LOGO

  JANUARY 31, 2022

 

  

2022 Semi-Annual Report

(Unaudited)

 

 

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

 

 

 

.

 

Not FDIC Insured • May Lose Value • No Bank Guarantee


The Markets in Review

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,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

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  

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


Table of Contents

 

    Page  

 

 

The Markets in Review

    2  

Fund Summary

    4  

About Fund Performance

    18  

Shareholder Expenses

    18  

Schedules of Investments

    19  

Financial Statements:

 

Statements of Assets and Liabilities

    52  

Statements of Operations

    54  

Statements of Changes in Net Assets

    56  

Financial Highlights

    60  

Notes to Financial Statements

    68  

Disclosure of Investment Advisory Agreement

    79  

Disclosure of Investment Sub-Advisory Agreement

    85  

Statement Regarding Liquidity Risk Management Program

    86  

Supplemental Information

    87  

Additional Information

    88  

Glossary of Terms Used in this Report

    90  

 

 

  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)   

 

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        

 

 

   

 

 

   
 

Beginning

    Account Value

(08/03/21)

 

 

 (a) 

   

Ending
Account Value
(01/31/22)
 
 
 
    

Expenses

Paid During

the Period

 

 

 (b) 

   

Beginning
Account Value
(08/01/21)
 
 
 
    

Ending
Account Value
(01/31/22)
 
 
 
    

Expenses
Paid During
the Period
 
 
 (b) 
   

Annualized
Expense
Ratio
 
 
 
  $             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

 

   
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  

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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           

 

 

   

 

 

      
 

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          $         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.

 

 

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.

 

 

 

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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        

 

 

   

 

 

   
 

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       $      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.

 

 

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.

 

 

 

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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        

 

 

   

 

 

   
 

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       $      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.

 

 

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.

 

 

 

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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)   

 

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        

 

 

   

 

 

   
 


Beginning

    Account Value
(12/14/21)

 


(a)  

   

Ending

Account Value

(01/31/22)

 

 

 

    

Expenses

Paid During

the Period

 

 

 (b)  

   

Beginning

Account Value

(08/01/21)

 

 

 

    

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.

 

 

 

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.

 

 

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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.

 

 

 

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.

 

 

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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.

 

 

 

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.

 

 

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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.

 

 

 

U N D   S U M M A R Y

  17


About Fund Performance

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at 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.

Shareholder Expenses

Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period (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.

 

 

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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%
(Cost: $4,991,932)

 

        4,590,518  
   

 

 

 

Warrants

   
Capital Markets — 0.2%            

Agronomics Ltd., (Expires 12/11/23)(a)

    329,052       11,019  
   

 

 

 

Total Warrants — 0.2%
(Cost: $0)

 

    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  

 

 

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%
(Cost: $97,993)

 

    97,993  
   

 

 

 

Total Investments in Securities — 102.0%
(Cost: $5,089,925)

 

    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
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

  $     $ 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 O C K  E M I - A N N U A L  E P O R T   T O  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  

 

 

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%
(Cost: $8,103,617)

      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,
(Expires 12/18/25)(a)

    848       401  
   

 

 

 
      1,211  
   

 

 

 

Total Warrants — 0.0%
(Cost: $5,290)

      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%
(Cost: $868,465)

      868,465  
   

 

 

 

Total Investments in Securities — 107.5%
(Cost: $8,977,372)

      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
Distributions
from
Underlying
Funds

 

 

 

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 O C K  E M I - A N N U A L  E P O R T   T O  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.

 

 

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%
(Cost: $17,545,998)

      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%
(Cost: $1,251,750)

      1,251,750  
   

 

 

 

Total Investments in Securities — 109.1%
(Cost: $18,797,748)

      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 O C K  E M I - A N N U A L  E P O R T   T O  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
Distributions
from
Underlying
Funds

 

 

 

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.

 

 

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 O C K  E M I - A N N U A L  E P O R T   T O  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%
(Cost: $16,237,612)

        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%
(Cost: $2,538,911)

      2,538,911  
   

 

 

 

Total Investments in Securities — 113.3%
(Cost: $18,776,523)

      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.

 

 

 

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 O C K  E M I - A N N U A L  E P O R T   T O  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  
   

 

 

 

 

 

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)