LOGO

  APRIL 30, 2022

 

 

2022 Annual Report

 

 

iShares Trust

 

·  

iShares Core Dividend Growth ETF | DGRO | NYSE Arca

 

·  

iShares Core High Dividend ETF | HDV | NYSE Arca

 

·  

iShares International Select Dividend ETF | IDV | Cboe BZX

 

·  

iShares Select Dividend ETF | DVY | NASDAQ

 

·  

iShares U.S. Dividend and Buyback ETF | DIVB | Cboe BZX

 

 

 

 

 

 

 


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.

 

 

 

2  

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


Table of Contents

 

      Page  

The Markets in Review

     2  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     15  

Shareholder Expenses

     15  

Schedules of Investments

     16  

Financial Statements

  

Statements of Assets and Liabilities

     38  

Statements of Operations

     40  

Statements of Changes in Net Assets

     42  

Financial Highlights

     45  

Notes to Financial Statements

     50  

Report of Independent Registered Public Accounting Firm

     60  

Important Tax Information (Unaudited)

     61  

Statement Regarding Liquidity Risk Management Program

     62  

Supplemental Information

     63  

Trustee and Officer Information

     65  

General Information

     68  

Glossary of Terms Used in this Report

     69  


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® Core Dividend Growth ETF

 

Investment Objective

The iShares Core Dividend Growth ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities with a history of consistently growing dividends, as represented by the Morningstar® U.S. Dividend Growth IndexSM (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

    3.51     13.09     11.91        3.51     84.94     143.00

Fund Market

    3.45       13.08       11.91          3.45       84.92       143.03  

Index

    3.60       13.18       11.98                3.60       85.68       144.17  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

 

  

The inception date of the Fund was 6/10/14. The first day of secondary market trading was 6/12/14.

 

  

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 15 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        $ 962.10        $ 0.39             $ 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.

 

 

 

F U N D   S U M M A R Y

  5


Fund Summary as of April 30, 2022  (continued)    iShares® Core Dividend Growth ETF

 

Portfolio Management Commentary

Stocks of companies with a history of consistently growing dividends advanced modestly during the reporting period. In 2021, an improving economy and increased cash flow encouraged companies to increase dividend payouts. Volatile equity markets drove investors seeking less-risky investments into dividend-paying stocks in early 2022.

The healthcare sector contributed the most to the Index’s return, supported by the pharmaceuticals industry. During elevated periods of inflation, established drugs provide healthy margins and cash flows that sustain dividend payouts. Additionally, strong performance from COVID-19 therapeutics, including vaccines and oral antivirals, buoyed pharmaceuticals companies. For some pharmaceuticals firms, COVID-19-related products nearly doubled annual revenues. As new variants developed, new treatment opportunities arose, providing pharmaceuticals companies with ongoing prospects for drug sales. Solid earnings from more traditional healthcare medicines, including cancer treatments, animal health medications, and vaccines, further contributed, as did pipeline treatments addressing obesity and Alzheimer’s.

The consumer staples sector, traditionally viewed as offering steady investments during turbulent markets, also contributed meaningfully to the Index’s return. As input costs rose, several industries benefited from passing on price increases to the consumer. The beverages industry advanced as consumers purchased more beverages away from home due to reopening economies. Demand for healthier drinks also buoyed the beverages industry. Strong earnings, despite rising commodities prices, aided companies in the household and personal products industry.

On the downside, the largest detractor was the financials sector as leading banking institutions reported weaker-than-expected first-quarter 2022 earnings and revenue. In Spring 2022, rising interest rates weighed on loan origination at many major banks, and in a reversal from the third quarter of 2021, investment banking fees were lower. The war in Ukraine also negatively affected banks with exposure to Russia or exposure to commodities impacted by the war.

Portfolio Information

 

ALLOCATION BY SECTOR

 

 
Sector    
Percent of
Total Investments
 
(a) 

Information Technology

    19.9

Financials

    18.8  

Health Care

    18.0  

Industrials

    12.9  

Consumer Staples

    12.4  

Consumer Discretionary

    7.3  

Utilities

    5.0  

Materials

    3.2  

Communication Services

    1.6  

Energy

    0.9  

 

  (a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

 
Security    
Percent of
Total Investments
 
(a) 

Johnson & Johnson

    3.0

Microsoft Corp.

    2.9  

Apple Inc.

    2.8  

Procter & Gamble Co. (The)

    2.8  

Pfizer Inc.

    2.8  

JPMorgan Chase & Co.

    2.5  

Merck & Co. Inc.

    2.4  

Coca-Cola Co. (The)

    2.2  

Home Depot Inc. (The)

    2.0  

PepsiCo Inc.

    2.0  

 

 

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Fund Summary as of April 30, 2022    iShares® Core High Dividend ETF

 

Investment Objective

The iShares Core High Dividend ETF (the “Fund”) seeks to track the investment results of an index composed of relatively high dividend paying U.S. equities, as represented by the Morningstar® Dividend Yield Focus IndexSM (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

    12.21      8.40     9.84       12.21      49.65      155.67

Fund Market

    12.21        8.40       9.84         12.21        49.67        155.64  

Index

    12.29        8.49       10.01               12.29        50.27        159.67  

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 15 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        $ 1,072.90        $ 0.41             $ 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.

 

 

 

F U N D   S U M M A R Y

  7


Fund Summary as of April 30, 2022  (continued)    iShares® Core High Dividend ETF

 

Portfolio Management Commentary

Stocks with histories of high dividend yields advanced solidly during the reporting period. During the height of the coronavirus pandemic, dividend payouts were suspended, reduced, or left unchanged by many companies, but strong economic growth led many firms to resume or increase payouts starting in mid-2021. Volatile markets late in the reporting period drove investors to seek less-risky investments in dividend-paying stocks, as many other areas of the equity market declined.

The energy sector was the leading contributor to the Index’s return, as oil prices rose sharply due to increased consumer demand, limited supply from oil-producing countries, and the Russian invasion of Ukraine. The oil, gas, and consumable fuels industry was the primary contributor within the sector. Investors pressured large oil and gas multinationals to pay out billions in stock repurchases and dividends after oil stock prices declined materially during the pandemic. To entice investors to return to the sector, leading oil and gas companies reported intentions to double and triple their stock buyback programs after posting strong profits in the first quarter of 2022.

The healthcare sector further contributed to the Index’s return, led by pharmaceuticals and biotechnology companies. Strong sales of medical devices, Covid-19 treatments, and cancer therapies supported pharmaceuticals companies. Demographic trends also benefited the healthcare sector, as the needs of an aging population added to demand for health services and pharmaceuticals. A top biotechnology firm raised its dividend due to increased sales of immunology drugs and injectable medicines.

In contrast, the financials and communication services sectors were notable detractors from the Index’s performance. In the banking industry, higher interest rates led to lower loan origination, and revenue from investment banking fees also dropped. Diversified telecommunication services companies declined due to concerns about subscriber growth and inflationary pressures.

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector    
Percent of
Total Investments
 
(a) 

Health Care

    23.5

Consumer Staples

    18.4  

Energy

    18.3  

Financials

    10.2  

Utilities

    8.5  

Information Technology

    8.5  

Industrials

    5.9  

Communication Services

    4.8  

Consumer Discretionary

    1.2  

Materials

    0.7  

 

  (a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

Security    
Percent of
Total Investments
 
(a) 

Exxon Mobil Corp.

    7.9

AbbVie Inc.

    6.4  

Johnson & Johnson

    6.1  

JPMorgan Chase & Co.

    5.5  

Chevron Corp.

    5.3  

Verizon Communications Inc.

    4.8  

Procter & Gamble Co. (The)

    4.7  

Philip Morris International Inc.

    4.3  

Merck & Co. Inc.

    4.1  

Coca-Cola Co. (The)

    3.7  

 

 

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Fund Summary as of April 30, 2022    iShares® International Select Dividend ETF

 

Investment Objective

The iShares International Select Dividend ETF (the “Fund”) seeks to track the investment results of an index composed of relatively high dividend paying equities in non-U.S. developed markets, as represented by the Dow Jones EPAC Select Dividend IndexTM (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

    (1.76 )%       4.70      4.96       (1.76 )%       25.82      62.34

Fund Market

    (1.75      4.67        4.93         (1.75      25.64        61.78  

Index

    (1.02      4.85        5.14               (1.02      26.72        65.11  

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 15 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        $ 989.20        $ 2.71             $ 1,000.00        $ 1,022.10        $ 2.76          0.55

 

  (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.

 

 

 

F U N D   S U M M A R Y   9


Fund Summary as of April 30, 2022  (continued)    iShares® International Select Dividend ETF

 

Portfolio Management Commentary

International dividend stocks declined marginally for the reporting period. As equities markets rose in the first half of the reporting period, dividend payments increased sharply amid robust corporate earnings, dividend yields declined to historic lows, and investors favored growth stocks over dividend stocks. In the second half of the reporting period, inflation advanced briskly in many countries and central banks tightened monetary policy. In this environment, international dividend stocks rebounded, nearly offsetting their earlier decline.

The Japanese industrials sector detracted the most from the Index’s return, led by the transportation industry. While shipping rates initially increased as economies reopened and demand for marine transportation rose, shipping rates subsequently declined sharply amid reduced demand for iron ore in China. In addition, Russia’s invasion of Ukraine disrupted routes to ports in the region and shipping demand declined due to economic sanctions imposed on Russia by world governments.

The Hong Kong real estate sector also detracted from the Index’s return, as housing prices fell amid rising interest rates and the departure of many residents in response to unpopular coronavirus pandemic-related restrictions. In Australia, the financials sector detracted marginally, as concerns rose that additional outbreaks of the coronavirus would disrupt global economic activity. Additionally, a financial services company lost a major client, which constrained revenues.

On the upside, stocks of dividend-paying companies from the U.K. advanced notably. The consumer staples and utilities sectors were the primary contributors to the Index’s performance. Dividends rose modestly as rising demand for alternatives to traditional smoking products drove revenue growth for tobacco companies. U.K. utilities stocks also contributed due to increasing energy prices.

The Canadian financials sector also contributed to the Index’s return, as the government lifted a pandemic-imposed regulation limiting capital distributions by banks. Banks increased their dividends amid strong earnings due to growth in loans and fees.

Portfolio Information

 

ALLOCATION BY SECTOR

 

 
Sector    
Percent of
Total Investments
 
(a) 

Financials

    29.7

Materials

    16.1  

Utilities

    15.7  

Industrials

    15.3  

Consumer Discretionary

    5.0  

Communication Services

    4.8  

Energy

    4.7  

Real Estate

    3.7  

Consumer Staples

    3.2  

Health Care

    1.3  

Information Technology

    0.5  

 

  (a)

Excludes money market funds.

 

TEN LARGEST GEOGRAPHIC ALLOCATION

 

 
Country/Geographic Region    
Percent of
Total Investments
 
(a) 

Australia

    16.5

United Kingdom

    14.5  

South Korea

    9.1  

Spain

    7.8  

Canada

    7.1  

Italy

    7.0  

Hong Kong

    6.7  

Japan

    6.6  

France

    4.8  

Finland

    3.2  

 

 

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


Fund Summary as of April 30, 2022    iShares® Select Dividend ETF

 

Investment Objective

The iShares Select Dividend ETF (the “Fund”) seeks to track the investment results of an index composed of relatively high dividend paying U.S. equities, as represented by the Dow Jones U.S. Select Dividend IndexTM (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

    7.63      9.98      11.86       7.63      60.92      206.77

Fund Market

    7.73        9.98        11.86         7.73        60.93        206.78  

Index

    8.01        10.42        12.29         8.01        64.14        218.72  

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 15 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        $ 1,061.40        $ 1.94             $ 1,000.00        $ 1,022.90        $ 1.91          0.38

 

  (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.

 

 

 

F U N D   S U M M A R Y

  11


Fund Summary as of April 30, 2022    (continued)    iShares® Select Dividend ETF

 

Portfolio Management Commentary

Stocks of companies with a history of paying relatively high dividends advanced for the reporting period. Many companies suspended or decreased dividend payouts as the coronavirus pandemic continued. However, as economic conditions improved, numerous firms resumed or increased dividends. A volatile stock market also drove investors to dividend-paying companies late in the reporting period, as these companies are considered by some to be relatively stable businesses.

Energy stocks were the leading source of strength for the Index’s return. Oil prices increased due to higher consumer demand, limited supply from oil-producing countries, and the Russian invasion of Ukraine. Exposure to Russia negatively affected several leading oil companies, although profits remained significant. During COVID-19 outbreaks, weak stock prices, low energy demand, and surging demand for technology and healthcare reduced investor interest in the energy sector; to entice investors, companies returned cash to shareholders. Major oil, gas, and consumable fuels companies announced doubling and even tripling their existing stock buyback programs after posting strong profits in the first quarter of 2022. U.S. oil and gas refining and marketing firms also contributed; oil refining capacity decreased after less-profitable refiners closed, leading to higher profits for the surviving companies.

The utilities sector also contributed to the Index’s performance. The Fed’s efforts to tame inflation by increasing interest rates and reducing asset purchases, together with geopolitical unrest, drove investors to the relatively steady revenues and dividends of the utilities sector. In both the electric utilities and the multi-utilities industries, demand for electricity and other utility services increased, as global economies began to emerge from pandemic-related shutdowns.

In contrast, the financials and communication services sectors detracted from the Index’s return.

The capital markets industry detracted as assets under management declined in early 2022, weighing on asset managers. Bank stocks also declined, due in part to lower trading revenue. In the communication services sector, concerns about subscriber growth and inflationary pressures weighed on diversified telecommunication services companies.

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector    
Percent of
Total Investments
 
(a) 

Utilities

    26.9

Financials

    20.2  

Consumer Staples

    10.8  

Materials

    8.4  

Energy

    8.1  

Communication Services

    6.0  

Information Technology

    5.5  

Consumer Discretionary

    5.3  

Industrials

    4.5  

Health Care

    4.3  

 

  (a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

Security    

Percent of

Total Investments


(a) 

Altria Group Inc.

    2.7

Valero Energy Corp.

    2.1  

International Business Machines Corp.

    1.9  

ONEOK Inc.

    1.9  

Philip Morris International Inc.

    1.8  

LyondellBasell Industries NV, Class A

    1.7  

Gilead Sciences Inc.

    1.7  

International Paper Co.

    1.6  

Edison International

    1.6  

Exxon Mobil Corp.

    1.6  

 

 

12  

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Fund Summary as of April 30, 2022    iShares® U.S. Dividend and Buyback ETF

 

Investment Objective

The iShares U.S. Dividend and Buyback ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. stocks with a history of dividend payments and/or share buybacks, as represented by the Morningstar® US Dividend and Buyback IndexSM (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      Since
Inception
           1 Year      Since
Inception
 

Fund NAV

    3.71      12.95       3.71      72.52

Fund Market

    3.69        12.94         3.69        72.47  

Index

    3.98        13.24               3.98        74.59  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

 

LOGO

 

 

The inception date of the Fund was 11/7/17. The first day of secondary market trading was 11/9/17.

 

 

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 15 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        $ 955.00        $ 1.21             $ 1,000.00        $ 1,023.60        $ 1.25        0.25

 

  (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.

 

 

 

F U N D   S U M M A R Y

  13


Fund Summary as of April 30, 2022    (continued)    iShares® U.S. Dividend and Buyback ETF

 

Portfolio Management Commentary

Stocks with histories of paying dividends or making buybacks advanced for the reporting period as continued economic recovery drove higher cash flows, which enabled companies to issue dividends and repurchase stocks. Companies generally demonstrated a strong preference for stock buybacks over dividends as the companies in the S&P 500 bought back U.S. $881 billion of their stock while paying out U.S. $511 billion in dividends in 2021. Stock buybacks set an annual record in 2021 and continued at a rapid pace in 2022, while companies increased their dividend payouts.

Energy stocks were the largest contributors to the Index’s return, led by oil, gas, and consumable fuels companies. Climbing prices for both oil and natural gas supported gains and share buybacks for integrated oil and gas companies. The war in Ukraine led to sanctions and eventual bans on Russian oil, exacerbating shortages that, coupled with increased demand from reopening economies, drove prices even higher. Oil and gas companies announced increased buybacks as cost cutting also supported both free cash flow and expanded investment in renewable energy.

The healthcare sector also contributed to the Index’s return as pharmaceuticals companies continued to benefit from broad vaccine distribution amid more contagious COVID-19 variants and breakthrough cases. Governments authorized vaccine boosters in countries spanning the Americas, Europe, and the Middle East, which bolstered pharmaceuticals firms’ profits. Manufacturers were able to set prices as the market for COVID-19 vaccine boosters evolved to resemble the flu vaccine market, but the government’s role as sole purchaser altered that power dynamic slightly.

On the downside, the communication services sector detracted from the Index’s return, as structural changes like increased competition among connectivity providers and cord-cutting challenged interactive media and services companies. Social media companies also detracted from performance after reporting significantly lower earnings. Cable and satellite companies also declined, reporting slowing subscriber growth amid lower consumer spending and competition from telephone companies.

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector    
Percent of
Total Investments
 
(a) 

Information Technology

    23.4

Financials

    19.0  

Health Care

    12.9  

Communication Services

    10.2  

Consumer Staples

    8.7  

Industrials

    7.4  

Consumer Discretionary

    6.9  

Energy

    5.0  

Materials

    2.9  

Utilities

    2.2  

Real Estate

    1.4  

 

  (a)

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

Security    

Percent of

Total Investments


(a) 

Apple Inc.

    4.9

Microsoft Corp.

    4.2  

Meta Platforms Inc, Class A

    2.6  

JPMorgan Chase & Co.

    2.1  

Berkshire Hathaway Inc., Class B

    2.1  

Procter & Gamble Co. (The)

    2.0  

Bank of America Corp.

    1.7  

Alphabet Inc., Class A

    1.7  

Alphabet Inc., Class C

    1.6  

Exxon Mobil Corp.

    1.6  

 

 

14  

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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.

 

 

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

  15


Schedule of Investments

April 30, 2022

  

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 2.6%        

BWX Technologies Inc.

    101,260     $ 5,257,419  

Curtiss-Wright Corp.

    12,809       1,830,534  

General Dynamics Corp.

    321,226       75,979,586  

HEICO Corp.

    3,512       496,000  

HEICO Corp., Class A

    8,336       972,311  

Huntington Ingalls Industries Inc.

    62,903       13,381,984  

L3Harris Technologies Inc.

    215,947       50,155,850  

Lockheed Martin Corp.

    423,029       182,799,292  

Northrop Grumman Corp.

    143,421       63,019,187  

Raytheon Technologies Corp.

    2,140,106       203,117,461  
   

 

 

 
      597,009,624  
Air Freight & Logistics — 1.3%            

CH Robinson Worldwide Inc.

    195,028       20,702,222  

Expeditors International of Washington Inc.

    135,006       13,375,044  

Forward Air Corp.

    15,542       1,507,108  

United Parcel Service Inc., Class B

    1,480,465       266,454,091  
   

 

 

 
      302,038,465  
Auto Components — 0.1%            

Gentex Corp.

    274,874       8,067,552  

LCI Industries

    52,524       5,111,636  
   

 

 

 
      13,179,188  
Automobiles — 0.0%            

Thor Industries Inc.

    75,695       5,794,452  
   

 

 

 
Banks — 9.0%            

Associated Banc-Corp.

    369,321       7,367,954  

Atlantic Union Bankshares Corp.

    153,863       5,197,492  

BancFirst Corp.

    26,230       2,144,303  

Bank of America Corp.

    10,178,765       363,178,335  

Bank of Hawaii Corp.

    97,738       7,265,843  

Bank OZK

    236,060       9,069,425  

BOK Financial Corp.

    45,669       3,787,330  

Cadence Bank

    99,460       2,490,478  

Cathay General Bancorp.

    165,697       6,642,793  

Citigroup Inc.

    4,995,809         240,847,952  

Comerica Inc.

    278,747       22,829,379  

Commerce Bancshares Inc.

    115,841       7,920,049  

Community Bank System Inc.

    53,253       3,429,493  

Cullen/Frost Bankers Inc.

    86,462       11,438,058  

CVB Financial Corp.

    267,710       6,162,684  

Fifth Third Bancorp.

    1,269,878       47,658,521  

First Financial Bankshares Inc.

    118,017       4,718,320  

First Horizon Corp.

    963,541       21,564,048  

First Merchants Corp.

    106,329       4,167,034  

First Republic Bank/CA

    67,121       10,015,796  

Fulton Financial Corp.

    372,597       5,652,296  

Glacier Bancorp. Inc.

    185,480       8,487,565  

Hilltop Holdings Inc.

    88,966       2,267,743  

Home BancShares Inc./AR

    315,318       6,817,175  

Independent Bank Corp.

    35,594       2,746,433  

Independent Bank Group Inc.

    52,664       3,570,619  

JPMorgan Chase & Co.

    4,806,115       573,657,886  

KeyCorp

    2,158,179       41,674,436  

M&T Bank Corp.

    247,223       41,197,241  

PNC Financial Services Group Inc. (The)

    781,478       129,803,496  

Popular Inc.

    120,328       9,384,381  

Prosperity Bancshares Inc.

    187,499       12,258,685  

Regions Financial Corp.

    2,001,876       41,478,871  
Security   Shares     Value  
Banks (continued)            

Sandy Spring Bancorp. Inc.

    99,908     $ 3,923,387  

ServisFirst Bancshares Inc.

    35,528       2,853,609  

Simmons First National Corp., Class A

    177,423       4,235,087  

South State Corp.

    112,812       8,736,161  

Synovus Financial Corp.

    280,701       11,660,320  

Towne Bank/Portsmouth VA

    124,277       3,426,317  

Truist Financial Corp.

    3,024,185       146,219,345  

U.S. Bancorp.

    3,145,132       152,727,610  

UMB Financial Corp.

    47,032       4,241,346  

United Community Banks Inc./GA

    94,831       2,858,206  

Washington Federal Inc.

    131,527       4,002,367  

Webster Financial Corp.

    362,868       18,139,771  

Wintrust Financial Corp.

    59,862       5,227,150  

Zions Bancorp. NA

    255,030       14,411,745  
   

 

 

 
        2,049,554,535  
Beverages — 4.4%            

Brown-Forman Corp., Class A

    48,177       3,007,208  

Brown-Forman Corp., Class B, NVS

    148,663       10,025,833  

Coca-Cola Co. (The)

    7,648,788       494,188,193  

Constellation Brands Inc., Class A

    161,075       39,638,947  

PepsiCo Inc.

    2,608,240       447,860,890  
   

 

 

 
      994,721,071  
Biotechnology — 1.3%            

Amgen Inc.

    1,303,979       304,074,863  
   

 

 

 
Building Products — 0.5%            

A O Smith Corp.

    152,670       8,920,508  

AAON Inc.

    19,749       962,566  

Advanced Drainage Systems Inc.

    15,432       1,581,163  

Allegion PLC

    78,183       8,931,626  

Carlisle Companies Inc.

    34,854       9,039,733  

Fortune Brands Home & Security Inc.

    123,992       8,834,430  

Lennox International Inc.

    32,926       7,019,494  

Masco Corp.

    350,039       18,443,555  

Owens Corning

    109,764       9,980,840  

Simpson Manufacturing Co. Inc.

    24,485       2,538,360  

Trane Technologies PLC

    255,628       35,759,801  

UFP Industries Inc.

    39,626       3,065,864  
   

 

 

 
      115,077,940  
Capital Markets — 5.1%            

Ameriprise Financial Inc.

    127,772       33,922,188  

Bank of New York Mellon Corp. (The)

    1,370,039       57,623,840  

BlackRock Inc.(a)

    234,958       146,773,563  

CME Group Inc.

    388,640       85,244,298  

Cohen & Steers Inc.

    41,819       3,248,918  

Evercore Inc., Class A

    64,845       6,857,359  

FactSet Research Systems Inc.

    20,903       8,434,151  

Franklin Resources Inc.

    787,534       19,365,461  

Goldman Sachs Group Inc. (The)

    562,179       171,740,063  

Hamilton Lane Inc., Class A

    45,970       3,152,623  

Houlihan Lokey Inc.

    64,094       5,338,389  

Intercontinental Exchange Inc.

    399,884       46,310,566  

Jefferies Financial Group Inc.

    522,053       16,058,350  

MarketAxess Holdings Inc.

    21,510       5,670,251  

Moody’s Corp.

    97,309       30,796,352  

Morgan Stanley

    3,175,613       255,922,652  

MSCI Inc.

    48,816       20,563,740  

Nasdaq Inc.

    104,830       16,497,097  

Northern Trust Corp.

    373,051       38,442,906  

 

16  

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Schedule of Investments  (continued)

April 30, 2022

  

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Capital Markets (continued)            

Raymond James Financial Inc.

    181,086     $ 17,648,642  

S&P Global Inc.

    131,383       49,465,700  

SEI Investments Co.

    104,745       5,836,391  

State Street Corp.

    690,424       46,237,695  

Stifel Financial Corp.

    135,236       8,364,347  

T Rowe Price Group Inc.

    483,590       59,500,914  
   

 

 

 
        1,159,016,456  
Chemicals — 2.5%            

Air Products and Chemicals Inc.

    404,353       94,646,907  

Albemarle Corp.

    67,674       13,049,577  

Ashland Global Holdings Inc.

    53,239       5,588,498  

Avient Corp.

    122,329       6,023,480  

Balchem Corp.

    11,066       1,363,331  

Cabot Corp.

    81,812       5,387,320  

Celanese Corp.

    147,851       21,725,226  

Eastman Chemical Co.

    260,401       26,735,371  

Ecolab Inc.

    212,260       35,944,108  

HB Fuller Co.

    38,918       2,595,831  

Innospec Inc.

    21,809       2,078,616  

International Flavors & Fragrances Inc.

    458,947       55,670,271  

Linde PLC

    512,568       159,900,713  

NewMarket Corp.

    12,302       3,993,352  

PPG Industries Inc.

    316,164       40,465,830  

Quaker Chemical Corp.

    8,763       1,425,828  

RPM International Inc.

    181,131       15,015,760  

Scotts Miracle-Gro Co. (The)

    62,291       6,473,904  

Sensient Technologies Corp.

    61,537       5,206,030  

Sherwin-Williams Co. (The)

    164,889       45,337,880  

Stepan Co.

    20,339       2,076,815  

Valvoline Inc.

    208,349       6,298,390  

Westlake Corp.

    24,104       3,050,361  
   

 

 

 
      560,053,399  
Commercial Services & Supplies — 0.6%            

ABM Industries Inc.

    77,707       3,750,917  

Brady Corp., Class A, NVS

    68,855       3,081,261  

Cintas Corp.

    61,812       24,555,435  

MSA Safety Inc.

    32,713       3,948,132  

Republic Services Inc.

    212,011       28,466,717  

Tetra Tech Inc.

    18,952       2,639,635  

Waste Management Inc.

    406,838       66,900,441  
   

 

 

 
      133,342,538  
Communications Equipment — 1.8%            

Cisco Systems Inc.

    7,707,829       377,529,464  

Motorola Solutions Inc.

    166,759       35,634,731  
   

 

 

 
      413,164,195  
Construction & Engineering — 0.1%            

Comfort Systems USA Inc.

    14,631       1,235,149  

MDU Resources Group Inc.

    472,836       12,180,255  
   

 

 

 
      13,415,404  
Construction Materials — 0.1%            

Martin Marietta Materials Inc.

    28,197       9,987,941  

Vulcan Materials Co.

    83,138       14,323,846  
   

 

 

 
      24,311,787  
Consumer Finance — 0.8%            

Ally Financial Inc.

    673,786       26,924,489  

American Express Co.

    442,388       77,289,608  

Discover Financial Services

    379,792       42,711,408  

FirstCash Holdings Inc.

    54,109       4,316,816  
Security   Shares     Value  
Consumer Finance (continued)            

Nelnet Inc., Class A

    18,556     $ 1,522,891  

Synchrony Financial

    923,966       34,011,188  
   

 

 

 
      186,776,400  
Containers & Packaging — 0.3%            

AptarGroup Inc.

    60,368       6,932,058  

Avery Dennison Corp.

    93,971       16,971,163  

Ball Corp.

    206,740       16,779,018  

Silgan Holdings Inc.

    76,889       3,411,565  

Sonoco Products Co.

    222,142       13,752,811  
   

 

 

 
      57,846,615  
Distributors — 0.2%            

Genuine Parts Co.

    264,547       34,404,337  

Pool Corp.

    19,413       7,866,536  
   

 

 

 
      42,270,873  
Diversified Consumer Services — 0.1%            

Graham Holdings Co., Class B

    3,140       1,860,042  

Service Corp. International

    171,876       11,276,784  
   

 

 

 
      13,136,826  
Electric Utilities — 2.4%            

Alliant Energy Corp.

    496,161       29,179,229  

American Electric Power Co. Inc.

    1,142,626       113,245,663  

Evergy Inc.

    573,906       38,939,522  

Eversource Energy

    678,426       59,294,432  

IDACORP Inc.

    96,391       10,138,405  

MGE Energy Inc.

    51,578       4,016,379  

NextEra Energy Inc.

    2,867,645       203,660,148  

Otter Tail Corp.

    76,958       4,460,486  

PNM Resources Inc.

    179,815       8,390,168  

Portland General Electric Co.

    196,189       9,285,625  

Xcel Energy Inc.

    976,412       71,531,943  
   

 

 

 
      552,142,000  
Electrical Equipment — 1.0%            

Eaton Corp. PLC

    560,172       81,236,143  

Emerson Electric Co.

    899,469       81,114,114  

Hubbell Inc.

    87,343       17,063,329  

nVent Electric PLC

    235,041       7,939,685  

Regal Rexnord Corp.

    39,528       5,029,543  

Rockwell Automation Inc.

    132,842       33,565,188  
   

 

 

 
        225,948,002  
Electronic Equipment, Instruments & Components — 0.7%  

Amphenol Corp., Class A

    442,419       31,632,959  

Avnet Inc.

    165,503       7,225,861  

Badger Meter Inc.

    17,863       1,441,365  

CDW Corp./DE

    109,894       17,932,503  

Cognex Corp.

    48,410       3,273,968  

Corning Inc.

    1,519,784       53,481,199  

Littelfuse Inc.

    14,796       3,391,983  

TD SYNNEX Corp.

    32,340       3,236,911  

TE Connectivity Ltd.

    344,710       43,012,914  
   

 

 

 
      164,629,663  
Entertainment — 0.1%            

Activision Blizzard Inc.

    313,510       23,701,356  
   

 

 

 
Food & Staples Retailing — 2.0%            

Casey’s General Stores Inc.

    19,385       3,902,201  

Costco Wholesale Corp.

    182,770       97,182,464  

Kroger Co. (The)

    710,924       38,361,459  

Sysco Corp.

    833,164       71,218,859  

 

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

  17


Schedule of Investments  (continued)

April 30, 2022

  

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Food & Staples Retailing (continued)        

Walmart Inc.

    1,549,082     $   236,994,055  
   

 

 

 
      447,659,038  
Food Products — 2.0%            

Archer-Daniels-Midland Co.

    754,622       67,583,946  

Flowers Foods Inc.

    456,050       12,094,446  

Hershey Co. (The)

    177,151       39,995,381  

Hormel Foods Corp.

    406,991       21,322,258  

Ingredion Inc.

    138,426       11,781,437  

J&J Snack Foods Corp.

    16,851       2,522,595  

JM Smucker Co. (The)

    229,860       31,474,730  

Kellogg Co.

    660,533       45,246,511  

Lamb Weston Holdings Inc.

    186,017       12,295,724  

Lancaster Colony Corp.

    28,462       4,416,733  

McCormick & Co. Inc./MD, NVS

    259,963       26,144,479  

Mondelez International Inc., Class A

    2,200,613       141,895,526  

Tyson Foods Inc., Class A

    414,370       38,602,709  
   

 

 

 
      455,376,475  
Gas Utilities — 0.4%            

Atmos Energy Corp.

    222,371       25,216,872  

National Fuel Gas Co.

    173,761       12,185,859  

New Jersey Resources Corp.

    219,895       9,490,668  

ONE Gas Inc.

    109,697       9,255,136  

Southwest Gas Holdings Inc.(b)

    140,754       12,401,835  

UGI Corp.

    575,361       19,734,882  
   

 

 

 
      88,285,252  
Health Care Equipment & Supplies — 2.9%            

Abbott Laboratories

    1,938,988       220,075,138  

Baxter International Inc.

    487,025       34,607,996  

Becton Dickinson and Co.

    260,184       64,314,883  

DENTSPLY SIRONA Inc.

    129,168       5,165,428  

Embecta Corp.(b)

    52,054       1,584,003  

Medtronic PLC

    2,260,832       235,940,428  

ResMed Inc.

    69,294       13,856,721  

STERIS PLC

    52,158       11,686,000  

Stryker Corp.

    257,791       62,194,657  
   

 

 

 
      649,425,254  
Health Care Providers & Services — 2.5%            

AmerisourceBergen Corp.

    130,796       19,788,127  

Anthem Inc.

    162,513       81,570,150  

Chemed Corp.

    3,314       1,628,466  

Encompass Health Corp.

    111,849       7,698,567  

Ensign Group Inc. (The)

    8,600       690,838  

Humana Inc.

    57,957       25,765,364  

McKesson Corp.

    71,857       22,247,646  

Quest Diagnostics Inc.

    155,350       20,792,044  

UnitedHealth Group Inc.

    776,781       395,031,977  
   

 

 

 
      575,213,179  
Hotels, Restaurants & Leisure — 2.3%            

Domino’s Pizza Inc.

    23,949       8,094,762  

McDonald’s Corp.

    1,280,218       318,979,117  

Starbucks Corp.

    1,823,098       136,076,035  

Texas Roadhouse Inc.

    98,691       8,125,230  

Wingstop Inc.

    10,531       966,324  

Yum! Brands Inc.

    396,970       46,449,460  
   

 

 

 
      518,690,928  
Household Durables — 0.2%            

DR Horton Inc.

    245,809       17,105,848  
Security   Shares     Value  
Household Durables (continued)        

Whirlpool Corp.

    150,058     $ 27,238,528  
   

 

 

 
      44,344,376  
Household Products — 3.9%            

Church & Dwight Co. Inc.

    182,815       17,835,431  

Colgate-Palmolive Co.

    1,384,651       106,687,360  

Energizer Holdings Inc.

    171,415       5,192,160  

Kimberly-Clark Corp.

    858,550       119,192,497  

Procter & Gamble Co. (The)

    3,907,927       627,417,680  

WD-40 Co.

    14,791       2,721,248  
   

 

 

 
      879,046,376  
Independent Power and Renewable Electricity Producers — 0.1%  

AES Corp. (The)

    1,329,067       27,139,548  
   

 

 

 
Industrial Conglomerates — 1.9%            

3M Co.

    1,617,713       233,306,569  

Honeywell International Inc.

    1,005,120       194,500,771  
   

 

 

 
      427,807,340  
Insurance — 3.8%            

Aflac Inc.

    1,115,445       63,892,690  

Allstate Corp. (The)

    550,619       69,675,328  

American Equity Investment Life Holding Co.

    54,703       2,063,397  

American Financial Group Inc./OH

    75,637       10,474,212  

Aon PLC, Class A

    107,243       30,884,912  

Arthur J Gallagher & Co.

    176,043       29,661,485  

Assurant Inc.

    64,437       11,719,802  

Assured Guaranty Ltd.

    75,780       4,179,267  

Axis Capital Holdings Ltd.

    178,269       10,220,162  

Brown & Brown Inc.

    106,470       6,599,011  

Chubb Ltd.

    467,111       96,435,066  

Cincinnati Financial Corp.

    214,569       26,319,034  

CNO Financial Group Inc.

    196,281       4,738,223  

Erie Indemnity Co., Class A, NVS

    45,864       7,351,082  

Everest Re Group Ltd.

    61,934       17,013,889  

Fidelity National Financial Inc.

    748,648       29,811,163  

First American Financial Corp.

    237,727       13,861,861  

Globe Life Inc.

    53,736       5,270,427  

Hanover Insurance Group Inc. (The)

    53,945       7,920,205  

Hartford Financial Services Group Inc. (The)

    535,645       37,457,655  

Kinsale Capital Group Inc.

    4,024       892,081  

Lincoln National Corp.

    338,603       20,366,970  

Marsh & McLennan Companies Inc.

    490,474       79,309,646  

MetLife Inc.

    1,472,115       96,688,513  

Old Republic International Corp.

    685,114       15,079,359  

Primerica Inc.

    48,067       6,227,560  

Principal Financial Group Inc.

    657,505       44,802,391  

Reinsurance Group of America Inc.

    136,581       14,657,873  

RenaissanceRe Holdings Ltd.

    33,420       4,796,438  

RLI Corp.

    27,113       3,112,030  

Selective Insurance Group Inc.

    58,798       4,842,603  

Travelers Companies Inc. (The)

    349,888       59,851,841  

W R Berkley Corp.

    84,600       5,625,054  

Willis Towers Watson PLC

    122,237       26,263,842  
      868,065,072  
   

 

 

 
IT Services — 3.2%            

Accenture PLC, Class A

    546,948       164,281,301  

Automatic Data Processing Inc.

    577,287       125,952,478  

Broadridge Financial Solutions Inc.

    140,646       20,271,308  

Fidelity National Information Services Inc.

    711,992       70,594,007  

Genpact Ltd.

    123,987       4,992,956  

 

18  

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


Schedule of Investments  (continued)

April 30, 2022

  

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
IT Services (continued)            

Jack Henry & Associates Inc.

    53,297     $ 10,104,045  

Mastercard Inc., Class A

    357,950         130,071,871  

SS&C Technologies Holdings Inc.

    163,216       10,553,547  

TTEC Holdings Inc.

    14,691       1,084,343  

Visa Inc., Class A

    869,580       185,333,585  
   

 

 

 
      723,239,441  
Leisure Products — 0.1%            

Acushnet Holdings Corp.

    36,315       1,479,473  

Brunswick Corp./DE

    83,648       6,324,625  

Polaris Inc.

    89,736       8,519,536  
   

 

 

 
      16,323,634  
Life Sciences Tools & Services — 0.2%            

Agilent Technologies Inc.

    132,259       15,774,531  

Danaher Corp.

    139,775       35,101,696  

West Pharmaceutical Services Inc.

    9,895       3,117,518  
   

 

 

 
      53,993,745  
Machinery — 2.6%            

AGCO Corp.

    26,588       3,387,311  

Barnes Group Inc.

    48,910       1,642,398  

Caterpillar Inc.

    790,584       166,449,555  

Cummins Inc.

    288,209       54,526,261  

Donaldson Co. Inc.

    146,841       7,201,083  

Dover Corp.

    131,992       17,594,534  

Franklin Electric Co. Inc.

    25,864       1,808,928  

Graco Inc.

    141,937       8,802,933  

Hillenbrand Inc.

    92,338       3,769,237  

IDEX Corp.

    59,365       11,268,664  

Illinois Tool Works Inc.

    462,437       91,150,957  

ITT Inc.

    65,958       4,631,571  

Kadant Inc.

    3,366       622,710  

Lincoln Electric Holdings Inc.

    72,140       9,719,422  

Mueller Water Products Inc., Class A

    197,334       2,373,928  

Nordson Corp.

    34,381       7,415,638  

Oshkosh Corp.

    65,514       6,056,114  

Otis Worldwide Corp.

    375,345       27,340,130  

PACCAR Inc.

    374,664       31,115,845  

Parker-Hannifin Corp.

    131,736       35,676,743  

Pentair PLC

    173,367       8,798,375  

Snap-on Inc.

    101,671       21,604,071  

Stanley Black & Decker Inc.

    233,815       28,092,872  

Terex Corp.

    61,587       2,093,958  

Timken Co. (The)

    90,201       5,199,186  

Toro Co. (The)

    104,905       8,406,038  

Trinity Industries Inc.

    164,298       4,557,627  

Watts Water Technologies Inc., Class A

    13,848       1,765,066  

Xylem Inc./NY

    175,047       14,091,283  
   

 

 

 
      587,162,438  
Marine — 0.0%            

Matson Inc.

    32,783       2,819,994  
   

 

 

 
Media — 1.4%            

Cable One Inc.

    2,513       2,930,660  

Comcast Corp., Class A

    6,826,453       271,419,771  

Interpublic Group of Companies Inc. (The)

    936,472       30,547,717  

John Wiley & Sons Inc., Class A

    83,475       4,248,043  

Nexstar Media Group Inc., Class A

    55,354       8,769,181  

Sirius XM Holdings Inc.

    899,643       5,397,858  
   

 

 

 
      323,313,230  
Security   Shares     Value  
Metals & Mining — 0.4%            

Nucor Corp.

    302,883     $ 46,880,231  

Reliance Steel & Aluminum Co.

    63,106       12,510,764  

Royal Gold Inc.

    48,329       6,305,968  

Steel Dynamics Inc.

    188,664       16,177,938  

Worthington Industries Inc.

    43,230       2,056,451  
   

 

 

 
      83,931,352  
Multi-Utilities — 1.8%            

Ameren Corp.

    452,375       42,025,637  

Black Hills Corp.

    149,637       10,959,414  

CMS Energy Corp.

    565,983       38,877,372  

DTE Energy Co.

    379,651       49,749,467  

NiSource Inc.

    862,083       25,103,857  

Public Service Enterprise Group Inc.

    1,083,922       75,506,007  

Sempra Energy

    637,532       102,872,164  

WEC Energy Group Inc.

    685,724       68,606,686  
   

 

 

 
      413,700,604  
Multiline Retail — 0.7%            

Dillard’s Inc., Class A

    880       267,353  

Dollar General Corp.

    131,101       31,140,420  

Target Corp.

    561,803       128,456,256  
   

 

 

 
      159,864,029  
Oil, Gas & Consumable Fuels — 0.9%            

ConocoPhillips

    1,741,817       166,378,360  

Coterra Energy Inc.

    1,106,083       31,844,129  
   

 

 

 
      198,222,489  
Personal Products — 0.2%            

Estee Lauder Companies Inc. (The), Class A

    137,784       36,383,243  

Medifast Inc.

    25,394       4,529,274  
   

 

 

 
      40,912,517  
Pharmaceuticals — 11.0%            

Bristol-Myers Squibb Co.

    4,859,190       365,751,231  

Eli Lilly & Co.

    817,821       238,910,049  

Johnson & Johnson

    3,757,767       678,126,633  

Merck & Co. Inc.

    6,188,387       548,848,043  

Perrigo Co. PLC

    261,325       8,963,447  

Pfizer Inc.

    12,720,308       624,185,514  

Zoetis Inc.

    223,592       39,631,682  
   

 

 

 
      2,504,416,599  
Professional Services — 0.2%            

Booz Allen Hamilton Holding Corp.

    190,979       15,589,616  

Exponent Inc.

    29,860       2,860,886  

Insperity Inc.

    51,154       5,424,882  

ManpowerGroup Inc.

    104,754       9,448,811  

Robert Half International Inc.

    118,192       11,619,455  
   

 

 

 
      44,943,650  
Road & Rail — 1.6%            

CSX Corp.

    1,767,393       60,692,276  

JB Hunt Transport Services Inc.

    46,658       7,971,519  

Landstar System Inc.

    16,642       2,577,846  

Norfolk Southern Corp.

    315,438       81,345,151  

Old Dominion Freight Line Inc.

    16,850       4,720,022  

Ryder System Inc.

    108,343       7,573,176  

Schneider National Inc., Class B

    23,374       552,328  

Union Pacific Corp.

    826,006       193,524,946  

Werner Enterprises Inc.

    48,702       1,930,060  
   

 

 

 
      360,887,324  
Semiconductors & Semiconductor Equipment — 6.8%  

Analog Devices Inc.

    734,768       113,433,484  

 

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

  19


Schedule of Investments  (continued)

April 30, 2022

  

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

Broadcom Inc.

    780,788     $ 432,861,059  

CMC Materials Inc.

    19,765       3,536,156  

Intel Corp.

    8,608,254       375,233,792  

KLA Corp.

    129,139       41,228,917  

Lam Research Corp.

    112,692       52,487,426  

Microchip Technology Inc.

    545,735       35,581,922  

Power Integrations Inc.

    33,727       2,698,160  

QUALCOMM Inc.

    1,338,936       187,035,970  

Skyworks Solutions Inc.

    190,927       21,632,029  

Texas Instruments Inc.

    1,700,923       289,582,141  

Universal Display Corp.

    14,752       1,884,273  
   

 

 

 
        1,557,195,329  
Software — 3.8%            

Dolby Laboratories Inc., Class A

    63,332       4,906,330  

Intuit Inc.

    114,323       47,872,756  

Microsoft Corp.

    2,399,034       665,779,916  

Oracle Corp.

    1,873,213       137,493,834  

Roper Technologies Inc.

    40,990       19,262,021  
   

 

 

 
      875,314,857  
Specialty Retail — 3.0%            

Best Buy Co. Inc.

    419,543       37,729,502  

Dick’s Sporting Goods Inc.

    72,214       6,962,874  

Group 1 Automotive Inc.

    9,246       1,610,099  

Home Depot Inc. (The)

    1,516,326       455,504,330  

Lithia Motors Inc.

    9,078       2,570,254  

Lowe’s Companies Inc.

    677,409       133,944,082  

Monro Inc.

    54,195       2,478,337  

Penske Automotive Group Inc.

    39,407       4,130,642  

Tractor Supply Co.

    129,023       25,991,683  

Williams-Sonoma Inc.

    100,027       13,051,523  
   

 

 

 
      683,973,326  
Technology Hardware, Storage & Peripherals — 3.4%  

Apple Inc.

    4,022,589       634,161,156  

Hewlett Packard Enterprise Co.

    2,641,869       40,711,201  

HP Inc.

    2,204,099       80,736,146  

NetApp Inc.

    383,558       28,095,624  
   

 

 

 
      783,704,127  
Textiles, Apparel & Luxury Goods — 0.7%            

Carter’s Inc.

    74,127       6,244,458  

Columbia Sportswear Co.

    28,822       2,368,016  

Nike Inc., Class B

    848,357       105,790,118  
Security   Shares     Value  
Textiles, Apparel & Luxury Goods (continued)  

VF Corp.

    840,159     $ 43,688,268  
   

 

 

 
      158,090,860  
Thrifts & Mortgage Finance — 0.0%            

WSFS Financial Corp.

    31,938       1,279,756  
   

 

 

 
Trading Companies & Distributors — 0.5%  

Air Lease Corp.

    152,918       6,159,537  

Applied Industrial Technologies Inc.

    34,469       3,608,560  

Fastenal Co.

    897,958       49,666,057  

GATX Corp.

    44,440       4,594,651  

MSC Industrial Direct Co. Inc., Class A

    123,130       10,202,552  

Watsco Inc.

    62,292       16,618,260  

WW Grainger Inc.

    39,733       19,867,692  
   

 

 

 
      110,717,309  
Water Utilities — 0.2%            

American States Water Co.

    45,412       3,572,108  

American Water Works Co. Inc.

    197,053       30,361,926  

California Water Service Group

    62,486       3,241,149  

Essential Utilities Inc.

    364,932       16,334,356  
   

 

 

 
      53,509,539  
   

 

 

 
Total Common Stocks — 99.7%
    (Cost: $19,516,151,708)
        22,669,774,639  
   

 

 

 
Short-Term Investments  
Money Market Funds — 0.2%            

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

    48,180,000       48,180,000  
   

 

 

 

Total Short-Term Investments — 0.2%
(Cost: $48,180,000)

 

    48,180,000  
   

 

 

 

Total Investments in Securities — 99.9%
(Cost: $19,564,331,708)

 

    22,717,954,639  

Other Assets, Less Liabilities — 0.1%

 

    24,843,369  
   

 

 

 

Net Assets — 100.0%

 

  $   22,742,798,008  
   

 

 

 

 

(a) 

Affiliate of the Fund.

(b) 

Non-income producing security.

(c) 

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: Treasury,
SL Agency Shares

  $ 56,230,000     $     $ (8,050,000 )(a)    $     $     $ 48,180,000       48,180,000     $ 25,091     $  

BlackRock Inc.

    130,088,454       79,273,316       (19,173,448     3,783,603       (47,198,362     146,773,563       234,958       2,950,579        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 3,783,603     $ (47,198,362   $ 194,953,563       $ 2,975,670     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

 

 

20  

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


Schedule of Investments  (continued)

April 30, 2022

  

iShares® Core Dividend Growth ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 
Long Contracts                             

S&P 500 E-Mini Index

     328          06/17/22        $67,691   $ (2,056,437
              

 

 

 

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)

   $ 2,056,437  
  

 

 

 

 

  (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

   $ 3,745,588  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (3,858,648
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 
Futures contracts:       

Average notional value of contracts — long

   $ 55,625,006    

 

 

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

   $ 22,669,774,639        $        $        $ 22,669,774,639  

Money Market Funds

     48,180,000                            48,180,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 22,717,954,639        $        $        $ 22,717,954,639  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $ (2,056,437      $                 —        $                 —        $ (2,056,437
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

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

  21


Schedule of Investments

April 30, 2022

  

iShares® Core High Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 1.4%

   

Lockheed Martin Corp.

    303,377     $ 131,095,269  
   

 

 

 
Air Freight & Logistics — 2.0%            

United Parcel Service Inc., Class B

    1,061,685       191,082,066  
   

 

 

 
Auto Components — 0.1%            

Autoliv Inc.

    132,040       9,728,707  
   

 

 

 
Banks — 7.0%            

JPMorgan Chase & Co.

    4,386,831       523,612,148  

M&T Bank Corp.

    176,733       29,450,787  

Prosperity Bancshares Inc.

    132,152       8,640,098  

U.S. Bancorp.

    2,255,515       109,527,809  
   

 

 

 
      671,230,842  
Beverages — 7.0%            

Coca-Cola Co. (The)

    5,485,296       354,404,974  

PepsiCo Inc.

    1,870,501       321,183,727  
   

 

 

 
      675,588,701  
Biotechnology — 10.5%            

AbbVie Inc.

    4,187,874       615,114,933  

Amgen Inc.

    935,144       218,066,229  

Gilead Sciences Inc.

    2,990,040       177,428,974  
   

 

 

 
      1,010,610,136  
Capital Markets — 2.7%            

Artisan Partners Asset Management Inc., Class A

    372,641       11,976,682  

Blackstone Inc., NVS

    1,698,643       172,531,169  

Franklin Resources Inc.

    563,423       13,854,572  

Janus Henderson Group PLC

    403,715       12,305,233  

Moelis & Co., Class A

    157,795       6,984,007  

T Rowe Price Group Inc.

    345,998       42,571,594  
   

 

 

 
      260,223,257  
Communications Equipment — 2.8%            

Cisco Systems Inc.

    5,527,683       270,745,913  
   

 

 

 
Containers & Packaging — 0.7%            

Amcor PLC

    3,282,326       38,928,386  

Packaging Corp. of America

    127,518       20,552,076  

Sonoco Products Co.

    158,492       9,812,240  
   

 

 

 
      69,292,702  
Distributors — 0.2%            

Genuine Parts Co.

    189,233       24,609,752  
   

 

 

 
Diversified Financial Services — 0.2%  

Apollo Global Management Inc.

    461,978       22,988,025  
   

 

 

 
Diversified Telecommunication Services — 4.8%  

Cogent Communications Holdings Inc.

    109,497       6,405,575  

Verizon Communications Inc.

    9,887,970       457,813,011  
   

 

 

 
      464,218,586  
Electric Utilities — 6.4%            

Alliant Energy Corp.

    355,069       20,881,608  

American Electric Power Co. Inc.

    819,025       81,173,568  

Duke Energy Corp.

    1,424,868       156,963,459  

Evergy Inc.

    410,205       27,832,409  

Exelon Corp.

    1,502,334       70,279,184  

FirstEnergy Corp.

    954,113       41,322,634  

IDACORP Inc.

    69,055       7,263,205  

PNM Resources Inc.

    129,682       6,050,962  

Southern Co. (The)

    2,064,230       151,493,840  
Security   Shares     Value  
Electric Utilities (continued)            

Xcel Energy Inc.

    699,157     $ 51,220,242  
   

 

 

 
      614,481,111  
Electronic Equipment, Instruments & Components — 0.1%  

National Instruments Corp.

    186,500       6,740,110  
   

 

 

 
Food Products — 0.7%            

General Mills Inc.

    954,637       67,521,475  
   

 

 

 
Gas Utilities — 0.1%            

National Fuel Gas Co.

    124,679       8,743,738  
   

 

 

 
Hotels, Restaurants & Leisure — 0.3%            

Darden Restaurants Inc.

    219,883       28,965,188  
   

 

 

 
Household Products — 6.4%            

Colgate-Palmolive Co.

    994,608       76,634,546  

Kimberly-Clark Corp.

    615,363       85,430,845  

Procter & Gamble Co. (The)

    2,802,530       449,946,192  

Reynolds Consumer Products Inc.

    84,239       2,492,632  
   

 

 

 
      614,504,215  
Industrial Conglomerates — 1.7%            

3M Co.

    1,160,126       167,313,372  
   

 

 

 
Insurance — 0.1%            

First American Financial Corp.

    167,874       9,788,733  

Mercury General Corp.

    62,487       3,151,219  
   

 

 

 
      12,939,952  
IT Services — 0.2%            

Western Union Co. (The)

    1,053,732       17,660,548  
   

 

 

 
Leisure Products — 0.2%            

Hasbro Inc.

    194,549       17,131,985  
   

 

 

 
Machinery — 0.6%            

Cummins Inc.

    207,018       39,165,735  

Snap-on Inc.

    72,538       15,413,600  
   

 

 

 
      54,579,335  
Multi-Utilities — 2.0%            

NiSource Inc.

    614,277       17,887,746  

Public Service Enterprise Group Inc.

    776,097       54,062,917  

Sempra Energy

    456,859       73,718,768  

WEC Energy Group Inc.

    491,111       49,135,656  
   

 

 

 
      194,805,087  
Oil, Gas & Consumable Fuels — 18.3%            

Chevron Corp.

    3,261,002       510,901,183  

Coterra Energy Inc.

    791,596       22,790,049  

DTE Midstream LLC(a)

    204,323       10,982,361  

Exxon Mobil Corp.

    8,913,569       759,881,757  

Kinder Morgan Inc.

    5,689,489       103,264,226  

ONEOK Inc.

    1,239,897       78,522,677  

Pioneer Natural Resources Co.

    737,836       171,524,735  

Williams Companies Inc. (The)

    3,036,182       104,110,681  
   

 

 

 
      1,761,977,669  
Personal Products — 0.0%            

Medifast Inc.

    18,026       3,215,117  
   

 

 

 
Pharmaceuticals — 12.9%            

Bristol-Myers Squibb Co.

    3,484,815       262,302,025  

Johnson & Johnson

    3,263,775       588,980,837  

Merck & Co. Inc.

    4,438,026       393,608,526  
   

 

 

 
      1,244,891,388  

 

22  

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


Schedule of Investments  (continued)

April 30, 2022

  

iShares® Core High Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Semiconductors & Semiconductor Equipment — 5.4%  

Broadcom Inc.

    559,920     $ 310,414,049  

Texas Instruments Inc.

    1,219,832       207,676,398  
   

 

 

 
      518,090,447  
Textiles, Apparel & Luxury Goods — 0.3%            

VF Corp.

    603,116       31,362,032  
   

 

 

 
Thrifts & Mortgage Finance — 0.1%            

Radian Group Inc.

    306,062       6,546,666  

TFS Financial Corp.

    161,123       2,415,234  
   

 

 

 
      8,961,900  
Tobacco — 4.3%            

Philip Morris International Inc.

    4,109,059       410,905,900  
   

 

 

 
Trading Companies & Distributors — 0.2%            

MSC Industrial Direct Co. Inc., Class A

    88,737       7,352,748  

Watsco Inc.

    44,348       11,831,159  
   

 

 

 
      19,183,907  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $8,947,221,988)

      9,605,388,432  
   

 

 

 
Security   Shares     Value  
Short-Term Investments  
Money Market Funds — 0.2%            

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

    14,010,000     $ 14,010,000  
   

 

 

 

Total Short-Term Investments — 0.2%
(Cost: $ 14,010,000)

 

    14,010,000  
   

 

 

 

Total Investments in Securities — 99.9%
(Cost: $ 8,961,231,988)

 

    9,619,398,432  

Other Assets, Less Liabilities — 0.1%

 

    11,503,239  
   

 

 

 

Net Assets — 100.0%

 

  $ 9,630,901,671  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

Affiliate of the Fund.

(c) 

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: Treasury,
SL Agency Shares

  $ 16,210,000     $     $ (2,200,000 )(a)    $     $     $ 14,010,000       14,010,000     $ 5,965      $  
       

 

 

   

 

 

   

 

 

     

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

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

 

 
Long Contracts                             

E-mini Consumer Staples Select Sector Index

     123          06/17/22        $ 9,589   $ 552,024  

E-Mini Dow Jones Industrial Average Index

     63          06/17/22        10,358     (165,960

E-mini Energy Select Sector Index

     57          06/17/22        4,469     (5,743
              

 

 

 
               $ 380,321  
              

 

 

 

 

 

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

  23


Schedule of Investments  (continued)

April 30, 2022

  

iShares® Core High Dividend ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

 

 
     Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 552,024  
  

 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 171,703  
  

 

 

 

 

  (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

   $ 3,995,240  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (203,797
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:        

Average notional value of contracts — long

   $ 18,894,983  

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

   $ 9,605,388,432        $        $        $ 9,605,388,432  

Money Market Funds

     14,010,000                            14,010,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 9,619,398,432        $        $        $ 9,619,398,432  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 552,024        $        $        $ 552,024  

Liabilities

                 

Futures Contracts

     (171,703                          (171,703
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 380,321        $                 —        $                 —        $ 380,321  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

See notes to financial statements.

 

 

24  

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


Schedule of Investments

April 30, 2022

  

iShares® International Select Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks            
Australia — 16.3%            

APA Group

    4,013,986     $ 32,252,859  

Fortescue Metals Group Ltd.

    11,343,362       171,433,015  

Harvey Norman Holdings Ltd.

    4,730,482       16,850,273  

JB Hi-Fi Ltd.

    1,609,672       59,616,374  

Magellan Financial Group Ltd.

    2,526,960       28,587,531  

Pendal Group Ltd.

    5,461,995       20,107,381  

Perpetual Ltd.

    800,710       18,408,104  

Rio Tinto PLC

    4,948,458       349,638,967  

Suncorp Group Ltd.

    4,382,462       35,186,746  

Super Retail Group Ltd.

    2,496,472       18,471,608  
   

 

 

 
      750,552,858  
Austria — 0.3%            

Oesterreichische Post AG

    478,626       15,418,269  
   

 

 

 
Belgium — 2.6%            

Ageas SA/NV

    1,757,230       84,086,215  

Proximus SADP

    1,968,609       34,407,949  
   

 

 

 
      118,494,164  
Brazil — 1.5%            

Yara International ASA

    1,379,714       70,155,984  
   

 

 

 
Canada — 7.0%            

Bank of Nova Scotia (The)

    1,105,714       70,018,942  

Canadian Utilities Ltd., Class A, NVS

    1,266,246       38,066,727  

Emera Inc.

    1,109,300       53,563,133  

Great-West Lifeco Inc.

    1,353,607       37,342,336  

IGM Financial Inc.

    1,181,582       37,443,820  

Labrador Iron Ore Royalty Corp.

    871,441       23,579,410  

Manulife Financial Corp.

    1,293,531       25,293,659  

Power Corp. of Canada

    1,285,055       37,811,917  
   

 

 

 
      323,119,944  
Denmark — 2.4%            

AP Moller - Maersk A/S, Class A

    38,941       110,227,892  
   

 

 

 
Egypt — 0.1%            

Centamin PLC

    2,714,686       3,111,351  
   

 

 

 
Finland — 3.2%            

Fortum Oyj

    1,850,422       30,764,835  

Sampo Oyj, Class A

    1,470,770       71,416,832  

UPM-Kymmene Oyj

    1,312,974       45,418,779  
   

 

 

 
      147,600,446  
France — 4.7%            

Bouygues SA

    1,549,224       53,267,349  

Nexity SA

    778,085       23,627,425  

Orange SA

    1,790,378       21,315,160  

Rubis SCA

    1,528,155       40,645,092  

TotalEnergies SE

    1,596,806       78,407,910  
   

 

 

 
      217,262,936  
Germany — 1.1%            

Freenet AG

    363,012       10,043,898  

Hapag-Lloyd AG(a)

    105,465       41,984,211  
   

 

 

 
      52,028,109  
Hong Kong — 6.6%            

BOC Hong Kong Holdings Ltd.

    5,808,000       21,024,147  

CK Infrastructure Holdings Ltd.

    6,172,000       41,496,863  

Henderson Land Development Co. Ltd.

    7,213,000       29,169,491  

Hysan Development Co. Ltd.

    8,528,000       25,159,067  
Security   Shares     Value  
Hong Kong (continued)            

Kerry Properties Ltd.

    8,027,500     $ 21,707,432  

New World Development Co. Ltd.

    8,728,750       33,385,640  

Orient Overseas International Ltd.

    2,516,500       69,440,524  

PCCW Ltd.

    11,940,000       6,764,758  

Swire Pacific Ltd., Class A

    5,975,000       34,033,053  

VTech Holdings Ltd.

    3,143,600       22,237,507  
   

 

 

 
      304,418,482  
Italy — 6.9%            

A2A SpA

    6,832,883       11,674,372  

Anima Holding SpA(a)

    4,546,227       22,152,569  

Azimut Holding SpA

    1,591,041       33,771,235  

Enel SpA

    8,371,469       54,438,764  

Eni SpA

    6,729,112       94,064,845  

Italgas SpA

    6,903,880       44,700,357  

Snam SpA

    7,193,690       39,454,519  

UnipolSai Assicurazioni SpA

    6,135,834       17,259,088  
   

 

 

 
      317,515,749  
Japan — 6.6%            

Haseko Corp.

    779,700       8,543,195  

Mitsui OSK Lines Ltd.

    4,638,300       108,587,736  

MS&AD Insurance Group Holdings Inc.

    721,800       21,486,010  

Nippon Yusen KK

    1,722,200       124,246,380  

Sojitz Corp.

    840,480       12,815,925  

Sumitomo Mitsui Financial Group Inc.

    894,500       27,026,365  
   

 

 

 
      302,705,611  
Netherlands — 2.8%            

Flow Traders(a)

    493,949       16,125,368  

NN Group NV

    1,710,994       83,807,196  

SBM Offshore NV

    1,970,865       28,560,082  
   

 

 

 
      128,492,646  
New Zealand — 1.3%            

Spark New Zealand Ltd.

    18,651,078       58,987,576  
   

 

 

 
Portugal — 0.8%            

EDP - Energias de Portugal SA

    8,041,299       37,477,773  
   

 

 

 
South Korea — 9.0%            

BNK Financial Group Inc.

    2,776,026       17,216,998  

DB Insurance Co. Ltd.

    802,746       42,871,823  

DGB Financial Group Inc.

    2,598,748       18,318,162  

Hana Financial Group Inc.

    2,518,773       93,513,747  

Industrial Bank of Korea

    2,757,929       24,470,779  

KB Financial Group Inc.

    1,986,676       92,428,276  

Samsung Securities Co. Ltd.

    978,319       30,554,719  

Shinhan Financial Group Co. Ltd.

    1,993,473       66,232,350  

Woori Financial Group Inc.

    2,381,981       27,596,251  
   

 

 

 
      413,203,105  
Spain — 7.7%            

ACS Actividades de Construccion y Servicios SA

    3,862,639       98,903,879  

Cia. de Distribucion Integral Logista Holdings SA

    1,112,864       20,505,000  

Enagas SA

    2,562,582       55,409,896  

Mapfre SA

    5,836,200       10,650,231  

Naturgy Energy Group SA

    2,787,702       83,860,526  

Red Electrica Corp. SA

    3,161,199       63,648,370  

Telefonica SA

    4,733,562       23,027,082  
   

 

 

 
      356,004,984  
Sweden — 1.3%            

Telia Co. AB

    14,436,089       59,918,632  
   

 

 

 

 

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

  25


Schedule of Investments  (continued)

April 30, 2022

  

iShares® International Select Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Switzerland — 2.3%            

Swiss Re AG

    259,687     $ 21,296,106  

Zurich Insurance Group AG

    191,931       87,380,333  
   

 

 

 
      108,676,439  
United Kingdom — 14.3%            

abrdn plc

    3,680,776       8,642,932  

Antofagasta PLC

    3,636,191       69,610,900  

Ashmore Group PLC

    3,670,629       10,147,277  

BP PLC

    2,444,954       11,803,733  

British American Tobacco PLC

    3,546,971       148,661,888  

CK Hutchison Holdings Ltd.

    5,916,500       41,521,564  

Direct Line Insurance Group PLC

    4,307,408       13,671,186  

GlaxoSmithKline PLC

    2,628,707       59,257,841  

IG Group Holdings PLC

    2,822,832       28,849,548  

Jupiter Fund Management PLC

    4,491,693       10,025,627  

Legal & General Group PLC

    3,409,901       10,628,986  

National Grid PLC

    2,153,769       31,998,484  

Persimmon PLC

    4,796,466       124,920,443  

Phoenix Group Holdings PLC

    3,800,413       28,785,856  

SSE PLC

    2,414,418       56,076,851  

Vodafone Group PLC

    3,082,659       4,667,019  
   

 

 

 
      659,270,135  
   

 

 

 

Total Common Stocks — 98.8%
(Cost: $4,512,520,864)

      4,554,643,085  
   

 

 

 

Security   Shares     Value  
Preferred Stocks  
Germany — 0.0%            

Schaeffler AG, Preference Shares, NVS

    241,825     $ 1,298,671  
   

 

 

 

Total Preferred Stocks — 0.0%
(Cost: $1,770,800)

      1,298,671  
   

 

 

 
Short-Term Investments  
Money Market Funds — 0.1%            

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

    2,240,000       2,240,000  
   

 

 

 

Total Short-Term Investments — 0.1%
(Cost: $2,240,000)

 

    2,240,000  
   

 

 

 

Total Investments in Securities — 98.9%
(Cost: $4,516,531,664)

 

    4,558,181,756  

Other Assets, Less Liabilities — 1.1%

 

    51,505,633  
   

 

 

 

Net Assets — 100.0%

 

  $ 4,609,687,389  
   

 

 

 

 

(a) 

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

(b) 

Affiliate of the Fund.

(c) 

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)

  $     $ 8,860 (b)     $     $ (8,860   $     $           $ 1,196,087 (c)    $  

BlackRock Cash Funds: Treasury,
SL Agency Shares

    2,930,000             (690,000 )(b)                   2,240,000       2,240,000       1,420        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (8,860   $     $ 2,240,000       $ 1,197,507     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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.

 

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

     100          06/16/22        $12,932   $ (206,347

Euro Stoxx 50 Index

     328          06/17/22        12,762     (447,508

 

 

26  

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


Schedule of Investments  (continued)

April 30, 2022

  

iShares® International Select Dividend ETF

 

Futures Contracts (continued)

Description    Number of
Contracts
       Expiration
Date
      

Notional
Amount

(000)

  Value/
Unrealized
Appreciation
(Depreciation)
 

FTSE 100 Index

     232          06/17/22        $21,663   $ (183,593
              

 

 

 
               $ (837,448
              

 

 

 

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)

   $ 837,448  
  

 

 

 

 

  (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

   $ 3,959,229  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (1,635,177
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:        

Average notional value of contracts — long

   $ 40,250,519  

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 inst