LOGO

  APRIL 30, 2022

 

 

    

  

2022 Annual Report

 

 

iShares Trust

 

·

 

iShares Cohen & Steers REIT ETF | ICF | Cboe BZX

·

 

iShares Core U.S. REIT ETF | USRT | NYSE Arca

·

 

iShares Global REIT ETF | REET | NYSE Arca

·

 

iShares International Developed Real Estate ETF | IFGL | NASDAQ

 


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of April 30, 2022 saw the emergence of significant challenges that disrupted the economic recovery and strong financial markets which characterized 2021. The U.S. economy shrank in the first quarter of 2022, ending the run of robust growth which followed reopening and the development of the COVID-19 vaccines. Rapid changes in consumer spending led to supply constraints and 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 invasion has presented challenges for both investors and policymakers.

Equity prices were mixed but mostly down, as persistently high inflation drove investors’ expectations for higher interest rates, particularly weighing on relatively high valuation growth stocks and economically sensitive small-capitalization stocks. Overall, small-capitalization U.S. stocks declined, while large-capitalization U.S. stocks were nearly flat. 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 during the reporting period as increasing inflation drove investors’ expectations for higher interest rates. 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 in March 2022, the first increase of this business cycle. Furthermore, the Fed wound down its bond-buying programs and raised the prospect of reversing the flow and reducing its balance sheet. Continued high inflation and the Fed’s new tone led many analysts to anticipate that the Fed will continue to raise interest rates multiple times throughout the year.

Looking ahead, however, the horrific war in Ukraine has significantly clouded the outlook for the global economy, leading to major volatility in energy and metal markets. Sanctions on Russia, Europe’s top energy supplier, and general wartime disruption are likely to drive already-high commodity prices even higher. We believe sharp increases in energy prices will exacerbate inflationary pressure while also constraining economic growth. Combating inflation without stifling a recovery, while buffering against ongoing supply and price shocks amid the ebb and flow of the pandemic, 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 err on the side of protecting employment, even at the expense of higher inflation.

In this environment, we favor an overweight to equities, as valuations have become more attractive and inflation-adjusted interest rates remain low. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and healthcare, are particularly attractive in the long term. We favor U.S. equities due to strong earnings momentum, while Japanese equities should benefit from supportive monetary and fiscal policy. We are underweight credit overall, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities for additional yield. We believe that international diversification and a focus on sustainability and quality can help provide portfolio resilience.

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.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of April 30, 2022  
     
     6-Month     12-Month  
   

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

    (9.65)%       0.21%  
   

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

    (18.38)          (16.87)    
   

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

    (11.80)          (8.15)    
   

Emerging market equities
(MSCI Emerging Markets Index)

    (14.15)          (18.33)    
   

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

    0.07           0.08     
   

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

    (10.29)          (8.86)    
   

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

    (9.47)          (8.51)    
   

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

    (7.90)          (7.88)    
   

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

    (7.40)          (5.22)    
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

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


Table of Contents

 

      Page  

The Markets in Review

     2  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     13  

Shareholder Expenses

     13  

Schedules of Investments

     14  

Financial Statements

  

Statements of Assets and Liabilities

     30  

Statements of Operations

     31  

Statements of Changes in Net Assets

     32  

Financial Highlights

     34  

Notes to Financial Statements

     38  

Report of Independent Registered Public Accounting Firm

     47  

Important Tax Information (Unaudited)

     48  

Statement Regarding Liquidity Risk Management Program

     49  

Supplemental Information

     50  

Trustee and Officer Information

     51  

General Information

     54  

Glossary of Terms Used in this Report

     55  


Market Overview

 

iShares Trust

Global Market Overview

Global equity markets declined during the 12 months ended April 30, 2022 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned -5.44% in U.S. dollar terms for the reporting period.

In the first half of the reporting period, stocks were supported by economic recovery 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, significant challenges emerged in the second half of the reporting period, erasing earlier gains. 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 markets in important commodities such as oil, natural gas, and wheat.

The U.S. economy grew briskly over the final three quarters of 2021, powered primarily by consumers with strong household balance sheets. Record-high personal savings rates allowed consumers to spend at an elevated level throughout much of the reporting period, releasing pent-up demand for goods and services. Hiring increased as businesses restored capacity, and unemployment decreased substantially, falling to 3.6% in April 2022 — only marginally higher than the pre-pandemic rate of 3.5% in February 2020. However, the economy contracted in the first quarter of 2022 amid lower inventory investment and an inflation-driven decline in consumer sentiment.

Rising inflation led to a shift in policy from the U.S. Federal Reserve Bank (“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 in the second half of the reporting period in an attempt to prevent runaway inflation. The Fed slowed and then ended its bond-buying activities and discussed plans to begin reducing its balance sheet by selling bonds later in 2022. In March 2022, it raised short-term interest rates and indicated that further increases could be necessary. Interest rates rose significantly in anticipation of further tightening, leading to higher borrowing costs for businesses.

Stocks declined in Europe and economic growth stalled, with the Eurozone economy slowing substantially in the second half of the reporting period. 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 against Russia 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”) maintained ultra-low interest rates but started to wind down its bond buying program.

Despite relatively low inflation by global standards, Asia-Pacific stocks declined significantly. Chinese stocks endured substantial declines, driving much of the negative performance in the region. Regulatory interventions by the Chinese government weighed on equity markets, particularly in the information technology sector. While China’s economy continued to expand at a solid pace, COVID-19 cases rose sharply late in the reporting period, and analysts became concerned that the subsequent lockdowns would constrain growth.

 

 

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Fund Summary as of April 30, 2022    iShares® Cohen & Steers REIT ETF

 

Investment Objective

The iShares Cohen & Steers REIT ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. real estate investment trusts (REITs), as represented by the Cohen & Steers Realty Majors 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

    11.33      9.36      8.92        11.33     56.45     134.98

Fund Market

    11.33        9.37        8.92          11.33       56.50       135.04  

Index

    11.71        9.76        9.31                11.71       59.28       143.56  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 13 for more information.

Expense Example

 

  Actual         Hypothetical 5% Return       
 

Beginning
Account Value
(11/01/21)
 
 
 
      

Ending
Account Value
(04/30/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(11/01/21)
 
 
 
      

Ending
Account Value
(04/30/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

    Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $        983.30          $        1.57               $      1,000.00          $      1,023.20          $        1.61          0.32

 

  (a)

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

 

 

 

U N D  U M M A R Y

  5


Fund Summary as of April 30, 2022 (continued)    iShares® Cohen & Steers REIT ETF

 

Portfolio Management Commentary

Real estate investment trusts (“REITs”) advanced during the reporting period, benefiting from increased need for warehouses and storage space resulting from supply chain disruptions and the coronavirus pandemic. Industrial REITs that own and operate warehouses contributed the most to the Index’s return. Demand for warehouse space grew throughout 2021 as supply chain disruptions arising from the pandemic created a need for additional space to store a backlog of goods, supporting sharp rental price increases. Shifting consumer buying trends toward e-commerce and away from brick-and-mortar stores also added to growing demand for warehouse space, and occupancy rates at warehouses soared to record highs. Regulatory hurdles preventing the building of new warehouses in urban or suburban areas close to consumers limited the supply of new units.

Specialized REITs, particularly those involved in self-storage, also contributed to the Index. The COVID-19 pandemic encouraged Americans to declutter as they increasingly worked, studied, and exercised at home. To make room for home offices and gyms, people turned to self-storage rental units to store excess items. Growing demand for storage space helped reduce the excess supply of rental units that existed prior to the pandemic, which led to significant price increases and record occupancy rates. The positive environment meant that profits and revenues from self-storage companies exceeded analysts’ expectations.

Residential REITs, most notably those invested in apartment buildings, also contributed to the Index’s performance. Revenues and lease rates grew sharply in 2021 as renters returned to urban areas and the impact from the pandemic eased. In addition, as housing prices climbed higher, many potential homebuyers continued to rent rather than buy. Limited growth in new apartment buildings kept supply tight, which supported rental price increases.

Portfolio Information

 

ALLOCATION BY SECTOR

 

 

Sector

   
Percent of
Total Investments
 
(a) 

Specialized REITs

    43.4

Residential REITs

    19.2  

Industrial REITs

    10.6  

Retail REITs

    10.5  

Health Care REITs

    8.7  

Office REITs

    6.0  

Hotel & Resort REITs

    1.6  

TEN LARGEST HOLDINGS

 

 

Security

   
Percent of
Total Investments
 
(a) 

Prologis Inc.

    8.3

Crown Castle International Corp.

    8.2  

American Tower Corp.

    7.8  

Equinix Inc.

    7.1  

Public Storage

    6.2  

Digital Realty Trust Inc.

    4.5  

Welltower Inc.

    4.3  

Realty Income Corp.

    4.3  

Simon Property Group Inc.

    4.2  

SBA Communications Corp.

    4.1  

 

  (a)

Excludes money market funds.

 

 

 

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Fund Summary as of April 30, 2022    iShares® Core U.S. REIT ETF

 

Investment Objective

The iShares Core U.S. REIT ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. real estate equities, as represented by the FTSE Nareit Equity REITs 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

    11.82      8.59      8.53       11.82      50.98      126.69

Fund Market

    11.93        8.60        8.54         11.93        51.08        126.88  

Index

    11.92        8.62        8.77               11.92        51.23        131.71  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Index performance through November 2, 2016 reflects the performance of the FTSE NAREIT Real Estate 50 Index. Index performance beginning on November 3, 2016 reflects the performance of the FTSE Nareit Equity REITS Index.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 13 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(11/01/21)
 
 
 
      

Ending
Account Value
(04/30/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(11/01/21)
 
 
 
      

Ending
Account Value
(04/30/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      993.00          $        0.40               $      1,000.00          $       1,024.40          $        0.40          0.08

 

  (a)

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

 

 

 

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  7


Fund Summary as of April 30, 2022 (continued)    iShares® Core U.S. REIT ETF

 

Portfolio Management Commentary

Real estate investment trusts (“REITs”) advanced during the reporting period, benefiting from increased need for warehouses and storage space amid supply chain disruptions and the coronavirus pandemic. REITs’ dividend payouts and growth potential attracted investors concerned about inflation and in search of an alternative to the low yields offered by bonds.

Industrial REITs that own and operate warehouses contributed the most to the Index’s return. Demand for warehouse space grew throughout 2021 as supply chain disruptions arising from the pandemic created a need for additional space to store a backlog of goods, supporting sharp rental price increases. Shifting consumer buying trends toward e-commerce and away from brick-and-mortar stores also added to growing demand for warehouse space, and occupancy rates at warehouses soared to record highs. Regulatory hurdles preventing the building of new warehouses in urban or suburban areas close to consumers limited the supply of new units.

Specialized REITs, particularly those involved in self-storage, also contributed to the Index. The COVID-19 pandemic encouraged Americans to declutter as they increasingly worked, studied, and exercised at home. To make room for home offices and gyms, people turned to self-storage rental units to store excess items. Growing demand for storage space helped reduce the excess supply of rental units that existed prior to the pandemic, which led to significant price increases and record occupancy rates. The positive environment meant that profits and revenues from self-storage companies exceeded analysts’ expectations.

Residential REITs, most notably those invested in apartment buildings, also contributed to the Index’s performance. Revenues and lease rates grew sharply in 2021 as renters returned to urban areas and the impact from the pandemic eased.

Portfolio Information

 

ALLOCATION BY SECTOR

 

 
   

Sector

   

Percent of

Total Investments

 

(a) 

Specialized REITs

    23.4

Residential REITs

    20.0  

Industrial REITs

    16.1  

Retail REITs

    14.2  

Health Care REITs

    10.2  

Office REITs

    8.8  

Hotel & Resort REITs

    3.7  

Diversified REITs

    3.6  

TEN LARGEST HOLDINGS

 

 
   

Security

   

Percent of

Total Investments

 

(a) 

Prologis Inc.

    10.0

Equinix Inc.

    5.4  

Public Storage

    4.7  

Digital Realty Trust Inc.

    3.5  

Welltower Inc.

    3.3  

Realty Income Corp.

    3.3  

Simon Property Group Inc.

    3.2  

AvalonBay Communities Inc.

    2.7  

Alexandria Real Estate Equities Inc.

    2.6  

Equity Residential

    2.5  

 

  (a)

Excludes money market funds.

 

 

 

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Fund Summary as of April 30, 2022    iShares® Global REIT ETF

 

Investment Objective

The iShares Global REIT ETF (the “Fund”) seeks to track the investment results of an index composed of global real estate equities in developed and emerging markets, as represented by the FTSE EPRA Nareit Global REITS 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    

Since

Inception

           1 Year      5 Years      Since
Inception
 

Fund NAV

    5.14      6.11     5.69       5.14      34.52      54.14

Fund Market

    4.83        6.03       5.65         4.83        33.98        53.65  

Index

    4.80        5.30       4.92               4.80        29.43        45.54  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

The inception date of the Fund was 7/8/14. The first day of secondary market trading was 7/10/14.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 13 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(11/01/21)
 
 
 
      

Ending
Account Value
(04/30/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(11/01/21)
 
 
 
      

Ending
Account Value
(04/30/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      965.90          $      0.68               $      1,000.00          $      1,024.10          $      0.70          0.14

 

  (a)

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

 

 

 

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  9


Fund Summary as of April 30, 2022 (continued)    iShares® Global REIT ETF

 

Portfolio Management Commentary

Global real estate investment trusts (“REITs”) advanced modestly during the reporting period, benefiting from surging property values as global economies rebounded from the coronavirus pandemic. Industrial REITs contributed the most to the Index’s return, driven primarily by U.S. REITs that own and operate warehouses. Demand for warehouse space grew throughout 2021 as supply chain disruptions due to the pandemic created a need for space to store a backlog of goods, supporting sharp rental price increases. Shifting consumer buying trends toward e-commerce and away from brick-and-mortar stores also added to growing demand for warehouses. Occupancy rates at warehouses soared to record highs, while rents continued to grow. Regulatory hurdles preventing the building of new warehouses in urban or suburban areas close to consumers constrained the supply of new units and limited competition. Industrial REITs in Canada and the U.K. added marginally to the Index’s performance.

U.S. residential REITs, most notably those invested in apartment buildings, contributed substantially to the Index’s performance. Revenues and lease rates grew sharply in 2021 as renters returned to urban areas as the impact from the pandemic subsided. In addition, as housing prices climbed higher, many potential homebuyers continued to rent rather than buy. Rising interest rates sent mortgage rates climbing to their highest level since 2009, leading home mortgage applications to drop sharply near the end of the reporting period. Limited growth in new apartment buildings kept supply tight, which supported rental price increases. In addition, high occupancy rates in apartment complexes also allowed landlords to raise rents.

On the downside, Japanese REITs that invest in office buildings detracted from the Index’s return. The pandemic resulted in many workers choosing to work from home, lessening the demand for office space in central Tokyo and other urban areas. Many Japanese companies moved their offices out of urban areas to more suburban areas to be closer to their employees’ homes and offer a more appealing alternative to working from home.

Portfolio Information

 

ALLOCATION BY SECTOR

 

 
   

Sector

   
Percent of
Total Investments
 
(a) 

Industrial REITs

    18.1

Retail REITs

    17.1  

Residential REITs

    16.5  

Specialized REITs

    16.2  

Office REITs

    10.9  

Diversified REITs

    9.7  

Health Care REITs

    8.4  

Hotel & Resort REITs

    3.1  

Real Estate Operating Companies

    0.0  

TEN LARGEST GEOGRAPHIC ALLOCATION

 

 
   

Country/Geographic Region

   
Percent of
Total Investments
 
(a) 

United States

    71.1

Japan

    6.8  

United Kingdom

    5.0  

Australia

    4.1  

Singapore

    3.2  

Canada

    3.1  

France

    1.5  

Hong Kong

    1.3  

Belgium

    1.2  

South Africa

    0.6  

 

  (a)

Excludes money market funds.

 

 

 

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Fund Summary  as of April 30, 2022    iShares® International Developed Real Estate ETF

 

Investment Objective

The iShares International Developed Real Estate ETF (the “Fund”) seeks to track the investment results of an index composed of real estate equities in developed non-U.S. markets, as represented by the FTSE EPRA Nareit Developed ex-U.S. 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

    (9.24 )%       2.41      4.10       (9.24 )%       12.65      49.40

Fund Market

    (9.38      2.36        4.06         (9.38      12.36        48.89  

Index

    (8.57      2.70        4.42               (8.57      14.24        54.04  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 13 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(11/01/21)
 
 
 
      

Ending
Account Value
(04/30/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(11/01/21)
 
 
 
      

Ending
Account Value
(04/30/22)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $        880.10          $        2.42               $      1,000.00          $      1,022.20          $        2.61          0.52

 

  (a) 

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

 

 

 

U N D  U M M A R Y

  11


Fund Summary  as of April 30, 2022 (continued)    iShares® International Developed Real Estate ETF

 

Portfolio Management Commentary

International developed real estate stocks declined during the reporting period, as the strengthening U.S. dollar and rising interest rates weakened investment returns in foreign markets. The Japanese yen hit a 20-year low against the U.S. dollar late in the reporting period and the euro dropped to a five-year low as the Fed signaled a more aggressive approach to fight soaring inflation by raising interest rates. Higher interest rates tend to weaken the performance of real estate investment trusts (“REITs”). As interest rates rise, the costs of borrowing money and refinancing debt also escalates. In addition, higher interest rates increase the attractiveness of investments such as government and corporate bonds relative to REITs.

Japanese equity REITs detracted the most from the Index’s return, led by office REITs. Vacancies in Tokyo office towers rose through most of 2021. The coronavirus pandemic led many workers to choose to work from home, lessening the demand for office space in core urban areas such as central Tokyo. Many Japanese companies moved their offices out of urban areas to nearby suburbs to be closer to their employees’ homes and offer a more appealing alternative to working from home. Japanese diversified REITs also declined. Although demand increased for logistics and data centers, driven by growth in online shopping and remote work, land costs also rose. The Japanese yen’s significant depreciation relative to the U.S. dollar further weighed on performance for U.S. investors.

German real estate management and development companies detracted from the Index’s performance, as these companies posted weaker profits and decreased dividends payable to shareholders. Inflationary pressures and the risk of rising interest rates in Germany also weakened the outlook for the real estate sector. The ECB announced late in the reporting period that it will wait until late 2022 to raise interest rates despite soaring inflation.

On the upside, Canadian equity REITs contributed slightly to the Index’s return. The trend toward e-commerce increased demand for warehouses and logistics centers to store goods close to consumers.

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector

   
Percent of
Total Investments
 
(a) 

Real Estate Operating Companies

    22.4

Retail REITs

    15.6  

Diversified REITs

    13.5  

Industrial REITs

    13.4  

Diversified Real Estate Activities

    11.9  

Office REITs

    9.7  

Residential REITs

    4.7  

Real Estate Development

    3.4  

Health Care REITs

    2.1  

Specialized REITs

    1.9  

Hotel & Resort REITs

    1.1  

Health Care Facilities

    0.3  

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region

   
Percent of
Total Investments
 
(a) 

Japan

    23.8

Hong Kong

    12.3  

United Kingdom

    12.0  

Australia

    9.6  

Singapore

    8.6  

Canada

    7.7  

Germany

    7.5  

Sweden

    5.2  

France

    3.4  

Belgium

    3.0  

 

  (a) 

Excludes money market funds.

 

 

 

12  

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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. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

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

Shareholder Expenses

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

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

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

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

 

 

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

  13


Schedule of Investments  

April 30, 2022

  

iShares® Cohen & Steers REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Health Care REITs — 8.6%            

Healthpeak Properties Inc.

    1,615,818     $ 53,014,988  

Ventas Inc.

    1,196,493       66,465,186  

Welltower Inc.

    1,304,696       118,479,444  
   

 

 

 
      237,959,618  
Hotel & Resort REITs — 1.6%            

Host Hotels & Resorts Inc.

    2,140,253       43,554,149  
   

 

 

 
Industrial REITs — 10.6%            

Duke Realty Corp.

    1,141,562       62,500,520  

Prologis Inc.

    1,431,059       229,384,447  
   

 

 

 
      291,884,967  
Office REITs — 6.0%            

Alexandria Real Estate Equities Inc.

    422,686       76,996,482  

Boston Properties Inc.

    426,077       50,106,655  

Cousins Properties Inc.

    447,582       16,068,194  

Kilroy Realty Corp.

    314,176       21,992,320  
   

 

 

 
      165,163,651  
Residential REITs — 19.2%            

AvalonBay Communities Inc.

    418,861       95,282,500  

Equity LifeStyle Properties Inc.

    512,431       39,600,668  

Equity Residential

    1,022,909       83,367,083  

Essex Property Trust Inc.

    195,095       64,238,931  

Invitation Homes Inc.

    1,788,760       71,228,423  

Mid-America Apartment Communities Inc.

    345,115       67,877,218  

Sun Communities Inc.

    347,612       61,030,239  

UDR Inc.

    871,151       46,353,945  
   

 

 

 
      528,979,007  
Retail REITs — 10.5%            

Federal Realty Investment Trust

    209,849       24,564,924  

Realty Income Corp.

    1,695,828       117,622,630  

Regency Centers Corp.

    461,876       31,790,925  
Security          Shares      Value  
Retail REITs (continued)                   

Simon Property Group Inc.

      984,981      $ 116,227,758  
      

 

 

 
         290,206,237  
Specialized REITs — 43.4%                   

American Tower Corp.

      891,342        214,831,249  

Crown Castle International Corp.

      1,218,266        225,635,046  

Digital Realty Trust Inc.

      850,625        124,293,325  

Equinix Inc.

      269,890        194,072,501  

Extra Space Storage Inc.

      401,329        76,252,510  

Public Storage

      457,281        169,879,891  

SBA Communications Corp.

      326,061        113,179,034  

VICI Properties Inc.

      2,524,678        75,260,651  
      

 

 

 
         1,193,404,207  
      

 

 

 

Total Common Stocks — 99.9%
(Cost: $2,177,555,957)

 

       2,751,151,836  
      

 

 

 

Short-Term Investments

 

    
Money Market Funds — 0.2%               

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.34%(a)(b)

 

    5,220,000        5,220,000  
      

 

 

 

Total Short-Term Investments — 0.2%
(Cost: $5,220,000)

 

       5,220,000  
      

 

 

 

Total Investments in Securities — 100.1%
(Cost: $2,182,775,957)

 

     2,756,371,836  

Other Assets, Less Liabilities — (0.1)%

 

       (2,934,721
      

 

 

 

Net Assets — 100.0%

 

     $   2,753,437,115  
      

 

 

 

 

(a) 

Affiliate of the Fund.

(b) 

Annualized 7-day yield as of period end.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
04/30/22
    Shares
Held at
04/30/22
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash
Funds: Institutional,
SL Agency Shares(a)

  $     $ 0 (b)     $     $     $     $           $ 1,589 (c)    $  

BlackRock Cash
Funds: Treasury,
SL Agency Shares

    4,130,000       1,090,000 (b)                        5,220,000       5,220,000       1,596        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $     $     $ 5,220,000       $ 3,185     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

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

 
  (b) 

Represents net amount purchased (sold).

 
  (c) 

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

 

 

 

14  

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Schedule of Investments  (continued)

April 30, 2022

  

iShares® Cohen & Steers REIT 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

                 

Dow Jones U.S. Real Estate Index

     61          06/17/22        $ 2,453        $ 48,104  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 48,104  
  

 

 

 

 

  (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 April 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 816,422  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (349,539
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 2,674,554  

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

   $ 2,751,151,836        $        $        $ 2,751,151,836  

Money Market Funds

     5,220,000                            5,220,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,756,371,836        $             —        $             —        $ 2,756,371,836  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 48,104        $        $        $ 48,104  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

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

 

See notes to financial statements.

 

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

  15


Schedule of Investments  

April 30, 2022

  

iShares® Core U.S. REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Diversified REITs — 3.5%            

Alexander & Baldwin Inc.

    140,382     $ 2,976,098  

Alpine Income Property Trust Inc.

    19,491       364,482  

American Assets Trust Inc.

    96,649       3,537,353  

Armada Hoffler Properties Inc.

    128,724       1,744,210  

Broadstone Net Lease Inc.

    303,595       6,281,381  

Empire State Realty Trust Inc., Class A

    274,854       2,374,739  

Essential Properties Realty Trust Inc.

    233,919       5,614,056  

Gladstone Commercial Corp.

    70,984       1,493,503  

Global Net Lease Inc.

    202,118       2,835,715  

One Liberty Properties Inc.

    31,325       897,461  

PS Business Parks Inc.

    38,748       7,253,626  

STORE Capital Corp.

    474,832       13,499,474  

Washington Real Estate Investment Trust

    163,693       3,943,364  

WP Carey Inc.

    367,431       29,677,402  
   

 

 

 
      82,492,864  
Health Care REITs — 10.2%            

CareTrust REIT Inc.

    186,938       3,030,265  

Community Healthcare Trust Inc.

    45,569       1,677,851  

Diversified Healthcare Trust

    459,810       1,034,572  

Global Medical REIT Inc.

    114,809       1,694,581  

Healthcare Realty Trust Inc.

    285,319       7,726,439  

Healthcare Trust of America Inc., Class A

    422,931       12,882,478  

Healthpeak Properties Inc.

    1,048,137       34,389,375  

LTC Properties Inc.

    75,520       2,492,160  

Medical Properties Trust Inc.

    1,148,782       21,126,101  

National Health Investors Inc.

    84,544       4,356,552  

Omega Healthcare Investors Inc.

    463,786       11,817,267  

Physicians Realty Trust

    425,123       7,286,608  

Sabra Health Care REIT Inc.

    441,057       5,151,546  

Universal Health Realty Income Trust

    24,790       1,244,210  

Ventas Inc.

    774,798       43,040,029  

Welltower Inc.

    846,813       76,899,089  
   

 

 

 
      235,849,123  
Hotel & Resort REITs — 3.7%            

Apple Hospitality REIT Inc.

    413,531       7,315,363  

Ashford Hospitality Trust Inc.(a)(b)

    32,550       229,477  

Braemar Hotels & Resorts Inc.

    112,223       680,071  

Chatham Lodging Trust(a)

    92,674       1,330,799  

DiamondRock Hospitality Co.(a)

    404,289       4,293,549  

Hersha Hospitality Trust, Class A(a)

    62,120       607,534  

Host Hotels & Resorts Inc.(b)

    1,374,444       27,969,935  

Park Hotels & Resorts Inc.

    456,760       9,002,740  

Pebblebrook Hotel Trust(b)

    251,045       6,130,519  

RLJ Lodging Trust

    319,587       4,480,610  

Ryman Hospitality Properties Inc.(a)(b)

    103,910       9,713,507  

Service Properties Trust

    326,083       2,647,794  

Summit Hotel Properties Inc.(a)

    199,519       1,969,253  

Sunstone Hotel Investors Inc.(a)

    420,464       5,150,684  

Xenia Hotels & Resorts Inc.(a)

    220,239       4,248,410  
   

 

 

 
      85,770,245  
Industrial REITs — 16.0%            

Americold Realty Trust

    518,424       13,676,025  

Duke Realty Corp.

    739,121       40,466,875  

EastGroup Properties Inc.

    78,050       14,634,375  

First Industrial Realty Trust Inc.

    250,068       14,503,944  

Indus Realty Trust Inc

    11,002       786,093  

Industrial Logistics Properties Trust

    125,293       2,024,735  

LXP Industrial Trust

    538,988       6,764,299  
Security   Shares     Value  
Industrial REITs (continued)            

Plymouth Industrial REIT Inc.

    60,219     $ 1,452,482  

Prologis Inc.

    1,434,514       229,938,249  

Rexford Industrial Realty Inc.

    312,340       24,375,013  

STAG Industrial Inc.

    345,965       12,911,414  

Terreno Realty Corp.(b)

    142,421       10,361,128  
   

 

 

 
      371,894,632  
Office REITs — 8.8%            

Alexandria Real Estate Equities Inc.

    323,772       58,978,308  

Boston Properties Inc.

    303,525       35,694,540  

Brandywine Realty Trust

    328,099       3,828,915  

City Office REIT Inc.

    81,916       1,215,634  

Corporate Office Properties Trust

    218,153       5,822,504  

Cousins Properties Inc.

    288,098       10,342,718  

Creative Media & Community Trust Corp.

    33,787       238,874  

Douglas Emmett Inc.

    323,316       9,524,889  

Easterly Government Properties Inc.

    167,642       3,193,580  

Franklin Street Properties Corp., Class C

    196,945       1,016,236  

Highwoods Properties Inc.

    199,886       8,163,344  

Hudson Pacific Properties Inc.

    287,628       6,695,980  

JBG SMITH Properties

    237,240       6,253,646  

Kilroy Realty Corp.

    225,632       15,794,240  

Office Properties Income Trust

    92,023       1,989,537  

Orion Office REIT Inc.

    110,121       1,477,824  

Paramount Group Inc.

    361,228       3,435,278  

Piedmont Office Realty Trust Inc., Class A

    239,792       3,860,651  

Postal Realty Trust Inc., Class A

    33,206       558,857  

SL Green Realty Corp.

    131,547       9,105,683  

Veris Residential Inc.(a)

    169,354       2,711,358  

Vornado Realty Trust

    341,036       13,201,504  
   

 

 

 
      203,104,100  
Residential REITs — 19.9%            

American Campus Communities Inc.

    266,096       17,208,428  

American Homes 4 Rent, Class A

    572,298       22,668,724  

Apartment Income REIT Corp.

    303,723       14,934,060  

Apartment Investment & Management Co., Class A(a)

    291,597       1,837,061  

AvalonBay Communities Inc.

    271,070       61,663,004  

Bluerock Residential Growth REIT Inc., Class A

    51,222       1,363,017  

BRT Apartments Corp.

    21,724       475,538  

Camden Property Trust

    192,167       30,149,081  

Centerspace

    27,705       2,556,063  

Clipper Realty Inc.

    23,349       208,507  

Equity LifeStyle Properties Inc.

    343,955       26,580,842  

Equity Residential

    716,669       58,408,524  

Essex Property Trust Inc.

    125,995       41,486,374  

Independence Realty Trust Inc.

    426,724       11,632,496  

Invitation Homes Inc.

    1,160,396       46,206,969  

Mid-America Apartment Communities Inc.

    224,316       44,118,471  

NexPoint Residential Trust Inc.

    43,033       3,836,822  

Preferred Apartment Communities Inc., Class A

    100,371       2,497,231  

Sun Communities Inc.

    222,704       39,100,141  

UDR Inc.

    615,353       32,742,933  

UMH Properties Inc.

    84,577       1,989,251  
   

 

 

 
          461,663,537  
Retail REITs — 14.2%            

Acadia Realty Trust

    166,902       3,491,590  

Agree Realty Corp.

    135,862       9,227,747  

Alexander’s Inc.

    4,122       1,022,957  

Brixmor Property Group Inc.

    575,341       14,602,155  

Cedar Realty Trust Inc.

    24,405       692,614  

 

 

16  

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


Schedule of Investments  (continued)

April 30, 2022

  

iShares® Core U.S. REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Retail REITs (continued)            

Federal Realty Investment Trust

    151,668     $ 17,754,256  

Getty Realty Corp.

    78,403       2,109,825  

InvenTrust Properties Corp.(b)

    130,897       3,964,870  

Kimco Realty Corp.

    1,129,334       28,606,030  

Kite Realty Group Trust

    419,351       9,351,527  

Macerich Co. (The)

    413,008       5,183,250  

National Retail Properties Inc.

    339,517       14,884,425  

Necessity Retail REIT Inc.

    238,614       1,782,447  

NETSTREIT Corp.

    76,378       1,651,292  

Phillips Edison & Co. Inc.

    214,857       7,275,058  

Realty Income Corp.

    1,100,112       76,303,768  

Regency Centers Corp.

    328,259       22,594,067  

Retail Opportunity Investments Corp.

    229,699       4,279,292  

RPT Realty

    160,920       2,138,627  

Saul Centers Inc.

    22,705       1,171,805  

Simon Property Group Inc.

    634,289       74,846,102  

SITE Centers Corp.

    334,625       5,320,538  

Spirit Realty Capital Inc.

    247,455       10,751,920  

Tanger Factory Outlet Centers Inc.

    198,009       3,193,885  

Urban Edge Properties

    223,807       4,182,953  

Urstadt Biddle Properties Inc., Class A

    57,722       1,001,477  

Whitestone REIT

    89,108       1,082,662  
   

 

 

 
      328,467,139  
Specialized REITs — 23.3%            

CubeSmart

    423,715       20,130,700  

Digital Realty Trust Inc.

    545,802       79,752,588  

EPR Properties

    143,619       7,542,870  

Equinix Inc.

    173,897       125,045,855  

Extra Space Storage Inc.

    254,978       48,445,820  

Farmland Partners Inc.

    55,122       811,396  

Four Corners Property Trust Inc.

    149,331       4,100,629  

Gaming and Leisure Properties Inc.

    452,953       20,102,054  

Gladstone Land Corp.

    60,239       2,192,700  

Iron Mountain Inc.

    556,947       29,924,762  
Security   Shares     Value  
Specialized REITs (continued)            

Lamar Advertising Co., Class A

    167,492     $ 18,492,792  

Life Storage Inc.

    158,359       20,980,984  

National Storage Affiliates Trust

    156,905       8,880,823  

Outfront Media Inc.

    280,604       7,183,462  

Public Storage

    293,216       108,929,744  

Safehold Inc.

    40,207       1,730,911  

VICI Properties Inc.

    1,222,901       36,454,679  
   

 

 

 
      540,702,769  
   

 

 

 

Total Common Stocks — 99.6%
(Cost: $2,117,330,451)

      2,309,944,409  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 0.5%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 0.38%(c)(d)(e)

    3,621,730       3,621,730  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.34%(c)(d)

    7,350,000       7,350,000  
   

 

 

 
      10,971,730  
   

 

 

 

Total Short -Term Investments — 0.5%
(Cost: $10,971,614)

      10,971,730  
   

 

 

 

Total Investments in Securities — 100.1%
(Cost: $2,128,302,065)

      2,320,916,139  

Other Assets, Less Liabilities — (0.1)%

      (2,365,978
   

 

 

 

Net Assets — 100.0%

    $   2,318,550,161  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

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

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
04/30/22
    Shares
Held at
04/30/22
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash
Funds: Institutional,
SL Agency Shares

  $ 129,227     $ 3,495,017 (a)    $     $ (2,642   $ 128     $ 3,621,730       3,621,730     $ 4,512 (b)    $  

BlackRock Cash
Funds: Treasury,
SL Agency Shares

    2,320,000       5,030,000 (a)                        7,350,000       7,350,000       3,353        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (2,642   $ 128     $ 10,971,730       $ 7,865     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

 

 

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

  17


Schedule of Investments  (continued)

April 30, 2022

  

iShares® Core U.S. REIT 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

                 

Dow Jones U.S. Real Estate Index

     208          06/17/22        $ 8,364        $ (36,897
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

      Equity
Contracts
 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 36,897  
  

 

 

 

 

  (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 April 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

     Equity
Contracts
 

Net Realized Gain (Loss) from:

 

Futures contracts

  $ 681,728  
 

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

 

Futures contracts

  $ (280,754
 

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 6,961,120  

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

   $ 2,309,944,409        $             —        $             —        $ 2,309,944,409  

Money Market Funds

     10,971,730                            10,971,730  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,320,916,139        $        $        $ 2,320,916,139  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $ (36,897      $        $        $ (36,897
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

18  

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


Schedule of Investments  

April 30, 2022

  

iShares® Global REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Australia — 4.1%  

Abacus Property Group

    1,008,395     $ 2,314,259  

Arena REIT

    685,295       2,319,187  

BWP Trust

    1,041,714       3,027,826  

Centuria Industrial REIT

    1,121,371       3,125,057  

Centuria Office REIT

    985,915       1,519,995  

Charter Hall Long Wale REIT

    1,459,720       5,478,414  

Charter Hall Retail REIT

    1,037,916       3,242,198  

Charter Hall Social Infrastructure REIT

    703,426       1,991,281  

Cromwell Property Group

    3,035,564       1,821,830  

Dexus

    2,276,910       17,802,177  

Dexus Industria REIT

    458,532       1,096,985  

GPT Group (The)

    4,085,644       14,523,991  

Growthpoint Properties Australia Ltd.

    595,279       1,830,978  

HomeCo Daily Needs REIT

    2,828,142       2,847,469  

Hotel Property Investments

    411,870       1,178,477  

Irongate Group

    1,065,946       1,441,391  

Mirvac Group

    8,327,490       14,074,209  

National Storage REIT

    2,555,730       4,629,061  

Scentre Group

    10,977,470       22,871,676  

Shopping Centres Australasia Property Group

    2,475,604       5,298,396  

Stockland

    5,049,176       14,614,473  

Vicinity Centres

    8,045,200       10,497,491  

Waypoint REIT Ltd.

    1,548,895       2,919,794  
   

 

 

 
      140,466,615  
Belgium — 1.2%            

Aedifica SA

    77,797       9,221,503  

Ascencio

    11,386       622,204  

Befimmo SA

    46,567       2,324,500  

Cofinimmo SA

    67,824       9,107,758  

Intervest Offices & Warehouses NV

    51,326       1,529,635  

Montea NV

    26,147       3,121,827  

Nextensa

    8,935       669,245  

Retail Estates NV

    22,530       1,716,046  

Warehouses De Pauw CVA

    300,238       11,550,208  

Xior Student Housing NV

    46,947       2,507,732  
   

 

 

 
      42,370,658  
Canada — 3.0%  

Allied Properties REIT

    268,111       8,709,199  

Artis REIT

    195,461       1,994,702  

Boardwalk REIT

    80,747       3,543,150  

Canadian Apartment Properties REIT

    368,805       14,446,166  

Choice Properties REIT

    550,025       6,499,342  

Crombie REIT

    217,612       2,966,089  

Dream Industrial REIT

    482,429       5,617,980  

Dream Office REIT

    74,397       1,505,719  

First Capital Real Estate Investment Trust

    466,578       6,217,892  

Granite REIT

    131,224       9,718,329  

H&R Real Estate Investment Trust

    607,015       6,038,728  

InterRent REIT

    277,543       3,048,404  

Killam Apartment REIT

    240,109       3,777,373  

NorthWest Healthcare Properties REIT

    419,641       4,328,216  

Prinmaris REIT

    204,100       2,195,666  

RioCan REIT

    667,483       12,470,005  

SmartCentres Real Estate Investment Trust

    278,862       6,792,194  

Summit Industrial Income REIT

    349,583       5,534,985  
   

 

 

 
      105,404,139  
China — 0.0%  

Yuexiu REIT

    3,729,000       1,489,456  
   

 

 

 
Security   Shares     Value  
France — 1.5%            

Carmila SA

    86,663     $ 1,348,050  

Covivio

    107,012       7,621,134  

Gecina SA

    110,103       12,402,898  

ICADE

    73,219       4,371,602  

Klepierre SA

    394,823       9,450,346  

Mercialys SA

    136,159       1,314,866  

Unibail-Rodamco-Westfield(a)(b)

    218,733       15,437,063  
   

 

 

 
      51,945,959  
Germany — 0.0%            

Hamborner REIT AG

    152,113       1,419,713  
   

 

 

 
Guernsey — 0.0%            

BMO Commercial Property Trust Ltd.

    1,037,461       1,531,323  
   

 

 

 
Hong Kong — 1.3%            

Champion REIT

    4,217,000       1,848,666  

Fortune REIT

    2,914,000       2,546,025  

Link REIT

    4,493,400       38,813,012  

Prosperity REIT

    2,636,000       903,637  

Sunlight REIT

    2,249,000       1,098,768  
   

 

 

 
      45,210,108  
India — 0.2%  

Brookfield India Real Estate Trust(c)

    216,242       935,830  

Embassy Office Parks REIT

    1,021,706       5,128,845  
   

 

 

 
      6,064,675  
Ireland — 0.1%  

Hibernia REIT PLC

    1,438,933       2,462,200  

Irish Residential Properties REIT PLC

    962,643       1,474,565  
   

 

 

 
      3,936,765  
Italy — 0.0%  

Immobiliare Grande Distribuzione SIIQ SpA(a)

    139,355       660,671  
   

 

 

 
Japan — 6.7%  

Activia Properties Inc.

    1,508       4,818,842  

Advance Residence Investment Corp.

    2,742       7,532,445  

AEON REIT Investment Corp.

    3,587       4,118,285  

Comforia Residential REIT Inc.

    1,328       3,309,141  

CRE Logistics REIT Inc.

    1,060       1,621,013  

Daiwa House REIT Investment Corp.

    4,416       10,748,551  

Daiwa Office Investment Corp.

    556       3,147,660  

Daiwa Securities Living Investments Corp.

    4,214       3,708,710  

Frontier Real Estate Investment Corp.

    982       3,804,802  

Fukuoka REIT Corp.

    1,456       1,820,964  

Global One Real Estate Investment Corp.

    1,942       1,664,673  

GLP J-Reit

    8,961       12,091,745  

Hankyu Hanshin REIT Inc.

    1,338       1,520,523  

Heiwa Real Estate REIT Inc.

    1,860       2,130,656  

Hoshino Resorts REIT Inc.

    493       2,543,211  

Hulic Reit Inc.

    2,704       3,359,006  

Ichigo Office REIT Investment Corp.

    2,520       1,617,622  

Industrial & Infrastructure Fund Investment Corp.

    3,983       5,715,145  

Invincible Investment Corp.

    10,443       3,405,220  

Itochu Advance Logistics Investment Corp.

    1,184       1,462,632  

Japan Excellent Inc.

    2,660       2,609,948  

Japan Hotel REIT Investment Corp.

    9,462       4,805,621  

Japan Logistics Fund Inc.

    1,763       4,302,611  

Japan Metropolitan Fund Invest

    14,531       11,549,653  

Japan Prime Realty Investment Corp.

    1,863       5,651,890  

Japan Real Estate Investment Corp.

    2,755       13,333,804  

Kenedix Office Investment Corp.

    771       4,029,790  

 

 

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

  19


Schedule of Investments  (continued)

April 30, 2022

  

iShares® Global REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)            

Kenedix Residential Next Investment Corp.

    1,996     $ 3,210,851  

Kenedix Retail REIT Corp.

    1,183       2,490,497  

LaSalle Logiport REIT

    3,746       5,067,971  

Mirai Corp.

    3,422       1,329,220  

Mitsubishi Estate Logistics REIT Investment Corp.

    765       2,744,607  

Mitsui Fudosan Logistics Park Inc.

    1,083       4,643,278  

Mori Hills REIT Investment Corp.

    3,322       3,767,606  

Mori Trust Sogo REIT Inc.

    2,021       2,200,602  

Nippon Accommodations Fund Inc.

    942       4,638,320  

Nippon Building Fund Inc.

    3,215       16,690,041  

Nippon Prologis REIT Inc.

    4,809       13,310,195  

NIPPON REIT Investment Corp.

    881       2,525,293  

Nomura Real Estate Master Fund Inc.

    9,458       11,874,888  

NTT UD REIT Investment Corp.

    2,868       3,312,803  

One REIT Inc.

    499       1,059,265  

Orix JREIT Inc.

    5,590       7,556,119  

Sankei Real Estate Inc.

    980       747,029  

Sekisui House Reit Inc.

    8,890       5,201,996  

SOSiLA Logistics REIT Inc.

    1,326       1,611,811  

Star Asia Investment Corp.

    3,439       1,574,083  

Starts Proceed Investment Corp.

    466       834,838  

Takara Leben Real Estate Investment Corp.

    1,095       1,020,546  

Tokyu REIT Inc.

    1,792       2,512,103  

United Urban Investment Corp.

    6,279       6,870,077  
   

 

 

 
      233,218,202  
Malaysia — 0.1%            

Axis Real Estate Investment Trust

    2,648,600       1,162,014  

Sunway REIT

    4,224,800       1,414,064  
   

 

 

 
      2,576,078  
Mexico — 0.4%            

Concentradora Fibra Danhos SA de CV(b)

    503,515       563,313  

Fibra Uno Administracion SA de CV

    6,567,113       7,202,214  

Macquarie Mexico Real Estate Management SA de CV(c)

    1,557,350       1,720,171  

PLA Administradora Industrial S. de RL de CV

    1,687,609       2,238,678  

Prologis Property Mexico SA de CV

    967,948       2,597,923  
   

 

 

 
      14,322,299  
Netherlands — 0.2%            

Eurocommercial Properties NV

    108,105       2,615,705  

NSI NV

    37,795       1,483,233  

Vastned Retail NV

    37,892       967,375  

Wereldhave NV

    87,960       1,434,642  
   

 

 

 
      6,500,955  
New Zealand — 0.3%            

Argosy Property Ltd.

    1,776,120       1,488,072  

Goodman Property Trust

    2,339,416       3,405,456  

Kiwi Property Group Ltd.

    3,394,466       2,315,206  

Stride Property Group

    1,023,503       1,308,331  

Vital Healthcare Property Trust(d)

    916,275       1,845,627  
   

 

 

 
      10,362,692  
Philippines — 0.0%            

AREIT Inc.

    1,300,420       988,604  
   

 

 

 
Saudi Arabia — 0.2%            

Al Maather REIT Fund

    89,145       212,229  

Al Rajhi REIT

    242,473       707,224  

Alahli REIT Fund 1

    95,189       303,017  

Al-Jazira Reit Fund

    26,532       161,816  

Alkhabeer REIT

    177,484       417,678  
Security   Shares     Value  
Saudi Arabia (continued)            

Derayah REIT

    233,902     $ 767,906  

Jadwa REIT Saudi Fund

    322,740       1,211,522  

Musharaka Real Estate Income Fund, NVS

    173,262       449,785  

Riyad REIT Fund

    321,168       938,467  

Sedco Capital REIT Fund

    84,928       250,683  

Swicorp Wabel REIT, NVS(a)

    190,498       339,802  

Taleem REIT

    59,213       198,597  
   

 

 

 
      5,958,726  
Singapore — 3.2%            

AIMS APAC REIT

    1,199,800       1,226,882  

Ascendas REIT

    7,261,714       14,940,826  

Ascott Residence Trust

    4,047,732       3,362,786  

CapitaLand China Trust

    2,408,630       2,023,796  

CapitaLand Integrated Commercial Trust

    10,359,426       17,358,164  

CDL Hospitality Trusts

    1,714,100       1,647,412  

Cromwell European Real Estate Investment Trust

    678,200       1,645,575  

ESR-REIT(b)

    10,562,843       2,962,454  

Far East Hospitality Trust

    2,073,800       998,988  

First REIT

    2,410,800       544,908  

Frasers Centrepoint Trust

    2,298,970       4,048,581  

Frasers Logistics & Commercial Trust

    6,099,000       6,351,251  

Keppel DC REIT

    2,779,833       4,144,143  

Keppel Pacific Oak US REIT

    1,807,400       1,308,923  

Keppel REIT

    4,570,900       4,004,501  

Lendlease Global Commercial REIT(b)

    2,440,191       1,393,851  

Manulife US Real Estate Investment Trust

    3,368,400       2,098,533  

Mapletree Commercial Trust

    4,741,991       6,377,605  

Mapletree Industrial Trust

    3,937,110       7,398,148  

Mapletree Logistics Trust

    6,818,413       8,757,032  

Mapletree North Asia Commercial Trust

    5,343,700       4,615,207  

OUE Commercial Real Estate Investment Trust

    4,589,400       1,371,726  

Parkway Life REIT

    826,000       2,878,161  

Prime U.S. REIT

    1,359,900       1,001,882  

Sasseur Real Estate Investment Trust

    1,138,800       687,587  

SPH REIT

    1,996,400       1,408,583  

Starhill Global REIT

    3,034,600       1,299,198  

Suntec REIT

    4,511,100       5,959,467  
   

 

 

 
      111,816,170  
South Africa — 0.6%            

Attacq Ltd.(a)(b)

    1,516,797       649,943  

Emira Property Fund Ltd.

    715,975       491,208  

Equites Property Fund Ltd.

    1,449,492       1,946,035  

Growthpoint Properties Ltd.

    7,346,986       6,568,906  

Hyprop Investments Ltd.

    732,290       1,664,713  

Investec Property Fund Ltd.

    1,208,499       933,588  

Redefine Properties Ltd.

    15,518,057       4,303,884  

SA Corporate Real Estate Ltd.

    5,555,493       785,146  

Stor-Age Property REIT Ltd.

    822,286       782,063  

Vukile Property Fund Ltd.

    1,900,410       1,618,522  
   

 

 

 
      19,744,008  
South Korea — 0.1%            

ESR Kendall Square REIT Co. Ltd.

    299,492       1,747,831  
   

 

 

 
Spain — 0.4%            

Inmobiliaria Colonial Socimi SA

    766,958       6,377,548  

Lar Espana Real Estate Socimi SA

    128,979       675,978  

Merlin Properties Socimi SA

    707,293       7,683,788  
   

 

 

 
      14,737,314  

 

 

20  

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


Schedule of Investments  (continued)

April 30, 2022

  

iShares® Global REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Turkey — 0.1%            

AKIS Gayrimenkul Yatirimi AS(a)

    1     $  

Emlak Konut Gayrimenkul Yatirim Ortakligi AS

    3,932,161       702,496  

Is Gayrimenkul Yatirim Ortakligi AS(a)

    905,879       766,275  

Ozak Gayrimenkul Yatirim Ortakligi(a)

    325,036       108,735  
   

 

 

 
      1,577,506  
United Kingdom — 5.0%            

Assura PLC

    6,212,578       5,148,114  

Big Yellow Group PLC

    361,771       6,537,914  

BMO Real Estate Investments Ltd.

    516,747       626,572  

British Land Co PLC/The

    1,972,757       12,707,347  

Capital & Counties Properties PLC

    1,576,135       3,256,556  

Civitas Social Housing PLC

    1,302,326       1,408,345  

Custodian REIT PLC

    881,755       1,115,416  

Derwent London PLC

    214,790       8,149,545  

Empiric Student Property PLC

    1,263,298       1,445,566  

Great Portland Estates PLC

    547,579       4,651,090  

Hammerson PLC(b)

    9,371,392       3,383,369  

Home Reit PLC

    1,200,053       1,850,043  

Impact Healthcare REIT PLC

    637,495       996,033  

Land Securities Group PLC

    1,518,814       14,244,302  

LondonMetric Property PLC

    2,026,299       6,848,629  

LXI REIT Plc

    1,570,680       2,915,562  

NewRiver REIT PLC

    676,345       750,115  

Picton Property Income Ltd. (The)

    1,171,720       1,496,954  

Primary Health Properties PLC

    2,858,076       5,183,146  

PRS REIT PLC (The)

    1,110,317       1,507,862  

Regional REIT Ltd.(c)

    951,148       1,013,030  

Safestore Holdings PLC

    437,779       6,887,036  

Schroder REIT Ltd.

    1,057,916       757,466  

Segro PLC

    2,551,355       42,715,046  

Shaftesbury PLC

    608,704       4,558,301  

Standard Life Investment Property Income Trust Ltd.

    855,122       882,275  

Target Healthcare REIT PLC

    1,323,087       1,846,660  

Triple Point Social Housing REIT PLC(c)

    785,816       866,585  

Tritax Big Box REIT PLC

    3,984,027       12,161,913  

UK Commercial Property REIT Ltd.

    1,585,622       1,747,031  

UNITE Group PLC (The)

    678,258       9,604,277  

Urban Logistics REIT PLC

    976,195       2,295,456  

Workspace Group PLC

    283,855       2,375,447  
   

 

 

 
      171,933,003  
United States — 70.8%            

Acadia Realty Trust

    183,387       3,836,456  

Agree Realty Corp.

    148,400       10,079,328  

Alexander & Baldwin Inc.

    154,060       3,266,072  

Alexandria Real Estate Equities Inc.

    354,369       64,551,857  

American Assets Trust Inc.

    106,086       3,882,748  

American Campus Communities Inc.

    291,160       18,829,317  

American Homes 4 Rent, Class A

    626,379       24,810,872  

Americold Realty Trust

    567,417       14,968,460  

Apartment Income REIT Corp.

    332,401       16,344,157  

Apartment Investment & Management Co., Class A(a)

    321,734       2,026,924  

Apple Hospitality REIT Inc.

    453,923       8,029,898  

Armada Hoffler Properties Inc.

    140,402       1,902,447  

AvalonBay Communities Inc.

    296,698       67,492,861  

Boston Properties Inc.

    332,194       39,066,014  

Brandywine Realty Trust

    362,237       4,227,306  

Brixmor Property Group Inc.

    629,670       15,981,025  

Broadstone Net Lease Inc.

    332,759       6,884,784  

Camden Property Trust

    210,293       32,992,869  
Security   Shares     Value  
United States (continued)            

CareTrust REIT Inc.

    205,257     $ 3,327,216  

Centerspace

    30,285       2,794,094  

Community Healthcare Trust Inc.

    50,664       1,865,449  

Corporate Office Properties Trust

    238,870       6,375,440  

Cousins Properties Inc.

    315,449       11,324,619  

CubeSmart

    463,775       22,033,950  

DiamondRock Hospitality Co.(a)

    444,351       4,719,008  

Digital Realty Trust Inc.

    597,336       87,282,736  

DigitalBridge Group Inc.(a)

    1,026,040       7,141,238  

Diversified Healthcare Trust

    507,046       1,140,854  

Douglas Emmett Inc.

    353,771       10,422,094  

Duke Realty Corp.

    808,946       44,289,794  

Easterly Government Properties Inc.

    182,879       3,483,845  

EastGroup Properties Inc.

    85,399       16,012,313  

Empire State Realty Trust Inc., Class A

    305,467       2,639,235  

EPR Properties

    157,639       8,279,200  

Equinix Inc.

    190,299       136,840,205  

Equity Commonwealth(a)

    230,504       6,036,900  

Equity LifeStyle Properties Inc.

    376,476       29,094,065  

Equity Residential

    784,357       63,925,096  

Essential Properties Realty Trust Inc.

    256,150       6,147,600  

Essex Property Trust Inc.

    137,871       45,396,784  

Extra Space Storage Inc.

    278,977       53,005,630  

Federal Realty Investment Trust

    165,940       19,424,936  

First Industrial Realty Trust Inc.

    273,620       15,869,960  

Four Corners Property Trust Inc.

    163,154       4,480,209  

Gaming and Leisure Properties Inc.

    495,680       21,998,278  

Getty Realty Corp.

    85,760       2,307,802  

Global Net Lease Inc.

    220,693       3,096,323  

Healthcare Realty Trust Inc.

    311,866       8,445,331  

Healthcare Trust of America Inc., Class A

    462,933       14,100,939  

Healthpeak Properties Inc.

    1,147,220       37,640,288  

Highwoods Properties Inc.

    218,532       8,924,847  

Host Hotels & Resorts Inc.

    1,504,349       30,613,502  

Hudson Pacific Properties Inc.

    315,265       7,339,369  

Independence Realty Trust Inc.

    467,252       12,737,290  

Industrial Logistics Properties Trust

    138,301       2,234,944  

Innovative Industrial Properties Inc.

    53,353       7,714,310  

InvenTrust Properties Corp.

    143,073       4,333,681  

Invitation Homes Inc.

    1,270,059       50,573,749  

JBG SMITH Properties

    260,923       6,877,930  

Kilroy Realty Corp.

    246,959       17,287,130  

Kimco Realty Corp.

    1,236,019       31,308,361  

Kite Realty Group Trust

    458,801       10,231,262  

Life Storage Inc.

    173,271       22,956,675  

LTC Properties Inc.

    83,117       2,742,861  

LXP Industrial Trust.

    590,866       7,415,368  

Macerich Co. (The)

    452,420       5,677,871  

Medical Properties Trust Inc.

    1,257,359       23,122,832  

Mid-America Apartment Communities Inc.

    245,469       48,278,843  

National Health Investors Inc.

    93,204       4,802,802  

National Retail Properties Inc.

    371,612       16,291,470  

National Storage Affiliates Trust

    171,617       9,713,522  

Necessity Retail REIT Inc.

    264,292       1,974,261  

NexPoint Residential Trust Inc.

    47,396       4,225,827  

Office Properties Income Trust

    102,312       2,211,985  

Omega Healthcare Investors Inc.

    507,565       12,932,756  

Orion Office REIT Inc.

    120,265       1,613,956  

Paramount Group Inc.

    396,437       3,770,116  

Park Hotels & Resorts Inc.

    499,408       9,843,332  

 

 

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

  21


Schedule of Investments  (continued)

April 30, 2022

  

iShares® Global REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
United States (continued)            

Pebblebrook Hotel Trust(b)

    275,069     $ 6,717,185  

Physicians Realty Trust

    465,927       7,985,989  

Piedmont Office Realty Trust Inc., Class A

    264,783       4,263,006  

Prologis Inc.

    1,570,055       251,664,116  

PS Business Parks Inc.

    42,485       7,953,192  

Public Storage

    320,855       119,197,633  

Realty Income Corp.

    1,204,130       83,518,457  

Regency Centers Corp.

    359,283       24,729,449  

Retail Opportunity Investments Corp.

    253,439       4,721,569  

Rexford Industrial Realty Inc.

    341,856       26,678,442  

RLJ Lodging Trust

    352,941       4,948,233  

RPT Realty

    177,851       2,363,640  

Ryman Hospitality Properties Inc.(a)

    113,619       10,621,104  

Sabra Health Care REIT Inc.

    484,550       5,659,544  

Safehold Inc.(b)

    44,192       1,902,466  

Service Properties Trust

    330,409       2,682,921  

Simon Property Group Inc.

    694,207       81,916,426  

SITE Centers Corp.

    368,082       5,852,504  

SL Green Realty Corp.

    143,882       9,959,512  

Spirit Realty Capital Inc.

    270,778       11,765,304  

STAG Industrial Inc.

    378,572       14,128,307  

STORE Capital Corp.

    519,673       14,774,303  

Summit Hotel Properties Inc.(a)

    221,490       2,186,106  

Sun Communities Inc.

    243,671       42,781,317  

Sunstone Hotel Investors Inc.(a)

    464,506       5,690,199  

Tanger Factory Outlet Centers Inc.

    216,912       3,498,791  

Terreno Realty Corp.

    155,922       11,343,326  

UDR Inc.

    673,516       35,837,786  

Universal Health Realty Income Trust

    27,217       1,366,021  

Urban Edge Properties

    247,212       4,620,392  

Ventas Inc.

    848,036       47,108,400  

Veris Residential Inc.(a)

    187,009       2,994,014  

VICI Properties Inc.

    1,338,424       39,898,419  

Vornado Realty Trust

    373,198       14,446,495  

Washington Real Estate Investment Trust

    180,507       4,348,414  

Welltower Inc.

    926,789       84,161,709  

WP Carey Inc.

    402,135       32,480,444  

Xenia Hotels & Resorts Inc.(a)

    241,926       4,666,753  
   

 

 

 
      2,449,297,566  
   

 

 

 

Total Common Stocks — 99.5%
(Cost: $3,151,429,733)

      3,445,281,036  
   

 

 

 
Security   Shares     Value  

Preferred Stocks

   
Bermuda — 0.0%            

Brookfield Property Partners LP, 6.25%

    4,436     $ 92,579  
   

 

 

 

Total Preferred Stocks — 0.0%
(Cost: $109,587)

      92,579  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 0.3%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.38%(e)(f)(g)

    3,161,788       3,161,788  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.34%(e)(f)

    6,030,000       6,030,000  
   

 

 

 
      9,191,788  
   

 

 

 

Total Short-Term Investments — 0.3%
(Cost: $9,188,458)

      9,191,788  
   

 

 

 

Total Investments in Securities — 99.8%
(Cost: $3,160,727,778)

      3,454,565,403  

Other Assets, Less Liabilities — 0.2%

      7,012,400  
   

 

 

 

Net Assets — 100.0%

    $   3,461,577,803  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

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

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

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

 

 

22  

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


Schedule of Investments  (continued)

April 30, 2022

  

iShares® Global REIT ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
04/30/22
    Shares
Held at
04/30/22
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash
Funds: Institutional,
SL Agency Shares

    $9,189,362     $     $ (6,007,780 )(a)    $ (16,087   $ (3,707   $ 3,161,788       3,161,788     $ 366,424 (b)    $  

BlackRock Cash
Funds: Treasury,
SL Agency Shares

    6,480,000             (450,000 )(a)                  6,030,000       6,030,000       2,766        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (16,087   $ (3,707   $ 9,191,788       $ 369,190     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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

                 

SPI 200 Index

     11          06/16/22        $ 1,423        $ (6,776

Dow Jones U.S. Real Estate Index

     297          06/17/22          11,942          (528,717
                 

 

 

 
                  $ (535,493
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

      Equity
Contracts
 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 535,493  
  

 

 

 

 

  (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 April 30, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 2,032,251  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (1,195,403
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

 

   $

 

11,946,402

 

 

 

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

 

 

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

  23


Schedule of Investments  (continued)

April 30, 2022

  

iShares® Global REIT ETF

 

Fair Value Hierarchy as of Period End

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

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

 

      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Common Stocks

   $ 2,641,357,970        $ 802,077,439        $ 1,845,627        $ 3,445,281,036  

Preferred Stocks

     92,579                            92,579  

Money Market Funds

     9,191,788                            9,191,788  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,650,642,337        $ 802,077,439        $ 1,845,627        $ 3,454,565,403  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $ (528,717      $ (6,776      $        $ (535,493
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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  

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Schedule of Investments  

April 30, 2022

  

iShares® International Developed Real Estate ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks            
Australia — 9.5%            

Abacus Property Group

    137,624     $ 315,846  

Arena REIT

    93,127       315,162  

BWP Trust

    145,031       421,544  

Centuria Industrial REIT

    155,456       433,228  

Centuria Office REIT

    138,429       213,418  

Charter Hall Long Wale REIT

    194,906       731,494  

Charter Hall Retail REIT

    142,191       444,170  

Charter Hall Social Infrastructure REIT

    94,834       268,459  

Cromwell Property Group

    422,921       253,821  

Dexus

    318,278       2,488,478  

Dexus Industria REIT

    63,433       151,756  

GPT Group (The)

    566,853       2,015,097  

Growthpoint Properties Australia Ltd.

    83,500       256,832  

Home Consortium Ltd.

    41,244       194,452  

HomeCo Daily Needs REIT

    389,271       391,931  

Hotel Property Investments

    56,501       161,665  

Ingenia Communities Group

    108,872       358,418  

Irongate Group

    147,615       199,608  

Lifestyle Communities Ltd.

    27,626       291,161  

Mirvac Group

    1,163,909       1,967,111  

National Storage REIT

    339,119       614,229  

Scentre Group

    1,534,467       3,197,078  

Shopping Centres Australasia Property Group

    329,747       705,739  

Stockland

    705,769       2,042,797  

Vicinity Centres

    1,112,715       1,451,886  

Waypoint REIT Ltd.

    214,722       404,769  
   

 

 

 
      20,290,149  
Austria — 0.2%            

CA Immobilien Anlagen AG

    12,354       348,910  
   

 

 

 
Belgium — 3.0%            

Aedifica SA

    10,713       1,269,843  

Ascencio

    1,596       87,216  

Befimmo SA

    6,342       316,576  

Cofinimmo SA

    9,417       1,264,564  

Intervest Offices & Warehouses NV

    6,990       208,318  

Montea NV

    3,638       434,360  

Nextensa

    1,237       92,653  

Retail Estates NV

    3,056       232,767  

Shurgard Self Storage SA

    7,485       433,131  

Warehouses De Pauw CVA

    41,589       1,599,936  

Xior Student Housing NV

    6,588       351,906  
   

 

 

 
      6,291,270  
Canada — 7.6%            

Allied Properties REIT

    37,101       1,205,172  

Artis REIT

    26,693       272,405  

Boardwalk REIT(a)

    11,058       485,221  

Canadian Apartment Properties REIT

    51,173       2,004,457  

Chartwell Retirement Residences(a)

    68,465       650,195  

Choice Properties REIT

    75,909       896,975  

Crombie REIT

    30,470       415,311  

Dream Industrial REIT

    65,945       767,942  

Dream Office REIT

    10,501       212,529  

First Capital Real Estate Investment Trust

    64,184       855,354  

Granite REIT

    18,147       1,343,950  

H&R Real Estate Investment Trust

    82,989       825,594  

InterRent REIT

    38,382       421,570  

Killam Apartment REIT

    33,618       528,875  
Security   Shares     Value  
Canada (continued)            

NorthWest Healthcare Properties REIT

    56,587     $ 583,644  

Prinmaris REIT

    28,658       308,297  

RioCan REIT

    92,524       1,728,546  

SmartCentres Real Estate Investment Trust

    38,440       936,277  

Summit Industrial Income REIT

    48,057       760,892  

Tricon Residential Inc.

    71,705       1,037,634  
   

 

 

 
      16,240,840  
Finland — 0.6%            

Citycon Oyj

    21,548       153,154  

Kojamo Oyj

    57,510       1,144,057  
   

 

 

 
      1,297,211  
France — 3.4%            

Carmila SA

    11,673       181,575  

Covivio

    14,879       1,059,646  

Gecina SA

    15,233       1,715,969  

ICADE

    9,590       572,579  

Klepierre SA

    54,542       1,305,498  

Mercialys SA

    18,700       180,583  

Unibail-Rodamco-Westfield(a)(b)

    30,360       2,142,654  
   

 

 

 
      7,158,504  
Germany — 7.5%            

ADLER Group SA(c)

    26,853       204,554  

Aroundtown SA

    337,059       1,694,912  

Deutsche EuroShop AG

    14,862       246,238  

Deutsche Wohnen SE

    14,603       418,226  

Grand City Properties SA

    28,628       505,429  

Hamborner REIT AG

    20,382       190,231  

LEG Immobilien SE

    21,556       2,210,147  

Sirius Real Estate Ltd.

    320,400       489,105  

TAG Immobilien AG

    37,424       747,935  

Vonovia SE(a)

    230,079       9,166,570  
   

 

 

 
      15,873,347  
Guernsey — 0.1%            

BMO Commercial Property Trust Ltd.

    142,343       210,102  
   

 

 

 
Hong Kong — 12.2%            

Champion REIT

    588,000       257,770  

CK Asset Holdings Ltd.

    584,500       3,962,407  

Fortune REIT

    405,000       353,857  

Hang Lung Properties Ltd.

    603,000       1,153,280  

Henderson Land Development Co. Ltd.

    384,000       1,552,902  

Hongkong Land Holdings Ltd.(a)

    342,400       1,597,282  

Hysan Development Co. Ltd.

    180,000       531,031  

Link REIT

    623,500       5,385,657  

New World Development Co. Ltd.

    420,333       1,607,686  

Prosperity REIT

    361,000       123,753  

Sino Land Co. Ltd.

    1,062,800       1,404,790  

Sun Hung Kai Properties Ltd.

    421,000       4,848,693  

Sunlight REIT

    326,000       159,270  

Swire Properties Ltd.

    312,800       749,643  

Wharf Real Estate Investment Co. Ltd.

    486,900       2,294,549  
   

 

 

 
      25,982,570  
Ireland — 0.3%            

Hibernia REIT PLC

    197,311       337,625  

Irish Residential Properties REIT PLC

    131,971       202,151  
   

 

 

 
      539,776  
Israel — 0.6%            

Amot Investments Ltd.

    48,573       368,708  

 

 

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

  25


Schedule of Investments  (continued)

April 30, 2022

  

iShares® International Developed Real Estate ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Israel (continued)            

Azrieli Group Ltd.

    10,855     $ 932,426  
   

 

 

 
      1,301,134  
Italy — 0.0%            

Immobiliare Grande Distribuzione SIIQ SpA(b)

    18,228       86,417  
   

 

 

 
Japan — 23.6%            

Activia Properties Inc.

    217       693,427  

Advance Residence Investment Corp.

    383       1,052,125  

Aeon Mall Co. Ltd.

    34,600       420,997  

AEON REIT Investment Corp.

    504       578,649  

Comforia Residential REIT Inc.

    192       478,430  

CRE Logistics REIT Inc.

    159       243,152  

Daiwa House REIT Investment Corp.

    625       1,521,251  

Daiwa Office Investment Corp.

    80       452,901  

Daiwa Securities Living Investments Corp.

    599       527,175  

Frontier Real Estate Investment Corp.

    143       554,060  

Fukuoka REIT Corp.

    209       261,388  

Global One Real Estate Investment Corp.

    286       245,158  

GLP J-Reit

    1,255       1,693,465  

Hankyu Hanshin REIT Inc.

    191       217,055  

Heiwa Real Estate Co. Ltd.

    9,600       302,835  

Heiwa Real Estate REIT Inc.

    272       311,580  

Hoshino Resorts REIT Inc.

    71       366,264  

Hulic Co. Ltd.

    121,900       1,029,250  

Hulic Reit Inc.

    371       460,869  

Ichigo Office REIT Investment Corp.

    348       223,386  

Industrial & Infrastructure Fund Investment Corp.

    558       800,666  

Invincible Investment Corp.

    1,455       474,442  

Itochu Advance Logistics Investment Corp.

    175       216,183  

Japan Excellent Inc.

    362       355,188  

Japan Hotel REIT Investment Corp.

    1,328       674,473  

Japan Logistics Fund Inc.

    254       619,888  

Japan Metropolitan Fund Invest

    2,041       1,622,245  

Japan Prime Realty Investment Corp.

    272       825,182  

Japan Real Estate Investment Corp.

    386       1,868,185  

Kenedix Office Investment Corp.

    111       580,164  

Kenedix Residential Next Investment Corp.

    290       466,506  

Kenedix Retail REIT Corp.

    173       364,206  

LaSalle Logiport REIT

    529       715,685  

Mirai Corp.

    487       189,167  

Mitsubishi Estate Co. Ltd.

    337,500       4,916,217  

Mitsubishi Estate Logistics REIT Investment Corp.

    110       394,649  

Mitsui Fudosan Co. Ltd.

    272,100       5,766,816  

Mitsui Fudosan Logistics Park Inc.

    157       673,125  

Mori Hills REIT Investment Corp.

    468       530,777  

Mori Trust Sogo REIT Inc.

    298       324,483  

Nippon Accommodations Fund Inc.

    137       674,575  

Nippon Building Fund Inc.

    452       2,346,469  

Nippon Prologis REIT Inc.

    686       1,898,689  

NIPPON REIT Investment Corp.

    129       369,765  

Nomura Real Estate Holdings Inc.

    33,200       808,943  

Nomura Real Estate Master Fund Inc.

    1,326       1,664,845  

NTT UD REIT Investment Corp.

    396       457,416  

One REIT Inc.

    74       157,085  

Orix JREIT Inc.

    782       1,057,046  

Sankei Real Estate Inc.

    131       99,858  

Sekisui House Reit Inc.

    1,234       722,077  

SOSiLA Logistics REIT Inc.

    196       238,247  

Star Asia Investment Corp.

    484       221,534  

Starts Proceed Investment Corp.

    63       112,864  
Security   Shares     Value  
Japan (continued)            

Sumitomo Realty & Development Co. Ltd.

    116,900     $ 3,101,179  

Takara Leben Real Estate Investment Corp.

    161       150,053  

Tokyo Tatemono Co. Ltd.

    58,400       823,378  

Tokyu REIT Inc.

    257       360,274  

United Urban Investment Corp.

    876       958,463  
   

 

 

 
      50,234,424  
Netherlands — 0.4%            

Eurocommercial Properties NV

    15,009       363,157  

NSI NV

    5,295       207,798  

Vastned Retail NV

    4,846       123,718  

Wereldhave NV

    11,639       189,834  
   

 

 

 
      884,507  
New Zealand — 0.9%            

Argosy Property Ltd.

    250,108       209,546  

Goodman Property Trust

    321,710       468,309  

Kiwi Property Group Ltd.

    468,587       319,601  

Precinct Properties New Zealand Ltd.

    394,132       385,164  

Stride Property Group

    143,290       183,166  

Vital Healthcare Property Trust(a)(d)

    126,879       255,569  
   

 

 

 
      1,821,355  
Norway — 0.1%            

Entra ASA(c)

    16,309       268,898  
   

 

 

 
Singapore — 8.6%            

AIMS APAC REIT(a)

    166,500       170,258  

Ascendas REIT

    1,007,690       2,073,301  

Ascott Residence Trust

    559,800       465,072  

CapitaLand Integrated Commercial Trust

    1,437,307       2,408,339  

Capitaland Investment Ltd/Singapore(b)

    753,100       2,283,549  

CDL Hospitality Trusts(a)

    232,300       223,262  

City Developments Ltd.

    138,500       849,159  

Cromwell European Real Estate Investment Trust

    91,100       221,044  

ESR-REIT

    1,481,420       415,479  

Far East Hospitality Trust

    290,600       139,988  

Frasers Centrepoint Trust(a)

    314,749       554,286  

Frasers Logistics & Commercial Trust

    836,900       871,514  

Keppel DC REIT

    378,571       564,369  

Keppel Pacific Oak US REIT

    253,000       183,223  

Keppel REIT

    635,200       556,490  

Lendlease Global Commercial REIT

    343,647       196,293  

Manulife US Real Estate Investment Trust(a)

    472,500       294,370  

Mapletree Commercial Trust

    650,317       874,625  

Mapletree Industrial Trust(a)

    545,045       1,024,184  

Mapletree Logistics Trust

    943,560       1,211,834  

OUE Commercial Real Estate Investment Trust

    641,800       191,828  

Parkway Life REIT

    114,700       399,667  

Prime U.S. REIT

    191,500       141,084  

SPH REIT

    282,400       199,251  

Starhill Global REIT

    424,200       181,612  

Suntec REIT

    611,800       808,229  

UOL Group Ltd.

    146,000       767,162  
   

 

 

 
      18,269,472  
South Korea — 0.1%            

ESR Kendall Square REIT Co. Ltd.

    42,445       247,708  
   

 

 

 
Spain — 0.9%            

Inmobiliaria Colonial Socimi SA