LOGO

  FEBRUARY 28, 2023

 

  

2023 Semi-Annual Report

(Unaudited)

 

iShares, Inc.

 

·  

iShares MSCI Agriculture Producers ETF  |  VEGI  |  NYSE Arca

 

·  

iShares MSCI Global Energy Producers ETF  |  FILL  |  NYSE Arca

 

·  

iShares MSCI Global Gold Miners ETF  |  RING  |  NASDAQ

 

·  

iShares MSCI Global Metals & Mining Producers ETF  |  PICK  |  Cboe BZX

 

·  

iShares MSCI Global Silver and Metals Miners ETF  |  SLVP  |  Cboe BZX


The Markets in Review

Dear Shareholder,

Significant economic headwinds emerged during the 12-month reporting period ended February 28, 2023, as investors navigated changing economic conditions and volatile markets. The U.S. economy shrank in the first half of 2022 before returning to modest growth in the second half of the year, marking a shift to a more challenging post-reopening economic environment. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high before beginning to moderate. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the ongoing war continued to present challenges for both investors and policymakers.

Equity prices fell as interest rates rose, particularly during the first half of the reporting period. Both large-and small-capitalization U.S. stocks fell, although equities began to recover in the second half of the period as inflation eased and economic growth resumed. Emerging market stocks and international equities from developed markets declined overall, pressured by rising interest rates and a strong U.S. dollar.

The 10-year U.S. Treasury yield rose notably during the reporting period, driving its price down, as investors reacted to fluctuating inflation data and attempted to anticipate its impact on future interest rate changes. The corporate bond market also faced inflationary headwinds, and higher interest rates led to rising borrowing costs for corporate issuers.

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation has been more persistent than expected, raised interest rates eight times. Furthermore, the Fed wound down its bond-buying programs and accelerated the reduction of its balance sheet.

Restricted labor supply kept inflation elevated even as other inflation drivers, such as goods prices and energy costs, moderated. While economic growth slowed in the last year, we believe that taming inflation requires a more substantial decline that lowers demand to a level more in line with the economy’s productive capacity. Although the Fed has decelerated the pace of interest rate hikes, it still seems determined to get inflation back to target. With this in mind, we believe the possibility of a U.S. recession in the near-term is high, but the dimming economic outlook has not yet been fully reflected in current market prices. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt to rapidly changing conditions. Turmoil in the banking sector shortly following the end of the period highlighted the potential for the knock-on effects of substantially higher interest rates to disrupt markets with little warning.

While we favor an overweight to equities in the long term, several factors lead us to take an underweight stance on equities overall in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with the possibility of a recession in a business environment characterized by higher costs and reduced pricing power. Nevertheless, we are overweight on emerging market stocks as a weaker U.S. dollar provides a supportive backdrop. We also see long-term opportunities in credit, where valuations are appealing and higher yields provide attractive income, although we are neutral on credit in the near term, as we believe that troubles in the banking sector will likely lead to reduced lending. However, we believe there are still some strong opportunities for a six- to twelve-month horizon, particularly short-term U.S. Treasuries, global inflation-linked bonds, and emerging market bonds denominated in local currency.

Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of February 28, 2023

 

 
    

 

6-Month

 

   

 

12-Month

 

 

 

U.S. large cap equities

(S&P 500® Index)

 

 

 

 

 

1.26%

 

 

 

 

 

 

(7.69)%

 

 

 

U.S. small cap equities

(Russell 2000® Index)

 

 

 

 

 

3.63   

 

 

    (6.02)    

 

International equities

(MSCI Europe, Australasia, Far East Index)

 

 

 

 

 

12.58   

 

 

 

 

 

 

(3.14)  

 

 

 

Emerging market equities

(MSCI Emerging Markets Index)

 

 

 

 

 

(2.29)  

 

 

 

 

 

 

(15.28)  

 

 

 

3-month Treasury bills

(ICE BofA 3-Month U.S. Treasury Bill Index)

 

 

 

 

 

1.74   

 

 

 

 

 

 

2.11   

 

 

 

U.S. Treasury securities

(ICE BofA 10-Year U.S. Treasury Index)

 

 

 

 

 

(4.81)  

 

 

 

 

 

 

(14.06)  

 

 

 

U.S. investment grade bonds

(Bloomberg U.S. Aggregate Bond Index)

 

 

 

 

 

(2.13)  

 

 

 

 

 

 

(9.72)  

 

 

 

Tax-exempt municipal bonds

(Bloomberg Municipal Bond Index)

 

 

 

 

 

0.66   

 

 

 

 

 

 

(5.10)  

 

 

 

U.S. high yield bonds

(Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

 

 

 

 

 

2.52   

 

 

 

 

 

 

(5.45)  

 

 

Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

 

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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  

Semi-Annual Report:

  

Fund Summary

     4  

About Fund Performance

     9  

Disclosure of Expenses

     9  

Schedules of Investments

     10  

Financial Statements

  

Statements of Assets and Liabilities

     29  

Statements of Operations

     31  

Statements of Changes in Net Assets

     33  

Financial Highlights

     36  

Notes to Financial Statements

     41  

Statement Regarding Liquidity Risk Management Program

     50  

General Information

     51  

Glossary of Terms Used in this Report

     52  

 

 

 


Fund Summary  as of February 28, 2023    iShares® MSCI Agriculture Producers ETF

 

Investment Objective

The iShares MSCI Agriculture Producers ETF (the “Fund”) (formerly the iShares MSCI Global Agriculture Producers ETF) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of agriculture, as represented by the MSCIACWI Select Agriculture Producers Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6-Month
Total Returns
     1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    0.68      2.46      9.81     6.53        2.46      59.67      88.27

Fund Market

    0.37        1.73        9.65       6.45          1.73        58.47        86.86  

Index

    0.47        2.56        9.91       6.60                2.56        60.42        89.52  

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(09/01/22)
 
 
 
      

Ending
Account Value
(02/28/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(09/01/22)
 
 
 
      

Ending
Account Value
(02/28/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,006.80          $      1.94               $      1,000.00          $      1,022.90          $      1.96          0.39

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry    
Percent of
Total Investments
 
(a) 

Fertilizers & Agricultural Chemicals

    36.7

Agricultural & Farm Machinery

    32.0  

Agricultural Products

    18.3  

Packaged Foods & Meats

    12.9  

Other (each representing less than 1%)

    0.1  

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

United States

    59.7

Canada

    7.4  

Norway

    4.1  

Japan

    3.7  

India

    3.5  

United Kingdom

    3.3  

China

    2.3  

Chile

    2.3  

Saudi Arabia

    2.1  

Malaysia

    1.6  

Singapore

    1.3  

Germany

    1.2  

Israel

    1.1  

Other (each representing less than 1%)

    6.4  

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary  as of February 28, 2023    iShares® MSCI Global Energy Producers ETF

 

Investment Objective

The iShares MSCI Global Energy Producers ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of energy exploration and production, as represented by the MSCI ACWI Select Energy Producers Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

                  Average Annual Total Returns                         Cumulative Total Returns         
     6-Month
Total Returns
     1 Year      5 Years     10 Years               1 Year      5 Years      10 Years     

Fund NAV

    3.55      18.27      7.23     3.36%         18.27      41.78      39.18%  

Fund Market

    3.79        17.23        7.30       3.40            17.23        42.23        39.77     

Index

    3.34        17.21        6.97       3.13                  17.21        40.07        36.14     

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

    Actual           Hypothetical 5% Return         
     

Beginning
Account Value
(09/01/22)


 
      

Ending
Account Value
(02/28/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(09/01/22)
 
 
 
      

Ending
Account Value
(02/28/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
    

Annualized

Expense

Ratio

 

 

 

      $      1,000.00          $      1,035.50          $      1.97               $      1,000.00          $      1,022.90          $      1.96        0.39

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry    
Percent of
Total Investments(a)
 
 

Integrated Oil & Gas

    57.8

Oil & Gas Exploration & Production

    28.1  

Oil & Gas Refining & Marketing

    10.9  

Coal & Consumable Fuels

    3.2  

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of    
Total Investments
 
 (a) 

United States

    53.8

United Kingdom

    12.8  

Canada

    8.5  

France

    5.8  

India

    3.8  

Australia

    2.8  

Brazil

    1.9  

Norway

    1.4  

China

    1.4  

Italy

    1.4  

Japan

    1.1  

Other (each representing less than 1%)

    5.3  

 

  (a)

Excludes money market funds.

 

 

 

U N D  U M M A R Y

  5


Fund Summary  as of February 28, 2023    iShares® MSCI Global Gold Miners ETF

 

Investment Objective

The iShares MSCI Global Gold Miners ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of gold mining, as represented by the MSCI ACWI Select Gold Miners Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6-Month
Total Returns
     1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    18.35      (21.12 )%       5.99     (2.83 )%         (21.12 )%       33.79      (24.92 )% 

Fund Market

    18.69        (22.15      5.98       (2.77        (22.15      33.73        (24.46

Index

    18.05        (22.45      6.11       (2.69              (22.45      34.49        (23.90

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual           Hypothetical 5% Return         

 

 

     

 

 

    
 

Beginning
Account Value
(09/01/22)
 
 
 
      

Ending
Account Value
(02/28/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(09/01/22)
 
 
 
      

Ending
Account Value
(02/28/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
    

Annualized
Expense
Ratio
 
 
 
  $     1,000.00          $     1,183.50          $     2.11               $     1,000.00          $     1,022.90          $     1.96        0.39

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

Portfolio Information

 

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments(a)
 
 

Canada

    53.3

United States

    19.3  

Australia

    6.3  

South Africa

    6.3  

China

    4.6  

Saudi Arabia

    4.3  

Turkey

    1.8  

United Kingdom

    1.7  

Peru

    1.4  

Indonesia

    1.0  

Russia

    0.0  

TEN LARGEST HOLDINGS

 

Security    
Percent of
Total Investments(a)
 
 

Newmont Corp.

    18.5

Barrick Gold Corp.

    15.1  

Agnico Eagle Mines Ltd.

    11.0  

Wheaton Precious Metals Corp.

    4.6  

Newcrest Mining Ltd.

    4.4  

AngloGold Ashanti Ltd.

    4.3  

Gold Fields Ltd.

    4.2  

Zijin Mining Group Co. Ltd., Class H

    4.1  

Yamana Gold Inc.

    3.1  

Kinross Gold Corp.

    3.0  

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary  as of February 28, 2023    iShares® MSCI Global Metals & Mining Producers ETF

 

Investment Objective

The iShares MSCI Global Metals & Mining Producers ETF(the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in mining, extraction or production of diversified metals, excluding gold and silver, as represented by the MSCI ACWI Select Metals & Mining Producers ex Gold & Silver Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6-Month
Total Returns
     1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    18.72      (4.48 )%       8.97     4.62        (4.48 )%       53.66      57.05

Fund Market

    19.39        (5.38      9.15       4.72          (5.38      54.94        58.55  

Index

    18.48        (4.49      9.34       4.86                (4.49      56.25        60.72  

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual           Hypothetical 5% Return         

 

 

     

 

 

    
 

Beginning
Account Value
(09/01/22)
 
 
 
      

Ending
Account Value
(02/28/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(09/01/22)
 
 
 
      

Ending
Account Value
(02/28/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
    

Annualized
Expense
Ratio
 
 
 
  $     1,000.00          $     1,187.20          $     2.11               $     1,000.00          $     1,022.90          $     1.96        0.39

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

Portfolio Information

 

INDUSTRY ALLOCATION

 

Industry    
Percent of
Total Investments
 
(a) 

Diversified Metals & Mining

    48.9

Steel

    34.9  

Copper

    10.1  

Aluminum

    4.3  

Precious Metals & Minerals

    1.8  

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

Australia

    26.1

United States

    18.2  

United Kingdom

    17.3  

Brazil

    6.7  

Canada

    4.9  

Japan

    4.4  

India

    3.0  

South Korea

    2.3  

China

    2.2  

South Africa

    2.1  

Taiwan

    1.8  

Sweden

    1.7  

France

    1.7  

Saudi Arabia

    1.4  

Mexico

    1.2  

Other (each representing less than 1%)

    5.0  

 

  (a)

Excludes money market funds.

 

 

 

U N D  U M M A R Y

  7


Fund Summary  as of February 28, 2023    iShares® MSCI Global Silver and Metals Miners ETF

 

Investment Objective

The iShares MSCIGlobal Silver and Metals Miners ETF(the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of silver exploration or metals mining, as represented by the MSCI ACWI Select Silver Miners Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6-Month
Total Returns
     1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    12.37      (24.97 )%       1.35     (4.56 )%         (24.97 )%       6.93      (37.31 )% 

Fund Market

    11.57        (25.67      1.13       (4.64        (25.67      5.79        (37.80

Index

    12.38        (25.09      1.35       (4.58              (25.09      6.92        (37.43

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

Actual           Hypothetical 5% Return         

 

 

     

 

 

    
 

Beginning
Account Value
(09/01/22)
 
 
 
      

Ending
Account Value
(02/28/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(09/01/22)
 
 
 
      

Ending
Account Value
(02/28/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
    

Annualized
Expense
Ratio
 
 
 
  $     1,000.00          $     1,123.70          $     2.05               $     1,000.00          $     1,022.90          $     1.96        0.39

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

Portfolio Information

 

GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

Canada

    65.9

United States

    20.0  

Mexico

    7.8  

Japan

    4.7  

Other (each representing less than 1%)

    1.6  

TEN LARGEST HOLDINGS

 

Security    
Percent of
Total Investments
 
(a) 

Pan American Silver Corp.

    15.0

Hecla Mining Co.

    14.8  

Industrias Penoles SAB de CV

    7.7  

First Majestic Silver Corp.

    6.7  

Asahi Holdings Inc.

    4.7  

Wheaton Precious Metals Corp.

    4.6  

Newmont Corp.

    4.5  

Fortuna Silver Mines Inc.

    4.5  

MAG Silver Corp.

    4.4  

Agnico Eagle Mines Ltd.

    4.4  

 

  (a)

Excludes money market funds.

 

 

 

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2 0 2 3  H A R E S   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


About Fund Performance

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Disclosure of Expenses

Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.

The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

 

 

B O U T  U N D  E R F O R M A  N C E / D I S C L O S U R E  OF  X P E N S E S

  9


Schedule of Investments  (unaudited)

February 28, 2023

  

iShares® MSCI Agriculture Producers ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Australia — 0.8%  

Australian Agricultural Co. Ltd.(a)

    105,007     $ 117,827  

Costa Group Holdings Ltd.

    231,220       404,864  

Elders Ltd.

    77,883       487,435  

Inghams Group Ltd.

    184,997       402,703  

Nufarm Ltd./Australia

    192,090       747,921  

Select Harvests Ltd.

    60,201       169,036  
   

 

 

 
      2,329,786  
Brazil — 0.5%  

BrasilAgro - Co. Brasileira de Propriedades Agricolas

    22,933       113,626  

Jalles Machado SA

    51,341       76,588  

Sao Martinho SA

    79,293       411,955  

SLC Agricola SA

    59,307       558,129  

Tres Tentos Agroindustrial SA

    61,748       150,258  
   

 

 

 
      1,310,556  
Canada — 7.4%  

Ag Growth International Inc.

    9,396       378,732  

Nutrien Ltd.

    261,331       20,362,559  

Rogers Sugar Inc.

    46,723       212,642  
   

 

 

 
      20,953,933  
China — 2.3%  

Asia - Potash International Investment Guangzhou Co. Ltd.(a)

    27,500       112,691  

AustAsia Group Ltd.

    58,848       30,588  

Beijing Dabeinong Technology Group Co. Ltd., Class A(a)

    122,600       145,256  

China BlueChemical Ltd., Class H

    756,000       170,640  

China Modern Dairy Holdings Ltd.(b)

    1,566,000       213,575  

China XLX Fertiliser Ltd.

    275,000       145,171  

China Youran Dairy Group Ltd.(a)(b)(c)

    375,000       91,844  

COFCO Joycome Foods Ltd.

    1,163,000       339,572  

First Tractor Co. Ltd., Class H

    200,000       99,414  

Fujian Sunner Development Co. Ltd., Class A

    37,100       132,456  

Heilongjiang Agriculture Co. Ltd., Class A

    52,700       107,923  

Henan Shuanghui Investment & Development Co. Ltd., Class A

    103,400       393,669  

Inner Mongolia Yili Industrial Group Co. Ltd., Class A

    193,500       848,449  

Jiangsu Yangnong Chemical Co. Ltd., Class A

    9,500       146,730  

Muyuan Foods Co. Ltd., Class A

    159,266       1,133,677  

New Hope Liuhe Co. Ltd., Class A(a)

    133,800       253,846  

Qinghai Salt Lake Industry Co. Ltd., Class A(a)

    162,400       578,531  

Shandong Hualu Hengsheng Chemical Co. Ltd., Class A

    63,680       330,990  

Shandong Weifang Rainbow Chemical Co. Ltd.

    8,500       94,699  

Sinofert Holdings Ltd.

    1,056,000       127,865  

Wens Foodstuffs Group Co. Ltd., Class A

    198,820       565,516  

Yuan Longping High-Tech Agriculture Co. Ltd., Class A(a)

    39,300       96,680  

Yunnan Yuntianhua Co. Ltd.(a)

    54,900       191,690  

Zangge Mining Co. Ltd.

    47,400       190,120  
   

 

 

 
      6,541,592  
Egypt — 0.1%  

Abou Kir Fertilizers & Chemical Industries

    161,776       220,398  

Misr Fertilizers Production Co. SAE

    23,499       109,541  
   

 

 

 
      329,939  
France — 0.1%  

Vilmorin & Cie SA

    2,854       145,651  
   

 

 

 
Germany — 1.2%  

K+S AG, Registered

    96,253       2,284,745  

KWS Saat SE & Co. KGaA

    5,751       383,715  
Security   Shares     Value  
Germany (continued)  

Suedzucker AG

    35,572     $ 603,562  
   

 

 

 
      3,272,022  
Hong Kong — 0.9%  

WH Group Ltd.(c)

    4,189,500       2,437,991  
   

 

 

 
India — 3.5%  

Astec Lifesciences Ltd.

    2,928       47,787  

Balrampur Chini Mills Ltd.

    60,936       263,022  

Bayer CropScience Ltd.

    6,714       347,533  

Chambal Fertilisers and Chemicals Ltd.

    82,842       274,969  

Coromandel International Ltd.

    59,544       646,859  

Deepak Fertilisers & Petrochemicals Corp. Ltd.

    28,539       213,046  

EID Parry India Ltd.

    39,743       241,403  

Escorts Kubota Ltd.

    16,178       406,145  

Gujarat Ambuja Exports Ltd.

    34,246       94,430  

Gujarat Narmada Valley Fertilizers & Chemicals Ltd.

    38,678       245,814  

Gujarat State Fertilizers & Chemicals Ltd.

    99,168       149,979  

Kaveri Seed Co. Ltd.

    10,011       62,471  

Paradeep Phosphates Ltd., NVS

    141,893       93,830  

PI Industries Ltd.

    38,099       1,427,322  

Rallis India Ltd.

    38,718       91,970  

Rashtriya Chemicals & Fertilizers Ltd.

    68,648       80,905  

Sharda Cropchem Ltd.

    13,472       76,562  

Shree Renuka Sugars Ltd.(a)

    317,825       167,407  

Sumitomo Chemical India Ltd.

    49,689       268,756  

Tata Coffee Ltd.

    37,627       94,480  

Tata Consumer Products Ltd.

    280,032       2,421,480  

Triveni Engineering & Industries Ltd.

    36,100       117,751  

UPL Ltd.

    245,387       2,058,856  
   

 

 

 
      9,892,777  
Indonesia — 0.7%  

Astra Agro Lestari Tbk PT

    239,500       130,362  

Charoen Pokphand Indonesia Tbk PT

    3,707,100       1,306,464  

Inti Agri Resources Tbk PT(a)(d)

    2,230,700        

Japfa Comfeed Indonesia Tbk PT

    2,626,900       231,645  

Perusahaan Perkebunan London Sumatra Indonesia Tbk PT

    1,528,500       106,746  

Sawit Sumbermas Sarana Tbk PT

    1,659,600       176,842  
   

 

 

 
      1,952,059  
Ireland — 0.1%  

Origin Enterprises PLC

    57,518       257,340  
   

 

 

 
Israel — 1.1%  

ICL Group Ltd.

    356,190       2,585,000  

Israel Corp. Ltd.

    1,951       665,153  
   

 

 

 
      3,250,153  
Japan — 3.7%  

Hokuto Corp.

    10,300       142,513  

Kubota Corp.

    508,900       7,681,215  

Kumiai Chemical Industry Co. Ltd.

    36,800       233,282  

Maruha Nichiro Corp.

    21,200       377,408  

Mitsui DM Sugar Holdings Co. Ltd.

    8,400       128,416  

NH Foods Ltd.

    41,000       1,132,102  

Prima Meat Packers Ltd.

    11,700       183,947  

Sakata Seed Corp.

    14,600       435,732  

YAMABIKO Corp.

    16,600       153,936  
   

 

 

 
      10,468,551  
Malaysia — 1.5%  

Farm Fresh Bhd

    369,900       129,367  

Genting Plantations Bhd

    134,100       179,896  

 

 

10  

2 0 2 3  H A R E S   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)

February 28, 2023

  

iShares® MSCI Agriculture Producers ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Malaysia (continued)  

IOI Corp. Bhd

    1,264,500     $ 1,079,210  

Kuala Lumpur Kepong Bhd

    217,400       1,007,356  

QL Resources Bhd

    553,907       717,147  

Sime Darby Plantation Bhd

    1,044,600       984,982  

Ta Ann Holdings Bhd

    77,800       57,906  

TSH Resources Bhd

    275,400       63,215  

United Plantations Bhd

    52,200       191,933  
   

 

 

 
      4,411,012  
Netherlands — 0.6%  

OCI NV

    52,929       1,758,179  
   

 

 

 
Norway — 4.1%  

Austevoll Seafood ASA

    45,408       387,998  

Bakkafrost P/F

    25,256       1,652,392  

Grieg Seafood ASA

    22,587       162,854  

Leroy Seafood Group ASA

    135,586       672,328  

Mowi ASA

    207,830       3,588,135  

Salmar ASA

    32,812       1,360,225  

Yara International ASA

    83,180       3,954,278  
   

 

 

 
      11,778,210  
Poland — 0.1%  

Grupa Azoty SA(a)

    24,686       214,812  
   

 

 

 
Qatar — 0.1%  

Baladna

    378,473       139,440  
   

 

 

 
Russia — 0.0%  

PhosAgro PJSC(a)(d)

    7,038       1  

PhosAgro PJSC, GDR(a)(d)

    2        

PhosAgro PJSC, New(a)(d)

    136       1  

Ros Agro PLC, GDR(a)(d)

    5,334       1  
   

 

 

 
      3  
Saudi Arabia — 2.1%  

Al Jouf Agricultural Development Co.

    7,318       102,575  

Almarai Co. JSC

    125,596       1,755,043  

National Agriculture Development Co. (The)(a)

    24,792       158,272  

SABIC Agri-Nutrients Co.

    107,618       3,828,218  

Saudi Fisheries Co.(a)

    9,759       69,345  

Tanmiah Food Co.

    2,989       96,218  
   

 

 

 
      6,009,671  
Singapore — 1.3%  

Bumitama Agri Ltd.

    175,100       83,686  

First Resources Ltd.

    276,300       315,029  

Golden Agri-Resources Ltd.

    3,254,900       615,521  

Wilmar International Ltd.

    965,100       2,819,688  
   

 

 

 
      3,833,924  
South Africa — 0.1%  

Astral Foods Ltd.

    19,230       171,201  

Oceana Group Ltd.

    43,476       171,631  
   

 

 

 
      342,832  
South Korea — 0.2%  

Dongwon Industries Co. Ltd.

    8,789       342,344  

Harim Holdings Co. Ltd.

    22,303       201,842  

Hyundai Feed Inc.(a)(b)

    5,533       74,497  

Namhae Chemical Corp.

    11,128       75,732  
   

 

 

 
      694,415  
Sweden — 0.7%  

Husqvarna AB, Class B

    210,807       1,866,495  
   

 

 

 
Security   Shares     Value  
Taiwan — 0.5%  

Charoen Pokphand Enterprise.

    90,800     $ 239,409  

Sesoda Corp.

    83,000       115,301  

Sinon Corp.

    179,000       232,434  

Taiwan Fertilizer Co. Ltd.

    369,000       692,812  

Taiwan TEA Corp.(a)

    259,000       185,841  
   

 

 

 
      1,465,797  
Thailand — 0.6%  

Betagro PCL, NVS

    312,800       296,503  

Charoen Pokphand Foods PCL, NVDR

    1,946,800       1,222,759  

GFPT PCL, NVDR

    243,000       83,884  

Khon Kaen Sugar Industry PCL, NVDR

    987,754       103,397  

Thaifoods Group PCL, NVDR

    616,900       92,537  
   

 

 

 
      1,799,080  
Turkey — 0.4%  

Hektas Ticaret TAS(a)

    566,667       1,067,020  

Turk Traktor ve Ziraat Makineleri AS

    6,641       198,763  
   

 

 

 
      1,265,783  
United Kingdom — 3.3%  

CNH Industrial NV

    514,088       8,427,115  

Cranswick PLC

    26,919       1,013,479  
   

 

 

 
      9,440,594  
United States — 59.4%  

AGCO Corp.(b)

    31,855       4,485,505  

American Vanguard Corp.

    13,831       288,653  

Archer-Daniels-Midland Co.

    275,976       21,967,690  

Benson Hill Inc.(a)(b)

    56,301       125,551  

Bunge Ltd.

    75,257       7,187,044  

Cal-Maine Foods Inc.

    18,861       1,071,305  

CF Industries Holdings Inc.

    98,562       8,465,490  

Corteva Inc.

    358,948       22,358,871  

Darling Ingredients Inc.(a)

    80,518       5,094,374  

Deere & Co.

    144,047       60,390,264  

FMC Corp.

    63,283       8,172,999  

Fresh Del Monte Produce Inc.

    19,047       595,790  

Ingredion Inc.

    32,934       3,273,640  

Intrepid Potash Inc.(a)(b)

    5,420       171,651  

Lamb Weston Holdings Inc.

    72,258       7,272,045  

Lindsay Corp.

    5,539       833,564  

Mosaic Co. (The)

    171,052       9,098,256  

Pilgrim’s Pride Corp.(a)(b)

    23,797       556,612  

Scotts Miracle-Gro Co. (The)

    20,898       1,724,085  

Titan International Inc.(a)

    25,009       310,362  

Toro Co. (The)

    52,253       5,770,821  

Vital Farms Inc.(a)

    10,127       163,652  
   

 

 

 
      169,378,224  
   

 

 

 

Total Common Stocks — 97.4%
(Cost: $294,367,119)

      277,540,821  
   

 

 

 

Preferred Stocks

   
Chile — 2.2%            

Sociedad Quimica y Minera de Chile SA, Class B, Preference Shares

    71,750       6,403,732  
   

 

 

 

Total Preferred Stocks — 2.2%
(Cost: $5,027,479)

      6,403,732  
   

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $299,394,598)

      283,944,553  
   

 

 

 

 

 

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

  11


Schedule of Investments  (unaudited) (continued)

February 28, 2023

  

iShares® MSCI Agriculture Producers ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Short-Term Securities

   
Money Market Funds — 1.6%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 4.81%(e)(f)(g)

    4,624,052     $ 4,626,826  
   

 

 

 

Total Short-Term Securities — 1.6%
(Cost: $4,626,344)

      4,626,826  
   

 

 

 

Total Investments — 101.2%
(Cost: $304,020,942)

      288,571,379  

Liabilities in Excess of Other Assets — (1.2)%

      (3,468,304
   

 

 

 

NetAssets—100.0%

    $ 285,103,075  
   

 

 

 

 

 

(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) 

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

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(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 February 28, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
08/31/22
    Purchases
at Cost
    Proceeds
from Sale
   

Net Realized

Gain (Loss)

   

Change in
Unrealized
Appreciation

(Depreciation)

    Value at
02/28/23
    Shares
Held at
02/28/23
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 807,964     $ 3,818,841 (a)    $     $ (136   $ 157     $ 4,626,826       4,624,052     $ 14,416 (b)    $  

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

                0 (a)                              6,439        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (136   $ 157     $ 4,626,826       $ 20,855     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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) 

As of period end, the entity is no longer held.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount
(000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

                 

Euro STOXX 50 Index

     6          03/17/23        $ 269        $ 16,785  

S&P 500 E-Mini Index

     3          03/17/23          596          (204
                 

 

 

 
                  $ 16,581  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

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

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 16,785      $      $      $      $ 16,785  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

12  

2 0 2 3  H A R E S   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)

February 28, 2023

  

iShares® MSCI Agriculture Producers  ETF

 

Derivative Financial Instruments Categorized by Risk Exposure (continued)

 

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

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $           —      $           —      $ 204      $           —      $           —      $           —      $ 204  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended February 28, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

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

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ 115,947      $      $      $      $ 115,947  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $           —      $           —      $ 8,938      $           —      $           —      $           —      $ 8,938  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — long

   $ 1,018,164  

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

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 197,237,734        $ 80,303,084        $ 3        $ 277,540,821  

Preferred Stocks

              6,403,732                   6,403,732  

Short-Term Securities

                 

Money Market Funds

     4,626,826                            4,626,826  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 201,864,560        $ 86,706,816        $ 3        $ 288,571,379  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $        $ 16,785        $        $ 16,785  

Liabilities

                 

Equity Contracts

     (204                          (204
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ (204      $ 16,785        $          16,581  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

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

  13


Schedule of Investments  (unaudited)

February 28, 2023

  

iShares® MSCI Global Energy Producers ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Australia — 2.8%  

Beach Energy Ltd.

    68,404     $ 64,513  

Boss Energy Ltd. (a)

    14,504       25,013  

Karoon Energy Ltd.(a)

    24,206       37,646  

New Hope Corp. Ltd.

    22,793       83,000  

Paladin Energy Ltd.(a)

    121,520       56,509  

Santos Ltd.

    136,493       637,342  

Strike Energy Ltd.(a)

    84,638       19,934  

Terracom Ltd.

    23,912       12,114  

Washington H Soul Pattinson & Co. Ltd.

    9,515       186,126  

Whitehaven Coal Ltd.

    35,446       171,704  

Woodside Energy Group Ltd.

    81,707       1,979,758  
   

 

 

 
      3,273,659  
Austria — 0.3%  

OMV AG

    6,373       310,413  
   

 

 

 
Brazil — 1.0%  

3R Petroleum Oleo E Gas SA(a)

    7,644       53,160  

Enauta Participacoes SA

    5,292       13,929  

Petro Rio SA(a)

    30,404       195,707  

Petroleo Brasileiro SA

    160,258       880,042  

Petroreconcavo SA

    5,482       29,633  
   

 

 

 
      1,172,471  
Canada — 8.5%  

Advantage Energy Ltd.(a)

    7,866       46,003  

Africa Oil Corp.

    16,665       34,075  

ARC Resources Ltd.

    27,376       298,137  

Athabasca Oil Corp.(a)

    25,284       55,219  

Baytex Energy Corp.(a)

    23,520       90,667  

Birchcliff Energy Ltd.

    11,784       72,457  

Cameco Corp.

    18,619       508,969  

Canadian Natural Resources Ltd.

    47,657       2,693,171  

Cardinal Energy Ltd.(b)

    5,880       30,682  

Cenovus Energy Inc.

    62,010       1,143,402  

Crescent Point Energy Corp.

    23,879       163,277  

Crew Energy Inc.(a)

    5,880       20,124  

Denison Mines Corp.(a)

    34,104       42,989  

Energy Fuels Inc./Canada(a)

    6,762       45,542  

Enerplus Corp.

    9,861       156,461  

Freehold Royalties Ltd.

    5,797       65,766  

Frontera Energy Corp.(a)

    2,548       22,968  

Headwater Exploration Inc.

    8,428       36,998  

Imperial Oil Ltd.

    9,101       450,148  

International Petroleum Corp.(a)

    4,141       41,789  

Kelt Exploration Ltd.(a)

    6,860       23,629  

MEG Energy Corp.(a)

    11,466       181,170  

NexGen Energy Ltd.(a)

    17,542       73,922  

NuVista Energy Ltd.(a)

    7,644       67,225  

Obsidian Energy Ltd.(a)

    2,940       20,771  

Paramount Resources Ltd., Class A

    3,234       70,629  

Parex Resources Inc.

    4,704       76,671  

Peyto Exploration & Development Corp.

    7,252       63,033  

Pipestone Energy Corp.(a)

    5,096       10,644  

PrairieSky Royalty Ltd.

    9,417       147,898  

Spartan Delta Corp.

    5,684       51,612  

Suncor Energy Inc.

    58,329       1,960,402  

Surge Energy Inc.

    3,748       24,199  

Tamarack Valley Energy Ltd.

    21,558       68,568  

Topaz Energy Corp.

    3,920       55,561  
Security   Shares     Value  
Canada (continued)  

Tourmaline Oil Corp.

    13,795     $ 604,574  

Vermilion Energy Inc.

    6,958       93,215  

Whitecap Resources Inc.

    25,748       197,379  
   

 

 

 
      9,809,946  
China — 1.4%  

AAG Energy Holdings Ltd.(c)

    67,000       14,735  

CGN Mining Co. Ltd.(a)

    90,000       10,669  

China Coal Energy Co. Ltd., Class H.

    91,000       70,419  

China Shenhua Energy Co. Ltd., Class A.

    17,800       71,726  

China Shenhua Energy Co. Ltd., Class H

    146,000       439,150  

Guanghui Energy Co. Ltd., Class A

    19,600       30,364  

Inner Mongolia Dian Tou Energy Corp. Ltd.

    5,800       11,120  

Inner Mongolia Yitai Coal Co. Ltd., Class B

    47,800       64,454  

Jizhong Energy Resources Co. Ltd.

    10,100       10,349  

PetroChina Co. Ltd., Class A

    55,600       41,762  

PetroChina Co. Ltd., Class H

    898,000       458,104  

Pingdingshan Tianan Coal Mining Co. Ltd.

    7,000       12,087  

Productive Technologies Co. Ltd.(a)

    196,000       24,720  

Shaanxi Coal Industry Co. Ltd., Class A

    24,300       69,930  

Shan Xi Hua Yang Group New Energy Co. Ltd.

    7,300       16,716  

Shanxi Coking Coal Energy Group Co. Ltd., Class A

    9,810       18,370  

Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A

    9,800       31,462  

Yankuang Energy Group Co. Ltd., Class A

    6,900       35,420  

Yankuang Energy Group Co. Ltd., Class H

    68,000       205,111  
   

 

 

 
      1,636,668  
Finland — 0.8%  

Neste OYJ

    18,168       876,265  
   

 

 

 
France — 5.7%  

Etablissements Maurel et Prom SA

    2,548       9,486  

TotalEnergies SE

    107,043       6,604,997  
   

 

 

 
      6,614,483  
Greece — 0.1%  

Hellenic Energy Holdings SA

    2,971       26,271  

Motor Oil Hellas Corinth Refineries SA

    2,766       73,238  
   

 

 

 
      99,509  
Hong Kong — 0.0%  

United Energy Group Ltd.(b)

    360,000       33,042  
   

 

 

 
Hungary — 0.1%  

MOL Hungarian Oil & Gas PLC

    17,248       130,976  
   

 

 

 
India — 3.8%  

Bharat Petroleum Corp. Ltd.

    38,464       147,684  

Coal India Ltd.

    68,167       177,537  

Gujarat Mineral Development Corp. Ltd.

    3,822       6,165  

Hindustan Petroleum Corp. Ltd.

    26,950       70,213  

Indian Oil Corp. Ltd.

    122,856       113,031  

Oil & Natural Gas Corp. Ltd.

    107,937       198,048  

Oil India Ltd.

    11,760       35,055  

Reliance Industries Ltd.

    98,646       2,766,836  

Reliance Industries Ltd., GDR(c)

    16,018       890,326  
   

 

 

 
      4,404,895  
Indonesia — 0.4%  

Adaro Energy Indonesia Tbk PT

    607,600       119,043  

Bukit Asam Tbk PT

    159,400       40,335  

Bumi Resources Tbk PT(a)

    3,151,200       28,103  

Energi Mega Persada Tbk PT, NVS

    404,000       7,206  

Harum Energy Tbk PT

    117,600       12,564  

 

 

14  

2 0 2 3  H A R E S   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)

February 28, 2023

  

iShares® MSCI Global Energy Producers ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Indonesia (continued)  

Indika Energy Tbk PT

    68,600     $ 10,342  

Indo Tambangraya Megah Tbk PT

    19,600       47,776  

Medco Energi Internasional Tbk PT

    294,012       22,060  

Sugih Energy Tbk PT(a)(d)

    206,700        

United Tractors Tbk PT

    71,200       130,228  
   

 

 

 
      417,657  
Israel — 0.1%  

Delek Group Ltd.(a)

    392       36,643  

Equital Ltd.(a)

    960       22,680  

Naphtha Israel Petroleum Corp. Ltd.

    1,373       5,098  

Oil Refineries Ltd.

    89,082       26,878  

Paz Oil Co. Ltd.(a)

    411       43,555  
   

 

 

 
      134,854  
Italy — 1.3%  

Eni SpA

    107,751       1,521,878  

Saras SpA(a)

    24,206       36,616  
   

 

 

 
      1,558,494  
Japan — 1.1%  

Cosmo Energy Holdings Co. Ltd.

    3,536       105,693  

ENEOS Holdings Inc.

    130,400       448,299  

Idemitsu Kosan Co. Ltd.

    9,268       205,115  

Inpex Corp.

    44,400       465,507  

Japan Petroleum Exploration Co. Ltd.

    1,400       50,443  
   

 

 

 
      1,275,057  
Malaysia — 0.0%  

Hibiscus Petroleum Bhd

    58,800       13,933  
   

 

 

 
Norway — 1.4%  

Aker BP ASA

    13,623       365,650  

BW Energy Ltd.(a)

    3,822       10,728  

DNO ASA

    21,787       24,964  

Equinor ASA

    40,984       1,254,657  
   

 

 

 
      1,655,999  
Philippines — 0.0%  

Semirara Mining & Power Corp.

    29,600       16,025  
   

 

 

 
Poland — 0.4%  

Polski Koncern Naftowy ORLEN SA

    27,527       411,131  
   

 

 

 
Portugal — 0.2%  

Galp Energia SGPS SA

    21,270       259,484  
   

 

 

 
Russia — 0.0%  

LUKOIL PJSC(a)(d)

    17,021       2  

Rosneft Oil Co. PJSC(a)(d)

    47,821       6  

Surgutneftegas PJSC(a)(d)

    285,010       38  

Tatneft PJSC(a)(d)

    57,983       8  
   

 

 

 
      54  
Saudi Arabia — 0.8%  

Rabigh Refining & Petrochemical Co.(a)

    17,761       47,879  

Saudi Arabian Oil Co.(c)

    103,837       877,194  
   

 

 

 
      925,073  
South Africa — 0.2%  

Exxaro Resources Ltd.

    10,795       118,219  

Thungela Resources Ltd.

    5,518       64,159  
   

 

 

 
      182,378  
South Korea — 0.4%  

HD Hyundai Co. Ltd.

    1,960       88,027  

SK Innovation Co. Ltd.(a)

    2,356       266,476  
Security   Shares     Value  
South Korea (continued)  

S-Oil Corp.

    1,963     $ 119,023  
   

 

 

 
      473,526  
Spain — 0.8%  

Repsol SA

    59,166       935,701  
   

 

 

 
Thailand — 0.5%  

Bangchak Corp. PCL, NVDR

    44,100       40,187  

Banpu PCL, NVDR

    346,000       106,657  

Esso Thailand PCL, NVDR(b)

    39,200       9,906  

IRPC PCL, NVDR

    480,200       38,842  

PTT Exploration & Production PCL, NVDR

    58,831       248,999  

Star Petroleum Refining PCL, NVDR.

    88,800       27,602  

Thai Oil PCL, NVDR

    52,100       74,298  
   

 

 

 
      546,491  
Turkey — 0.2%  

Turkiye Petrol Rafinerileri AS(a)

    5,898       184,948  
   

 

 

 
United Arab Emirates — 0.0%  

Dana Gas PJSC

    150,724       32,410  
   

 

 

 
United Kingdom — 12.7%  

BP PLC

    780,795       5,131,016  

Capricorn Energy PLC(a)

    13,230       39,689  

Diversified Energy Co. PLC

    34,594       43,359  

Energean PLC

    5,096       73,924  

EnQuest PLC(a)

    61,348       14,015  

Genel Energy PLC

    7,056       10,633  

Gulf Keystone Petroleum Ltd.

    8,330       20,770  

Harbour Energy PLC

    18,605       64,915  

Pantheon Resources PLC(a)(b)

    31,262       21,472  

Serica Energy PLC

    8,428       26,250  

Shell PLC

    303,590       9,195,248  

Tullow Oil PLC(a)

    46,550       19,487  
   

 

 

 
      14,660,778  
United States — 53.4%  

Antero Resources Corp.(a)

    11,662       305,544  

APA Corp.

    13,818       530,335  

Arch Resources Inc.

    784       123,362  

Berry Corp.

    2,352       22,179  

California Resources Corp.

    2,254       95,119  

Callon Petroleum Co.(a)(b)

    2,100       81,396  

Centrus Energy Corp., Class A(a)(b)

    438       19,627  

Chesapeake Energy Corp.

    4,880       394,353  

Chevron Corp.

    78,994       12,699,865  

Chord Energy Corp.

    1,699       228,719  

Civitas Resources Inc.

    2,352       165,040  

CNX Resources Corp.(a)

    7,534       115,647  

Comstock Resources Inc.

    3,920       47,589  

ConocoPhillips

    53,568       5,536,253  

CONSOL Energy Inc.

    1,410       77,169  

Coterra Energy Inc.

    34,016       849,379  

Crescent Energy Co., Class A

    1,704       19,664  

CVR Energy Inc.

    1,274       40,424  

Delek U.S. Holdings Inc.

    2,744       69,066  

Denbury Inc.(a)

    2,159       179,996  

Devon Energy Corp.

    26,725       1,441,012  

Diamondback Energy Inc.

    7,166       1,007,396  

Earthstone Energy Inc., Class A(a)(b)

    2,058       28,709  

Enviva Inc.

    1,415       61,637  

EOG Resources Inc.

    25,217       2,850,025  

 

 

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

  15


Schedule of Investments  (unaudited) (continued)

February 28, 2023

  

iShares® MSCI Global Energy Producers ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United States (continued)  

EQT Corp.

    14,116     $ 468,369  

Exxon Mobil Corp.

    177,144       19,469,897  

Gran Tierra Energy Inc.(a)

    15,190       12,673  

Gulfport Energy Corp.(a)

    530       35,044  

Hess Corp.

    11,922       1,605,893  

HF Sinclair Corp.

    6,456       320,992  

Kimbell Royalty Partners LP

    2,254       34,779  

Kosmos Energy Ltd.(a)

    19,915       156,731  

Laredo Petroleum Inc.(a)

    658       33,815  

Magnolia Oil & Gas Corp., Class A.

    7,258       158,587  

Marathon Oil Corp.

    27,354       687,953  

Marathon Petroleum Corp.

    20,175       2,493,630  

Matador Resources Co.

    5,099       274,275  

Murphy Oil Corp.

    6,428       250,821  

Northern Oil and Gas Inc.

    2,842       88,216  

Occidental Petroleum Corp.

    31,105       1,821,509  

Ovintiv Inc.

    10,627       454,517  

Par Pacific Holdings Inc.(a)

    1,960       54,449  

PBF Energy Inc., Class A

    4,318       188,740  

PDC Energy Inc.

    3,914       262,669  

Peabody Energy Corp.(a)

    4,900       133,770  

Permian Res Corp., NVS

    8,936       96,598  

Pioneer Natural Resources Co.

    9,765       1,957,004  

Range Resources Corp.

    10,364       279,206  

Ranger Oil Corp.

    882       36,603  

SandRidge Energy Inc.(a)

    1,313       19,157  

SilverBow Resources Inc.(a)

    588       14,477  

Sitio Royalties Corp.

    3,134       73,680  

SM Energy Co.

    5,396       159,236  

Southwestern Energy Co.(a)

    37,842       200,563  

Talos Energy Inc.(a)

    2,450       43,634  

Tellurian Inc.(a)

    20,384       30,372  

Texas Pacific Land Corp.

    270       480,651  

Uranium Energy Corp.(a)(b)

    15,600       57,720  

VAALCO Energy Inc.

    4,410       20,683  

Valero Energy Corp.

    16,561       2,181,581  

Viper Energy Partners LP

    2,531       72,463  

Vitesse Energy Inc.(a)

    928       16,138  

W&T Offshore Inc.(a)

    4,214       23,641  
   

 

 

 
      61,760,241  
   

 

 

 

Total Common Stocks — 98.4%
(Cost: $87,695,011)

      113,806,561  
   

 

 

 
Security   Shares     Value  

Preferred Stocks

 

Brazil — 0.9%  

Petroleo Brasileiro SA, Preference Shares, NVS

    204,923     $ 987,930  
   

 

 

 
Russia — 0.0%  

Surgutneftegas PJSC, Preference Shares,
NVS(a)(d)

    275,500       37  
   

 

 

 

Total Preferred Stocks — 0.9%
(Cost: $925,150)

      987,967  
   

 

 

 

Total Long-Term Investments — 99.3%
(Cost: $88,620,161)

      114,794,528  
   

 

 

 

Short-Term Securities

 

Money Market Funds — 0.2%  

BlackRock Cash Funds: Institutional, SL Agency Shares, 4.81%(e)(f)(g)

    269,272       269,433  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.41%(e)(f)

    20,000       20,000  
   

 

 

 

Total Short-Term Securities — 0.2%
(Cost: $289,197)

      289,433  
   

 

 

 

Total Investments — 99.5%
(Cost: $88,909,358)

      115,083,961  

Other Assets Less Liabilities — 0.5%.

      541,193  
   

 

 

 

NetAssets — 100.0%

    $ 115,625,154  
   

 

 

 

 

(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) 

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

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

16  

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Schedule of Investments  (unaudited) (continued)

February 28, 2023

  

iShares® MSCI Global Energy Producers  ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
08/31/22
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
02/28/23
    Shares
Held at
02/28/23
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 504,806     $     $ (236,033 )(a)    $ 684     $ (24   $ 269,433       269,272     $ 2,676 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    160,000             (140,000 )(a)                  20,000       20,000       4,093        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 684     $ (24   $ 289,433       $ 6,769     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount
(000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

                 

E-Mini Energy Select Sector Index

     7          03/17/23        $ 612        $ (23,929

FTSE 100 Index

     1          03/17/23          95          (844
                 

 

 

 
                  $ (24,773
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

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

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 24,773      $      $      $      $ 24,773  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended February 28, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

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

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ (20,611    $      $      $      $ (20,611
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (20,807    $      $      $      $ (20,807
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — long

   $ 968,568  

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

 

 

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

  17


Schedule of Investments  (unaudited) (continued)

February 28, 2023

  

iShares® MSCI Global Energy Producers  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  

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 73,119,284        $ 40,687,223        $ 54        $ 113,806,561  

Preferred Stocks

     987,930                   37          987,967  

Short-Term Securities

                 

Money Market Funds

     289,433                            289,433  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 74,396,647        $ 40,687,223        $ 91        $ 115,083,961  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Liabilities

                 

Equity Contracts

   $ (23,929      $ (844      $        $ (24,773
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

18  

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Schedule of Investments  (unaudited)

February 28, 2023

  

iShares® MSCI Global Gold Miners ETF

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Common Stocks

 

Australia — 6.3%  

De Grey Mining Ltd.(a)(b)

    5,268,984      $ 4,932,818  

Newcrest Mining Ltd.

    1,214,984        18,599,868  

West African Resources Ltd.(a)

    5,075,712        3,159,855  
    

 

 

 
       26,692,541  
Canada — 53.0%  

Agnico Eagle Mines Ltd.

    1,013,789        46,673,672  

Alamos Gold Inc., Class A

    1,124,603        11,464,440  

B2Gold Corp.

    3,058,844        10,446,473  

Barrick Gold Corp.

    3,965,247        64,077,462  

Calibre Mining Corp.(a)

    3,156,707        2,637,337  

Centerra Gold Inc.

    857,530        5,417,302  

Eldorado Gold Corp.(a)

    687,586        6,424,860  

Equinox Gold Corp.(a)

    1,204,160        4,368,334  

IAMGOLD Corp.(a)

    2,041,126        4,622,264  

Kinross Gold Corp.

    3,466,720        12,804,887  

Lundin Gold Inc.

    425,166        4,393,434  

New Gold Inc.(a)

    3,515,388        3,220,399  

SSR Mining Inc.

    613,592        8,395,575  

Torex Gold Resources Inc.(a)

    410,937        5,059,540  

Wesdome Gold Mines Ltd.(a)

    729,887        3,482,275  

Wheaton Precious Metals Corp.

    471,246        19,633,811  

Yamana Gold Inc.

    2,590,804        13,253,068  
    

 

 

 
       226,375,133  
China — 4.6%  

Zijin Mining Group Co. Ltd., Class A

    1,245,135        2,046,041  

Zijin Mining Group Co. Ltd., Class H

    11,648,000        17,627,630  
    

 

 

 
       19,673,671  
Indonesia — 1.0%  

Aneka Tambang Tbk

    34,306,500        4,476,744  
    

 

 

 
Peru — 1.4%  

Cia. de Minas Buenaventura SAA, ADR.

    771,981        5,851,616  
    

 

 

 
Russia — 0.0%  

Polymetal International PLC(a)(c)

    822,891        110  

Polyus PJSC(a)(c)

    62,547        8  
    

 

 

 
       118  
Saudi Arabia — 4.3%  

AngloGold Ashanti Ltd.

    1,078,322        18,161,659  
    

 

 

 
South Africa — 6.2%  

DRDGOLD Ltd.

    3,835,467        2,815,453  
Security   Shares      Value  
South Africa (continued)  

Gold Fields Ltd.

    1,988,784      $ 18,048,453  

Harmony Gold Mining Co. Ltd.

    1,869,019        5,740,966  
    

 

 

 
       26,604,872  
Turkey — 1.8%  

Koza Altin Isletmeleri AS

    5,863,400        7,586,811  
    

 

 

 
United Kingdom — 1.7%  

Centamin PLC

    4,198,374        5,145,373  

Hochschild Mining PLC

    2,869,824        2,204,647  
    

 

 

 
       7,350,020  
United States — 19.3%  

Coeur Mining Inc.(a)

    1,210,180        3,775,762  

Newmont Corp.

    1,798,679        78,440,391  
    

 

 

 
       82,216,153  
    

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $520,666,835)

       424,989,338  
    

 

 

 

Short-Term Securities

    
Money Market Funds — 0.3%             

BlackRock Cash Funds: Institutional, SL Agency Shares, 4.81%(d)(e)(f)

    1,165,760        1,166,460  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.41%(d)(e)

    120,000        120,000  
    

 

 

 

Total Short-Term Securities — 0.3%
(Cost: $1,285,324)

       1,286,460  
    

 

 

 

Total Investments — 99.9%
(Cost: $521,952,159)

       426,275,798  

Other Assets Less Liabilities — 0.1%

       399,959  
    

 

 

 

NetAssets —100.0%

     $ 426,675,757  
    

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

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

  19


Schedule of Investments  (unaudited) (continued)

February 28, 2023

  

iShares® MSCI Global Gold Miners ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
08/31/22
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
02/28/23
    Shares
Held at
02/28/23
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 1,922,895     $     $ (759,022 )(a)    $ 2,679     $ (92   $ 1,166,460       1,165,760     $ 22,527 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    100,000       20,000 (a)                        120,000       120,000       6,538        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 2,679     $ (92   $ 1,286,460       $ 29,065     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number
of Contracts
       Expiration
Date
       Notional
Amount
(000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

                 

S&P/TSX 60 Index

     10          03/16/23        $ 1,783        $ (4,991
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

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

Liabilities — Derivative Financial Instruments

                                

Futures contracts

                                

Unrealized depreciation on futures contracts(a)

   $        $        $ 4,991        $        $        $        $ 4,991  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended February 28, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

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

Net Realized Gain (Loss) from

                                

Futures contracts

   $        $        $ (175,999      $        $        $        $ (175,999
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                                

Futures contracts

   $        $        $ 35,182        $        $        $        $ 35,182  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — long

   $ 1,444,841  

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

 

 

20  

2 0 2 3  H A R E S   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)

February 28, 2023

  

iShares® MSCI Global Gold Miners 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  

Assets

         

Investments

         

Long-Term Investments

         

Common Stocks

  $ 314,442,902     $ 110,546,318      $ 118      $ 424,989,338  

Short-Term Securities

         

Money Market Funds

    1,286,460                     1,286,460  
 

 

 

   

 

 

    

 

 

    

 

 

 
  $ 315,729,362     $ 110,546,318      $ 118      $ 426,275,798  
 

 

 

   

 

 

    

 

 

    

 

 

 

Derivative Financial Instruments(a)

         

Liabilities

         

Equity Contracts

  $ (4,991   $      $      $ (4,991
 

 

 

   

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

 

 

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

  21


Schedule of Investments  (unaudited)

February 28, 2023

  

iShares® MSCI Global Metals & Mining  Producers ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Australia — 26.0%  

29Metals Ltd.(a)

    368,419     $ 394,444  

Allkem Ltd.(b)

    786,713       5,980,520  

Alumina Ltd.

    3,429,659       3,460,508  

Arafura Rare Earths Ltd.(b)

    2,390,376       965,090  

Argosy Minerals Ltd.(b)

    1,574,700       730,829  

AVZ Minerals Ltd.(a)(b)(c)

    3,302,250       1,384,803  

BHP Group Ltd.

    6,964,876       210,792,254  

BlueScope Steel Ltd.

    644,525       8,246,499  

Chalice Mining Ltd.(b)

    464,418       1,976,680  

Champion Iron Ltd.

    458,925       2,260,274  

Core Lithium Ltd.(a)(b)

    2,025,650       1,259,109  

Coronado Global Resources Inc.(d)

    1,028,775       1,304,651  

Deterra Royalties Ltd.

    609,725       1,825,984  

Fortescue Metals Group Ltd.

    2,327,975       33,359,686  

Goulamina Holdings Pty Ltd.(b)

    1,246,575       437,915  

Grange Resources Ltd.(a)

    706,875       450,111  

IGO Ltd.

    933,800       8,208,615  

Iluka Resources Ltd.

    589,425       4,107,968  

Imdex Ltd.

    548,232       864,763  

ionner Ltd.(a)(b)

    2,036,582       517,274  

Jervois Global Ltd.(a)(b)

    2,327,742       281,001  

Lake Resources NL(a)(b)

    1,725,285       720,858  

Liontown Resources Ltd.(a)(b)

    2,272,317       2,063,667  

Lynas Rare Earths Ltd.(b)

    1,237,575       6,796,762  

Mincor Resources NL(a)(b)

    528,868       447,753  

Mineral Resources Ltd. .

    234,900       12,973,191  

Mount Gibson Iron Ltd.(a)(b)

    822,150       312,070  

Neometals Ltd.(b)

    646,292       384,147  

Nickel Mines Ltd.

    1,482,259       972,285  

OZ Minerals Ltd.

    461,825       8,682,609  

Perenti Global Ltd.(b)

    848,588       604,752  

Pilbara Minerals Ltd.(a)(b)

    3,493,050       9,733,617  

Rio Tinto Ltd.

    510,914       39,930,018  

Sandfire Resources Ltd.(a)

    679,469       2,675,458  

Sayona Mining Ltd.(a)(b)

    9,150,559       1,432,762  

Sims Ltd.

    231,826       2,476,135  

South32 Ltd.

    6,364,582       18,491,813  

Syrah Resources Ltd.(b)

    872,591       1,100,390  

Vulcan Energy Resources Ltd.(a)(b)

    129,653       555,338  

Vulcan Steel Ltd.

    75,466       424,227  
   

 

 

 
      399,586,830  
Austria — 0.4%  

voestalpine AG

    160,225       5,917,922  
   

 

 

 
Belgium — 0.1%  

Bekaert SA

    49,300       2,175,270  
   

 

 

 
Brazil — 5.8%  

Bradespar SA

    47,665       227,152  

Cia. Brasileira de Aluminio

    201,550       401,141  

Cia. Siderurgica Nacional SA

    912,050       2,904,024  

Vale SA

    5,254,996       85,638,533  
   

 

 

 
      89,170,850  
Canada — 4.9%  

Algoma Steel Group Inc.

    121,179       973,340  

Altius Minerals Corp.

    54,463       864,144  

Capstone Mining Corp.(b)

    474,150       2,109,264  

ERO Copper Corp.(a)(b)

    105,850       1,660,088  

Filo Mining Corp.(a)(b)

    117,450       1,850,623  
Security   Shares     Value  
Canada (continued)  

First Quantum Minerals Ltd.

    808,485     $ 17,662,835  

Global Atomic Corp.(a)(b)

    209,764       470,413  

Hudbay Minerals Inc.

    304,183       1,509,211  

Ivanhoe Mines Ltd., Class A(b)

    836,760       6,990,886  

Labrador Iron Ore Royalty Corp.

    79,772       2,123,940  

Largo Inc.(b)

    54,375       347,888  

Lithium Americas Corp.(a)(b)

    147,966       3,493,928  

Lundin Mining Corp.

    913,599       5,684,467  

Major Drilling Group International Inc.(b)

    102,950       805,794  

Solaris Resources Inc.(b)

    71,050       297,842  

Stelco Holdings Inc.

    48,866       1,998,331  

Taseko Mines Ltd.(b)

    406,777       694,606  

Teck Resources Ltd., Class B.

    627,768       25,060,112  
   

 

 

 
      74,597,712  
Chile — 0.0%  

CAP SA

    92,075       765,445  
   

 

 

 
China — 2.2%  

Aluminum Corp. of China Ltd., Class A

    1,160,065       923,038  

Aluminum Corp. of China Ltd., Class H.

    5,214,000       2,662,439  

Anhui Honglu Steel Construction Group Co. Ltd., Class A

    76,950       390,706  

Baoshan Iron & Steel Co. Ltd., Class A.

    1,812,593       1,715,902  

Chengtun Mining Group Co. Ltd., Class A

    290,000       260,400  

China Hongqiao Group Ltd.

    3,262,500       3,489,578  

China Metal Recycling Holdings Ltd.(c)

    132,000        

China Minmetals Rare Earth Co. Ltd., Class A(b)

    72,500       419,961  

China Nonferrous Mining Corp. Ltd.

    1,450,000       730,466  

China Northern Rare Earth Group High-Tech Co. Ltd., Class A

    290,070       1,212,454  

China Oriental Group Co. Ltd.

    2,630,000       533,573  

China Zhongwang Holdings Ltd.(b)(c)

    1,552,000       150,682  

CMOC Group Ltd., Class A

    1,595,000       1,356,196  

CMOC Group Ltd., Class H.

    4,680,000       2,635,297  

GEM Co. Ltd., Class A

    427,217       484,414  

Guangdong HEC Technology Holding Co. Ltd., Class A

    218,400       296,341  

Henan Shenhuo Coal & Power Co. Ltd.

    217,500       584,369  

Hesteel Co. Ltd., Class A

    860,000       311,769  

Huaibei Mining Holdings Co. Ltd.

    217,500       454,709  

Hunan Valin Steel Co. Ltd., Class A

    580,000       468,297  

Inner Mongolia BaoTou Steel Union Co. Ltd., Class A

    3,770,021       1,112,945  

Inner Mongolia ERDOS Resources Co. Ltd.

    101,060       243,432  

Jiangxi Copper Co. Ltd., Class A.

    147,125       415,517  

Jiangxi Copper Co. Ltd., Class H

    1,580,000       2,491,774  

Jinchuan Group International Resources Co. Ltd.

    4,350,000       338,350  

MMG Ltd.(a)(b)

    3,934,000       1,109,589  

Pangang Group Vanadium Titanium & Resources Co. Ltd., Class A(b)

    725,000       582,313  

Shandong Nanshan Aluminum Co. Ltd., Class A.

    1,003,430       521,222  

Shanxi Meijin Energy Co. Ltd., Class A.

    365,128       493,585  

Shanxi Taigang Stainless Steel Co. Ltd., Class A

    507,500       348,951  

Shenghe Resources Holding Co. Ltd., Class A

    145,000       334,234  

Shougang Fushan Resources Group Ltd.

    2,900,000       931,586  

Sinomine Resource Group Co. Ltd., Class A

    37,900       408,252  

Tiangong International Co. Ltd.

    1,450,000       534,404  

Tianshan Aluminum Group Co. Ltd., Class A

    349,000       416,030  

Tibet Summit Resources Co. Ltd., Class-A(b)

    72,500       272,810  

Tongling Nonferrous Metals Group Co. Ltd., Class A

    936,800       454,934  

Western Mining Co. Ltd., Class A

    217,500       359,455  

Western Superconducting Technologies Co. Ltd., Class A

    35,850       467,412  

 

 

22  

2 0 2 3  H A R E S   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)

February 28, 2023

  

iShares® MSCI Global Metals & Mining  Producers ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
China (continued)  

Xiamen Tungsten Co. Ltd., Class A

    145,099     $ 477,716  

Yintai Gold Co. Ltd., Class A.

    204,040       340,239  

YongXing Special Materials Technology Co. Ltd., Class A

    21,100       278,281  

Yunnan Aluminium Co. Ltd., Class A

    290,000       555,441  

Yunnan Tin Co. Ltd., Class A

    145,000       322,504  

Zhejiang Huayou Cobalt Co. Ltd., Class A

    118,750       1,010,488  
   

 

 

 
      33,902,055  
Egypt — 0.0%  

Ezz Steel Co. SAE

    261,720       246,663  
   

 

 

 
Finland — 0.2%  

Outokumpu OYJ

    516,288       3,091,013  
   

 

 

 
France — 1.7%  

APERAM SA

    66,700       2,593,838  

ArcelorMittal SA

    725,725       21,778,569  

Eramet SA

    13,797       1,480,571  
   

 

 

 
      25,852,978  
Germany — 0.7%  

Aurubis AG

    43,522       4,256,828  

Salzgitter AG(a)

    41,325       1,734,077  

thyssenkrupp AG

    642,350       4,811,624  
   

 

 

 
      10,802,529  
India — 3.0%  

APL Apollo Tubes Ltd.

    210,250       3,024,439  

Godawari Power and Ispat Ltd.

    57,275       236,658  

Hindalco Industries Ltd.

    1,857,899       8,962,460  

Hindustan Copper Ltd.

    266,800       313,558  

Jindal Saw Ltd.

    175,207       318,231  

Jindal Stainless Hisar Ltd.(b)

    129,775       768,523  

Jindal Stainless Ltd.(b)

    216,050       697,689  

Jindal Steel & Power Ltd.

    493,551       3,278,402  

JSW Steel Ltd.

    995,425       8,033,994  

Kirloskar Ferrous Industries Ltd.

    58,204       305,137  

National Aluminium Co. Ltd.

    1,206,400       1,140,832  

Rajratan Global Wire Ltd.

    18,200       158,870  

Ramkrishna Forgings Ltd.

    87,967       275,125  

Ratnamani Metals & Tubes Ltd.

    39,258       1,038,391  

Sarda Energy & Minerals Ltd.

    14,540       193,711  

Tata Steel Ltd.

    9,018,658       11,342,469  

Tata Steel Ltd., GDR(e)

    103,311       1,312,050  

Usha Martin Ltd.

    167,475       355,296  

Vedanta Ltd.

    1,015,779       3,297,014  

Welspun Corp. Ltd.

    162,400       361,501  
   

 

 

 
      45,414,350  
Indonesia — 0.5%  

Bumi Resources Minerals Tbk PT(b).

    58,435,000       624,330  

Merdeka Copper Gold Tbk PT(b)

    16,530,086       4,920,311  

Timah Tbk PT

    3,411,900       266,268  

Vale Indonesia Tbk PT(b)

    3,407,500       1,524,238  
   

 

 

 
      7,335,147  
Japan — 4.4%  

Daido Steel Co. Ltd.

    28,600       1,123,537  

Daiki Aluminium Industry Co. Ltd.

    59,000       626,794  

Dowa Holdings Co. Ltd.

    72,500       2,365,373  

JFE Holdings Inc.

    680,200       8,439,911  

Kobe Steel Ltd.

    507,500       3,441,707  

Kyoei Steel Ltd.

    18,400       220,099  

Maruichi Steel Tube Ltd.

    74,600       1,620,833  
Security   Shares     Value  
Japan (continued)  

Mitsubishi Materials Corp.

    152,400     $ 2,372,416  

Mitsui Mining & Smelting Co. Ltd.

    75,300       1,858,003  

Nippon Light Metal Holdings Co. Ltd.

    77,140       840,592  

Nippon Steel Corp.

    1,118,005       24,984,898  

OSAKA Titanium Technologies Co. Ltd.(a)

    47,300       949,116  

Pacific Metals Co. Ltd.

    22,600       322,442  

Sanyo Special Steel Co. Ltd.

    25,900       498,695  

Sumitomo Metal Mining Co. Ltd.

    343,000       12,768,263  

Toho Titanium Co. Ltd.

    40,100       582,302  

Tokyo Steel Manufacturing Co. Ltd.

    72,500       801,296  

UACJ Corp.

    33,638       659,420  

Yamato Kogyo Co. Ltd. .

    52,300       2,096,483  

Yodogawa Steel Works Ltd.

    19,600       389,584  
   

 

 

 
      66,961,764  
Malaysia — 0.4%  

PMB Technology Bhd(a)

    362,500       355,333  

Press Metal Aluminium Holdings Bhd

    5,075,000       5,833,612  
   

 

 

 
      6,188,945  
Mexico — 1.2%  

Grupo Mexico SAB de CV, Series B

    4,247,000       19,054,805  
   

 

 

 
Netherlands — 0.1%  

AMG Advanced Metallurgical Group NV

    37,700       1,484,430  
   

 

 

 
Norway — 0.9%  

Norsk Hydro ASA

    1,848,913       13,457,800  
   

 

 

 
Peru — 0.6%  

Southern Copper Corp.

    118,197       8,709,937  
   

 

 

 
Poland — 0.4%  

Jastrzebska Spolka Weglowa SA(b)

    71,775       881,882  

KGHM Polska Miedz SA

    192,125       5,479,203  
   

 

 

 
      6,361,085  
Qatar — 0.1%  

Qatar Aluminum Manufacturing Co.

    3,926,600       1,817,668  
   

 

 

 
Russia — 0.0%  

Alrosa PJSC(b)(c)

    2,886,002       385  

MMC Norilsk Nickel PJSC(b)(c)

    71,400       9  

Novolipetsk Steel PJSC(b)(c)

    1,668,000       222  

Severstal PAO(b)(c)

    233,400       31  

United Co. RUSAL International PJSC(b)(c)

    3,450,000       460  
   

 

 

 
      1,107  
Saudi Arabia — 1.4%  

Al Masane Al Kobra Mining Co.

    41,325       823,511  

Saudi Arabian Mining Co.(b)

    1,183,373       20,015,662  
   

 

 

 
      20,839,173  
Singapore — 0.0%  

Straits Trading Co. Ltd. .

    186,062       314,520  
   

 

 

 
South Africa — 2.1%  

African Rainbow Minerals Ltd.

    157,848       2,186,494  

Anglo American Platinum Ltd.

    72,500       4,008,992  

Impala Platinum Holdings Ltd.

    1,166,140       10,888,117  

Kumba Iron Ore Ltd.

    88,372       2,304,554  

Northam Platinum Holdings Ltd.(b)

    463,275       3,815,428  

Royal Bafokeng Platinum Ltd.

    118,900       1,006,555  

Sibanye Stillwater Ltd.

    3,877,047       7,828,017  
   

 

 

 
      32,038,157  

 

 

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

  23


Schedule of Investments  (unaudited) (continued)

February 28, 2023

  

iShares® MSCI Global Metals & Mining  Producers ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
South Korea — 2.3%  

Dongkuk Steel Mill Co. Ltd.

    84,100     $ 869,667  

Hyundai Steel Co.

    118,175       3,125,470  

KG Dongbu Steel Co. Ltd.(a)

    34,119       222,968  

Korea Zinc Co. Ltd.

    12,325       5,442,043  

Poongsan Corp.

    27,550       747,291  

POSCO Holdings Inc.

    99,301       23,933,846  

Seah Besteel Holdings Corp.

    18,850       320,039  

SeAH Steel Holdings Corp.

    2,182       257,869  

Young Poong Corp.(b)

    725       341,655  
   

 

 

 
      35,260,848  
Spain — 0.2%  

Acerinox SA

    270,425       2,969,478  
   

 

 

 
Sweden — 1.7%  

Alleima AB, NVS(b)

    296,112       1,600,934  

Boliden AB

    377,066       15,435,913  

Granges AB

    145,769       1,257,976  

SSAB AB, Class A

    309,575       2,250,575  

SSAB AB, Class B

    897,550       6,139,610  
   

 

 

 
      26,685,008  
Taiwan — 1.8%  

Century Iron & Steel Industrial Co. Ltd.

    194,000       659,594  

China Metal Products

    208,011       226,923  

China Steel Corp.

    16,394,612       16,865,631  

Chun Yuan Steel Industry Co. Ltd.

    475,000       262,674  

Chung Hung Steel Corp.

    1,204,000       1,134,692  

EVERGREEN Steel Corp.

    199,000       341,731  

Feng Hsin Steel Co. Ltd.

    727,000       1,702,355  

Gloria Material Technology Corp.

    727,000       1,069,931  

Hsin Kuang Steel Co. Ltd.

    200,000       293,047  

TA Chen Stainless Pipe

    2,063,365       2,931,170  

Tung Ho Steel Enterprise Corp.

    640,700       1,248,799  

YC INOX Co. Ltd.

    370,263       376,800  

Yieh Phui Enterprise Co. Ltd.

    1,523,776       862,086  
   

 

 

 
      27,975,433  
Turkey — 0.4%  

Eregli Demir ve Celik Fabrikalari TAS

    1,917,625       4,469,710  

Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS, Class D

    1,005,760       1,200,215  

Koza Anadolu Metal Madencilik Isletmeleri AS(b)

    264,296       637,491  
   

 

 

 
      6,307,416  
United Kingdom — 17.3%  

Anglo American PLC

    1,746,022       60,333,286  

Antofagasta PLC

    542,344       10,230,658  

Atalaya Mining PLC

    148,625       645,372  

Central Asia Metals PLC

    242,398       771,198  

Ferrexpo PLC

    408,175       723,203  

Glencore PLC

    14,156,910       84,401,533  

Hill & Smith PLC

    110,925       1,843,949  

Rio Tinto PLC

    1,545,506       106,059,635  

SolGold PLC(b)

    1,580,666       314,476  
   

 

 

 
      265,323,310  
United States — 18.1%  

Alcoa Corp.

    243,557       11,919,680  

Alpha Metallurgical Resources Inc.

    21,021       3,526,063  

Arconic Corp.(a)(b)

    136,527       3,609,774  

ATI Inc.(a)(b)

    178,162       7,242,285  

Carpenter Technology Corp.

    65,897       3,184,802  

Century Aluminum Co.(b)

    69,500       838,865  
Security   Shares     Value  
United States (continued)  

Cleveland-Cliffs Inc.(a)(b)

    712,741     $ 15,202,766  

Commercial Metals Co.

    162,386       8,403,475  

Compass Minerals International Inc.

    48,575       1,871,595  

Freeport-McMoRan Inc.

    1,966,068       80,549,806  

Haynes International Inc.

    16,696       913,438  

Ivanhoe Electric Inc. / U.S.(b)

    63,976       961,559  

Kaiser Aluminum Corp.

    21,750       1,725,210  

Materion Corp.

    28,275       3,157,752  

MP Materials Corp.(b)

    110,200       3,857,000  

Nucor Corp.

    354,511       59,359,322  

Piedmont Lithium Inc.(b)

    24,716       1,604,068  

Ramaco Resources Inc.

    30,450       302,977  

Reliance Steel & Aluminum Co.

    81,196       20,123,617  

Ryerson Holding Corp.

    22,397       804,724  

Schnitzer Steel Industries Inc., Class A

    35,525       1,161,312  

Steel Dynamics Inc.

    242,853       30,626,192  

SunCoke Energy Inc.

    109,475       1,041,107  

TimkenSteel Corp.(a)(b)

    54,375       994,519  

Tredegar Corp.

    37,804       439,282  

U.S. Steel Corp.

    325,525       9,970,831  

Warrior Met Coal Inc.

    70,369       2,693,022  

Worthington Industries Inc.

    45,675       2,760,597  
   

 

 

 
      278,845,640  
   

 

 

 

Total Common Stocks — 98.9%
(Cost: $1,506,722,625)

      1,519,455,288  
   

 

 

 

Preferred Stocks

   
Brazil — 0.9%  

Bradespar SA, Preference Shares, NVS

    360,479       1,904,488  

Cia Ferro Ligas da Bahia - FERBASA, Preference Shares, NVS

    49,300       540,982  

Gerdau SA, Preference Shares, NVS

    1,516,137       8,290,978  

Metalurgica Gerdau SA, Preference Shares, NVS

    920,092       2,210,843  

Usinas Siderurgicas de Minas Gerais SA Usiminas, Class A, Preference Shares, NVS

    631,934       824,401  
   

 

 

 
      13,771,692  
Russia — 0.0%  

Mechel PJSC, Preference Shares, NVS(c)

    96,000       13  
   

 

 

 

Total Preferred Stocks — 0.9%
(Cost: $11,296,259)

      13,771,705  
   

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $1,518,018,884)

      1,533,226,993  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 1.6%  

BlackRock Cash Funds: Institutional, SL Agency Shares, 4.81%(f)(g)(h)

    23,681,153       23,695,361  

BlackRock Cash Funds: Treasury, SL Agency Shares, 4.41%(f)(g)

    1,200,000       1,200,000  
   

 

 

 

Total Short-Term Securities — 1.6%
(Cost: $24,881,867)

      24,895,361  
   

 

 

 

Total Investments — 101.4%
(Cost: $1,542,900,751)

      1,558,122,354  

Liabilities in Excess of Other Assets — (1.4)%

 

    (21,171,583
   

 

 

 

NetAssets — 100.0%

    $ 1,536,950,771  
   

 

 

 

 

 

24  

2 0 2 3  H A R E S   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)

February 28, 2023

  

iShares® MSCI Global Metals & Mining  Producers ETF

 

(a)

All or a portion of this security is on loan.

(b)

Non-income producing security.

(c)

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

(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)

This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

(f)

Affiliate of the Fund.

(g)

Annualized 7-day yield as of period end.

(h)

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 February 28, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
08/31/22
    Purchases
at Cost
   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

02/28/23

   

Shares

Held at

02/28/23

    Income    

Capital Gain

Distributions

from

Underlying

Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 20,087,722     $ 3,598,418 (a)    $     $ 3,514     $ 5,707     $ 23,695,361       23,681,153     $ 235,358 (b)   

$

 

BlackRock Cash Funds: Treasury, SL Agency Shares

    1,990,000             (790,000 )(a)                  1,200,000       1,200,000       50,308       2  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 3,514     $ 5,707     $ 24,895,361       $ 285,666     $ 2  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description   

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

Long Contracts

           

E-Mini Energy Select Sector Index

     3        03/17/23      $ 262      $ (3,967

MSCI Emerging Markets Index

     48        03/17/23        2,311        (86,406
           

 

 

 
            $ (90,373
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $ 90,373      $      $      $      $ 90,373  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

 

 

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

  25


Schedule of Investments  (unaudited) (continued)

February 28, 2023

  

iShares® MSCI Global Metals & Mining  Producers ETF

 

For the period ended February 28, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

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

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ (2,204,116    $      $      $      $ (2,204,116
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 252,195      $      $      $      $ 252,195  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — long

   $ 4,049,783  

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

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 484,258,273        $ 1,033,660,423        $ 1,536,592        $ 1,519,455,288  

Preferred Stocks

     13,771,692                   13          13,771,705  

Short-Term Securities

                 

Money Market Funds

     24,895,361                            24,895,361  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 522,925,326        $ 1,033,660,423        $ 1,536,605        $ 1,558,122,354  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Liabilities

                 

Equity Contracts

   $ (90,373      $        $        $ (90,373
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

 

 

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Schedule of Investments  (unaudited)

February 28, 2023

  

iShares® MSCI Global Silver and Metals Miners ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Canada — 65.8%  

Agnico Eagle Mines Ltd.

    165,391     $ 7,614,410  

Aya Gold & Silver Inc.(a)

    855,548       5,016,038  

Dundee Precious Metals Inc.

    231,512       1,486,292  

Eldorado Gold Corp.(a)

    178,903       1,671,684  

Endeavour Silver Corp.(a)(b)

    1,776,388       5,207,440  

First Majestic Silver Corp.

    1,905,204       11,630,890  

Fortuna Silver Mines Inc.(a)

    2,386,508       7,748,062  

GoGold Resources Inc.(a)

    2,812,001       4,327,741  

i-80 Gold Corp.(a)

    263,948       601,596  

Kinross Gold Corp.

    692,277       2,557,036  

Lundin Gold Inc.

    122,965       1,270,653  

MAG Silver Corp.(a)(b)

    640,612       7,647,907  

New Gold Inc.(a)

    1,095,783       1,003,832  

New Pacific Metals Corp.(a)(b)

    1,013,308       2,517,489  

Orla Mining Ltd.(a)

    298,903       1,303,388  

Pan American Silver Corp.

    1,745,982       26,026,584  

Seabridge Gold Inc.(a)

    105,578       1,159,075  

Silvercorp Metals Inc.

    1,710,452       5,264,858  

SilverCrest Metals Inc.(a)

    1,302,601       7,121,586  

SSR Mining Inc.

    151,462       2,072,404  

Victoria Gold Corp.(a)

    76,129       472,563  

Wheaton Precious Metals Corp.

    192,521       8,021,121  

Yamana Gold Inc.

    520,134       2,660,708  
   

 

 

 
      114,403,357  
Japan — 4.7%  

Asahi Holdings Inc.

    555,200       8,122,830  
   

 

 

 
Mexico — 7.7%  

Industrias Penoles SAB de CV(a)

    1,121,263       13,415,445  
   

 

 

 
Peru — 0.7%  

Cia. de Minas Buenaventura SAA, ADR

    164,796       1,249,154  
   

 

 

 
Russia — 0.0%  

Polymetal International PLC(a)(c)

    183,040       24  
   

 

 

 
Security   Shares     Value  
South Africa — 0.7%  

Harmony Gold Mining Co. Ltd.

    408,220     $ 1,253,908  
   

 

 

 
United Kingdom — 0.2%  

Hochschild Mining PLC

    520,807       400,093  
   

 

 

 
United States — 20.0%  

Coeur Mining Inc.(a)(b)

    391,084       1,220,182  

Hecla Mining Co.(b)

    4,989,952       25,698,253  

Newmont Corp.

    177,921       7,759,135  
   

 

 

 
      34,677,570  
   

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $239,380,160)

 

    173,522,381  
   

 

 

 
Short-Term Securities  
Money Market Funds — 4.8%  

BlackRock Cash Funds: Institutional,
SL Agency Shares, 4.81%(d)(e)(f)

    8,369,559       8,374,581  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 4.41%(d)(e)

    60,000       60,000  
   

 

 

 

Total Short-Term Securities — 4.8%
(Cost: $8,432,720)

      8,434,581  
   

 

 

 

Total Investments — 104.6%
(Cost: $247,812,880)

      181,956,962  

Liabilities in Excess of Other Assets — (4.6)%

      (8,017,541
   

 

 

 

Net Assets — 100.0%

    $ 173,939,421  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended February 28, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer  

Value at

08/31/22

    

Purchases

at Cost

   

Proceeds

from Sale

   

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

02/28/23

    

Shares

Held at

02/28/23

     Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 6,273,237      $ 2,099,349 (a)    $     $ 5,606      $ (3,611   $ 8,374,581        8,369,559      $ 65,099 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    60,000              0 (a)                   60,000        60,000        1,915        
        

 

 

    

 

 

   

 

 

       

 

 

   

 

 

 
         $ 5,606      $ (3,611   $ 8,434,581         $ 67,014     $  
        

 

 

    

 

 

   

 

 

       

 

 

   

 

 

 

 

  (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  N V E S T M E N  T S

  27


Schedule of Investments  (unaudited) (continued)

February 28, 2023

  

iShares® MSCI Global Silver and Metals Miners ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
      

Notional

Amount

(000)

      

Value/

Unrealized

Appreciation

(Depreciation)

 

Long Contracts

                 

S&P/TSX 60 Index

     2          03/16/23        $ 357        $ 494  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 494      $      $      $      $ 494  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended February 28, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $ (12,726    $      $      $      $ (12,726
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on                                                 

Futures contracts

   $      $      $ 16,130      $      $      $      $ 16,130  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — long

   $ 454,938  

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

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 163,745,526        $ 9,776,831        $ 24        $ 173,522,381  

Short-Term Securities

                 

Money Market Funds

     8,434,581                            8,434,581  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 172,180,107        $ 9,776,831        $ 24        $ 181,956,962  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $ 494        $        $        $ 494  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

 

 

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Statements of Assets and Liabilities (unaudited)

February 28, 2023

 

      iShares
MSCI
Agriculture
Producers
ETF
    iShares
MSCI Global
Energy
Producers
ETF
     iShares
MSCI Global
Gold Miners
ETF
    iShares
MSCI Global
Metals & Mining
Producers ETF
 

ASSETS

         

Investments, at value — unaffiliated(a)(b)

   $ 283,944,553     $ 114,794,528      $ 424,989,338     $ 1,533,226,993  

Investments, at value — affiliated(c)

     4,626,826       289,433        1,286,460       24,895,361  

Cash

     68,468       152,243        3,989       1,722,511  

Cash pledged for futures contracts

     22,000       54,000        73,000       199,000  

Foreign currency collateral pledged for futures contracts(d)

     15,848       6,014               

Foreign currency, at value(e)

     934,130       201,542        2,439,738       1,655,809  

Receivables:

         

Investments sold

     1,342,509       1,077,931        8,071,076       8,023,700  

Securities lending income — affiliated

     603       355        399       44,373  

Dividends — unaffiliated

     595,560       578,206        1,186,503       2,528,821  

Dividends — affiliated

     1,041       320        988       6,703  

Tax reclaims

     4,615       30,587              61,729  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total assets

     291,556,153       117,185,159        438,051,491       1,572,365,000  
  

 

 

   

 

 

    

 

 

   

 

 

 

LIABILITIES

         

Collateral on securities loaned, at value

     4,625,870       267,971        1,168,968       23,689,812  

Payables:

         

Investments purchased

     1,731,765       990,947        10,067,051       9,586,086  

Bank borrowings

           77,012              890,140  

Capital shares redeemed

           141,199              735,983  

Deferred foreign capital gain tax

     1,380       29,982               

Foreign taxes

     5,070       5,928               

Investment advisory fees

     86,976       36,826        135,876       480,844  

Variation margin on futures contracts

     2,017       10,140        3,839       31,364  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total liabilities

     6,453,078       1,560,005        11,375,734       35,414,229  
  

 

 

   

 

 

    

 

 

   

 

 

 

NET ASSETS

   $ 285,103,075     $ 115,625,154      $ 426,675,757     $ 1,536,950,771  
  

 

 

   

 

 

    

 

 

   

 

 

 

NET ASSETS CONSIST OF

         

Paid-in capital

   $ 304,155,359     $ 96,252,112      $ 622,320,934     $ 1,665,982,607  

Accumulated earnings (loss)

     (19,052,284     19,373,042        (195,645,177     (129,031,836
  

 

 

   

 

 

    

 

 

   

 

 

 

NET ASSETS

   $ 285,103,075     $ 115,625,154      $ 426,675,757     $ 1,536,950,771  
  

 

 

   

 

 

    

 

 

   

 

 

 

NET ASSETVALUE

         

Shares outstanding

     6,600,000       4,900,000        19,900,000       36,250,000  
  

 

 

   

 

 

    

 

 

   

 

 

 

Net asset value

   $ 43.20     $ 23.60      $ 21.44     $ 42.40  
  

 

 

   

 

 

    

 

 

   

 

 

 

Shares authorized

     500 million       500 million        500 million       500 million  
  

 

 

   

 

 

    

 

 

   

 

 

 

Par value

   $ 0.001     $ 0.001      $ 0.001     $ 0.001  
  

 

 

   

 

 

    

 

 

   

 

 

 

(a) Investments, at cost — unaffiliated

   $ 299,394,598     $ 88,620,161      $ 520,666,835     $ 1,518,018,884  

(b) Securities loaned, at value

   $ 4,483,343     $ 256,270      $ 1,103,883     $ 22,203,551  

(c)  Investments, at cost — affiliated

   $ 4,626,344     $ 289,197      $ 1,285,324     $ 24,881,867  

(d) Foreign currency collateral pledged, at cost

   $ 16,048     $ 6,069      $     $  

(e) Foreign currency, at cost

   $ 933,964     $ 202,179      $ 2,446,573     $ 1,683,197  

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T  S

  29


 

Statements of Assets and Liabilities (unaudited) (continued)

February 28, 2023

 

      iShares
MSCI Global
Silver and
Metals
Miners ETF
 

ASSETS

  

Investments, at value — unaffiliated(a)(b)

   $ 173,522,381  

Investments, at value — affiliated(c)

     8,434,581  

Cash

     362  

Foreign currency collateral pledged for futures contracts(d)

     10,260  

Foreign currency, at value(e)

     228,608  

Receivables:

  

Investments sold

     3,422,622  

Securities lending income — affiliated

     5,526  

Dividends — unaffiliated

     59,135  

Dividends — affiliated

     356  

Tax reclaims

     10,438  
  

 

 

 

Total assets

     185,694,269  
  

 

 

 

LIABILITIES

  

Collateral on securities loaned, at value

     8,375,492  

Payables:

  

Investments purchased

     3,319,181  

Capital shares redeemed

     3,194  

Investment advisory fees

     56,288  

Variation margin on futures contracts

     693  
  

 

 

 

Total liabilities

     11,754,848  
  

 

 

 

NET ASSETS

   $ 173,939,421  
  

 

 

 

NET ASSETS CONSIST OF

  

Paid-in capital

   $ 285,402,867  

Accumulated loss

     (111,463,446
  

 

 

 

NET ASSETS

   $ 173,939,421  
  

 

 

 

NET ASSETVALUE

  

Shares outstanding

     18,000,000  
  

 

 

 

Net asset value

   $ 9.66  
  

 

 

 

Shares authorized

     500 million  
  

 

 

 

Par value

   $ 0.001  
  

 

 

 

(a) Investments, at cost — unaffiliated

   $ 239,380,160  

(b) Securities loaned, at value

   $ 8,153,113  

(c)  Investments, at cost — affiliated

   $ 8,432,720  

(d) Foreign currency collateral pledged, at cost

   $ 10,456  

(e) Foreign currency, at cost

   $ 230,842  

See notes to financial statements.

 

 

30  

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Statements of Operations (unaudited)

Six Months Ended February 28, 2023

 

     iShares
MSCI
Agriculture
Producers
ETF
     iShares
MSCI Global
Energy
Producers
ETF
     iShares
MSCI Global
Gold Miners
ETF
     iShares
MSCI Global
Metals &
Mining
Producers
ETF
 

 

 

INVESTMENT INCOME

 

        

Dividends — unaffiliated

   $ 2,905,819      $ 2,910,530      $ 5,236,384      $ 27,156,133  

Dividends — affiliated

     6,439        4,093        6,538        50,308  

Securities lending income — affiliated — net

     14,416        2,676        22,527        235,358  

Foreign taxes withheld

     (244,377      (144,445      (411,857      (855,042

Other foreign taxes

     (507                    (4,491
  

 

 

    

 

 

    

 

 

    

 

 

 

Total investment income

     2,681,790        2,772,854        4,853,592        26,582,266  
  

 

 

    

 

 

    

 

 

    

 

 

 

EXPENSES

           

Investment advisory

     578,691        242,464        781,875        2,668,138  

Commitment costs

     1,261        374               8,681  

Interest expense

     807        77               140  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses

     580,759        242,915        781,875        2,676,959  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

     2,101,031        2,529,939        4,071,717        23,905,307  
  

 

 

    

 

 

    

 

 

    

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

           

Net realized gain (loss) from:

           

Investments — unaffiliated(a)

     (5,515,877      (474,432      (17,629,947      (11,714,919

Investments — affiliated

     (136      684        2,679        3,514  

Capital gain distributions from underlying funds — affiliated

                          2  

Foreign currency transactions

     (13,855      (4,852      (48,917      (1,399,981

Futures contracts

     115,947        (20,611      (175,999      (2,204,116

In-kind redemptions — unaffiliated(b)

     8,924,542        3,430,273        (628,091      3,128,835  
  

 

 

    

 

 

    

 

 

    

 

 

 
     3,510,621        2,931,062        (18,480,275      (12,186,665
  

 

 

    

 

 

    

 

 

    

 

 

 

Net change in unrealized appreciation (depreciation) on:

           

Investments — unaffiliated(c)

     (2,799,814      (895,069      68,411,830        207,585,659  

Investments — affiliated

     157        (24      (92      5,707  

Foreign currency translations

     6,400        8,173        10,292        283,901  

Futures contracts

     8,938        (20,807      35,182        252,195  
  

 

 

    

 

 

    

 

 

    

 

 

 
     (2,784,319      (907,727      68,457,212        208,127,462  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net realized and unrealized gain

     726,302        2,023,335        49,976,937        195,940,797  
  

 

 

    

 

 

    

 

 

    

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

   $ 2,827,333      $ 4,553,274      $ 54,048,654      $ 219,846,104  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

   $ (39,032    $ (12,137    $      $ (88,614

(b) See Note 2 of the Notes to Financial Statements.

           

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

   $ 124,876      $ 55,019      $      $  

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T  S

  31


 

Statements of Operations (unaudited) (continued)

Six Months Ended February 28, 2023

 

    iShares
MSCI Global
Silver and
Metals
Miners ETF
 

 

 

INVESTMENT INCOME

 

Dividends — unaffiliated

  $ 919,851  

Dividends — affiliated

    1,915  

Securities lending income — affiliated — net

    65,099  

Foreign taxes withheld

    (84,031
 

 

 

 

Total investment income

    902,834  
 

 

 

 

EXPENSES

 

Investment advisory

    354,023  
 

 

 

 

Total expenses

    354,023  
 

 

 

 

Net investment income

    548,811  
 

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

 

Net realized gain (loss) from:

 

Investments — unaffiliated

    (3,423,829

Investments — affiliated

    5,606  

Foreign currency transactions

    31,425  

Futures contracts

    (12,726

In-kind redemptions — unaffiliated(a)

    523,750  
 

 

 

 
    (2,875,774
 

 

 

 

Net change in unrealized appreciation (depreciation) on:

 

Investments — unaffiliated

    21,520,583  

Investments — affiliated

    (3,611

Foreign currency translations

    761  

Futures contracts

    16,130  
 

 

 

 
    21,533,863  
 

 

 

 

Net realized and unrealized gain

    18,658,089  
 

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 19,206,900  
 

 

 

 

(a) See Note 2 of the Notes to Financial Statements.

 

See notes to financial statements.

 

 

32  

2 0 2 3  H A R E S   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


 

Statements of Changes in Net Assets

 

    iShares
MSCI Agriculture Producers ETF
           iShares
MSCI Global Energy Producers ETF
 
     Six Months Ended
02/28/23
(unaudited)
    Year Ended
08/31/22
            Six Months Ended
02/28/23
(unaudited)
    Year Ended
08/31/22
 

INCREASE (DECREASE) IN NET ASSETS

          

OPERATIONS

          

Net investment income

  $ 2,101,031     $ 3,375,322        $ 2,529,939     $ 5,174,837  

Net realized gain

    3,510,621       8,876,407          2,931,062       7,971,952  

Net change in unrealized appreciation (depreciation)

    (2,784,319     (23,930,348        (907,727     28,176,053  
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    2,827,333       (11,678,619        4,553,274       41,322,842  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Decrease in net assets resulting from distributions to shareholders

    (2,766,750     (2,600,095        (4,057,950     (4,516,824
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

          

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

    (7,129,917     220,839,002          (7,229,766     5,467,754  
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

          

Total increase (decrease) in net assets

    (7,069,334     206,560,288          (6,734,442     42,273,772  

Beginning of period

    292,172,409       85,612,121          122,359,596       80,085,824  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

  $ 285,103,075     $ 292,172,409        $ 115,625,154     $ 122,359,596  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a)

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

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T  S

  33


 

Statements of Changes in Net Assets (continued)

 

    iShares
MSCI Global Gold Miners ETF
           iShares
MSCI Global Metals & Mining
Producers ETF
 
     Six Months Ended
02/28/23
(unaudited)
    Year Ended
08/31/22
            Six Months Ended
02/28/23
(unaudited)
    Year Ended
08/31/22
 

INCREASE (DECREASE) IN NET ASSETS

          

OPERATIONS

          

Net investment income

  $ 4,071,717     $ 10,684,333        $ 23,905,307     $ 79,802,759  

Net realized loss

    (18,480,275     (4,070,305        (12,186,665     (8,861,218

Net change in unrealized appreciation (depreciation)

    68,457,212       (169,449,633        208,127,462       (306,487,075
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    54,048,654       (162,835,605        219,846,104       (235,545,534
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Decrease in net assets resulting from distributions to shareholders

    (5,152,158     (10,485,280        (35,689,460     (107,607,704
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

          

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

    15,414,492       (22,456,828        129,802,835       460,084,733  
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

          

Total increase (decrease) in net assets

    64,310,988       (195,777,713        313,959,479       116,931,495  

Beginning of period

    362,364,769       558,142,482          1,222,991,292       1,106,059,797  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

  $ 426,675,757     $ 362,364,769        $ 1,536,950,771     $ 1,222,991,292  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a) 

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

See notes to financial statements.

 

 

34  

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Statements of Changes in Net Assets (continued)

 

    iShares
MSCI Global Silver and Metals Miners
ETF
 
     Six Months Ended
02/28/23
(unaudited)
    Year Ended
08/31/22
 

INCREASE (DECREASE) IN NET ASSETS

   

OPERATIONS

   

Net investment income

  $ 548,811     $ 2,187,893  

Net realized loss

    (2,875,774     (13,005,365

Net change in unrealized appreciation (depreciation)

    21,533,863       (84,534,229
 

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    19,206,900       (95,351,701
 

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

   

Decrease in net assets resulting from distributions to shareholders

    (175,102     (2,201,237
 

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

   

Net decrease in net assets derived from capital share transactions

    (887,521     (13,980,090
 

 

 

   

 

 

 

NET ASSETS

   

Total increase (decrease) in net assets

    18,144,277       (111,533,028

Beginning of period

    155,795,144       267,328,172  
 

 

 

   

 

 

 

End of period

  $ 173,939,421     $ 155,795,144  
 

 

 

   

 

 

 

 

(a) 

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

See notes to financial statements.

 

 

I N A N C I A L  I G H L I G H T  S

  35


Financial Highlights

(For a share outstanding throughout each period)

 

    iShares MSCI Agriculture Producers ETF
 

 

 

   

Six Months Ended

02/28/23
(unaudited)

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

 

Net asset value, beginning of period

  $ 43.28     $ 39.82     $ 28.60     $ 26.88     $ 29.15     $27.08
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

Net investment income(a)

    0.30       0.86       0.60       0.49       0.53     0.53

Net realized and unrealized gain (loss)(b)

    0.01       3.25       11.11       1.73       (2.25   2.03
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

Net increase (decrease) from investment operations

    0.31       4.11       11.71       2.22       (1.72   2.56
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

Distributions from net investment income(c)

    (0.39     (0.65     (0.49     (0.50     (0.55   (0.49)
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

Net asset value, end of period

  $ 43.20     $ 43.28     $ 39.82     $ 28.60     $ 26.88     $29.15
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

Total Return(d)

           

Based on net asset value

    0.68 %(e)      10.43     41.16     8.41     (5.88 )%    9.49%
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

Ratios to Average Net Assets(f)

           

Total expenses

    0.39 %(g)      0.39     0.39     0.39     0.39   0.39%
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

Total expenses after fees waived

    0.39 %(g)      0.39     0.39     0.39     0.39   0.37%
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

Net investment income

    1.42 %(g)      2.00     1.60     1.84     1.88   1.84%
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

Supplemental Data

           

Net assets, end of period (000)

  $ 285,103     $ 292,172     $ 85,612     $ 27,175     $ 25,535     $33,521
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

Portfolio turnover rate(h)

    7     10     6     9     13   25%
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

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

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

36  

2 0 2 3  H A R E S   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


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Global Energy Producers ETF  
 

 

 

 
   

Six Months Ended

02/28/23
(unaudited)

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

 

 

Net asset value, beginning of period

  $ 23.53     $ 15.86     $ 12.04     $ 17.97     $ 22.80     $ 18.57  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    0.49       1.01       0.58       0.68       0.70       0.64  

Net realized and unrealized gain (loss)(b)

    0.36       7.51       3.76       (5.61     (4.90     4.23  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    0.85       8.52       4.34       (4.93     (4.20     4.87  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions from net investment income(c)

    (0.78     (0.85     (0.52     (1.00     (0.63     (0.64
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 23.60     $ 23.53     $ 15.86     $ 12.04     $ 17.97     $ 22.80  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

           

Based on net asset value

    3.55 %(e)      54.58     36.41     (28.92 )%      (18.56 )%      26.48
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(f)

           

Total expenses

    0.39 %(g)      0.39     0.39     0.39     0.39     0.39
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    4.07 %(g)      4.85     4.01     4.62     3.41     2.93
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 115,625     $ 122,360     $ 80,086     $ 49,985     $ 46,733     $ 47,889  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

    4     12     8     12     6     5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

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

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L  I G H L I G H T  S

  37


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Global Gold Miners ETF  
 

 

 

 
   

Six Months Ended

02/28/23
(unaudited)

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

 

 

Net asset value, beginning of period

  $ 18.35     $ 26.96     $ 35.13     $ 24.01     $ 14.43     $ 19.96  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    0.21       0.56       0.49       0.17       0.18       0.10  

Net realized and unrealized gain (loss)(b)

    3.16       (8.61     (8.20     11.11       9.59       (5.51
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    3.37       (8.05     (7.71     11.28       9.77       (5.41
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions from net investment income(c)

    (0.28     (0.56     (0.46     (0.16     (0.19     (0.12
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 21.44     $ 18.35     $ 26.96     $ 35.13     $ 24.01     $ 14.43  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

           

Based on net asset value

    18.35 %(e)      (30.42 )%      (22.12 )%      47.22     68.13     (27.22 )% 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(f)

           

Total expenses

    0.39 %(g)      0.39     0.39     0.39     0.39     0.39
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    2.03 %(g)      2.16     1.63     0.66     1.04     0.56
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 426,676     $ 362,365     $ 558,142     $ 572,625     $ 325,284     $ 232,989  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

    7     25     12     21     15     4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

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

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

38  

2 0 2 3  H A R E S   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


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Global Metals & Mining Producers ETF  
 

 

 

 
   

Six Months Ended

02/28/23
(unaudited)

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

 

 

Net asset value, beginning of period

  $ 36.62     $ 45.61     $ 27.79     $ 25.60     $ 30.93     $ 31.86  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    0.70       2.67       2.13       1.04       1.49       1.06  

Net realized and unrealized gain (loss)(b)

    6.15       (8.08     16.86       2.26       (5.13     (1.05
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    6.85       (5.41     18.99       3.30       (3.64     0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions from net investment income(c)

    (1.07     (3.58     (1.17     (1.11     (1.69     (0.94
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 42.40     $ 36.62     $ 45.61     $ 27.79     $ 25.60     $ 30.93  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

           

Based on net asset value

    18.72 %(e)      (12.69 )%      68.77     13.00     (12.16 )%      (0.10 )% 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(f)

           

Total expenses

    0.39 %(g)      0.39     0.39     0.39     0.39     0.39
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

    N/A       0.39     N/A       N/A       N/A       N/A  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    3.49 %(g)      6.23     5.11     4.03     5.05     3.15
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 1,536,951     $ 1,222,991     $ 1,106,060     $ 297,394     $ 221,470     $ 403,636  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

    5     19     17     11     14     14
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

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

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T  S

  39


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI Global Silver and Metals Miners ETF  
 

 

 

 
   

Six Months Ended

02/28/23
(unaudited)

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

 

 

Net asset value, beginning of period

  $ 8.61     $ 13.92     $ 17.29     $ 10.84     $ 8.43     $ 11.47  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    0.03       0.12       0.10       0.04       0.09       0.10  

Net realized and unrealized gain (loss)(b)

    1.03       (5.31     (2.93     6.62       2.40       (3.05
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    1.06       (5.19     (2.83     6.66       2.49       (2.95
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions from net investment income(c)

    (0.01     (0.12     (0.54     (0.21     (0.08     (0.09
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 9.66     $ 8.61     $ 13.92     $ 17.29     $ 10.84     $ 8.43  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

           

Based on net asset value

    12.37 %(e)      (37.54 )%      (16.69 )%      62.71     29.89     (25.87 )% 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets(f)

           

Total expenses

    0.39 %(g)      0.39     0.39     0.39     0.39     0.39
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    0.60 %(g)      0.94     0.63     0.35     0.98     0.94
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 173,939     $ 155,795     $ 267,328     $ 250,656     $ 99,757     $ 50,577  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

    7     38     31     66     27     19
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

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

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

40  

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Notes to Financial Statements  (unaudited)

 

1.

ORGANIZATION

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

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

 

iShares ETF   Diversification
Classification

MSCI Agriculture Producers(a)

  Non-diversified

MSCI Global Energy Producers

  Non-diversified

MSCI Global Gold Miners

  Non-diversified

MSCI Global Metals & Mining Producers

  Non-diversified

MSCI Global Silver and Metals Miners

  Non-diversified

 

  (a) 

Formerly the iShares MSCI Global Agriculture Producers ETF

 

 

2.

SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest.

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

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

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of February 28, 2023, if any, are disclosed in the Statements of Assets and Liabilities.

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

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

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

 

 

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  41


Notes to Financial Statements  (unaudited) (continued)

 

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

The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

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

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Directors of the Company (the “Board”) of each Fund has approved the designation of BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under BFA’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with BFA’s policies and procedures as reflecting fair value. BFA has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

   

Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

 

   

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

 

   

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee, in accordance with BFA’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.

Fair value pricing could result in a difference between the prices used to calculate a fund’s NAV and the prices used by the fund’s underlying index, which in turn could result in a difference between the fund’s performance and the performance of the fund’s underlying index.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

   

Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

 

   

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and

 

   

Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately

 

 

42  

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Notes to Financial Statements  (unaudited) (continued)

 

held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BFA, or its affiliates is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:

 

iShares ETF and Counterparty    
Securities Loaned
at Value
 
 
    
Cash Collateral
Received
 
(a) 
    
Non-Cash Collateral
Received, at Fair Value
 
(a) 
     Net Amount  

MSCI Agriculture Producers

          

Barclays Capital, Inc.

  $ 38,356      $ (38,356    $      $  

BNP Paribas SA

    31,512        (31,512              

Citadel Clearing LLC

    3,548,412        (3,548,412              

Citigroup Global Markets, Inc.

    21,185        (21,185              

J.P. Morgan Securities LLC

    735        (735              

Morgan Stanley

    753,942        (753,942              

SG Americas Securities LLC

    89,201        (89,201              
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 4,483,343      $ (4,483,343    $      $  
 

 

 

    

 

 

    

 

 

    

 

 

 

MSCI Global Energy Producers

          

Barclays Bank PLC

  $ 50,816      $ (50,816    $      $  

Barclays Capital, Inc.

    28,416        (28,416              

BNP Paribas SA

    19,403        (19,403              

Goldman Sachs & Co. LLC

    110,841        (110,841              

Jefferies LLC

    5,957        (5,957              

Morgan Stanley

    40,800        (40,800              

Natixis SA

    37        (37              
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 256,270      $ (256,270    $      $  
 

 

 

    

 

 

    

 

 

    

 

 

 

MSCI Global Gold Miners

          

BofA Securities, Inc.

  $ 949,698      $ (949,698    $      $  

HSBC Bank PLC

    154,185        (154,185              
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 1,103,883      $ (1,103,883    $      $  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

 

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

  43


Notes to Financial Statements  (unaudited) (continued)

 

iShares ETF and Counterparty    

Securities
Loaned at
Value
 
 
 
    

Cash
Collateral
Received
 
 
(a) 
    
Non-Cash Collateral
Received, at Fair Value
 
(a) 
     Net Amount  

MSCI Global Metals & Mining Producers

          

Barclays Bank PLC

  $ 759,348      $ (756,677    $      $ 2,671 (b) 

Barclays Capital, Inc.

    2,146,013        (2,146,013              

BNP Paribas SA

    2,419,990        (2,419,990              

BofA Securities, Inc.

    5,899,757        (5,899,757              

J.P. Morgan Securities LLC

    2,057,913        (2,057,913              

Jefferies LLC

    522,370        (522,370              

Macquarie Bank Ltd.

    99,177        (99,177              

Morgan Stanley

    5,545,360        (5,545,360              

National Financial Services LLC

    76,818        (76,818              

Scotia Capital (USA), Inc.

    2,267,632        (2,267,632              

UBS AG

    247,889        (247,889              

Wells Fargo Bank N.A.

    161,284        (138,808             22,476  
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 22,203,551      $ (22,178,404    $      $ 25,147  
 

 

 

    

 

 

    

 

 

    

 

 

 

MSCI Global Silver and Metals Miners

          

BofA Securities, Inc.

  $ 2,317,934      $ (2,317,934    $      $  

Goldman Sachs & Co. LLC

    46,488        (46,185             303  

J.P. Morgan Securities LLC

    148,037        (148,037              

State Street Bank & Trust Co.

    532,884        (532,884              

Toronto-Dominion Bank

    5,107,770        (5,107,770              
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 8,153,113      $ (8,152,810    $      $ 303  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s Statements of Assets and Liabilities.

 
  (b) 

The market value of the loaned securities is determined as of February 28, 2023. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty.

 

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee of 0.39%, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund.

Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses, if any, is a fund’s total annual operating expenses. Total expenses as shown in the Statements of Operations does not include acquired fund fees and expenses.

For each of the iShares MSCI Agriculture Producers and iShares MSCI Global Metals & Mining Producers ETFs, BFA has contractually agreed to waive a portion of its investment advisory fee for each Fund through December 31, 2023 in an amount equal to the acquired fund fees and expenses, if any, attributable to each Fund’s investments in other iShares funds.

For six months ended February 28, 2023, there were no fees waived by BFA pursuant to these arrangements.

Distributor: BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the six months ended February 28, 2023, the Funds paid BTC the following amounts for securities lending agent services:

 

iShares ETF   Amounts  

MSCI Agriculture Producers

  $ 3,532  

MSCI Global Energy Producers

    712  

MSCI Global Gold Miners

    5,506  

MSCI Global Metals & Mining Producers

    53,677  

MSCI Global Silver and Metals Miners

    15,855  

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

Other Transactions: Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the six months ended February 28, 2023, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

iShares ETF   Purchases      Sales      Net Realized
Gain (Loss)
 

MSCI Agriculture Producers

  $ 306,181      $ 1,124,229      $ (135,810

MSCI Global Energy Producers

    244,690        466,608        53,991  

MSCI Global Gold Miners

    4,137,199        1,548,459        22,856  

MSCI Global Metals & Mining Producers

    6,428,925        1,889,264        (317,641

MSCI Global Silver and Metals Miners

    187,675        3,269,720        (1,091,012

 

 

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  45


Notes to Financial Statements  (unaudited) (continued)

 

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is shown as dividends – affiliated in the Statements of Operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

 

7.

PURCHASES AND SALES

For the six months ended February 28, 2023, purchases and sales of investments, excluding short-term securities and in-kind transactions, were as follows:

 

iShares ETF   Purchases      Sales  

MSCI Agriculture Producers

  $ 20,605,062      $ 19,968,790  

MSCI Global Energy Producers

    5,094,066        6,547,677  

MSCI Global Gold Miners

    31,354,398        28,274,785  

MSCI Global Metals & Mining Producers

    92,065,095        70,003,030  

MSCI Global Silver and Metals Miners

    12,941,987        12,613,772  

For the six months ended February 28, 2023, in-kind transactions were as follows:

 

iShares ETF   In-kind
Purchases
     In-kind
Sales
 

MSCI Agriculture Producers

  $ 29,386,329      $ 37,333,627  

MSCI Global Energy Producers

           6,645,699  

MSCI Global Gold Miners

    53,890,047        42,132,300  

MSCI Global Metals & Mining Producers

    123,587,513        19,342,851  

MSCI Global Silver and Metals Miners

    3,789,486        4,675,906  

 

8.

INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Management has analyzed tax laws and regulations and their application to the Funds as of February 28, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of August 31, 2022, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF    Amounts  

MSCI Agriculture Producers

   $ 5,921,350  

MSCI Global Energy Producers

     8,293,510  

MSCI Global Gold Miners

     76,610,760  

MSCI Global Metals & Mining Producers

     88,990,852  

MSCI Global Silver and Metals Miners

     38,174,848  

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of February 28, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

iShares ETF   Tax Cost     Gross Unrealized
Appreciation
     Gross Unrealized
Depreciation
    Net Unrealized
Appreciation
(Depreciation)
 

MSCI Agriculture Producers

  $ 305,545,840     $ 12,177,913      $ (29,135,793   $ (16,957,880

MSCI Global Energy Producers

    90,750,734       29,649,673        (5,341,219     24,308,454  

MSCI Global Gold Miners

    527,638,273       14,299,866        (115,667,332     (101,367,466

MSCI Global Metals & Mining Producers

    1,589,177,648       183,671,334        (214,817,001     (31,145,667

MSCI Global Silver and Metals Miners

    252,210,812       3,127,968        (73,381,324     (70,253,356

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

9.

LINE OF CREDIT

The iShares MSCI Agriculture Producers, iShares MSCI Global Energy Producers and iShares MSCI Global Metals & Mining Producers ETFs, along with certain other iShares funds (“Participating Funds”), are parties to a $800 million credit agreement (“Syndicated Credit Agreement”) with a group of lenders, which expires on August 11, 2023. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Syndicated Credit Agreement. The Syndicated Credit Agreement has the following terms: a commitment fee of 0.15% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) Daily Simple Secured Overnight Financing Rate (“SOFR”) plus 0.10% and 1.00% per annum or (b) the U.S. Federal Funds rate plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Syndicated Credit Agreement.

For the six months ended February 28, 2023, the maximum amount borrowed, the average daily borrowing and the weighted average interest rate, if any, under the Syndicated Credit Agreement were as follows:

 

iShares ETF   Maximum
Amount
Borrowed
     Average
Borrowing
     Weighted
Average
Interest Rates
 

MSCI Agriculture Producers

  $ 845,000      $ 32,680        4.91

MSCI Global Energy Producers

    77,000        3,055        5.02  

MSCI Global Metals & Mining Producers

    890,000        4,917        5.75  

 

10.

PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that BFA believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

 

 

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  47


Notes to Financial Statements  (unaudited) (continued)

 

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.

Certain Funds invest a significant portion of their assets in issuers located in a single country or a limited number of countries. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Unanticipated or sudden political or social developments may cause uncertainty in the markets and as a result adversely affect the Fund’s investments. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be more volatile and less liquid than U.S. securities and may be less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the Schedule of Investments.

Certain Funds invest a significant portion of their assets in securities of issuers located in Russia or with significant exposure to Russian issuers or countries. Russia launched a large-scale invasion of Ukraine on February 24, 2022. Governments in the U.S. and many other countries have imposed economic sanctions on certain Russian individuals and Russian corporate and banking entities. Jurisdictions have instituted broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border payments. The extent and duration of the military action, resulting sanctions and resulting future market disruptions, including declines in Russia’s stock markets and the value of the ruble against the U.S. dollar, are impossible to predict, but have been, and may continue to be, significant. Any such disruptions caused by the Russian military action or any response to such activity from the international community may negatively impact Russia’s economy and Russian issuers of securities in which the Fund invests.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

LIBOR Transition Risk: The Funds may be exposed to financial instruments that are tied to the London Interbank Offered Rate (“LIBOR”) to determine payment obligations, financing terms, hedging strategies or investment value. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, announced that a majority of USD LIBOR settings will no longer be published after June 30, 2023. All other LIBOR settings and certain other interbank offered rates ceased to be published after December 31, 2021. SOFR has been used increasingly on a voluntary basis in new instruments and transactions. The Federal Reserve Board adopted regulations that provide a fallback mechanism by identifying benchmark rates based on SOFR that will replace LIBOR in certain financial contracts after June 30, 2023. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

 

11.

CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable.

Transactions in capital shares were as follows:

 

 

 
    Six Months Ended
02/28/23
    Year Ended
08/31/22
 
iShares ETF   Shares     Amount     Shares     Amount  

 

 

MSCI Agriculture Producers

       

Shares sold

    850,000     $ 36,485,912       5,500,000     $ 256,610,003  

Shares redeemed

    (1,000,000     (43,615,829     (900,000     (35,771,001
 

 

 

   

 

 

   

 

 

   

 

 

 
    (150,000   $ (7,129,917     4,600,000     $ 220,839,002  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

 

 
    Six Months Ended
02/28/23
    Year Ended
08/31/22
 
iShares ETF   Shares     Amount     Shares     Amount  

 

 

MSCI Global Energy Producers

       

Shares sold

        $ 335       1,200,000     $ 26,932,941  

Shares redeemed

    (300,000     (7,230,101     (1,050,000     (21,465,187
 

 

 

   

 

 

   

 

 

   

 

 

 
    (300,000   $ (7,229,766     150,000     $ 5,467,754  
 

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Global Gold Miners

       

Shares sold

    2,400,000     $ 58,766,420       2,800,000     $ 78,364,021  

Shares redeemed

    (2,250,000     (43,351,928     (3,750,000     (100,820,849
 

 

 

   

 

 

   

 

 

   

 

 

 
    150,000     $ 15,414,492       (950,000   $ (22,456,828
 

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Global Metals & Mining Producers

       

Shares sold

    3,500,000     $ 153,919,901       15,350,000     $ 703,994,792  

Shares redeemed

    (650,000     (24,117,066     (6,200,000     (243,910,059
 

 

 

   

 

 

   

 

 

   

 

 

 
    2,850,000     $ 129,802,835       9,150,000     $ 460,084,733  
 

 

 

   

 

 

   

 

 

   

 

 

 

MSCI Global Silver and Metals Miners

       

Shares sold

    400,000     $ 3,805,213       1,000,000     $ 13,463,519  

Shares redeemed

    (500,000     (4,692,734     (2,100,000     (27,443,609
 

 

 

   

 

 

   

 

 

   

 

 

 
    (100,000   $ (887,521     (1,100,000   $ (13,980,090
 

 

 

   

 

 

   

 

 

   

 

 

 

The consideration for the purchase of Creation Units of a fund in the Company generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Company may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Company’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in shares sold in the table above.

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.

 

12.

SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

 

 

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

  49


Statement Regarding Liquidity Risk Management Program (unaudited)

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), iShares, Inc. (the “Company”) has adopted and implemented a liquidity risk management program (the “Program”) for iShares MSCI Agriculture Producers ETF, iShares MSCI Global Energy Producers ETF, iShares MSCI Global Gold Miners ETF, iShares MSCI Global Metals & Mining Producers ETF and iShares MSCI Global Silver and Metals Miners ETF (the “Funds” or “ETFs”), each a series of the Company, which is reasonably designed to assess and manage each Fund’s liquidity risk.

The Board of Directors (the “Board”) of the Company, on behalf of the Funds, met on December 9, 2022 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Fund Advisors (“BlackRock”), the investment adviser to the Funds, as the program administrator for each Fund’s Program. BlackRock also previously delegated oversight of the Program to the 40Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the management of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2021 through September 30, 2022 (the “Program Reporting Period”).

The Report described the Program’s liquidity classification methodology for categorizing each Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also referenced the methodology used by BlackRock to establish each Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually. The Report also discussed notable events affecting liquidity over the Program Reporting Period, including extended market holidays, the imposition of capital controls in certain non-U.S. countries, Russian sanctions and the closure of the Russian securities market.

The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing each Fund’s liquidity risk, as follows:

 

  a)

The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for an open-end fund structure, with a focus on funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Derivative exposure was also considered in the calculation of a fund’s liquidity bucketing. Finally, a factor for consideration under the Liquidity Rule is a Fund’s use of borrowings for investment purposes. However, the Funds do not borrow for investment purposes.

 

  b)

Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each ETF’s reasonably anticipated trading size (“RATS”). The Committee may also take into consideration a fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a fund’s distribution channels, and the degree of certainty associated with a fund’s short-term and long-term cash flow projections.

 

  c)

Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered that ETFs generally do not hold more than de minimis amounts of cash. The Committee also considered that ETFs generally do not engage in borrowing.

 

  d)

The relationship between an ETF’s portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants. The Committee monitored the prevailing bid/ask spread and the ETF price premium (or discount) to NAV for all ETFs. However, there were no ETFs with persistent deviations of fund premium/discount or bid/ask spreads from long-term averages over the Program Reporting Period.

 

  e)

The effect of the composition of baskets on the overall liquidity of an ETF’s portfolio. In reviewing the linkage between the composition of custom baskets accepted by an ETF and any significant change in the liquidity profile of such ETF, the Committee reviewed changes in the proportion of each ETF’s portfolio comprised of less liquid and illiquid holdings to determine if applicable thresholds were met requiring enhanced review.

There were no material changes to the Program during the Program Reporting Period other than the enhancement of certain model components in the Program’s classification methodology. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

 

 

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General Information

 

Electronic Delivery

Shareholders can sign up for e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:

 

   

Go to icsdelivery.com.

 

   

If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the Company’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

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Glossary of Terms Used in this Report

 

Portfolio Abbreviation

 

ADR    American Depositary Receipt
GDR    Global Depositary Receipt
JSC    Joint Stock Company
NVDR    Non-Voting Depositary Receipt
NVS    Non-Voting Shares
PJSC    Public Joint Stock Company

 

 

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Want to know more?

iShares.com    |    1-800-474-2737

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

©2023 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-SAR-812-0223

 

 

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