRock Future U.S. Themes ETF, BlackRock U.S. Carbon Transition Readiness ETF and BlackRock U.S. Equity Factor Rotation ETF (the “Group 1 Funds”), 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.
Pursuant to the current securities lending agreement, each of BlackRock Future Climate and Sustainable Economy ETF, BlackRock Future Tech ETF and BlackRock World ex U.S. Carbon Transition Readiness ETF (the “Group 2 Funds”), retains 82% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold: (1) each Group 1 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, and (2) each Group 2 Fund will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
Prior to January 1, 2022, each Group 1 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. Each Group 2 Fund retained 82% 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 earned across the BlackRock Multi-Asset Complex in a calendar year exceeded a specified threshold: (1) each Group 1 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, and (2) each Group 2 Fund, pursuant to the securities lending agreement, retained for the remainder of that calendar year 85% 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 six months ended January 31, 2022, the Funds paid BTC the following amounts for securities lending agent services:
BlackRock ETF |
Fees Paid to BTC |
|||
Future Climate and Sustainable Economy |
$ | 24 | ||
Future Health |
209 | |||
Future Innovators |
552 | |||
Future Tech |
3,059 | |||
U.S. Carbon Transition Readiness |
2,929 | |||
U.S. Equity Factor Rotation |
345 | |||
World ex U.S. Carbon Transition Readiness |
932 |
Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.
Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.
For the six months ended January 31, 2022, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:
BlackRock ETF | Purchases | Sales |
Net Realized Gain (Loss) |
|||||||||
World ex U.S. Carbon Transition Readiness |
$ | 27,121,640 | $ | 18,715,944 | $ (224,887 | ) |
During the six months ended January 31, 2022, BlackRock Future Health ETF received a reimbursement of $1,269 from an affiliate, which is included in payments by affiliates in the Statements of Operations, related to an operating error.
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.
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Notes to Financial Statements (unaudited) (continued)
7. |
PURCHASES AND SALES |
For the six months ended January 31, 2022, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:
BlackRock ETF | Purchases | Sales | ||||||
Future Climate and Sustainable Economy |
$ | 1,427,310 | $ | 1,231,903 | ||||
Future Health |
3,820,890 | 3,496,808 | ||||||
Future Innovators |
4,247,577 | 4,488,795 | ||||||
Future Tech |
4,348,619 | 4,162,953 | ||||||
Future U.S. Themes |
385,236 | 395,117 | ||||||
U.S. Carbon Transition Readiness |
602,382,312 | 618,465,387 | ||||||
U.S. Equity Factor Rotation |
35,121,567 | 33,938,952 | ||||||
World ex U.S. Carbon Transition Readiness |
224,916,657 | 230,294,881 |
For the six months ended January 31, 2022, in-kind transactions were as follows:
BlackRock ETF |
In-kind Purchases |
In-kind Sales |
||||||
Future Climate and Sustainable Economy |
$ | 4,818,579 | $ | — | ||||
Future Health |
2,117,822 | — | ||||||
Future Innovators |
— | 4,079,817 | ||||||
Future Tech |
2,271,046 | 2,543,238 | ||||||
Future U.S. Themes |
4,902,873 | — | ||||||
U.S. Carbon Transition Readiness |
167,350,071 | 45,925,738 | ||||||
U.S. Equity Factor Rotation |
90,177,000 | 55,900,304 | ||||||
World ex U.S. Carbon Transition Readiness |
— | 16,429,194 |
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 January 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.
As of July 31, 2021, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
BlackRock ETF | Non-Expiring | |||
Future Health |
$ | 3,716 | ||
Future Innovators |
183,439 | |||
Future Tech |
685,890 |
A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
As of January 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:
BlackRock ETF | Tax Cost | Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation (Depreciation) |
||||||||||||
Future Climate and Sustainable Economy |
$ | 5,089,925 | $ | 138,145 | $ | (528,540 | ) | $ | (390,395 | ) | ||||||
Future Health |
8,978,220 | 392,231 | (744,340 | ) | (352,109 | ) | ||||||||||
Future Innovators |
18,914,063 | 949,207 | (5,222,787 | ) | (4,273,580 | ) | ||||||||||
Future Tech |
18,784,806 | 1,364,239 | (2,592,552 | ) | (1,228,313 | ) | ||||||||||
Future U.S. Themes |
4,931,027 | 58,734 | (217,026 | ) | (158,292 | ) | ||||||||||
U.S. Carbon Transition Readiness |
1,453,990,351 | 146,991,002 | (51,902,514 | ) | 95,088,488 | |||||||||||
U.S. Equity Factor Rotation |
126,658,326 | 7,237,386 | (4,884,628 | ) | 2,352,758 | |||||||||||
World ex U.S. Carbon Transition Readiness |
562,451,114 | 29,667,192 | (32,466,310 | ) | (2,799,118 | ) |
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 |
75 |
Notes to Financial Statements (unaudited) (continued)
9. |
LINE OF CREDIT |
BlackRock ETF Trust, on behalf of each Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2022 unless extended or renewed. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended January 31, 2022, the Funds did not borrow under the 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.
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. 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 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.
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.
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Notes to Financial Statements (unaudited) (continued)
Certain Funds invest a significant portion of their assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries as well as acts of war in the region. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Funds’ investments.
Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. The United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching. In addition, Russia launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting future market disruptions in the region are impossible to predict, but could be significant and have a severe adverse effect on the region, including significant negative impacts on the economy and the markets for certain securities and commodities, such as oil and natural gas, as well as other sectors.
Certain Funds invest a significant portion of their assets in securities 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:
|
||||||||
Period Ended 01/31/22 |
||||||||
BlackRock ETF | Shares | Amount | ||||||
|
||||||||
Future Climate and Sustainable Economy |
||||||||
Shares sold |
200,000 | $ | 5,027,754 | |||||
|
|
|
|
|
||||||||||||||||
Six Months Ended 01/31/22 |
Period Ended 07/31/21 |
|||||||||||||||
BlackRock ETF | Shares | Amount | Shares | Amount | ||||||||||||
|
||||||||||||||||
Future Health |
||||||||||||||||
Shares sold |
80,000 | $ | 2,251,107 | 240,000 | $ | 6,041,627 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Future Innovators |
||||||||||||||||
Shares sold |
— | $ | — | 460,000 | $ | 21,475,549 | ||||||||||
Shares redeemed |
(80,000 | ) | (4,220,693 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
(80,000 | ) | $ | (4,220,693 | ) | 460,000 | $ | 21,475,549 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Future Tech |
||||||||||||||||
Shares sold |
80,000 | $ | 2,694,945 | 560,000 | $ | 18,069,672 | ||||||||||
Shares redeemed |
(80,000 | ) | (2,989,485 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
— | $ | (294,540 | ) | 560,000 | $ | 18,069,672 | |||||||||
|
|
|
|
|
|
|
|
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 |
77 |
Notes to Financial Statements (unaudited) (continued)
|
||||||||
Period Ended 01/31/22 |
||||||||
BlackRock ETF | Shares | Amount | ||||||
|
||||||||
Future U.S. Themes |
||||||||
Shares sold |
200,000 | $ | 4,956,026 | |||||
|
|
|
|
|
||||||||||||||||
Six Months Ended 01/31/22 |
Period Ended 07/31/21 |
|||||||||||||||
BlackRock ETF | Shares | Amount | Shares | Amount | ||||||||||||
|
||||||||||||||||
U.S. Carbon Transition Readiness |
||||||||||||||||
Shares sold |
3,175,000 | $ | 169,692,059 | 28,200,000 | $ | 1,322,397,975 | ||||||||||
Shares redeemed |
(900,000 | ) | (47,154,021 | ) | (50,000 | ) | (2,369,462 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
2,275,000 | $ | 122,538,038 | 28,150,000 | $ | 1,320,028,513 | ||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
Six Months Ended 01/31/22 |
Year Ended 07/31/21 |
|||||||||||||||
BlackRock ETF | Shares | Amount | Shares | Amount | ||||||||||||
|
||||||||||||||||
U.S. Equity Factor Rotation |
||||||||||||||||
Shares sold |
2,550,000 | $ | 95,777,846 | 400,000 | $ | 14,424,612 | ||||||||||
Shares redeemed |
(1,475,000 | ) | (55,543,273 | ) | (1,100,000 | ) | (34,992,686 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
1,075,000 | $ | 40,234,573 | (700,000 | ) | $ | (20,568,074 | ) | ||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
Six Months Ended 01/31/22 |
Period Ended 07/31/21 |
|||||||||||||||
BlackRock ETF | Shares | Amount | Shares | Amount | ||||||||||||
|
||||||||||||||||
World ex U.S. Carbon Transition Readiness |
||||||||||||||||
Shares sold |
— | $ | — | 12,600,000 | $ | 586,499,102 | ||||||||||
Shares redeemed |
(375,000 | ) | (17,777,520 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
(375,000 | ) | $ | (17,777,520 | ) | 12,600,000 | $ | 586,499,102 | ||||||||
|
|
|
|
|
|
|
|
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.
As of January 31, 2022, shares owned by BlackRock Financial Management, Inc., an affiliate of the Funds, were as follows:
BlackRock ETF | Shares | |||
Future Climate & Sustainable Economy |
55,000 | |||
Future Health |
35,000 | |||
Future U.S. Themes |
160,000 | |||
World ex U.S. Carbon Transition Readiness |
75,000 |
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.
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Disclosure of Investment Advisory Agreement
The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock ETF Trust (the “Trust”) met on May 10-12, 2021 (the “Organizational Meeting”) to consider the approval of the proposed investment advisory agreement (the “Agreement”) between the Trust, on behalf of BlackRock Future Climate and Sustainable Economy ETF (the “Fund”), and BlackRock Fund Advisors (the “Manager” or “BlackRock”), the Fund’s investment advisor. The Agreement was the same agreement that had been previously approved by the Board with respect to certain series of the Trust.
The Approval Process
Consistent with the requirements of the Investment Company Act of 1940 (the “1940 Act”), the Trust is required to consider the initial approval of the Agreement. The Board members whom are not “interested persons” of the Fund, as defined in the 1940 Act, are considered independent Board members (the “Independent Board Members”). In connection with this deliberative process, the Board assessed, among other things, the nature, extent and quality of the services to be provided to the Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; accounting oversight; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; and legal, regulatory and compliance services.
At the Organizational Meeting, the Board received and reviewed materials relating to its consideration of the proposed Agreement. The Board considered all factors it believed relevant with respect to the Fund, including, among other things: (a) the nature, extent and quality of the services to be provided by BlackRock; (b) the investment performance of the Fund as compared with a peer group of funds and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits to be realized by BlackRock and its affiliates from their relationship with the Fund; (d) the existence and sharing of potential economies of scale; (e) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Fund; (f) possible alternatives to the proposed Agreement; (g) the policies and practices of BlackRock with respect to portfolio transactions for the Fund; (h) BlackRock’s portfolio compliance systems and capabilities; and (i) other factors deemed relevant by the Board Members.
In considering approval of the Agreement, the Board met with the relevant investment advisory personnel from BlackRock and considered all information it deemed reasonably necessary to evaluate the terms of the Agreement. The Board received materials in advance of the Organizational Meeting relating to its consideration of the Agreement, including (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”) regarding the Fund’s fees and estimated expense ratio as compared with a peer group of funds as determined by Broadridge (“Expense Peers”); (b) information regarding BlackRock’s economic outlook for the Fund and its general investment outlook for the markets; (c) information regarding fees paid to service providers that are affiliates of BlackRock; and (d) information outlining the legal duties of the Board under the 1940 Act with respect to the consideration and approval of the Agreement. The Board also noted information received at prior Board meetings concerning compliance records and regulatory matters relating to BlackRock.
The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management and BlackRock’s services related to the valuation and pricing of the portfolio holdings of the Fund. The Board noted the willingness of BlackRock’s personnel to engage in open, candid discussions with the Board. The Board Members did not identify any particular information or any single factor as determinative, and each Board Member may have attributed different weights to the various items and factors considered.
A. Nature, Extent and Quality of the Services Provided by BlackRock
The Board, including the Independent Board Members, reviewed the nature, extent and quality of services to be provided by BlackRock, including the investment advisory services to be provided to the Fund. The Board received information concerning the investment philosophy and investment process to be used by BlackRock in managing the Fund, as well as a description of the capabilities, personnel and services of BlackRock. The Board considered the scope of the services provided by BlackRock to the Fund under the Agreement relative to services typically provided by third parties to other funds. The Board noted that the standard of care applicable under the Agreement was comparable to that found generally in investment company advisory agreements. The Board concluded that the scope of BlackRock’s services to be provided to the Fund was consistent with the Fund’s operational requirements, including, in addition to seeking to meet the Fund’s investment objective(s), compliance with investment restrictions, tax and reporting requirements and related shareholder services.
The Board, including the Independent Board Members, also considered the quality of the administrative and other non-investment advisory services to be provided by BlackRock and its affiliates to the Fund. The Board evaluated the procedures of BlackRock designed to fulfill its fiduciary duty to the Fund with respect to possible conflicts of interest, including BlackRock’s code of ethics (regulating the personal trading of BlackRock’s officers and employees), the procedures by which BlackRock allocates trades among its various investment advisory clients, the integrity of the systems in place to ensure compliance with the foregoing and the record of BlackRock in these matters. The Board also noted information received at prior Board meetings concerning standards of BlackRock with respect to the execution of portfolio transactions.
The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and the Fund’s portfolio management team; research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRock’s compensation structure with respect to the Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives. The Board also considered the business reputation of BlackRock and its financial resources and concluded that BlackRock would be able to meet any reasonably foreseeable obligation under the Agreement.
In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services to be provided to the Fund. The Board considered that BlackRock and its affiliates will provide the Fund with certain administrative, shareholder and other services (in addition to any such services provided to the Fund by third parties) and officers and other personnel as are necessary for the operations of the Fund. In particular, BlackRock and its affiliates
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Disclosure of Investment Advisory Agreement (continued)
will provide the Fund with administrative services, including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of third-party service providers, including, among others, the Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain open-end funds; and (viii) performing or managing administrative functions necessary for the operation of the Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing the Fund’s distribution partners, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.
B. The Investment Performance of the Fund and BlackRock
The Board, including the Independent Board Members, previously received and considered information about BlackRock’s investment performance for other funds. The Board, however, did not consider the performance history of the Fund because the Fund was newly organized and had not yet commenced operations as of the date of the Organizational Meeting.
C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services to be Provided and Estimated Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Fund
In connection with the initial approval of the Agreement, the Board, including the Independent Board Members, reviewed the Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared the Fund’s estimated total expense ratio, as well as its estimated actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non-12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers that benefit a fund, and the actual management fee rate gives effect to any management fee reimbursements or waivers that benefit a fund. Additionally, the Board noted information received at prior Board meetings concerning the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).
The Board noted that the Fund’s contractual management fee rate ranked in the third quartile, and that the estimated actual management fee rate and estimated total expense ratio each ranked in the third quartile relative to the Fund’s Expense Peers.
The Board also noted that the Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Fund increases above certain contractually specified levels. The Board noted that if the size of the Fund were to decrease, the Fund could lose the benefit of one or more breakpoints.
Following consideration of this information, the Board, including the independent Board Members, concluded that the fees to be paid pursuant to the Agreement were fair and reasonable in light of the services provided.
As the Fund had not commenced operations as of the date of the Organizational Meeting, BlackRock was not able to provide the Board with specific information concerning the expected profits to be realized by BlackRock and its affiliates from their relationships with the Fund. BlackRock, however, will provide the Board with such information at future meetings.
D. Economies of Scale
The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of the Fund increase, including the existence of fee waivers and/or expense caps, as applicable, noting that any contractual fee waivers and expense caps had been approved by the Board.
E. Other Factors Deemed Relevant by the Board Members
The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with the Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Fund, including for administrative, distribution, securities lending and cash management services. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.
In connection with its consideration of the Agreement, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.
The Board noted the competitive nature of the open-end fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that the Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.
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Disclosure of Investment Advisory Agreement (continued)
Conclusion
The Board Members present at the Organizational Meeting, including the Independent Board Members, unanimously approved the Agreement between the Manager and the Trust, with respect to the Fund, for a two-year term beginning on the effective date of the Agreement. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreement were fair and reasonable and in the best interest of the Fund and its shareholders. In arriving at its decision to approve the Agreement, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.
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Disclosure of Investment Advisory Agreement (continued)
The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock ETF Trust (the “Trust”) met on November 8-10, 2021 (the “Organizational Meeting”) to consider the approval of the proposed investment advisory agreement (the “Agreement”) between the Trust, on behalf of BlackRock Future U.S. Themes ETF (the “Fund”), and BlackRock Fund Advisors (the “Manager” or “BlackRock”), the Fund’s investment advisor. The Agreement was the same agreement that had been previously approved by the Board with respect to certain series of the Trust.
The Approval Process
Consistent with the requirements of the Investment Company Act of 1940 (the “1940 Act”), the Trust is required to consider the initial approval of the Agreement. The Board members whom are not “interested persons” of the Fund, as defined in the 1940 Act, are considered independent Board members (the “Independent Board Members”). In connection with this deliberative process, the Board assessed, among other things, the nature, extent and quality of the services to be provided to the Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; accounting oversight; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; and legal, regulatory and compliance services.
At the Organizational Meeting, the Board received and reviewed materials relating to its consideration of the proposed Agreement. The Board considered all factors it believed relevant with respect to the Fund, including, among other things: (a) the nature, extent and quality of the services to be provided by BlackRock; (b) the investment performance of the Fund as compared with a peer group of funds and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits to be realized by BlackRock and its affiliates from their relationship with the Fund; (d) the existence and sharing of potential economies of scale; (e) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Fund; (f) possible alternatives to the proposed Agreement; (g) the policies and practices of BlackRock with respect to portfolio transactions for the Fund; (h) BlackRock’s portfolio compliance systems and capabilities; and (i) other factors deemed relevant by the Board Members.
In considering approval of the Agreement, the Board met with the relevant investment advisory personnel from BlackRock and considered all information it deemed reasonably necessary to evaluate the terms of the Agreement. The Board received materials in advance of the Organizational Meeting relating to its consideration of the Agreement, including (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”) regarding the Fund’s fees and estimated expense ratio as compared with a peer group of funds as determined by Broadridge (“Expense Peers”); (b) information regarding BlackRock’s economic outlook for the Fund and its general investment outlook for the markets; (c) information regarding fees paid to service providers that are affiliates of BlackRock; and (d) information outlining the legal duties of the Board under the 1940 Act with respect to the consideration and approval of the Agreement. The Board also noted information received at prior Board meetings concerning compliance records and regulatory matters relating to BlackRock.
The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management and BlackRock’s services related to the valuation and pricing of the portfolio holdings of the Fund. The Board noted the willingness of BlackRock’s personnel to engage in open, candid discussions with the Board. The Board Members did not identify any particular information or any single factor as determinative, and each Board Member may have attributed different weights to the various items and factors considered.
A. Nature, Extent and Quality of the Services Provided by BlackRock
The Board, including the Independent Board Members, reviewed the nature, extent and quality of services to be provided by BlackRock, including the investment advisory services to be provided to the Fund. The Board received information concerning the investment philosophy and investment process to be used by BlackRock in managing the Fund, as well as a description of the capabilities, personnel and services of BlackRock. The Board considered the scope of the services provided by BlackRock to the Fund under the Agreement relative to services typically provided by third parties to other funds. The Board noted that the standard of care applicable under the Agreement was comparable to that found generally in investment company advisory agreements. The Board concluded that the scope of BlackRock’s services to be provided to the Fund was consistent with the Fund’s operational requirements, including, in addition to seeking to meet the Fund’s investment objective(s), compliance with investment restrictions, tax and reporting requirements and related shareholder services.
The Board, including the Independent Board Members, also considered the quality of the administrative and other non-investment advisory services to be provided by BlackRock and its affiliates to the Fund. The Board evaluated the procedures of BlackRock designed to fulfill its fiduciary duty to the Fund with respect to possible conflicts of interest, including BlackRock’s code of ethics (regulating the personal trading of BlackRock’s officers and employees), the procedures by which BlackRock allocates trades among its various investment advisory clients, the integrity of the systems in place to ensure compliance with the foregoing and the record of BlackRock in these matters. The Board also noted information received at prior Board meetings concerning standards of BlackRock with respect to the execution of portfolio transactions.
The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and the Fund’s portfolio management team; research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRock’s compensation structure with respect to the Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives. The Board also considered the business reputation of BlackRock and its financial resources and concluded that BlackRock would be able to meet any reasonably foreseeable obligation under the Agreement.
In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services to be provided to the Fund. The Board considered that BlackRock and its affiliates will provide the Fund with certain administrative, shareholder and other services (in addition to any such services provided to the Fund by third parties) and officers and other personnel as are necessary for the operations of the Fund. In particular, BlackRock and its affiliates
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Disclosure of Investment Advisory Agreement (continued)
will provide the Fund with administrative services, including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of third-party service providers, including, among others, the Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain open-end funds; and (viii) performing or managing administrative functions necessary for the operation of the Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing the Fund’s distribution partners, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.
B. The Investment Performance of the Fund and BlackRock
The Board, including the Independent Board Members, previously received and considered information about BlackRock’s investment performance for other funds. The Board, however, did not consider the performance history of the Fund because the Fund was newly organized and had not yet commenced operations as of the date of the Organizational Meeting.
C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services to be Provided and Estimated Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Fund
In connection with the initial approval of the Agreement, the Board, including the Independent Board Members, reviewed the Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared the Fund’s estimated total expense ratio, as well as its estimated actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non-12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers that benefit a fund, and the actual management fee rate gives effect to any management fee reimbursements or waivers that benefit a fund. Additionally, the Board noted information received at prior Board meetings concerning the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).
The Board noted that the Fund’s contractual management fee rate ranked in the fourth quartile, and that the estimated actual management fee rate and estimated total expense ratio ranked in the fourth and third quartiles, respectively, relative to the Fund’s Expense Peers.
The Board also noted that the Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Fund increases above certain contractually specified levels. The Board noted that if the size of the Fund were to decrease, the Fund could lose the benefit of one or more breakpoints.
Following consideration of this information, the Board, including the independent Board Members, concluded that the fees to be paid pursuant to the Agreement were fair and reasonable in light of the services provided.
As the Fund had not commenced operations as of the date of the Organizational Meeting, BlackRock was not able to provide the Board with specific information concerning the expected profits to be realized by BlackRock and its affiliates from their relationships with the Fund. BlackRock, however, will provide the Board with such information at future meetings.
D. Economies of Scale
The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of the Fund increase, including the existence of fee waivers and/or expense caps, as applicable, noting that any contractual fee waivers and expense caps had been approved by the Board.
E. Other Factors Deemed Relevant by the Board Members
The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with the Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Fund, including for administrative, distribution, securities lending and cash management services. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.
In connection with its consideration of the Agreement, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.
The Board noted the competitive nature of the open-end fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that the Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.
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Disclosure of Investment Advisory Agreement (continued)
Conclusion
The Board Members present at the Organizational Meeting, including the Independent Board Members, unanimously approved the Agreement between the Manager and the Trust, with respect to the Fund, for a two-year term beginning on the effective date of the Agreement. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreement were fair and reasonable and in the best interest of the Fund and its shareholders. In arriving at its decision to approve the Agreement, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.
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Disclosure of Investment Sub-Advisory Agreement
The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock ETF Trust (the “Trust”) met on May 10-12, 2021 (the “Meeting”) to consider the initial approval of the proposed sub-advisory agreement (the “Sub-Advisory Agreement”) between BlackRock Fund Advisors (the “Manager”), the Trust’s investment advisor, and BlackRock International Limited (the “Sub-Advisor”) with respect to BlackRock Future Climate and Sustainable Economy ETF (the “Fund”), a series of the Trust.
Consistent with the requirements of the Investment Company Act of 1940 (the “1940 Act”), at the Meeting, the Board reviewed materials relating to its consideration of the Sub-Advisory Agreement. The Board Members whom are not “interested persons” of the Fund, as defined in the 1940 Act, are considered independent Board members (the “Independent Board Members”). At the Meeting, the Board also considered the initial approval of the proposed investment advisory agreement (the “Advisory Agreement”) between the Trust and the Manager, on behalf of the Fund. At the Meeting, the Board, including the Independent Board Members, unanimously approved the Advisory Agreement between the Manager and the Trust, with respect to the Fund, for a two-year term beginning on the effective date of the Advisory Agreement. A discussion of the basis for the Board’s approval of the Advisory Agreement at the Meeting is included in the semi-annual shareholder report for the Fund for the period ended January 31, 2022. The factors considered by the Board at the Meeting in connection with the approval of the proposed Sub-Advisory Agreement were substantially the same as the factors considered at the Meeting with respect to approval of the Advisory Agreement.
Following discussion, the Board, including the Independent Board Members, unanimously approved the Sub-Advisory Agreement between the Manager and the Sub-Advisor, with respect to the Fund, for a two-year term beginning on the effective date of the Sub-Advisory Agreement. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including a majority of the Independent Board Members, was satisfied that the terms of the Sub-Advisory Agreement were fair and reasonable and in the best interest of the Fund and its shareholders. In arriving at its decision to approve the Sub-Advisory Agreement, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.
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Statement Regarding Liquidity Risk Management Program (unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), BlackRock ETF Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for BlackRock Future Climate and Sustainable Economy ETF, BlackRock Future Health ETF, BlackRock Future Innovators ETF, BlackRock Future Tech ETF, BlackRock U.S. Carbon Transition Readiness ETF, BlackRock U.S. Equity Factor Rotation ETF and BlackRock World ex U.S. Carbon Transition Readiness ETF (the “Funds”), 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 November 9-10, 2021 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Advisors, LLC or BlackRock Fund Advisors (“BlackRock”), each an investment adviser to certain BlackRock funds, as the program administrator for each Fund’s Program, as applicable. 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 the imposition of capital controls in certain 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. Where a fund participated in borrowings for investment purposes (such as tender option bonds or reverse repurchase agreements), such borrowings were factored into the Program’s calculation of a fund’s liquidity bucketing. Derivative exposure was also considered in such calculation. |
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 exchange-traded fund’s (“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 that redeem in-kind generally do not hold more than de minimis amounts of cash, and that ETFs generally do not borrow. |
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. |
There were no material changes to the Program during the Program Reporting Period, other than the enhancement of certain model components in the Program’s methodology. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
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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.
January 31, 2022
Total Cumulative Distributions for the Fiscal Year-to-Date |
% Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date |
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BlackRock ETF | Net Investment Income |
Net Realized Capital Gains |
Return of Capital |
Total Per Share |
Net Investment Income |
Net Realized Capital Gains |
Return of Capital |
Total Per Share |
||||||||||||||||||||||||
Future Climate and Sustainable Economy(a) |
$ | — | $ | — | $ | 0.038510 | $ | 0.038510 | — | % | — | % | 100 | % | 100 | % | ||||||||||||||||
U.S. Carbon Transition Readiness(a) |
0.300329 | 0.765578 | 0.028257 | 1.094164 | 27 | 70 | 3 | 100 | ||||||||||||||||||||||||
U.S. Equity Factor Rotation(a) |
0.167446 | 1.574018 | 0.016570 | 1.758034 | 10 | 89 | 1 | 100 | ||||||||||||||||||||||||
World ex U.S. Carbon Transition Readiness(a) |
0.523034 | 0.209979 | 0.010319 | 0.743332 | 71 | 28 | 1 | 100 |
(a) |
The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will reduce the Fund’s net asset value per share. |
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General Information
Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.
Householding
The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports, Rule 30e-3 notices and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at 1-800-474-2737.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedules 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 and blackrock.com/fundreports.
Availability of Proxy Voting Policies, Procedures and Voting Records
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available without charge, upon request (1) by calling 1-800-474-2737; (2) on the BlackRock website at blackrock.com; and (3) on the SEC’s website at sec.gov.
A description of the Company’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.
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.
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Additional Information (continued)
Fund and Service Providers
Investment Adviser |
Independent Registered Public Accounting Firm | |
BlackRock Fund Advisors |
PricewaterhouseCoopers LLP | |
San Francisco, CA 94105 |
Philadelphia, Pennsylvania 19103 | |
Administrator, Custodian and Transfer Agent |
Legal Counsel | |
State Street Bank and Trust Company |
Sidley Austin LLP | |
Boston, MA, 02111 |
New York, NY 10019 | |
Distributor |
Address of the Trust | |
BlackRock Investments, LLC |
100 Bellevue Parkway | |
New York, NY 10022 |
Wilmington, DE 19809 |
A D D I T I O N A L I N F O R M A T I O N |
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Glossary of Terms Used in this Report
Portfolio Abbreviations - Equity
ADR | American Depositary Receipt | |
JSC | Joint Stock Company | |
NVS | Non-Voting Shares | |
REIT | Real Estate Investment Trust |
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Want to know more?
blackrock.com | 1-800-474-2737
This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds unless preceded or accompanied by the Funds’ current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.
USEFR-1/22-SAR
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