Table of Contents

 

LOGO

  AUGUST 31, 2022

 

 

   

 

2022 Annual Report

 

 

iShares, Inc.

·  iShares MSCI Eurozone ETF | EZU | Cboe BZX

·  iShares MSCI Germany ETF | EWG | NYSE Arca

·  iShares MSCI Italy ETF | EWI | NYSE Arca

·  iShares MSCI Spain ETF | EWP | NYSE Arca

·  iShares MSCI Switzerland ETF | EWL | NYSE Arca


Table of Contents

The Markets in Review

Dear Shareholder,

The 12-month reporting period as of August 31, 2022 saw the emergence of significant challenges that disrupted the economic recovery and strong financial markets of 2021. The U.S. economy shrank in the first half of 2022, ending the run of robust growth that followed the reopening of global economies and the development of COVID-19 vaccines. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high. 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 weighing on relatively high-valuation growth stocks and economically sensitive small-capitalization stocks. While both large- and small-capitalization U.S. stocks fell, declines for small-capitalization U.S. stocks were steeper. Both emerging market stocks and international equities from developed markets fell significantly, pressured by rising interest rates and a strengthening U.S. dollar.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose notably during the reporting period as investors reacted to higher inflation and attempted to anticipate its impact on future interest rate changes. The corporate bond market also faced inflationary headwinds, and increasing uncertainty led to higher corporate bond spreads (the difference in yield between U.S. Treasuries and similarly-dated corporate bonds).

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is growing faster than expected, raised interest rates four times while indicating that additional rate hikes were likely. Furthermore, the Fed wound down its bond-buying programs and began to reduce its balance sheet. As investors attempted to assess the Fed’s future trajectory, the Fed’s statements late in the reporting period led markets to believe that additional tightening is likely in the near term.

The horrific war in Ukraine has significantly clouded the outlook for the global economy, leading to major volatility in energy and metals markets. Sanctions on Russia, Europe’s top energy supplier, and general wartime disruption have magnified supply problems for key commodities. We believe elevated energy prices will continue to exacerbate inflationary pressure while also constraining economic growth. Combating inflation without stifling a recovery, while buffering against ongoing supply and price shocks, will be an especially challenging environment for setting effective monetary policy. Despite the likelihood of more rate increases on the horizon, we believe the Fed will ultimately err on the side of protecting employment, even at the expense of higher inflation. In the meantime, however, we are likely to see a period of slowing growth paired with relatively high inflation.

In this environment, while we favor an overweight to equities in the long-term, the market’s concerns over excessive rate hikes from central banks moderate our outlook. Furthermore, the energy shock and a deteriorating economic backdrop in China and Europe are likely to challenge corporate earnings, so we are underweight equities overall in the near term. We take the opposite view on credit, where higher spreads provide near-term opportunities, while the likelihood of higher inflation leads us to take an underweight stance on credit in the long term. We believe that investment-grade corporates, U.K. gilts, local-currency emerging market debt, and inflation-protected bonds (particularly in Europe) offer strong opportunities for a six- to twelve-month horizon.

Overall, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of August 31, 2022

 

 
     
      6-Month       12-Month  
     

U.S. large cap equities
(S&P 500® Index)

    (8.84)     (11.23)
     

U.S. small cap equities
(Russell 2000® Index)

    (9.31)       (17.88)  
     

International equities
(MSCI Europe, Australasia, Far East Index)

    (13.97)       (19.80)  
     

Emerging market equities
(MSCI Emerging Markets Index)

    (13.30)       (21.80)  
     

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

    0.36        0.39   
     

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

    (9.71)       (13.27)  
     

U.S. investment grade bonds (Bloomberg U.S. Aggregate Bond Index)

    (7.76)       (11.52)  
     

Tax-exempt municipal bonds (Bloomberg Municipal Bond Index)

    (5.72)       (8.63)  
     

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

    (7.78)       (10.61)  
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

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


Table of Contents

Table of Contents

 

 

      Page

The Markets in Review

   2

Annual Report:

  

Market Overview

   4

Fund Summary

   5

About Fund Performance

   15

Disclosure of Expenses

   15

Schedules of Investments

   16

Financial Statements

  

Statements of Assets and Liabilities

   30

Statements of Operations

   32

Statements of Changes in Net Assets

   34

Financial Highlights

   37

Notes to Financial Statements

   42

Report of Independent Registered Public Accounting Firm

   51

Important Tax Information

   52

Board Review and Approval of Investment Advisory Contract

   53

Supplemental Information

   59

Director and Officer Information

   61

General Information

   64

Glossary of Terms Used in this Report

   65

 

 

      


Table of Contents

Market Overview

 

iShares, Inc.

Global Market Overview

Global equity markets declined in U.S. dollar terms during the 12 months ended August 31, 2022 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned -15.88% in U.S. dollar terms for the reporting period.

For the first third of the reporting period, economic recovery supported stocks in most regions of the world. The global economy continued to rebound from the impact of restrictions imposed at the beginning of the coronavirus pandemic, as mitigation and adaptation allowed most economic activity to continue. However, substantial challenges emerged at the beginning of 2022 which negatively affected stock prices. Inflation rose significantly in many countries, reducing consumers’ purchasing power and leading many central banks to tighten monetary policy. Russia’s invasion of Ukraine presented a further challenge to the global economy, disrupting important commodities markets.

The U.S. economy grew briskly over the final half of 2021, powered primarily by consumer spending. Record-high personal savings rates allowed consumers to spend at an elevated level, releasing pent-up demand for goods and services. Growth subsequently stalled in the first half of 2022, and the economy contracted amid lower inventories and faltering business investment. Despite the economic downturn, unemployment declined substantially, falling to 3.7% in August 2022 while the number of long-term unemployed dropped below the pre-pandemic level. Although high inflation negatively impacted consumer sentiment, which declined significantly, consumer spending continued to grow.

Rising inflation led to a shift in policy from the U.S. Federal Reserve (“the Fed”). As the reporting period began, the Fed was using accommodative monetary policy to stimulate the economy. Short-term interest rates were kept at near-zero levels, and the Fed used bond-buying programs to stabilize debt markets. However, rising prices led the Fed to tighten monetary policy during the reporting period in an attempt to prevent runaway inflation. The Fed slowed and then ended its bond-buying activities, finally reversing course as it began to reduce its balance sheet in June 2022. In March 2022, the Fed began to raise short-term interest rates, followed by three more increases for a total increase of 225 basis points, the most rapid rise in decades. Interest rates rose significantly in response, leading to higher borrowing costs for businesses. In that environment, the U.S. dollar significantly appreciated relative to most foreign currencies.

Stocks declined in Europe in U.S. dollar terms as economic growth stalled and the euro declined sharply relative to the U.S. dollar. Significantly higher inflation and Russia’s invasion of Ukraine negatively impacted equities. Russia is an important trading partner with many European countries, and new sanctions imposed limits on certain types of trade with Russia. Investors became concerned that the sharp rise in energy prices during the reporting period would constrain economic growth, as Europe relies on imported energy for much of its industrial and heating needs. The European Central Bank (“ECB”) responded to elevated inflation by raising interest rates in July 2022, the first such increase in over a decade.

Despite relatively low inflation by global standards, Asia-Pacific stocks declined significantly in U.S. dollar terms. Chinese stocks faced significant headwinds amid regulatory interventions by the Chinese government and strict lockdowns following COVID-19 outbreaks. Japanese stocks also declined amid an economic contraction in the first quarter of 2022 and a sharp decline in the Japanese yen relative to the U.S. dollar. Emerging market stocks declined substantially, as higher interest rates and a strengthening U.S. dollar raised the cost of borrowing in many emerging economies.

 

 

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Table of Contents
Fund Summary  as of August 31, 2022    iShares® MSCI Eurozone ETF

 

Investment Objective

The iShares MSCI Eurozone ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization equities from developed market countries that use the euro as their official currency, as represented by the MSCI EMU Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

     Average Annual Total Returns         Cumulative Total Returns  
     1 Year      5 Years      10 Years          1 Year      5 Years      10 Years  

Fund NAV

    (27.98 )%       (0.66 )%       4.61       (27.98 )%       (3.28 )%       56.94

Fund Market

    (27.79      (0.66      4.66         (27.79      (3.28      57.74  

Index

    (27.92      (0.72      4.64           (27.92      (3.57      57.39  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
     

Beginning
Account Value
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
                 
      $      1,000.00          $        817.40          $        2.61           $      1,000.00          $      1,022.30          $        2.91          0.57

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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.

 

 

 

F U N D   S U M M A R Y

  5


Table of Contents
Fund Summary  as of August 31, 2022   (continued)    iShares® MSCI Eurozone ETF

 

Portfolio Management Commentary

Stocks in the eurozone declined sharply during the reporting period. Russia’s invasion of Ukraine disrupted supply chains and contributed to high inflation across the eurozone as commodities and energy prices soared. Many nations imposed sanctions against Russia while some companies halted Russian business operations. Rising inflation, which led the ECB to raise interest rates in July 2022 for the first time in 11 years, weakened business confidence and the economic outlook. The declining value of the euro relative to the U.S. dollar also diminished the value of eurozone stocks in U.S. dollar terms.

German equities detracted the most from the Index’s performance, led by the consumer discretionary sector. Textiles, apparel, and luxury goods companies reported weaker earnings due to the lingering effects of coronavirus-related shutdowns of shoe manufacturing plants in Vietnam. Slowing sales in China and growing competition from local brands also weakened the outlook for textiles, apparel, and luxury goods companies. Stocks in Germany’s industrials sector fell as supply chain disruptions and escalating input prices drove lower earnings outlooks. Information technology stocks also declined as many firms discontinued business operations in Russia and the economic outlook across Europe weakened.

Stocks in France also detracted from the Index’s return. Coronavirus-related lockdowns in China disrupted production of a French industrials company with Chinese operations and limited the supply of critical parts. The aerospace and defense industry was also negatively impacted by shortages in the supply of key parts, including engines and microchips. In the consumer discretionary sector, China’s lockdowns shuttered stores and led to declining sales of luxury brand products in the apparel, accessories, and luxury goods industry. The economic downturn in the U.S., where growth turned negative in the first two quarters of 2022, also weighed on sales of French luxury goods.

Stocks in the Netherlands also detracted from the Index’s performance. A global supply shortage of microprocessors slowed production for semiconductor equipment manufacturers, while the slowing worldwide economy diminished the sales outlook for many products that use microprocessors.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector   Percent of   
Total Investments(a)

Consumer Discretionary

  16.5%

Industrials

  15.4   

Financials

  14.5   

Information Technology

  12.9   

Consumer Staples

  8.6   

Health Care

  7.7   

Utilities

  6.6   

Materials

  6.5   

Energy

  5.2   

Communication Services

  4.9   

Real Estate

  1.2   

GEOGRAPHIC ALLOCATION

 

   
Country/Geographic Region   Percent of   
Total Investments(a)

France

  36.1%

Germany

  24.2   

Netherlands

  15.2   

Spain

  7.9   

Italy

  6.1   

Finland

  3.3   

Belgium

  2.6   

Ireland

  2.0   

Switzerland

  0.7   

Portugal

  0.6   
  (a) 

Excludes money market funds.

 

 

 

6  

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Table of Contents
Fund Summary  as of August 31, 2022    iShares® MSCI Germany ETF

 

Investment Objective

The iShares MSCI Germany ETF (the “Fund”) seeks to track the investment results of an index composed of German equities, as represented by the MSCI Germany Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

     Average Annual Total Returns         Cumulative Total Returns  
     1 Year      5 Years      10 Years          1 Year      5 Years      10 Years  

Fund NAV

    (35.02 )%       (4.09 )%       2.57       (35.02 )%       (18.83 )%       28.87

Fund Market

    (35.02      (4.12      2.62         (35.02      (18.99      29.53  

Index

    (34.96      (3.92      2.75           (34.96      (18.11      31.17  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

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
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
     

Beginning
Account Value
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
                 
      $      1,000.00          $        768.00          $        2.23           $      1,000.00          $      1,022.70          $        2.55          0.50

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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.

 

 

 

F U N D   S U M M A R Y

  7


Table of Contents
Fund Summary  as of August 31, 2022   (continued)    iShares® MSCI Germany ETF

 

Portfolio Management Commentary

Stocks in Germany declined sharply during the reporting period. Russia’s invasion of Ukraine disrupted supply chains and contributed to record-high inflation as prices for commodities and energy soared. Many nations, including Germany, imposed sanctions against Russia while some companies suspended Russian business operations. Germany’s economic growth slowed despite the lifting of many coronavirus-related restrictions. Rising inflation rates led the ECB to raise interest rates in July 2022 for the first time in 11 years, further weakening business confidence and the economic outlook. The declining value of the euro relative to the U.S. dollar also diminished the value of German stocks in U.S. dollar terms.

The consumer discretionary sector detracted the most from the Index’s performance. Sales in the apparel, accessories, and luxury goods industry weakened after coronavirus-related restrictions forced the shutdown of shoe manufacturing plants in Vietnam. Stocks of automobile manufacturers also declined, as a global shortage of microprocessors forced automakers to curtail vehicle production while rising commodities prices, stemming from the war in Ukraine, increased costs.

The industrials sector also detracted notably from the Index’s return. Germany’s industrial production contracted over most of the reporting period, particularly in the second half. Supply chain disruptions and escalating input prices negatively affected the earnings outlook for the industrial conglomerates industry. In addition, sanctions against Russia forced a production halt in the country while also negatively affecting business operations in other areas.

The information technology sector further detracted from the Index’s performance, as many firms in the sector discontinued business operations in Russia and as the economic outlook across Europe weakened. The cost of investments in infrastructure to support cloud computing, such as computer servers and data centers, led to lower profit margins.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector   Percent of   
Total Investments(a)

Industrials

  17.4%

Financials

  16.6   

Consumer Discretionary

  16.4   

Health Care

  12.9   

Information Technology

  12.6   

Communication Services

  7.0   

Materials

  6.8   

Utilities

  4.4   

Consumer Staples

  3.2   

Real Estate

  2.7   

TEN LARGEST HOLDINGS

 

   
Security   Percent of   
Total Investments(a)

SAP SE

  8.8%

Siemens AG

  7.7   

Allianz SE

  6.8   

Deutsche Telekom AG

  6.0   

Bayer AG

  5.1   

Mercedes-Benz Group AG

  4.4   

BASF SE

  3.8   

Deutsche Post AG

  3.6   
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen   3.3   

Deutsche Boerse AG

  3.2   
  (a) 

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary  as of August 31, 2022    iShares® MSCI Italy ETF

 

Investment Objective

The iShares MSCI Italy ETF (the “Fund”) seeks to track the investment results of an index composed of Italian equities, as represented by the MSCI Italy 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

     Average Annual Total Returns         Cumulative Total Returns  
     1 Year      5 Years      10 Years          1 Year      5 Years      10 Years  

Fund NAV

    (26.50 )%       (2.07 )%       2.75       (26.50 )%       (9.94 )%       31.17

Fund Market

    (26.59      (2.13      2.79         (26.59      (10.19      31.62  

Index

    (26.08      (1.85      2.85           (26.08      (8.93      32.41  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through February 11, 2013 reflects the performance of the MSCI Italy Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Italy 25/50 Index.

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
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
     

Beginning
Account Value
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
                 
      $      1,000.00          $        782.10          $        2.25           $      1,000.00          $      1,022.70          $        2.55          0.50

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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.

 

 

 

F U N D   S U M M A R Y

  9


Table of Contents
Fund Summary  as of August 31, 2022   (continued)    iShares® MSCI Italy ETF

 

Portfolio Management Commentary

Stocks in Italy declined sharply during the reporting period. Russia’s invasion of Ukraine disrupted supply chains and contributed to heightened inflation in Italy as prices for commodities and energy climbed. The weaker euro, which fell below parity with the U.S. dollar for the first time in nearly 20 years, contributed to higher inflation rates. The declining value of the euro relative to the U.S. dollar also diminished the value of Italian stocks in U.S. dollar terms. Rising inflation rates led the ECB to raise interest rates in July 2022 for the first time in 11 years. Italy’s economy grew during the reporting period, boosted by stronger consumer consumption as coronavirus-related restrictions eased. However, rising interest rates and inflationary pressures weakened business confidence and increased expectations that Italian economic growth will contract and fall into a recession.

The utilities sector detracted the most from the Index’s performance. Many nations, including Italy, imposed sanctions against Russia following the Ukrainian invasion, leading some Italian utilities to suspend Russian business operations. Russia responded to the sanctions by restricting oil and gas flow to Western Europe, raising supply uncertainties and increasing energy costs. A large Italian utilities company raised debt to fund a transition from Russian sources of energy which, combined with rising interest rates, prompted credit rating agencies to downgrade its credit rating.

The financials sector also detracted from the Index’s return. Although higher interest rates supported banking profits, stock prices dropped sharply after the ECB raised interest rates. Higher interest rates weakened the value of the banks’ investments in government debt and raised concerns about the strength of the financials sector. Banks halted further business activities in Russia following the invasion and wrote down the value of their assets in the country.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector   Percent of   
Total Investments(a)

Financials

  27.0%

Utilities

  19.2   

Consumer Discretionary

  18.9   

Industrials

  11.9   

Energy

  11.6   

Health Care

  4.9   

Communication Services

  2.6   

Consumer Staples

  2.1   

Information Technology

  1.8   

TEN LARGEST HOLDINGS

 

   
Security   Percent of   
Total Investments(a)

Enel SpA

  11.8%

Eni SpA

  9.0   

Stellantis NV

  8.9   

Intesa Sanpaolo SpA

  8.6   

Ferrari NV

  6.6   

UniCredit SpA

  4.8   

CNH Industrial NV

  4.6   

Assicurazioni Generali SpA

  4.6   

Atlantia SpA

  4.2   

Terna - Rete Elettrica Nazionale

  3.8   
  (a) 

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary  as of August 31, 2022    iShares® MSCI Spain ETF

 

Investment Objective

The iShares MSCI Spain ETF (the “Fund”) seeks to track the investment results of an index composed of Spanish equities, as represented by the MSCI Spain 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

     Average Annual Total Returns         Cumulative Total Returns  
     1 Year      5 Years      10 Years          1 Year      5 Years      10 Years  

Fund NAV

    (19.89 )%       (5.29 )%       1.68       (19.89 )%       (23.79 )%       18.12

Fund Market

    (20.02      (5.35      1.71         (20.02      (24.04      18.43  

Index

    (19.19      (4.97      2.07           (19.19      (22.51      22.73  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through February 11, 2013 reflects the performance of the MSCI Spain Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Spain 25/50 Index.

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
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
     

Beginning
Account Value
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
                 
      $      1,000.00          $        860.70          $        2.44           $      1,000.00          $      1,022.60          $        2.65          0.52

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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.

 

 

 

F U N D   S U M M A R Y

  11


Table of Contents
Fund Summary  as of August 31, 2022   (continued)    iShares® MSCI Spain ETF

 

Portfolio Management Commentary

Stocks in Spain declined during the reporting period. Russia’s invasion of Ukraine disrupted supply chains, which contributed to elevated inflation as prices for commodities and oil climbed, sending stocks across Europe lower. The weaker euro, which fell below parity with the U.S. dollar for the first time in nearly 20 years, contributed to higher inflation rates. The declining value of the euro relative to the U.S. dollar also diminished the value of Spanish stocks in U.S. dollar terms. Rising inflation rates led the ECB to raise interest rates in July 2022 for the first time in 11 years. Spain’s economy grew steadily during the reporting period, boosted by stronger consumer consumption as coronavirus-related restrictions eased. However, rising interest rates and inflationary pressures weakened business confidence and the economic outlook.

Stocks in the financials sector detracted the most from the Index’s return. Bank stocks dropped sharply in July 2022 when the Spanish government announced new taxes on the largest lenders. While rising interest rates increased interest income, they also led to higher funding costs, and the weakening global economy raised the costs of provisions for loans that were expected to become delinquent. Rising inflation rates also drove banking industry operating costs higher.

Stocks in the utilities sector further detracted from the Index’s performance. The Spanish government discussed raising revenues by increasing taxes on select industries, including utilities companies. Profit margins diminished as soaring energy prices forced utilities to buy electricity at high wholesale prices to supply to consumers with services previously locked in at much lower prices.

Stocks in the industrials sector also detracted from the Index’s return. Supply chain disruptions, escalating raw material costs, and volatility in customer orders sent earnings and stock prices lower.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector   Percent of   
Total Investments(a)

Utilities

  33.4%

Financials

  28.8   

Industrials

  13.7   

Communication Services

  8.9   

Energy

  4.7   

Information Technology

  4.5   

Consumer Discretionary

  4.1   

Health Care

  1.9   

TEN LARGEST HOLDINGS

 

   
Security   Percent of   
Total Investments(a)

Iberdrola SA

  20.3%

Banco Santander SA

  13.8   

Banco Bilbao Vizcaya Argentaria SA

  10.2   

CaixaBank SA

  4.8   

Repsol SA

  4.7   

Telefonica SA

  4.6   

Amadeus IT Group SA

  4.5   

Ferrovial SA

  4.4   

Cellnex Telecom SA

  4.3   

Industria de Diseno Textil SA

  4.1   
  (a) 

Excludes money market funds.

 

 

 

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Table of Contents
Fund Summary  as of August 31, 2022    iShares® MSCI Switzerland ETF

 

Investment Objective

The iShares MSCI Switzerland ETF (the “Fund”) seeks to track the investment results of an index composed of Swiss equities, as represented by the MSCI Switzerland 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

     Average Annual Total Returns         Cumulative Total Returns  
     1 Year      5 Years      10 Years          1 Year      5 Years      10 Years  

Fund NAV

    (18.24 )%       5.58      7.78       (18.24 )%       31.17      111.47

Fund Market

    (18.49      5.50        7.81         (18.49      30.73        112.12  

Index

    (17.87      5.80        8.01           (17.87      32.57        116.08  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through February 11, 2013 reflects the performance of the MSCI Switzerland Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Switzerland 25/50 Index.

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
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
     

Beginning
Account Value
(03/01/22)
 
 
 
      

Ending
Account Value
(08/31/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
                 
      $      1,000.00          $        859.20          $        2.34           $      1,000.00          $      1,022.70          $        2.55          0.50

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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.

 

 

 

F U N D   S U M M A R Y

  13


Table of Contents
Fund Summary  as of August 31, 2022   (continued)    iShares® MSCI Switzerland ETF

 

Portfolio Management Commentary

Stocks in Switzerland declined during the reporting period. Russia’s invasion of Ukraine disrupted supply chains and contributed to rising inflation rates in Switzerland as prices for food and energy climbed. In June 2022, elevated inflation led the Swiss National Bank to raise interest rates for the first time since 2007. Business confidence and the economic outlook weakened despite the easing of coronavirus-related restrictions that benefited tourism and the service industries.

The healthcare sector detracted the most from the Index’s return. The stock price of a large pharmaceuticals company dropped sharply following the disappointing clinical trial performance of a lung cancer drug. Analysts noted that the trial results suggested the drug’s effectiveness in fighting other types of cancer was limited. In addition, a decision by the U.S. Medicare program to restrict coverage for new treatments for Alzheimer’s disease dimmed prospects for new drugs to combat the disease. The U.S. passed legislation in August 2022 that gives Medicare new powers to negotiate prices for certain drugs and penalize companies that raise Medicare drug prices faster than the rate of inflation.

The industrials sector also detracted from the Index’s performance. Machinery companies contended with rising materials costs and construction delays in end markets such as China, where regulatory curbs on borrowing weakened the property market. A global slowdown in construction also negatively impacted earnings for the machinery industry. International sanctions against Russia following the invasion of Ukraine led the electrical equipment industry to exit the Russian market, weakening earnings. A global shortage of microprocessors also diminished revenues and profits in the industry. The materials sector also declined, most notably the chemicals industry, which was pressured by rising raw material costs, slowing sales in Western Europe, and supply chain disruptions.

Portfolio Information

 

SECTOR ALLOCATION

 

   
Sector   Percent of   
Total Investments(a)

Health Care

  32.4%

Consumer Staples

  23.9   

Financials

  16.8   

Industrials

  9.5   

Materials

  8.6   

Consumer Discretionary

  5.5   

Information Technology

  1.4   

Communication Services

  1.2   

Real Estate

  0.7   

TEN LARGEST HOLDINGS

 

   
Security   Percent of   
Total Investments(a)

Nestle SA

  21.1%

Roche Holding AG

  13.8   

Novartis AG

  10.1   

Zurich Insurance Group AG

  4.7   

Cie. Financiere Richemont SA, Class A

  4.4   

UBS Group AG

  4.2   

ABB Ltd.

  3.4   

Lonza Group AG

  3.0   

Alcon Inc.

  2.6   

Sika AG

  2.5   
  (a) 

Excludes money market funds.

 

 

 

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Table of Contents

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.

 

 

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

  15


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI Eurozone ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Austria — 0.6%

   

Erste Group Bank AG

    400,634     $ 9,009,357  

OMV AG

    171,598       6,914,072  

Verbund AG

    81,190       7,758,325  

voestalpine AG

    138,919       2,795,398  
   

 

 

 
      26,477,152  
Belgium — 2.6%            

Ageas SA/NV

    189,197       7,676,769  

Anheuser-Busch InBev SA/NV

    1,015,494       49,042,796  

D’ieteren Group

    29,002       4,372,095  

Elia Group SA/NV

    39,472       5,734,156  

Groupe Bruxelles Lambert SA

    118,416       8,951,801  

KBC Group NV

    291,444       13,899,691  

Proximus SADP

    182,130       2,318,334  

Sofina SA

    18,255       3,659,304  

Solvay SA

    86,362       6,971,678  

UCB SA

    148,458       10,431,671  

Umicore SA

    244,036       7,756,942  

Warehouses De Pauw CVA

    173,317       5,273,530  
   

 

 

 
      126,088,767  
Finland — 3.3%            

Elisa OYJ

    167,608       8,963,386  

Fortum OYJ

    526,375       5,414,530  

Kesko OYJ, Class B

    318,238       6,694,970  

Kone OYJ, Class B

    396,026       15,838,067  

Neste OYJ

    492,942       24,320,187  

Nokia OYJ

    6,326,669       31,882,394  

Orion OYJ, Class B

    125,756       5,701,788  

Sampo OYJ, Class A

    559,829       25,326,843  

Stora Enso OYJ, Class R

    648,334       9,651,082  

UPM-Kymmene OYJ

    621,886       21,128,137  

Wartsila OYJ Abp

    563,694       4,647,795  
   

 

 

 
         159,569,179  
France — 36.0%            

Accor SA(a)

    198,330       4,730,402  

Aeroports de Paris(a)

    34,448       4,716,976  

Air Liquide SA

    611,366       76,612,022  

Airbus SE

    691,066       67,719,697  

Alstom SA(b)

    369,707       7,576,495  

Amundi SA(c)

    70,850       3,592,358  

ArcelorMittal SA

    615,762       14,614,564  

Arkema SA

    69,259       5,846,958  

AXA SA

    2,185,122       51,463,164  

BioMerieux

    49,166       4,496,214  

BNP Paribas SA

    1,298,772       60,354,183  

Bollore SE

    1,044,722       4,992,511  

Bouygues SA

    267,415       7,855,307  

Bureau Veritas SA

    342,596       8,503,201  

Capgemini SE

    191,457       33,079,555  

Carrefour SA

    705,833       11,780,695  

Cie. de Saint-Gobain

    582,483       23,461,099  

Cie. Generale des Etablissements Michelin SCA

    794,091       19,313,299  

Covivio

    55,675       3,108,201  

Credit Agricole SA

    1,415,063       13,023,770  

Danone SA

    750,574       39,495,420  

Dassault Aviation SA

    29,589       4,063,446  

Dassault Systemes SE

    779,631       30,065,048  

Edenred

    292,623       14,800,688  

Eiffage SA

    97,063       8,537,168  
Security   Shares     Value  

France (continued)

   

Electricite de France SA

    664,293     $ 7,942,439  

Engie SA

    2,135,919       25,368,523  

EssilorLuxottica SA

    336,352       50,095,400  

Eurazeo SE

    51,297       3,063,461  

Eurofins Scientific SE

    158,086       10,937,684  

Gecina SA

    53,381       4,750,798  

Getlink SE

    512,665       9,654,011  

Hermes International

    37,066       47,472,843  

Ipsen SA

    43,765       4,194,311  

Kering SA

    87,369       43,837,610  

Klepierre SA

    253,227       5,194,257  

La Francaise des Jeux SAEM(c)

    123,673       4,011,233  

Legrand SA

    312,954       22,643,684  

L’Oreal SA

    282,132       96,896,601  

LVMH Moet Hennessy Louis Vuitton SE

    324,557       209,425,850  

Orange SA

    2,324,507       23,541,160  

Pernod Ricard SA

    244,640       44,888,600  

Publicis Groupe SA

    267,957       13,083,081  

Remy Cointreau SA(b)

    27,091       5,024,371  

Renault SA(a)

    223,575       6,368,081  

Safran SA

    399,600       40,741,010  

Sanofi

    1,331,290       108,832,697  

Sartorius Stedim Biotech

    32,233       11,789,586  

Schneider Electric SE

    634,286       75,389,553  

SEB SA

    29,319       2,171,516  

Societe Generale SA

    926,611       20,427,516  

Sodexo SA

    103,098       7,884,921  

Teleperformance

    68,777       19,588,180  

Thales SA

    124,335       14,989,924  

TotalEnergies SE

    2,898,587       146,754,549  

Ubisoft Entertainment SA(a)

    111,382       5,136,387  

Unibail-Rodamco-Westfield(a)(b)

    137,269       7,056,924  

Valeo

    240,251       4,589,203  

Veolia Environnement SA

    778,966       17,361,135  

Vinci SA

    623,904       57,557,284  

Vivendi SE

    839,570       7,610,244  

Wendel SE

    31,681       2,489,240  

Worldline SA/France(a)(c)

    280,171       12,003,276  
   

 

 

 
       1,724,569,584  
Germany — 22.6%            

adidas AG

    202,120       29,970,986  

Allianz SE, Registered

    477,534       80,720,629  

Aroundtown SA(b)

    1,178,453       3,437,062  

BASF SE

    1,074,840       45,464,498  

Bayer AG, Registered

    1,148,577       60,745,921  

Bayerische Motoren Werke AG

    387,090       28,520,270  

Bechtle AG

    96,869       3,711,009  

Beiersdorf AG

    118,429       11,954,222  

Brenntag SE

    181,519       11,901,740  

Carl Zeiss Meditec AG, Bearer

    47,535       5,916,158  

Commerzbank AG(a)

    1,240,305       8,252,897  

Continental AG

    128,174       7,379,532  

Covestro AG(c)

    225,115       6,787,653  

Daimler Truck Holding AG(a)

    531,211       13,582,448  

Deutsche Bank AG, Registered

    2,408,092       20,090,425  

Deutsche Boerse AG

    221,987       37,532,338  

Deutsche Lufthansa AG, Registered(a)(b)

    703,466       4,182,308  

Deutsche Post AG, Registered

    1,157,611       42,251,793  

Deutsche Telekom AG, Registered

    3,789,370       71,419,126  

E.ON SE

    2,615,890       22,312,476  

 

 

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Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Eurozone ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Germany (continued)

   

Evonik Industries AG

    244,343     $ 4,555,804  

Fresenius Medical Care AG & Co. KGaA

    238,988       8,182,800  

Fresenius SE & Co. KGaA

    492,085       12,173,339  

GEA Group AG

    178,763       6,218,595  

Hannover Rueck SE

    70,268       10,356,519  

HeidelbergCement AG

    168,737       7,619,736  

HelloFresh SE(a)

    192,545       4,597,198  

Henkel AG & Co. KGaA

    122,121       7,637,368  

Infineon Technologies AG

    1,525,962       37,338,559  

KION Group AG

    83,776       3,347,425  

Knorr-Bremse AG

    85,549       4,146,125  

LEG Immobilien SE

    84,876       6,414,395  

Mercedes-Benz Group AG

    938,466       52,615,743  

Merck KGaA

    151,173       25,968,495  

MTU Aero Engines AG

    62,810       11,077,319  

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered

    163,652       39,099,862  

Nemetschek SE

    68,509       4,035,874  

Puma SE

    123,021       7,519,483  

Rational AG

    5,968       3,218,906  

Rheinmetall AG

    50,758       8,057,576  

RWE AG

    751,049       28,673,093  

SAP SE

    1,220,832       103,977,484  

Scout24 SE(c)

    93,457       5,384,341  

Siemens AG, Registered

    894,381       90,595,546  

Siemens Healthineers AG(c)

    328,582       16,056,534  

Symrise AG

    154,725       16,189,525  

Telefonica Deutschland Holding AG

    1,207,772       3,135,308  

Uniper SE(b)

    105,888       572,948  

United Internet AG, Registered

    114,687       2,594,288  

Volkswagen AG

    34,293       6,343,191  

Vonovia SE

    837,403       22,669,776  

Zalando SE(a)(c)

    259,521       6,008,651  
   

 

 

 
       1,082,515,297  
Ireland — 2.0%            

CRH PLC

    895,434       33,066,228  

Flutter Entertainment PLC, Class DI(a)

    195,224       24,461,365  

Kerry Group PLC, Class A

    185,455       19,124,440  

Kingspan Group PLC

    181,308       10,265,436  

Smurfit Kappa Group PLC

    289,698       9,713,449  
   

 

 

 
      96,630,918  
Italy — 6.1%            

Amplifon SpA

    147,356       3,840,232  

Assicurazioni Generali SpA

    1,298,445       19,043,964  

Atlantia SpA

    577,305       13,219,397  

DiaSorin SpA

    29,277       3,840,662  

Enel SpA

    9,514,877       44,711,089  

Eni SpA

    2,940,725       34,738,562  

Ferrari NV

    147,362       28,447,106  

FinecoBank Banca Fineco SpA

    710,633       7,683,573  

Infrastrutture Wireless Italiane SpA(c)

    389,976       3,614,262  

Intesa Sanpaolo SpA

    19,309,187       33,240,574  

Mediobanca Banca di Credito Finanziario SpA

    705,261       5,582,763  

Moncler SpA

    241,520       10,745,644  

Nexi SpA(a)(c)

    610,627       5,009,882  

Poste Italiane SpA(c)

    616,310       4,925,544  

Prysmian SpA

    296,811       9,106,978  

Recordati Industria Chimica e Farmaceutica SpA

    121,226       4,946,018  

Snam SpA

    2,391,515       11,366,643  

Telecom Italia SpA/Milano(a)(b)

    11,956,065       2,466,046  
Security   Shares     Value  

Italy (continued)

   

Tenaris SA

    550,210     $ 7,526,590  

Terna - Rete Elettrica Nazionale

    1,651,904       11,743,734  

UniCredit SpA

    2,426,152       23,742,052  
   

 

 

 
         289,541,315  
Netherlands — 15.1%            

ABN AMRO Bank NV, CVA(c)

    490,875       4,715,780  

Adyen NV(a)(c)

    25,336       39,097,111  

Aegon NV

    2,086,040       9,322,562  

AerCap Holdings NV(a)(b)

    156,933       6,912,899  

Akzo Nobel NV

    213,160       13,429,369  

Argenx SE(a)

    64,368       24,238,525  

ASM International NV

    55,027       14,961,250  

ASML Holding NV

    475,210       231,957,297  

Davide Campari-Milano NV

    609,043       5,975,228  

Euronext NV(c)

    101,156       7,475,726  

EXOR NV

    126,391       7,609,387  

Heineken Holding NV

    117,465       8,332,736  

Heineken NV

    303,082       27,240,726  

IMCD NV

    66,413       9,162,058  

ING Groep NV

    4,567,690       40,033,248  

JDE Peet’s NV

    121,200       3,737,232  

Just Eat Takeaway.com NV(a)(c)

    217,191       3,613,069  

Koninklijke Ahold Delhaize NV

    1,222,577       33,629,194  

Koninklijke DSM NV

    204,413       26,065,874  

Koninklijke KPN NV

    3,876,431       12,335,176  

Koninklijke Philips NV

    1,034,574       17,182,202  

NN Group NV

    326,186       13,405,581  

OCI NV

    124,006       4,655,536  

Prosus NV

    967,914       59,826,231  

QIAGEN NV(a)

    268,963       12,199,220  

Randstad NV

    139,328       6,488,607  

Stellantis NV

    2,572,913       34,272,565  

Universal Music Group NV

    845,148       16,782,906  

Wolters Kluwer NV

    306,901       30,012,712  
   

 

 

 
      724,670,007  
Portugal — 0.6%            

EDP - Energias de Portugal SA

    3,234,428       15,446,320  

Galp Energia SGPS SA

    584,051       6,307,156  

Jeronimo Martins SGPS SA

    334,405       7,414,339  
   

 

 

 
      29,167,815  
South Korea — 0.2%            

Delivery Hero SE(a)(c)

    192,216       7,977,196  
   

 

 

 
Spain — 7.9%            

Acciona SA

    29,916       5,859,534  

ACS Actividades de Construccion y Servicios SA

    269,979       6,015,016  

Aena SME SA(a)(c)

    89,103       10,943,778  

Amadeus IT Group SA(a)

    526,711       27,804,745  

Banco Bilbao Vizcaya Argentaria SA

    7,812,960       35,058,259  

Banco Santander SA

    19,969,532       48,340,173  

CaixaBank SA

    5,257,214       15,874,163  

Cellnex Telecom SA(c)

    635,769       24,758,573  

EDP Renovaveis SA

    339,176       8,225,754  

Enagas SA

    213,004       3,889,475  

Endesa SA

    377,513       6,475,110  

Ferrovial SA

    565,819       14,187,850  

Grifols SA(a)(b)

    360,601       4,359,140  

Iberdrola SA

    6,961,848       72,484,645  

Industria de Diseno Textil SA

    1,279,552       27,627,355  

Naturgy Energy Group SA

    172,181       4,747,829  

 

 

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

  17


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Eurozone ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Spain (continued)

   

Red Electrica Corp. SA

    392,304     $ 7,172,405  

Repsol SA

    1,715,001       22,274,569  

Siemens Gamesa Renewable Energy SA(a)

    283,083       5,100,570  

Telefonica SA

    6,125,675       25,280,751  
   

 

 

 
      376,479,694  
Switzerland — 0.7%            

Siemens Energy AG(a)

    507,999       7,472,311  

STMicroelectronics NV

    799,171       27,851,245  
   

 

 

 
      35,323,556  
United Kingdom — 0.6%            

CNH Industrial NV

    1,200,844       14,620,356  

Coca-Cola Europacific Partners PLC

    241,120       11,855,870  
   

 

 

 
      26,476,226  
   

 

 

 

Total Common Stocks — 98.3%
(Cost: $6,578,339,589)

 

     4,705,486,706  
   

 

 

 

Preferred Stocks

   

Germany — 1.5%

   

Bayerische Motoren Werke AG, Preference

   

Shares, NVS

    69,450       4,828,450  

Henkel AG & Co. KGaA, Preference Shares, NVS

    207,597       13,396,984  

Porsche Automobil Holding SE, Preference

   

Shares, NVS

    179,954       12,688,473  

Sartorius AG, Preference Shares, NVS

    28,369       11,819,239  

Volkswagen AG, Preference Shares, NVS

    216,963       30,860,629  
   

 

 

 
      73,593,775  
   

 

 

 

Total Preferred Stocks — 1.5%
(Cost: $118,347,854)

 

    73,593,775  
   

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $6,696,687,443)

 

    4,779,080,481  
   

 

 

 
Security   Shares     Value  

 

 

Short-Term Securities

   

Money Market Funds — 0.8%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.42%(d)(e)(f)

    13,205,592     $ 13,209,554  

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(d)(e)

    24,890,000       24,890,000  
   

 

 

 

Total Short-Term Securities — 0.8%
(Cost: $38,094,349)

 

    38,099,554  
   

 

 

 

Total Investments in Securities — 100.6%
(Cost: $6,734,781,792)

 

    4,817,180,035  

Liabilities in Excess of Other Assets — (0.6)%

 

    (29,208,066
   

 

 

 

Net Assets — 100.0%

 

  $  4,787,971,969  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
08/31/21
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
08/31/22
    Shares
Held at
08/31/22
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 7,962,763     $ 5,253,846 (a)    $     $ (6,626   $ (429   $ 13,209,554       13,205,592     $ 289,200 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    27,350,000             (2,460,000 )(a)                  24,890,000       24,890,000       126,611        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (6,626   $ (429   $ 38,099,554       $ 415,811     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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.

 

 

18  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Eurozone 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

           

Euro STOXX 50 Index

     302        09/16/22      $ 10,644      $ (57,244
           

 

 

 

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)

   $      $      $ 57,244      $      $      $      $ 57,244  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 August 31, 2022, 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

   $      $      $ (2,284,831    $      $      $      $ (2,284,831
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (69,622    $      $      $      $ (69,622
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 14,484,932      

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

                                                                                                   

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Investments

                 

Assets

                 

Common Stocks

   $ 18,768,769        $ 4,686,717,937        $        $ 4,705,486,706  

Preferred Stocks

              73,593,775                   73,593,775  

Money Market Funds

     38,099,554                            38,099,554  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 56,868,323        $ 4,760,311,712        $        $ 4,817,180,035  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $        $ (57,244      $        $ (57,244
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  19


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI Germany ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Aerospace & Defense — 1.6%

   

MTU Aero Engines AG

    62,899     $ 11,093,015  

Rheinmetall AG

    51,273       8,139,330  
   

 

 

 
      19,232,345  
Air Freight & Logistics — 3.5%            

Deutsche Post AG, Registered

    1,166,485       42,575,686  
   

 

 

 
Airlines — 0.4%            

Deutsche Lufthansa AG, Registered(a)(b)

    703,427       4,182,076  
   

 

 

 
Auto Components — 0.6%            

Continental AG

    129,461       7,453,630  
   

 

 

 
Automobiles — 7.3%            

Bayerische Motoren Werke AG

    389,639       28,708,077  

Mercedes-Benz Group AG

    942,989       52,869,328  

Volkswagen AG

    34,742       6,426,243  
   

 

 

 
      88,003,648  
Banks — 0.7%            

Commerzbank AG(a)

    1,252,680       8,335,239  
   

 

 

 
Capital Markets — 4.8%            

Deutsche Bank AG, Registered

    2,432,124       20,290,921  

Deutsche Boerse AG

    223,590       37,803,365  
   

 

 

 
      58,094,286  
Chemicals — 6.1%            

BASF SE

    1,079,240       45,650,613  

Covestro AG(c)

    227,367       6,855,555  

Evonik Industries AG

    246,772       4,601,093  

Symrise AG

    156,261       16,350,243  
   

 

 

 
           73,457,504  
Construction Materials — 0.6%            

HeidelbergCement AG

    170,423       7,695,871  
   

 

 

 
Diversified Telecommunication Services — 6.5%  

Deutsche Telekom AG, Registered

    3,814,920       71,900,673  

Telefonica Deutschland Holding AG

    1,225,139       3,180,392  

United Internet AG, Registered

    114,155       2,582,253  
   

 

 

 
      77,663,318  
Electrical Equipment — 0.6%            

Siemens Energy AG(a)

    513,066       7,546,843  
   

 

 

 
Food & Staples Retailing — 0.4%            

HelloFresh SE(a)

    194,475       4,643,279  
   

 

 

 
Health Care Equipment & Supplies — 1.8%  

Carl Zeiss Meditec AG, Bearer

    47,372       5,895,871  

Siemens Healthineers AG(c)

    331,862       16,216,815  
   

 

 

 
      22,112,686  
Health Care Providers & Services — 1.7%            

Fresenius Medical Care AG & Co. KGaA

    241,377       8,264,598  

Fresenius SE & Co. KGaA

    492,937       12,194,416  
   

 

 

 
      20,459,014  
Household Products — 0.6%            

Henkel AG & Co. KGaA

    122,302       7,648,688  
   

 

 

 
Independent Power and Renewable Electricity Producers — 2.5%  

RWE AG

    755,982       28,861,422  

Uniper SE

    107,134       579,689  
   

 

 

 
      29,441,111  
Security   Shares     Value  

Industrial Conglomerates — 7.6%

   

Siemens AG, Registered

    899,564     $ 91,120,554  
   

 

 

 
Insurance — 10.9%            

Allianz SE, Registered

    480,807       81,273,886  

Hannover Rueck SE

    70,972       10,460,278  

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered

    164,922       39,403,291  
   

 

 

 
      131,137,455  
Interactive Media & Services — 0.5%            

Scout24 SE(c)

    94,395       5,438,382  
   

 

 

 
Internet & Direct Marketing Retail — 1.2%            

Delivery Hero SE(a)(c)

    191,985       7,967,609  

Zalando SE(a)(b)(c)

    262,106       6,068,501  
   

 

 

 
      14,036,110  
IT Services — 0.3%            

Bechtle AG

    96,396       3,692,889  
   

 

 

 
Life Sciences Tools & Services — 1.0%            

QIAGEN NV(a)

    267,524       12,133,952  
   

 

 

 
Machinery — 2.5%            

Daimler Truck Holding AG(a)

    532,652       13,619,293  

GEA Group AG

    178,094       6,195,322  

KION Group AG

    84,926       3,393,375  

Knorr-Bremse AG

    85,377       4,137,789  

Rational AG

    6,030       3,252,347  
   

 

 

 
      30,598,126  
Multi-Utilities — 1.9%            

E.ON SE

    2,642,013       22,535,295  
   

 

 

 
Personal Products — 1.0%            

Beiersdorf AG

    118,634       11,974,915  
   

 

 

 
Pharmaceuticals — 7.2%            

Bayer AG, Registered

    1,154,817       61,075,942  

Merck KGaA

    152,102       26,128,079  
   

 

 

 
      87,204,021  
Real Estate Management & Development — 2.7%  

Aroundtown SA

    1,175,687       3,428,995  

LEG Immobilien SE

    85,735       6,479,313  

Vonovia SE

    843,547       22,836,103  
   

 

 

 
      32,744,411  
Semiconductors & Semiconductor Equipment — 3.1%  

Infineon Technologies AG

    1,537,648       37,624,502  
   

 

 

 
Software — 9.0%            

Nemetschek SE

    67,966       4,003,885  

SAP SE

    1,227,926       104,581,676  
   

 

 

 
         108,585,561  
Textiles, Apparel & Luxury Goods — 3.1%            

adidas AG

    202,997       30,101,030  

Puma SE

    124,245       7,594,299  
   

 

 

 
      37,695,329  
Trading Companies & Distributors — 1.0%  

Brenntag SE

    181,814       11,921,083  
   

 

 

 

Total Common Stocks — 92.7%
(Cost: $1,954,235,556)

 

    1,116,987,809  
   

 

 

 

 

 

20  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Germany ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Preferred Stocks

   
Automobiles — 4.0%            

Bayerische Motoren Werke AG, Preference Shares, NVS

    69,972     $ 4,864,742  

Porsche Automobil Holding SE, Preference Shares, NVS

    180,201       12,705,889  

Volkswagen AG, Preference Shares, NVS

    218,409       31,066,307  
   

 

 

 
      48,636,938  
Household Products — 1.1%            

Henkel AG & Co. KGaA, Preference Shares, NVS

    209,667       13,530,568  
   

 

 

 
Life Sciences Tools & Services — 1.0%            

Sartorius AG, Preference Shares, NVS

    28,653       11,937,561  
   

 

 

 

Total Preferred Stocks — 6.1%
(Cost: $116,989,872)

      74,105,067  
   

 

 

 

Total Long-Term Investments — 98.8%
(Cost: $2,071,225,428)

      1,191,092,876  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.8%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.42%(d)(e)(f)

    8,460,146       8,462,684  
Security   Shares     Value  
Money Market Funds (continued)            

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(d)(e)

    920,000     $ 920,000  
   

 

 

 

Total Short-Term Securities — 0.8%
(Cost: $9,379,853)

      9,382,684  
   

 

 

 

Total Investments in Securities — 99.6%
(Cost: $2,080,605,281)

      1,200,475,560  

Other Assets Less Liabilities — 0.4%

      4,641,959  
   

 

 

 

Net Assets — 100.0%

    $ 1,205,117,519  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
08/31/21
    Purchases
at Cost
    Proceeds
from Sale
   

Net Realized

Gain (Loss)

    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
08/31/22
    Shares
Held at
08/31/22
    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 5,585,515     $ 2,875,738 (a)    $     $ (1,400   $ 2,831     $ 8,462,684       8,460,146     $ 139,757 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    1,620,000             (700,000 )(a)                  920,000       920,000       5,140        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (1,400   $ 2,831     $ 9,382,684       $ 144,897     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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

           

DAX Index

     43        09/16/22      $ 13,848      $ (611,467
           

 

 

 

 

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

  21


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Germany ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
     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)

   $      $      $ 611,467      $      $      $      $ 611,467  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 August 31, 2022, 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

   $      $      $ (3,165,330    $      $      $      $ (3,165,330
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ (736,572    $      $      $      $ (736,572
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 18,242,215     

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $      $ 1,116,987,809      $                 —      $ 1,116,987,809  

Preferred Stocks

            74,105,067               74,105,067  

Money Market Funds

     9,382,684                      9,382,684  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $      9,382,684      $ 1,191,092,876      $      $ 1,200,475,560  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Liabilities

           

Futures Contracts

   $      $ (611,467    $      $ (611,467
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

22  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents

Schedule of Investments   

August 31, 2022

  

iShares® MSCI Italy ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Automobiles — 15.4%            

Ferrari NV

    65,900     $ 12,721,490  

Stellantis NV

    1,293,779       17,233,822  
   

 

 

 
          29,955,312  
Banks — 17.9%            

FinecoBank Banca Fineco SpA

    469,910       5,080,805  

Intesa Sanpaolo SpA

    9,629,554       16,577,181  

Mediobanca Banca di Credito Finanziario SpA

    496,356       3,929,096  

UniCredit SpA

    944,165       9,239,493  
   

 

 

 
      34,826,575  
Beverages — 2.1%            

Davide Campari-Milano NV

    421,643       4,136,675  
   

 

 

 
Diversified Financial Services — 2.6%            

EXOR NV

    83,438       5,023,396  
   

 

 

 
Diversified Telecommunication Services — 2.6%  

Infrastrutture Wireless Italiane SpA(a)

    304,288       2,820,113  

Telecom Italia SpA/Milano(b)(c)

    10,491,782       2,164,025  
   

 

 

 
      4,984,138  
Electric Utilities — 15.6%            

Enel SpA

    4,882,425       22,942,865  

Terna - Rete Elettrica Nazionale

    1,022,771       7,271,095  
   

 

 

 
      30,213,960  
Electrical Equipment — 3.0%            

Prysmian SpA

    191,658       5,880,595  
   

 

 

 
Energy Equipment & Services — 2.6%            

Tenaris SA

    372,270       5,092,462  
   

 

 

 
Gas Utilities — 3.6%            

Snam SpA

    1,472,738       6,999,784  
   

 

 

 
Health Care Equipment & Supplies — 1.6%  

DiaSorin SpA

    22,857       2,998,463  
   

 

 

 
Health Care Providers & Services — 1.5%            

Amplifon SpA

    110,916       2,890,573  
   

 

 

 
Insurance — 6.4%            

Assicurazioni Generali SpA

    603,078       8,845,192  

Poste Italiane SpA(a)

    444,094       3,549,196  
   

 

 

 
      12,394,388  
Security   Shares     Value  
IT Services — 1.9%            

Nexi SpA(a)(b)

    437,502     $ 3,589,480  
   

 

 

 
Machinery — 4.6%            

CNH Industrial NV

    730,341       8,891,950  
   

 

 

 
Oil, Gas & Consumable Fuels — 9.0%            

Eni SpA

    1,473,762       17,409,439  
   

 

 

 
Pharmaceuticals — 1.8%            

Recordati Industria Chimica e Farmaceutica SpA

    87,730       3,579,382  
   

 

 

 
Textiles, Apparel & Luxury Goods — 3.4%            

Moncler SpA

    150,312       6,687,642  
   

 

 

 
Transportation Infrastructure — 4.2%            

Atlantia SpA

    357,910       8,195,588  
   

 

 

 

Total Long-Term Investments — 99.8%
(Cost: $295,031,093)

      193,749,802  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.2%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.42%(d)(e)(f)

    371,957       372,069  

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(d)(e)

    40,000       40,000  
   

 

 

 

Total Short-Term Securities — 0.2%
(Cost: $411,927)

      412,069  
   

 

 

 

Total Investments in Securities — 100.0%
(Cost: $295,443,020)

        194,161,871  

Other Assets Less Liabilities — 0.0%

      86,398  
   

 

 

 

Net Assets — 100.0%

    $ 194,248,269  
   

 

 

 

 

(a) 

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.

(b) 

Non-income producing security.

(c) 

All or a portion of this security is on loan.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
08/31/21
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
   

Change in

Unrealized

Appreciation

(Depreciation)

    Value at
08/31/22
   

Shares

Held at

08/31/22

    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $     $ 372,631 (a)    $     $ (704   $ 142     $ 372,069       371,957     $ 1,680 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    450,000             (410,000 )(a)                  40,000       40,000       946        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (704   $ 142     $ 412,069       $ 2,626     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

 

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

  23


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Italy 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

        

FTSE/MIB Index

     4       09/16/22     $ 431     $ 6,482  
        

 

 

 

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)

   $      $      $ 6,482      $      $      $      $ 6,482  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 August 31, 2022, 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

   $        $        $ (85,809      $        $        $        $ (85,809
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                                

Futures contracts

   $        $        $ 7,720        $        $        $        $ 7,720  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 1,035,339     

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $      $ 193,749,802      $      $ 193,749,802  

Money Market Funds

     412,069                      412,069  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 412,069      $ 193,749,802      $      $ 194,161,871  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $      $ 6,482      $             —      $ 6,482  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

24  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents

Schedule of Investments   

August 31, 2022

  

iShares® MSCI Spain ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Common Stocks

   
Banks — 28.7%            

Banco Bilbao Vizcaya Argentaria SA

    9,393,549     $ 42,150,667  

Banco Santander SA

    23,577,170       57,073,169  

CaixaBank SA

    6,568,641       19,834,018  
   

 

 

 
      119,057,854  
Biotechnology — 1.9%            

Grifols SA(a)

    634,478       7,669,913  
   

 

 

 
Construction & Engineering — 7.2%            

ACS Actividades de Construccion y Servicios SA

    515,710       11,489,798  

Ferrovial SA

    730,557       18,318,637  
   

 

 

 
      29,808,435  
Diversified Telecommunication Services — 8.9%  

Cellnex Telecom SA(b)

    460,871       17,947,569  

Telefonica SA

    4,611,962       19,033,635  
   

 

 

 
      36,981,204  
Electric Utilities — 28.5%            

Acciona SA

    48,472       9,494,028  

Endesa SA

    657,839       11,283,266  

Iberdrola SA

    8,070,686       84,029,528  

Red Electrica Corp. SA

    747,742       13,670,798  
   

 

 

 
          118,477,620  
Electrical Equipment — 2.6%            

Siemens Gamesa Renewable Energy SA(a)

    605,642       10,912,417  
   

 

 

 
Gas Utilities — 4.8%            

Enagas SA

    530,048       9,678,731  

Naturgy Energy Group SA(c)

    366,812       10,114,709  
   

 

 

 
      19,793,440  
IT Services — 4.5%            

Amadeus IT Group SA(a)

    350,140       18,483,672  
   

 

 

 
Oil, Gas & Consumable Fuels — 4.7%            

Repsol SA

    1,499,108       19,470,534  
   

 

 

 
Security   Shares     Value  

 

 
Specialty Retail — 4.1%            

Industria de Diseno Textil SA

    790,994     $ 17,078,690  
   

 

 

 
Transportation Infrastructure — 3.8%            

Aena SME SA(a)(b)

    129,631       15,921,494  
   

 

 

 

Total Long-Term Investments — 99.7%
(Cost: $630,021,215)

      413,655,273  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.9%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 2.42%(d)(e)(f)

    786,222       786,458  

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(d)(e)

    2,900,000       2,900,000  
   

 

 

 

Total Short-Term Securities — 0.9%
(Cost: $3,686,282)

      3,686,458  
   

 

 

 

Total Investments in Securities — 100.6%
(Cost: $633,707,497)

      417,341,731  

Liabilities in Excess of Other Assets — (0.6)%

 

    (2,286,168
   

 

 

 

Net Assets — 100.0%

    $   415,055,563  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(c) 

All or a portion of this security is on loan.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

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

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
08/31/21
    Purchases
at Cost
    Proceeds
from Sale
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
08/31/22
    Shares
Held at
08/31/22
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $     $ 787,448 (a)    $     $ (1,166   $ 176     $ 786,458       786,222     $ 230,734 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    3,290,000             (390,000 )(a)                  2,900,000       2,900,000       15,081        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (1,166   $ 176     $ 3,686,458       $ 245,815     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

 

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

  25


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Spain 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

                 

IBEX 35 Index

     21          09/16/22        $ 1,661        $ (89,619
                 

 

 

 

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)

   $      $      $ 89,619      $      $      $      $ 89,619  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 August 31, 2022, 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

   $      $              $ (33,140    $      $      $      $ (33,140
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                     

Futures contracts

   $      $       $ (87,515    $      $      $      $ (87,515
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts

  

Average notional value of contracts — long

   $ 1,214,780        

 

 

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

Fair Value Hierarchy as of Period End

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

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

 

                                                                                   

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Investments

                 

Assets

                 

Common Stocks

   $        $ 413,655,273        $        $ 413,655,273  

Money Market Funds

     3,686,458                            3,686,458  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 3,686,458        $ 413,655,273        $        $ 417,341,731  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $        $ (89,619      $             —        $ (89,619
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

26  

2 0 2 2   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Table of Contents

Schedule of Investments

August 31, 2022

  

iShares® MSCI Switzerland ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Building Products — 1.4%            

Geberit AG, Registered

    40,132     $ 18,542,794  
   

 

 

 
Capital Markets — 8.1%            

Credit Suisse Group AG, Registered

    3,089,254       15,940,930  

Julius Baer Group Ltd.

    270,330       13,062,259  

Partners Group Holding AG

    24,537       23,684,424  

UBS Group AG, Registered

    3,553,832       56,316,567  
   

 

 

 
      109,004,180  
Chemicals — 5.8%            

Clariant AG, Registered(a)

    360,547       6,656,896  

EMS-Chemie Holding AG, Registered

    10,573       7,424,751  

Givaudan SA, Registered

    9,667       30,843,287  

Sika AG, Registered

    151,378       34,059,247  
   

 

 

 
      78,984,181  
Construction Materials — 1.9%            

Holcim AG

    590,958       26,194,509  
   

 

 

 
Containers & Packaging — 0.7%            

SIG Group AG

    405,183       9,525,427  
   

 

 

 
Diversified Telecommunication Services — 1.1%  

Swisscom AG, Registered

    30,226       15,627,744  
   

 

 

 
Electrical Equipment — 3.4%            

ABB Ltd., Registered

    1,672,146       46,090,389  
   

 

 

 
Food Products — 23.7%            

Barry Callebaut AG, Registered

    4,757       9,733,461  

Chocoladefabriken Lindt & Spruengli AG, Participation

   

Certificates, NVS

    1,305       13,802,157  

Chocoladefabriken Lindt & Spruengli AG, Registered

    130       14,156,204  

Nestle SA, Registered

    2,416,513       282,787,424  
   

 

 

 
      320,479,246  
Health Care Equipment & Supplies — 4.8%            

Alcon Inc.

    519,448       34,201,986  

Sonova Holding AG, Registered

    61,256       16,139,337  

Straumann Holding AG, Registered

    131,316       14,389,967  
   

 

 

 
      64,731,290  
Insurance — 8.6%            

Baloise Holding AG, Registered

    62,154       8,969,984  

Swiss Life Holding AG, Registered

    35,559       18,585,865  

Swiss Re AG

    325,605       25,317,632  

Zurich Insurance Group AG

    141,830       62,958,243  
   

 

 

 
      115,831,724  
Life Sciences Tools & Services — 3.4%            

Bachem Holding AG, Class A

    75,500       5,228,122  

Lonza Group AG, Registered

    76,521       40,810,157  
   

 

 

 
      46,038,279  
Machinery — 1.8%            

Schindler Holding AG, Participation Certificates, NVS

    54,857       9,556,459  
Security   Shares     Value  
Machinery (continued)            

Schindler Holding AG, Registered

    38,826     $ 6,557,349  

VAT Group AG(b)

    36,824       8,804,857  
   

 

 

 
      24,918,665  
Marine — 1.1%            

Kuehne + Nagel International AG, Registered

    63,403       14,653,128  
   

 

 

 
Pharmaceuticals — 23.9%            

Novartis AG, Registered

    1,679,914       135,884,920  

Roche Holding AG, NVS

    572,907       184,614,329  

Roche Holding AG, Bearer

    5,312       2,028,963  
   

 

 

 
      322,528,212  
Professional Services — 1.8%            

Adecco Group AG, Registered

    241,920       7,668,995  

SGS SA, Registered

    7,334       16,150,814  
   

 

 

 
      23,819,809  
Real Estate Management & Development — 0.7%  

Swiss Prime Site AG, Registered

    105,436       9,067,711  
   

 

 

 
Software — 0.6%            

Temenos AG, Registered

    96,079       7,868,302  
   

 

 

 
Technology Hardware, Storage & Peripherals — 0.8%  

Logitech International SA, Registered

    219,216       10,907,295  
   

 

 

 
Textiles, Apparel & Luxury Goods — 5.4%            

Cie. Financiere Richemont SA, Class A, Registered

    527,035       58,937,493  

Swatch Group AG (The), Bearer

    39,286       9,526,670  

Swatch Group AG (The), Registered

    113,368       5,155,838  
   

 

 

 
      73,620,001  
   

 

 

 

Total Long-Term Investments — 99.0%
(Cost: $1,405,849,477)

      1,338,432,886  
   

 

 

 

Short-Term Securities

   
Money Market Funds — 0.0%            

BlackRock Cash Funds: Treasury, SL Agency Shares, 2.07%(c)(d)

    50,000       50,000  
   

 

 

 

Total Short-Term Securities — 0.0%
(Cost: $50,000)

      50,000  
   

 

 

 

Total Investments in Securities — 99.0%
(Cost: $1,405,899,477)

      1,338,482,886  

Other Assets Less Liabilities — 1.0%

      13,325,613  
   

 

 

 

Net Assets — 100.0%

    $ 1,351,808,499  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

 

 

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

  27


Table of Contents

Schedule of Investments   (continued)

August 31, 2022

  

iShares® MSCI Switzerland ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: