BlackRock ETF Trust

·  BlackRock Future Climate and Sustainable Economy ETF | BECO | NYSE Arca

·  BlackRock Future Health ETF | BMED | NYSE Arca

·  BlackRock Future Innovators ETF | BFTR | NYSE Arca

·  BlackRock Future Tech ETF | BTEK | NYSE Arca

·  BlackRock Future U.S. Themes ETF | BTHM | NYSE Arca

·  BlackRock U.S. Carbon Transition Readiness ETF | LCTU | NYSE Arca

·  BlackRock U.S. Equity Factor Rotation ETF | DYNF | NYSE Arca

·  BlackRock World ex U.S. Carbon Transition Readiness ETF | LCTD | NYSE Arca

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Table of Contents

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

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

Portfolio Information

Investment Objective

The BlackRock Future Health ETF (the “Fund”) seeks to maximize total return.

Performance

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

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.

Portfolio Information

Investment Objective

The BlackRock Future Innovators ETF (the “Fund”) seeks long-term capital appreciation.

Performance

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

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.

Portfolio Information

Investment Objective

The BlackRock Future Tech ETF (the “Fund”) seeks to maximize total return.

Performance

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

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.

Portfolio Information

Investment Objective

The BlackRock Future U.S. Themes ETF (the “Fund”) seeks long-term capital appreciation.

Performance

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

Portfolio Information

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

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

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.

Portfolio Information

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

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

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.

Portfolio Information

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

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

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.

Portfolio Information

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.

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: